Brand Expansion Archives : Persona Design

Rebranding Strategy: The ABCs of Rebranding Google

August 18, 2015/0 Comments/in Brand Audit, Brand Auditing, Brand Audits, Brand Expansion, Brand Health Check, Brand Leadership, Brand Name Creation, Brand Name Origination, Brand Personality, Brand Profiling & Positioning, Brand Relaunch, Brand Relevance, Brand Reputation, Brand Revitalisation, Brand Strategy, Branding, Business, Rebrand, Rebranding, Sub-Branding, Sub-Brands /by Lorraine Carter

Google made us uncomfortable!

When the third most valuable brand in the world [Forbes, 2015] announces a surprise rebranding, people notice.

On a recent midsummer Silicon Valley afternoon, the Co-founder and CEO of Google morphed into the CEO of Alphabet before our eyes. What’s Alphabet, we wondered?

Larry Page opened his official blog post saying, “We’ve long believed that over time companies tend to get comfortable doing the same thing, just making incremental changes. But in the technology industry, where revolutionary ideas drive the next big growth areas, you need to be a bit uncomfortable to stay relevant.”

Image via https://abc.xyz

“Uncomfortably excited” is a state of mind that Googlers are well familiar with; they say it comes up frequently during internal meetings. When Larry Page addressed the graduating class of the University of Michigan in 2009, he counseled, “Always work hard on something uncomfortably exciting.”[1]

“We Do Search”

With the perspective of a few days and hundreds of pieces of content produced by Google observers, the picture came into focus. People realized that Google wasn’t disappearing (audible sigh of relief), but rather that Alphabet was born to give Google the space to be Google. The bottom line is that from a consumer perspective, it’s business as usual!

Google is a search engine and an advertising platform. And clearly, it’s a cash cow — which has everything to do with funding the next big breakthrough and nothing to do with Google’s (um, Alphabet’s) next passion project, whatever it may be.

As an obscure campus startup, Google’s mission was “to organize the world’s information and make it universally accessible and useful.” Two years on, Google AdWords launched with 350 customers.[2] Overwhelming success has been declared in the blink of an eye, in about one and a half decades.

The authors of “The Google Story” discussed the profound impact of the founders’ vision to make all web-based information searchable via PageRank algorithms, comparing it to the first mechanical printing press in 1440. They wrote, “Not since Gutenberg…has any new invention empowered individuals, and transformed access to information, as profoundly as Google.”[3]

“We do search,” was the core of Google’s philosophy as expressed in its original “Ten Things We Know to Be True”[4] document. However last winter, Larry Page said, “Google has ‘outgrown’ its 14-year-old mission statement.”[5]

So, on second thoughts, no one should have been surprised by Google’s big announcement. In October 2014, Page laid it out in an interview with the FT,[6] expressing his desire to step away from daily chores at the colossal search engine. “The world’s most powerful internet company is ready to trade the cash from its search engine monopoly for a slice of the next century’s technological bonanza,” is how the FT put it.

Spelling it Out

Alphabet is about brand innovation. When Larry Page titled his announcement “G is for Google,” the implication is that it leaves another 25 letters for Alphabet to dream big.

Several of the spaces on the virtual Scrabble board have already been filled in: Life Sciences, working on the glucose-sensing contact lens; Calico, focused on longevity; Nest for smart-home products; Fiber for super-connectivity and whatever words are played next, sometimes via acquisition.

Google X is the think tank for moonshots, artificial intelligence, robotics, longevity, health advancements, biotech, self-driving cars and smart glasses. Google Ventures re-invests.

It’s all about staying “uncomfortably excited” and attracting the best minds for collective ideation.

Brand Architecture : A House of Brands

Alphabet is now an umbrella for one of the largest brands we’ve known. From a brand architecture perspective, Google bucks the trend of the last decade which has seen large brands consolidate toward a single ‘brand house’ approach e.g. Unilever (2004), P&G (2011), Coca-Cola (2015). Google is doing the opposite by creating a ‘house of brands.’

The scale of Google’s size and scope demands a more efficient approach for managing multiple brands with different cultures, complex mergers and acquisitions, innovation, brand sub-cultures whilst satisfying Wall Street demands for accountability.

As an article published in the Harvard Business Review points out:

“…the financial returns of the search engine and advertising business could not be observed separately from the investments in all of the new businesses. The new structure ensures that there will be, at a minimum, independent accounting numbers produced for the Google business, and perhaps for the others as well.”

The Alphabet umbrella brand also reduces risk in terms of brand reputation management, with risk being ring-fenced around each individual brand and its own CEO within the ‘house of brands’. Alphabet will be much less vulnerable to major scandal or irregularity and it will also not be a consumer brand.

The point of a ‘house of brands’ structure is that the corporate brand becomes essentially invisible to the outside world, only relevant to senior employees and investors. How clever is Google?

What are the Branding Takeaways?

For smaller businesses, it’s more advantageous to manage a single brand or ‘brand house’ with one budget, one culture, one organisational structure, one employer, one leadership team and so on.

At first blush, the immediate branding Alphabet/Google learnings or takeaways from their initial announcement, for any size company or organisation, are as follows:

1) Continually evaluate your core business, product or service and re-evaluate ancillary revenue streams, products and services to remain properly focused. [Note: Apple’s Steve Jobs used to tell Larry Page that he was trying to do too much. Page told Jobs that Apple wasn’t doing enough.]

2) Secondly, re-visit your mission statement. It doesn’t belong in a box file in a drawer, but in a frame on the wall at reception and in the lunch room. Dust it off and discuss it, make it the heart of your business, a living breathing, authencitic expression of who you are and what you do and the true reason why you do what you do.

Image via http://www.gapingvoidart.com, Hugh MacLeod

3) Not every hiccup or even a crisis requires a rebrand, sometimes a brand health check is one of the most useful tools to protect your most valuable asset. Talk to us.

4) Does your existing brand name properly represent your business today and into the future or has it become something of a misnomer as your business has grown and evolved? Do you need some help re-evaluating your brand name relevance?

Larry Page explained the decision behind their new name.

“We liked the name Alphabet because it means a collection of letters that represent language, one of humanity’s most important innovations, and is the core of how we index with Google search! We also like that it means alpha-bet (Alpha is investment return above benchmark), which we strive for!”

Rebrands happen. For a number of reasons, they can be an exceptionally good move at the right time for the right reasons. We’re here to help.

• Brand Audit: Tips for Determining Your Brand’s Health – Can it be Improved?

• Rebranding: How to Make it Through a Rebrand and Emerge Stronger

• Brand Renaming: Name and Tagline Change Considerations

• Brand Audit: When the USA Took the Branding Bull by the Horns

• Creating New Brands: Top 10 Tips for Brand Success

• Brand Naming: Top Ten Methods for Brand Name Creation

• Rebranding Strategy: Why Your Rebrand Must Embrace Storytelling

• Brand Differentiation: 30 Ways to Differentiate Your Brand

• Brand Profiling: Top 6 Components to Creating a Strong Brand Personality

• CEO Brand Leadership: How Does Your Leadership Impact Your Brand?

Are you getting uncomfortably excited about your own business? Or just excited? Let us know what you think about these questions that pop into your mind as we ponder the changing Google landscape.

Something’s gone wrong. How do I determine if my entire brand is in trouble or if there are other solutions?

What are the signs that a true rebranding strategy is in order and where do I begin?

How can I know whether a rebrand will help or hurt my business and its reputation?

What’s actually involved in a rebranding beyond a new name?

How can I budget properly for all that a rebranding entails?

Are there potentially moments in the life of a business when a brand health check or rebrand is the right strategy, even when the company is performing well, like Google?

[1] Larry Page’s University of Michigan commencement address

[2] http://www.google.com/about/company/history

[3] Vise, David, and Malseed, Mark. The Google Story, Delta Publ. (2006)

[4] http://www.google.com/about/company/philosophy

[5] Samuel Gibbs (November 3, 2014) The Guardian.

[6] Richard Waters (October 2014) Financial Times.

Limited Editions Packaging : Why They Work

June 11, 2013/0 Comments/in Brand Collaboration, Brand Expansion, Brand Experience, Brand Strategy, Integrated Marketing, Packaging, Packaging Design /by Lorraine Carter

Most of us at some point in our lives have probably been triggered to make an impulse purchase (or at least considered purchasing) one of our favourite brands solely because of the packaging.

There’s a high probability too that the particular brand packaging in question was of a ‘limited edition’ variety. Brands tend to investment considerable effort into limited edition products and, as a result, the packaging design typically has even greater impact on its target audience.

Exclusivity Rewards Loyal Customers

However limited edition packaging isn’t always appreciated, as MAC executives discovered when they launched their Wonder Woman range in spring 2011. This was in collaboration with DC Comics who owned the rights to the cartoon character. The MAC range included lipsticks, eye shadow, nail polish and blusher ranging from €6. to €35.

Image via Flickr and Bruno Boutot

The look was bright, dynamic (like the character herself) and, some said, ‘tacky.’ Many of the brand’s followers didn’t approve of the MAC Wonder Woman packaging, believing it cheapened the MAC brand (which is seen as a quality cosmetics leader with a trendy, younger customer base). Other fans defended the brand saying they loved the “fun, funky look.” As a result the controversy received lots of varied opinions and comments on websites, social media and blogs – all which, of course, greatly stimulated brand interest even further.

Image via Cult Beauty

MAC executives built up a significant amount of pre-release excitement and anticipation by sending samples to leading beauty bloggers and magazines. Each product in the limited edition range was supported with a detailed descriptions, ensuring plentiful coverage for its target audience to read about.

All this pre-launch activity ensured the Wonder Woman limited edition lipsticks, blushers etc. generated lots of online traction thereby making them easy to find on search engines and consequently in retail outlets too when finally released. Cumulatively this integrated pre-launch marketing strategy raised the MAC Wonder Woman limited edition range profile and stimulated greatly increased interest to potentially purchase.

In an effort to gain further traction for their limited edition packaging, MAC also initially limited the collections availability. The Pro Members on the MAC website were given access to the MAC Wonder Woman goods 12 hours before anyone else – thereby increasing the range’s exclusivity even further. MAC limited edition products have been known to sell-out within two days. The MAC Wonder Woman range was no exception.

Feel-Good Associations

Beefeater Gin chimed into the London zeitgeist last year when it launched a limited edition bottle aimed at celebrating the capital’s stupendous year with the Olympics and the Queen’s Diamond Jubilee.

Their new bottle, coloured pillar box red, celebrated London’s ‘inner eccentricity’ the company said, by showing glimpses of London life inside the outline of a beefeater to reflect the city’s vibrancy and diversity. Pre-orders for the bottle were the highest the company has ever received, which is a testament to its success as a limited edition range.

Where Beefeater really excelled with the limited edition brand packaging was in associating their brand with the ‘feel good and success factor’ that was very much an integral experience of London at the time. Beefeater is a London brand and by amplifying its association with key London characteristics around a significant event, Beefeater executives hoped that customers would associate the Beefeater brand with a happy occasion in their lives, and one which brought to mind the feeling of success as well as celebration.

Image via Packaging of the World

Reinforcing Brand Identity

Another association which enhanced a brand (also a drinks company) was that of film director David Lynch and Dom Pérignon. The arty and cool Californian-based movie maker designed new ‘ghostly’ labels for the brand.

Image via Harvey Nichols

According to the brand’s website, the two have much in common. A spokesman for Dom Pérignon said: “The worlds of Dom Pérignon and the one of David Lynch have many points in common: mystery, intensity, commitment, time, the constant reinvention of the self, and above all, absolute faith in the power of creation.”

So Why Does Limited Edition Packaging Typically Sell So Well?

Apart from the above ‘success/feel good’ associations (Beefeater) and creating demand through exclusivity (MAC), limited edition brand packaging can also reaffirm to its target customer that he or she has made the right brand choice. Limited edition packaging tends to be of a higher and more eye-catching quality than the standard packaging for the brand, which in turn makes it look even more enticing and, importantly, more exclusive and thereby making it more sought after.

Limited Edition Packaging Can Be A Test For Permanent Packaging

And what happens when a limited edition brand is just too popular to remain a one-off? Ask Coca Cola. Such was the popularity of the drink giant’s exclusive diet coke design that it decided to resurrect it a year later and make the bold and more minimalist design its standard Diet Coke can format.

The design enlarges then crops the original Diet Coke logo which makes it more eye-catching on shelves, according to the company’s executives.

Image via CreativeBoysClub.com

It Can Result In A Whole New Brand Campaign Strategy

Kit Kat wanted to ensure its limited edition white chocolate bars were never forgotten – and managed to boost its free publicity quota as a result.

The Australian branch of the chocolate firm said they were preserving a piece of the brand’s history by saving the last 50 bars and handing them over to illustrator Mike Watt. He then proceeded to melt the bars down and form pictures from the gooey chocolate moulds using a knife. The process makes an interesting video and the final pictures were uploaded onto Kit Kat’s Facebook page leading to increased social media interaction, which in turn also boosted the company’s SEO endeavours and the Kit Kat brand profile.

Image via Feel Desain

Limited edition brand packaging can have multiple advantages when used effectively to leverage a brand, not to mention of course increasing sales and profitability. It can also add greater perceived value to a brand’s existing core product range by making customers feel like they’re receiving something ‘really special’ with an added extra. It doesn’t just increase brand impact in the market, but it can also create an even greater demand for products by marking them with an exclusive tag, which its target audience consequently finds irresistible.

• What kind of limited edition packaging could your brand consider?

• Could you tie your limited edition packaging in with an appropriate significant event or occasion to amplify its significance?

• Who in your current target audience would be extremely attracted to a limited edition range of packaging for your brand?

Brand Expansion: Give Your Customers What They Want!

May 10, 2013/0 Comments/in Brand Expansion, Brand Relevance, Brand Strategy, Business, Customer Engagement, Market Insights, Market Research, Marketing /by Lorraine Carter

If we learn nothing else from the fast food and drink industry it is that complacency has no place in the business world, even among global brand leaders. A trend has emerged whereby large fast food and coffee retailers are expanding their brand model into new areas in order to capture new market opportunities and extend their customer offering.

Listen To What Your Customers Are Saying

Often, an expansion of an original brand offering is the result of a brand trying to remain relevant to the customer and their ever evolving tastes.

Starbucks, arguably the largest and strongest coffee retail chain in the world recently began rolling out a new concept for the brand: Starbucks Evenings. This expansion of their original strategy sees the coffee giant expand their offering to alcoholic beverages along with small plates of artisanal food.

The concept is a response to customer feedback calling for more options to relax in store in the evenings. Starbucks’s expansion of their food and beverage options aims to create a new occasion for customers to visit their stores. By engaging with the customer, Starbucks captured valuable insight into the changing needs and behavioral trends of their customers and expanded their brand offering accordingly.

Increasing Loyalty and Increasing Revenue

The success of McCafe demonstrates McDonalds ability to listen to customers and a willingness to make them happy. The brand identified that their customer’s were coffee drinkers but went elsewhere for their coffee purchases, as McDonalds coffee was deemed lesser in quality. McDonalds responded in steps; first by introducing 100% Arabica beans for their coffee to produce a better quality coffee and provide credibility as a quality coffee provider. Then introducing Iced coffee to the menu before launching the McCafe brand expansion.

By listening and responding to customer feedback the brand succeeded not only in enhancing the brand experience for their customers, but through the expansion of their brand offering, McDonalds succeeding in capturing a valuable share of the coffee market.

Expanding Your Brand To Strengthen Its Positioning

Progression is important for any brand and Starbucks Evenings aims to evolve and enhance the brand experience based on what the customer are telling them.

While this expansion of the brand is being communicated as being a customer-centric strategy, the move serves a dual purpose. Not only are Starbucks aiming to satisfy the evolving needs of their loyal customer base, the expansion of the brand experience leaves them less dependent on the increasingly competitive coffee chain market. If the expansion is successful, the brand will enjoy a stronger position in the minds of their target customers and be less susceptible to the effects of direct competition from other coffee chains.

Expanding Customer Perceptions

The Starbucks move might look like the brand is deviating from its core business, but the strategy is not unlike that undertaken by McDonalds when they first introduced breakfasts to their menu. The brand identified an untapped market in the breakfast sector and then worked to change customer’s perceptions of the brand as a plausible breakfast provider. Years later, and McDonalds has redefined the market as a profitable route for fast food brands.

McDonalds are a great example of a brand that constantly looks for fresh ways to expand the brand to increase growth and market reach. Without deviating from their core brand values, McDonalds has expanded the brand into unlikely avenues and succeeded in exploiting previously untapped markets in the fast food industry.

The brands latest move McDonalds “Nocturnivore” is a response to changing customer habits and potentially lucrative unexploited dining times. Just as Starbucks is trying to open up a low-traffic daypart with alcohol sales, McDonald’s is testing a “Breakfast After Midnight” menu for the relatively untapped “fourth daypart” — between 2 and 5 a.m. The “Nocturnivore” menu and campaign is promoting late-night dining of not only dinner but also breakfast items. Less than 1 percent of total fast-food traffic comes in during those hours, but 1 percent is still 1 percent.

Sometimes the market share we need can be created rather than earned. Listening to our customers or redefining markets can open up huge possibilities for new revenue channels, new market relevancy or market repositioning.

• What could you do with your present brand offering to expand your current reach beyond the obvious status quo and grow your market share?

Sub-Branding: How Many Brands Do You Need To Get A Profitable Return?

April 9, 2013/0 Comments/in Brand Expansion, Brand Profiling & Positioning, Brand Strategy, Brand Values, Branding, Business, Global Branding, Marketing, Return On Investment, Sub-Branding, Sub-Brands /by Lorraine Carter

What happens when a successful brand fails to impact within a new market or market segment? When despite best efforts, the brand cannot make itself relevant to a new market? Is introducing a sub-brand the answer?

There are instances when sub-brands hold the key to expanding market share and broadening profit opportunities. However, sub-branding also runs the risk of jeopardizing the strength of the parent brand if implemented without due diligence and careful analysis.

Effective Sub-Branding Strategies

1. Entering Markets That Are Closed To The Parent Brand

Air Canada recently launched Rouge, a low-cost sub-brand airline created as a means to serve new market destinations that the existing model could not serve on a competitive basis. Air Canada’s original brand value structure would be compromised if the parent brand cut their prices and changed the quality of their value proposition. Rouge aims to be a proactive manoeuvre by the brand against new low cost carriers operating within Canada.

Disney releases Certified 18 movies under their Touchstone brand as doing so under the Disney name would be incongruent with the Disney brand identity and what it stands for; magic, fun, wholesome family experiences full of happy memories and happy endings!

2. Satisfying Segmented Customer Needs

Hoteliers segment their market by brand type and frequently introduce meaningful sub brands to serve new customer needs and enter new markets. By separating the hotels into sub-brands, Hoteliers can highlight the different value bundles offered under each brand. It provides clear distinction for the customers on the level of service to be expected from each sub-brand, providing an obvious choice for the business or luxury customer versus the family on a budget.

3. Industry Norms

Sub-brands are part of the culture of some industries. Car manufacturers frequently release cars under sub-brands. This is particularly effective when each sub-brand has a particular focus and value proposition that does not overlap with other sub-brands within the family. Toyota’s Prius has a very definite brand identity and serves a focused target market. It allowed Toyota to create a leading position within the environmentally conscious market segment and made the Toyota brand more relevant with that customer group.

Sub-Branding Risks

Sub-brands have been known to help companies thrive, capturing new market segments and introducing a parent brand to a wider audience. However sub-branding can come at a cost too.

1. Reduced Impact of Parent Brand

Establishing and marketing a sub-brand demands a considerable investment of capital and resources. In most cases sub-brands move resources away from the core brand, risking potential sales of the parent brand itself. The success of the Coors Light beer came at the expense of a loss in market share of the parent Coors brand due to the reduced marketing budget available to advertise Coors.

2. Create Competition

Sometimes sub-brands can invite competition within a sector, creating obstacles that previously did not exist. American Express had established itself as the premium brand within the credit card market. Then it decided to introduce sub-brands: the American Express Gold Card and American Express Platinum. Suddenly it opened up the opportunity for competitors to launch their own products aimed at the high-end customer, forcing American Express to fight for its premium position.

3. Over Stretch Marketing Resources

As with any strategy, introducing a sub brand offers both pros and cons. The general consensus is that companies should operate with as few brands as possible to maximize the impact of limited marketing resources.

Marketing will appear weak and ineffective if it is spread too thinly. Economies of brand, strategic focus and clear efficient internal operations can often give the parent brand the support it needs rather than employing a sub-brand strategy.

While sub-brands can help to upscale or downscale a brand offering, without clear differentiation a sub-brand can cause real confusion with customers as to the value proposition and unique offering of each sub-brand.

Remember, if your core brand is failing to make an impact within a market there are other strategies that may serve your corporate goals. Identifying the possibilities at hand such as expanding core values, evolving the brand structure or reinterpreting existing brand values could have the desired effect and impact with your target customers.

Before you explore developing sub-brands ask yourself this: how many brands do you need to get the job done?