Category Archives: Marketing

Filed under Artificial scarcity, brand equity, brand image, brand management, brand positioning, Branding, branding not products, branding strategy, lifestyle branding, lifestyle marketing, luxury branding, Marketing, marketing strategy, niche marketing, strategic marketing

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June 2, 2023 · 4:04 pm

Business Newsflash: A fine product or service will only succeed with clever branding and marketing

James D. Roumeliotis

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.

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October 3, 2022 · 9:51 am

Exploiting The Benefits Of Niche Marketing: Strategic Marketing

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.

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March 1, 2022 · 6:33 pm

The Master Salesmen of Self-Help: Pitching Vague Concepts, Which Can’t be Measured, by Means of Savvy Messages and Emotional Tactics

In a Mad Men episode (Season 5, Episode 12: “Commissions and Fees”) actor Don 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.
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Tagged as business success, customer engagement, hype marketing, hype sales, motivational speakers, personal branding, self branding, self-help industry

October 1, 2021 · 2:58 pm

How to Raise Prices Without Turning Away Customers: Savvy and Diligent Tactics to Consider

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.

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November 2, 2020 · 11:32 pm

Diffusion of Innovation: Getting past the first wave of innovators and early adopters to reach the tipping point

By James Roumeliotis

Diffusion of Innovation is a theory which explains how, why, and at what rate new ideas, including technology, spread. The concept was conceived by Everett Rogers, a professor of communication studies, which also inspired his book “Diffusion of Innovations” first published in 1962. It is considered one of the oldest theories in social science. Professor Rogers popularized the use of this premise with the intention of explaining how over time an idea or product gains momentum and grows in use and popularity among a specific population. Consequently, Diffusion is the process by which an Innovation is communicated through certain channels over time among the members of a social system.

What is it?

Diffusion research examines how ideas are spread among groups of people and focuses on the conditions that increase or decrease the prospect that a new idea, an innovation, product or practice, will be embraced by a certain population or society. This concept ought to be taken in consideration when launching a new product if it is to succeed because no matter how good and innovative a new product is, it is very likely that a few people will adopt it just because it is new or novel. The initial trend of those who adopt the change or innovation are called the “Innovators.” They represent about 2.5% of the population.

The next level and surge of people represents about 13% who will adopt an innovation, and these are referred to as the “Early Adopters.” Beyond these first two waves is the next portion of the population who represent the tipping point for a system. The tipping point is the moment of truth, the breaking point, and highlight. These are not the easy ones, as the law of diffusion of innovation tells us that you have to comprise between 15% and 18% of a population to accept an idea before you hit the important tipping point. That said, you must get past the first wave of Innovators and Early Adopters so as to accomplish the tipping point. Within the organization, according to Simon Sinek, author of five books, including ‘Start With Why’ and ‘The Infinite Game’: “If you are trying to get employees to embrace a new direction or innovation, it is even more crucial to engage people in the why of the initiative and not just the how.

Why is this beneficial?

The Diffusion of Innovation theory benefits marketers by helping them understand how trends occur. Moreover, it benefits companies in assessing the likelihood of success or failure of their new product or service.

How is it applied?

For starters, it is essential to determine where the majority of the target audience falls as this will indicate their key motivators. Those insights will help determine how the product is marketed toward them.

1. Innovators: Innovators are a minor group of people that constantly explore new ideas including technology products. These are the people who are influential and responsible for the creation of products that will then go through diffusion of adoption.

2. Early Adopters: Early adopters are considered as opinion leaders or influencers. They are open minded to change, and often share positive testimonials and feedback about innovations that have left them satisfied, as well as feedback regarding how new products could be improved.

3. Early Majority: People that fall in the early majority category of adoption are basically followers of the early adopters. They take the opinions of the early adopters seriously. As a result, they are likely to perform behaviors such as reading reviews prior to purchasing a product.

4. Late Majority: People in the late majority category of adoption are the skeptical ones who are not very familiar or comfortable with change. Quite often, those in this late majority category will only accept new products or innovations when they begin to feel pressure from those around them making them feel as if they would be left behind if they do not embrace the new products or innovations.

5. Laggards: They are the most conservative of the bunch. They only embrace new products or innovations when there is no alternative to doing so and often are persuaded to accept by facts found through their own research and reading reviews. Another common motivator for this group is the pressure felt by the other adopter groups.

If you are launching a new product, such as software, you can use the Diffusion of Innovation concept to help you identify the most ideal marketing strategy and approach for each group/category. Although the Adoption theory is beneficial when looking at new product launches, it can be equally useful when launching existing products or services into a new market.

The following is an example of how this concept can be applied to digital marketing strategies (credit: smartinsights.com)

Launching new software to the different groups.

Innovator: Show the software on key software sites such as Techcrunch, or Mashable. Providing marketing material on the website, with relevant information and lead to potential sales with downloads.
Early Adopter: Create guides and add to the major software sites, providing marketing material such as case studies, Guides and FAQs.
Early Majority: Blogger outreach with guest blog posts and provide links to social media pages, key facts and figures, and ‘how to’ YouTube videos.
Late Majority: Encourage reviews, comparisons and share press commentary on your website. Provide a press section and social proof with information and links to reviews, testimonials, third party review sites etc
Laggards: It’s probably not worth trying to appeal to this group!

The take-away

The diffusion of innovation is important to marketers and innovators because it considers adoption in context of a larger social system. The first two groups on the diagram (the “Innovators” and the “Early Adopters”) are the only ones willing to accept the risk of purchasing a product first, whereas, the other/subsequent groups are willing to wait and have others they trust try it first prior to making a purchase commitment themselves.

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Sources: Rogers, E.M. (1976). New Product Adoption and Diffusion. Journal of Consumer Research. (March). p290-301.

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May 3, 2020 · 6:27 pm

Why do Rolex Watches Retain Their Value? Quality, Savvy Marketing and Cachet are the Core Motives

The renowned Rolex brand is a precision Swiss manufacturer of prestigious wristwatches or “timepieces” (for a lack of a better word in the category) which possesses pedigree along with a stellar reputation. It was registered as a trademark in 1908 and as a company in 1915. It is a privately held and independently run entity, as well as considered the single largest luxury watch brand in the world.

The brand is responsible for many innovations in the watch industry including the first self-winding watch, the first waterproof case, the first watch with a date on the dial, the first watch to show two time zones at the same time and the first brand to earn the chronometer certification for a wristwatch.

Rolex watches rarely lose their price value because it is one of the very few watch brands which has mastered five vital fundamentals as follows:

1) Superior Craftsmanship and Materials: Rolex makes virtually everything in-house as a totally vertically integrated manufacturer. The watchmaker is first rate in metallurgy and manages to produce incredibly accurate and reliable time pieces. For a Rolex watch to work seamlessly and maintain its beauty, even in the harshest environments, it uses Oystersteel, a steel alloy specific to the brand and belongs to the 904L steel family. It is particularly resistant to corrosion and acquires an exceptional sheen when polished. Rolex watches are also hand-made which is expected from a fine Swiss made watch. The movements and bracelets are assembled by hand, whereas a precision and high-tech proprietary machine or robot helps with doing things such as applying the right pressure when attaching pins, pressing down hands and aligning the parts. Moreover, all Rolex Oyster case watches are thoroughly tested for water resistance. This is performed with an air-pressure tank.

2) Artificial Scarcity: They are intentionally producing below the critical mass of watches that they can put into circulation. Going over would flood the market, but Rolex somehow manages to stay under that point by limiting its annual production output. This retains a lower supply and creates over-demand thus keeping prices above a certain level.

3) Perceived Value: Perceived value is the price that consumers are willing to pay for a product. In this area, Rolex manages to get their perceived value right in contrast to the actual value. Quite often the pre-owned or second hand price will indicate what consumers are willing to pay for the product, as opposed to the price that the manufacturer had initially decided to set.

4) Savvy Marketing: Rolex promotes itself predominantly high-end luxury brand that is the ultimate aspiration of the consumer…a fashionable alternative to using a cell phone to tell time and a status symbol. The brand has consistently sold to an upper class target market that consists of mainly men over the age of 35. The Rolex marketing approach has a subtle touch. Its clever marketing and PR tactics, along with its choice of sponsorships, portray a brand which represents sports, success and elitism. The brand’s iconic gold crown is prominent on scoreboards, banners, and timing clocks at high-profile sporting events around the world including golf, motor racing, tennis, yachting regattas and equestrian sports.

5) Structured After Sales Service: Rolex provides repairs on most of the products that they have released throughout the company’s history. This task is bestowed to a Rolex boutique or authorized service center throughout the globe. It has generated some controversy in the watch and jewelry domain because like the other prominent prestigious watchmakers, the brand has gradually limited access of spare parts to independent repairers.

Therefore, in summary, with superior quality workmanship, the scarcity factor, ideal perceived value and savvy marketing, Rolex is one of the few watchmaking brands to have created a great value proposition and sought-after status. Not surprisingly, it is also well regarded and the most widely accepted premium watch brand, in terms of resale value and demand, at pawn shops and any other preowned watch retailer.

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January 2, 2020 · 11:28 am

This Blog’s Top 10 Most Read Articles of 2019

Top 10 - image

Once again, the ten most read/popular articles have been rounded-up — this time for 2019.

Thank you for your readership and much success to you this year.

Much success this year and beyond.

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Tagged as branding strategy, entrepreneurship, luxury business, marketing

April 7, 2019 · 7:08 pm

Sex and Sensuality in Advertising: Why it is effective and how to refine it

Gucci Guilty Sexy Ad

Does sex really sell? It seems to sell but commercially, not morally. Sex in the media has been around as long as media itself ‒ though these days at more extreme levels (from subtle to overt).

They’re not quite selling a product but rather an expression of desire – a lifestyle that can be envisioned with the product or service. It attracts the male audience much more than the female as women are objects of sensual desire for men. It’s no wonder that most sultry ads portray bodacious females.

Marketing and branding via sultry imagery and insinuation

Sex is a primitive instinct which qualifies it as an attention-grabbing technique in the media domain. It’s no wonder a weapon of choice for marketers. Sex also transcends product categories ‒ whether it’s a consumer product such as Axe antiperspirant, a recreational pharmaceutical drug like Viagra or an exotic sports car.

Sexually explicit ads can be controversial and some offensive. They are also subject to socio-cultural climate. As long as they don’t get carried away to borderline pornography, but rather refined, preferably subliminal and certainly not violent or masochistic, the sultry ads can be considered playful and memorable. Their original intent is to create an emotional effect on the viewer. This way, the viewer develops a closer bond with the brand and consequently, stronger recognition. Some ads intentionally incorporate a humorous element which generates further interest for its intended audience.

Fragrance ads by some fashion designers are intentionally created to sell a sultry elixir in a bottle. To succeed and spark emotional purchase desire, its creators have raised the stakes by provoking the visual (as well as the olfactory) senses and causing the consumer to believe that he or she will feel erogenous and desirable with those he or she cares to attract. However, there are few controversial ads which have been banned as they seemingly pushed pop-culture buttons a notch too far.

The benefits of sex in advertising

Businesses have found that sexy ads are a great method for “word-of-mouth” and viral publicity. Their attention grabbing messages have the ability to cut through the clutter of ads and command considerably more views. The intended viewers, however, are mesmerized even as they are absorbing the ad’s underlying subliminal messages.

A case in point: In 2000, Heineken launched the “It’s All About the Beer” campaign. One spot, called “The Premature Pour,” shows an attractive and alluring woman pouring Heineken into a glass. As a result, a guy across the bar reacts by pouring his own beer but nervously pours it too quickly and spills foam all over the table, as well as on himself. The sexual content is tacit, yet blunt. The insinuation in this, and other spots in the campaign, yielded a successful outcome causing sales to rise 13% in the first two quarters following their airing.

Popular men’s magazines like Maxim have experimented often with their covers. By placing a spicy, semi-naked woman on the cover, male readership spikes and outstrips an image of any popular male star whom men can readily relate to.

At Montreal’s renowned steakhouse, Queue de Cheval (French for “horse’s tail”), its eccentric owner, Peter Morentzos ‒ who is known for pushing conventional advertising boundaries, came-up with the idea to host a “Food Porn” event for a charity event. The sold-out $250 per person event featured young hard-body waitresses in skimpy outfits along with shrimps hanging on them which resembled human trays. To promote it, he used the photo of a naked woman’s torso deemed too racy for print in the culinary magazine Gourmet.

What sexually overt ads should avoid

For sexually explicit ads to be effective, they should be created in good taste with respect to the following:

Provide a meaningful message through the images;
Avoid over-reliance on sex due to saturation as it may lose its intended impact;
Should not depict violence, aggression and/or masochism;
Shouldn’t be doing it with just any product merely to grab attention but with some relevance utilizing sexual ideas only.

If a brand is willing to risk taking a controversial position to gain attention amongst the crowded product landscape, it should not be excessively overt. It ought to target the brand’s specific market along with not offending its fans and best customers.

Marketers at times tend to step out of line ‒ though, today many consumers happen to be savvy and realize when they’re being manipulated by various media messages. The products touted in the ads may contain sensuous interplay but if they don’t stand-up to their promises and hype, those brands will disappoint and won’t be able to hold onto the customers for long. At the end of the day, the truth in advertising signifies the “trust” factor which is inherently crucial in attracting and retaining clients.

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Request your TWO FREE chapters of this popular book with no obligation.

1] The Art of Selling Luxury Products: Brand Story Telling & Persuasion

Filed under 1, Branding, Business, lifestyle marketing, Marketing, marketing strategy, perfume marketing, Sexy branding, sexy marketing

Tagged as lifestyle branding, sensuous marketing, Sexy branding

January 1, 2019 · 8:35 pm

This Blog’s Top 10 Most Read Articles of 2018

The ten most read/popular articles in this blog have been rounded-up — this time for 2018.

Thank you for your readership and much success to you this year.

Top 10 - image

2] Exceeding the Hotel Guest Experience: Anticipating and Executing Desires Flawlessly

3] Luxury vs. Premium vs. Fashion: Clarifying the Disparity

4] Mass Customization & Personalization: The Pinnacle of Differentiation and Brand Loyalty

5] The Luxury Brand Ranking and Consumer Accessibility Pyramid: What It Takes to Move Up

6] Sex and Sensuality in Advertising: Why it is effective and how to refine it

7] Genuine Luxury vs Accessible Luxury: Two Distinct Yet Opposing Categories

8] Start-up Essentials: A Universal Roadmap for Starting a Business — Infographic

9] Brand Awareness: the influence in consumers’ purchasing decisions

10] Perceived Quality: Why Brands Are Intangible

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Request your TWO FREE chapters of this popular book with no obligation.

Filed under 1, Branding, Business, Luxury, Marketing

August 4, 2018 · 7:06 pm

The Formidable Company: How to make your business highly competitive

Going against your competition — especially a large and established one is not a wise approach. Being nimble, positioning your product to a new and uncontested target market, and offering a delightful experience (rather than focusing on price alone) are the tactics to apply in avoiding competition.

Kindly click the image for the details.

How to Beat the Competition Presentation Image

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Filed under 1, blue ocean strategy, Business, competition, Marketing, marketing strategy

Tagged as competition, marketing

May 2, 2018 · 7:06 pm

Ambiance Marketing: A multi-sensory approach to attracting and retaining clientele

The dictionary conveys to us that “ambiance” is “the character and feeling of a place.“ A place which wants to attract the most discerning souls, should be unique and embody a complete lifestyle concept which combines a relaxed, spiritual ambiance amongst an elegant setting and decor with attention to detail. Staging an impressive, well executed upscale event, such as a product launch or promotion takes creativity, organizational skills, as well as savoir faire.

Pleasing hors d’oeuvres and drinks prepared and presented with pizzazz are complemented by soothing music which is also an integral part of the ambiance and ranges from classic music to smooth jazz or chill-out rhythms. The attractive, smiling and well mannered staff is dressed stylishly.

All of these elements combined will, undoubtedly, seduce the senses and generate good vibes along with positive memories created. This principle applies equally well to business establishments and brands and includes boutique hotels, restaurants & bars, fashion boutiques and other upscale business establishments. In marketing, a multi-sensory approach is proven to increase sales.

To be effective, the use of an integrated approach is essential across various touch points with the purpose of engaging customers.

Today, consumer purchase decisions are increasingly driven by consumers’ hearts. With ambiance marketing, a custom designed attractive setting – yet alluring with captivating style, invites customers to truly feel the brand experience by adding character. This is accomplished by connecting the emotions to a product or service, and infusing it with a tangible and intangible essence that remain in the customers’ minds.

The ambiance you create is one of your best marketing tools. The aesthetic appeal to human senses, the feel of your business and the brand you create is your image. Along with great service, it is one of the most important reasons customers will choose you over the competition.

What should you consider when developing ambiance?

In keeping with the spirit of our five senses, you can exploit them entirely to create a favorable experience in synergy, for guests and clients alike. Below are some of the most important factors:

SIGHT – choice of lighting, décor, colors and an ergonomic layout. You can get a real sense of movement using these elements. Lighting is also very helpful when it comes to the overall event and low intensity lighting such as dimmed soft halogen or LED lights along with the presence of lit candles create a stress free atmosphere. In addition to your building materials and lighting, the art you choose to put on your walls will make a huge impact on overall ambiance. Local art, modern art, renaissance art or a hodgepodge of all of them will help convey the ambiance you are trying to define.

LISTEN – music, effects, volume and vibrations. The tone and the energy of the room can be set with the right music selections. Think about using a “signature” sound effect to draw attention to different happenings throughout establishment or event. Upbeat music that would be appropriate in the evening may not appeal to your morning customers who have just gotten out of bed. 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.

TOUCH – textures and comfort. This is all about how your guests and/or clients interact with the environment. Plenty of emphasis should be placed on this when designing the layout. It should be ergonomic. The more comfortable the space, the longer guests/clients will linger in any given area. The materials you use to build out your operation will be a major component of the ambiance of your business and the choices are many. Countertops can be granite, frosted glass, laminate or of exotic wood. Floors can range from acid-etched concrete to terrazzo to granite. The use of wood can evoke a feeling of warmth. Exposed pipes and air ducts can give your business an industrial feel. Draperies can dampen sound and add texture.

TASTE – finding the perfect balance between sour, salty, sweet, and bitter during menu designs and beverage selections with the intention of pleasing most taste buds. Presentation is equally important which has an impact on the overall image of the setting.

SMELL – it is all about fragrance which aids in creating emotion. This sense is usually neglected yet of all our senses, the sense of smell is closely linked to emotion and memory. You can use something as simple as burning incense or candles to something far more complex like computer controlled scent machines to enhance your environment. This could just be the icing on the cake, sort of speak, in complementing the overall mood. If it is a French bakery café style of operation, the smell of roasted coffee and baked items sold will induce clients to make and increase their purchases.

A case in point in terms of a successful establishment, which implemented the above principles spot on, is a popular upscale “member’s only” bar in Dallas, Texas called “Candleroom”. It did not become renowned simply by accident. This has been accomplished by developing and executing the perfect atmosphere for young professionals seeking to socialize in a dramatic and spacious setting – a progressive urban lounge modern in design and decorated with bold, sensuous colors. The ultra swanky décor with its velvet, leather and fine furniture are lit by candles and dimmed chandeliers. DJs spin house, rock, hip-hop and dance for those that are interested in a little more of a dance club setting, while the attractive staff working behind the bars mix exotic drinks for the patrons. As a result, it is considered by many discerning clubbers to be one of the most handsome drinking destinations in Dallas.

Focus groups: Uncovering your customers’ specific desires for your success

As companies grow larger, they commonly hire a market research firm to determine what their customers like, dislike and what additional products or services they desire. This is often uncovered through the use of focus groups.

There is no reason you cannot poll customers in your area in the same way large multinational companies do with great success. Focus groups can be helpful if you are already open or just beginning to plan your business. Rather than simply assuming, it is in your best interest to know if you are giving your customers the products, services and ambiance they desire. Feedback is important, hence you need to find out what your customer’s needs are and fulfill as many of them as possible. After you analyze the information you have received from your focus group, try to incorporate the best and most workable ideas into a motif that will define your business and create the ideal ambiance to attract and keep your customers.

On a side note: Branded CD compilation

Designing and implementing custom music and visual strategies that emotionally anchor a brand to its clients, should be considered. The goal of branded CDs is to turn your listeners into disciples of your brand. Every aspect of your custom CD says something about your brand, therefore, custom CD’s place equal importance on print, media, and visual elements in addition to the music. Specialty music compilation companies such as Sonodea and Custom CD Corporation oversee all logistics related to custom branded CD music compilation and development. They work closely with clients on everything from the music themes to the packaging to the visual content. This ensures that the music, look and feel of the CD resonate with their customers’ clientele and target demographic.

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. Ambiance marketing takes all this into meaningful consideration by applying its multi-sensory approach to attracting and retaining clientele to your brand and business establishment.

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1] The Art of Selling Luxury Products: Brand Story Telling & Persuasion

Filed under 1, ambiance marketing, auditory branding, brand positioning, Branding, Business, customer experience, Marketing, retail luxury interior design, sensuous brand, sensuous brands, sensuous products, sound branding, sound marketing

Tagged as ambiance marketing, restaurant ambiance, retail ambiance, sensory marketing, sensuous brands

January 7, 2018 · 12:09 am

This Blog’s Top 10 Most Read Articles of 2017

The ten most read/popular articles in this blog have been rounded-up — this time for 2017.

Thank you for your readership and much success to you this year.

2] Luxury vs. Premium vs. Fashion: Clarifying the Disparity

3] Exceeding the Hotel Guest Experience: Anticipating and Executing Desires Flawlessly

4] Mass Customization & Personalization: The Pinnacle of Differentiation and Brand Loyalty

5] Perceived Quality: Why Brands Are Intangible

6] Brand Awareness: the influence in consumers’ purchasing decisions

7] Exploring the Luxury British Automotive Total Customer Experience: Part 2 ‒ Jaguar Cars

8] Start-up Essentials: A Universal Roadmap for Starting a Business — Infographic

9] Genuine Luxury vs Accessible Luxury: Two Distinct Yet Opposing Categories

10] Sex and Sensuality in Advertising: Why it is effective and how to refine it

_______________________________________________

Request your TWO FREE chapters of this popular book with no obligation.

Filed under 1, Branding, Business, Luxury, Marketing

November 4, 2017 · 12:53 am

The Sensuous Brand: How to create allure with products and user experience

by James D. Roumeliotis

Why are visually appealing products rare which make purchasing it a delight and worth talking about? Common sense dictates that product design should be attractive – perhaps possess sex appeal if the brand behind its product(s) seeks to make a sales impact. Although beauty is subjective, there are common standards of attractive packaging, which are smart and demonstrate the intrinsic value of the product’s attributes.

However, many will agree that smart design looks timeless, expresses character and is visually seductive.

Barring lingerie labels such Victoria’s Secret or Agent Provocateur – which in and of themselves will ooze with sexiness, most other brands and their products from non-seductive sectors can still create and possess a sense of styling along with desire.

A brand that caters to all the senses, begins with an appealing brand identity, followed by creative industrial design of its products – which are complemented with a positive customer experience in every touch point.

Artfully articulating what your brand and offering represent

Adding personality to objects and human interaction are quintessential to customer envy and desire.

There are brands that design and churn sensuous looking products. However, there is one that most will agree is top of mind for the refined consumer electronics market –- Apple. It’s all about the appealing logo, the attractively designed and “feel good” products, the alluring packaging, the intriguing ads, and the overall positive customer experience at their retail level, Needless to say, it’s a contemporary brand that undoubtedly gets it. It’s no wonder it created a strong following, or as marketing maven Seth Godin would describe as a “tribe.”

When consumers are delighted by a particular brand experience, they begin to bond emotionally with the brand. They become brand loyalists and advocates – buying into the brand repeatedly and recommending it to others. This behavior serves to build the brand’s image and reputation.

Product design is key to a great brand. Design is the elemental differentiator with competitors. Allure builds the emotional bond and turns owners into enthusiasts.

“It’s all about integrating design and brand,” says Joe Doucet, founder of Joe Doucet Studio.

“We need to cease thinking of them as different disciplines. The essence of the Apple brand comes through its design. Take the logo off a BMW and you still know it’s a BMW.”

Design also needs to be part of the strategic plan from the start, embraced by the CEO and across the Board.

“A brand is not your logo or ID system,” says Robert Brunner, founder of the design shop Ammunition and author of ‘Do You Matter: How Great Design Will Make People Love Your Company.’

“It’s a gut feeling people have about you. When two or more people have the same feeling, you have a brand. You get that feeling via smart design, which creates the experiences people have with the brand. Everything you do creates the brand experience; ergo design is your brand.”

The holistic approach to customer attraction and retention

Consumers today are more brand conscience, yet there are companies which continue to spend money advertising and selling product rather than brand. They place emphasis on price and quality as differentiators despite these two being overused by many copycats. Successful brands take a holistic approach to selling by exploiting the 5 senses which now constitute the brand. This is accomplished by what I regard as “ambiance marketing” and “sensory/sensorial branding”, through a captivating designed setting, yet alluring. This adds character and invites clients to truly feel the brand experience.

To put the aforementioned into perspective, consider the following:

Visual – lighting, décor, colors, layout…you can get a real sense of movement using these elements.
Auditory – music, effects, volume, vibrations…you set the tone and the energy of the room with your sonic selections.
Tactile – textures, comfort, climate…this is all about how your guests interact with the environment. This is a big thing to consider when you are designing the layout.
Olfactory – fragrance, emotion, ambiance…this sense is under-rated and powerful. Of all our senses, the sense of smell is most closely linked to emotion and memory. You can use something as simple as burning incense or candles to something far more complex like computer controlled scent machines to enhance your environment. This could just be the extra touch needed to set the mood.
Gustative – with food establishments, the challenge is in finding the perfect balance between sour, salty, sweet, and bitter during menu designs and beverage selections. The presentation also makes an impact on the overall image.

Creativity, quality, storytelling and above all, customer experience

Standard products and mundane user experiences don’t offer compelling reasons for consumers to do business with certain brands. If a business can’t articulate its USP (unique selling proposition) ‒ as to why anyone should do business with your brand, your product and/or service merely becomes a “commodity” whose price will be the sole determinant in any transaction. Being formidable and considered top of mind in your B2C sector requires a philosophy – a certain culture which will develop a following by consumers who share your values.

Quality materials, assembly and final product look increase a company’s competitiveness. The quality of a product may be defined as “its ability to fulfil the customer’s needs and expectations”. If the characteristics and specifications of a brand’s product line are equal or superior to its competitors, along with a fair price-value equation, the brand will turn out to be a preferred choice.

Storytelling, on the other hand, builds relationships by the stories that are well told. Stories add personality and authenticity to products which customers can better relate to and feel affinity with. Luxury brands tend to boast their pedigree since their discerning clientele desire a deeper level of involvement and understanding of the history and heritage of the brand when it comes to their luxury purchase. This is referred to as “experiential luxury.”

It is essential that the sales professional be product proficient and adept at assisting and guiding the client to the purchase making use of flattery, romance and showmanship. To illustrate, when selling a niche automobile such as a Porsche, the sales consultant can talk about racetracks, describe road-holding capabilities, 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.

When consumers are delighted by a particular brand experience, they begin to bond emotionally with it. They become brand loyalists and advocates – purchasing the brand more often and recommending it to others. This behavior serves to build the brand’s reputation.

Be first, different & daring – above all, visually stimulating

Plan and execute flawlessly the following to differentiate and develop into, as well as remain an enviable brand through artistic design and function:

– The brand logo and company presentations should possess flair, consistency and be memorable;

– Focus on a specific target audience/niche market rather than divert to several markets or the general population;

– Innovative and “feel good” product design (both visually and tactile): Get inspired by designs from Philippe Starck, Pininfarina, Porsche Design and Bang & Olufsen. Architecture by Frank Gehry and Zaha Hadid Automobile design trends by Audi, Tesla, and in the last few years, Hyundai with its entire model makeup. Kohler Group doesn’t simply design functional bathroom and kitchen sinks and faucets, but rather bold designs and technology to an otherwise lackluster plumbing product sector.

Perhaps product customization and personalization should be available as an additional offering.

– As for service related domains, place emphasis on employee attitude/personality, empowerment, constant training, effortless accessibility for your clients, flexibility when solving issues and presentations with style, as well as finesse. Each and every customer should be treated with personal care – a sign of individuality;

– The Total Customer Experience: Be easy to do business with – accessible – at every stage of a transaction from initial contact/pre-sale, during the sale and post-sale (follow-through and customer service). Zappos, Nordstrom, Ritz-Carlton Hotels and American Express (to name some of the finest examples) are renowned for their obsession with customer service and total customer experience;

– Soothing sounds and striking visuals: Consider sound branding complimented with refined standout visuals (audio, images and video). Surround your brand and its products/services with fashion, beauty, design and attractive models – without any marks of tackiness;

– Packaging design should be visually appealing, distinctive, tastefully decorated, and equally inviting to open.

– Sponsor, collaborate and/or associate with a fashion related brand and/or the arts. Both brands can benefit from combined exposure (PR and advertising). Luxury goods brands such as Versace, Bulgari and Fendi are teaming up with property developers to offer upscale designer hotels. Their trademark at hotel properties, in a select number of affluent cities worldwide, offers their loyal clients something new to get excited about. It’s a collaboration which celebrates a shared fondness in design and luxury experiences.

– Create and own a captivating name and category for your product or product line. Luxottica, is the world’s largest eyewear company, controlling over 80% of the world’s major eyewear brands (eye glasses and prescription frames) including Ray-Ban and Oakley sunglasses, along with Chanel, Prada and many other designer labels. It re-invented eyewear which were once considered a “medical device” and developed them into a fashion statement. They no longer label their products as “glasses” but as “eyewear” and “face jewellery” (for a lack of a better term/descriptive);

– Marketing collateral and ads should be: (i) slick, (ii) minimalistic, (iii) emotional, (iv) portray a lifestyle, and (v) apply the “less is more” mantra. Arouse curiosity. Effective marketing campaigns should also include elements of: Imagination, Mystery and Memory;

– Be a visionary and innovate – anticipate what your sector will look like in 3-5 years and begin to plant the seeds/strategize in a timely manner. Avoid complacency. Blackberry is an excellent case study exemplifying what they should have done a few years ago to remain relevant amongst iPhone and the Android platform smartphones.

Lessons from luxury brands: creating a lifestyle brand through emotional attachment

Brand loyalty is about building an emotional, and in some cases, irrational, attachment in a product. The most ideal example is when thousands of people line-up, regardless of weather conditions, to get their hands on the latest iPhone or iPad. This happens because Apple has built an emotional attachment to their products by creating a lifestyle choice rather than a product purchase.

It’s about how it makes you feel. Same goes for baby boomers, whether accountants or attorneys or business executives who purchase a Harley Davidson motorcycle and ride them for about four or five hours every Sunday afternoon. The bike makes them feel like a rebel – sort of an escape.

A brand that is designed for a lifestyle should have a much higher emotional value to consumers than one based on features like cost or benefits alone. The goal of a lifestyle brand is to become a way that people can utilize it to relate to one another. Those brands are an attempt to sell an identity, or an image, rather than a product and what it actually does.

Lifestyle brands have gained an increased share of the luxury market including prominent brands such as BMW (ultimate driving experience), W Hotels (avant garde designer hotels for a younger audience, along with whatever you want, whenever you want it, as long as it’s not illegal), Louis Vuitton (prestige and opulence), Rolex (representing the pinnacle of achievement; fulfilling and perfection in one’s life) and Aston Martin (power, beauty, soul and heritage). Those brands have given way to consumers to buy their products that they associate with a “luxurious life.” They are essentially a status symbol. Abercrombie & Fitch had once experimented by creating a lifestyle based on a preppy, young Ivy League lifestyle. Their retail stores evoked this lifestyle through an upscale environment, physically attractive models, along with spicy ads featuring young people living the A&F lifestyle.

Hermes gets it right with its sensuous ad campaigns

The final take: Elegant & intelligent design

Beauty and design in all things is artistic, engaging, stimulating and creates a sense of comfort. It’s also a very personal thing. Creativity is beauty in art form. It starts from nothing, utilizes mind exploitation, imagination then something awe inspiring is produced which stimulates the mind and senses. The approach to creativity is the way an artist might stand before a new canvas, on which a beautiful painting can be crafted. Staff who work in a creative environment should be given plenty of leeway to utilize their full potential – the freedom to flourish. Not doing so limits their artistic talent and deprives the company from taking a leap at the competition. Apple has successfully unleashed the talent from their product engineers by creating a non-stifling work environment. As for architects and industrial designers, they should definitely possess the talent and imagination to create and turn extraordinary drawings into reality.

Brand loyalty is about building an emotional, and in some cases, irrational, attachment in a product. When Apple releases a new consumer electronic device, people line-up, regardless of weather conditions, to get their hands on the latest iPhone or iPad. This is a result of Apple constantly building an emotional attachment to its products by managing the total user experience.

“Total customer experience” is not an option but rather compulsory as part of an alluring brand. It takes savvy planning, execution and perpetual refinements to stand above the crowd. It’s how you get noticed and remain relevant. Luxury brand desirability is driven by standout design, craftsmanship, as well as what is felt.

It takes vision, creativity and intuition, along with unflagging discipline and a sense of style, to keep a consumer focused company relevant and its products on everyone’s must-have lists. No brand should be complacent.

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Filed under 1, brand positioning, Branding, branding not products, brands with sex appeal, Business, Marketing, sensuous brand, sensuous brands, sensuous products

Tagged as sensuous brand, Sexy branding, slick branding

August 2, 2017 · 2:24 pm

The Luxury Brand Ranking and Consumer Accessibility Pyramid: What It Takes to Move Up

Commentary by James D. Roumeliotis with pyramid created by Erwan Rambourg

Few brands can really claim the trademark of luxury. It is those which combine allure with pedigree and quality attributes. Discounting is not part of their strategy and their entire raison d’être is geared to the Ultra High Net Worth (UHNW). Many of their products actually increase in value over time since they are either discontinued, necessitate a long waiting list/time and are most desirable (supply/demand). Many also offer bespoke products and services since their type of discreet clientele prefer personalization and/or one of a kind. Brands that become too accessible are less appealing to such well-heeled buyers.

Erwan Rambourg, an HSBC managing director and author of the book, “The Bling Dynasty: Why the Reign of Chinese Luxury Shoppers Has Only Just Begun” created a luxury brand pyramid which depicts how major brands range in accessibility from the lower end with “accessible luxury”, such as spirits, a fine steak and perfume, to ultra-high-end luxury like rare diamonds. This is the luxury influence level ranking pyramid:

Getting On Top of the Pyramid

Luxury purveyors who aspire to cater to the top tier of spenders should have a mission, vision and a sound implementation strategy to reach this elite demographic target ‒ short of simultaneously pursuing the aspirational consumers who are prone to cutting back when the economy takes a dive. This latter group of consumers dilutes the cachet of the brand and can turn out less profitable in the long run. Moreover, the High Net Worth Individuals or HNWI and Ultra High Net Worth Individuals or UHNWI frown upon offerings which are accessible to the mainstream as they desire status and exclusivity.

Products and services should be unique, well designed and packaged, finely crafted ‒ and executed with refinement for the elite. Those are ways to entice the interest of, and ultimately retain, the ultra-wealthy. Products and services should never appear as ordinary yet absolutely personal.

In the luxury sector, traditionally there hasn’t been any shortage of customization for the very well heeled. Exclusive and bespoke travel companies provide tailor made adventures and excursions, whereas, the ultra-luxury and exotic automobile sectors such as Rolls Royce and Ferrari respectively offer a wide array of customization options. Each vehicle coming out of the studio will be completely unique and guided by a personal designer at the manufacturers. This is how ‘the total customer experience’ materializes.

What do the HNWIs and UHNWIs seek in their lifestyle?

According to the white paper, Strategies for Effectively Marketing to High Net Worth Consumers”, written by Richard Becker (August 2008), High Net Worth Individuals enjoy Golf, tennis and physical fitness ‒ endeavors typically associated with exclusive ‘members only’ clubs.

HNWIs/UHNWIs cherish their time and know what they want. Even time is a luxury and limited resource for them, thus saving time greatly trumps saving money. This is part of the reason service is crucial for them. They can be generally described as:

– Seek a higher and exacting standard with a minimum set of expectations;
– Fussy in nature;
– Often require customized solutions to mirror their lifestyle – whether a product or service;
– Take pleasure on getting extra attention from the brands they pursue;

– Prefer the uncommon to the mundane;
– Expect to be offered unique choices and experiences;
– Synonymous with a taste for luxury with pedigree and craftsmanship which they’re able and willing to pay;
– Aspire an aura of exclusivity;
– Crave an experience heightened by exceptional service along with a personal relationship;
– Seek products which are different and more sophisticated – whether it’s apparel, electronics, food or insurance;
– Want to feel in command of their purchase decision without any pressure;

– Expect discretion and confidentiality – most notably from service providers such as private wealth institutions and concierge services amongst others.

Likewise, what they purchase is a visual extension of their individuality and lifestyle. A well-crafted product, for example, reflects an individual call to beauty.

Putting it all into perspective

In the United States the top 1% possess 40% of the wealth owns half of all the stocks, bonds and mutual funds.

Fickle and discriminating, these customers’ purchasing attitudes are based on personal beliefs and taste for finer things in life along with discretion. They are quite selective, know what they want and aspire to be catered to effortlessly. They seek the total customer experience along with pampering, personalized service which can include fashion consultations and exotic journeys. Best of all, they are willing to pay top money for the products and services they want.

An offline strategy requires an equal online presence. This is accomplished by placing stunning imagery, video, engaging content and constant refinements along with savvy Internet marketing to connect the brand with luxury social channels. It’s connecting with its like-minded audience.

Think brand positioning and focus on, as well as cater solely to, your core market rather than be all things to all people. Stay out of the bottom end and aspirational markets and instead, aim at the top end markets.

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Filed under brand positioning, Branding, Business, lifestyle marketing, Luxury, luxury lifestyle, luxury storytelling, Marketing, positioning, sensuous brands

Tagged as luxury branding, luxury brands, luxury ranking

June 3, 2017 · 9:54 pm

Adding Personality to a Dull Product Through Clever and Humorous Ads

https://www.youtube.com/watch?v=mZBiPxn-haA

Let’s be candid: not many of us pay much attention to advertising for life insurance, bathroom tissue or medical devices. What’s there to be excited about? Adding a dose of personality with humor may create attention for those types of products which we would not otherwise have given them much attention — especially among a plethora of advertising. This also applies to generic products such as soap and bottled water.

Not every product or service brand is stimulating

Not every brand is as exciting such as Victoria Secret, Porsche or Apple. Many brands, it turns out, are simply staid, generic or both. However, the creative ones have put much thought into developing content which captures attention. This would come in a form of either:

– a humorous type ad;

– an emotional style ad which results in becoming remarkable and memorable; or,

– embodies a certain lifestyle which most in the target market would be able to relate to as their own;

– it turns out good enough that many of us would share the advertisements with others (as I am doing in this article).

Cases in point worth noting: clever ad campaigns

Below are examples of products and services which can stir emotions – whether arousing, dramatic or amusing.

Zyppah (snoring device)

Zyppah (“Happy Z” spelled backwards) is an oral sleeping device which claims to eliminate snoring. It doesn’t sound or look like a sensuous device, so the brand decided to develop a clever advertising campaign by creating a character – a spokesperson of sorts with a thick New York City accent, named “Jimmy.” The results can be watched and heard below.

https://www.youtube.com/watch?v=nWHIkX7_mHY

Poo-Pourri (a fragrance brand that develops and markets deodorizing toilet sprays)

Suzy Batiz had an obsession with getting rid of “poop odor” to the brink that for nine months she relentlessly worked on developing an oil-based spray you put on the surface of toilet water before you go. It worked! Her claim is that her product, named Poo-Pourri, has a unique oil which “…creates a layer, and whenever the poo goes in, it actually encapsulates it, it sort of ‘wraps’ the odor.” Truth be told, bathroom products are not the most thrilling to market, let alone such a spray to diminish poo smell – or so you thought. By taking a taboo subject and adding humour and surprise, Suzy Batiz and her marketing creatives, decided to add a dose of bliss to the video ad by featuring an elegant, well-dressed woman with a British accent and revealing her grief of trying to disguise unpleasant bathroom aromas. The ‘Girls Don’t Poop’ initial ad campaign quickly went viral gathering over 6 million views and 278,000 shares in its first week. Here is the video link: https://youtu.be/ZKLnhuzh9uY

Big Lou/Term Provider (life insurance broker)

Life insurance, for many, is a morbid product which needs to be sold rather than bought by most on – and if so, on their own initiative. Therefore, how does a prominent term life insurance brokerage firm start a conversation and promote its intangible products which only beneficiaries can eventually claim its proceeds? Term Provider, the actual name of a term life provider decided to add a pun by branding it with a catchy name – Big Lou – as if its owner is obese and nicknamed Lou is in Louis. We are not certain if the founder/owner of this agency is actually overweight as he claims, as we do not get to see him in his ads. His ads, link below, are for the most part, aired on CNN satellite (think Sirius XM) radio.

https://biglou.com/commercials/

Eyelab (Optometry examination facility in South Africa)

This ad campaign was created in a form of print advertisement by Canvas in South Africa for Eyelab, to promote its professional services. The one below insinuates that this attractive lady needs to have her eyes examined since she appears to have chosen an incompatible and geeky looking man as her mate. In reality, her choice can be quite subjective and a personal choice of hers without any of us being too judgemental. Needless to say, it is eye examination promotional content with a different twist.

http://adsoftheworld.com/media/print/eyelab_couple_1

Bling H2O (luxurious) water

How about branding water and putting the world’s most expensive price tag on it predominantly by visual appeal and perception? That’s just what its founder and president, Kevin G. Boyd, did for Bling H2O which he labels it as “luxury” and charges about $44 per bottle. He has accomplished this through a clever marketing strategy such as:

– focusing on distribution of limited editions;

– creating a fancy glass water bottle to add cachet;

– conveying a glamorous story with his marketing messages;

– has celebrities sipping his water and as a result, gaining massive publicity.

Virgin America and Air New Zealand (airline safety instruction videos)

In less than two weeks following its release online, Virgin America managed to get almost 6 million people to watch their safety video without even stepping foot on the plane.

https://www.youtube.com/watch?v=DtyfiPIHsIg

Air New Zealand created something a little different and entertaining for their safety instructional video by celebrating the third and final film in The Hobbit Trilogy – The Hobbit: The Battle of the Five Armies.

https://www.youtube.com/watch?v=qOw44VFNk8Y

In the final analysis

Although many products or services such as bottled water, insurance and banking services are not exciting on their own, it doesn’t mean they should remain dull. They still do have the potential to be branded with charm, emotion, sex appeal, or yet attributed to a certain lifestyle. A good sense of humor also comes a long way – provided that creative campaigns can be produced with unique and passionate content worth talking about and sharing.

Positioning the brand is another way to differentiate any generic product. It’s what you create in your target customer’s mind, along with the benefits you want him or her to think of when he or she thinks of your brand.

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Filed under 1, brand positioning, Branding, branding not products, Business, customer engagement, Marketing, sexy advertising

Tagged as brand, campaigns, creativity, marketing

July 1, 2016 · 10:06 pm

The Challenger Brand: Going Up Against the Category Leader with an Alternative Product and Ethos

The status quo is a complacent syndrome which exists with most established brands regardless of which sector they are categorized in. Despite a large capital chest, they are short-sighted, dull and lack the nimbleness to adapt swiftly. However, there those such as Nike and Amazon, among others, which innovate constantly. Nowadays, newbie companies fill in the gap and disrupt entire industries with revolutionary business models, products and services – whether in the service domain (think AirBnB, Uber and Netflix), automotive (consider Tesla) or in the consumer product domain (such as Dyson, Under Armour, Warby Parker and Hampton Creek’s Just Mayo brand).

The anatomy of the challenger brand

A “challenger brand” is defined as a company or product brand, whether a start-up or established, which faces up to the category leader in an advocacy stance. As a result, this type of brand/company is brusque to the point of creating and applying bold tactics. Furthermore, it is distinct and emotionally driven to be able play from a position of strength behind the dominant player in its sector. Consequently, the challenger brand eagerly takes on a unique position and showcases with conviction, to its target audience, why it is the logical alternative to the segment leader. Unique features offered may include enhanced features and benefits from those offered by the category leader. These may include better materials, technology, functional and attractive design, craftsmanship, performance, above average service, better value for the money, as well as social responsibility to name a few. This works well with consumers who are either under-served or under-valued by the leading brand.

Uber, with the birth of the ride sharing app, came along and challenged the taxi domain through a paradigm shift. It took the taxi leagues worldwide by storm which got the cabbies up in arms and resulted with them protesting and asking their local government to legislate against their nemesis. Rather than looking inward and reforming to compete, the cabbies chose the path to ferociously protect their precious monopoly. One taxi trade magazine even printed a column that condemned Uber as a “corporate pariah,” a “malignant tumor,” and a “giant octopus” that has “spread its tentacles globally.”

A challenger brand is determined to persist and persevere to constantly make a point to undermine the leading standard in order to change the rules to the benefit of the customer.

How to outsmart the category leader

When the challenger brand does not have the marketing budget to go head-to-head with the established brand in its category, it is easy to see why the latter can fail. To overcome this problem, the challenger creates unconventional marketing tactics which are more effective than traditional ones with much less ad spending. Sometimes that advertising is giving jabs to the weakness inherent with the category leader and it can include clever yet subtle messages which, if effective, may be able to persuade consumers who were leaning toward the established brand that it is not all that great as always thought.

Advocating and standing for something compelling, such as Patagonia with its social responsibility mission which is: “Build the best product, cause no unnecessary harm, use business to inspire and implement solutions to the environmental crisis.” The idea is to make a strong emotional appeal about the changes they seek to make a difference with. It is demonstrating and personifying not only through mere words but also with deeds that they are a better alternative to the incumbent brand. This takes being and acting confident through passion, beliefs and a purpose against the norm in return for something that matters.

Jude Bliss, the editor of the online blog The Challenger Project, had made this noteworthy statement: “Challengers are as clear about what they are rejecting as they are about what they are championing, which involves clearly defining what you see in the current market that is broken, as well as what change you can bring.”

It does not matter whether you are a new and small brand or the largest. Everyone can partake as a challenger brand. As long as your largest competitor defies with your ethos, then you have a cause for a challenge. No better example of this than Apple vs Microsoft with their witty advertising jibes at each other as to whose PC is the smarter choice for the user.

Another tactic to use as a challenger brand, if you are in the consumer goods domain, is to be creative and stand-out among the crowd with exceptionally designed yet functional packaging. Taking away the bland and ordinary and making the product desirable. Consider what Toblerone chocolate, Veuve Cliquot champagnes, SKY Vodka and others have succeeded in doing which eventually spiked their sales.

Audi has taught other brands how to challenge

BMW and Mercedes Benz are two German premium leading auto brands which command an equal level of prestige and respect. Both are in the same league in terms of German engineering and precision. However, each has a distinctive style which distinguishes it in the target audience – younger who prefer dynamic driving and older demographic with preference for a luxury drive respectively. As regards to Audi, up until the several years ago, the brand was deemed as the awkward stepchild of the parent VW group — the Toyota of the German elite of sorts. Lately, Audi has stepped up its game and finally entered the world as a true competitor along with their German tagline exuding what they stand for: Advancement through Technology. Audi has been gaining on its German rivals. Its firm commitment to excel has brought Audi to an audacious position to vigorously challenge its opponents BMW and Mercedes.

In 2009 in a busy Los Angeles, California intersection, a billboard ad rivalry between what Audi initiated and with BMW responding had escalated to a new level. A tit-for-tat had ensued when Audi placed an image of the all new Audi A4 along with the headline: “Your move, BMW”. Santa Monica BMW, a local dealership, took on the challenge and entered a virtual chess game when it added a billboard not far from Audi’s which featured a photo of the BMW M3 with the counter punch, “Checkmate.” A few days later, Audi unveiled a new billboard to replace the one with the A4. It featured an R8 super-car and read: “Time to check your luxury badge. It may have expired.” In the end, BMW moved its billboard to some other place and the billboard ad war came to an end.

In a Brand Channel blog interview with Loren Angelo, director of marketing for Audi of America, has said that “As a challenger brand, you have to look at your category, your situation…and attack it head-on.” He further elaborated: “We need to continue to challenge. That’s what allowed us to drive our position and to turn the brand around beginning in 2008. A challenger brand doesn’t mean we only challenge the competition, but we communicate how we challenge the status quo and challenge complacency in our industry and in culture.”

That being said, as a challenger brand, constant and persistent messaging with conviction to the target audience ought to be applied along with the delivery of unique customer experiences to solidify brand loyalty.

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Filed under Branding, Business, challenger brand, competition, controversial advertising, Marketing, marketing strategy

Tagged as BMW and Audi, branding, challenger brand, challenger brands

June 2, 2016 · 10:05 pm

The Art of Sparking Emotions: Building Desire for Your Brand

By James D. Roumeliotis

Couple in Love

Whether offering products or services, a business is expected to create connections and engage in conversations with its prospective clients ─ but equally important, with its existing clienteles. While these connections might come in the form of attractive print ads, or utilizing social media/digital platforms, or even face-to-face interactions at various touch points, they should all be tailored to initiate meaningful conversations between brand and consumer. Conversations that can achieve sales targets along with obsessive fan followings which ultimately boost the popularity of the brand.

Customer engagement: the essentials

More than 20 years ago, a popular method for companies to obtain sales was to utilize a sales force and apply pressure tactics. Some companies used the telephone as their tool of choice for cold calling. This was a typical marketing and sales approach. Sales staff where trained in persuasion and closing techniques including answering the most popular objections. This is what is known as a “push” strategy. Today, customer engagement works in reverse. It is the customer, whether an end-user or a business, who decides if and when to communicate with a company. The typical contemporary consumer has the power of the internet and word of mouth in determining great deals and which brands they should be transacting with. Moreover, on the consumer side, there are countries with strict national regulations concerning telephone solicitation. This has had companies scrambling to stay relevant with the times and is considered a “pull” strategy. There is also a refined marketing method known as “Permission Marketing” (opposite of interruption marketing) which was coined by marketing maven Seth Godin. As a result, marketers have been adjusting their strategies and integrating them with online and offline marketing activities, along with a laser focused approach with their specific audience. This has resulted in deep customer engagement.

Customer engagement is not a single outcome ─ it is an ongoing dialogue. They have come to expect more personalized interaction, customized solutions, timely results and most certainly a “bang for their buck.” This requires brands to be customer centric ─ with everyone in the organization on-board, in addition to being well versed in the digital age. This includes blogging, Twittering, Instagram posting and viral marketing among others. One other notable trend is towards widespread audio and video production and communication. From podcasting to mobile video, audio and video is predominating in our digital world.

Push vs. Pull marketing

Push marketing and pull marketing are different yet complementary marketing methods for promoting a business – most notably online.

Push marketing is more traditional methods of advertising – essentially, you are pushing your message to your audience, regardless of whether they want to receive your message or not. Push marketing focuses on product features and awaits the audience to respond. Examples of push marketing include email marketing, website advertising, and cold calling.

Pull marketing is more proactive, pulling the customers toward your brand/product with targeted messages they care about. Pull marketing is all about brand building. Examples of pull marketing include media interviews, public speaking, and word of mouth advertising.

The holistic approach

Consumers today are more brand conscience, better informed and with more options. Despite this, there are companies which continue to spend money advertising and selling product rather than brand. They place emphasis on price and quality as differentiators despite these two being overused by many copycats. Successful brands take a holistic approach to selling by exploiting the five human senses which now constitute the brand. This is accomplished by what I regard as “ambiance marketing” and “sensory/sensorial branding”, through a captivating designed setting, yet alluring. This adds character and invites clients to truly feel the brand experience.

The five senses, when applied toward the customer, are regarded as follows:

Visual – lighting, decor, colors, layout…you can get a real sense of movement using these elements.
Auditory – music, effects, volume, vibrations…you set the tone and the energy of the room with your sonic selections.
Tactile – textures, comfort, climate…this is all about how your guests interact with the environment. This is a big thing to consider when you are designing the layout.
Olfactory – fragrance, emotion, ambiance…this sense is under-rated and powerful. Of all our senses, the sense of smell is most closely linked to emotion and memory. You can use something as simple as burning incense or candles to something far more complex like computer controlled scent machines to enhance your environment. This could just be the extra touch needed to set the mood.
Gustative – with food establishments, the challenge is in finding the perfect balance between sour, salty, sweet, and bitter during menu designs and beverage selections. The presentation also makes an impact on the overall image.

Storytelling along with the total customer experience

In the end

With a plethora of marketing noise, differentiation in the delivery of non-evasive communication, personalized service and focus in niche markets will be the determining core value equation for success in attracting and retaining clients.

When consumers are treated with honesty and delighted by a particular 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 positive effect.

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Filed under Business, business development, Business success, customer engagement, customer experience, customer service, Marketing, pull marketing, push marketing, sales strategies, sensuous brands, sensuous products, total customer experience

Tagged as customer engagement, customer service, marketing, the total customer experience

May 1, 2016 · 8:20 am

Three Things Businesses Can Learn from the Late Prince, The Artist

by James D. Roumeliotis

Prior to his sudden demise, I always had quite the fondness and following for Prince, “The Artist.” Ever since I discovered his music in the late 70s, what never seize to amaze me since was his eclectic work (comprised of dance, funk and rock tunes), vocal range and the method in which he always managed to integrate it all seamlessly during his formidable stage presence.

However, what many may not have been aware of was his show business acumen. Prince built and sustained his personal brand along with the resources he exploited which comprised of his musical entertainment enterprise.

What I have learned from this beloved and prematurely departed artist are three lessons which any business can use as a takeaway for implementation. They are as follows:

1) Stray from the ordinary and remain relentlessly competitive

“The Artist” was widely acclaimed by his fans, the media and fellow musicians as one of the most influential and creative musicians of his generation. He seemingly left behind an impressive music legacy. Unlike most artists, Prince was a prolific songwriter, multi-instrumentalist, sang in a variety of vocals, produced his work, as well as displayed dance and theatrical antics on stage. Must we forget that he was also an actor ─ most notably in “Purple Rain” along with performances in four other movies including on television. Moreover, he wrote songs for and produced work for other musical acts including some he impacted and/or for whom he acted as their mentor and coach.

Prince also knew how to outdo his competition by standing out with his artistic performances including the eccentric outfits he sported along with his leaping dance acts he displayed with his platform shoes ─ as he only stood at 5’2”/1.58m. Some of his singles, which eventually turned into big hits, were purposely targeted at some of his rivals.

An exemplary display of Prince’s unique and memorable performance was a video, recorded at the 2004 Rock and Roll Hall of Fame induction ceremony. The illustrious artists playing the Beatles’ “While My Guitar Gently Weeps.” include George Harrison’s son Dhani, along with old band-mates and collaborators Jeff Lynne, Tom Petty and Steve Winwood. However, most striking among this band, who stood slightly apart from the rest while they played ordinarily, was Prince. Despite his small frame and wearing a dark suit with a red shirt, a matching derby hat, and staying on the sidelines for the first 3:27 minutes or so (in the YouTube recorded video), he suddenly steals the show with his passionate guitar solo. As the song ends, Prince abruptly takes off his guitar, tosses it in the air and then disappears off stage. That was probably the most memorable part of the video from my perspective. Many more who watched it share the same sentiment.

2) Branding, image and reputation are your equity

As with traditional businesses, Prince had created a personal persona – where the brand and performer were synonymous. He created a logo dubbed the “The love symbol” ─ one that blended the symbols for male and female which was instantly recognizable. It was also the shape of his customized guitars. Prince even owned a signature color in the mind of his followers – purple. His occasional provocative lyrics, seductive singing, dramatic performances and distinctive album covers all depicted a unique style as an icon and as a showman of his personal brand.

As one Twitterer remarked in his Tweet following Prince’s death, “Prince built a brand around his music and his genius before content marketing and personal branding became a thing.” Another stated, “Like Bowie, Prince reminded us that it’s not just OK to be weird—it’s cool to be weird.”

The moral of this narrative is that as a business, follow what Prince did ─ by working on building your brand image consistently, by establishing unique features with your products/services that distinguish them from the competition, and by being true to yourself, as well as by what you truly stand for.

3) Become vertically integrated

Prince was more than an artist, he was one who only entrusted himself with songwriting, arranging, producing, naturally performing his own music, as well as distributing it through his own label (NPG Records and Paisley Park Records before it). To do so, he built a $10 million state-of-the-art complex in a suburb of Minneapolis, Minnesota which he named Paisley Park Studios. That said, he became his own vertically integrated corporation. This was, after all, a multi-talented musical artist who believed in taking control of his own destiny and in return, earning the maximum revenue and profits rather than giving much of it away – most notably to a record label. He considered the role of record labels exploitation and slavery. He was a fierce advocate for artist rights and independence and in he had standoff with Warner Bros., his label at the time. In protest, Prince removed his name from his album releases and changed his name to a symbol. He also styled himself as “The Artist Formerly Known as Prince.” Furthermore, during a legal battle with Warner Bros., he scrawled the word “Slave” on his face during his appearances and performances.

The significance with this illustration is that a business with adequate capital, resources and expertise ought to consider amalgamating most or all of the processes under its own umbrella. A such, quality control and improved profits are now controlled by the business itself.

Paisley Park Studios

A final point of intrigue

On a noteworthy footnote, in his 37 years as an artist ─ and unlike many with his fame, he kept himself out of the negative spotlight. He never plagiarized a fellow artist’s work, never had to hire a ghost writer, and neither involved in a scandal which would drag him to the courts. In the end, he was capable of playing more or less 20 instruments admirably and having earned 19 Platinum albums, 6 gold albums, along with a double diamond record for his Purple Rain album which sold 21 million copies. Impressive for a personal brand to say the least.

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Filed under 1, Branding, Business, Business success, entrepreneurship, entrepreneurship success, Marketing, public relations, Show business

Tagged as branding, entrepreneurship, marketing, Show business

March 1, 2016 · 8:38 pm

Consumer Packaged Goods (CPG) Marketing Tactics: Spending Less and Generating More Exposure & Revenues

When it comes to marketing food products, known in industry jargon as “Consumer Packaged Goods (using the acronym “CPG”), it takes more than mere advertising. Any brand with a deep advertising budget can do so. However, the skill is in knowing how to best utilize a limited budget for maximum effectiveness. Surprisingly, many smaller brands seem to be running circles around their much bigger brand counterparts with greater resources. The key differentiator is in the strategy and implementation including the ideal target market, brand positioning and specific media sought.

Guerrilla marketing: Getting noticed on a shoestring budget

Persuading consumers to consider your product on their shopping list takes time and an ample marketing budget. However, getting consumers to take notice of your product can be swift if a combination of Guerrilla/unconventional marketing tactics are used in conjunction with unique packaging design.

The term “Guerrilla marketing” refers to an unconventional and bold approach for a business to promote its products and/or services in ways that capture the attention of potential customers. They are creative, memorable, attract people’s attention (some may be controversial) and require a limited budget which makes it ideal for small to mid size businesses. “Guerrilla marketing” was originally coined in 1983 by Jay Conrad Levinson who also wrote the book “Guerrilla Advertising” with subsequent editions and derivatives which followed.

In keeping with the CPG theme, Nestle’s Kit Kat candy bar brand utilized Guerrilla marketing by placing creative candy-themed benches across large cities as the image below depicts.

Today, if a brand, especially a new arrival on the market, wants to stand-out in a crowded marketplace, it ought to consider the following means and tactics.

Online/digital ─ Content marketing: This is absolutely the medium/platform which should not be overlooked. Even large brands are placing more emphasis with digital in their integrated marketing strategy. Content is released frequently but in small doses utilizing Twitter, blogs, Linkedin etc. along with stunning lifestyle images and video with must view material (Instagram, Pinterest, Facebook, YouTube, Vimeo to name the most prominent digital venues).

Public Relations: As this is earned media, what is stated about a brand from a third party is considered trustworthy. Creating buzz through the media, including the use of press releases, is an inexpensive way to earn publicity in lieu of traditional advertising spend.

Alliances – associations – sponsorships: These are additional considerations to boost exposure which turns-out to be a win-win for both parties (sponsor and sponsored party/ beneficiary).

Storytelling: A brand should include storytelling which places an emphasis on the brand’s heritage, the reason for being and why it is offering such a product or products. It is more than content and a narrative, it is a picture made up of feelings, facts and interpretations.

Food packaging: Eating with our eyes

The value added in design, craftsmanship, branding and overall quality can elevate a product into an epicurean delight. Clever and innovative design significantly increases sales and improves brand performance. In addition, it can do plenty of silent marketing. Consider Toblerone, the Swiss chocolate bar brand, whose distinctive yellow triangular packaging and equally shaped product inside is instantly recognizable. It undoubtedly portrays a premium product yet offers a good value for the price. The brand’s marketing spend is much less than its competitors, though its sales and profits are known to be exceptional in its category.

There are many ways of seeing the value of design. For instance, you can measure sales and relative value as an output of changes in design. Design can also improve your standing among rivals and give you a competitive advantage. The Design Council published a report where facts and statistics concerning the value of design are highlighted. One interesting statistic is that design conscious businesses can expect a return on their internal design investments as high as 125%. That’s quite an impressive return compared to other types of investments made in a business.

What may be obvious is that if you have high quality design, you do not need to compete with your competitors on price. If the design of a product packaging has a “wow” factor to make it stand-out on the shelf, then consumers will choose it even if the price is slightly above the competing products. If the product inside is as good as its packaging, customers will enjoy what you have to offer and continue to be loyal to your brand. That is the result of offering something unique and of a higher standard.

Lifestyle marketing: Non-traditional methods to reach modern consumers

Generally speaking, a brand that is designed for a lifestyle should have a much higher emotional value to consumers than one based solely on features, benefits and cost. A study from the Kellogg School of Management revealed that brands serve as a means of self-expression along with the limitations of expressing a consumer’s identity through brands. The goal of a lifestyle brand is to become a way that people can utilize it to relate to one another. Those brands are an attempt to sell an identity, or an image, rather than a product and what it actually does.

Two CPG brands which have joined the lifestyle bandwagon and spending more money and resources away from traditional marketing are Oreo and Red Bull. The former has created one article and image on the pulse of pop culture per day for 100 days with not much revealed of what would come next. Red Bull which spends a staggering 30% of its revenue in marketing and sponsorship events, has also launched a magazine with over five million subscribers, including a record label and two film studios to produce its lifestyle and experiential material.

Healthy eating and acquiring new tastes are modern day trends which can’t be ignored by CPG marketers. Smaller portions are also a recent trend which equate to less calories for consumption along with much focus on natural and non-GMO ingredients.

Creating new categories and uncontested market space

Instead of competing head-on in the same product category, as the majority of brands are accustomed to, consider creating an entirely new class which will be in an uncontested marketplace. This approach is known as Blue Ocean Strategy®. It was developed by two professors at INSEAD, W. Chan Kim and Renée Mauborgne who are also co-authors of Blue Ocean Strategy: How to Create Uncontested Market Space and Make the Competition Irrelevant (Harvard Business Review Press). As they put it, they observed that companies tend to engage in head-to-head competition in search of sustained profitable growth. Yet in today’s overcrowded industries competing head-on results in nothing but a bloody “red ocean” (as in cutthroat competition turns the ocean bloody red) of rivals fighting over a shrinking profit pool. Lasting success increasingly comes, not from battling competitors, but from creating “blue oceans” of untapped new market spaces ripe for growth.

An intriguing case study which puts the above strategy in perspective is Australia’s Casella Wines. In 2001, it entered the overcrowded and highly competitive wine industry in the U.S. with its Yellow Tail brand. By the end of 2005, it had reached sales with 25 million cases ─ achieved on a limited marketing budget. This triumph placed Yellow Tail in the category of the overall bestselling 750ml (25.4 U.S. fl. oz.) red wine, outstripping Californian, Italian and French wine brands. It accomplished this by applying the Blue Ocean strategy framework. Consequently, Casella Wines’ Yellow Tail brand targeted the beer and ready-to-drink cocktails in the U.S. market and created Yellow Tail to be easy drinking, an informal selection, fun and an adventure ─ in essence, an uncomplicated, fruity wine structure that was instantly appealing to the mass of alcohol drinkers.

A category which should not be ignored are Millennials (aka Generation Y). They are projected to spend $65 billion on consumer packaged goods (CPG) over the next decade, yet there are many misconceptions and challenges in reaching these shoppers, according to a white paper by WPP’s Geometry Global. Millennials are the largest generation since the Baby Boomers. They are known to be quite sophisticated, technology wise, unaffected by most traditional marketing and sales pitches. As a result, CPG companies should adjust and innovate to stay digitally connected with the Millennial consumer.

Sensorial branding: Exploiting the senses

In keeping with the spirit of the five senses, you can exploit them entirely to create a favorable experience in synergy, for guests and clients alike. Below are some of the most important factors:

SIGHT – choice of packaging, its design along with its images, the font type and colors. Add to that a stand-alone point of purchase (POP) display.

TOUCH – the feel and ergonomic design of the packaging. This is how the consumer interacts with it. Plenty of emphasis should be placed on this when designing the package.

TASTE – finding the perfect balance between sour, salty, sweet, and bitter. Food product samples ought to be available as consumers would prefer to try a product they are exposed to for the first time. Presentation is equally important which has an impact on the overall image of the setting.

SMELL – it is all about the smell of the product. This sense is closely linked to emotion and memory. You can use something like computer controlled scent machines to entice. Sensory technology can be very influential down an aisle. Case in point: a French bakery café can deliberately use ventilation to deliberately spread the smell of roasted coffee and baked items sold to induce clients to make or increase their purchases. A company which is known to furnish such state-of-the art equipment is Scent Air Technology.

By integrating the brand-building strategies to appeal to all, or most of the senses, sales have actually increased.

At the end of the day

Marketing done well can improve your brand’s awareness, lead to more sales, word-of-mouth, as well as gain client loyalty.

Using clever marketing approaches which do not cost a fortune, along with innovative and attractive packaging, can lead to impressive sales. However, to develop repeat purchases (think “sell-through” at the retail level), the product itself should taste good and produced with quality ingredients.

Stay in touch with your customers via social media interactions and occasional email newsletters and a blog. Do what you can to improve the lives of these people with valuable advice and special offers. The product should exude that it occupies a part in a pleasant lifestyle.

Remain true to what is making your CPG brand a success and refuse to become complacent. Keep refining, innovating, never mislead (through false benefit claims and nutritional information) and engage constantly with your loyal clients. These activities are not deemed a onetime event but rather an on-going process.

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