Attracting and selling to the ultra-high net worth individuals (UHNWIs), often referred to as the 1%, requires a strategic and personalized approach given their distinct preferences, expectations, and purchasing behaviors. Here are some effective strategies for a luxury business targeting this exclusive market:
Personalization and Customization:
UHNWIs appreciate personalized and bespoke experiences. Tailor your products and services to meet individual preferences and offer exclusive customization options.
Exclusivity and Limited Editions:
Create limited edition products or services that are exclusive to UHNWIs. Limited availability enhances the allure of your brand and products.
VIP Services and Privileges:
Offer VIP services such as priority access, private viewings, and exclusive events. UHNWIs value unique experiences and providing them with privileged treatment enhances their connection to your brand.
Private Consultations:
Provide private consultations or concierge services where UHNWIs can receive personalized attention and guidance. This can include private shopping experiences or dedicated advisors.
Exceptional Quality and Craftsmanship:
UHNWIs seek the highest quality and craftsmanship. Ensure that your products or services are of unparalleled quality, using the finest materials and skilled artisans.
Brand Heritage and Legacy:
Highlight your brand’s heritage and legacy. UHNWIs often appreciate the history and traditions associated with luxury brands.
Collaborations with Influencers:
Partner with influential personalities or celebrities who resonate with the tastes and lifestyles of UHNWIs. Their endorsement can enhance your brand’s desirability.
Exclusive Membership Programs:
Introduce exclusive membership programs that offer unique benefits, such as access to limited editions, private events, and personalized services.
Art and Cultural Connections:
Align your brand with art, culture, and philanthropy. UHNWIs often have a keen interest in supporting and engaging with cultural and charitable initiatives.
Digital Presence with Discretion:
Maintain a sophisticated and discreet digital presence. UHNWIs value privacy, so ensure that your online interactions and communications respect their need for confidentiality.
White Glove Service:
Implement a white glove service approach, going above and beyond to meet the expectations of UHNWIs. This includes seamless and personalized customer service.
Networking Opportunities:
Create exclusive networking events where UHNWIs can connect with like-minded individuals. Building a community around your brand enhances its appeal.
Tailored Marketing and Communication:
Craft marketing messages and communication materials that resonate with the aspirations and lifestyle of UHNWIs. Use high-end publications and targeted platforms.
Innovative Technology Integration:
Incorporate innovative technologies or cutting-edge features into your products or services to demonstrate a commitment to staying at the forefront of luxury trends.
In the end, building trust, maintaining discretion, and consistently delivering exceptional experiences are key elements in attracting and retaining UHNWIs. It’s not just about selling a product; it’s about creating a lifestyle and a sense of exclusivity that aligns with their values and aspirations.
Branding is essential for professional practices such as dentists/orthodontists, law firms, architect offices, and specialty physician practices such as Plastic Surgeons, to distinguish themselves in competitive markets and build a positive reputation. Here are branding strategies tailored for each:
Dentists & Orthodontists:
Distinctive Logo and Colors:
Create a professional and memorable logo that reflects the dental practice’s values and expertise.
Choose a color scheme that conveys cleanliness, trust, and professionalism.
Patient-Centric Messaging:
Craft messaging that emphasizes patient comfort, care, and overall oral health.
Highlight modern technologies and techniques to showcase the practice’s commitment to quality.
Online Presence:
Develop a user-friendly website with information about services, staff profiles, and patient testimonials.
Leverage social media platforms to share oral health tips, showcase before-and-after cases, and engage with the community.
Community Engagement:
Sponsor local events, participate in health fairs, and collaborate with schools to promote oral health education.
Offer promotions or discounts for community members to encourage new patient referrals.
Professional Referral Networks:
Build relationships with local healthcare professionals for referrals.
Ensure a seamless and positive experience for patients referred by other healthcare providers.
Law Firms:
Logo and Brand Identity:
Design a logo that reflects the law firm’s values and specialization.
Use consistent branding elements across all communication channels, including letterheads, business cards, and the firm’s website.
Specialization Showcase:
Clearly define the firm’s areas of expertise and specialization.
Showcase successful cases or client testimonials to build credibility.
Website Optimization:
Develop an informative and user-friendly website with a professional design.
Include lawyer profiles, case studies, and legal resources to establish the firm as an authority in its field.
Thought Leadership:
Establish lawyers as thought leaders by writing articles, blog posts, or whitepapers on legal topics.
Leverage social media and guest appearances in legal forums to share insights and expertise.
Client-Centric Approach:
Emphasize client satisfaction and a client-centric approach.
Provide transparent communication, set realistic expectations, and offer personalized services.
Architect Offices:
Portfolio Presentation:
Showcase a diverse and visually appealing portfolio of completed projects on the website and other marketing materials.
Highlight the unique design elements and problem-solving approaches in each project.
Design-Centric Branding:
Reflect the firm’s design philosophy in its branding, using clean lines, modern fonts, and visually appealing color schemes.
Incorporate architectural sketches or blueprints into the branding to convey creativity and innovation.
Collaboration and Innovation:
Emphasize a collaborative approach to projects, showcasing the team’s ability to work closely with clients.
Highlight innovative design solutions and the use of sustainable or cutting-edge materials.
Digital Presence:
Utilize digital platforms like Instagram, Pinterest, and Houzz to visually showcase completed projects and design inspiration.
Maintain an up-to-date and visually engaging website that reflects the firm’s design sensibilities.
Networking and Industry Involvement:
Attend industry events, join architectural associations, and participate in design competitions to enhance visibility.
Network with other professionals in the construction and design industry for collaboration opportunities.
Specialty Physician Practices:
1. Define Your Unique Value Proposition (UVP):
Clearly articulate what sets your specialty practice apart from others.
Highlight your unique expertise, cutting-edge technology, patient-centric approach, or any specific services that distinguish your practice.
2. Create a Professional and Recognizable Brand Identity:
Develop a distinctive logo and use a consistent color palette and design elements.
Ensure your visual identity reflects the professionalism and trustworthiness associated with healthcare.
3. Optimize Online Presence:
Design a user-friendly and informative website that includes details about your specialty, services offered, physician profiles, and patient testimonials.
Utilize search engine optimization (SEO) to ensure your practice appears in relevant online searches.
4. Educational Content Marketing:
Establish your practice as an authority in your specialty by creating and sharing educational content.
Maintain a blog on your website covering relevant health topics, treatment options, and the latest advancements in your field.
5. Patient-Centric Branding:
Emphasize your commitment to patient care and satisfaction in your branding.
Use patient testimonials, success stories, and case studies to showcase positive outcomes and patient experiences.
6. Utilize Social Media for Engagement:
Engage with your audience on social media platforms like Facebook, Instagram, or Twitter.
Share relevant health tips, success stories, and updates about your practice. Respond promptly to patient inquiries and feedback.
7. Community Involvement and Partnerships:
Participate in local health fairs, events, or community initiatives to increase your practice’s visibility.
Establish partnerships with local healthcare organizations or community groups to enhance your community presence.
8. Professional Referral Networks:
Develop strong relationships with referring physicians and specialists.
Ensure seamless communication and coordination between your practice and others involved in a patient’s care.
9. Online Reviews and Reputation Management:
Encourage satisfied patients to leave positive reviews on platforms like Google, Healthgrades, or Yelp.
Manage and respond to reviews professionally, demonstrating your commitment to patient satisfaction.
10. Telemedicine Services:
If applicable, highlight your practice’s use of telemedicine for remote consultations.
Emphasize the convenience and accessibility of virtual appointments.
11. Consistent Communication:
Establish a regular communication strategy to keep patients informed about practice updates, new services, or relevant health information.
Utilize newsletters, email campaigns, and social media for consistent outreach.
12. Crisis Communication Plan:
Develop a crisis communication plan to address any unforeseen challenges or crises promptly.
Be transparent, provide accurate information, and maintain open communication with patients and the community.
13. Continued Education and Training:
Showcase the ongoing education and training of your physicians and staff to highlight your commitment to staying at the forefront of your specialty.
14. Innovative Technology Integration:
Highlight any advanced or innovative technologies used in your practice.
Showcase how these technologies contribute to better patient outcomes and experiences.
By implementing these branding strategies, professional practices can build a strong and positive image, attract clients, and differentiate themselves in their respective industries.
Creating artificial scarcity with products is a shrewd marketing strategy that aims to increase demand and perceived value by limiting the availability of a product or service. It can be used to generate excitement, urgency, and a sense of exclusivity among consumers.
However, to earn respect and steadfast clientele as a “prestigious” brand, it’s essential to approach this strategy ethically and transparently. Here are some methods to create artificial scarcity with products:
Limited Editions: Offer limited editions of your products, making it clear that there will only be a fixed number available. This can create a sense of urgency among customers who want to own something unique and exclusive.
Time-Limited Offers: Implement time-limited offers or flash sales, where the product is available at a discounted price for a short period. This encourages customers to make quick decisions to avoid missing out on the deal.
Pre-Orders and Waitlists: Launch products with pre-order or waitlist options. By allowing customers to reserve a product before it’s officially released, you can create anticipation and interest in the item.
Seasonal or Holiday Releases: Introduce products that are specifically tied to certain seasons or holidays. This creates a sense of urgency as customers know the product will only be available for a limited time.
Controlled Distribution: Control the distribution of your product to specific regions or stores, making it harder for customers to access it, and thus creating a perception of scarcity.
VIP Access: Offer exclusive access or early release to a select group of customers, such as loyal customers, members of a loyalty program, or influencers. This can make others desire the product even more.
Limited Time/Quantity Promotions: Run promotions where a specific number of units are available with added benefits (avoiding discounts). Clearly communicate the limited quantity or time frame to create urgency.
One-Time Reissues: If you have an older product that was well-received but discontinued, consider reissuing it for a limited time. This could create a surge in demand from customers who missed out on the initial release.
Building cachet
Building cachet in a product or service is a strategic approach used by businesses to create a perception of prestige, exclusivity, and desirability. It involves enhancing the brand image and reputation to attract a select target audience willing to pay a premium for the perceived value and status associated with the offering. It requires consistent messaging, attention to product quality, and a clear understanding of the target audience’s desires and values.
Cases in point: Nike vs. Hermès; Diamond industry; Prime energy drink
Hermès is not the world’s biggest fashion label ─ it’s Nike, followed by Louis Vuitton (LVMH group), Gucci (owned by Kering), Chanel, Adidas and finally Hermès. But Hermès appears to be the most desirable brand. Recently, the stock price of the French leather goods company, founded by harness-maker Thierry Hermès in 1837, soar to more than €2,000 per share. It raised Hermès’s market cap to €210 billion, even surpassing that of Nike. Hermès is primarily owned by the Hermès family, which through its holding company, H51, holds the majority of the company’s stake, and one of the few luxury brands that remained independent.
Much of Hermès’s magnetism comes from positioning itself as an exclusive brand by creating scarcity over its two priciest best-sellers ─ the Birkin, starting at €15,000 and produced in small numbers (artificial scarcity, thus waitlists) and the Kelly bags. These two alone accounts for €2 billion in annual sales.
A notable industry which in its entire history has created artificial scarcity is the diamond sector. It controls supply to manipulate prices. On top of extreme ethical violations, leaders in the diamond industry are extremely clever in limiting the supply of the clear and glitzy rocks. Despite diamonds being numerous, fake scarcity keeps prices extremely high. The estimates on markups are broad, but most of the reliable sources indicate that at least 300% is the usual markup.
Prime Hydration is a line of fruit-flavoured sports drinks fortified with vitamins and minerals. It was launched by rapper and boxer KSI and YouTube content creator Logan Paul in January 2022. It’s so popular worldwide that in places, such as the United Kingdom, grocery stores have had to ration it. In the U.S. and Canada, it retails online for about $10 per 500 ml (16.9 oz.) bottle. So, what gives with this particular product?
FOMO (Fear of Missing Out): Scarcity triggers the fear of missing out, and consumers may be more motivated to purchase an energy drink if they believe it won’t be available for long.
Collectability: Limited-edition or rare energy drinks can become collectibles, appealing to enthusiasts who want to own and preserve unique products.
Social Media Buzz: Artificial scarcity can generate buzz on social media platforms as consumers share their excitement about the limited availability of the product.
In the final analysis
Remember that while creating artificial scarcity can be an effective marketing tactic, it’s essential to maintain transparency with your customers. Be clear about the limited nature of the offer and avoid deceptive practices that may undermine trust in your brand. Additionally, be mindful of potential backlash if customers feel manipulated or misled. Artificial scarcity should be used ethically and as part of a well-rounded marketing strategy.
Clever branding and marketing can certainly play a crucial role in the success of a product or service. While it’s not the sole determining factor, effective branding and marketing strategies can significantly impact a brand’s visibility, customer perception, and overall sales. Here’s why branding and marketing are important:
Differentiation: In a competitive marketplace, branding and marketing help distinguish a product or service from its competitors. Clever branding allows a brand to develop a unique identity, positioning it as distinct and memorable in the minds of consumers. Effective marketing communicates these unique selling propositions, highlighting the benefits and value the product or service offers compared to others in the market.
Building Awareness: Branding and marketing are essential for creating awareness and generating interest in a product or service. Through strategic marketing efforts, such as advertising, public relations, social media, and content marketing, a brand can reach its target audience, educate them about the offering, and generate buzz. This increased visibility helps to attract potential customers and generate leads.
Consumer Trust and Perception: Strong branding and marketing can enhance consumer trust and perception. A well-crafted brand identity, including a compelling brand story, logo, and consistent messaging, can create a sense of authenticity and reliability. Effective marketing campaigns that communicate the brand’s values, quality, and customer benefits can build trust with consumers, encouraging them to choose the product or service over competitors.
Customer Loyalty and Advocacy: Clever branding and marketing can foster customer loyalty and advocacy. A well-established brand with a positive reputation and strong brand affinity is more likely to retain customers and encourage repeat purchases. Engaging marketing campaigns and strategies that prioritize customer satisfaction can turn customers into brand advocates who willingly promote the product or service to others, leading to organic growth.
Adaptability and Innovation: Branding and marketing also allow a brand to stay relevant in a dynamic market by adapting to changing consumer preferences and trends. Through continuous market research, branding can evolve to meet consumer needs and expectations. Effective marketing strategies can showcase product updates, innovations, or new offerings, ensuring that the brand remains competitive and appealing to its target audience.
While branding and marketing are important, it’s essential to note that they should be supported by a quality product or service. Clever branding and marketing alone may attract initial attention, but the ultimate success of a product or service relies on delivering value, quality, and meeting customer expectations.
Brand management is the process of creating, developing, and maintaining a brand in order to achieve business goals. It involves establishing a brand identity, building brand equity, and ensuring that the brand remains relevant and competitive in the market. However, brand management strategies can vary depending on the type of brand being managed. In this article, we will explore the differences between managing a consumer-packaged goods (CPG) brand and a luxury brand.
What is CPG brand management?
CPG brands are typically everyday products that consumers use on a regular basis, such as food, beverages, personal care products, and household items. CPG brand management is all about creating a brand that appeals to a broad range of consumers and maintaining that brand in a highly competitive market. CPG brand managers need to focus on product innovation, pricing, packaging, distribution, and marketing in order to succeed.
The focus of CPG brand management is on creating a consistent and reliable product that consumers can trust. CPG brands often have lower profit margins than luxury brands, which means that cost control is critical to their success. CPG brand managers need to carefully balance the cost of producing their products with the price they charge consumers in order to maximize profits. Additionally, CPG brands need to be marketed in a way that appeals to a broad audience and drives sales volume.
What is luxury brand management?
Luxury brands, on the other hand, are products or services that are associated with high levels of quality, exclusivity, and status. Luxury brand management is all about creating a brand that conveys a sense of prestige and luxury to consumers. Luxury brand managers need to focus on product design, craftsmanship, exclusivity, and marketing in order to succeed.
The focus of luxury brand management is on creating a sense of exclusivity and rarity that appeals to a select group of consumers. Luxury brands often have higher profit margins than CPG brands, which means that their pricing strategy can be more flexible. Luxury brand managers can charge premium prices for their products, and they often use scarcity and limited availability to create a sense of exclusivity.
Luxury brands are also marketed in a way that is different from CPG brands. Instead of appealing to a broad audience, luxury brands target a niche market of high-net-worth individuals who are willing to pay a premium for quality and exclusivity. Luxury brand managers often use celebrity endorsements, event sponsorships, and other high-end marketing techniques to build brand awareness and create a sense of exclusivity.
Key differences between CPG brand management and luxury brand management:
Target market: CPG brands target a broad audience, while luxury brands target a niche market of high-net-worth individuals.
Product features: CPG brands focus on creating a reliable and consistent product, while luxury brands focus on exclusivity and rarity.
Pricing strategy: CPG brands typically have lower profit margins and need to balance the cost of production with the price they charge consumers, while luxury brands can charge premium prices and use scarcity to create a sense of exclusivity.
Marketing strategy: CPG brands are marketed in a way that appeals to a broad audience, while luxury brands use high-end marketing techniques to build brand awareness and create a sense of exclusivity.
In conclusion
While both CPG brand management and luxury brand management involve creating and maintaining a brand, the strategies used to achieve these goals can be very different. CPG brands focus on creating a consistent and reliable product that appeals to a broad audience, while luxury brands focus on exclusivity and rarity to appeal to a select group of high-net-worth consumers. Understanding these key differences is essential for developing effective brand management strategies in either context.
There are brands that tout the virtues of their products and/or services with a religious fervor. A “cult” brand is a product or service with a strong loyal customer following, whereby their clients are fanatical about their products or services to the point where their lifestyle revolves around those popular brands. This level of fanaticism also makes those devout followers unsolicited brand ambassadors.
Cult brand examples with customer aficionados include Apple, BMW, Porsche, Fox News, Lulumemon, Zappos, Oprah, Harley Davidson and Starbucks to name a few. As for Starbucks, it offers a superior product and experience that some people would go out of their way, by driving by less expensive alternative coffee shops, to pay for Starbucks’s pricier cup of coffee.
More than just a product or service, it is a lifestyle
Generally speaking, brands that are designed for a lifestyle should have a much higher emotional value to consumers than ones based on features like cost or benefits alone.
Call it “hype” or give it any other label, cult brands are a unique breed that create and are given plenty of attention. Their brand value is also much higher than their closest competitors. They have achieved a special connection with consumers through their distinctive appeal.
Unlike religious or similar type cult following, the cult brand is considered “benign” or a “benign cult” since it satisfies a need and desire in a positive and harmless manner. Some brand loyalists have gone as far as having their beloved brand tattooed on their body.
A brand is considered as a “cult” brand if the following aspects are present:
Customers receive more than a product and/or service ─ they experience a lifestyle;
Brand devotees firmly believe there are no substitutes for their beloved brand;
Customers feel a sense of ownership with the brand;
Loyalty is prolonged over time compared to brands which are considered fads and unsustainable in the long-term;
An extraordinary degree of customer loyalty exists.
Ingredients of a cult brand: using psychology, identity and a sense of belonging
It is not enough for brands to spend plenty of money on glorified advertising. Any company with an adequate budget can do that. The essential challenge is to utilize an approach that makes people want to embrace a product and/or service that people would enjoy making it part of their life, as well as identity and belonging.
Brand cult status is an emotional component of the brand but it is not as simple to achieve. As per The Cult Branding Company, a brand consultancy firm, there are seven rules of cult brands this author stands behind ─ and are as follows:
Rule #1 – Differentiate: To achieve a special connection with consumers, the brand should have a distinctive allure and be unconventional in a good sense.
Rule #2 – Be Courageous: Cult Brands are successful because they are unlike their competitors. They possess their own personality, DNA and rules. They are also passionate about their offerings and their customers for whom they exist in the first place.
Rule #3 – Promote a Lifestyle: The goal of a lifestyle brand is to get people to relate to one another through a “concept brand.” These brands successfully sell an identity, image and status rather than merely a “product-service” in the traditional sense of the term.
Rule #4 – Listen to Your Customers: Focus on serving your customers’ desires by being customer-centric. Encourage feedback and utilize it as an opportunity to form ideas, and provide solutions that establish and retain loyalty.
Rule #5 – Support Customer Communities: Cult Brands build effective and sustainable relationships with their customers by developing and supporting a customer community that allows users, partners, and company employees to share information, answer questions, post problems, and discuss ideas about product enhancements and best practices in real-time. Cult brands also gather their loyalists by organizing occasional social events to ignite additional enthusiasm for the brand.
Rule #6 – Be Open, Inviting, and Inclusive: Cult Brands do not discriminate in terms of age, race, or sexual preference. As such, everyone who believes in the brand’s mission is welcome.
Rule #7 – Promote Personal Freedom: For most, the Abraham Maslow hierarchy of needs pyramid includes elements of self-esteem and self-actualization. As such, a well-regarded brand will express this as much by promoting freedom which is essential in expressing one’s own unique identity and worldview without fear of consequences.
In the end: Achieving the highest level of emotional connection via brand advocacy
Cult brands have a fanatical customer base. A culture is created around the brand based on consumers of a niche group. From there, the brand evangelists spread the message and enlist more followers.
When consumers are treated with honesty and delighted by a brand experience, they begin to bond emotionally with the brand. They become brand loyalists and advocates – buying the brand more often and recommending it to others. This behavior serves to build the brand’s reputation. This approach is priceless – even though it may take longer to take a positive effect.
That said, innovative products, exceptional services, the total customer experience and the lifestyle which comes with being associated with the brand are what truly makes a cult brand exceptional from competing brands. The key objective is to create a relationship of trust. The world’s powerful brands establish trust and friendship with their customers. They develop emotional capital, and gain passion. This is what makes them great, thus “cult” brands.
In strategic marketing “speak”, who earns more money? A general practitioner or a specialist physician such as an ophthalmologist? The latter has spent additional years studying with an emphasis on one particular area of practice which makes him or her both scarce and sought after in his or her profession. The same goes for an organization that has spent years studying the market with emphasis on doing one thing, but one thing extremely well. This automatically justifies higher fees translating to improved earnings. How does a saddle maker to the horse and carriage trade reposition itself to maximize its know-how in leather goods to now command $4,500 for a simple briefcase? Or even hawk silk scarves at $400? Think Hermes.
The answer lies in specialization, craftsmanship, and branding. As with all other specialized professions, a business that, chooses to concentrate on a particular market segment should simply be generating higher revenues. Alternatively, if you join the herd of the mainstream, there is always a vast consumer audience to tap. Profit is driven by volumes. It is harder to compete on price to the point of being perceived as offering a commodity with little or no differentiation — otherwise known as a “unique selling proposition” (USP). The only exception to that rule is when an enterprise keeps churning out innovative, “must-have” items ahead of its competition. Yet that requires constant creativity, refinements, and a considerable amount of R&D. Apple is an example of a brand that has managed to hit both objectives. Not bad for an enterprise, that started life in a garage.
Defining the term “Niche” Strategically, niche marketing is the way to go forward. However, you ought to be on top of the game. Recently, the firm Kusmi Tea has managed to put all the right elements together in an unbeatable combination. It personifies mass marketing and branding. If you have a specific group of people interested in “organic tea”, you have your proverbial niche. Whether promoting niche products, in focused markets, such as those for vegans, cruises exclusively for “cougars and cubs” or geared for ultra-high net worth individuals, the activities applied to attract that refined target undoubtedly calls for creative strategic thinking.
Targeted Audiences The best way to start is to define your target audience. An 18-year-old girl who wants to lose weight to fit into her dress is interested in weight loss diets. Hit her at her waistline, and the target is captured with simplicity.
The family who just purchased a puppy wants it trained and therefore requires the appropriate service. Show you can make a dog shake, rattle, and roll and still act well-behaved in the company of others and you will no longer need to flog dog whistles. Ever notice how a 50-year-old lady wants to hide her wrinkles and is always searching for a miracle formula to make her wrinkles disappear in minutes? Open Vogue and see how this “class act” can be achieved. These cited groups above represent finely honed targeted audiences. Marketing to such audiences and building an emotional bridge from the intention to purchase decision always attracts higher conversions. You don’t need to recreate the wheel. All you need to do is to find a suitable product that your target audience is looking for and present it on a silver platter. All target audiences liked to be addressed with intimacy and personal contact.
Driving the Niche Common sense tells you that driving a selected audience is efficient and lucrative. The following key index shows how niche marketing should be your chosen business strategy: 1. When entering a new niche market, generally you will not have much competition to deal with. This is justification alone for choosing a specific market in the first place. It also makes your SEO (Search Engine Optimization) Internet marketing strategy focused and cost-effective.
2. Niche markets appeal to target customers, and they are generally much more willing to spend money when their specific needs are met. This means that by catering to a specific target market, you can generally earn a better profit margin.
3. Some niche markets contain sub-groups of the main niche. For example, acai berry weight loss pills or natural weight loss diets are sub-niches from the weight loss niche. Despite their relatively small size, they are actually quite sought after. Identifying this need spares you from having to compete with similar businesses. People who fit this profile will seriously consider your product — especially if it offers them a genuine solution.
4. Niche marketing makes it possible to focus on becoming a true expert within a particular realm while building a reputable brand name. Strategically, it is also more focused and easier to segment and attack.
The “Ideal” Niche Player A niche market player is very effective at working closely with customers to build and maintain long-term relationships by innovating and challenging the existing norms in the industry, thus adding value to the project, program, and organizational level. If one is considered an expert in what one does by focusing on one area, then great success will follow. The value proposition must be relevant to the target market.
This means a target market must be clearly defined. Focusing on a specific market requires knowing it inside and out. This includes conducting a market analysis, stating a precise target market description and goal, as well as being clear about the type of relationship one would like to achieve with his/her market.
By definition, then, a business that focuses on a niche market is supplying a need for a product or service that is not being met by mainstream providers. As such, one can think of a niche market as a narrowly defined group of potential clients offering them the best of what you have. In return, their vendors will profit from higher margins and customer loyalty. As for targeting smaller “sub” niches, you will find them much easier to dominate.
Recently, I followed a Linkedin luxury sector group thread. Discussion centered on the appropriate manner clients should be treated by sales personnel in a luxury retail shop such as Gucci.
To my astonishment, one participant, posing as an expert stated that salespeople at such boutiques should be snooty. The reason given was that this attitude was part of the luxury cachet.
How ludicrous and puerile, I thought.
In my experience, this is precisely what you should not do. Whether you spend $10,000 or more on a Rolex or $20,000 or more at Hermes all clients should be treated with respect. Period. Aspiration and negative attitude sales pitches are not only counterproductive, but they are also destructive. (I might add, that this should be true of all human interaction and not just the act of buying luxury products.)
Does Luxury Really Have Meaning?
Luxury was never about price. This is an outdated concept built on a social model which is incompatible with democratic values. It is about brands, which are authentic. Authenticity implies function, design, intrinsic value, and in certain cases heritage and pedigree.
Luxury must provide the right experience.
Sophisticated customers want the wow factor.
This means touching the heart and dazzling the senses. When done in this manner, the client feels their lifestyle enhanced. Yes, I know, like you do that a product is just a thing. However, things act as a trigger and can alter perception, inner balance, and outer harmony.
Look at the keys to luxury brand management and you will recognize the essentials in selling aspiration:
1) Self-expression and sense of self 2) Exceptional treatment and experience when in the act of purchase 3) Craftsmanship=Quality 4) Authenticity 5) The Rarity Factor 6) Emotional Bonding 7) Mystique
To achieve these elements the brand must be expert storytellers. One of the grand storytelling kings, Ralph Lauren, understands this like the lines on his hand.
Exceeding Expectations
Luxury goods are not sold the same way as mainstream products. It’s not enough to simply introduce and sell a luxury brand surrounded by a fancy store with design-inspired display cases either. Consumers of luxury brands tend to have higher expectations than that of traditional consumers. They are discerning and sensitive to questionable tactics, as well as intolerant when comes to aggressive salespeople.
The attitude, product knowledge, and overall delivery/presentation of the product by the sales consultant/brand ambassador all play an equally important role. This translates to a well-educated, skilled staff having good communication skills, a high level of presentation skills, and a customer-centric approach.
A study by The Luxury Institute, in New York, finds that Burberry and Bottega Veneta excel far better in CRM (Customer Relationship Management) than other companies. Their key findings were under the title:
“Leading Edge Insights Into The World Of The Wealthy”
Sales associates should be employed from related luxury brands and products, with consideration given to those in the service sector such as hospitality or premium airlines: Singapore Airlines, Swiss Airlines, Emirates, and others — or perhaps from premium apparel brands and high-end cosmetic brands. One thing is certain: Training ought to be based on specific brand requirements.
As more luxury brands open their own retail outlets to stand apart, they need to better control sales channels, image, and front-line personnel.
One cannot stress enough for Sales teams to have the right training. For new sales hires not familiar with selling luxury brands, a company has to invest to train them and ensure occasional retraining including recap courses. Luxury sales training should include: – In-depth product knowledge – specifically how it will help satisfy the customer’s needs; – Focus on the customer – who they are, what they like/dislike, determine needs, motivations and preferences; – Exceed customer expectations by delighting and surprising; – Appeal to client emotions; – Never put down the competition.
Ultimately, craftsmanship, design innovation, exclusivity, and pedigree sell themselves. Correct sales attitudes should personify the luxury branded products and it becomes in the client’s eyes a done deal.
Selling, or Rather, Storytelling with Product Knowledge and Finesse
Consumers today are sophisticated when it comes to shopping – thanks primarily to the internet where information on just about any product can be researched and used for comparison purposes. Consequently, when a prospective client walks into a store, he/she is armed with knowledge – which is why the sales professional should be product proficient and adept at assisting and guiding the client to the purchase by making use of flattery, romance, and showmanship. Charisma is an asset.
To illustrate, if a sales consultant, wearing a pristine white pair of gloves is presenting, for instance, a Chopard watch, he/she will utilize terms with finesse and avoid using language which discusses a specific price tag. In its place, the word “value” can be used. Instead of calling the product an obvious “watch”, the sales consultant can say, “timepiece”, “masterpiece” or simply pronounce the model name. It should then be demonstrated in a dazzling manner emphasizing its innate qualities and timeless design with functionality – amongst other features that focus on one’s sentiments.
When selling a niche automobile such as a Porsche, the sales professional can talk about racetracks, describe road-holding capabilities, and build up a fascinating story – after which time he/she can bring up reliability and the technical details which confirm to the discerning client what he/she is already aware of.
Hiring Selection Process: Who Should Make the Cut?
When seeking to hire sales consultants, there should be a set of criteria established to ensure a successful performance. The people selected for the end-user contact should have the following characteristics:
1) Retail sales experience in a luxury environment;
2) Empathetic: expertise in establishing customer relationships that translate into sales;
3) Image: proper attire and fashion accessories, verbal communication, and grooming. Clients should see the brand made manifest so it has a personal connection;
4) Skilled at the emotional aspects of a sale: bond with customers so that relationship leverage is genuine;
5) Passionate and Professional mindset;
6) Highly collaborative: knows how to work with and through others in a team-based environment;
7) Entrepreneurial, competitive, self-confident, and self-motivated.
Discounted Luxury is an Oxymoron
Under no circumstances should luxury brands be discounted. They need to stick to their true sense of meaning and heritage. By cutting prices, brands risk changing the quality-price relationship in the customer’s mind. This practice normally stems from sales consultants, who may not be convinced that the particular luxury goods offered for sale actually merit the price.
Such an attitude can be tricky to navigate effectively. Customers need to believe otherwise they question and the product is devalued in their eyes. Salespeople, who are not up to this aspect of brand personification should not be hired.
Price discounts should be a tactic of last resort.
A robust alternative is to offer gift items or bonuses such as complimentary tickets to Art exhibitions, gift certificates, or access to a coveted local restaurant.
Employ Mystery Shoppers
In the retail brand experience, nothing should be taken for granted. In a progressive customer-driven entity, training and developing human assets should be an ongoing process. Moreover, brands should be an enemy of the status quo.
Hiring mystery shoppers to gauge the total sales cycle approach and report back their experience to management should not be ignored.
Another suggestion is for the luxury boutique owners to hire a third party such as a consultancy firm, which specializes in the high-end retail domain, to shadow the sales consultants and evaluate their performance.
Both techniques need to be conducted with frequency. How can you understand what the client expects by acting and gauging behavior in the field? You can’t.
The Final Take
Remember, a luxury sales professional does not pressure customers to buy.
He/She plays the role of a luxury purveyor and advisor – someone who is an expert product consultant and keeps a client’s best interests at heart. By demonstrating value, a sales consultant establishes himself/herself as a professional.
It’s about establishing a person-to-person relationship as opposed to a salesperson-to-customer relationship.
In today’s economy, service has become a core competitive advantage. Hiring the right people and training them to sell properly, increase sales and retain the brand’s luster should all be part of its ongoing ambitions.
Sophisticated customers want products that dazzle their senses, touch their hearts and stimulate their minds – which they can relate to and can incorporate into their lifestyles. The degree to which a luxury product is able to deliver a desirable customer experience is vital.
When branding comes to mind, we think of products and services. We also come to think of “personal” branding ─ especially in professions such as attorneys, architects, accountants, and the like. Moreover, with the prevalence of freelancing, as well as influencers, branding offers them similar benefits in regard to grooming their image and reputation to attract more clients and fans respectively. However, cities, towns, and even countries have joined the bandwagon and business concept in branding themselves. They do so because they understand the many benefits of branding nations. These include attracting trade, business investment, possibly immigration, and/or tourism. For a few, it may be reputation management due to a negative perception/disrepute of the location.
Nation Branding refers to a process in which a country claims a distinct brand positioning in the minds of its citizens, the global prospect/customer, and international stakeholders. This requires the country to invest resources in coordinating and integrating a multitude of activities.
In many cases, the country image provides credibility to the brand image. Think French wine, Swiss watches, German Cars, Danish designs, and Greek hospitality. Additional examples as consumers top of mind are Italian fashion, Colombian coffee beans, and 100% pure New Zealand wool, and are some of the well-known examples.
Through effective nation branding, countries, and cities independently, can develop a distinct personality that benefits both the country and its renowned national brands within it. Tourism and national airlines may be the main representation between nation branding and corporate branding. However, there are various other sectors that can also partake an important role in nation brand building.
Countries are turning to PR to revive their global reputations A Public Relations (PR) agency can bring value and enhance a nation’s reputation. They are storytellers who create narratives to advance their agenda. Additionally, PR can be used to protect and build reputations through various online and offline media sources, as well as self-produced communications.
When Kuwait was invaded by Iraq, the former hired Hill & Knowlton. The agency was tasked with creating international sympathy along with Western military support for what was essentially an oil-rich undemocratic regime in the Middle East. This worked in its favour.
Where paid media, such as advertising by a country, is normally the default way to promote anything that may be construed as propaganda, earned media, which is what PR is considered, offers to help boost brand awareness, increase credibility and expand reach. Earning media on trusted outlets and news publications not only validates the content created but gives a brand for a nation third-party credibility. PR comprises any publicity or media that is not generated by the country (or city) or any of its agents, but rather by a third party ─ an agency along with organic methods via the targeted audiences, social media fans, journalists, and/or bloggers.
Corporate branding leveraging nation branding Inherent connections exist between a nation’s brand and the corporate brands that operate within. Both rely on each other, thus leveraging each other’s fortes to build and further their reputation. One corporate sector that typically has close ties to a nation’s brand creation is the airline industry. For example, national carrier airlines such as Emirates in Dubai, Singapore Airlines in the island country of Singapore, and Turkish Airlines in Turkey, have been highly successful in leveraging their respective countries’ image, culture, and values in order to market their services, as well as act as nation brand representatives globally. The experience for visitors begins with the inflight experience.
The task of building soft power, along with a positive image of their nation, is one that policymakers throughout the world are becoming ever more concerned with. The soft power strategy has become popular in Turkish foreign policy. Turkish Airlines, a well-known international airline brand, has evolved into a tool for Turkish soft power because of this appeal and the momentum Turkish public institutions gave Turkey in its pursuit of soft power.
Case Study: Repositioning Greece In today’s globalized world where national identity loses a step, a country willing to compete must have a brand. This brand should communicate to the world audience Greece’s characteristic values that make up her essence. The louder and clearer this message is broadcasted, the better Greece will emerge among the nations.
Greece is, in fact, easily recognizable globally, as a country mainly for its beautiful landscapes (especially its numerous islands), its history, food, hospitality, and some are even aware that besides tourism and agriculture industry respectively, the country is also known for its powerful merchant shipping domain. Greek shipowners control one-third of the world fleet. However, the fact that Greece enjoys a powerful image overseas does not necessarily mean that the country has a brand, at least not in a brand in the modern meaning of the word. Other countries have successfully built their own brands, but Greece has not, or at least not well enough, other than its Greek Tourism Organization with its annual tourism advertising campaigns (with a different theme and slogan every year).
Greece’s competitive positioning should be entrenched in both the leisure destination as well as an environment full of opportunities inspired by its residents’ lifestyle, boosting the business environment and merging the country as an attractive investment destination. The aim should be to create a country recognized worldwide (especially in the nontraditional international markets) for its unique lifestyle, talented people, innovation, and entrepreneurial culture but certainly without losing its destination branding features within the tourism and hospitality markets. Moreover, Greece can take advantage of its rich culture (philosophy, language, athletics, etc.) to improve its international image and cultivate cooperative relations even with countries that have no direct interests.
Greece should be able to gain competitive advantages over other nations. Being considerate of the nation’s image at home and abroad is paramount for this to transpire. Promoting a specific brand would definitely help.
In the end Evidently, positioning or repositioning a destination is not an easy task. Effective promotional campaigns and shrewd diplomacy can be utilized as a means to achieve strategic objectives. In doing so, a country or city/town, like a product or service enterprise, should think analytically, target specific audiences, create a unique value proposition, and aim to establish a global brand that resonates. This requires conceptualizing nation branding as a form of national soft power.
Futurebrand publishes the Country Brand Index every year, which includes an overall ranking of the 75 countries and rankings by dimension, FutureBrand collected quantitative and qualitative data from Approximately 2,500 opinion-formers and frequent international business or leisure travelers in 17 countries (USA, Canada, Brazil, Argentina, UK, Germany, France, Russia, Turkey, South Africa, UAE, India, China, Thailand, Japan, Mexico, and Australia). complete perception dashboards for the top five country brands, regional leaders, and ‘ones to watch’ for the future. Futurebrand tests a global research sample based on the Hierarchical Decision Model (HDM) which involves determining an individual’s awareness, familiarity, association, and preference toward a country’s brand. In their 2018-19 ranking, the top 5 nations’ brands were (ranked from first to fifth) Germany, Switzerland, Japan, Sweden, and Canada. (Source: Wikipedia) ____________________________________________
How often do you come across a company, either as a consumer or at a business relationship level, and realize how frustrating it is to deal with?
To understand and penetrate the corporate governing structure and “culture”, you need to look no further than the upper echelon of the hierarchical tree. It is here that procedural decisions are shaped and executed. An entity’s leadership is expected to head the enterprise by governing its long-term growth and sustained wealth.
Moreover, there is a constant search for the “right” human resources. Recruited and fresh talent must resemble the leadership in tone and style. Call it the organization’s DNA. Exceptional organizations are good at these types of corporate strategies, thus strengthening performance effectively.
We notice that in certain types of B2B transactions, there can be scope for unscrupulous behavior. One or both parties are tempted by “disservice” during their business exchange. Shortsightedness might lend itself to making this underhanded approach appear “profitable” on paper. Such relationships inevitably end badly because they are not conceived with trust or respect.
Success Breeds Success
Companies that foster the right attitudes and strategies put themselves on track for success. Examining their corporate histories, you can witness a trajectory of growth. They have a tendency to dominate their markets and “win” through competent talent, innovation, and an entrepreneurial mindset within the leadership at the executive level. These choices underscore the prosperity and rapid growth of the institution. An examination of Alphabet (Google) or (Meta) Facebook shows this quite nicely. They are not built like “traditional” corporations nor do they act like them.
Organizational leadership is accountable for creating value for customers, employees, and its owners/investors. When Bill Gates conceived Microsoft, he put the firm on track for providing constituent audiences with what nobody else could provide. Understanding “asset” management in an expanded meaning of the term guaranteed that Microsoft would succeed under, co-founder, Gates’s stewardship.
The opposite is equally true. When top executives lack knowledge or experience for board positions, they should not be promoted to these leadership roles. Some family-owned businesses run afoul here and this brings up the issues of sustainability and corporate governance. Another weakness in running an organization, in my view, is pushing for short-term profitability at the expense of solid planning. For example, in large organizations, competence is not the primary value but rather connections, politics, and clever tactics. Such “benefits” can usually compensate for incompetence.
No business can continue to prosper unless it attracts fresh and eager talent. Despite the dilemmas within the financial world, top organizations consistently lure new talent with lucrative compensation packages. It is easier for a firm such as Goldman to tap the “best” because of its reputation, size, and success than a small local financial player. When Goldman recruits they know where to look, whether it is Harvard or the London Business School. Prospects will already contain the seeds of the corporate culture in their past. Given the “right” conditions, new talent blossoms. Qualifications are never enough. They are a starting point reinforced by attitude and values. The selection and screening process is designed by HR to weed out inappropriate candidates.
Established software companies’ interview process includes quizzing candidates with challenging technical questions. This practice not only assesses problem-solving and knowledgeability but also explores the ability to perform under pressure, which is a key skill required for software engineers to succeed in their intense work environment.
One thing is firmly certain ─ the best-managed companies have “one” factor in common: They are constant achievers in their respective industries. These companies exude managerial excellence. Financial performance is the result of this style of management. Consider companies such as Microsoft, Amazon, and Apple, among others, which thrive and ranked in 2021 by the Drucker Institute Company Ranking, as America’s largest publicly traded companies according to Peter Drucker’s principles of effectiveness—“doing the right things well.”
Deeds Not Slogans
Companies with inept leadership usually fail in the first year or two, but even established companies can stumble badly when they outgrow the capabilities of the founding team. Research by the U.S. Bureau of Labor Statistics demonstrates that nearly 6/10 businesses shut down within the first 4 years of operation.
To be a successful entrepreneur is not an effortless task. It takes plenty of sacrifices. A new generation of young entrepreneurs thinks the road is smooth and a fast track to easy wealth. Not everyone will become Jeff Bezos. Obstacles and sacrifice are part of the deal. Harnessing opportunities and overcoming challenges daily to top the competition is constant work. These conditions are true no matter what the sector of a business engagement or company size.
Telltale signs of weak organizations can be traced to inept leadership. The following points highlight the deficiencies: • Poor customer service – slow or no customer inquiry replies – abysmal handling of sales and service complaints. Service is portrayed as a reward, not a right or benefit. • No Unique Selling/Value Proposition – Companies need to define and articulate their unique value proposition and deliver on it consistently. Create a platform for sustainable and competitive advantage. • Operational deficiencies – various ailments and no structure • Absence of or very little communication among staff and management – Divisions aren’t well-coordinated and do not function as a team. • No transparency – There is hardly any openness from management. • Unethical practices – short-term selfish objectives in search of market share. Top executives should promote social norms and principles as moral agents. • Lack of proper execution of decisions and new products/services. • Productivity incentives should be implemented to boost results and employee morale. People must be given a reason to work hard and be efficient. • Creativity is practically non-existent – An absence of innovation and employee empowerment will hurt progress and stifle new ideas. • No clear vision/strategy – there needs to be a strategic vision that reflects a truly unmet need and has the commitment of a dedicated CEO. That means that there is a well-defined target audience with a distinct value position that is differentiated, meaningful, and deliverable. • A weak sales force along with an unattractive compensation plan. • Favoring nepotism and bias – promoting family members over other qualified employees often leads to resentment or, worse, prompts valuable non-family employees to leave the company. • Poor hiring practices – should hire for attitude and train for skills. • Slow/delayed decision-making process – too many layers – overwhelming bureaucratic structure. • High turnover, which leads to poor employee morale, reduced intellectual capital, lower service levels, higher operational costs, and decreased productivity. • Management in a state of denial about their organization’s shortcomings – remaining with the dysfunctional status quo • No specific and/or stable channel strategy – Some companies focus on building a product but don’t think through how to get it into the hands of customers. Even if your product is great, unless you can sell directly, you may be dead in the water without strong channel partners. • The hidden game – corporate politics – power plays by a handful of individuals for their own benefit to the detriment of their colleagues and the company. • Misrepresentation of the brand(s) – too much hype – empty promises – not delivering on expectations – leads to dissatisfied clients who will alienate the brand. • Weak financial controls – cash flow dilemmas – over leveraged/undercapitalized (high debt-to-capital ratio) – not reinvesting a certain percentage of profits for future growth. • Absence of sound marketing program(s) and/or brand strategy – A brand is defined by how it behaves, from the products it builds to how it treats its customers, to the suppliers with whom it works. • Growing too fast and not staying on course as the company grows. • Lack or very little employee training & development. • Deficient in control systems – reactive rather than pro-active. • Lack of continuous improvements or complacent.
Top executives need to be accountable to the ownership or Board of Directors – whichever applies, or at least to an outside arm’s length and neutral party such as an adviser who can also play “devil’s advocate” when necessary.
Good Organizations Matter
The way to solve an organizational problem is to confront the structural issues with a moral sense of purpose and ethics. For its clients to receive stellar service, the firm must have its house in order. Besides structure and an efficient operation, employees should be trained and empowered to do their jobs efficiently.
Seth Godin, a renowned marketing strategist, stated succinctly: “If you want to build a caring organization, you need to fill it with caring people and then get out of their way. When your organization punishes people for caring, don’t be surprised when people stop caring. When you free your employees to act like people (as opposed to cogs in a profit-maximizing efficient machine) then the caring can’t help but happen.”
Companies that disrespect their employees and shut-out clients get willfully isolated and have a short life span through erosion of market share and significant loss of revenue. A company’s goal should place emphasis on serving its people properly and fairly. Higher morale generates higher profits – though occasionally other priorities hinder that objective, for example, self-serving behavior by certain executives.
Enterprises spanning a wide array of industries have earned distinction as “well-” or “best-” managed” by demonstrating business excellence through a meticulous and independent process that evaluates their management abilities and practices – by focusing on innovation, continuous training, brainstorming and caring for their employees’ well-being – as well as investing in meeting the needs of their clients.
In a nutshell: Well-run companies thrive no matter what by hiring the right people, taking good care of them, listening to customers, and never ceasing to innovate and improve.
In a Mad Men episode (Season 5, Episode 12: “Commissions and Fees”) actorDon Draper stated: “What is happiness? It’s the moment before you need more happiness.” Life should be a “do-it-yourself project.” Each level has its obstacles and perks, and you will be required to have a plan in order to navigate through it. With that said, the business of selling hope has been here since the bible. According to Marketdata, estimates are that the self-improvement market was worth $11.6 billion in 2019 ─ profiting off people’s problems. Not totally against this as it may actually help some individuals. However, most of the information provided is far from objective. The extravagant promotions (i.e., hype) utilized to stoke-up interest for the overrated and undervalued costly courses, as well as the 2-3 day “success concerts”, disguised as a business event with secrets to offer, along with all the hoopla on display, seem to be working for their intended target audience ─ mainly those with insecurities and inferiority complexes who believe they have been offered something of value and anticipate getting inspired. Needless to say, not everyone is a good fit for the schemes being sold.
Sadly, the euphoria, from success preaching concerts and sessions, wears off after several days, thus the attendees return to their pre-session selves. Evidently, you can’t be motivated by not being dedicated. Think of what was gained watching/listening to the “masterminds.” Possibly doses of motivation and common sense with a placebo effect.
Sold are also rehashed success “blueprint” programs where methods to become triumphant, on paper ─ in theory are scientifically unproven. Such recommendations are not blanket solutions to everyone’s challenges which one may be actually facing.
Then there are the coaching sessions which most of the time are not conducted by the extremely busy and prohibitively priced charismatic motivational “guru” himself or herself. Instead, the coaching task has been outsourced to a trained soldier who, despite his or her best effort and intention, does not possess the same persona compared to the one who had you sold on the overpriced sessions in the first place.
Master Salesmen at Manipulation & Emotions
There is a big difference between telling people what they like to hear and telling people what they need to hear. The new-age motivational gurus know exactly how to create a sense of urgency. Their charisma, voice inflection, observable passion, stage animation, audience engagement, and presentation skills are traits that create the buzz and draw crowds. They are most certainly very clever in marketing and packaging their personal image/brand. They put on a fancy light show accompanied by dramatic sound designed to evoke an emotional response in oneself creating the belief you are getting transformative change. There is no evidence to support the idea that those types of seminars have long-term positive changes in people attending them. People go to them because there is something about themselves that they want to change. There are other options and modes of therapy that are far less expensive that have been proven to be efficacious (think clinical psychology). What does it mean, for example, “to have a date with destiny”? Feel-good advice is a vague concept and an illusion. It does not solve anything or explain “how to” do something such as to overcome adversities in life or in a business.
Success trainers, income experts, and business coaches preach personal success systems. They supposedly know and share methods/strategies that will help you dream big and achieve your goals along with a substantial income. They do so by encouraging their audience to look at things from a different perspective and to become more attentive to their own talents and abilities. Yet most personal development coaches at motivational events often sell products including courses, books, and coaching. Apart from this, most built their success by selling rehashed advice.
The Use of Verbal Jujitsu
Straight talk and common sense only go so far. Apparently, sometimes it pays to overcomplicate a simple message by using simple terms into scientific or eloquent lingo as a good way to sell ideas. As a result, this should make the success guru a thought leader or mastermind on that specific subject which in turn will cause his or her reputation and authority to surge. They use this in their favor to communicate to their audience what it must do to achieve success by seeing things from a different viewpoint using vague concepts which can’t be measured. It sounds good!
Alternative and Practical Complimentary Advice
On stage, the ‘Masters at Manipulation & Emotions’ deliver glorified common sense, stirring tales of how they attained success, as well as package their most important concepts and turn them into a compelling manifesto. On social media, they deliver videos speaking about how they earned their millions. Likewise, those (self-proclaimed) success authorities use remarkably effective strategies to sell them in the form of books, talks and consulting engagements. Essentially, the takeaway from them should be how to approach personal branding with splendor.
Consider that life should be viewed as a “do-it-yourself project.” Be proactive and responsible for your own destiny. No one has a silver bullet to offer you or do for you what’s necessary to progress in your life. Furthermore, no one owes you anything! Every single one of us (barring those with physical or psychological handicaps) is capable and should be responsible for self-development and for each of our outcomes.
There are some who have stated that they have spent a reasonable amount of money on Tony Robbins books and watched free videos on YouTube. They didn’t spend anything on his costly and at times reworked courses. Perhaps this is how people should learn from such popular motivational personalities. Avoid joining and following pricey cults and simply avoid parting with your money.
As a process, this is how one should essentially consider when working on thyself (from my perspective):
1. Define/find your purpose. Discover what drives you and pursue it…relentlessly.
2. Define your goals (short and long-term).
3. Deconstruct your goals into stages and steps.
4. Create a plan with specific date targets.
5. Execute consistently. Keep pushing yourself!
6. Fail, adjust and improve.
7. Persist until achieved along with the aid of practical resources (a tenacious mindset
development is an important benefit).
8. Move on to the next.
As a final point, consider applying the SMART goals acronym to assist you in guiding your goal setting. It stands for Specific, Measurable, Achievable, Relevant, and Time-Bound. Details of this here. _________________________________________
Loyal customers are always good for business. But there are customers who are a notch better than them. Before I dive into this category, I will define what a “loyal customer” is. It’s one who regularly purchases from a particular store or chooses a certain brand repeatedly. Although they are repeat customers, their loyalty may be driven by low prices, convenience, and/or a frequent positive customer experience. A business should strive to not merely create happy and loyal customers but the type who are so enamored by your company or brand that they are willing to go out of their way to become your advocate – even if you may have disappointed them once or twice. They forgive those occasional services and quality issues but let you know when quality slips. They are beyond loyal and make purchases for themselves and others. They passionately recommend you to friends, relatives, colleagues, and others, as well as provide unsolicited praise or feedback. This is the “customer evangelist” category of customers.
Customer Evangelists as Your Indirect Salesforce
Customer evangelists influence and, in some cases, become part of a company’s volunteer salesforce and/or brand ambassador. They will not hesitate to want others to benefit as they have. The term “evangelist” is derived from the religious believers who roamed the backstreets of the world to spread the word of their faith. Beliefs are based on emotional connection, profound convictions, and arise through experiences. Strongly held beliefs impel many to tell others about theirs.
Customer Acquisition: Word-of-Mouth Still Rules
Evidence shows that acquiring a new customer is five times more expensive than keeping a current customer happy. Moreover, customer profitability tends to grow the longer a customer stays with you as it costs less to keep a customer coming back for more. Results of a study reported in 2001 by Euro RSCG Worldwide, one of the largest advertising agencies in the world, regarding the influences on buyers of consumer technology products, found how consumers get most of their information about technology products: 13 percent from advertising, 20 percent from Web sites, and 34 percent from word-of-mouth (WOM). Furthermore, 78% of people rave about their favorite recent experiences to people they know at least once per week. These results are testament to the power of what is also referred to as “word-of-mouth advertising,” WOM marketing includes buzz, viral, blog, emotional, and social media marketing.
Social Media Customer Advocates & Influencers
An “influencer” is someone who, either through his or her professional or personal brand, has a large following or audience on his or her blog and/or social media accounts such as Facebook and Twitter, whereas an “advocate” is an actual customer who has a passion for the brand and expresses that love by sharing his or her experience with others. Influencers may have a large social media following but not necessarily create the ability to drive action ─ rather it gives the ability to drive awareness. Effective influential results require audience and advocacy. Thus, advocacy is driven by the depth of conviction, and influencers typically are less committed to the product or brand than are actual customer advocates.
Loyalty or Reward Programs
There are also reward or loyalty programs specially designed by companies and brands to incentivize customers who frequently buy their products or services to be their first choice each time. Cases in point are with rewards programs such as with Starbucks where each purchase brings a customer closer to free drinks and food, Virgin Atlantic’s Flying Club a frequent flyer program that allows members to earn tier points. There are three loyalty tiers – Club Red, Club Silver, and Club Gold, each of which provides different benefits to the most loyal customers. Then there is Amazon Prime ─ a premium Amazon membership, for a certain annual cost, which provides its regular buyers with a bunch of benefits including free 2-day shipping on a wide range of products. Research shows that an effective, fair, and well-managed loyalty program works. According to Yotpo, 52% of American consumers will join the loyalty program of a brand they make frequent purchases from, and according to Bond, 84% of loyalty program members have made a redemption from the program. However, to stand the best chance of success in tough market conditions, programs must enhance the overall value of the product or service if they are to incentivize the customers to make their next purchase.
In the End
Customer or brand evangelists are customer advocates who stay loyal to a brand and make it recognized to the public on social media or word of mouth. This doesn’t simply occur on its own. It’s a process that a company/brand must design and manage through trust-building, positive customer experiences, and marketing activities. This should lead to an organic pool of natural advocates as satisfied customers are often very happy to share their experiences. Programs should also be considered and created to reward and incentivize these advocates. This is often a good return on investment. Additionally, finding and choosing people with authoritative opinions, who are followed closely by the company’s target demographic, called “influencers” may turn them into supporters as well.
I had a striking and might I dare say, haunting thought that continues to stick with me. Some years ago, I met a girlfriend through a dating site. Yes, I know this is not unusual. However, she initially remarked that I marketed myself online as if I was a (human) “product.” Through that pleasant conversation, I wasn’t certain if this was to be construed as a compliment or a criticism. Although my intent was not deliberate, I now understood the power of personal branding.
Today, personal branding is ubiquitous and an essential part of professional and non-professional activism. It isn’t different from product branding and relies on the same critical and analytical eye and criteria to float the “product” in the market. The only difference is that the product in question is “you.”
For example, if you are in the job market, the commodity you are selling is “you”. This also applies if you are seeking a promotion within your organization or whether you’re selling/categorizing yourself as the ideal independent consultant or political candidate respectively. The motives can be one or several.
The Brand Called “(Place your full name here)” No matter what your name is or who you are, you are engaged in selling an image you wish to portray to a targeted audience. Joe McGinnis in his cutting edge book “The Selling of the President” showed how this could be done effectively. The book focuses on how Richard Nixon was able to “sell” his profile to the American public in 1968.
As individuals, celebrities have pretty much mastered the art of turning themselves into powerful, eye-catching and memorable personal brands. Think Paris Hilton, Madonna, George Clooney, and Donald Trump. Even President Barack Obama, during his campaigns, demonstrated how to take an unknown quantity and build a persuasive persona.
What Can We Learn from Them? To start with, it’s not a one-off event but rather an ongoing process. Companies constantly bombard us with messages and adverts for precisely this reason. To keep us reminded of their brand and thus reinforce their brand equity.
Keeping it genuine and delivering on promises is an equally important factor to consider. Your attitude and actions, from start to finish with any task you perform, set the tone for the type of individual you are and what others can expect from you.
Create a Brand Statement and a Value Proposition Marketers, most notably, product brand managers, create messages about their products or services that encourage us to buy. Those messages tell us attributes about the product and the benefits to us as consumers if we purchase their products/services. Likewise, as a personal brand, you need to develop at least one message about yourself that tells your target market what you bring to the table, the benefits they receive from doing business with you, as well as what attracts them to you.
Your value proposition is all about your competitiveness and should spell out the strengths that surpass your competition. To put your brand to work for you in your job search, you’ll need to pull together all the pieces that make up your value proposition in the marketplace. A vibrant personal brand statement makes it that much easier for those assessing you to get an indication of what you bring to the organization.
Effective Communication Enhances your Brand Whether you’re a CEO, manager, consultant, entrepreneur, business owner, professional, or even a job seeker, you should have the ability to persuade through your written and verbal messages. This includes giving effective interviews. Effective presentation skills will not only help you sell your ideas and products but will elevate your personal brand.
Management guru, Peter Drucker once stated, “As you move one step up from the bottom, your effectiveness depends on your ability to reach others through the spoken and written word.” This effective quotation not only tells it as it is, but it also tells us a lot about Peter Drucker as an effective management expert and communicator.
Character vs . Reputation Reputation is what people say or think about you. That’s your personal brand and should be well-preserved. Character, on the other hand, is what you really are. It is crucial that you understand the distinction. It is said that character is like a tree and reputation like a shadow. The shadow is what we think of it; the tree is the real thing. Always deliver on what you promise and if you look after your character, your reputation will look after itself.
What does Personal Branding Entail? For personal branding to be effective, it requires managing perceptions effectively. This encompasses several characteristics including:
– Be Unique and Remarkable in what you do by differentiating yourself from the mainstream. In today’s crowded and competitive world, we need that extra something that sets-us apart. Be distinctive, daring and acquire a competitive edge. After all, it’s a “dog-eat-dog” environment and survival of the fittest. No matter what you do, you don’t have to live your life the way other people expect you to.
– Grooming and Clothes: — They are the packaging of your total image. The way you dress and groom says a great deal about you — whether you’re doing so out of necessity or doing it with flair, one can usually distinguish the difference. Watching your appearance also makes you feel good about yourself.
– Etiquette: — It forms a part of human interaction skills, is a strong indication of a refined person and proper upbringing. It should be applied in everyday life in a civilized society. In addition, Respect is esteem of a person, a personal quality and ability to demonstrate it to others through deeds.
Social Networking: Is it going to be Facebook,LinkedIn or Both ? LinkedIn is the number one professional network, whereas, Facebook is presently the largest personal network with over three billion active users worldwide. Each has its unique purpose. Whether you’re a job seeker, consultant, and entrepreneur or happily employed, LinkedIn can be an incredible asset for your career or business. You can connect to over 800 million professionals in over 200 countries around the world. This is a cyber venue where a polished profile with a professional-looking photo and error-free text should be the only acceptable standard. It’s a portrait of you and your brand. It’s also where you will be importing your contacts and growing your network through new connections. In contrast to LinkedIn, Facebook is geared more toward socializing purposes with friends, relatives and acquaintances.
Many companies are also taking serious notice whose idea is to engage with present and prospective clients. It’s equally important that you are prudent and selective with the type of content and photos you place on your page as anyone can come upon it through searches. The message your page conveys will either be positive or unfavorable to your image. Frequent verification and updates on both social networks are recommended. Otherwise, your profiles become stale and unattractive.
Blogging Another powerful marketing tool to consider is a blog. Writing articles for your own blog and for others will earn you consideration as a respected expert in your industry and subject matter, which, taken together, will create more credibility for you and increase your presence on the Internet.
In the Final Analysis Regardless of the business you’re in or message you’re trying to depict to your audience, if you’re going to successfully shape your brand, you need to start by knowing who you genuinely are, then form the image you want to present, and subsequently, behave the part consistently.
Everyone, it seems, has a personal brand, but most people are not aware of this and as a result do not manage it strategically, consistently, and effectively. As your own “brand,” you are the head of “Me Inc.”
How does it feel to be the CEO of your own brand and life?
Product and service pricing is a tricky strategy and depending on what is on offer − most notably a commodity, price increases can be very sensitive to the average consumer. How does a purveyor dance around this dilemma so as not to tick off its customer base? It takes several savvy and diligent tactics.
Pricing strategies
I begin by going over several types of pricing which a business will consider. These include:
Penetration Pricing: The price charged for products and services is set artificially low in order to gain market share. Once this is achieved, the price is increased.
Economy Pricing: This is a no-frills low price. The costs of marketing and promoting a product are kept to a minimum.
Price Skimming: When a higher price is charged because it has a substantial competitive advantage. However, the advantage tends to be unsustainable. The high price attracts new competitors into the market; however, the price inevitably falls due to increased supply.
Psychological Pricing: This approach is used when specific techniques are used to form a subconscious or psychological impact on consumers. The best example is when setting prices lower than a whole number such as 3.99 instead of 4.
Product Line Pricing: Selling a product at or below cost to incentivize customers and drive other sales. For example, a restaurant might offer a low-priced entrée with the purchase of a drink and dessert — both of which have higher profit margins.
Optional Product Pricing: A method applied to increase the amount customers spend once they begin to make a purchase. Optional ‘extras’, when purchased, increase the overall price of the product or service. Examples include computer printers and single pod coffee makers which mostly have a low initial entry price, whereas the cost of the ‘consumables’ or accessories, like printer ink cartridges and coffee pods, respectively, are much more profitable.
Captive Product Pricing: This occurs when an accessory product is necessary to purchase in order to use a core product. Examples of this include products such as razor blades for razors and toner cartridges for printers. This is also known as ‘By-product pricing’.
Promotional Pricing: Pricing to promote a product is a very common application. There are many examples of promotional pricing including approaches such as BOGOF (Buy One Get One Free), money off vouchers, and discounts.
Product Bundle Pricing: Here sellers combine several products in the same package. This also serves to move old stock. It’s a good way of moving old stock and slow-selling products. It’s also another form of promotional pricing.
Value Pricing: This is based on how much the customer perceives a product is worth. The objective is to make consumers believe they are getting the best value at a fair price. This type of pricing works well for ‘basic’ products that don’t have unnecessary details. Dollar stores are thriving due to value-based pricing on items that normally retail for more elsewhere.
Premium Pricing: Use a high price where there is a unique brand. This approach is used where a substantial competitive advantage exists, and the marketer is safe in the knowledge that they can charge a relatively higher price due to craftsmanship, pedigree and/or cache. Such high prices are predominately charged for prestigious and luxurious products and services.
Variable Prices vs. Fixed Prices:Also known as “Dynamic Pricing”, “supply/demand pricing”, or “time-based pricing.” It’s a pricing strategy in which businesses set flexible prices for products or services based on current market demands. Examples of this are hotel and airline pricing according to the time of year/season, happy hours at bars (downtime), and TV/radio commercials cost during peak hours. In 2020, due to the start of Covid-19, “dynamic pricing” made headlines when the prices of everyday goods such as toilet paper and hand sanitizer suddenly increased dramatically ─ though this was a combination of demand vs. supply, as well as exploitation by many resellers.
Geographical Pricing: Geographical pricing sees variations in price in different parts of the world. For example, rarity value, or where shipping costs increase the price. In some countries, there is more tax on certain types of products which makes them expensive, or legislation that limits how many products might be imported again raising the price.
The general pricing strategy to be applied will depend on different factors including product or service costs, demand, the types of buyers/target market, or customer perceived value, and external factors such as competition, the economy, and government regulations. Moreover, the consideration is taken with the current stage of its product life cycle along with its distribution and promotion considerations.
Raising prices prudently
First and foremost, be transparent. If you make the effort to explain to your customers that you have hired extra staff to deliver an improved product, or for any other reason, the customer may consider accepting the increase, otherwise, he or she may simply suspect that you are simply doing so out of greed. How you pitch and position your price increases can determine the success of your business. Equally important, when making changes to your pricing, make certain that your staff have bought into the price increases. By supporting this, it will be able to communicate it effectively to your customers.
Following are some low-key approaches to price increases.
In Consumer-Packaged Goods (CPG): Producers often reduce the product/packaging size rather than raise the price to cut costs. However, this can irritate customers as they feel cheated especially when done discreetly. For environmentalists, the optics of this tactic may be deemed effective if the brand can make a case that reducing product sizing results in reducing waste and under-use.
Create Additional Value: When raising your prices, differentiate from the competition by creating additional value for your clients. For example, if you want to stand out, you should go above and beyond in whatever you are doing so that your customer deems your brand and/or your offering as being superior to that of your competitors. You can add value to a product or service by improving the packaging or the design and adding a storyline. Moreover, refine the total customer & service experience which includes a seamless timely process and/or offer something extra without charge.
Regarding Hourly Pricing for Services: Charge per project rather than by the hour. This will place the clients at ease knowing the total cost is predictable regardless if a project takes a shorter or longer period to complete. It eliminates cost anxiety and lack of control over the actual hours undertaken and lodged by the services provider.
Consider Incremental Price Increases
By applying incremental price increases on a regular basis or on occasion, you will condition clients to expect it. Depending on what you are selling, such as a subscription service, providing adequate notice is the right thing to do. Stating the reason(s) for this imminent outcome is a plus (think transparency). This way, clients can adjust their budgets accordingly. Timing is important as your level of service and customer satisfaction feedback should align with any increase as appropriate justification.
It is said that the human ear reacts to certain sounds which is telling that we’re wired for sound. Sounds, most notably music, trigger emotions, auditory pleasures, memories and associations. For branding, sound is multi-sensory communication and a holistic corporate model which drives perception, creates attention along with a familiar association. It’s also a means of differentiation from the plethora of advertising media.
The auditory effect to enhance brand identity
Whether it’s a memorable Intel or Coca-Cola jingle, a mega artist’s association with a soft drink or lifestyle brand, Harley Davidson’s distinctive and trademarked motorcycle exhaust sound, or Kellogg’s investment in the power of auditory stimulus with its cereal crunching sounds, marketing strategically through proprietary sounds is increasingly becoming a prevalent means of forming a distinctive brand personality. The advent of digital media and devices with built-in audio, such as smart phones, tablets, streaming media or podcasts, increases the opportunities for companies to utilize audio branding in their overall communication strategy and brand experience. Samples of audio identity can be viewed and heard here.
Consider, below, what some brands are doing with sound to entice new clients and retain existing ones: – Automobili Lamborghini developed “The distinct sound of Lamborghini” — a stirring and thunderous video soundtrack and the prelude to a potent new driving experience. – Hip boutique hotels such as Puro Hotel in Mallorca, whose beach bar has been voted one of the world’s 50 best by CNN Travel, surrounds you everywhere with lounge/chill-out genre of music compiled by its in-house DJ ‒ whether you open their website, choose to listen to their on-line steaming player, purchase a CD, relax by the pool sipping a passion fruit mojito or come nightfall, gather around to dance to their house tunes.
Martin Lindstrom, branding expert and author of several books on the subject of ‘neuromarketing’, wrote in his book “Brand Sense” (on “Branding the Sound of Falling Aluminium”), that the Danish luxury audio/video brand, Bang & Olufsen, has raised the bar in the manufacture of corded phones with the Beocom 2 model phone ring tone. He is quoted stating, “By refining this existing sensory touch point, additional brand equity is established, and a new aspect of the Bang & Olufsen brand is raised in the universe of the brand.” Birgitte Rode, CEO of Audio Management adds, “The difference between the BeoCom2 sound and other ringing tones is, that the Bang & Olufsen sound is human, it makes you feel at home, and it´s instantly recognizable.” Producing a desirable ambiance best suited for your target
The late fashion design icon Karl Lagerfield once stated that “Fashion and music are the same, because music express its period too.” Music, effects, volume and vibrations ‒ the tone and the energy of any place can be set with the right music selections. Upbeat music that would be appropriate in the evening may not appeal to morning customers who may yet be fully alert. If you have an Italian-themed bar, you may want to interject some Italian music from artists like Zuccero or Eros Ramazotti. If your theme/branding and ambiance is geared to a very hip, young audience, it will likely suit your customers to include songs with a driving beat from cutting-edge alternative and electronic artists.
Emotionally anchoring a brand to its clients
Designing and implementing custom music and visual strategies emotionally anchor a brand to its clients. A 1982 study published in the Journal of Marketing determined that “it is possible to influence behavior with music.”
In 1934, a company named Muzak, now owned by Mood Media, launched a pioneering idea of low-level instrumental background music which they termed as “stimulus production” which improved worker productivity in offices. This was eventually taken to other areas most, notably retailers, as well as the hospitality domain as a means to enhance the ambiance in and around surrounding areas.
Retail background music which is curated though licensed music/songs, as well as scent marketing, and various stimulating visuals, such as video walls and digital menu board, indirectly captivate and influence clients’ mood to make purchases and improve sales. These help create emotional connections between the retailers and their shoppers.
DJs or Music Stylists, as they are more urbanely referred to, include Felix Cutillo at Sonodea, who compile the playlists to complement the client’s (retailer, hotel etc.) brand identity along with input from their client.
Taking this even further, with live music event sponsorships, brands can enhance their image on their clients which in turn can positively influence their sales ─ as a 2015 study from live event promoter AEG and marketing agency Momentum Worldwide uncovered. “When it comes to connecting with consumers, especially millennials, music is one of the most effective ways. For brands, the opportunity exists within music to create value for their customers and build a lasting relationship unlike any other,” according to Glenn Minerley, Momentum Worldwide’s VP, Group Director – Music and Entertainment.
At the end of the day
A brand’s identity is comprised of visual, auditory and other sensory components that create recognition in the mind of the consumer. The power of music has the ability to seduce the soul, raise the spirit, build social connections, wiggle our bodies to the rhythm, increase purchases, as well as develop, strengthen and recognize brands. Sound branding supports refining brand communication and in designing a better sounding environment.
In some fashion, all business is show business and storytelling. Brand image is all about the experience, perception and differentiation you create in the customers’ mind. Sound branding forms part of the equation and bringing all this into meaningful consideration by applying its multi-sensory approach to attracting and retaining clientele to your brand and business establishment. It is, therefore, essential to consider audio brand management and strategic use of sound in the total branding equation.
“A business that makes nothing but money is a poor business.” – Henry Ford
Every business launched should be infinite and earn a profit ─ unless, of course it is a non-profit organization. Profitability has an impact on whether a company can secure financing from a bank or attract investors to fund its operations and grow its business. Continuous prosperity is earned most notably by tightly controlled financial management, including cash flow/liquidity, a methodical and lean operation, and a policy with emphasis on employee, vendor, as well as on a customer focused environment.
However, many businesses are not earning a decent profit margin or produced one for some time. Those companies are at a stage where they can be profitable anytime, but they prefer to invest money back into the company to keep the growth steady. However, there are also scores of them where they cannot survive without external debt or they are operating at a highly unsustainable business model such as selling merely on price with no unique selling proposition (USP) and instead, paying more attention at how fast they are growing.
How much profit should a business be earning?
A decent margin will vary considerably by industry and size of business, but as a general rule of thumb, a 10% net profit margin is considered average, a 20% margin is considered high, and a 5% margin is low. The industries with the highest average profit margins include:
Large Industries
Software publishing
Pharmaceutical
Database, Storage & Backup
Semiconductor industry
Financial services (non-bank)
Healthcare support services
Small to Mid-size Businesses (SMB/SME)
Accounting services
Lessors of real estate
Legal services
Management companies including consulting
Orthodontic and dental offices
Computer software and hardware technical operations
Industries with low profit margins include airlines, grocery stores and automobile dealers as they are typical examples of low-margin businesses. Capital and labor intensive industries usually have low profit margins, due to massive investments with a low return or a long term return (ROI).
For a complete list of industries and average profit margins click here.
Popular newer companies with high values but no profit
Some notable relatively young companies across the tech and lifestyle sectors such as Airbnb, Uber, Wayfair and Peloton, to name a few, have yet to break even since their inception despite the justification for high valuations which are generally around the future prospect of earnings, among other factors. All highly hyped start-ups had great stories of scale, regardless of whether their stories have yet turned-out as predicted. In fact, many are actually losing millions every year during the first decade (think Amazon). Reasons for not making any profit include, in part, a large investment in sales and marketing, product development, technology and operations. Some are less efficient with scale. Consequently, to make money, they will need to re-engineer their business model and manage costs from running far ahead of revenues.
How to restore your business gains
There are several measures to take to make certain your business thrives, and profits are frequent, as well as attractive.
Your profit margins ought to be in line with your industry or better. Consider offering a premium product which will yield a better profit and reputation. Avoid markdowns as they are profit-killers. In addition, enhance your brand image and increase the perceived value of what you are selling.
Negotiate better pricing agreements with your suppliers to reduce the costs of goods and widen your margins. Negotiate for discounts. You may want to include free shipping or other offers such as receiving extra products for free. This works well when you are purchasing in bulk.
Reduce supply chain costs and inefficiencies. One way to accomplish this is by shipping product in less than a full truckload (LCL) as it is more costly when it is full (FCL). Making several deliveries each week is more expensive than just one.
Streamline your operations and reduce operating expenses. Automate specific tasks in your business such as putting repetitive activities on autopilot. This way, you can reduce the time, manpower, and operating expenses required to run your business. Cut overtime and excess staffing as much as it is feasible and control other expenses by implementing rigid budgets and needless expenses. If the purchase does not contribute to the growth and improvement of the business, it should not be made in the first place.
Avoid over leveraging as this entails having a significant amount of debt in use along with a debt service strain. While debts used to generate revenue can increase revenue and profit over time, excessive debt can inhibit profitability. Keep your debt on the wise and strategic side of things.
As far as many of us know, complacency does not offer any benefits. In fact, it is the enemy of progress and can be the single largest threat to any business. Any rational entrepreneur and business executive who is operating a business, any business, let alone a retail enterprise, should be savvy enough to understand that change is constant. Good times don’t last forever. You would think! Vision, creativity, and an element of innovation are key characteristics of a forward-thinking businessperson. Nothing in the world is static. This applies to business ─ any business. It’s an ongoing process.
What never ceases to amaze me is how at this day and age, you still have retail operators are in denial. They continue to focus on their bricks & mortar stores rather than witness the changes occurring around them in their sector and place additional focus on digital retail. Either stubbornness, short-shortsightedness or both are the culprit.
Legacy retailers embracing online or a hybrid channel
In 2019 more than $3 trillion dollars in global retail was transacted online which mainly comprised both tangible and intangible products including fashion items, airfares & tourism, tech products, books, music, and educational courses. If retailers, even in those sectors, for example, have not yet embraced eCommerce, they may not cease to exist in about 10 years’ time ─ or even sooner! The most successful retailers launched as upstart eCommerce sites rather than legacy bricks & mortar ones who transferred a big chunk of their business transactions online. The former includes Amazon, Wayfair, Zappos and Expedia to name a few prominent ones. Their purchase experience is seamless, their customer experience a delight, and their after sales service unmatched. Plenty of investment and reinvestment of funds in technology has catapulted and kept them in the forefront. The expression, “you snooze, you lose” applies fittingly in this circumstance.
The current role of physical stores
Despite brick and mortar remaining essential to retail, the purpose is evolving into using the stores as a means to attract customers by ways of a “media stage” in terms of experiential marketing, as well as another way to transact sales. Consequently, media is now a cost of sales and rent is now a cost of customer acquisition. This is the new retail business model. The old model relied almost exclusively on advertising to drive consumers to physical stores to purchase goods and/or services. Today, digital media and online sales are the drivers. Customers can purchase online and conveniently, in a timely manner, pick-up their order at one of the closest retail stores. This also saves the customer and retailer shipping costs.
Retailtainment: immersive retail experiences
Retail should be more than just products. It should be experiential, immersive and entertaining. It’s about bringing the products to life around the consumer rather than merely focusing on the features and benefits. With technology these days, it is possible to exploit those possibilities. According to The Freeman Company, 9 in 10 marketers believe that brand experiences provide engagement to that is more compelling for customers. EventTrack reports that 91% of consumers feel more positively towards brands after participating in events and experiences.
Experiential retail, or as it’s now coined as, Retailtainment is a marketing concept introduced by American sociologist George Ritzer in 1999. He defined it as “the use of sound, ambience, emotion and activity to get customers interested in the merchandise and in the mood to buy.” This translates to retail brands providing customers with fun, unique and in-person experiences that elevate shopping to new heights. This desirable retail experience can surely drive more traffic and as a result increase sales.
Examples of retailers who have implemented the Retailtainment concept in their stores include:
STORY at Macy’s
This is a narrative-driven retail experience by the American department store, Macy’s, in partnership with brands like MAC Cosmetics, Crayola, Levi’s Kids and more than 70 other small businesses. STORY initially started as a unique retail store who operated on the idea of renewing its stock according to different themes every few months. Themes like ‘Love’, ‘Remember When’ and ‘Holidays’ acted as guidelines for every new wave of products. After seven years in business, STORY was acquired by Macy’s in 2018 and relaunched as STORY at Macy’s since then.
Estée Lauder’s Power of Night Pop-Up
The upscale cosmetics brand recently hosted their first Power of Night pop-up event at the Visual Arts Centre in Singapore. The focus of the event was on the Estée Lauder Advanced Night Repair Serum, a beauty favorite in Singapore to rejuvenate skin and boost complexion hydration levels. The brand took an interactive approach to educate guests about how modern life affects our skin and what the relation is between sleep and skincare while providing entertainment through a series of recreational activities aligned with the theme.
Uber luxury brand Hermès with Carré Club
The French luxury fashion manufacturer, Hermès, launched the Carré Club much to the entertainment of glamorous Hollywood. The studio space located in Chelsea housed eight of Hermès’s talented crafters where their skills were put on display, allowing visitors a behind-the-scenes peak of the brand’s manufacturing magic. The New York club was only open for a limited period, but this pop-up concept is making its way across major cities like Toronto, Singapore, Los Angeles and Milan. The entire experience of the Carré Club screams exclusivity, treating every guest like a VIP client. The limited installments only add to the charm of temporary luxury.
In the end
Today and moving forward, retail physical stores are meant as a media stage and physical exposure at the “right” locations, whereby customers can make timely and convenient pick-up purchases ordered/purchased online. The stores should also consider designing them with the goal of providing an unconventional experience to its shoppers. The main goal here is not necessarily to sell products, but rather to make the shopping experience immersive and improve the brand image.
A business invests time, resources and money building a brand over the years. Its image and reputation are sensitive matters which should be kept top of mind as they form perceptions on the mind of the consumer. This in turn drives revenues and noteworthy profits. Thus, it goes without saying that a brand is core to a company’s success. Moreover, the leadership behind it should be making methodical decisions to retain the brand’s reputation through diligent decisions and actions. Surprisingly, this is not always the case with some brands ─ primarily the people behind it, the brand custodians, along with their organizational culture.
So, What Gives?
The main reasons why a company may be neglecting its brand image includes:
Bad products or service;
Below average post sale service;
Not delivering on promises or lying and over-hyping the features & benefits offered;
Mixing and associating politics, race, religion, sensitive causes, and rogue individuals;
Overexposure including not carefully vetting the licensees;
Not delivering on a positive and effortless total customer experience;
Lack of employee training, empowerment, motivation and not everyone being on the same page or common goal with customer centricity throughout the organization;
Paying little attention to the noise and discussions made about the company/brand over social media.
Classic Cases of Greed, Over-exposure, and Negligence
Pierre Cardin: When the late 98-year-old fashion designer with the eponymous name passed-away, he left behind a legacy mixed with unique creativity, yet his name was overexposed on hundreds of products, from accessories to home goods. From an icon to a blemished brand whose prestige waned to oblivion. For over seven decades, he designed unique and unconventional clothes which pushed the boundaries of the acceptable. For example, he introduced his “bubble dress,” a short-skirted, bubble-shaped dress made by bias-cutting over a stiffened base. He would experiment with synthetic materials such as vinyl, and Plexiglas among other avant-garde textiles. He also introduced unisex fashion which were indistinguishable between man and woman.
Later, Pierre Cardin developed licensing agreements with several industries which put his brand name on a vast number of consumer goods, including cosmetics, pens, even cigarettes. He once amused that, if given the opportunity, he may even put his name on a roll of toilet paper. As a result of his practice, he eventually cheapened his brand despite the wealth it afforded him. The overall effect of making Pierre Cardin appear on a variety of items was solely to make habitually non-fashionable products appear high-end.
By the mid 1990’s with about 904 licenses globally, his licensing overexposure led to the devaluation of the brand. In 2011, he attempted to sell his business. Despite discussions with several potential investors, he did not succeed in that endeavor.
So why did Pierre Cardin chase money to the detriment of his brand? He answered this question while defending his strategy by stating: “I don’t want to end up like Balenciaga and die without a nickel — then, 20 years after I’m dead, see others make a fortune from my name.“
The moral of the story is that a fashion icon brand which wanted to exploit its reputation and expand beyond its in-house offerings, required a strategy of licensing with a selective and discerning manner.
Donald J. Trump and the family owned Trump Organization: The former US President and once renowned NYC Real Estate developer went from a hyped-up and aspiring luxury lifestyle brand to one presently looked-upon with disdain. He spent four years treating politics, diplomacy, the climate, and the well-being of his people as trivial matters, and in the process, alienated more than half-the country’s voters. The final nail in the coffin was the backlash from the Capital riot that he incited on January 6th, 2021. Timothy O’Brien, Bloomberg opinion columnist and the author of Trump Nation, on MSNBC News declared: “Trump’s brand is associated with violence, insurrection and hatred.” The headline in an Ad Week January 8, 2020 article, states: “Exclusive: Trump’s Name, Once a Brand, Is Now a Banner of Extremism.”
According to several people close to him, winning the Presidency to the WH in 2016 came unexpectedly to Donald J. Trump. He wasn’t quite up to the task for the job, other than the prestige and power bestowed upon him. While moonlighting as President of the US, Trump spent four years destroying two brands: his own and his Republican party’s. Consequently, banks, business partners, his lawyers, and political allies have distanced themselves from the former president. Much of his licensing business, which grew somewhat following the popularity of The Apprentice TV show, has reached a low point since he became president.
Outright Reject Creating Scams and Malfeasance
Moreover, as anyone who maintains an element of morals and ethics in the business world will acknowledge, scams and malfeasance are not a good brand-building strategy. Consider the extinct Trump University: an online education scam, the Trump Foundation: a scam-packed philanthropy, and Trump Network: a multi-level marketing and devious organization.
What Can You Do to Preserve Your Brand Reputation?
Have a viable plan in place to build and preserve your reputation: It is not a onetime event, or a serious of occasional events but rather an ongoing process. Constantly monitor your brand. Be proactive vs. reactive to prevent issues from turning into a crisis.
Develop an online strategy to spot increases in negative conversation before they reach bloggers and online media.
Use social media to clarify customer misunderstandings, reducing overall complaints and building brand fans simultaneously.
Keep an open-door policy and encourage dialogue with your employees to obtain any adverse issues before they get exacerbated.
Apologize to customer complaints in a timely manner.
Be transparent when handling client issues and avoid using pretexts.
Use testimonials as these can help boost any image problems.
Reward loyal customers and supporters by making them feel appreciated.
Do not associate your brand with any rogue partners. Choose the charities, sponsorships and cause marketing affiliations carefully.
Finally, avoid being entangled with religion, politics or any other sensitive subject and institutions.
Complacency and insensitivity in your business should, by all means, be avoided let alone developing and retaining a stellar brand reputation.
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Unconventional Business Wisdom for the refined entrepreneurial mindset - by James D. Roumeliotis 