Pro global business

A few weeks ago, I posted this article offering a few tips on how small business owners can grow their businesses during the recession. As I noted in the post, even in this dismal economy some businesses are thriving.

But for the majority of smaller businesses the focus has become just trying to hunker down and survive the economic storm while remaining somewhat intact.

One of the best examples of small business survival has been in the restaurant industry. The restaurant industry as a whole has seen both ups and downs over the past two years. Price increases in products and supplies, lower consumer confidence, changes in consumer behavior and demand, and less available credit have all had their impact on food services businesses. Yet many are proving to be surprisingly resilient and are successfully weathering the storm.

What’s their secret?

Successful restaurant owners are paying close attention to changes in the market and then adapting to them, they are also focused on developing and defining their brand..

So what specifically are some restaurants doing? Here’s a brief rundown:

Paying attention to quality:

Many restauranteurs are focused on the quality of the experience their customers have when they come to their eateries. This translates into the quality of the food, the service, and the overall level of hospitality. By providing an enjoyable experience, restaurant owners are giving their customers the opportunity to break away from all the dreariness and are in the processing cashing in.

Creating the perception of value:

These days as people look for ways to save money, they need a lot more incentive to spend it on eating out. Put simply, customers are looking to stretch their hard-earned dollars as far as they will go. One successful strategy used by restaurant owners is to focus on their customers’ perception of value. 

But communicating to customers that they are getting a good value (in terms of food quality, portioning, or ambiance) while at the same time not cheapening the perception of the business is actually a delicate balancing act.  It requires sound pricing strategy, menu planning, and marketing. Several restaurants have begun bundling meals, increasing portion size, or adding extras, like a free dessert, to add value while avoiding the appearance of discounting.

Using promotions to draw customers:

Many restaurant owners are also trying to draw customers with a variety of promotions and specials. Some examples include: having a night where kids eat for free or for a small charge, having a theme night, or setting aside slower times of the day or week for special value deals or unique events. Other restaurant owners are experimenting with cooking classes, dietary workshops, or birthday promotions.

Using the Internet to advertise:

The Internet can be an effective and often cheap means of advertising a small business, and this has not gone unnoticed by many restaurant owners. Many restauranteurs rely on a conscientious email marketing campaign, are making sure their business is listed on the popular online directories, and are a maintaining a website.

Emphasizing their unique brand:

All of the previous points are included in this one. The most successful restaurant owners understand the experience and the occasions that their business (i.e. their brand) is positioned for and are focused on building up these areas.

In short, whether you run a foodservice business, or another kind of small business, there are definitely a few lessons to be learned.

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The hapless Washington Nationals took the field the other night wearing the branded uniforms pictured below:

Yea, the uniforms are spelled incorrectly. Can you imagine a major league team sending their players out in misspelled uniforms? I can’t. I’ve seen major corporations re-print hundreds of thousands of dollars in brochures because someone missed a typo and spelled the company name wrong. Shouldn’t your branding mean something?

If you can’t get your own name right what can you get right?

I’ve been harping on Burger King and Quizno’s about their pathetic, gimmicky advertising so I thought I’d show you how it should be done. Volvo seems to stay on their brand identity of “safety” almost all the time. Ask 10 people on the street what Volvo means and you’ll hear “safety” most of the time. Check out these spots and notice how they leverage their branding.

Now these spots aren’t slick, naughty, funny or anything else but on brand. People buy Volvo’s because their safe. I like how they’re tying in the “Luxury of Life” as well. What do you think?

Not sure what is going on with fast food and branding but apparently making bad, offensive ads are where it’s at. Here’s one from Quizno’s that has references to homosexuality and anything else you can see in this sick, offensive spot.

Some memorable lines:

“Not gonna do that again, I burn” Referring to masochism

“Put it in me, Scott” Referring to the phallic name “Toasty Torpedo”

Seriously, what is the brand strategy here? Gay men that are masochists will want to shop for the “foot long”? I just don’t get it? It’s not funny…whatsoever.

Rebecca Steinfort is responsible for Quiznos’ domestic marketing efforts, including building a marketing strategy that attracts and retains guests, determining the overall brand message and media plan, and promoting Quiznos’ Delivery and Catering Program. Prior to joining Quiznos in early 2007, she spent seven years in the telecommunications industry in a variety of strategic, product and project management roles.  Rebecca also spent six years consulting to consumer products, retail, and technology companies earlier in her career.

Help me out here, does this ad work?

This morning I woke up to news that President Obama has fired GM President Rick Wagoner. Which now means the government is running GM, at least for now. I’ll say it again…The government is running GM.

Sure GM took some bailout money, sold their soul to the devil and are now paying the price. But here’s the part to ponder. Obama and his group gave GM and Chrysler a last chance effort to come back with a plan that would get them out of this mess. A plan? How does a company whip up a marketing/financial plan on the spot when they obviously haven’t had a plan for years?

Was it a big surprise that gas prices went up and their products were gas guzzlers? Was it a big surprise that they built copycat vehicles to compete with Honda and Toyota instead of differentiating themselves?

GM and Chrysler have been clueless for the last 20 years. What’s either of their branding stand for? If Volvo equals safety what does GM and Chrysler stand for? Nothing.

Then factor in the unions. What role did they play in destroying the American car maker? So here’s what you have. A company sucked dry from the unions (Obama supports these guys so it’s not their fault), with no vision or brand identity that’s somehow in trouble? There is only one solution for these brands.

Let them die. Before you know it we’ll see new, exciting brands pop up. They will most likely be niched brands that will differentiate themselves. Maybe we’ll get an automaker that just makes electric cars? Who knows but it’s time to let capitalism shine.

The last thing I want my president doing is acting as a CMO!

President Obama is certainly “changing” the way a President communicates with the people. In his latest update he has developed a website http://www.recovery.gov/ where anyone will be able to see where the money will be spent to help recover our economy.

Here’s what he had to say:

“We won’t just throw money at our problems - we’ll invest in what works,” the president said. “Instead of politicians doling out money behind a veil of secrecy, decisions about where we invest will be made public, and informed by independent experts whenever possible. We’ll launch an unprecedented effort to root out waste, inefficiency, and unnecessary spending in our government, and every American will be able to see how and where we spend taxpayer dollars by going to a new website called recovery.gov.”

Kudos on the idea. But in reality his plan is going to do nothing. If you make less than $75,000/year you’ll get about $8/week more. And of course Welfare is increased. Stimulate the economy? I think not.

I like the approach President Obama is taking but he has to deliver (like a product/service). If you look at the Obama branding what he’s doing is really nothing more than sizzle, we want the steak! We need a big fat juicy steak.

What do you think? Do you think his sizzle is “changing” your thinking.

Strangely enough I saw a great commercial yesterday. It came on just as I turned on the TV.

It’s for the Navy Seals:

No words, just the excitement about being a Navy Seal. Join us and you too can become an elite, “stealth” soldier. Then I went to the website Navy.com and they further supported the campaign.

I thought it was right on brand. What are your thoughts?

In the US Virgin Islands a small, family run business made some really great premium rum.

Eight generations of the Nelthropp family have perfected the delicate balancing, blending and aging of the rum. Cruzan is considered to be one of the “cleanest” rums on the market based on the brand’s distinctive distillation process. Cruzan mixes high quality molasses with tropical rainwater, which, through fermentation, is turned into alcohol. The liquid is then run through a five-column distillation process that removes any unwanted elements before being stored away in handcrafted oak barrels to age. This creates distinctive tasting rum – smooth, clean and full-bodied.

For a long time “Cruzan” rum dominated the market place. Tourists threw down their Captain Morgan and Bacardi Rum drinks with distaste. Bring on a Cruzan they screamed.

Walk into any bar in the US Virgin Islands and ask for a dark rum and Coke and it’s ASSUMED that you just ordered Cruzan and that’s what is made. That’s some pretty good stuff if you’re the Cruzan company.

A few years ago you couldn’t find Cruzan in the states. You had to come here to get your fix. Making it hard to get increased its intoxication. Hard to get stuff tastes a lot better than some old bottle out of Joe’s Spirits on the corner.

Well Cruzan just sold out to a big company called Fortune Brands. What do they do with one of the most talked about hidden jewels of rums?

Change it, of course. Smart huh?

Gone is the original (very successful) logo and bottle design. In fact the bottles appear to be smaller (less rum) and the dark rum appears to be lighter?

Here is the old logo and bottle design:

Some points of interest: At the neck there is a raised emboss of a “pirate ship” which blends with island heritage. You can also see the number 2, which means this bottle was aged for 2 years. The older the bottle the more expensive it is. It’s like a badge of honor to give someone a bottle that’s been aged for a long time.

Here’s the new logo and bottle design:

Gone is the ship and numbering system. Big mistake! The font looks Asian. Here’s what Fortune Brands had to say:

DEERFIELD, Ill.– (BUSINESS WIRE) — Beam Global Spirits & Wine, Inc. [Fortune Brands, Inc. (NYSE:FO)], a global leader in premium spirits, is proud to announce the addition of Cruzan® Rum, the fifth-largest and fastest-growing rum brand in the United States, into the Beam Global family. This 250 year-old brand joins the Beam Global portfolio with a fresh logo and sleek bottle shape reflective of the Cruzan craftsmanship, premium quality and rich family tradition.

The brand sold approximately 750,000 cases of premium rum worldwide in 2007 and grew by 23 percent last year in the United States, the brand’s largest market. Cruzan is also sold in the Caribbean, Canada, Spain and the Nordic countries. Cruzan is available in the United States in 50 ml, 200 ml, 375 ml, 750 ml, 1L and 1.75L bottles.

So what do you do with a growing, successful brand? Make changes right? What do you think, did the brand need a change? Or is Fortune messing with tradition? And does anyone think they’ll put the same love and passion into the rum making process?

I was watching TV today when I saw a commercial for a product called Heat Surge. It’s some kind of electrical heater/fireplace. But here’s the kicker….they’re branding it as Amish built.

Now I’m certainly no Amish expert but isn’t electricity against their code?  Here’s an excerpt from a site as it pertains to technology:

The Amish are averse to any technology which they feel weakens the family structure. The conveniences that the rest of us take for granted such as electricity, television, automobiles, telephones and tractors are considered to be a temptation that could cause vanity, create inequality, or lead the Amish away from their close-knit community and, as such, are not encouraged or accepted in most orders. Most Amish cultivate their fields with horse-drawn machinery, live in houses without electricity, and get around in horse-drawn buggies. It is common for Amish communities to allow the use of telephones, but not in the home. Instead, several Amish families will share a telephone in a wooden shanty between farms.

Read more here

If you’re going to focus your brand built by the Amish and tie it to quality why open the door for questions? And is quality associated with the Amish? Does this brand identity makes sense to you?

Sprint has the best deal in town for unlimited calling at $99/month. But here’s what they’re giving up for it.

Voice Command, that went bye bye about 6 months ago. Read my post about that here. Now they’re giving up a branding element that you will be shocked to learn.

Sprint has given up their email. That’s right on December 30th 2008 Sprint will no longer have email for their customers. So I can kiss my brandidentityguru@sprintpcs.com email goodbye.

Can you imagine the millions of emails that are sent everyday through Sprint? Each email that is sent with @sprintpcs.com is another brand building element. Some companies like Blackberry use it as a signature:

Sent by Blackberry Wireless

I guess Blackberry sees it differently.

Sprint’s thinking is our price is lower so we’ll win. Yea, we’ll see how that works out for ya. When my Sprint contract is up I’ll be switching to another provider. I’ve been with Sprint for about 10 years.

Gosh, I wish I had a way for my clients to say my name millions of times a day….

@brandidentityguru.com sounds nice!