January 03, 2008

Brandwidth 2007 - The Year In Review

It seems 2007 was the year which brought everyone to their feet.

Whilst it’s been bubbling under for the past few years, 2007 saw the social revolution came above ground as a number of leading brands finally joined in the conversation. And they didn’t stand still either. More and more conversations between buyer and seller (and eavesdropper) took place on the move as the hand-held vied with the desktop to host the critical exchange.

As it’s done with impressive ease for the past few years, Apple proved that you can be both social butterfly and busy bee with the introduction of the iPhone, a brand extension that seems to have captured the imagination of much more than the generation of early-adopters who typically embrace the new technologies.

This was the year too, when the big players began to cotton on to the social niceties, with fewer talking at us and more prepared to chat with us and listen to what we have to say. Facebook applied more than a little face-paint to lead the new dance when it introduced its clumsily named but twinkle-toed Application Programming Interface, which allows us to play with the technology and make adjustments that suit our own social purposes. But traditional players such as Xerox (with its re-printable paper), Levi’s (with its branded virtual world) and UPS (with a desktop widget that tells you where your parcel is right now) showed an impressive turn of foot as they quickly learned the new dance and added some fancy steps of their own.

Despite our fondness for a social gathering here in Ireland, our own leading brands have been wallflowers over the past year and have shown little enthusiasm for stepping out onto the floor with the customer. Whilst there has been some token foot-tapping by advertisers using the new media, there’s been nothing to capture the popular imagination in the way that we’ve seen elsewhere.

The announcement in July by Funda that they were shutting down their Irish operation seemed a reflection of this. Their viral campaign of the previous year for Shamrog Island, which promised “the biggest construction project in the history of the state” delivering a “self-contained city on the sea” in Dublin Bay, had proved to be a real talking point, particularly when it was found to be an ingenious hoax designed to promote their new property website. However, a poor follow-up, including a rather lame website which did little to stand apart from the competition, had seen this bold, brand initiative trip over itself. So it was no surprise to learn that they had decided to bow out, citing a failure to meet targets within their timeframe.

But perhaps that was just a sign of the times? The Irish property sector, which had tripped the light fantastic for the past ten years, also missed a step or two in 2007, although its brand leaders were quick to assure us that the party wasn’t over yet, it was simply time for a slow-set. Maybe this is the cue for entrepreneurs in other sectors to sashay in and take the lead? There’s considerable evidence from incubation units across the country to suggest that a whole new generation of busy bees are waiting in the wings, all ready to strut their stuff.

Two brands that have made a song-and-dance in a more traditional setting have been Rabo Direct and Permanent TSB, both of whom have displayed a willingness to talk about what matters to the bank-customer and have been pulling in the crowds as a result. Whilst the effect doesn’t quite rival that which Riverdance had on the dance-floors of the nineties, the pair are clearly shaking up a market that has been poorly served by ranks of stiff performers, arms firmly to the side whilst earnestly going through the motions.

Meanwhile, two towering figures on the Irish hospitality scene made their exit during the year as Jury’s Ballsbridge and the neighbouring Berkeley Court shut their doors for the last time to make way for a new development. At least, we thought that the ball was over, but the new owner did a quick about-turn when he learned that permission for his project had been refused. The two properties reopened as bed-factories, with all services outsourced, whilst his designers went back to the drawing board. Not surprisingly, this sudden supply of cut-price rooms prompted great confusion in a local market that had typically taken its bearings from these two landmark properties.

On the political front, Taoiseach Bertie Ahern proved himself lord of the dance once more as he stepped out and he stepped in again following the General Election. His main rival Enda Kenny had hoped to cut-in by proposing a pre-nuptial agreement with Irish voters (and reminding us of his opponent’s financial indiscretions), but the elusive Ahern’s dazzling footwork continued to impress and he was rewarded with another five years by an electorate that seemed to prefer his brand of politics over all others. Dirty dancing indeed.

Overseas, political branding has been taken to a new level in the US as it gears up to elections in 2008. Barack Obama, a leading contender for the Democratic nomination as we write, has been backed by one of the most powerful personal brands in America, Oprah Winfrey. Political commentators are suggesting that this is likely to prove much more significant than other celebrity tangos and may have a huge impact on national politics. Described by The New York Times as “without a doubt, the most powerful endorsement in pop culture”, Oprah’s blessing can turn an obscure book into a national bestseller. We’ll watch with real interest to see whether her surefootedness in front of the TV camera sees her candidate dance all the way to the White House.

So what can we expect in 2008? If the quickstep of the last year is anything to go by, we can look forward to a year when the social whirl continues to gather pace. As the music picks up, this is no place for wallflowers. For the brand-owner and entrepreneur, 2008 is clearly the time to face the music and dance.

December 30, 2007

All I Want For Christmas

As I wrote in my most recent post, this down-time over Christmas is proving hugely productive in terms of some of the ideas it's prompting for work on my return to the office in early January.

(I know I should be switching off completely but it's extraordinary the thoughts that come unbidden to my head when I'm settling down to tackle the second layer in the chocolate box).

Watching the response of my children to Santa's presents in particular has sharply reminded me of the crucial difference between 'need' and 'want'. As marketers, we're often tempted to ask what our customer needs in much the same way as the conscientious parent wants what's best for the child. The child (and the customer) are quick to recognise how this lofty attitude leaves everyone feeling beyond reproach and it's not uncommon for the child to tell us what they 'need' (when they're really describing what they 'want'): 'I need those expensive trainers so that I can play well for the team'.

U2's Bono nails it when he sings: You say you'll give me a treasure just to look upon it...a river in a time of dryness...when all I want is you.

Meanwhile, there's a clever Bank of Ireland ad that suggests that the bank knows how to play this game too with students looking for a loan.

It's terribly important, of course, that we make offer to others with a keen eye on what they need but we mustn't forget that the market makes its choices based on what it wants rather than on what it needs. Naturally, when both 'want' and 'need' stand happily together, we have the makings of a marriage made in a blessed space but when the two fall out, it's 'want' that usually comes out ahead in any post-nuptial settlement.

As both marketers and parents, our first instinct is to go to the more rational place occupied by 'need' and this can only be a good thing in a world where 'want' is more inclined to the one-night stand than it is to the long-term relationship. But we'll find ourselves jilted fairly sharply if we don't ensure that 'want' is catered for too.

It's not only the parent knows the loneliness of the hollow victory that's achieved when 'need' wins out over 'want'.

December 27, 2007

Busman's Holiday

Since I pulled on my brand-coloured glasses some years ago, there's a danger that this time of year is something of a busman's holiday for me. This really is the season when brand is king and as gifts are exchanged and unwrapped, it's rare to see one emerge from under the tree without a famous label of one kind or another attached.

In some ways, this proliferation of brands makes choosing easier rather than more difficult. My own children are able to construct a list for Santa that's frightening in its detail (my own childhood bulletins seem hopelessly vague by comparison) and it's now possible to do all the shopping for Christmas astride a search-engine with credit-card in hand.

One thing that hasn't changed though is the importance of the 'thoughtful' gift. My eldest was in tears yesterday because Santa hadn't brought him all that he'd asked for (in fact, Santa and Mrs. Claus had exercised considerable discretion in choosing what they thought were more suitable presents for a boy of his age) and he agonised whether his own behaviour hadn't been up to scratch in the lead-up to the holidays.

Over the years, many of the family tiffs I've witnessed (or been a party to) have revolved around someone (not always a child) reproaching the bearer of gifts for choosing something unsuitable. There's even a seasonal ad that plays on the trials of choosing well for someone else.

Those of us on the receiving end seem to place extraordinary store on the capacity of the giver to choose something for us that matches our expectations and heaven help the one offering a gift that somehow misses the target. On the other hand, when we get it right we seem to prompt a gratitude that seems just as out of proportion.

Sometimes, it's clearly not just the thought that counts.

December 16, 2007

Standing Out In The Crowd

I'm just back from a visit to Milan, which truly is a city where brand is king. Although I could never be accused of being a fashionista, I was amazed at how many labels I recognised on the streets around the Quadrilatero D'Oro (the Golden Quad); from Italian giants such as Gucci, Armani, Prada and Dolce & Gabbana to Chanel, Yves St. Laurent and Ralph Lauren and even relatively minor names like Penny Black, Camper and Mandarina Duck.

What's even more remarkable is how easily I distinguished between one label and the next. The only brand I own from those I've listed is Camper; I'm not sure I've even been inside a shop belonging to any of the others. Yet, despite my relative ignorance, I find myself almost on first-name terms with each of these fashion blue-bloods.

I'd struggle to say which of these brands is 'best' but I don't think I'd have much difficulty in telling you which brands I like and which I don't. This always strikes me as one of the most useful features of the brand, this ability to stand apart from rivals that have so much in common when it comes down to traditional features and benefits. The brand allows the customer to home in on something other than a list of distinguishing characteristics and make a choice that's based on a much more complex set of ingredients.

As business-owners, we're challenged to move our own offer beyond a simple list of 'reasons to do business' and on to something much more engaging for our customers. Otherwise, we'll find ourselves lost in the dazzling array of the high street where personality and attitude count for so much more than earnest application.

December 08, 2007

The Spoonful Of Medicine

So, a spoonful of sugar helps the medicine go down? Not always in my experience. I have a colleague who typically prefers to leave a bitter-sweet taste in the mouth.

Recently, he loudly upbraided me for some minor detail I'd overlooked before slipping in some sweet praise for the job I'd just completed. No sugar-coating for this patient. Instead, the castor-oil of complaint was deemed a more palatable taste than the more syrupy praise it masked. At the same time, there was no doubting the sincerity of his appreciation. I just had to work my way past the dose of bad-tasting medicine he administered first.

It's funny. You'd think this wouldn't be to my taste. But I find that I much prefer this over the more saccharine flavour of other exchanges in business which leave me doubting the sincerity of what I've just been told. Or worse, they leave me wondering if there's some distasteful truth being kept back that's going to upset me further down the line.

I think it's much the same for others. Too many brands spend their time sweet-talking customers when our preference is for a more honest, if sometimes unpalatable, exchange.

It's no good to us if the sugary treat proves over time to be the more bitter pill to swallow.