My current internship in a B2B company has been interesting for me, especially when it comes to thinking about branding. At the brand institute, we study almost exclusively B2C companies with well-developed brands. Consumers are exposed to massive advertising campaigns almost every second they spend awake, all in order to build strong brands. But what about B2B?
Not that there aren’t ad campaigns in the B2B world. They exist. But they are rare, and more importantly, your average consumer has no idea what they are selling. And who could blame him? Why should anyone care about a company selling payroll software to other companies? Except that B2B companies still have to deal with customers, just slightly different ones. And in the end, purchasing decisions are still made by human beings.
So here we go: how does a B2B company build a strong brand? What do you do if you can’t spend massive advertising dollars on an ad campaign that probably won’t reach the intended audience anyway?
As it turns out, most companies today, whether small or big, are extremely reliant on the Internet. (just like the rest of us). Which means that one of the best ways for a B2B company to build a brand is to have a top-of-the-line website.
This may seem somewhat obvious, but there are still many companies with mediocre and hard to navigate web sites. When a web site is the main point of contact for a potential client, it becomes all the more important. And I don’t just mean having the logo displayed on the home page.
The actual stuff on the site and how easy to find the stuff is matter too. Anyone who’s spent more than five minutes on a web browser knows how frustrating it is to look for something on a web site that just doesn’t make it easy to find information. Well it’s the same thing for a company seeking to find information about some other company’s product. Which is why any half-serious company should spend some time thinking about how a potential client would go about navigating the site and looking for information. A site designed with the end user in mind, not the IT manager.
Ease of navigation is one thing, the actual content of the site is important as well. Just having text and images is quickly becoming obsolete, especially with the tools available today. Taking screenshots and making a few flash videos are within anyone’s reach and can help enhance any site. One such tool is Snagit, which makes it incredibly easy to take screenshots, modify them and then save them for later. In my opinion, being able to watch a demo of a product online or look at a few tutorials makes a big difference. Who doesn’t want to see a product in action before asking for more information. Especially in B2B, where sales cycles are much longer.
Now there’s more to a website that what I just talked about, but it seems to me that what I mentioned above is a good place to start. I hope I’ve convinced you that in B2B, a good web site is critical for anyone seeking to build a strong brand.
Thursday, July 12, 2007
Thursday, April 12, 2007
Tesco's foray into the U.S
The U.S is by far one of the most competitive markets for the supermarket industry. With the ongoing battle between Wal-Mart and Target, it would seem that the U.S presents little opportunity for yet another retailer. Indeed, many were surprised when Tesco, the British retailing giant, announced that it would be coming to the United States. At first glance, this would seem to be a rather foolish move. Previous British retail giants such as Sainsbury's and Marks & Spencer have failed miserably on this side of the Atlantic. What's more, they are now in rather pitiful situations in their own domestic markets, suffering from the domination of...you guessed right, Tesco.
However, Tesco believes that it possesses the formula to become a real player in the American market by establishing itself in the ultra-competitive West Coast. The twist? Tesco will avoid going head-to-head with supermarket giants Safeway and Kroger. Rather, it is bringing a new store format along, somewhere between a supermarket and a convenience store. The name, "Fresh & Easy", says it all. Clearly, Tesco is hoping to capitalize on current trends in the food industry, which include a growing emphasis on convenience as well as organic and all-natural products. There is reason to believe that Tesco can succeed. While Wal-Mart's forays into foreign markets have been met with mixed results (a strong presence in South America, but complete failures in Germany and South Korea), Tesco has succeed in South Korea and plans to use its experience to conquer the American market.
Moreover, Tesco is counting on its no-so-secret weapon, the Clubcard. While allowing customers to accumulate rewards every time they shop at Tesco, the Clubcard has provided a wealth of information for Tesco marketers and has allowed the retailer to target customers with more relevant coupons and advertisements. It is rumored that Tesco will bring the Clubcard to the U.S in order to replicate previous successes. Will it succeed? For now we can only speculate, since the first "Fresh & Easy" stores have yet to open. However, this new retail format may be just what the market needs and could pose some serious issues for domestic retailers already in the market.
Sources:
http://www.thisismoney.co.uk/news/article.html?in_article_id=409178&in_page_id=2
http://freshandeasy.com/
Wednesday, March 28, 2007
Apple and Emotional Branding
I feel as if there must be millions of posts written about Apple, but I want to get this one out of the way since its been with me for a while. I started taking a look at emotional branding last semester, and it seemed to me that Apple had done a pretty good job of using it with some of its older ipod commercials.
First, what is emotional branding? Well quite simply, it is appealing to the emotions and aspirations of individuals and connecting them with a brand. What it does not include is a discussion of what added value the product brings to the consumer. Now I'm sure that you all remember those ipod commercials: shadows dancing around brightly colored backgrounds, usually to a new song that was sure to become a hit as soon as the ad hit the airwaves.
What made the ad so effective (and ipod sales go through the roof?). It seems to me that the success of these ads lies in their simplicity. You hardly saw the ipod in the commercial, and you certainly didn't find out much about it. But the ads were incredibly cool, the songs were awesome and by the time the ad was over, the message was clear: ipods are cool. And who doesn't want to be cool?
This is not to say that emotional branding is the solution for every ad. Sometimes, you need to actually show the product or give some talking points. But for Apple and the ipod, emotional branding was a perfect fit, because Apple understood that it could get consumers to buy a $299 piece of electronics just be appealing to aspirations (and fairly deep pockets).
First, what is emotional branding? Well quite simply, it is appealing to the emotions and aspirations of individuals and connecting them with a brand. What it does not include is a discussion of what added value the product brings to the consumer. Now I'm sure that you all remember those ipod commercials: shadows dancing around brightly colored backgrounds, usually to a new song that was sure to become a hit as soon as the ad hit the airwaves.
What made the ad so effective (and ipod sales go through the roof?). It seems to me that the success of these ads lies in their simplicity. You hardly saw the ipod in the commercial, and you certainly didn't find out much about it. But the ads were incredibly cool, the songs were awesome and by the time the ad was over, the message was clear: ipods are cool. And who doesn't want to be cool?
This is not to say that emotional branding is the solution for every ad. Sometimes, you need to actually show the product or give some talking points. But for Apple and the ipod, emotional branding was a perfect fit, because Apple understood that it could get consumers to buy a $299 piece of electronics just be appealing to aspirations (and fairly deep pockets).
Corporate Social Responsibility: in a relevant way
"Operating a business in a manner that meets or exceeds the ethical, legal, commercial and public expectations that society has of business. Social Responsibility is a guiding principle for every decision made and in every area of a business.”
Such is the definition of Corporate Social Responsibility, or CSR. In the past few years, CSR has found itself propelled to the top of many corporate agendas in the light of massive scandals for some (Enron, WorldCom) and increasingly negative reputations for others (Wal-Mart). The immediate reaction of many companies has been to dump cash into the first “socially responsible” organization around, and then to claim as loudly as possible their generosity.
But for many companies, the main goal of CSR is to bolster the bottom line by improving brand image, in a relevant way. Ford’s commitment to Breast Cancer Research is certainly beneficial, but not necessarily to the company. Breast Cancer research may tell consumers that Ford is giving money to do good in the world, but not the kind of good that is directly related the company. When consumers think of Ford, they think of cars. And except for a few customers, breast cancer research will not be a determining factor next time they look to purchase a brand-new vehicle. This is not to say that Ford shouldn’t support such research. But to truly make an impact on the majority of customers, an additional kind of CSR would have been needed: one directly related to cars. The environment, which seems to be at the forefront of the news nowadays, is the obvious area where Ford could have made inroads with customers.
Obviously it is not enough to brand oneself as “green” to become loved by customers; there must also be a serious commitment that can be seen in the product line. Ford seems to have gotten the message. Its website features a prominent “Good Works” section highlighting Ford’s commitment to environmental protection and communities. But the result is here: Ford’s CSR did not help the company, and certainly did not help its image. Ford suffers from the traditional negative image of American carmakers, and its financial woes seem to make front-page news every few months. In contrast, Toyota has become sole proprietor of the “green carmaker” image, an image that is reflected in sales and market share. Toyota was among the first carmakers to bring green, fuel-efficient vehicles to the market, and because this CSR is so closely tied in to the product line and what the company is all about, it has been successful. Toyota can claim that its fuel-efficient hybrid vehicles are good for the environment and increase revenues at the same time.
The lesson is clear: corporations should be socially responsible. But if they want to impact customers, they need to make CSR a truly integrated part of the company and its everyday business.
Sources: www.ford.com
Such is the definition of Corporate Social Responsibility, or CSR. In the past few years, CSR has found itself propelled to the top of many corporate agendas in the light of massive scandals for some (Enron, WorldCom) and increasingly negative reputations for others (Wal-Mart). The immediate reaction of many companies has been to dump cash into the first “socially responsible” organization around, and then to claim as loudly as possible their generosity.
But for many companies, the main goal of CSR is to bolster the bottom line by improving brand image, in a relevant way. Ford’s commitment to Breast Cancer Research is certainly beneficial, but not necessarily to the company. Breast Cancer research may tell consumers that Ford is giving money to do good in the world, but not the kind of good that is directly related the company. When consumers think of Ford, they think of cars. And except for a few customers, breast cancer research will not be a determining factor next time they look to purchase a brand-new vehicle. This is not to say that Ford shouldn’t support such research. But to truly make an impact on the majority of customers, an additional kind of CSR would have been needed: one directly related to cars. The environment, which seems to be at the forefront of the news nowadays, is the obvious area where Ford could have made inroads with customers.
Obviously it is not enough to brand oneself as “green” to become loved by customers; there must also be a serious commitment that can be seen in the product line. Ford seems to have gotten the message. Its website features a prominent “Good Works” section highlighting Ford’s commitment to environmental protection and communities. But the result is here: Ford’s CSR did not help the company, and certainly did not help its image. Ford suffers from the traditional negative image of American carmakers, and its financial woes seem to make front-page news every few months. In contrast, Toyota has become sole proprietor of the “green carmaker” image, an image that is reflected in sales and market share. Toyota was among the first carmakers to bring green, fuel-efficient vehicles to the market, and because this CSR is so closely tied in to the product line and what the company is all about, it has been successful. Toyota can claim that its fuel-efficient hybrid vehicles are good for the environment and increase revenues at the same time.
The lesson is clear: corporations should be socially responsible. But if they want to impact customers, they need to make CSR a truly integrated part of the company and its everyday business.
Sources: www.ford.com
Sheetz and the Convenience Store Industry.
After waiting a couple of weeks for the IT guy at work to post some of my blogs on the company website, I decided to take things into my own hands, and here I am with my first post (and first blog). I can't really tell if everyone will be reading it at all, but I guess I should just do whatever it is that the millions of other bloggers do.
So here I go. I've only recently realized that I should write something about Sheetz, but I've been doing some research on them for a while now, so i guess it's only natural. For those who don't know, Sheetz is a convenience store chain based in Altoona, PA. Nothing special so far, just another c-store chain. And that's the thing. The supermarket industry has Target, with its flashy ads and recognizable brand. The best-known c-store chain is 7-Eleven, but you hardly see people going nuts over Michael Graves-designed slurpies. That's when Sheetz came along. And even though they're still far away from being as well-known as Target, I can imagine a not-too-distant future where a lot of people have heard about Sheetz.
Sheetz was started in 1952 by Bob Sheetz, and the company has stayed family-owned ever since. They are now present in 6 states and continue to grow at a rapid pace. A quick look at their website (www.sheetz.com) will give you an idea of what Sheetz is about. Now I don't know about you, but this website is far ahead of any other c-store website i've ever seen. I especially like the feature that lets you try out one of their in-store electronic kiosks where you order freshly made food and then get to see the nutritional totals before ordering it. Now the typical convenience store hardly puts the emphasis on freshly made food. And even if Sheetz does sell gasoline just like other c-stores, it definitely advertises its made-to-order foods and drinks.
The question is, how do they manage to get customers inside their stores? One of the biggest issues currently facing the convenience store industry is that customers will typically drive up to get their gas, pay at the pump, and drive off without ever thinking about entering the store itself. How does Sheetz do it ? For one, their stores are places where you would actually want to set foot. They also offer a selection of foods and drinks that is unrivaled in the industry. And they've made it convenient for customers to shop at their stores, by eliminating ATM fees.
Sheetz has shown itself to be smart in other areas as well. Each new store that opens makes a significant donation to a community charity and Sheetz stores are often involved with children's sports leagues at the local level. In December of 2006, the Sheetz in Altoona, PA, made a $30,000 donation to the town in order to keep the two community pools open for residents to enjoy. By helping communities, Sheetz positions itself to become a community store with strong customer relationships.
Finally, Sheetz was among the first gasoline retailers to sell E85 Ethanol at its pumps. The way I see it, gasoline continues to be the biggest problem of modern convenience stores. Not only does it provide consumers with an excuse for not coming into the store, but it really has acquired a bad image in the past few years given the instability on the international level of oil-supplying countries. Moreover, in the past couple years alternative fuels have become all the rage and anyone who can brag about investing in them early is likely to be hailed as a visionary.
So let's sum it up: Sheetz has cool stores that you actually want to go into, Sheetz invests in the communities where it is present, and Sheetz is forward-thinking on environmental issues. After a couple months of researching convenience stores, I have yet to find another chain that was as far ahead of the pack as Sheetz. If there is a recipe for success in the modern c-store industry, Sheetz may have found it.
So here I go. I've only recently realized that I should write something about Sheetz, but I've been doing some research on them for a while now, so i guess it's only natural. For those who don't know, Sheetz is a convenience store chain based in Altoona, PA. Nothing special so far, just another c-store chain. And that's the thing. The supermarket industry has Target, with its flashy ads and recognizable brand. The best-known c-store chain is 7-Eleven, but you hardly see people going nuts over Michael Graves-designed slurpies. That's when Sheetz came along. And even though they're still far away from being as well-known as Target, I can imagine a not-too-distant future where a lot of people have heard about Sheetz.
Sheetz was started in 1952 by Bob Sheetz, and the company has stayed family-owned ever since. They are now present in 6 states and continue to grow at a rapid pace. A quick look at their website (www.sheetz.com) will give you an idea of what Sheetz is about. Now I don't know about you, but this website is far ahead of any other c-store website i've ever seen. I especially like the feature that lets you try out one of their in-store electronic kiosks where you order freshly made food and then get to see the nutritional totals before ordering it. Now the typical convenience store hardly puts the emphasis on freshly made food. And even if Sheetz does sell gasoline just like other c-stores, it definitely advertises its made-to-order foods and drinks.
The question is, how do they manage to get customers inside their stores? One of the biggest issues currently facing the convenience store industry is that customers will typically drive up to get their gas, pay at the pump, and drive off without ever thinking about entering the store itself. How does Sheetz do it ? For one, their stores are places where you would actually want to set foot. They also offer a selection of foods and drinks that is unrivaled in the industry. And they've made it convenient for customers to shop at their stores, by eliminating ATM fees.
Sheetz has shown itself to be smart in other areas as well. Each new store that opens makes a significant donation to a community charity and Sheetz stores are often involved with children's sports leagues at the local level. In December of 2006, the Sheetz in Altoona, PA, made a $30,000 donation to the town in order to keep the two community pools open for residents to enjoy. By helping communities, Sheetz positions itself to become a community store with strong customer relationships.
Finally, Sheetz was among the first gasoline retailers to sell E85 Ethanol at its pumps. The way I see it, gasoline continues to be the biggest problem of modern convenience stores. Not only does it provide consumers with an excuse for not coming into the store, but it really has acquired a bad image in the past few years given the instability on the international level of oil-supplying countries. Moreover, in the past couple years alternative fuels have become all the rage and anyone who can brag about investing in them early is likely to be hailed as a visionary.
So let's sum it up: Sheetz has cool stores that you actually want to go into, Sheetz invests in the communities where it is present, and Sheetz is forward-thinking on environmental issues. After a couple months of researching convenience stores, I have yet to find another chain that was as far ahead of the pack as Sheetz. If there is a recipe for success in the modern c-store industry, Sheetz may have found it.
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