Category Archives: Consumer Behavior

Consumer Behavior

The confluence of technological innovation and economic circumstance is resulting in the greatest shift in consumer behavior in decades. Smart brands do more than recognize the changes; smart brands embrace them.

posted by Cathy

Jan 25, 2012 @ 3:39pm

The Rise (and Fall?) of Brand Paula Deen

I find Paula Deen to be utterly magnetic. Her allure goes way beyond charm, I think; I want to hang out with her, to sit on that magnificent Lowcountry porch and dish about the neighbors, to be invited over for Thanksgiving dinner with Michael and the boys. (I would bring Bourbon Cranberry Sauce, and it would be a Big Hit.)

Isn’t that just the effect a really great brand has on you? I can see Paula as part of my life, a celebrity friendship as casual and easy as any meaningful relationship in my life.

So I was heartbroken to watch her appearance on The Today Show last week when she announced the Type 2 Diabetes diagnosis. Not so much because of the disease—I believe she will successfully manage it—but because the entire handling of the announcement was such a debacle.

How I wish I had been Paula Deen’s brand consultant when she learned of the diagnosis three years ago. (Of course, the report that her longtime publicist resigned last month after Paula began hawking a diabetes drug indicates the Food Network star didn’t follow the counsel she received anyway.) But I would have made a powerful pitch to her—one she may never have thought about or considered—and that perspective, I believe, could have changed every misstep that followed.

At issue is the protection of a multi-million dollar brand built around the very culprit in this significant and dangerous health diagnosis: rich, fatty, unhealthful Southern recipes. Paula and her team created an empire promoting comfort food, beginning with The Lady and Sons Savannah, Georgia restaurant, then expanding in every direction—publishing of cookbooks and magazines, multiple television shows, an extensive line of signature cookware, online and retail interests. A heavy consideration in the what do we do about this diagnosis discussion, no doubt, was Dean’s endless array of ”strategic partnerships” with other national brands, including Walmart, Smithfield, Harrah’s, International Greeting and Cooking.com, to name just a few.

Here, apparently, was the Protect the Brand strategy:

  1. Wait three years to publicly announce that she has Type 2 Diabetes, all the while continuing to expand—rather than refining—her brand
  2. Form another strategic partnership, but with a drug company rather than a highly respected, mission-driven nonprofit
  3. Make the diabetes announcement during a live segment on The Today Show, an appearance in which she was (uncharacteristically) nervous and disingenuous

How did a brilliant business woman capable of such extensive brand expansion come to make so many poor crisis communications decisions? Contrary to popular opinion, I don’t believe greed is the heart of the issue. (Pollyanna, I know. But I don’t.)

I believe the problem is having a brand strategy based on this flawed core premise:

Brand Paula Deen = Southern Cooking

Wrong. So wrong. This powerful brand is based on one thing that should have been protected at all cost, but wasn’t:

Brand Paula Deen = the authenticity of Paula Deen, herself

I can’t think of another celebrity more utterly charming and disarming in her honesty. Likely to say anything at any time, she lights up stage and screen by saying exactly what she’s thinking—and what we are thinking, too, but are too timid to say.

How powerful it could have been had she announced the diagnosis early, long before she had “something to bring to the table.” What if, three years ago, she’d said:

I didn’t expect this. I don’t know enough. I am afraid.

What if she’d invited us all to take this very human journey with her, changing our lifestyles and habits and menus, one day at a time, together.

Would her brand have disintegrated? Would the Food Network have dropped her? Would corporate partners have abandoned her?

Would we?

I surely don’t think so.

Paula Deen, the person, will survive this misstep, I do believe. But the brand has suffered a severe blow. And the best thing it can do (I sure hope it moves quickly) is to get real about what Paula Dean, the brand, stands for. I, for one, think there is way more there than just another stick of butter.

 

Comment (5)
posted by Kevin

Dec 07, 2011 @ 7:30am

The New Art of Conversation

I’m in planning mode for several clients now, and McKinsey’s much discussed “customer decision journey” is dominating my thoughts. This theory holds that consumers hold a portfolio of brands, evaluate other brands constantly based on peer influencers and decide periodically which brands to add, discard or replace.

The customer decision journey replaces the old purchase funnel, rightfully acknowledging that spouses, children and friends influence our decisions more than advertising, public relations or social media.

It is worth acknowledging that consumers have denied the influence of advertising on their decisions since the beginning of market research. Nevertheless, Gallop’s poll paints a clear picture.

Peer influence and referral have never been more influential than before.

This dynamic is made all the more powerful by technology’s ability to offer everyone a voice, a megaphone and an audience. So what’s a marketer to do?

Start a conversation. Be bold and give consumers something to discuss.

Amidst all the noise about cyber Monday, Patagonia did just that.

There has been disagreement in marketing circles about Patagonia’s strategy. Some have questioned whether or not the approach was sanctimonious.

I love that the company has taken a stand against excess consumerism. Even better is the fact the company started a conversation about Patagonia. No doubt people are consuming less. So why not increase loyalty from current customers and attract new ones with likeminded values?

Comment (0)
posted by Julie

Dec 01, 2011 @ 5:14pm

We’re still sticking together.

The concept of community was very different in the 1950’s. It was a physical place where a group of people lived. It probably had sidewalks and a few white picket fences. But the most important feature was the cluster of people who interacted with each other to form this place.

Many of today’s most successful communities are nowhere to be found, per say. Their address starts with www but their sense of community is as strong and solid as a 1950’s ranch home.

It’s been an interesting evolution to experience. The shift from push to pull is a welcome change for most. Our world is more open. There are more people, more ideas and more opportunities than ever before. Especially when it comes to communities and audiences.

Love bacon? Handmade gifts? Restoring BMW’s? Knitting? Knitting clothes? Knitting clothes for dogs?

It’s interesting we now have so many more spaces to join with other likeminded people. We have professional and social sets we can select and sort at will. And always on our own terms.

The community concept hasn’t gone anywhere. Even better, it will continue to grow and evolve.

In short, the world is becoming more niche, and responsive brands have to embrace this. Differentiating, often to the exclusion of some, is paramount to relevance in today’s highly defined online communities.

 

 

 

 

Comment (0)
posted by Kevin

Nov 02, 2011 @ 4:42pm

Persist or Advance

Occupy Wall Street is proving to be the definition of persistence. Meanwhile, the European debt crisis continues one week after the next. In a better world, crises would at least be short, especially such severe ones. The congressional stalemate continues despite national frustration. I can’t imagine anything worse than being on a “Super Committee.” A regular committee is painful enough.

Meanwhile, Coca-Cola does something beautiful. They turn their cans white for the World Wildlife Fund . This profound gesture reminds me why I love the business of branding. Amidst all the chaos, Coke’s Arctic Home campaign feels like a refuge. A company doing something good, just because it is a good hearted company.

Coke’s white can inspired our marketing strategy for our client Moe’s Southwest Grill. Moe’s is incredibly supportive of schools and children’s charities, and we’re working on ways to further deepen their support at a neighborhood level.

Moe’s reminds me that we have to continually raise the bar. They are constantly tweaking their menu. They were the first retailer in town with Coke’s incredible new Freestyle machine. Better training, improvements to the prep line, and monitoring measuring customer feedback all followed a discussion about marketing strategy.

As the economy continues to strain business, brands easily fall into a mentality of persistence spawned by risk avoidance. I would argue that today’s challenging business climate demands constant improvement and innovation. I invite you to share a Coke with a colleague and start exploring how you might change things for the better.

Comment (0)
posted by Kevin

Oct 24, 2011 @ 9:26am

Otherwise Occupied

I’m trying to understand Occupy Wall Street. It’s ambiguous desperation, and it’s fascinating and puzzling all at once.

We live a country built on compromise, with an economy based on negotiation. At present is only impasse. The political polarization is so vast that thousands are willing to congregate in mutual frustration to no end whatsoever.

Occupy Wall Street demonstrates the power of polarization.

Regardless of your political bent, we nonprofit marketers can learn from the politicians. Too many of today’s marketers are terrified to exclude anyone. They want their messages to have universal appeal. This is the highway to mediocrity.

Great marketing doesn’t appeal to the lowest common denominator. The best marketing creates both a tribe of devotees, and a group of outcasts. The outcasts don’t have to like you, your cause, or your marketing materials. Having loyalists, and some folks that don’t care much for your organization, is indeed a sign of success.

If your target audience is comprised of everyone, it’s time to reassess. Stand for something bold enough to draw a crowd, or your customers may well be otherwise occupied.

Comment (0)
posted by Apprentices

Sep 22, 2011 @ 2:55pm

Course Correction

Nothing quite tops a perfectly written letter. I’m drawn to letters, so I stopped to read a letter from Dennis Pence, the Co-Founder and Chairman of Coldwater Creek, printed on the cover of the most recent catalogue.

He retired after 26 years. He came back a year ago and found something was wrong. He refocused the brand on what it once stood for. He asked former customers to come back. He did it graciously.

In stark contrast is the recent e-mail and blog entry from Reed Hastings, Netflix’s Co-Founder and CEO. Hastings  began with: “I messed up. I owe you an explanation.” His blog entry addresses viral customer complaints about price increases. It then abruptly announces that Netflix will focus on streaming video and a new company, Qwikster, will offer DVD service by mail.

Reaction to Hastings’ letter has been vehemently negative. The company stands by its decisions. CFO David Wells stated: “We have a long history of having been transparent with our customers… We’ll take our licks as we get them.”

There is a lesson here. People hate drastic changes, particularly given today’s uncertain environment. Coldwater’s leadership is course correcting, acting as a brand steward on behalf of its customers, and Coldwater is in control.

I get that Netflix doesn’t want to go the way of Blockbuster. Its leadership acted boldly to evolve the company, and I hope they succeed. Still, their actions were on the company’s behalf, not its customers’. As a result, its customers, or former customers, are now dangerously in control of the brand.

I understand that change is sometimes necessary, and sometimes wise. This week’s letters just make it clear to me that the more selfless a brand’s motive, the better.

Comment (0)
posted by Apprentices

Aug 23, 2011 @ 2:21pm

Inspire Ownership

When I meet someone interesting, I usually ask “What’s your best advice for me?” And then I write it down. As I flipped through my coffee-stained Moleskine this morning (stained being an understated description of this summer’s Great Coffee Spill), I came across this little gem:

Act like an owner. – Chris Colbert, CEO of Holland-Mark

Chris told me a story about an empty yogurt cup. On his way into the office one morning, he noticed a used yogurt cup – just hanging out on the floor of the entryway. It looked pretty gross. Had his arms not been full, he would have picked it up. But they were, and besides, a whole office of employees would be coming in behind him. Someone would surely dispose of it. When he left for lunch, the yogurt cup was still there. He brought the empty cup to their next meeting, where it became an object lesson in ownership and responsibility.

What does it really mean to be an owner? To take responsibility for our investments. We choose to do this or not do this every day. We can be owners in our relationships, in our workplace, with our brand of toothpaste. We get to decide when something matters enough to us to take action.

The key for marketers is understanding what inspires that transition from mere participant to owner. What does it take for a brand to become meaningful enough for a person to claim their part – however small – in that brand’s story?

People step up where their contributions matter.

People who love your brand are more common than you might think – but that doesn’t necessarily mean they’re your brand advocates. I’m a fan of CVS pharmacies. When faced with a choice between CVS and Walgreens, I’ll always choose CVS. In fact, I’d even call myself as a “CVS loyalist.” But I’m not sharing my CVS love with anyone in my life. I’m not a fan of CVS on Facebook. I don’t follow them on Twitter. I don’t know if I’ve ever visited their website. Why? Well, I’ve never been asked. And if I do decide to fan their Facebook page, does CVS actively want to hear from me? Is their online community centered on getting to know and love the people who love them the most?

People step up to be part of something.

We all want to belong. Think about the brands people talk about, the classics they are proud to wear and claim and be identified by. The common denominator is a vibrant community, a sense of group identity. We are more likely to take ownership when we feel we are joining something larger than ourselves.

If you want to create brand loyalists, keep doing the things that make your organization special. And if you want to create chatty brand loyalists, build a community that inspires your employees and your biggest fans to claim their own piece of your brand story.

 

Comment (0)
posted by Kevin

Jun 27, 2011 @ 1:56pm

The Great Insecurity

Are things getting better? It’s hard to tell. Advertising is selling again. TV and radio stations have little to no inventory. Meanwhile, the jobs picture remains bleak and the stock market is sideways at best.

If “The Great Recession” has waned, I suggest that “The Great Insecurity” has begun.

Americans are, quite literally, in the process of settling a steep debt. Household budgets remain tight. Even the unscathed among us now live with a steady trepidation that things could get bad in a hurry. There is that little mess in Greece that keeps lingering.  And while household debt is being slowly retired, rising government debt is the source of debate threatening to stall the world’s economy.

Given this backdrop, it’s understandable that charitable giving has taken a beating. Charitable giving requires some “disposable income,” and our current climate has made every household dollar essential. People need to feel secure to give.

As a result, nonprofits need to closely examine messaging. Many are tempted to amp up the cause, the direness of need. This is a mistake. Consumers have cause fatigue, and they tune out what seems beyond their control.

Success lies in a highly distilled message that states in the simplest possible terms why your nonprofit exists. Done well, it should also be positive.

 

The American Cancer Society’s “Birthdays” campaign hits the perfect note. Sure, star power helps, but the message is the organization’s mission, communicated in the most positive manner possible. It speaks to consumers without the desperation to which so many causes resort.

 

Comment (0)
posted by Apprentices

Apr 27, 2011 @ 9:44am

Marketing Trends: La Vida Local

There are people who go to farmer’s markets. I am one of them. I go because local food really does taste better. I go because, to me, a Saturday morning trip to the farmer’s market is an event, while a normal grocery store trip is a chore. But most importantly, I go because I believe firmly in supporting my local neighbors. And I’m not the only one.

In fact, I’m just one among millions of New Economy Consumers whose values—particularly consumer values—have shifted significantly since the Recession. In the early days of the Recession, people reined in their wallets, and with their wallets, their reach. Consumers rediscovered the beauty and resources of their local world. With this rediscovery, came a commitment to sustainability, responsibility, and neighbors.

Artist Joe Seppi advocates the eat local movement.

The power of the local movement hasn’t been lost on marketers. In fact, “local” is beginning to appear more frequently in product advertising these days. Is “local” the new “green?” It’s hard to tell yet, but we know two things: 1) the local movement is growing steadily and 2) like the green movement, it relies on authenticity to succeed. Of course, this is great news for small businesses, who are perfectly positioned to capitalize on this new economy trend.

But what does it mean if you’re not a small business? Perhaps there’s nothing “local” about your organization at all – and that distinction is core to your brand. Consider what it is about “local” that appeals to consumers. At its most basic, local really means “familiar,” “connection,” and “home.”  When a company understands this, they’re no longer limited by zip code to tap into the power of local.

For example, American Express sponsored Small Business Saturday last year, a national initiative that encouraged shoppers to support local businesses in their towns on the day after Black Friday. Wal-Mart – a super corporation – is also embracing the local movement as part of its new sustainability efforts. Their commitment to sourcing some of their produce locally (within the state) means that Wal-Mart shoppers in South Carolina can purchase SC sweet potatoes and Wal-Mart shoppers in Alabama can purchase AL tomatoes.

Large or small, organizations who want to reach these valuable New Economy Consumers need to emphasize personal connection and the familiar in their marketing efforts.

–Kathryn White

 

Comment (0)
posted by Kevin

Apr 11, 2011 @ 5:42pm

Lonely Days are Virtually Over

A recent Pew Research Center study found that 1 in 3 Americans doesn’t know his neighbors.

As suburbs sprawled, front porches disappeared and screened porches morphed into Florida rooms. Sidewalk parking — heck, sidewalks in general — disappeared, as carports became three-car garages. It’s today’s reality: In our communication-starved society, there’s little hope of neighborly dialogue between the garage and the kitchen’s granite topped island.

Enter the great reboot of the American dream. For the first time since 1950 (when the average size home was a mere 983 square feet), houses are getting smaller. Many people now prefer to rent rather than own. Security has replaced more as the American ideal. So how has this impacted marketing?

Facebook is the current decade’s front porch.

Put simply, people are starved for human connection. On Facebook, people can see you sitting right there, just watching the world go by and waiting for a friendly visit. Human connection via IM, but connection nonetheless.

You can see it playing out on TV as well. Lay’s potato chips wants us to “know the farmers.”

A far cry conceptually from “No one can eat just one.”

California Milk and Cheese is adopting a similar strategy.

Again, the shift is pronounced. “Got milk,” the dairy association’s legendary campaign, focused on the consumer. Now the focus is on the integrity of the product.

What’s key is realizing that relevance is no longer enough. Now there must be value and values – even for a potato chip. Sustainability, community investment and charity aren’t ancillary messages anymore. And the perfect place to parade them is right in front of today’s virtual front porch.

Comment (0)