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.

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.

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.

 

 

 

 

VW: follow-up to previous post

Back on November 11, 2015 I wrote a post entitled “Das Issues: What’s Next for Volkswagen?”    In it, I discussed the emissions scandal, and what I thought the brand could do to start the process of reconnecting with current customers and reaching out to prospects.

At the end of the post, I made a suggestion that went like this:

If I was a brand consultant for Volkswagen, (full disclosure: I’m not, but certainly available!) I would start by going back to what helped build their perception: The dorky little outsider that promised the moon and modestly delivered it. My very next ad headline (think full page insertions in The New York Times, Wall Street Journal and USA Today,) would probably read “11 million Lemons.” And the body copy would go on to overtly apologize for the transgression, and then outline the steps we were taking to make good on our (new) promises and deliver exceptional automotive engineering.

And then I’d invite consumers to come along for the (literal and figurative) ride to redemption. Das Step 1.

So I was just poking around today and saw this article about Volkswagen. As you can see, it’s written on November 17th.  It talks about how VW started running full-page insertions in The New York Times, The Washington Post and The Wall Street Journal.  The headline reads “We’re working to make things right.”  And the CEO apologizes for the transgression, and begins to outline some steps to make good.

Kooky, huh?