Scott Goodson's Cultural Movements Blog

Is Brand Loyalty the core to Apple's success?

Apple has just launched a software update to fix a problem that was draining the battery life of its new iPhone 4S, something that caused a wave of complaints from customers and critics across the globe.

Of course, it didn’t help that Apple apparently took several weeks to even acknowledge the glitch. Or that it came on top of lots of other problems with the new iOS 5 operating system – all of which are now resolved according to the software giant.

But will this damage Apple’s reputation? Is there a growing uprising against the Californian company? Are people ditching Apple to go elsewhere? Is its PR team panicking? It would seem not.

You see, whenever Apple has problems with its products, its customers are incredibly forgiving and patient. They understand that issues can sometimes arise and they’ll continue to buy Apple products despite any mistakes they might make.

But why is there such a huge loyalty towards Apple?

Well, it’s mainly because of the late, great Steve Jobs. Apple is Steve Jobs. Steve Jobs is Apple. People feel like they have a personal relationship with Apple because they’re essentially thinking of Steve.

And when you think about how incredibly passionate Steve was about Apple products, ensuring they were of the highest quality and cutting-edge design, you can understand why people are willing to be lenient.

By creating an emotional connection with its customers, Apple has done the near impossible – it has acquired a loyal following. Brand loyalty has played a huge part in its global success. There’s no doubt about that.

So if people will forgive brands that sometimes mess up, how can you ensure your own brand gets the same kind of attention?

Firstly, you have to build relationships with your customers. And that means being trustworthy and transparent. You do that by embracing the Internet and social media. You can start blogging. You can talk directly to people on Twitter. You can use Facebook to show who’s behind your logo. All of that is obvious.

Secondly – and this is the real key to brand loyalty – you have to carry out some movement marketing. You have to stop telling people about what your company makes, and instead think about what you believe in. And what you believe in has to touch a nerve with your target market.

Steve Jobs did this brilliantly. He told the world that he believed in innovative, high quality products and would always strive to bring the best technology to the market. In fact, Apple’s mission statement doesn’t really talk about what it does; it talks about what it believes in.

It reads: “Apple ignited the personal computer revolution in the 1970s with the Apple II and reinvented the personal computer in the 1980s with the Macintosh. Apple is committed to bringing the best personal computing experience to students, educators, creative professionals and consumers around the world through its innovative hardware, software and Internet offerings.”

With this inspiring mission statement in mind, consider what makes your brand tick. If you’re a car company, don’t put messages out there that say ‘We sell cars!’ Think about something that will tap into your customers’ emotions and go for it. Like, for example, the ‘Against Dumb’ campaign my StrawberryFrog did on fighting big mass over-consumption for Smart USA.

Whatever you choose, you have to believe in something that starts from the very core of your business. It’s no good saying you believe in saving the environment if your company wastes tonnes of paper every year.

Apple’s worldwide success is because its mission statement resonates throughout each and every part of its operations. Brand loyalty begins from the inside out. You can’t fool people and loyalty won’t come so easily.

People who buy Apple products know of the passion and dedication that went into making them. They know Apple is committed to making the best quality software systems and products possible. They also associate Steve Jobs with Apple, feeling as though they have an emotional connection with the company. And that’s why they’re happy to overlook the odd glitch.

But brand loyalty isn’t just about forgiving brands for the odd mistake. It also means people won’t go elsewhere, even if the competition offer lower prices. It keeps revenues high and retains market share. You can see why brand loyalty is a priority for any business.

If you want brand loyalty, figure out how you can connect with your customers and start a movement that you believe in. The rest will certainly follow.

China Is Embracing Thousands of New Brands. Hello Opportunity.

From Forbes:

Where are the new market opportunities for brands? A new report from McKinsey, proclaims that the Chinese have taken to consumerism in a way that would make your head spin and with an ease that would simply be unfathomable a few years ago.

The Chinese are embracing thousands of brands. Having said this, the growth of the market and changes that this growth is bringing is leaving all but the nimblest of companies breathless.

As McKinsey’s 2011 survey of Chinese consumers highlights, China is facing rising inflation, although Chinese consumers are more confident this year than in 2010 about their financial prospects.

For global marketers, take note of the fact that although brand awareness is rising, there seems to be little sign that brand loyalty is following suit. In fact, more and more consumers are choosing among a growing number of favorite brands.

Anyone can write anything on the internet. Just ask Stuart Smith.

In today’s blog “The Politics of Marketing” written by Stuart Smith out of the UK he has made false allegations about StrawberryFrog which are emphatically untrue.

It’s unfortunate that this blogger sees fit to use the internet as a way to make untrue accusations and several blatant exaggerations.

It is no secret that people would be interested in acquiring StrawberryFrog. We have a unique global position. What a shock. Every year StrawberryFrog is approached by possible buyers interested in the agency because of our innovative approach, great track record and our significant blue-chip clients like Proctor and Gamble's global Pampers account, Pepsico and Emirates Airline. We have consistently wooed and won huge global accounts in competition with major corporate agencies.

I always wonder how stories of this sort come up – what is behind the tone and how facts can be so off base. Our business is doing well in the economy, there is one ongoing contract dispute with a former employee, and the claim that our suppliers in New York are not being paid is utterly false.

Which begs the question: what are the motivations behind the “unimpeachable” anonymous source for which Stuart Smith relies on his information. Could it be that a network agency is feeling threatened by our success and trying to undermine us through underhanded means? I suppose that is one approach you could take to try to poach clients. It’s very slimy, but it’s an approach.

BTW, Stuart Smith never tried to contact me about this story. It’s true that bloggers aren’t journalists, but you’d think they’d want to get their facts straight.

Iconic US brands keep on top of their game, so how do outsiders get a piece of the action?

Think you'll find this piece about brand movements by Kathryn Casey genuinely inspiring - enjoy (original post):

I drink Coke for medicinal purposes only, I kicked my Marlboro habit years ago, and my assortment of Apple products has quadrupled in three years. My loyalty to these brands is best described as fickle, but to me they represent something quintessentially American. But in terms of brand, what does being American actually mean?
“America is not a country, it’s an idea… it’s a place where you can be what you want to be,” says Martyn Shaw, president of the consultancy Interbrand. “American brands are about anything being possible—the core value of all of them is optimism.” In other words, how are American brands succeeding? They’re selling the American Dream.

Marlboro country
Marlboro brought us the number one advertising icon of the 20th century, the Marlboro Man. A rugged cowboy riding through Marlboro country, he encapsulated adventure, rebellion and freedom on TV and in print. But due to increasing legal pressure on tobacco advertising, Marlboro producer Philip Morris was forced to find new ways to communicate with consumers.
Event and bar giveaways, a website with a mailing database estimated to contain up to 30 million contacts, price promotions and competitions where the winners get to visit the Marlboro ranch are just a few examples of how they’re keeping in touch with their customers. In short, what they’ve done is to create a brand movement.
According to Nanette Byrnes at Bloomberg Businessweek, “Marlboro isn’t just a brand, it’s an exclusive club for its devotees, who wouldn’t miss an opportunity for a discount and often feel victimized by social pressure and no-smoking laws.” And with over 42 percent of the US cigarette market, the Marlboro movement seems to be a smoking success.

The world buys a Coke
A consumer favorite since 1886, Coca-Cola dressed Santa Claus in company colors and taught the world to sing. The brand is ubiquitous and claims that its name is the second most understood term in the world after “OK.”
Quick to embrace consumer needs and trends, and with an overwhelming cadre of flavors worldwide, Coke constantly changes bottle sizes and designs – with Karl Lagerfeld creating the latest designer bottle sleeve. And they’ve been quick to embrace a fan-based approach to social media, where members are part of an ongoing relationship with the brand. Consumer-generated content plays a key part in all the brands social communities. Fans upload images of where they last enjoyed a Coke, and participate in “Live Positively” where readers can vote for their favorite park and nominate community leaders for a chance to carry the Olympic flag in London next year. The brand’s 33.5 million-plus likes on Facebook are hardly a surprise.

The brand with bite
The most admired company in the United States from 2008, and globally from 2008 to 2010, Apple has cornered brand loyalty like no other. And as the story goes, when you buy an Apple product, you buy an experience.
Fortune’s Most Admired Companies issue had this to say: “This is the company that changed the way we do everything from buy music to design products to engage with the world around us. Its track record for innovation and fierce consumer loyalty translates into tremendous respect across business’ highest ranks.” Which explains why it’s the fastest growing retailer in the US today. And Apple has made it look easy.

Cracking the code
The huge US retail market may appear attractive and relatively straightforward from a distance, but it’s a seriously tough nut to crack. A lot of foreign brands die in the US because they give America something that Americans can do better. For every newcomer success, there are many failures. But European brands such as Heineken, H&M and BMW are doing very well in the States. So how did H&M crack the US code?
For a start, although the US might seem like a fairly homogeneous market with one language and one culture, it’s actually quite a complex place. According to leading marketing communications network, Ogilvy & Mather, there is no such thing as the ‘American consumer’ and no single demographic, or even handful of demographics that neatly defines the American nation.

In a CRMtrends’ consumer demographics report, Ogilvy & Mather argue that US society has fractioned into small groups and become isolated. Thanks to the Internet, say O&M, people with very specific interests are able to reinforce those interests as never before. And now they expect a customized message.
O&M believe keeping up with changing demographics is critical for US market success.

From the country that brought us IKEA
A recent European success on the American market is Sweden’s H&M. Since opening its first store on Fifth Avenue, New York in 2000, the company is now bringing ‘fashion and quality at the best price’ to over 213 stores across the United States.
Although fashion, luxury and retail brands find it easier to enter the US market, it’s not always easy. Isabel Cavill, Senior Retail Analyst at global retail intelligence firm Planet Retail, cites lack of brand awareness, rapid expansion and poorly planned partnerships with US chains as typical reasons why foreign brands fail. Fortunately for H&M, they did their homework.

So what’s behind H&M’s US success? Ranked the 21st most valuable brand in 2010 by Interbrand, H&M has lots of retail muscle. They’ve been around since 1947, so they’re well established. The company’s fast fashion business model means the distance between design and sale is small and inventories are kept low. And that means demand. If customers want to get their hands on one of H&M’s latest designer collaborations, it pays to be in the front of the queue to grapple for the last Lanvin dress or Versace suit. And, with celebrity models replacing the modeling celebrities in the company’s high profile advertising campaigns, the brand commands even more attention.
An H&M Club with a loyalty rewards program, and a social media wall that makes it easy to follow their Facebook, Twitter and YouTube activity, have helped to build a movement around each of the brand’s lines. In 2010, H&M even partnered with MyTown, a location-based game for iPhone users, and helped them to reach an elusive subset of their target group.

The winning formula
Although price and convenience are what American brands do better than anyone else, it’s possible to make inroads in the extremely competitive US market. Scott Goodson, founder of cultural movement agency StrawberryFrog, believes that a brand that can transcend geography and language, instill values that are simple, inspiring and easy to align with, is on to a winning formula.

By building a brand movement, “we are no longer throwing out one-way, localized messages with one global look and feel,” says Scott. “It’s about getting people to love your brand, no matter where they are in the world. And if you can get it right, you’ll become one of the elite global brands that everyone wants to buy in to.”
Sounds easy, doesn’t it?

Restlessness Fuels Marketing Movements

Movement Marketing is changing the advertising universe. Though there may be any number of reasons why people gravitate toward marketing movements, if you’re looking for one central driving force, think in terms of this word: restlessness. The derivation of this idea starts with the noted sociologist and social movement expert Neil Smelser, who theorized that social movements (and Smelser was really talking about Movements with a capital M, the kind that involve freedom, justice, fairness and the like) come about because of a combination of factors starting with social strain. In the most extreme cases, the strain Smelser was talking about could take the form of oppression, which, in turn, could spark revolutionary movements and uprisings.

But the more modest movements that are happening all around us, and that are the focus of my upcoming book about movement marketing, coming out of StrawberryFrog, are more often a response to something slightly less severe than strain. We’re talking more about a sense of vague dissatisfaction or restlessness people may have with some aspect of the culture—there’s something happening around them they’re not quite content with and they be interested in helping to change it (even if they’re not entirely sure how). Going back to Smelser’s social movement scenario, as he sees it, the social strain evokes a response in people that becomes a shared belief (“things must change!”) And at that point, the movement begins to self-organize and gain momentum.

Regardless of whether they’re reacting to large social strains or small stirrings of restlessness, this original group of people who are the first to respond usually form the core of the movement—they are what Smelser (and lots of us) call the “true believers.” The core fans…the provocateurs. They will tend to shape the group’s identity and its early agenda and create an impact that is felt by a wider community. They may even develop a distinct language for the movement—which can be expressed in neologistic or re-purposed words, powerful symbols, code, distinctive attire. These semiotics can help separate insiders from outsiders, fostering a community bond. Most important, the true believers will serve as the evangelists of the movement, helping to spread the word and attract others.

For a real time example of this check out Nicholas D Kristof’s Advice for the Wall Street Protesters Movement.

Does this ad campaign contain subliminal messaging?

From The Sydney Morning Herald in Australia

Advertising experts are divided over whether iiNet's latest ad campaign contains subliminal messaging in breach of the communications regulator's rules.

The telco embedded a two-frame message, which appears for less than one tenth of a second and can only be read when the TV is paused, in its latest ads around naked DSL and iiNet's BoB2 product.

The text contains a URL and the first 100 to visit the page were given a free iiNet gift pack. These have now run out after word of the message was circulated on web forums like Whirlpool, but iiNet is now giving away five iPads in a random draw.
Advertisement: Story continues below

The Australian Communications and Media Authority (ACMA) said it had yet to examine the ad to determine whether it broke subliminal messaging rules. It would only do so if it received a complaint.

However, the Free TV Commercial Industry Code of Practice says licensees must not broadcast ads which “use or involve any technique which attempts to convey information to the viewer by transmitting messages below or near the threshold of normal awareness”.

Ten, during its ARIA awards program in 2007, was the last broadcaster to be pinged by ACMA for subliminal messaging. The program was peppered with subliminal ads for KFC, Bigpond, Toyota, Olay and Chupa Chups.

“iiNet's ad probably does break ACMA rules around subliminal messaging,” said Tiphereth Gloria, digital and social media strategist at George Patterson Y&R in Sydney.

“They're more likely to be aware of the risks but they've chosen to do it consciously, knowing either way it's a win-win.”

She said there were two scenarios, either only the nerds see the message and then spread valuable word of mouth about iiNet's products on forums such as Whirlpool, or the ad gets banned, in which case iiNet receives even more free publicity as people would watch the ad just to see the subliminal frames.

Iain McDonald, creative director and founder of digital marketing agency Amnesia Razorfish, said he did not believe the ad was a case of subliminal messaging as the content itself, given that it is a slab of text, “could not be digested subliminally”.

“Whether it breaches regulation is another question but it seems that reading the message is only possible if a person uses a pause button in this instance and at that point it is obviously no longer subliminal,” he said.

“My opinion is that iiNet are trying to innovate and have some fun with the audience, not manipulate them directly.”

The Communications Council, the peak body representing marketing agencies, is examining whether the ad breaches subliminal messaging rules. However, the issue is so unprecedented that the council said it may not have a firm view until next week.

An iiNet spokesman said the people who bought its products were marketing savvy and saw through traditional pitches, so the company's last few campaigns have taken a “tongue-in-cheek approach”.

“The competition in this ad was a fun way to reward our fans while poking fun at the outdated notion of subliminal TV advertising,” the spokesman said.

The hidden message read: “Wow. Impressive. You not only spotted this in our TV ad, you found a way to read it. That can't have been easy. This whole page only lasted two frames. That's less than one tenth of a second. Well done, sir or madam. We're going to reward your awesome pausing powers with a little gift. Type this link into your browser: iinet.net.au/2framefreebie. And yes, you can tell your friends. But let's keep it to a maximum of a hundred, ok? And hey, watch for more two frame freebies in our next TV campaign.”

McDonald said the campaign could have ongoing benefits as “once word has spread through viral and media people may start associating iiNet ads with embedded hidden rewards and potentially pay more attention and be less likely to skip”.

But on the same token, he said consumers did not like to be manipulated, “not even for a micro second”, and there would be a “backlash” if iiNet was found to have breached subliminal messaging rules.

Gloria said subliminals in TV and cinema advertising had been around since the 1960s, mainly in the US. She said it was “not a transparent, ethical or genuine way of advertising” but it had never really been proven to work either.

“What iiNet have done here is taken the talkability factor related to 'easter eggs' - technology (gaming, programming) techniques of adding fun, hidden features only accessibly by keyboard hacks or lateral thinking – and brought them to an old medium, TV,” she said.

Many advertisers are trying to get around the fact that so many people skip ads. Australian TV networks have been increasingly including advertisements inside the program content itself.

In Britain, advertisers are creating ads that are designed to be viewable at up to 12 times normal speed.

The ads feature lingering shots of brands, logos and famous characters linked to products.

“They say that when viewing on fast forward, you actually pay more attention because you want to catch the moment the show starts again,” wrote Scott Goodson, founder of global advertising agency StrawberryFrog, in a blog post earlier this year.

Chris Coughlan, director of research consulting at analyst firm Telsyte, said he thought iiNet's campaign was smart advertising.

“iiNet wouldn't have Telstra's deep advertising pockets, and this ad will fly through the social media channels and generate much more interest than if it was just a standard TV spot,” he said.

 

Read more: http://www.smh.com.au/technology/technology-news/iinets-easter-egg-may-breach-subliminal-ad-rules-20111026-1mj4a.html#ixzz1btln37jP

Finding an advertising agency in America

As a CMO or marketer, it is increasingly difficult to find the best marketing and communications agency partner for your brand in the US. StrawberryFrog, based in New York, has been delivering for some of the most iconic brands such as P&G, The Gap, Wal-Mart, Heineken, Pepsico, the smart car, BlackBerry, Morgan Stanley, and this latest global work for Jim Beam, Pampers, the city of Dubai and the smart car. But how do clients find the right agency? How do they know if they are truly getting the best service or innovation for their brand? There are so many sources of information. A few companies have excellence in sourcing quality partners such as P&G. However this is not an easy task.

I will be opening day two of the Mirren New Business Conference at 8:30 am on Tuesday 12 April 2011 in New York and looking at this question.

How do you think brands can find the best agency for them? I would appreciate hearing your comments.

The future of Newspapers

News+ concept live from Bonnier from Bonnier on Vimeo.

 

There you have it the future of Newspapers.

My fellow StrawberryFroggers and I spend a lot of time thinking about innovation as it relates to marketing, so it's always nice to see a totally different approach in media from outside marketing. What's most surprising about News+ isn't the idea that you can rise above the 'din of the web' but that someone put a lot of thought into the development and design of a new visual news experience specifically suited for iPad. That news for a mass audience can look so stunning is news to me. Bravo. I for one am already impressed. Is this a new movement?

Nano goes up in flames

An interesting debate is on. Nano achieved an incredible global PR coup when it launched it's new mini mini mini car for the people at the world famous Geneva Auto Show. Now accidents and headlines and questions about quality (like this) are raising questions:

- is their launch a failure? or a still a success?

- is this the downside of hype?

- or do product issues at launch affect the brand?

- is this still a brand launch coup? 

What do you think?

Please weigh in on this debate, please join the conversation here>>>

2016 Olympic Bid Announcement. Down to the wire.

Obama has changed his mind and will travel to Copenhagen this Friday to deliver a personal appeal to the IOC on behalf of the Chicago bid for the 2016 Olympic Games. My friend George Hirthler (one of the very best sports marketers today) who is working hard on this bid thinks this decision may well break the tape for Chicago. Many other people think Obama's decision significantly increases Chicago's chances of winning the games. Many an IOC member has been swayed by the passionate voice of a city advocate. An Olympic win would be a bright and piercing bit of positive news in America this autumn. 

Rio in my mind has the strongest bid. Never before has the Olympics been held in South America. Never before has Rio had such a strong proposal for how they would hold the games, and never before have they had the kind of experience they've mustered over the past few years, having held numerous international sporting events such as the pan-American games in 2007.

A few years back, I was the Creative Director for the 2004 Stockholm Olympic Bid, and Rio was one of the contenders. The Rio bid was very good, though the city remained risky and unproven. The bid process is an enduring multi-year marathon, with an unending list of marketing communications and elements that must be developed and honed, produced and disseminated. Much of the work we did hangs in the Olympic Museum in Lausanne, Switzerland.

The Stockholm Bid film I responsible for:

I worked on the Stockholm 2004 bid with George too. He did much of the writing in the bid books, with a steely resolve and an incredible natural lexicon of Olympic vernacular. But getting back to Rio for a moment, back then it faced a number of problems, many of which have been overcome by a dynamic city that is world class. Today, Brazil is a country on the rise, one of the world's fastest growing economies, Brazilian sport players have inspired people around the planet, and Rio is majestic, fragrant and safe.

It's down to the wire and it's mighty exciting. Both cities would be terrific Olympic venues. The breath-taking Chicago coastline along Lake Michigan, one of North America's five Great Lakes and the grand beaches of Rio would be equally inspiring and soothing to the soul during a hot summer games. Here is the official site of the Chicago bid and here is the official site of the Rio bid.

I'm holding my breath. Peralta the CEO StrawberryFrog Brazil was in New York last week and we were debating the two bids. We talked about how incredible the games would be in Rio and I told him about the beauty of Chicago. In the end after hours of discussions, we agreed that whichever way the IOC went, we would meet up at these games for a celebration. The only difference between the finalists, we agreed, other than Obama's decision to attend the final IOC meeting, is a growing movement of Chicago's citizens wanting the games to go to Rio: Chicagoans for Rio 2016 vs an unprecedented 85 percent of Rio's citizens standing behind the bid. Strange twist of logic but an added element in the nail biting finish.