Differentiating Your Brand - The Next Wave

We were invited to a pitch today. The potential client has grown quickly and out grown the agency they had. This is always an unfortunate situation, but, it’s always better to refocus early, before things get totally out of wack.

In a fast growth market, there are certain places a brand wants to be: first, biggest, most well known. Ideally, all three. The problem comes when you’re none of the above and searching for an added edge to continue your growth. This pitch was a bit different, in that we weren’t given much time (a week) and we weren’t given a brief, it was more of a capabilities presentation. Of course, the first question coming out of the audience (it’s a franchise organization so there were a lot of bodies in the room) was have you done work for someone like us before? The old catch 22 question which is why the old industry adage of  “it’s better to be lucky than good” often comes to play in matching agencies to clients. Or, as they also say- it’s not what you know, but who you know.

In our background research we were finding that they are in a segment experiencing phenomenal growth. They’re on the map as a one to watch. The problem is, the number one player in their field, carved a niche away from the original number one by offering a very clear point of differentiation and then proceeded to own the niche like it’s the main event. The number two and three brands have been busy trying to out niche the leader and our potential client was trying to play leapfrog on the very same platform.

Stop.

This is what challenger brands should never do. Don’t play follow the leader. Don’t assume that what works for the leader can be copied, duplicated or improved- need proof, how’s Barnes and Noble really doing vs Amazon in just the eBook reader market? Never mind the selling of books. If you are going to be a challenger brand, the most important thing that you can discover to build a strong brand DNA is your brands “unique selling proposition,” a concept developed by Rosser Reeves for the Ted Bates Agency in the fifties. Brands that find their USP find that their products and services are much easier to sell and have a conversation with their customers because there is no cloud of confusion surrounding their products. Apple is a great example of a challenger brand that still isn’t the biggest by market share, but has grown from near bankruptcy to the most valuable company in the world based on the USP of products that are beautiful and easy to use. Google has grown by proving itself useful. Neither were first to market, but both found that by sticking to simple messaging they could own a position that could be unique to them. You’d think that other computer companies would figure out that ease of use is important, but it hasn’t happened yet.

While McDonalds and Burger King and sometimes Wendy’s, Hardee’s, Jack in the Box and countless others fought to be “THE” burger chain, Subway grew to have the most outlets by focusing on a more approachable business model with easier entry for franchisees. Five Guys is making all the burger joints look twice at trying to be something for everyone, as they stick to the knitting of making a better burger. When McDonalds began, there were no chicken nuggets, salads or coffee bars, it was burgers, fries and milkshakes.

If you want to be a challenger brand, that’s fine. But, the truly great understand that to steal a phrase from designer/author Marty Neumeier,  in his book, “Zag“, “when others zig, zag.” He stresses the need for radical differentiation. It’s not just enough to talk about a strategy, you have to actually have one. Five Guys isn’t winning the burger wars because they have free peanuts, it’s because they hyper focused on a better burger and a simplified menu in a no-frills space.

Challenger brands that find their USP and convey it in a clear, differentiated voice, soon find themselves in a category all of their own. Find your USP, or find an agency that you can talk to about finding it, and you’ll be on your way to success.

There is a difference between selling Apple products and clothes. Ron Johnson, formerly Apple’s retail chief and the new CEO of JC Penney is finding that out quickly. Critics of his move from constant sales to an always fair pricing strategy are having a field day with a Forbes article calling it an “Epic Rebranding Fail”

But nevertheless they launched “Fair and Square Pricing” whereby promotions and sales would be a thing of the past, for the most part, and in their stead would be everyday prices, “best prices” which would be available to consumers on the first and third Friday of each month, plus they would mix in some month-long values, too.

The new tagline ”Enough. Is. Enough.” would speak to the belief that consumers were inundated with promos, coupons and sales and what they really wanted was just plain, old-fashioned, everyday low prices.

No sizzle, just the steak.

via JC Penney’s Epic Rebranding Fail – Forbes.

It’s easy to armchair quarterback these bold moves, many (including this author) thought when Apple decided to open bricks and mortar stores it was a move in the wrong direction. Gateway had failed miserably doing the same thing- and yet, Apple is now considered the most profitable retailer on the planet.

However, there is a big difference between JC Penney and Apple- JC Penney is more of a curator of retail while Apple is the owner of the product. Yes, I can get Apple products elsewhere, but at an Apple store I’m dealing direct. At JC Penney, I can get the products elsewhere and anywhere- there is no exclusivity to what JC Penney sells- or what the brand stands for.

JC Penney Doesn’t Pass the Hand test

Put your hand over the logo and you still know what company made the product and the ad.

In Marty Neumeir’s classic book, “The Brand Gap” he uses Apple as the example when introducing “The Hand Test.” If you cover up the logo of the product in the ad- will you know what the product is? Apple passes with flying colors. JC Penney can’t ever do this. Their products, the brands they sell, their brand itself isn’t able to stand on it’s own. By their very nature, the department store model is nothing other than the supermarket of shopping in comparison to the convenience store. Same products, different experience in selection and purchase. There is nothing exclusive to JC Penney products and once you buy them, they belong to you- not to JC Penney. Compare that to Apple. Once you have an iPhone or a MacBook Air- the brand cachet is still there and there is a connection between you and the brand.

Pricing isn’t a strategy- it’s a tactic

This seems to be the part that Mr. Johnson missed in Marketing 301. Price alone isn’t why people buy- it’s perceived value that is critical. What does JC Penney add in value to the products they sell? Well, nothing really. Do we have any reason to trust JC Penney as a qualified curator of value? Nope. They’ve been through three rebrandings in as many years- and even before that, it’s been a long time since JC Penney held any kind of unique position in the eye of the consumer- if ever. For most consumers the JC Penney brand could go away tomorrow and they wouldn’t miss it. We’ve seen it before as Macy’s has gobbled up other regional department stores, rebranded them and customers barely skipped a beat. The brand name of most department stores stands for nothing- possible exceptions being Neiman Marcus which once stood for exclusivity and expensive, Nordstrom which built a reputation on amazing customer service and Sears which had brands like Craftsman, Kenmore and Die Hard that stood for solid American values.

JC Penney is a brand without a position. And since brands aren’t controlled by the marketer, but by the consumer, the way they introduced their new positioning of the brand has been way off target. Pointing out that consumers are tired of being assaulted with ads promising values based on inflated initial pricing is true. Focusing on the competition isn’t usually the best way to spend your advertising dollar. Yes, consumers know that MSRP is a joke, and from diamonds to donuts, everyone wants to pay less- but, are always willing to pay a little more for perceived value. Where is the value proposition for JC Penney?

The Value of “Fair and Square Pricing”

We believe in fair honest prices. When gasoline is sold for dollars per gallon, it’s insane that we still see $3.59.99 prices, especially when the penny, the 1cent piece, is on the verge of being done away with.  The old psychology of .95 or .99 cent pricing to erase perceptions of whole dollar prices being more may still work with the geriatric set, but younger consumers are less likely to be swayed by it. The value of JC Penney not manipulating prices up and down is great- but, when buying fashion, the brand needs to stand for something. We’ve seen denim jeans elevated from durable work clothes to designer label with outrageous price tags- yet, say the word JC Penney and what emotional trigger do they hit?

Our friend Sally Hogshead lists seven triggers in her book Fascinate: Passion. Mystique. Alarm. Prestige. Power. Rebellion. Trust (well, actually, she changed Lust to Passion and Vice to Rebellion just to be absolutely correct). You can find out more about the seven triggers here: The Fascinate System If JC Penney is going to rebrand and be relevant to the consumer, they need to at least score highly on one or two of the triggers. right now, they don’t. Is “Rebellion” against sales and manipulation enough? Hardly, Walmart and Target have been promising some sort of everyday low prices for years.

The “Enough. is. Enough.” line is more about the mendacity of marketing than about the value to the consumer. The TV spot introducing the new pricing is enough to instantly annoy a viewer who already views TV commercials an intrusion to their entertainment.

It will take JC Penney more than a few quarters to transform themselves into a value retailer, which many consumers may find attractive as they grow to understand it. Think about how most department stores are deployed- in a mall with several other competitors. Shoppers go to the mall to find fashion, after looking in Macy’s, Sears, and the other two anchor stores, as well as places like The Gap, Hollister, Abercrombie & Fitch, Aeropostal etc Penney’s may win over converts if they can get consumers to come through their doors to compare. Changing the experience of shopping can take time and while the pundits are quick to write this concept off, once JC Penney finds its new voice and can trip one or two more emotional triggers, they may find the success they are seeking.

Knowing what your brand stands for in the consumers head is the first step to making the sale. Since the consumer controls your brand, changing those perceptions isn’t an overnight or several quarter effort. We believe that Mr. Johnson has the right tactic but needs to find the strategy to convince customers that the value of “Fair and Square Pricing” is more than just saving a few bucks- it’s a statement above fashion about fashion.

Yes, consumers are tired of being lied to, but, they still want the mirage of an oasis beyond the doors to your store.

When wearing clothes from JCPenney becomes a fashion statement (I have the common sense not to be gullible), JC Penney will win.

Burger King bowing to Five Guys?

Photo Credit: Chris Nixon via Compfight

Fast food is a tough category. While McDonalds obviously has the secret sauce to the number one spot, the actions of number two through five are like watching a three ring circus. Only one can be something for everyone, everyone else, needs to figure out how to be the anti-something for everyone and pick their niche.

Chipotle is the envy of the industry- with a ridiculously low ad budget (they actually dropped from $7.5 million in measured media in 2010 to $5.8 in 2011 according to Ad Age Mar 12, 2012, “Chipotle aims to buck fast-food convention- while it still can“) and a menu that doesn’t change much and a business model that doesn’t rely on “Sales” or price off promotions. Chipotle has a value proposition: a big portion of fresh locally sourced food, that’s made to order in front of you. Subway uses part of the same model and is the number two fast feeder: A custom made sandwich at a reasonable price.

Lately, Burger King has ditched one of the hottest agencies in the country, Crispin Porter + Bogusky, cut ties with CMO Russ Klein (who has bounced back at Arby’s) and gone back on the mission to out-McDonald’s McDonalds:

The restaurant’s menu will include a record 10 new items, among them, made-to-order smoothies and three new salads. Burger King also will increase its marketing efforts, featuring soccer player David Beckham, talk show host Jay Leno, actress Salma Hayek and singer Mary J. Blige in upcoming commercials. The chain plans to send out 40 food trucks across the country to hand out food at events and set up sampling inside some Burger King locations.

The chain is reportedly attempting to broaden its menu with healthier and more snack alternatives in an effort to appeal to mothers, families and Baby Boomers. Burger King and its franchisees will spend an estimated $750 million to revamp stores over the next 12 months.

via Burger King to Roll Out 40 Food Trucks Nationwide | Mobile Cuisine – Food Trucks, Carts & Street Eating.

Burger King built their business on the Whopper- a burger that used to be bigger and tastier than a Big Mac. The company hit pay dirt when they challenged market leader McDonalds with “Have it your way” as a way to differentiate their offering as made to order and fresh- utilizing “Flame broiling” instead of frying- positioning them as the burger kings- in the same way you make a great burger in your back yard. Burger King appealed to some of the same triggers that work for Chipotle and Subway- their food was made more the way you make it at home. Home cooking beats the factory- that was a message and positioning that resonated.

To be the Burger King, all they had to do was make the best burger our there. Now, they are placing bets on salads, frappes, wraps and famous faces. Compare that to upstart chain, Five Guys. The whole business is focused on making burgers and fries. When you order- the cashier calls back the number of patties that need to be on the grill- nothing else. Take out the frying surface and replace it with open flame grilling and they would be the penultimate burger kings.The oversize portions of freshly cut fries as well as the fresh meat burgers make them the new Burger Kings. Advertising is mostly accomplished by word of mouth and the reviews posted around the store remind you that this is the burger joint of old reincarnated. Note- they don’t have a dollar menu, don’t do couponing, no TV ads either. Like the Chipotle model, the entire kitchen and process is on display.

My visit yesterday to Burger King to check out the “new changes” confirmed that BK isn’t the Burger King anymore- despite having cast aluminum burger flippers for door pulls, once I got into the line and watched the digital menu screens show me salads getting the sexy dressing pour and sundaes getting drizzled with chocolate sauce – I almost forgot I was in a burger place. The menu is schizophrenic with “stackers” for a buck- and the next step up is a burger starting at $3+. To confuse matters there are a ton of chicken offerings, salads and who knows what else. No one told me it would be at least three minutes for the “Chicken snack wrap” until after I ordered and the confusion of trying to speed things up by switching, then not switching my chicken for a second stacker reminded me of a three ring circus.

The moral of the story is to be successful, a brand has to know who they are and stick to it. That’s why the new Burger King is obviously Five Guys.

Procter & Gamble is an advertising Goliath. Dollar Shave Club was an unknown 2 weeks ago. Thanks to brilliant advertising, Dollar Shave Club is going to take the fun out of being a brand manager for Gillette (owned by P&G) for the foreseeable future.

Basically, with a video that’s gone viral and a website, Dollar Shave Club has just taken the process of buying razors out of drug stores and grocery stores and moved it to a subscription service with no need for fancy packaging, expensive TV campaigns, coupons or the help of superstar celebrities.

Fast Company describes the ad:

In its parody-toned ad, the company CEO takes us on a tour of the Dollar Shave Club warehouse. He seems almost aggressively committed to the product he’s hawking–angry that people would be foolish enough to buy razors any other way than from a club. “Do you like spending $20/month on razors? 19 go to Roger Federer,” the CEO says, catching a tennis racket thrown from offscreen. “I’m good at tennis,” he promises, immediately swinging for a ball thrown his way, missing it, and moving along.

It turns out the guy in the video really is the founder and CEO of the new start-up, Michael Dubin. What’s more surprising, though, is the fact that he made the ad himself.

“The world is filled with bad commercials and people who are marketing too hard,” Dubin says. “I think what we wanted to do is not take ourselves too seriously, and deliver an irreverent smart tone.”

Dubin wrote the spot last October and shot it with his good friend and co-director, Lucia Aniello. It cost about $4,500 and the team managed to bang it out in a single day, shooting on location at the actual factory warehouse, at their fulfillment center in Gardena, California.

via A Startup Ad Pivot: Behind The Dollar Shave Club Promo | Co.Create: Creativity \ Culture \ Commerce.

All the dollars on R&D at P&G aren’t going to survive the onslaught of common sense behind the basic premise of Dollar Shave Club- razor blades shouldn’t cost a small fortune. People know when they’ve been taken for a ride, but without any alternative in the Schick/Gillette duopoly, the only price war we’ve seen previously is how high can they go- and with a simple, classic counter-strike the entire market has been transformed. Granted, those without Internet access may not find their way to cheaper shaves, but, at these prices a cottage industry of resellers may just sprout up, because even the cheap disposable razors aren’t as cheap as DSC.

The only option left to the ransom kings of shaving blades is to quickly buy out DSC or his manufacturer in China and risk an anti-trust lawsuit from the feds.

But, what is even more amazing is there is no glamor shot of the product, no demonstration, no celebrity endorsement and even an obscenity aluded to in the spot- all things that wouldn’t even be considered by the soon to be dethroned kings of marketing in Cincinnati. Granted, P&G did finally learn that great advertising that’s irreverent can help move the sales needle when they hired Wieden + Kennedy who came up with “The man your man could smell like” for Old Spice that repositioned a tired brand. However, comparing the media buy of the agency created campaign to the total cost of the do-it-yourself effort of DSC should make P&G rethink everything about the way they approach marketing for everything from Tide to Swifter.

Advertising should never be about budgets as much as it is about creativity and the ability to create an emotional connection and response with the consumer. Dollar Shave Club has just changed the game in razor blade sales. What are you going to do to change the game in your industry? Hint: doing what has always been done doesn’t work so well these days.

Ever since Chris Anderson published “The Long Tail” it’s been argued about. Anderson himself is still trying to redefine what the market is- and how it’s measured. Does Netflix count as part of the category “video rental stores” or not. You can read some of his analysis in this article- where he takes some time to talk about the poor debunked Italian mathematician  Vilfredo Parteto:

The Long Tail: The real meaning of 80/20

I am as guilty as, well, nearly everyone else of sloppily defining the “80/20 Rule” to mean whatever I want. Pareto’s principle really is an all-purpose widget, broadly applicable to almost anything humans do (and, of course, the behavior of atoms in a Bose-Einstein condensate)…

The general articulation of the principle is: “for many phenomena 80% of consequences stem from 20% of the causes.” (Vilfredo Pareto [shown] first articulated this in 1906 when he noticed that 80% of the property in Italy was owned by 20% of its population).

In a world of category killers- and mega stores like WalMart- the small business has to work harder to find and define the scraps left over of which to build a business model on. When almost any commodity can be sourced at the touch of a button, service has become the number one way of differentiating your business.

There is hope to be found in finding the niche that 20% of the market needs filled. Not every hit has to be a homerun for your business to build and grow, just one thing becomes essential- making sure you are able to come in first with top of mind awareness for your little bit of the pie.

Businesses that can tell their story better, can connect with a small segment of customers well- that have figured out that infinite choices are too many- that they want to do business with people they know best- those are the ones that have a chance.

We’ve been watching a small old Wympee building that seats 35 at most- be turned into a hipster dive, by focusing on a message that big can’t own- that their food is local, organic and fresher than anything anyone else can provide. In the highly competitive market where size seems to matter, being small is working as a competitive advantage.

Thinking in terms of the 80/20 rule- it doesn’t matter if 80% of your business comes from 20% of your customers- as long as you have enough customers to make your model work.

Personality has been used in marketing for a long time- what would Frosted Flakes be without “Tony the tiger” or Michelin would just be another tire company without Bibendum- or Nike without it’s celebrity athlete endorsers. Apple owns cool design, as do Oxo, Good Grips, Alessi, etc. The brand Craftsman stands for lifetime warranty and strength. We’ve infused brands with personality for years- but, the company- the people, from the way your employees answer the phone- to what they wear- to your packaging- what does it say about your company.

For a long time- we were afraid to show emotion- to have a face- being faceless was synonymous with being big- and everyone wanted to be big. Oh, we’d always be careful to be multi-cultural and politically correct- to the point of boredom, but- finally, companies like Virgin, Google, Zappos, Southwest all broke the mold and let people be people again.

I highly recommend the book “Personality not included” by Rohit Bhargava from Ogilvy. The Cliff’s note version:

Chapter 1 – Faceless used to work because big meant credible. This is no longer true

Chapter 2 – Accidental spokespeople are speaking for your brand – Embrace them

Chapter 3 – Uniqueness plus Authenticity plus Talkability equals personality. Use the UAT Filter

Chapter 4 – Backstories establish a foundation of credibility. You need one.

Chapter 5 – Fear of change leads to barriers. Finding your authority overcomes them

Chapter 6 – Personality moments are everywhere and unexpected, but you must spot them

The more we learn about building brands at The Next Wave- the more we’re convinced of two things, that this book keeps hammering home- the old adage that “People do business with people they like” is foremost- and, brand loyalty has to be earned everyday- and that the costs of acquiring new customers is so much greater than keeping existing ones- that doing things that create the love (talkability) should be a key part of every companies brand strategy.

What kind of tools do you have to keep close to your customers? What do you do to “Create Lust • Evoke Trust” in your company? Are your ads just beating your chest- or are they sharing your secrets sauce? What makes your company interesting?

If you are struggling with these questions, read Rohit’s book- and then give us a call. We’d love to discuss it with you.

Peter Drucker said:

“Because the purpose of business is to create a customer, the business enterprise has two–and only two–basic functions: marketing and innovation. Marketing and innovation produce results; all the rest are costs. Marketing is the distinguishing, unique function of the business.”

Yet, time after time we see companies trot out responses to competition that aren’t much different than the competition. Witness the box like car pioneered by the Scion Xb, then the Honda Element, and now the Nissan Cube. Honda misjudged the primary market so badly for the Element- thinking young hipsters would be the primary market- and it ended up being a car for the practical geriatric set (don’t worry, Chrysler had the same experience with the PT Cruiser).

And then there is a crazy inventor named James Dyson. The man who made 5,127 prototypes before coming up with the vacuum that doesn’t lose suction as it does its job. Not only did the vacuum work better- it also looked better- bright yellow, in a land of beige and brown. It also proudly displayed your dirt- something other vacuums were skittish about.

He was able to charge a premium for his product, not because of better marketing, but because he had built a better product. How many times would I rather get a better product than a better advertising pitch: it’s a no brainer, every time.

Dyson Air Blade hand dryer

But the key to the Dyson brand is that they’ve continued to offer products that don’t look or act like other products. Just adding a ball to the vacuum wasn’t enough, next came the hand dryer- the “Air Blade” the scraped the water off your hands with one simple swipe through a wall of super fast air. It cut the time to dry hands by a third compared to other air dryers.

Now, Dyson introduces a fan- like no other. And, while the fan looks different, works different, it also solves a major safety issue (which I only found out once I tweeted about it- and a friend instantly retweeted- kid safe, no fan blades).

Dyson Air Multiplier fan

Sure it costs about 10 times more than the fan you can get at the local superstore, but, that’s what real innovation does- it gives a business a distinct competitive advantage. Here is the description from Dyson:

The Dyson Air Multiplier™ fan works very differently to conventional fans. It uses Air Multiplier™ technology to draw in air and amplify it 15 times, producing an uninterrupted stream of smooth air. With no blades or grill, it’s safe, easy to clean and doesn’t cause unpleasant buffeting.

via Dyson Air Multiplier™ fan | Dyson.com.

So, next time the client says “make the logo bigger” the correct response is “make the product better.”

Dyson understands what Peter Drucker preached. Innovation is better marketing.

It’s becoming an epidemic, your competition does a “great ad” so we should “one up” them with something derivative.

Here is TBWA Chiat/Day’s original MacBook Air commercial introducing the super slim computer”

And, then Ogilvy does a response ad (much later) for Lenovo:

And while this may seem funny, it’s not really building the Lenovo brand, but reminding you of who was there first.

I heard a great quote the other day, “cover bands never change the world.”

The same thought applies to advertising.

Sure, Burger King has seen 20 consecutive quarters of same-store-sales-growth since it finally hired an ad agency that “gets it” (Crispin Porter + Bogusky) and then let them do their thing.

Of course for that to happen, you also need a Chief Marketing Officer who “gets it” and it seems Russ Klein has some pretty good insight on what to green light:

Mr. Klein: “Whopper Freakout” was a great example of tension and the way deprivation affects the way someone who is a loyal Whopper fan. We try to make all of our briefs hinge on some sort of social or anthropological insight that’s charged up with tension. It’s not like we’re trying to set our hair on fire to get tension.

via Burger King’s Russ Klein Promises More Premium Products – Advertising Age – CMO Strategy.

The line that we put in bold italics should be on a big sign above any marketers desk. It’s much easier to get an emotional response to something that’s already got emotions attached.

No one cares about your nifty new twist on your features, advantages or benefits- no, they want to know what’s in it for them- in a way that makes them lust for your product and trust your company.
Interestingly enough, the article on the other side of the spread was “Why emotional messages beat rational ones.” This quote sums it up nicely:

What the data show us is that emotional campaigns are almost twice as likely to generate large profit gains than rational ones, with campaigns that use facts as well as emotions in equal measure fall somewhere between the two.

It turns out that emotional campaigns in general generate a wider range of desirable business effects, each of which plays its part in improving profitability. But they excel in one noteworthy area: reducing price sensitivity, and hence strengthening the ability of brands to secure a premium in the marketplace (or, in the current economic climate, to hold firm on pricing).

To create messages with meaning, start looking at what decisions a buyer has to make to choose your product, and think of how it fits into the rest of their life- then find what makes them uncomfortable and make it engaging or funny- be it the complexity of a car- broken down into the parts that go together like the Honda Cog ad they point to in the second article or the “Whopper Freakout” campaign. Either way- you’ll get more interest, which should translate into more sales.

The Sony product matrix- too many choices

It was Sears, that first got it right when it came to presenting product options. They had “good” “better” and “best” and that was all you needed to make up your mind.

I recently went to Sony’s site to look at 37″ flat screen televisions- so that I could figure out which one was right for me- and I came back more confused than when I started. This is bad news for any marketer, because if it’s not clear what you are selling, the customer will find someone else quite literally at the touch of a few keys.

There are some fundamental things that go into making a buying decision- and just being part of the evoked set these days is a major accomplishment. Remember that your brand lives outside the world you control, so you have to make it really easy for people to talk about your products. Need an example: look at Amazon.com. So many people go there for reviews before going to the “professionals” to make their buying decisions- so it behooves you to have your products there if possible.

I don’t know how many sites I’ve been to where it’s impossible just to link to a single product info page- very annoying for anyone who wants to write about the widget they just bought and love. Make sure you make it easy for social media to link back- and even better, give them the opportunity to build links on your site back to theirs- it’s called sharing the love.

Complex product matrices make sense to your brand managers, but often leave the consumer scratching their head. Think it’s just in high-tech? Nope, same problem with a local restaurant. They had a great brand, the name of the place- but as they grew, they added a coffee shop/cafe (first brand extension) then a “Jazz room” – second brand extension- and before long, you needed a tutor just to decide where to sit and what to eat. Keep it simple, stupid– still applies.

If you need yet another example, go compare Dell.com and Apple.com to try to pick a laptop. Guess which one makes ease of buying a priority? You don’t even have to go to know the answer. Simplicity in product offerings and clear differentiation is more important than ever. Make sure you don’t over think your offering, because your customer won’t.