Is your brand loved? Is your brand authentic? The first question is usually harder to answer. The latter is often overlooked. Both are important for a sustainable brand.

Starting with love, Brand Love gives you the ability to say “I’m sorry,” and those customers that really love your brand will continue to stay with you. Denise McCluggage, in a recent column for Autoweek (I’ve been a subscriber for 25+ years now), write beautiful prose on the topic of Brand Love in Love and Recalls. Please read the full story. The short is to recall the car in your past that you most loved and no longer drive, or own. Then after a brief pause, remember why you don’t drive that car anymore. Do you still have a smile on your face, or find yourself holding back a laugh? I’m going to go out on a limb and answer “Yes” for you. You still love that car. Mine was a 1972 Lotus Elan +2 S130. I loved that car. Even though I had to get my nails dirty on weekends to get it drivable for the next week. Or that it had no A/C and I would be sweltering in the Summer on drives from Berkeley to Fresno to visit friends. Reliable? Never. Fun? Absolutely! I loved that car.

In the same issue of Autoweek, K.C. Crain, in his column Zero to Sixty,  gives a lesson on Brand Authenticity in the guise of NASCAR’s Car of Tomorrow. In the worst case of what my wife says when I show her a new car on the road, – “It looks like a Ford Taurus.” (And one from 10 years ago to boot!) – all the cars look the same. Ford Fusion, Chevy Impala, Dodge Charger and Toyota Camry. No authenticity at the race track. How do you expect your customer to recognize your product on the street when what they see on the track has no resemeblance at all. A Ford Taurus indeed. And to complete the masquarade, the engines are completely outdated. They run with carburetors. Which is fine until you realize that the car you drive today uses fuel injection. And in the case of Toyota, they run an engine in NASCAR never built for production cars. How authentic is that?

Of the three Detroit automakers, Ford is the only one going forward (and quite successfully) without government assistance. There are many reasons for their success. The products, the people, and their brand vison, mission and values. In a recent FORTUNE article, Fixing Up Ford, we get a behind the scenes look at how the new CEO, Alan Mulally has transformed Ford over the last 3 years.

It is clear that Mulally knows the value of brands and the value of values. On his first day, when reviewing the future product lineup, he noticed that the Taurus was missing. He asked why. The reply was that they had “made a couple that looked like a football…and they didn’t sell well, so we stopped it (using the brand) .” Mulally’s comment was “How many billions of dolalrs does it cost to build brand loyalty around a name?” The marching orders following the meeting was for the product team to “make the coolest vehicle that you can possibly make (and name it the Taurus).” His point was that poor product can easily damage or even destroy a brand and instead of abandoning the name, go and fix the real problem. And yet, the old Ford was willing to give up on the investment it had made in the Taurus brand for over 20 years and begin the process again of building brand loyalty around a new name. What waste.

Now two years later the payoff arrives with the new Taurus which has been met with postive reviews in the automotive press. Finally, the right product to deliver on the promise of the Taurus brand. The learning here is is that product and brand are inextricably linked. Both need to be in harmony with product leading the conversation. As I’ve been know to share with others, my observation is that until you get the product right, you have no brand.

Mulally also knows that for a company and brand (in this case the Ford brand) to succeed, requires focus and dedication to one vision, one mission and one set of values. He calls it ONE Ford, with the mission statement and four goals (expected behaviors) printed on two sides of a plastic card (business-card size). Every employee has one. As Mulally says, “…I wrote it, It’s what I believe in. You can’t make this shit up.” Right-on!

And finally, what has made me a fan of Mulally is his openness and complete transparency. And he uses a sentence, I’ve come to embrace. At at early meeting with employees upon joining Ford in 2006, the question on everyone’s mind was “Will Ford make it?” His reply was “I don’t know.” “But we have a plan…”

I’m still amazed – and grateful – that we continue to have real-time examples of businesses poorly executing their brand story. GM’s brand woes continue to fill the print and online space. They are trying hard to convince consumers to give them a second (or is it third or fourth…) chance at becoming their car brand. In the words of Susan Docherty, VP of Buick and GMC, “We need (Buick) to be relevant and we aren’t today.” Docherty is referring to today’s consumer – younger, more discerning, with higher expectations – that has zero loyalty to GM’s brands.

Great quote. Unfortunately you don’t change perceptions or capture these consumers overnight. The rule about brands is that if you nurture them, they will flourish and grow. If you neglect them, they whither and die. With most GM brands, it’s been a long-term case of neglect that only needed the recent financial credit crisis to push them over the edge. While the products had turned around, the brands had lost their relevancy.

What is GM to do? Well, first I would suggest ditching the advertising that talks about how we didn’t listen to our customers in the past and now we will (really?); and that the New GM will be stronger, better, more fuel efficient (really?), innovative, etc., etc. I’d call it greenwashing if we were talking about eco or sustainable products. I need a new term here – carwashing? I digress.

Instead of buzz words and 30-second sound bits, GM needs to focus on clearly defining and articulating the story of the remaining brands in the portfolio. Each brand should have a story that is authentic, memorable and meaningful to today’s consumer. Each should be clearly distinct from each other. And once the story has been penned, tell it over and over again – a thousand times.

Tell it with conviction and follow through with your products and service. Tell it with empathy and do the little things to make someone’s day. Tell with humor to show you are one of us. Tell it like you want your customers to tell it.

So, what’s your story?

Today is a big day in the business world. GM declares bankruptcy. You can read the numerous stories on the ripple affect this will have on the lives of many people beyond those employed by GM. Is it a wonder that the US government has taken a 60% stake in the “New” GM to “save” jobs. Will it be enough? Who knows. Maybe the more important question —  is GM a brand worth saving?

Looking back over the 100 year history of GM with my brand-goggles, I belive GM died over 30 years ago. It just didn’t know it. Even prior to the OPEC energy crisis in the 1970’s GM had begun to lose it’s way. The passion to create automobiles and brands people love began to fade quickly from that point on. The products were not the standard of quality anymore. For a long stretch, you could not tell a Chevrolet from a Cadillac (Remember the J-cars?). Innovation and leadership gave way to short term profit and increasing production to maintain their #1 standing as the largest automobile company in the world. While GM, Ford and Chrysler fought against higher fuel economy standards, the rest of the automotive world embraced them and moved forward. Now in bankruptcy, GM agrees with higher fuel economy standards. How times have changed.

When you look at GM from that perspective, it is not surprising that “loyal” American automoblie buyers went elsewhere. First to German brands. Then Japanese. Now Korean. Next Chinese?  Jaime Kitman, writer for Automobile Magazine wrote in this latest column that at a certain point over 87% of Saturn buyers did not know they were buying a GM product. I’m not sure if that is good or bad news.

My quick take-away is that GM has a tough road back. By shedding brands (Pontiac, Hummer, Saturn, Saab) and focusing on their core brands (Chevrolet, Buick, Cadillac and GMC) they might have a chance — if they really have the passion to built great automobiles. Having seen the new 60-sec. spot for the “New” GM by Deutsch, I’m not holding my breath. If GM has any chance at all, they need to change the conversation.

Want to read more on GM? Here are some article I found interesting:

GM turns 100, September 16 2008 , MotorTrend

GM and Me, Alex Taylor III, Fortune Magazine

When Bad Things Happen to Good Brands: Won’t Someone Save Saturn?, Jamie Kitman, Automobile Magazine

Last Saturday, I went to my Haas School All-Alumni Reunion Conference. This one was particularly significant as this would be 20 years since graduation from the MBA program. About a dozen of my classmates were in attendance, many I had not seen in 10+ years. I got some very surprised looks by many of the newer alumni when I told them it was 20 years ago that I did my graduate work at U.C. Berkeley. Nice to know I can still pass for my young-thirties! But I digress. We had some great speakers that day — from the faculty, alumni and our keynote speaker Biz Stone, co-founder of Twitter. The lecture that resonated with me the most was from Professor Rashi Glazer.

A marketing guru (my words), Prof. Glazer was able in one short hour to enlighten the audience with simple insight and clarity on the future of marketing. Gone are the 4 P’s of marketing, In are the 4 C’s. And they are: Communication, Customization, Collaboration, Clairvoyance. Easy right? Well maybe the first three. A little more about the 4 C’s in a moment. The bigger questions is why this dramatic shift from one of the fundamentals of marketing that has been the core to most strategic marketing plans?

The answer is quite simple. The world we live in has changed. You’ve read, seen, heard and experienced it. Technology has fundamentally changed the way the people interact and buy products. Daniel Pink wrote about this in his book A Whole New Mind.  And our everyday experience connecting on Amazon, Facebook, Twitter and other social networking avenues—the “crowdsphere”—confirms that. The conversation has changed, and so how you must market.

Prof. Glazer put it very simply, we have now, “evolved from Dumb Markets to Smart Markets.” Using the clinical definition of “dumb” – the inability to speak, his point was on target. In the past, the consumer was perceived to be dumb. Not that they did not speak, but rather their voice was not heard or many times ignored. Since the late 1990’s consumers have become smarter and empowered. Today they have the tools to make sure that their voice is heard. And those companies that have realized this shift from dumb to smart markets have been able to sustain themselves and even thrive during this recent downturn. IBM, Apple are just two that continue to grow market share, revenues and profits. On the other hand, those companies that have not evolved, are facing extinction. You can read their names in the paper or online everyday.

So back to the 4 C’s. The first is Communication. You have to communicate at every touch point. Not about facts, not about benefits, you have to communicate who you are on a personal, intimate level. Give your customers a reason why you matter. And conversely you need to understand your customer on the same level as well. You’re not trying to be their BFF. You just need to show that you truely care about them and are their to make their lives better.

The second is Customization. How can you make them feel your product was created just for her? It may not be your product at all that does this. You may require outside partners to achieve Customization. Take the Apple iPod for example. You can have the lastest Nano in 9 colors from Apple. Or if that doesn’t satisfy you, there are others who offer skins, cases, custom paint job, etc. to make it personal. I did it to my MacBook. The lid now sports a real teak veneer skin from iamhuman.

The third is Collaboration. Or if you prefer, co-creation. To do this, you need to be good at the first C—Communication. Invite your customers to be part of the creation process. Who knows what new opportunities they may introduce you to. Honda began over 60 years ago building motorcycles. Now they build airplanes and robots.

And finally the fourth is Clairvoyance. The best have it. The ability to see into the future, to anticipate what their customer (existing and new) will desire. The more you do the first three—Communication, Customization and Collaboration, the easier Clairvoyance becomes. Really.

I’ve just scratched the surface on Smart Marketing. There’s much, much more, stay tuned.

In-N-Out Burger celebrated 60 years of their unique burger-joint brand in 2008. On April 14, 2009, a book on the company arrives at a bookstore near you. Here is an excerpt of the Amazon review by Brad Thomas Parsons:

With In-N-Out Burger: A Behind-the-Counter Look at the Fast-Food Chain That Breaks All the Rules, BusinessWeek writer Stacy Perman presents a chronicle of how a family-run California hamburger joint went on to become an American pop culture icon. Founded in 1948 by Harry Snyder and his wife Esther in Baldwin Park, CA, In-N-Out Burger attracted a cult-like fanbase of cruising teens, surfers, and celebrities alike (who developed a secret shorthand for custom orders). As they expanded slowly over the years across California and into Nevada, Arizona, and Utah, they never sacrificed their core customer-service values and commitment to quality.

While I’m not a regular customer, I do enjoy a Double-Double with grilled onions (special order) on occasion. I was at our local Mill Valley location this past weekend with the family in the mid-afternoon for a late lunch. My oldest daughter and I on our Vespa 150 after a nice ride. I’m always amazed at how busy it is with lines usually out the door almost anytime of the day. A late Saturday afternoon was no exception.

From my perspective, In-N-Out is a great example of a sustainable business through great brand practices. Their founder, Harry Snyder, had a motto that continues to be the focus of the brand , “Do one thing and do it the best you can.” They have never had to change their conversation over time because, they changed the conversation 60 years ago and continue to have that same, unique and compelling conversation with their customers day after day. The burgers have never been frozen. The fries are hand-cut fresh throughout the day. The buns are baked using old-fashioned, slow-rising sponge dough. The menu is as basic as it gets—burgers, fries and drinks. And that is where the story and conversation gets interesting.

If you are a regular, a loyalist, you become aware of the “secret menu”, with the most popular variations now published by the company on the website, as the “not-so-secret menu.” (You still won’t find them on the menu board.) The best part is that no one knows how the secret menu ,or more correctly, the insiders code came into existence. It’s been passed on entirely by word-of-mouth through the years. By letting the customer take “ownership” of the secret menu, In-N-Out established a stronger bond with them. No menu additions to confuse the customer or employees, no more complexity to the original business formula. Just plain old-fashion conversation between friends.

As you look at your brand communications, does your customer own part of the conversation? Are you listening to them and supporting them? If you are not having the conversations you would like with your customer, maybe it’s time to stop talking, sit back, and listen.

We can all agree that bringing the customer into the conversation is an important step in building sustainable brands. And more important is having the right conversation with your core audience. Randall Strossen, President of exercise-gear maker IronMind Enterprises, recognizes that the right conversation is about attaining the unobtainable. Huh?

Yes, you heard it right. For IronMind’s “Captains of Crush” line of hand grippers, the challenge for his core audience is to close one of their hand grippers. For many customers that feat is unobtainable. And yet they keep trying. Their ultimate (to-date) hand gripper is the No. 4. It takes 365 pounds of pressure—about as much as it takes to smush a potato—to squeeze it shut. Introduced in 1994, only FIVE individuals have been officially recognized by IronMind to successfully accomplish that feat. Think about that, only five individuals in 15 years!

By focusing the conversation on attaining the unobtainable, IronMind has been able to build a hand gripper brand that leads the category. The product line has grown to ten hand grippers of various grip strength to invite others to the challenge and also to attain the unobtainable. Like today’s digital games, getting to the next level is the goal. No, you won’t find a “whimpy” hand gripper in the lot. Strossen has been diligent about keeping the brand true to its core brand story.

As part of staying true to the conversation, and connecting with it’s loyal customers, IronMind sponsors strength contests and sells products for and by it customers. You can buy a $4 luggage tag that reads “A special grip guy.” For you next workout you can listen to a $8.95 CD of a song composed by a customer. Want a trophy case to display your hand grippers? They have that as well.

In summary, IronMind has established an authentic, memorable and compelling brand story focusing on attaining the unobtainable and reinforces that story in all brand touchpoints. Now that is a model for success!

Source: BusinessWeek SmallBiz – Marketing Feb/Mar 2009

You’ve read it in the NY Times, on TheDieline, on BNET and other news sources. Arnell Group’s redesign of the Tropicana Pure Premium line has been recalled. This is big news in the branding and design community. I believe this is the first time that a package design has been recalled and replaced by the previous design. Usually our profession is all about innovating the future not regurgitating the past.

Like many of my branding and design colleagues and more important, Tropicana’s loyal consumers (I include myself as a 20+ year loyal drinker – Grovestand, please), I share many of the same misgivings of the Arnell design. My first experience with the new package was in our studio refridgerator. I said to myself, “Why are we buying generic orange juice?” Only after a second, longer glance (something that real-world consumer may not do) did I realize it was Tropicana. Wow! What a change.

And since I’m all about Changing the Conversation, I applaud that Arnell Group and Pepsi Co. were open to dramatically changing the packaging/conversation with their consumer. The big misstep from my perspective is that they got the conversation wrong. And when you start with the wrong conversation, every branding touchpoint thereafter is doomed to failure. The true expression of the Tropicana Pure Premium brand story was never about the glass of orange juice, the end result – anyone can serve you a glass of orange juice or any other juice, it’s ubiquitous. No, the true expression of the brand story was and has always been the orange itself, the before state, the pure state, unaltered. Straw or no straw. As important, this brand story about the “Orange” was authentic, memorable, meaningful and ownable. The glass of orange juice?

Think of all the other brands that continue to compete with Pure Premium. It’s always an uphill battle. They don’t have a better, different or more compelling brand story to tell. Tropicana hit a home run from the start and wisely stayed true to that story until the Arnell design.

Does the decision to go back to the previous package design mean that the conversation has plateaued? Will the brand and thus the package become tired and uninspiring to a new generation? The answer is a resounding NO. There is room for change and innovation. The key is to be clear about your brand story, and the conversation you are having with your consumer. The right package design will reveal itself. And while the new branding and package design may be dramatically different or unexpected at first glance, your consumer will be saying, “Yes, this is my Tropicana.”

Want to read more? Here are a couple links we find informative on this topic.

Peter Arnell explains the new package design in this video posted on AdAge.
Matt Everson, founder and principal of Astuteo, a web development firm, dissects the new vs. old package design, here.
Sean Silverthorne, editor of HBS Working Knowledge comments on the role of the consumer in this post on BNET.

As the sun set, I finished day one at the Palm Court with Indian food, a glass of beer, and smart conversation. All natural and organic of course! Today was about learning and getting a sneak peek at some of the products that will be exhibited the next three days.

In the morning our Brand Engine team (Heidi, Eric and I) listened to four speakers – Patrick Rea, Michael Movitz, Carlotta Mast and Bob Burke – bring their perspectives on the year ahead. With two different research methodologies, Patrick and Michael forcasted similar growth rates for the industry in the coming year. Somewhere around 7.5% and that the years of double-digit growth rates may be history. The only exception, is the natural household products which is still an emerging category.

Michael, in his analysis of the industry, provided some important insights on the natural products consumer and marketplace. Focusing on the consumer side, here are the key insights:

• The top two consumer segments (very committed, 3% and heavy, 17%)  purchase 80% of all natural products
• The top two consumer segments have increased their spending 12% over the last year. The next segment (transitional, 25%) was down 12% and the last segment (trial, 55%) was down 1%
• Strongest growth is expected in the Natural Standard (e.g. Seventh Generation) and Specialty Natural (e.g. Late July) categories – both considered “authentic” natural products
• The Natural Perception and Conventional Naturals (e.g. Greenworks) segments are expected to experience slower growth
• Of US households, 96% have purchased natural products, 61% have purchased organic

The big take away for me was the word authentic. It’s an imperative for our branding process. The brand stories we design for our clients first and foremost are authentic. Consumers demand it. And the natural product consumer demonstrates the importance of authenticity by spending their dollars on those brands that are authentic. Another insight that should come as no surprise, is that consumers who are the most committed to your (brand, cause, product, category, etc.) will spend the most (time, effort, money, etc.). The more you know about why your most loyal consumers buy your product, the more successful your brand. It’s all about focus. And I don’t mean focus groups. You need to get into your consumers lifestyle and that cannot be quantified on an excel spreadsheet.

From a marketplace view here are some key insights:

• Private label is a growing presence (up 44%) and worthy competitor with price not the only decision factor – quality and variety are on par with establish brands
• The growth of Whole Foods over the last 10 years has been so significant that it has become a third market channel
• Healthy products drive spending but it must be connected with value
• Retailers are cutting out SKUs

The marketplace insight parallels the consumer insight. For brands to succeed, they need to bring value, be differentiated, and be meaningful. Now we are talking.

Bob spoke of whats hot including: sustainability, native sugar, biodynamics, precycling, bulk, anti-aging, ancient grains, affordable indulgences, fair trade, gluten-free, probiotics, natural cleaning.

Stay tuned for more from Anaheim.

Nice polo shirts! Our client Sugar Bowl Bakery is featured in the February issue of The Costco Connection. The article revisits the beginnings of the bakery, and how through hard work and being true to their core family values have grown from a small doughnut shop into a $45 million company and one of San Francisco’s most successful businesses of the past 20 years. Read the complete story.

We’ll have a profile of our branding and design work for Sugar Bowl Bakery in the PROJECTS section of our website in the near future.