brand positioning

Coke is timeless. Pepsi is timely.

Coke is timeless. Pepsi is timely.

Branding Insights
One of a series by John Paulo Cardoso, Spyder Works Chief Creative Officer

As a designer and branding junkie, I have always been fascinated by the marketing machinations of Coca-Cola and Pepsi Cola. As two of the savviest and most successful marketing companies in the world, you might imagine that the two companies would have evolved a similar, shadow approach to branding. But, the way I see it, they come at it from totally opposite directions. Coca-Cola, whose logo probably would have looked the same on Noah’s Ark, has steadfastly traded on its timeless, iconic connection to consumers, while Pepsi seems to juggle the look of its red, white and blue logo like a waverunner. It seems to me that Coke’s branding follows its consumers while Pepsi tries to anticipate them.

Which approach is right for your company?

If your corporate culture is about leadership and maintaining an enduring relationship with your customers, the Coca-Cola model will focus you on consistency, connection and continuous improvement. If you have an aggressive hunter/disruptor culture, the Pepsi model of continuous re-invention will keep your people and your customers on their toes. It will encourage constant re-assessment and promote maverick thinking. My mantra to clients is to be true to who you are and reflect it in your branding and re-branding. If your culture is about continuous improvement, you’ll grow by enhancing and nurturing. If it’s about continuous re-invention, your corporate destiny is finding the next big thing.

Innovations Aren’t Us

Innovations Aren’t Us

Innovation Insights
One of a series by Ken Tencer, Spyder Works CEO

The Merriam-Webster dictionary defines “retail” as, “to sell in small quantities directly to the ultimate consumer.”

The dictionary doesn’t stipulate the size of the store, or even that you need a physical store at all. And this something that many “big box” retailers missed. They were operating on the “If you build it they will come” mentality, which worked for a while – but now it’s not. Last year, sales and profits declined at Toys R Us; Best Buy is closing 50 stores following a fourth-quarter loss of $1.7 billion; and even Walmart performed below analysts’ expectations last year.

The problem: many of these companies have underestimated the changes happening around them. Or as a true student of innovation might put it, they’ve been afraid to make their physical stores obsolete, and now they’re being forced to play catch-up.

If your business doesn’t try hard to make its processes obsolete, someone else will. Businesses, brands, business models and platforms all evolve – creating a need for continuous innovation. In big retail, innovation must focus on developing the right mix of platforms – bigger stores, smaller stores, kiosks, and digital storefronts that you access through your computer, tablet or smart phone – all enhanced by value-added services, education, and the building of dedicated “communities” of engaged customers and other stakeholders.

Can Toys R Us, Sears and Best Buy remain in “retail”? Yes. If, as with any good brand, they develop the right brand platform and a clear brand promise to the customer that differentiates, simplifies and builds trust.

Ten years ago Walmart was supposed to take over the retail world. Now, the Beast of Bentonville is starting to show stress fractures, and online retailer Amazon, with a net sales increase of 40% in 2011, is the new world beater. It’s time for the chains to focus less on what other retailers are doing, and more on what they are not doing: not clearly defining and supporting a customer value proposition.

Toys R Us, for instance, needs to revisit its value proposition and reimagine what it can do for consumers. Can and should it continue to bring toys and baby stuff together (to address the child lifecycle under one roof)? If it’s going to continue selling safety gates and other child-security accessories, should it also provide seminars on child safety, child care, or learning and development? Maybe it can convert some of its surplus space to indoor play areas and party rooms to promote children’s exercise and health. (Maybe it could even host baby showers!)

There is no shortage of innovation opportunities and possibilities. But nothing starts without a vision and a clear commitment to the customer.

Complicating Simple

Complicating Simple

Branding Insights
One of a series by John Paulo Cardoso, Spyder Works Chief Creative Officer & Founder

Today, JCP’s biggest challenge is to differentiate their brand from Walmart and Target who offer a unique, well defined value proposition. For JCP, providing simple shopping solutions to the daily schedules and financial pressures of family life, strikes me as both a strong and relevant brand platform to build on.

JC Penney CEO, Ron Johnson, has done this before — making retail success look simple during his time at Target and leading the wildly successful Apple store launch. Johnson is now behind the recent introduction of the JC Penney (JCP) “Fair and Square” pricing strategy. By offering fewer sales and simplified pricing, JCP is striving to make the shopping experience simpler and more predictable for its customers.

While good brands should simplify the purchasing decision for the customer, if they can’t find their way through JCP’s three different pricing offers ‘Everyday’ low, ‘Monthly Value’ discounts and ‘Best Price’ clearance deals, simple may turn out to be just too complicated.

“No games. No gimmicks” just remember to shop the first Friday of April? I think.