In the 1980s and 1990s, Circuit City was the leading electronics retailer in the United States with about 400 stores nationwide. From 1982 to 1999, Circuit City generated cumulative stock returns 22 times better than the market, beating out Intel, Wal-Mart, and GE. Circuit City’s future looked bright. However, when the dynamics of the market changed, Circuit City rested on their existing brand equity.

In the 1990s, Best Buy entered the market with an innovative retail strategy. In an effort to gain market share, Best Buy secured prime real estate positions and invested in gaming, the creation of an e-commerce website, and viral marketing. But even though Best Buy had changed the retail electronics game, Circuit City stayed the course.

Circuit City laid off their highest paid sales personnel to reduce costs, which negatively impacted customer service. And while Best Buy was paying a premium for the best retail locations and opening new stores, Circuit City stayed with their current stores and failed to update their design. In 2009, Circuit City went bankrupt. Could bankruptcy have been prevented? Perhaps not, but a brand repositioning may have helped.

Brand repositioning is different from rebranding. Rebranding is essentially re-skinning a brand, focused on brand identity and the perceptions and associations of that brand.  Repositioning delves deeper than the skin, and involves changes to some or all aspects of a brand’s positioning strategy, including:

•    Target market
•    Frame of reference (space in which the brand competes)
•    Core benefit the brand provides
•    Reason to believe the brand can deliver on this benefit

Companies should consider repositioning their brand when they need to alter their strategic direction, adapt to changing consumer preferences, bring in new customers, and/or differentiate from other brands.

As in any major corporate change, not every repositioning effort is successful. Several best practices can be employed to avoid common pitfalls and mitigate some of the risk involved.

Secure CEO buy-in

CEO commitment is essential in a brand repositioning effort. The CEO brings credibility to the effort and shows the company’s commitment to change. Furthermore, the CEO is the only person within an organization who can drive change in all functional areas within the company, create a vision, and gain support from key stakeholders.

Engage the whole company

A company’s greatest asset is its people. If a brand repositioning initiative only involves the marketing department without support from sales, finance, engineering, consumer service, and manufacturing, it is likely to fail. Since repositioning is more than “re-skinning” the company, it must go deeper than marketing.

Remember your history

An excavation into a company’s history can lead to new insights and illuminations and reveal core competencies and what differentiates the brand from their competitors. Looking back can help a company move forward and gain inspiration from the company’s founders.

Understand your target market and consumer needs

It is important to listen to your consumers and ask for their feedback. By speaking to current users and non-users of the product or service in question, a company can better understand what resonates with their target market, and what might resonate with ancillary target markets.

Make the new branding believable

When a company repositions their brand, they may say, “We have the best consumer service and we offer the lowest prices. We are fun, reliable, and innovative. We are the best.” However, if it isn’t true, consumers will not trust the brand. The brand’s message should be uplifting and positive, but it must also be honest and believable.

Consistently project and reinforce the branding

Communication of any positioning needs to be clear and consistent so that consumers can easily understand the brand’s benefit to them.

Image source: jakerome

In the wake of a tumultuous decade, many consumers are actively voicing a loss of confidence in big business. This cynicism coupled with a heightened awareness around social and environmental issues have placed a lot of companies on the defensive.  Over the past several years, a number of our clients have approached us with a similar challenge:  a need to improve their consumer-facing image to develop emotional connections and build a foundation of trust.

While the core issue was similar for many of our clients, the execution of each engagement varied.  We have worked on innovation, positioning, messaging, and Corporate Social Responsibility (CSR) platform projects, all with this end goal in mind.  The question that remains is whether these efforts resulted in the desired effect of re-engaging a disenchanted consumer.  In order for any efforts to be effective, the approach must be holistic.

Kaiser Permanente re-engages consumers

Kaiser Permanente is one company that has had a successful run at re-engaging consumers. Five years ago, the company launched a new messaging campaign to reposition the healthcare giant in the prevention and wellness space.  The push came as a direct response to falling membership as well as lack of awareness among the general public.  The company believed that the negative opinion held by non-members was largely due to a “lack of a strong and consistent voice in the general consumer market.”  From this need came the “Thrive” campaign, whose focus was not on how Kaiser cares for the sick, but rather how it delivers wellness and enhances the overall quality of life.  Most would agree that this has been a fairly successful advertising campaign.  It clearly resonates with consumers who feel that there is much more to health than healing the sick.  However, is this just a great messaging campaign?

A holistic approach reinforces consumer branding

Kaiser is actually backing up its brand message with a slew of innovations through an institution-wide effort known as KP Innovation.  Their goal is to align every consumer touch point – from the waiting room experience, to the doctor patient interaction, to the way patient information is stored and transferred - with the overall brand positioning.  In 2007, the company began building a Total Health Environment, which involves applying design theory to all aspects of Kaiser’s operations.  A team inventoried Kaiser facilities to identify areas that were not “thriving,” and they drew inspiration for revitalizing these aspects from outside industries like hospitality and retail.  They also spoke with consumers to identify pain-points within their current experience.  They translated their findings into plans that will be used to build new facilities and remodel existing ones.   They are designing greener buildings, increasing the use of natural light, making waiting rooms more welcoming, selecting cozier chairs, making patient rooms more comfortable, and choosing color palettes that are brighter, just to name a few changes.  These changes not only improve the look of the facilities, but they have also been shown to improve overall patient satisfaction.

The healthcare provider has also launched additional innovative initiatives that align with its wellness positioning.  A number of facilities have on-campus farmer’s markets that offer healthy produce for employees and members.  In addition, the provider teaches health and wellness classes that cover many topics including stress relief, smoking cessation, chronic disease management, and even yoga.  For patients that do not want to come to the facility, Kaiser also offers online support tools weight loss, nutrition, stress reduction, pain management, and smoking cessation.  All of these initiatives support Kaiser’s efforts to show both consumers and employees that they are serious about keeping people healthy.

So it looks like Kaiser’s catchy tag line, “live well and thrive,” may be more than just empty promises. Peter Andruszkiewicz, President for the Kaiser Foundation Health Plan of Georgia, Inc., says this about the effectiveness of the KP Thrive campaign:

“In Georgia and nationally, it has successfully increased the number of people willing to consider KP for membership. It has also significantly increased the perception across multiple audiences that KP is serious about proactively keeping people healthy.”

What do successful brands like Zappos, Google and New Belgium all have in common? Their employees exhibit passion and energy for their company, their brand and their ability to deliver on the brand promise.

At Zappos, they position their brand to be “a service company that happens to sell shoes among other things.”  However, providing great service requires a customer-focused culture. So their number one core value for the company is “Deliver WOW through service.” They train and empower their employees to live and deliver “WOW,” and make “WOW” part of the every day vocabulary.  All new hires at Zappos.com Las Vegas headquarters, “including accountants, lawyers and software developers,” are required to go through Customer Loyalty training.

At Google, they realize that in order for employees to be champions of the brand, they must also be champions of their own products.  It is a culture norm for all employees to use Google’s products daily in their work, and there are ways to easily relay feedback and share ideas for the innovation process.  To make sure the “Google blinders” aren’t on, employees also try out all of their competitors’ products.  Through this practice, employees stay up to date on continuous product iterations and innovations that occur each day, and most importantly, know first hand what sets the Google brand apart from everyone else.

New Belgium is a microbrewery in Colorado with a large and loyal following. New Belgium has built a brand based on sustainability, which they preach internally as well as externally. After one year of employment, all employees gain an ownership stake in the company and a customized New Belgium bicycle, which symbolizes the company’s commitment to sustainability. Employee ownership also empowers employees to carry forth the brand on their own, without a mandate from above. In 1998 employee owners voted unanimously to turn New Belgium into the first wind-powered brewery. In addition, 1% of all revenues go to environmental non-profits.

All of these examples show great practices in internal branding, which can be defined as programs and tools to inspire and engage employees to “live and deliver” the brand. As many successful brands have learned, employees can be your most passionate and powerful brand champions.  However, brands can also fail because they lack the organizational buy-in, energy and momentum to achieve a sustainable and recognizable position in the marketplace.  Studies show that, on average, only about one-third of employees are actually highly engaged champions of their brand. This means, that many brands, new or existing, are at risk of failure.

Lessons

We recently worked with a company to develop a strong, recognizable brand and positioning and faced this very challenge – how to engage the entire organization to be champions of the brand.  Based on this experience, we wanted to share our learnings with you, because not all brands are like Google and gain instant brand enthusiasts in the hiring process.  When we started this work, we were focused on two important steps: 1) creating an effective and compelling brand strategy and 2) effectively launching the brand in the market.  However, there remained an extremely important step in the middle – launching the brand internally.  To do this, we first thought about our biggest organizational obstacles.  For any company embarking on an initiative to brand internally, here are some important questions to consider in determining the challenges ahead:

•    Do senior leaders believe enough in the importance of branding and the brand itself to stand behind it and invest in its success?
•    What is the current mindset of employees at the start of this initiative? Have there been failed branding initiatives in the past that may cause employees to be more skeptical?
•    How large and spread out is the organization geographically, and are functions and regions well aligned and in close communication?
•    Has the company ever had a customer centric mindset that lends itself to the importance of branding, or is there a “build it and they will come” mentality?
•    How well do employees believe in the strength of the current offering and its potential?

Even if your answers to these questions make you skeptical about the outcome of an internal branding initiative, our recent work in this area has unveiled some key initiatives that will increase your chances of success.

•    Have it come from within
•    Build circles of influence
•    Don’t just tell…inspire
•    Educate and engage
•    Make it more than words on a page

Have it come from within. When developing or revitalizing a brand, it is important to make employees feel like they are part of it.  When people feel responsible for the brand’s origin or direction, they have a lot more passion and ownership, versus when they are told by Marketing or the powers above what the brand is to be.  Methods to instill ownership of the brand range from a simple employee wide survey to gather opinions, to one-on-one interviews with various stakeholders, to having people from key regions and functions react to iterations in the brand’s development.

Build circles of influence. This is particularly important for large, complex organizations, in which Marketing is limited by the reach and number of people on the team.  Before a new brand strategy is rolled out to the entire organization, it’s important to immerse select employees in its development.  These individuals could be:

•    Organizational leaders: Senior management or individuals with strong influence within the company
•    Early pioneers: Individuals or groups who will be the initial implementers of any new brand strategy “proof points” in the market
•    Motivators: Employees with a natural skill to inspire others in the organization around an idea and who have strong passion for the potential of the company
•    International counterparts: Individuals in offices around the world that serve in one of the three roles above

Don’t just tell…inspire. In sharing the brand strategy with employees, it is important to take measures to inspire them to believe in the brand and its promise. This is important because emotions help people care.  When people are emotionally engaged by an idea or initiative, they are more likely to become part of it and take action.  Some methods to inspire include immersion workshops to generate excitement around the possibilities of the brand, or creative forms of media to communicate the meaning and essence of the brand.  These could include an object for their desk that illustrates the soul of the brand, a compelling brand film that conveys the emotional promise, or mocked up visuals illustrating the “imagine ifs” for the future brand.

Educate and engage. Knowledge is power, so it is important to create a central forum to educate the organization about the brand and all of its elements.  It is also important to clearly connect the brand strategy back to the role of every individual in the company.  Concepts that stick in an organization are clear, not abstract or ambiguous. In order to make something clear and easy for others to understand, you should explain it using concrete images that take advantage of existing schemas in the audience’s mind.6 Without this information, employees, especially those outside of Marketing, are disengaged from the brand.  An individual who works in Accounts Payable is not likely to realize that her actions and dialogue with customers, partners or vendors can speak volumes about the brand.  Many brands address this through a creative and inviting brand website that is accessible to employees, vendors, partners, etc. and contains information, guidelines, role play scenarios, etc. as well as a place for open dialogue and questions.

Make it more than words on a page. Depending on past experience with the organization or previous employers, many or some employees prefer to reserve their efforts and go into “wait and see” mode when a new brand strategy is launched internally.  Without tangible proof points that the company is making impressive changes in its approach to align with the new brand, they might feel as if they are wasting their energy on something that will never come to fruition.  This does not mean that a company has to spend millions changing its entire go-to-market approach to turn employees into believers.  In fact, new branding efforts that are broad and spread too thinly across every aspect of the organization lose their meaning and commitment and are usually unsuccessful.  Instead, the best approach is to identify select initiatives within the company that will have the biggest initial impact for the brand relative to the level of required investment, and start there.

Conclusion

“A brand that captures your mind gains behavior. A brand that captures your heart gains commitment.” When implementing a new brand strategy, employees can be your toughest customers, however, when the organization is rallied around the brand, it can be a formidable force in the market.  We have seen this through the incredible success of brands like Zappos, Google and New Belgium, all of which have enviable brand ambassadorship.  By capturing employees’ hearts, giving them the tools and information to engage, and proving leadership’s commitment to execution, an organization can succeed in creating powerful brand champions.

Sources:

Brandeo. Brands: Zappos Brand Based on Great Service Not Lip Service
Building a Customer Focused Culture, Presentation by Tony Hsieh, CEO of Zappos
Interview with Google employee
www.newbelgium.com
“7 great places to work” CNN.com
Employee Brand Engagement: It’s Not a Myth—Happy People Make Happy Businesses.
Made to Stick: Why Some Ideas Survive and Others Die, Dan Heath and Chip Heath
Scott Talgo, Brand Strategist
lil 1/2 pint

Marketers are a lot like consumers. Both are human, and both are fallible. As humans, we all have a limited capacity for digesting and making sense of information. Which is a problem, since both marketers and consumers are being confronted with more information than ever before. This dichotomy was forecasted as early as the 18th century by French philosopher Denis Diderot:

“As long as the centuries continue to unfold, the number of books will grow continually, and one can predict that a time will come when it will be almost as difficult to learn anything from books as from the direct study of the whole universe. It will be almost as convenient to search for some bit of truth concealed in nature as it will be to find it hidden away in an immense multitude of bound volumes.” Encyclopédie (1755)

The same principal holds true in a professional context. Case in point: the NASA Challenger disaster in 1986. The scientists who tried to persuade their superiors to postpone the launch had all the right data, but it wasn’t presented in an easily digestible form, as statistician Edward Tufte points out in his book, Visual Explanations. These are the two charts scientists had describing the O-ring erosion, which led to the crash.

It is only when this same data is charted along a temperature axis (thanks to Tufte) that the problem becomes abundantly clear: cooler temperatures increase the chance for damage.

Of course, not even 18th century French philosopher Denis Diderot could have foreseen the emergence of computers and the internet, which have put massive amounts of data within our reach. As marketers, we now have access to enough numbers to make our heads spin, from volume projections to time spent on websites and everything in between. And while all of this information can make our jobs easier, we need to make sure that we aren’t overwhelmed by it.

So what does all of this mean? Information is, at its basic level, a tool that we use to make decisions. Before diving into all of the information at our fingertips, we need to ask what decisions it is enabling us to make and filter out unnecessary information accordingly.

We also need to make sure we are giving consumers the right amount of information, as too much can only get in the way. Consider Apple, an over-used but nonetheless relevant example. In product packaging and on the products themselves, Apple displays only the relevant pieces of information. The only visible words on the computer I’m typing on right now are “MacBook Pro.” Beyond that, the product design speaks for itself, and Apple has recognized this.

That’s not to say everything should be simplified. In today’s consumer-powered market, many consumers are looking for large amounts of product information when making purchases. But this information shouldn’t be thrust upon them. Rather, it should be easy to find when sought out by consumers.

The bottom line: Keep it simple, know your end goal, and use information selectively to achieve it.

Image source: AskTog.com