David Cameron, Global Brand Manager
It appears economic growth and confidence has returned (and it is clearly wasn’t linked to August weather). In late July my Economist tells me that national output had “sprinted” ahead by 1.1% in the second quarter.
At the same time the GfK/NOP Consumer Confidence index increased four points to -18, breaking the steady downward trend since February. Now, it is clearly nice that we have bucked a trend of 5 months, but consumers remain somewhat entrenched in negative sentiment. As is often the case, the graph above speaks volumes.
What I found more interesting was the quote from Nick Moon, head of GfK NOP Social Research that accompanies the press release for the latest month’s confidence index, in which he comments:
“Consumer confidence has been in constant decline for the past five months and a further fall would have made a double-dip recession seem a very real prospect. The Government will undoubtedly read these figures with a great deal of relief.”
I don’t doubt this observation is true or the inference that a positive view on the prospects of the UK amongst that nation’s consumers is a vital component for sustained recovery. The problem, however, is that UK consumer confidence can no longer be heavily relied upon. In fact, growth largely fuelled by UK consumers risks a return to the conditions that have got us to this uncertain place.
Part of Cameron’s role is undoubtedly that of a brand manager and his UK brand building plans will need to different to that of Blair and Brown. They necessitate much more emphasis on the views of those outside the UK. In fact, never before has the attraction of foreign investment and purchasing power been so important. In recent months our net trade as been neutral – despite the competitive advantage of a relatively weak sterling – so there is much work to do. The second graph above may therefore be as big a concern as that trending UK consumer confidence.
Like all good brand managers he has had a serious think about his target consumers and not surprisingly business leaders in general and particularly those from emerging powers such as India and China feature even more prominently. Consider the recent trip to India, described (by Cameron) as the largest UK trade delegation in living memory. The scale of this initiative and Cameron’s apparent willingness to risk upsetting Pakistan can both be explained as a by-product of a sharper commercial focus and clarity on target consumer. Defending BP (stressing that “thousands of jobs on both sides of the Atlantic depend on it”) in the US was similarly important.
In the spirit of a new brand manager, Cameron needs to shift brand perceptions and hopes to reposition UK from an insular, seemingly self-sufficient country (more visible for its involvement in overseas conflicts) to a nation that is “open to business” – actively seeking new customers. His promise to emerging powers is that of a business partner of choice.
The desire to rapidly tackle the UK deficit is arguably a significant part this brand building exercise – reassuring the likes of the IMF and global investors that the UK economy is robust and creditworthy. Reputation risk management, if you like.
It also appears that the brand team have been briefed on the new promise. Cameron informed reporters in recent a trade visit that he wanted to refashion British foreign policy to make sure “that whenever any British minister, however junior, is meeting any counterpart, however junior or senior and for however short a time, they have always got a very clear list of the commercial priorities we are trying to achieve, whether that is pushing forward British orders, attracting inward investment or promoting bilateral or unilateral trade talks”.
Unfortunately for Cameron, his ability to control messages and shape service/product delivery is extremely limited – less than even the most budget constrained brand manager. His emotional promise would clearly benefit from business leaders, unions, media, etc, projecting a UK eager, externally focused and willing to compete for business. The absence of tricky world events that force a polarizing decision or two would be helpful as well.
So like most new brand managers, Cameron needs to role model/champion his promise vigorously, enforce the brand guidelines/ethos where he is able and recognise that perceptions will only change with sustained effort and consistent delivery.
The importance of embracing any news, no matter how small, as evidence of the ‘UK brand strategy’ working goes without saying. Another overlap between government and brand management, I guess.
Does your pension provider still find you attractive?
It has been a few years since I was a student, twenty-three actually, but I can still recall the intense competition to give me my bank account. Banks and building societies recognised the opportunity to build a profitable relationship (that initially was based on some substantial borrowing) and I felt valued by my bank manager, who back then, knew me personally.
When choosing my first mortgage there was a fair bit of competition for my attention too. A conversation about my choice in mortgage flowed effortlessly into suggestions of life assurance, income protection and home insurance. More recently the return of recession has tempered the excesses of competition, but you can still see providers putting some effort into establishing a profitable ‘relationship’ at this mortgage need moment.
Unfortunately, as you get older it does appear you become much less attractive to many financial providers. The energy applied to helping you select the best retirement income product compares somewhat unfavourably to the exuberance of a current account or mortgage offer.
In fact, turning your pension pot into an annuity (i.e. an annual income) has some of the hallmarks of a divorce – after a decade or two of largely silence, there is flurry of official paperwork from your provider, a ‘maintenance payment’ is agreed and you go your separate way.
This year there will be approximately 600,000 adults reaching retirement in the UK and almost as many annuity purchases. Surprisingly, only 37% shop around for the best deal for a purchase that could last them 20 years or more. Compare that to car insurance where 89% would claim to have switched providers at least once over a 10 year period.
On the face of it, it doesn’t make sense; the annuity is the bigger, more important decision. Furthermore, those retiring are increasingly without the benefit of final salary schemes. But when you consider the level of advertising and innovation ‘noise’, perhaps it does.
My suspicion is that change really requires a different perspective – in particular, seeing the retirement income purchase as a gateway to a valuable customer relationship, rather than product sale.
At the moment converting your pension pot into a retirement income for life is often treated as the last major opportunity to make some money by a pension provider. Given these customers may be living for another twenty years this feels less than ambitious (and remember, you are 3 or 4 times more likely to sell something to an existing customer than a prospect).
Linked to a retirement income conversation is a wider set of decisions, including inheritance planning, other savings, health insurance, downsizing, house refurbishment, holidays, state pension and allowance, etc. Retirement income will be at the heart of this conversation and starting it 4 or 5 years ahead of retirement will help.
In seeking to meet a variety of financial needs of those approaching retirement, I would hope an astute organisation can reconcile greater profit with better serviced customers.
At the moment, those with plenty of money are probably being served by financial advisers. So the question is really who could benefit from befriending and building relationships with older mass market or middle-income consumers?
It probably isn’t financial advisers, who even if willing, are seen (I stress, unfairly) with same warmth as a dentist by many in this audience.
More likely, it will be a major bank/building society keen to attract or retain an ageing customer segment with a portfolio of solutions that are relevant over the retirement journey.
Perhaps the likes of Saga will be a catalyst. They expanded their annuity range last year and could offer straightforward ‘money guidance’ in alliance with an IFA network via the phone for their community of customers who are already comfortable dealing direct. Looking further ahead, Tesco, I am sure will not overlook the potential of this life-stage.
Of the major players, Aviva looks a good bet. Unified under a single brand and with a full insurance range alongside equity release they well placed to provide a comprehensive direct to consumer proposition (and make money).
Hopefully interest and energy levels will have picked up the time of my retirement.
A for Apple
From a marketing perspective the strength and continued success of Apple is immensely reassuring.
Apple’s brand is getting stronger – according to the 2009 Best Global Brands list (from Interbrand) Apple has progressed from No. 24 to No. 20 in a year. Interbrand, in fact, describe Apple as “among the most iconic of relatively young brands in the world” – true, I guess, but in the context of computing Apple is actually far from a young brand.
A more immediate demonstration of strength is the early sales performance of the Apple iPad. According to a press release by Apple, iPad has outperformed even their most up-beat estimates with sales of over 450,000 and it is already outperforming all other tablet rivals. Apple continues to live up to a demanding promise with innovative, well designed, accessible and technology-leading products.
That all said, my reassurance comes from the fact that Apple is clearly benefiting from a consistent and sustained investment in brand – reflected in considerable effort and attention to detail right across the marketing mix – over many, many years.
Building advocacy has always been at the heart of what they do and the prize has been a highly loyal customer base. Have a glance at the wikipedia definition of an Apple evangelist to see how core customer (and employee) advocacy is to the Apple culture/approach…. http://en.wikipedia.org/wiki/Apple_evangelist.
Testimony to apple’s strength has been the creation of the “I’’m a PC” advertising campaign for Microsoft. The $300 million dollar campaign was designed to challenge Apple’s Get a Mac campaign by showing everyday (and not too dull) people to be PC users. It is a solid campaign that has been sustained by Microsoft – however, the campaign was met with some criticism due to the discovery that the advertisements were created in part by using Apple’s computers and operating system!
To build a picture of the sustained clarity and ambition exhibited by the Apple brand I have attached a link to a visual-packed, design focused ‘Slideware’ presentation from a Korhan Buyukdemirci that is now about 5 years old – pre I-Phone. As you can see the products and approach have evolved significantly over time, but the commitment to inspiring advocacy is a constant… http://www.slideshare.net/korhan/apple-brand-experience-presentation
Out of the flying ban
As well as passengers stranded abroad you have to feel sorry for the airline industry and particularly British Airways. The ‘ash crisis’ arrived just weeks after a strike which cost about £45m and BA has estimated costs of up to £20m per day for the combination of lost passenger and freight revenues, plus the need to support passengers trapped abroad.
The BA chief executive is clearly someone not averse to confronting issues and was on board the test flight that recently flew into the no-fly zone in a bid to prove that conditions were safe. Following this flight British Airways declared that analysis revealed no variations in the aircraft’s normal operational performance and called upon the Government to adopt new policies that would allow the industry to resume flying.
Then last Tuesday it is suggested that Mr Walsh quietly ordered more than two dozen long-haul flights to head for London – effectively daring the government to divert the jumbo jets crammed with hundreds of long-suffering travellers – according to media reports. If this is the case then the stance appears to have worked well with nearly all 26 British Airways flights arriving in the UK – fortuitously coinciding with the significant relaxation of the flight ban.
British Airways has been dented by mishaps and strikes. A difficult financial position has been further weakened. Perhaps in contrast, the Willie Walsh ‘brand’ may have emerged just a bit stronger from this crisis as a result of a clear, visible stance (and action). Ultimately this may be of benefit to the British Airways brand as it seeks to become a leaner and more efficient, passenger focused proposition.
Rotten advertising, good positioning?
Last week Dairy Crest explained that the estimated £5 million cost of the campaign featuring Johnny Rotten (real name, Lydon) for its Country Life brand has been partly responsible for holding back profits.
This on the face of it reflects some confidence in the effectiveness of their marketing approach – as the company put it “in line with our strategy to continue to grow our key brands, we have spent more on advertising and promotions during the year.” The retention of Mr Rotten (the former Sex Pistols front man) for the last two years, together with a high profile presence on their website is further evidence of commercial delivery.
I confess I have always felt uncomfortable with the idea of a former Sex Pistols (and anarchy advocate) encouraging the UK to eat nice, British butter. But that’s the point, it is a very disruptive combination – one that grabs attention and sticks in the memory.
Disruption is undoubtedly a valuable tool for effective advertising – something exemplified by Swift Cover’s use of Iggy Pop, a brand advocate who would surely struggle to get car insurance from Axa. Of course, it is not the only option in the advertising tool bag and attention needs to be given to long-term brand positioning implications - consider FCUK and French Connection. Their mock profanity application of the brand’s initials supported a very successful campaign and sales push, but over time the brand found itself vulnerable to an association with a superficial device that was no longer disruptive or cool.
The good news for Dairy Crest is that Lydon amplifies a buy British positioning that has a greater longevity than Lydon.
What also intrigued me about this week’s announcement was that it follows trading comments in early 2009 that the campaign had boost sales by as much as 85%. This impressive level of growth, you would hope, would allow a profitable return within a year!
The inference must be that the campaign is on-track to deliver a longer term return in terms of sales and/or brand value. A vote of confidence in the disruptive Lydon campaign certainly, but perhaps a more emphatic backing of a ‘british is best’ positioning.
Waitrose and a winning proposition
I frequently explain to my clients that my passion for proposition development reflects the fact that success ultimately rests on convincing your target audience that your brand’s offer is better than the alternatives. I was therefore delighted to find some vindication for my focus in Sheringham’s recent rejection of a new Tesco supermarket.
Sheringham, is an attractive coastal town in Norfolk which has resisted the advances of Tesco for 14 years. Last week, against the advice of the town’s planning officials, the North Norfolk District Council planning committee voted in favour of an eco-friendly community project dreamt up by a local farmer/entrepreneur – a Clive Hay-Smith.
His innovative, alternative proposal is “The Greenhouse Country Store,” potentially the greenest supermarket ever built: with solar panels, rainwater harvesting, eco-friendly refrigeration methods, a sedum plant roof and an electric bus service. The store will source locally and significantly will be run by Waitrose. His plan also includes an on-site food academy featuring commercial teaching kitchens, each capable of delivering a hands-on cookery training and nutrition guidance for students, schools and community groups.
Tesco have expressed shock at the decision to progress with the Waitrose supported alternative despite the views of planning officials. Certainly the impact on job creation and traffic heading to shops in the town centre appears to have been in Tesco’s favour.
After reflection, however, I suspect Tesco will be less surprised and much more philosophical. The Waitrose supported proposition, despite some economic weaknesses, offers Sheringham the opportunity to build the distinct identity of their coastal town and also scope for greater community involvement. These appear to be appealing benefits in the face of an alternative that was to be “just another of thousands of ‘Tesco towns.’”
Waitrose is clearly a winner and I am sure will reap significant benefits from the opportunity to create their “greenest ever store.” Gaining the vote of confidence ahead of Tesco, no doubt, will have been satisfying too.
On this occasion it really appears that Waitrose and Mr Hay Smith have created the better offer. A more compelling option that recognises that the needs of Sheringham are bigger, more complex than the economics of traffic flow and jobs.
Getting your proposition right really matters.
The brightest young people choose Norfolk
I have recently curtailed my lifestyle of spending most of my week in London. I now have a fantastic opportunity to properly get to know my county, as well as my family. In this pursuit I encountered the “World Class Norfolk” website. (www.worldclassnorfolk.com)
This promotional site captures some interesting facts about the region and there are plenty of things to be proud of – much of which I didn’t know. (Did you know that Pocahontas spent quality time in the region!?)
One concern, however, was the first impression this website made. First impressions count and through phrases such as “fighting back” or “bust(ing) myths” I immediately felt a region on the defensive. (Unfortunately, intrigued by the phrase “normal for Norfolk” I popped it into google and soon found myself exploring the origin of this derogatory phrase).
Behind my concern is the observation that successful leaders retain an ability to take a joke without it denting their self-belief or the focus on their inspiring agenda. I would therefore urge those promoting the Norfolk ‘brand’ to single-mindedly focus on explaining why Norfolk is a great, indeed, “World Class” place to live (or locate to).
I expect the phrase “normal for Norfolk” will be quietly dropped as this campaign builds. Those involved or showcasing the region’s assets, I am sure, will find themselves more comfortable using/repeating the simple rallying cry of a ”World Class Norfolk” and will instinctively avoid diluting this with additional words or distracting past associations. Furthermore, they will want recipients googling the phrase ”World Class Norfolk” for more information and recognise that many in their audience are not concerned about our regional ‘baggage’. A key indicator of campaign success, of course, will be a growing perception of the region as “World Class.”
The good news is that there are plenty of reasons to be confidently asserting that the region is “World Class.” Norfolk is the safest county in England and getting safer. For parents, it is absolutely the perfect place for bringing up children. Also, those living here claim to have a higher quality of life and are more likely to be in good health. The region’s research and science credentials (including the University of East Anglia’s involvement in climate change analysis) are also very impressive. Plus, the retail experience, I am reliably informed by my wife and daughter (particularly in Norwich) is exceptional. Etc, etc.
I deal with brands and the Norfolk “brand experience” is undoubtedly very positive.
Retaining the brand theme, it is worth noting that one of the most discerning measures of any brand is the ability to keep those customers trying you for the first time – i.e. for ‘trialists’ does your brand experience live up to expectations and warrant loyalty?
Given this, the news that the University of East Anglia has the highest proportion of students who stay in their region after leaving university is extremely interesting. This forward-looking segment of the population – both bright and mobile – are more likely to choose to fulfil their potential in Norfolk.
This is great, I feel vindicated in my lifestyle change – clever, young people who have got to know their adopted regions, prefer Norfolk!!
Supporting the progressive, “World Class” credentials of the region, the University of East Anglia has launched the world’s first postgraduate course in brand leadership. The 15 or so students will be mid-way through their course and now familiar with the Norfolk experience.
I wonder what they would make of this site and associated approach? Armed with some insight into brand positioning, unshackled by past perceptions and hopefully advocates of ‘brand Norfolk’ I am keen to know what they could suggest to enhance this campaign.
In fact, I will ask them.
In the meantime, I wish this important campaign well and hope that increasing familiarity with the region’s “World Class” credentials will be swiftly reflected in a growing confidence and stature of presentation.













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