Playing through the pause: marketing never stops.

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There was a phrase that was popular in the late 20th century that advised “no one ever got fired for buying IBM.” It was a meme that implied you were making a prudent choice in your technology partner, because IBM was so ubiquitous and so darn reliable, you couldn’t possibly go wrong if you chose to pay the extra fees and engage with such an established leader. (And talk about a GREAT branding platform for IBM!)

Here in 2020, it appears there’s a new version of that old trope as it relates to marketing. It would read “no one ever got fired for being cautious during the COVID-19 crisis.” And if you look around, all you see are brands being cautious. Brands stepping back. Brands holding on to their marketing spend. Brands putting their agencies in lockdown “until further notice.” CMOs, VPs of marketing, brand managers, and other senior executives are in full wait-and-see mode, and some of them have quickly pivoted to warmer and fuzzier messaging platforms in the short term.

If you own or represent a brand right now, it’s likely that you or someone in your organization has ordered a “pause” on some or all of your marketing activity. After all, it’s expensive to “keep the lights on” an operation that isn’t (or can’t be) visibly returning results. And you’d be more than justified for being cautious and for demonstrating prudence with your precious budget.

However, you’d also be violating one of the immutable laws of marketing. And that is to find competitive strategic advantages over the other producers in your category. Hint: now is absolutely the time to do it.

While your competition is sitting on the sidelines, you gain zero ground by sitting on the opposite sideline. Competitive marketing never stops – even when it looks like all marketing has stopped.

Irrespective of your brand category, or what position you own in the category, here are six cornerstone marketing efforts you can put to work right now (without spending tons of money) to gain an edge on your competition:

Focus on or improve your core product/service
Can you add a key ingredient, or replace a less-than-desirable one in your product formulation? If you’re a more service-oriented business, is there a new policy you can put in place that would give you an edge over your competition? (Think longer warranty period, free upgrades, adding value in new or unorthodox ways.)  Put some structure on this.  Give it language.  Give it a name.  Start talking about it.

Add new products or extend your line
If you’ve ever thought about why you’re not gaining ground on your competitors, maybe it’s because you offer limited choices. Think about adding new flavors, new varieties, or new services to your practice. Hiring a new subject matter expert into your practice is almost the same as acquiring a new company, so consider how you can go “wider” in your business, and give consumers (existing or new targets) more opportunities  – and reasons – to interact with you.

Re-evaluate or re-negotiate your distribution deals
Following on the heels of having new products or an extended line, this is a great time to read the fine print on all your contracts. Especially your distribution deals. Can you get more lineal inches in your current deal? Maybe you can reduce costs in some way, since third-party resellers are taking it on the chin right now. They’d be hard-pressed to avoid losing your business, so take advantage of the opportunities while you can. It’s also a great time to hear proposals from new distributors or brokers or affiliates who are also innovating to stay relevant.

Do some research/learn more about what consumers really want (or who your consumers will actually be)
It’s very likely that consumer behavior will be altered in many ways as we either return to normalcy or forge whatever the “new normal” will look like. This is the crucible of competition – find out why consumers may have chosen a competitor over your brand, and see if you can accommodate their desires. Is it price? Is it a personal touch? Is it the ingredients? Is it your location? You’ll never know if you don’t ask, and paying people for their opinion right now makes you look magnanimous as well as appealingly curious.

Think about a new approach to your advertising
We’ve seen many brands pivot to a more “we’re with you” approach in the last several weeks, and it’s likely we’ll see even more message morphs in the coming months. But maybe it’s time for a new thousand-foot strategy. Maybe it’s time for a new tone. Or a new face. Or something classic and familiar. The point is to zig when the rest of your competitive set is zagging (or lagging. Or sagging.  Or gagging.  This is fun.) At the very least, you’ll get more attention, and that’s always a good thing.

Develop at least three strategic marketing plans for your brand
It must be said that no marketing strategist is ever right 100% of the time. So make contingency plans. The marketplace will be different, so make sure you have plans to address whatever those differences might be. For instance, it’s possible one or more of your competitors may fold. So have a talk with your bank (or investor group) and be ready to acquire at a favorable cost (if that makes sense,) or to at least swoop in and grab the lion’s share of that brand’s customer base. It may not be so rosy, so consider what some worse-case scenarios might look like, and script responses to those as well. With so many unknown variables, you can keep your team focused and motivated by creating pre-coordinated plans and putting them in place for virtually any outcome.

Stay in touch with all stakeholders
Speaking of all of this, it’s a great time to have renewed and refreshed conversations with all your stakeholders. Let them know that you’re thinking ahead, and thinking positively. Let them know that they may be called on to think outside the boxes of convention. And most importantly, let them know that they will play a role in kicking the competition in the teeth, and getting ahead when all this uncertainty is behind.

 

Coronavirus CMO Checklist

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As we’ve turned the calendar to another month of dealing with the uncertainty surrounding the COVID-19 pandemic, a lot of brands and agencies are wondering what’s next.  While many brands have pivoted to pandemic-related messaging (see a regularly updated list here,) most are taking a breath, and working hard to plan their next move(s.)

Believe it or not, this forced time-out can be an incredibly useful opportunity on many levels.  Whether you’re the CMO of a global brand that spends millions or an owner/manager of a small to medium-sized business that’s trying to edge out your competition on a regional level, this may be the best time to evaluate your brand and make structural moves to re-position it for success when the world wakes from its medically-induced commercial slumber.

Here’s a quick dos and don’ts checklist of items to consider while we’re all waiting for the refs to say it’s time to get back in the game:

ON POSITIONING

DO reinforce your strategic position, whatever it might be. If you’re the low-cost leader, then now is the time to forage for ways to maintain and even strengthen that position, perhaps by having new discussions with suppliers and distribution agents.  More importantly, if you don’t have a strategic position (or perhaps don’t know exactly what yours is,) you’ve now been given the gift of several weeks and even months to figure one out.  Huddle with your team – or better yet, a consultant or agency – and learn how to articulate who you really are in ways maybe you haven’t before.

DON’T waver.  If you do have a position and it helps the consumer/customer understand what makes you different, do not veer from your course.  You might hear of brands trying to “strategically pivot” into new areas and try to replicate what competitors do in an effort to grab short-term revenue gains or “narrow their gap.”  We’ll probably see a LOT of price manipulation once the markets begin to wake as competition for consumer attention will spike – but don’t be tempted.  If your position is built on quality, or prestige, or speed, or technology, or safety, or any other attribute that you can effectively “own” in the mind of the market, stay the course.  The consumer segment that desires your position will be more motivated than ever to seek it out when this is all over.

ON STAYING IN TOUCH

DO stay in touch with consumers/customers and stakeholders of all kinds. Be a friend in some way.  Be a lifeline if you can.  One of the most compelling aspects of this pandemic is the psychological toll it’s taking on people from all walks of life.  Routines are disrupted.  Rituals interrupted.  And we cannot forget that brands represent constancy and normalcy for so many Americans – perhaps the only two commodities that are in shorter supply than toilet paper. As long as your brand is reminding consumers that you’re still there, and will continue to be there to support them with what they expect of you, you should come out of this national hibernation in pretty good shape.

DON’T brag.  Even if you’re doing the most amazing things right now in your community or in your industry, no one wants to hear how great you are.  Do what you can to serve in this crucial time, but do those things quietly and let the results speak for themselves. Grandstanding is not a good look in a crisis.

ON ADVERTISING AND STAYING VISIBLE

DO advertise if it makes sense and you have something valuable to say. In my last post, I advocated strongly for advertising, and provided several reasons why it’s more important than ever.  I continue to recommend that you stay visible and adjust your messaging to take the current consumer environment into account.

DON’T disappear.  Find ways to stay relevant, even if you’re conserving major expenditures (like media costs.) This is a great time to get more social, expand or enhance your app, send timely email updates and so on.  AND DEFINITELY DO NOT use your advertising presence to take shots at competitors.  You should notice that there’s no “feuding” going on now, even among the largest brands.  No cola wars.  No chicken sandwich smackdowns.  Competitive advertising in the current climate is not only a waste of valuable ad dollars, it’s in poor taste. Consumers are paying rapt attention right now, so behave with your brand as though momma was watching you.  ‘Cause she kinda is.

ON PLAYING THE LONG GAME

DO be prepared (financially and otherwise,) to ride this situation out well into 2021.  It’s clear that some brands will falter during this time as consumers are also re-evaluating their priorities and allegiances.  Staying true to your brand ethos (and reinforcing/refining your position, see above,) can a.) cement the relationships you’ve already worked so hard to forge and b.) make you look darn attractive to those defecting from other brands.

DON’T rush your expectations.  Although confidence is virtually nonexistent at the moment, consumer motivation will be high and will likely surge for many months as the commercial rebound begins.  Expect a tentative but large wave of consumers re-entering the market with fresh perspectives and open minds.  Rushing to grab profits and short-term gains (in an attempt to recoup some recent losses) may preclude your brand from the much more substantial rewards of sustained success and new fans.

20 for ’20

20_for_20Okay, it’s a new year. Some say it’s a new decade (we’ll argue that later, since it’s technically the last year of the 2010’s, but we can all agree it’s the start of the 2020’s.) And while the “resolutions” ship has already sailed, we do want to get the year off to a strong start.

With that in mind, here are 20 ideas, both strategic and tactical, that you can use to kickstart your brand into the new year. Whether you’re a consumer brand, a consultancy, a business-to-business brand, or a non-profit, just giving these a good think should help you improve your marketing efficiency, clarify your plans, and get you in motion.

1. Give your SEO a refresh.
While we all know the value of SEO, a lot of brands tend to “set it and forget it.” And unfortunately, that can actually hurt your long-term chances for optimization. Search engines like to see activity on your site, and this is a great time to reevaluate your keyword plan, write some new (and rewrite some old) content, and add or update both internal and outbound links.

2. Get more interested in data.
Especially your website analytics. Find out who’s visiting, when they’re visiting, and from where they visit. It may give you some good new promotional ideas, or better yet, it may help you reconnect with some customers you haven’t heard from in a while.

3. Reconnect with prospects – even the ones that seem “cool.”
Got a form on your website? Use a call center?  Send something interesting to every person who called or filled out a form last year. They may just be waiting to hear from you again!

4. Get more social.
Sure, everyone says this every year. But for good reason. And it doesn’t have to be agonizing to create relevant posts or content strategies. Try advertising on social, too. The targeting parameters keep getting better, and Your. Prospects. Are. There. All. The. Time.

5. Advertise!
It’s time to stop sitting on the sidelines, or waiting for some magic “perfect moment” to come around for when you’re going to run that “magical” campaign. The truth is, prospects tend to remember the brands who tend to advertise. Start by evaluating your core positioning, and then articulating it simply in a series of adverts.

6. Serve your community in some way.
We all live somewhere, even those of us who are remote service providers. Is there a way you can serve your local community this week, or this month? Perhaps a way you can devote a little of what you do this entire year to a worthy cause? It doesn’t have to be monetary donations. Volunteer your time, or your talents, or organize a board who can tackle an issue. It’s what all the cool kids are doing now.

7. Try a strategic partnership.
Of course, this depends on your brand and what it does. But think about partnering with another (non-competitive) brand. How can your COMBINED offering serve your consumers in a way that you can’t now? And look for a partner who can benefit from what your brand does, too. Hint: think across categories for the really cool partnership opportunities.

8. Do a customer survey.
Do you know what your current customers/consumers think of your brand right now? Ever wonder what they would ask for if they could just get in front of the CEO? Just ask them. It may help you recognize some holes in your offering, and it may help your consumers form a stronger opinion of your brand, too.

9. Refresh your packaging.
Even if you’re not a “packaged good,” your brand is packaged in some way. What you call it, how you dress it, and how it gets delivered – all of these are “saying” something about your brand to the world. And if you haven’t done a refresh in at least five years, definitely give this some thought. It doesn’t have to be anything dramatic, like a full identity refresh, but maybe something simple that speaks to the times, like a typography refresh, or the addition of an icon. Maybe add some color.

10. Add or develop a new product or service, and then market it.
You already know a lot about marketing. But sometimes, things just are the way they are with your current brand, for various reasons. Why not launch something new? Even if it’s a spinoff, or a subsidiary, or a new variety, or a specialization of what you already do. Think about it as a brand, position it carefully, give it a great name, package the snot out of it, and then promote it. You get the added bonus of measuring your success from a zero baseline. It might even get you excited enough to try new products beyond that.

11. Hire a professional to review your marketing.
This is a tough one for a lot of companies. It’s like going to the dentist when everything is fine with your teeth. But if things aren’t going great, and they’re not going terribly, it may mean you’re just standing still. And eventually, that’s going to turn sour. It could be any kind of professional – a branding expert, a media pro, a designer. Just have someone tell you what they see from an objective point of view. Bonus: you don’t have to act on their advice if you don’t approve.

12. Hire an intern.
Even if you don’t need one. There’s a student out there who is desperate for some real-world experience, and they might just get it at your place of business. You get the added bonus of helping/mentoring someone, if that’s your thing. And if it’s not, you may be challenged just to explain your business, and how and why you do things, to someone who has never heard of you. (Hint: that can be very good for your brand in the long run, too.)

13. Expand your geography into a new/specific area.
If you’ve been saying to yourself, “boy we could kill in Topeka,” well, maybe it’s time to take a first step. Explore the competitive set, and see if your brand/service/organization could thrive in a new area, or with a new location. Besides, rents are great in Topeka.

14. Create some new (and valuable) content.
You can always use new, up-to-date content. Even if it’s something simple, like your instruction manual, or your how-to video. Technology is always changing, and techniques are always evolving. If your video is outdated, think about re-shooting for a 2020 look and feel. Take that intern you hired, and have him or her try to put together a valuable infographic that represents your business in some way. Then use your new content to help in your SEO refresh strategy. (Item #1 in this list.)

15. Do something face-to-face.
Put on an event. Run a seminar. Not sure how to serve your community (item #6 in this list?) Organize a charity golf outing, or a run, or a motorcycle ride to raise money for those in need. Find a way to contextualize your brand in a personalized way. Invite everyone – even your competitors.

16. Review your policies.
If you’ve got any kind of policy (payment structures, privacy statements, rules, etc.,) give it a refresh. These are the kinds of things that often get overlooked, because we think no one pays attention to them. But remember – everything about your brand is contributing to what people think of you. Every. Thing. Also, this is a great job for an intern!

17. Get rid of something that’s holding you back.
Maybe it’s that outdated policy. Or an old piece of equipment that you keep delaying to update. Maybe it’s your office space. Heck, maybe it’s your partner(s.) But it’s a new year, and you’re determined to take control of your marketing. So find the thing that keeps “getting in the way,” of your success, and get rid of it. Even if it means doing things in a new way, or changing some core componentry of your business. It might be “the thing” that pushes you forward this year.

18. Add a dash of technology to your business.
What could you automate, or integrate, in some way, to streamline your operations? Do you have an app? Could you increase productivity by moving software to the cloud? Could you use software to predict future needs or expenses to help you account more efficiently? Even if it’s as simple using software to schedule your social posts, adding technology into your day-to-day goings on can help your brand move forward.

19. Decentralize.
If you’ve ever said to yourself, “boy we could sure use more talent in this office,” you might be a candidate for decentralizing. While we all love the idea of personal interaction, the truth is that you can find amazing talent just about anywhere. Why wait for the perfect bookkeeper to move into your ZIP code, when he or she might be looking for work in Topeka? And since you’ve already decided to add technology to your business in some way, setting up your business to enable remote workers is a great way to start.

20. Review (or actually create) your marketing budget.
We love to talk about marketing, but we often hit the brakes right at the starting line, because “that’ll cost too much.”  Too many brands fail to budget for marketing in their strategic planning, and so every marketing opportunity seems like an “expense.” It’s not an expense.  It’s part of doing business.  Decide now that you’ll invest (a minimum of) 5% of your gross revenues to marketing.  You’ll be amazed at what you can buy with that.

Here’s wishing you a great, well-positioned, clearly articulated, successful year in 2020!

Gillette doubles down. And wins big.

A little over four months ago, I wrote a post about the “toxic masculinity” commercial released by Gillette. You can see that post here.

Now, Gillette is back with another ad, and all I have to say is BRAVO.

Bravo for deciding to CONTINUE to engage in an important national conversation about masculinity, and now about gender issues, and now about inclusivity.

Bravo for focusing on a narrow audience, and demonstrating that there’s room for all kinds of conversations around seemingly simple daily routines.

And bravo for – especially for – not abandoning the position the brand assumed in January. To do so would have been cowering, and cowardly. This takes guts at the highest levels of the brand, and it may very well alienate more people…but it’s an important statement at an important time.

In my previous post, I wrote that the “toxic masculinity” commercial was good, but that it stopped short of being great for various reasons, including:

“I wish this spot also involved gender and sexuality issues – toxic masculinity is especially reprehensible towards non-heterosexual males and the LGBTQ universe in general.”

And

“The real test now for Gillette is where they go from here. If they continue to embody this refreshed perspective, and if all their forthcoming ads are aspirational (where we show men aspiring to be better men, especially with and around their female counterparts,) and they continue to use their brand to inspire action and help shift attitudes, then we can look back and say, “See? This was the moment they became aware of who they were as a brand, and the responsibility they bare as a consequence.”

But if they don’t?

Then the market can have at them – and Gillette will deserve every criticism they will likely suffer, not to mention probably losing market share to a host of upstart razor companies ready to eat their lunch.

No pressure, Gillette. But the world is now watching. And you invited us all to the party.”

You can see the new ad here:

 

What some might be missing here is that this ad is NOT about a transgender’s journey, the “transition” as he calls it. (Although most detractors are focused on this singular point.) In fact, if you didn’t know the back story, you might miss it altogether.  The editing and the dialogue shroud this point just enough that it’s not jumping up and down and calling for attention.

This ad is really about teaching old dogs new tricks. And showing how those old dogs teach their offspring their old tricks. This ad is (quietly) a lot more about Dads than it is about their transgender children.

A man teaching his son to shave is an incredibly important milestone in the father-son relationship. (Irrespective of how that son identifies his own gender.) It signals so much about the passage of time, and ushers in an opportunity for the passing on of experience. [And yes, it’s also the perfect contextualized moment to introduce emotion into a discussion around promoting a specific shaving blade.]

One of the core tenets of advertising is “Show. Don’t tell.” In other words, don’t tell people how to use products. Show them how it works when you do. And similarly, don’t tell people how to be an accepting father. Show them what it might look like if you were.

Is it Gillette’s job to poke their noses into national behavior and tell men to accept their transgender children? No, of course not. But it is always a good policy to show how it can be done. Even in an idealized way. And this ad does that very well indeed.

There is a lot of divisive discourse in America today. As the lyric goes, we seem to be “stuck in a moment, and we can’t get out of it.” But it will pass, and it may even get a scant bit better. And maybe, just maybe, ads like this will be part of that transition. (See what I did there?)

Again, Gillette has us talking about these issues, and more importantly, talking about Gillette. That’s a win.

Bravo.

Is THIS the best an ad can get?

A lot has been made of the new Gillette short film entitled “We Believe: The Best Men Can Be.” The spot, which challenges men to take a look at tired masculine clichés, like “boys will be boys,” and mentions #metoo within the first five seconds, depicts several scenes wherein some certain male behaviors have been tolerated almost hypnotically for quite some time.

A group of teens sit on a couch and flip through scenes of female marginalization in situation comedies and reality shows. An executive inappropriately (because he’s pandering,) puts his hand on a woman’s shoulder and starts a phrase, “What I actually think she’s trying to say is…” And so on.

Then, a new narrative starts to form in the video, where men intervene positively in several oft-tolerated situations, including cat-calling, fighting, and bullying. Underneath it all, the voiceover insists that “some is not enough.” And “Because the boys watching today will be the men of tomorrow.”

On its surface, this is an incredibly powerful social statement. And Gillette should be congratulated for boldly making it.

But as a piece of advertising, it may be overreaching at best, and carelessly ineffective at worst. While I can appreciate what it’s trying to do, the ad loses focus in its earnest to say something share-worthy on social media. (Although, in its defense, it has succeeded in doing at least that.)

The modern American consumer does not always make the loftiest cerebral decisions when trying to discern which brands to buy. Instead, they make simple, often one-word phrase mnemonic connections (that brands typically provide for them,) and choose based on how that singular experience makes them feel.

And for the past 30 years or so, Gillette has “won” consumers on a simple concept: the best a man can get. Strong tagline. A simple and understandable position for consumers. Advertising to support it. Not surprisingly, strong sales followed.

But now, Gillette has waded – rather, they’ve taken a rocket-powered speedboat – into dangerous waters that even their historically strong positioning may not be able to weather.

Here’s why.

It’s too little. And it’s too late. And so it looks like a desperate attempt to re-imagine the “appropriate” response. If there was a Gillette spot genie, these would be my three wishes:

  • I wish this spot was made a year ago, when #metoo was really a national discussion being had by, for, and with women. That it comes out now seems suspect.
  • I wish this spot also involved gender and sexuality issues – toxic masculinity is especially reprehensible towards non-heterosexual males and the LGBTQ universe in general.
  • I wish this spot took on the real issue, which is not just how young boys’ behavior gets formed, but more importantly, how that behavior is reinforced when it gets pardoned at nearly every important juncture of their lives.

In all the reaction I’ve seen, no one has mentioned that other brands, including other P&G brands, have tried this approach before, and to great reception. A zillion accolades (and ad industry awards) were showered on the #likeagirl campaign from Always. And the #realbeauty campaign from Dove was equally lauded.

Why is Gillette getting pounded by the social mediasphere? Probably because it’s disempowering. Probably because it’s by males for males, and about males and male grooming products. And that’s kinda not the point.

Probably because, as a brand, Gillette makes products for men that are purchased as much or more by women on behalf of men, and nowhere in this spot does Gillette equate toxic masculinity to domestic abuse towards women. Swing and a miss.

Now let’s be fair.  Gillette attempted to have an important conversation with American consumers, and they handled it awkwardly.  But that is STILL better than avoiding that conversation at all. And if you can imagine this, things are about to get harder for Gillette from here.

When a brand takes on a position, embodied by a bold tagline, then you have to own it – and that can come at quite a cost. The real test now for Gillette is where they go from here. If they continue to embody this refreshed perspective, and if all their forthcoming ads are aspirational (where we show men aspiring to be better men, especially with and around their female counterparts,) and they continue to use their brand to inspire action and help shift attitudes, then we can look back and say, “See? This was the moment they became aware of who they were as a brand, and the responsibility they bare as a consequence.”

But if they don’t?

Then the market can have at them – and Gillette will deserve every criticism they will likely suffer, not to mention probably losing market share to a host of upstart razor companies ready to eat their lunch.

No pressure, Gillette. But the world is now watching. And you invited us all to the party.

A big-bet Juul in Altria’s crown

Big news in the world of big brands: Altria has taken a 35% stake in Juul, the privately-owned California startup that has taken the e-cigarette world by storm with its signature sleek-black vape pen, and a tidy 70% market share in the process.

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The deal, reportedly worth $12.8 Billion, unofficially gives Juul a $38 Billion valuation, more than twice the valuation it received just six months earlier after a $650 million infusion of cash valued the brand at roughly $15 Billion. The new valuation makes Juul more valuable on paper than Ford, Target, SpaceX and Lyft. This in just over three years, when it was introduced by Pax Labs. (Juul spun off as an independent company in July of 2017.)

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In and of itself, this is just moderately-sized investment news by big-brand standards. And naturally, the question has arisen: why would Altria (the owner of Philip Morris, who manufactures and markets the leading cigarette brands in the US,) take a major stake in a company whose goal, according to Founder James Monsees, centers “around the idea of making cigarettes obsolete?”

It’s kind of simple, really. While Philip Morris has been trying to invent its own cigarette alternatives – it owns iQOS, a heat-not-burn concept sold outside of the US and has reportedly invested more than $4.5 Billion in it over the last 10 years – it found a company that has out tech-ed them and outsold them in just three years. Kind of a no-brainer: if you can’t build it, buy it.

From a marketing perspective, this is a pure (and big) horizontal line extension. Philip Morris is not going to stop selling cigarettes anytime soon – not when their Marlboro brand is the category leader in a roughly $100 Billion US tobacco market. But they are girding against their slow and steady demise by diversifying their tobacco portfolio.

Current Juul advertising features testimonials of former smokers talking about how Juul has helped them to quit smoking actual cigarettes.  And their off-the-line marketing campaign, focused almost solely on social media, featured celebrities (like Dave Chappelle and Katy Perry,) as proud Juul-ers.

This investment may just be a pre-IPO valuation manipulation. If Altria is looking to capitalize on any opportunities it can find, it may just be pumping up Juul’s value so that it can drive eventual profits right to the bottom line, whether it cannibalizes their cigarette business or not.

And it may not be that nefarious at all.  Altria has a duty to its shareholders to seek out opportunities, and one way to do that is to segment the market and give their target audiences what they (both) want. Cigarettes for some, e-cigs for the rest.  If you’ve got the resources, why not own the leader in both categories?

Concurrently, Juul is undertaking several clinical studies to drive evidence-based claims ahead of their required submission to the FDA in August of 2022. Imagine what their value will be with any kind of favorable decision (and some accompanying language that sniffs of a “safer than cigarettes” authorization,) then?

And remember that Juul is hardly standing still. This is a brand still very much on the rise. They’re currently developing a product (for introduction into global markets outside the US) that will be a “connected device,” essentially keeping users informed of their day-to-day usage. It’s no wonder they’ve been called “the iPhone of e-cigarettes.”

Smoking has gone high-tech, and at least one dinosaur is girding against its extinction with a healthy investment in a vaping future. So let’s start the countdown: a Marlboro Light-flavored Juul pod in 5-4-3-2…

Dunkin’ Is Nuts

The news has officially come down, (although it’s been in the works for almost a year,) that Dunkin’ Donuts, the international (yes, they have stores in 36 countries,) brand that was established nearly 70 years ago, is changing its name.25_Dunkin_Before_After_c4885e75-fe56-4add-aab3-a51120689229-prv

They will no longer be Dunkin’ Donuts, but will officially change their name to simply Dunkin’ as of January, 2019. According to the company’s official press release, the plan behind this switch is to transform the company into a “beverage-led, on-the-go” brand.

To cut to the chase, this is a bad idea. A really bad idea.

Let’s start at the beginning. Dunkin’ Donuts dominates in the donut category, leading Krispy Kreme and Mister Donut by a long way, and by a wide margin in terms of number of stores.

The brand also competes in the coffee category, and meets a strong and persistent consumer need in that area. And for decades, Dunkin’ Donuts coffee has established itself as unique, based on flavor profile (and, some would argue, sheer temperature.)

As the quick-serve coffee category has expanded in the last 20-30 years, and has come to be dominated by Starbucks, Dunkin’ Donuts has pivoted to offer more varieties and flavors of coffee and espresso drinks, and has achieved a strong challenger position. According to Statista, Starbucks has almost double the market share volume over Dunkin’ Donuts in this category, and slightly more than all others combined (not including Dunkin’ Donuts.)

So if you’re a challenger brand in any category (and this has turned into a classic leader/challenger category like Coke/Pepsi or McDonald’s/Burger King,) your goal as a brand should never be to appear MORE like the leader. The goal is to establish difference.

And DONUTS is what makes this brand special.
DONUTS is what makes this brand DIFFERENT.

Now, the Dunkin’ brand will still carry donuts.  But when you don’t tell people that it’s what makes you different, (say, by including “donuts” in your brand name,) who’s to say that consumers will inherently know? Especially young, entering-the-market consumers who may not be familiar with the brand’s history?  What will Dunkin’ mean 10 or 20 years from now without context?

The idea of changing the name to Dunkin’ at all seems wholly misdirected.  When the press release states that you want to be a more “beverage-led” brand, the slang word “Dunkin'” doesn’t say “beverages” at all.  What’s more insulting is that the name referred to the verb of actually. dunking. donuts. in. coffee.

So let’s review:  Dunkin’ Donuts is perceptually and verbally moving AWAY from the category they dominate, and CLOSER to a category where they challenge a leader who owns nearly twice the market share, and where their only competitive advantage is average price.  Sounds like a frozen-double-mocha mistake in judgment to me.

Dunkin’ (as they will be called in a few months,) should stick to what they’re good at – good coffee and family-friendly offerings served in modest stores at moderate pricing. AND LOTS AND LOTS OF DONUTS.