Company makes dough on the Den while another eats it.
Beg to Differ is going to focus on a beauty and the beast story of two hometown brands that showed up on Dragon’s Den last night, order with very different results. One plucky little company made a pile of money from investors, cost while the other – a much larger organization – wasted a pile of dough. Want to find out more? Of course you do. Read on.
The Beauty: spreading the dough on the Dragon’s Den
Beg to Differ knows that our non-Canadian readers probably won’t be familiar with the Canadian version of this reality TV show where real life entrepreneurs compete to get funding from real-life millionaire business moguls. But it’s a great show, visit web the guest entrepreneurs range from brilliant to insane to just cheesy, and it really helps average viewers get into the entrepreneurial process.
Last night, one of the big winners was the product “Yummy Dough” pitched by Stefan Kaczmarek from Germany and Tim Kimber from Ottawa (who owes me a few pairs of new shoes because my three year old loves his other product PlasmaCar so much).
If you’re like me, you probably hear “edible” and “modeling dough” and you first think of the PlayDoh most of us grew up with, then you think “YUCK!” Then if you have young kids like I do, you probably also think “I don’t want my kids to eat their PlayDoh!” But this is pliable cookie dough that you can bake into cookies.
Check out the Yummy Dough site. It tells its story in a fun and compelling way (but make sure you quickly mute the annoying and slightly creepy background noises). One quick positioning note for the owners now that they have some marketing dollars: they need to steer away from the word “clay” and focus more on the “make your own cookies” aspect. It needs to seem like equal parts toy and food product – which will take some careful work.
The Beast: dumping dough on the Dragon’s Den
But another Ottawa-based “brand” is wasting money as fast as Yummy Dough is making it – probably faster.
Take a look at the screen shot (above) from the Web site, and in particular the sponsor logos in the upper right. You’ll probably recognize the Cadillac insignia. You may be curious about the “Ivey” brand – which is the University of Western Ontario’s school of business (note to Ivey – great name, but negotiate a short tag under your logo with the words “School of Business”).
But unless you’ve directly done business with them or have a family member working for them, you probably won’t know what the letters “E.D.C.” stand for – even if you are Canadian. Yet, EDC has been pumping truckloads of money into season after season of the Dragon’s Den to build brand awareness!
So who the heck is EDC?
Some Hints:
Don’t look for it to be spelled out for you anywhere on the Dragon’s Den page. It’s just EDC in the video ads, side banners, and sponsor logos.
I’ll give you the “C” – it’s Canada, and yes, this organization is run by the Canadian Government.
It is often confused with two other corporations that do similar things and also go by TLAs (Three Letter Abbreviations): BDC and CCC.
See if you can find them on this Wikipedia “EDC May Refer to… ” page. And I’ll give you a bigger hint, it’s the 20th EDC on a list of 25 things that call themselves EDC.
Still stumped?
Well, if you’re not baffled, call your brother who works at EDC and tell him what a bang-up branding job they’re doing. If you are, you’ve helped me make a point I’ve made many times here on Beg to Differ:
An abbreviation is not a brand!
Read my July Op Ed from the Citizen with the message "NOMO" useless acronyms!
But I’ll warn you, it’s a lot of information, and you’ll have to wade through some sections knee-deep in self-congratulatory hype. So as a public service, I’ve distilled 10 aspects of the list that jump out for me (below).
n The past year for the financial industry in one concise picture.
This year, ING crashed right off the list, along with a few other financial industry stalwarts.
(Image from the Dutch-language blog www.molblog.nl/bericht/interbrand-top100-/)
(But first, a slightly bitchy side note to Interbrand: guys, if you’re going to release these three days early, please 1) skip the giant countdown clock , and 2) actually send notices to people that signed up. Okay, my chest is clear, on to…)
10 Highlights of the 2009 Best Global Brands
1) Coke is still it: Top five brands are unchanged
The top five brands on the list are exactly the same brands in the same order as last year, and although Microsoft and GE lost more value than most brands ever have, with the spread in value between the top four, those mega-brands don’t look likely to change anytime soon.
Nokia’s brand is losing steam however, while gaining ground behind it is Google (in a big way) and McDonald’s (growing, but more modestly).
2) Google is the big disruptor
The Google brand shouldered ahead of Toyota, Intel, and Disney, and now is very close to overtaking McDonalds. As a matter of fact, its brand value has almost doubled since 2007, when it was 20th in the rankings.
Think about that for a moment: “Google” has grown from geek-niche-buzzword to #7 brand in the world in just 10 years – growth rates we haven’t seen since, well, Microsoft pulled the same trick for the ten-odd years before that.
But now that Google is starting to look more and more like a big, aggressive company (because they are), can their brand sustain its quirky garage-band appeal? Already their “don’t be evil” internal mantra is attracting more cynicism than praise. And while Googlers are still innovating, and making a lot of feel-good noise with their open source projects, one wonders when critical mass and inertia kick in (see Microsoft?).
3) Other big winners this year
By dollar value gained, H&M, Ikea, and Amazon gained a solid amount of value this year.
But apart from the indominatable Google, Apple grew the most, adding an incredible $1.7 Billion in brand value. Apple is the darling of the branding industry of course and a favourite of mine (see my Steve Jobs tribute), with its creative energy and focus on human-friendly products and messaging, so it’s heartening to see that doing it right by your customers still pays off during a recession.
4) Surprise! Financial institutions are the biggest losers
Have you heard about this recession thing? Well, if you have, then it should come as no surprise that the industry hardest hit in the brand value bottom line was the same industry that imploded and begged for (and received) massive government bailouts.
American Express, Morgan Stanley, and HSBC all lost billions of dollars of brand value, while Citi and embattled Swiss giant UBS both lost half of their brand value in one year. Several others dropped right off the list, including Merryl Lynch, AIG, and ING. Could it be a coincidence that many of these losers also have meaningless nomonyms for names (see my definition here)? Probably just a coincidence, but their names certainly didn’t help them.
5) Automobile brands: losing value
Also not surprising, every automotive or motorized equipment manufacturer on the list except Ferrari lost a significant amount of brand value this year. Harley Davidson and Lexus lost the largest percentages.
But despite losses, a few brands managed to hold their own or gain ground. Apart from Ferrari, Audi managed to gain, while Ford kept its ranking – the only one of the “Big Three” American manufacturers to have a substantial corporate brand seems to have benefited from its perceived stability as well. Another star: Hyundai:
Hyundai boosted ad spending and aggressively promoted its Assurance program, which allows buyers who lose their jobs to return cars. Hyundai’s brand value slipped 5%, but it moved up three places to No. 69. – Business Week.
6) Food and clothing: the basics still sell when times are bad
You can download the whole Interbrand report here.Comfort food standards Campbells soup and Burger King appeared for the first time, while all the other Big Food brands gained in the rankings – Nestlé, Heinz, Pepsi, Kellogg’s, and Danone. Restaurants KFC and Pizza Hut creeped ahead a few positions, while Starbucks lost 16% of its brand value and fell five spots.
The same pattern held true for clothing brands – although it must be said that the list is incredibly top-heavy with luxury brands – so Gucci, not GAP; Rolex over Timex. I suspect that this is because of a) the weighting given to “brand premium”, that is, the amount consumers are willing to spend over and above competitors, and b) the fact that lower-priced clothing brands for us mere mortals tend to be less global.
7) Adobe: New kids on the branding block
Abode finally made the list after it “recorded record revenue and double-digit growth for the sixth consecutive year. They weren’t immune to the downturn (they lost money overall), but importantly from a brand perspective, they grew strongly in the consumer preference category. And their brand awareness continues to grow through the ubiquity of their consumer-facing products Flash, and the Acrobat / PDF line.
8 ) Brand USA – still the biggest brand builder
We were watching to see if the recession would dent the US dominance in global brands. With 52 brands on the 2o08 global 100, the Yanks are the uncontested branding champs, but those of us who were hoping for a moment of guilty schadenfreude were mostly disappointed that the US claims 51 – still a majority – of the 100.
Note to the rest of the planet: keep working.
9) No new countries
The names of countries in the Global branding club stayed exactly the same this year with only 9 brands coming from outside Europe and North America (Japan 7, Korea 2). Russia, China, India, Brazil, and the rest of the world have yet to break in. But of course, it’s only a matter of time.
10) Brand Canada: maintaining numbers, but losing ground
Both of our two Canadian contender brands Thomson Reuters and Blackberry grew this year, and both made gains in the rankings with Blackberry jumping 10 spots to number 63. But they weren’t joined by any other brands, and what’s worse, we slipped a rank in number of brands-per-capita when the UK added a brand and vaulted ahead of us. On that list, we were 10th; now we’re llth.
On the topic of choosing spokespersons for your brand wisely, pill here’s a photo of a poster in the window of a bank in Italy – sent today by our own Lauren Hughes. It made me laugh hard.
Spotted in a bank window in Italy by intrepid Beg to Differ reporter Lauren Hughes
Of course, in North America, Homer has shilled for Mastercard as well – as in the You Tube video of a 2004 Super Bowl commercial below (with one of the weaker voice-overs ever in a Super Bowl ad). But to me, there’s a difference between the ad, in which Homer is able to be his bumbling, irresponsible self and still get the point across, and having his portly face on my credit card.
I’m trying to imagine pulling MC Homer out at the desk of a five-star hotel. “Uh gosh sir, do you have anything else?” Doh!
Aquisto: 2 Euros;
Mini rate: 25 Euros;
Homer’s brand equity on your credit rating: Priceless
Any wonder Flanders uses the other card?
Homer Simpson shows his credentials as a reponsible credit consumer.
The Swiss success at branding isn't an accident. It seems to be a culture they cultivate. And you?
1. Sweat the small stuff. Think precision.
A country can be a great brand. But it isn’t an accident. It takes careful work, pill discipline, and an attention to detail – think of a fine Rolex or Tag Heuer watch. Switzerland is tiny, but by carefully tuning and refining the little gears that run their brand image, they’re ensuring they’ll be winners for generations to come.
2. Refine the recipe. Make it intentional.
The Swiss have thought through all the ingredients of their brand, and the results are published in a fantastic brand manual that speaks for itself. And it’s right there online for the world to see. It is that sense of refinement and building on tradition with consistency that has bred great chocolate and food brands as Nestlé, Toblerone, and Lindt.
3. Trust: the logo is just the tip of the Matterhorn
Trust is not spoken. It must be earned through consistent behaviour over time. You can’t just stick a Swiss flag on your product – even if you’re a Swiss company. The Swiss have very stringent rules and a continuing debate around what high level of quality constitutes “Swissness”. Which leads to better products and more trust, and more value for the Swiss trademark. It’s all tied together.
A great country brand is adaptable, sturdy, and practical. In the case of brand Switzerland, they are building their brand built around three key tools (“pillars” of their brand platform):
1) Reality – the country’s real strengths and limitations, both in the sense of real business assets and liabilities, but also in terms of physical location, historical facts, shifting allegiances, and other tangible influences.
2) Existing perceptions – how the country is perceived abroad – for better and worse. The smart brander draws on positive themes that already exist in the minds of outsiders that only have to be tweaked, not created from scratch.
3) Intangibles – positive, but subjective, forces driving the country’s brand like a track record of innovation; internal attitudes to themselves (and to change); and all the other internal brands that are already successfully trumpeting the idea of the country in the marketplace.
5. Apply the same logic to your brand.
Read those 3 pillars again, and insert “company” or “charity” or “government service” where it says “country”. Then check out the brand manual linked above.
So ask yourself:How are you doing?
Is your brand running like a Swiss watch, as trusted as a Swiss Bank, as mouth-watering as fine chocolate, or are you just yodelling your customers’ time away on a mountaintop?
This boot camp is for all managers and executives with marketing, PR, or communication responsibility–whether in technology, government, not-for-profit, or other industries. Basically, if you manage a brand and want to learn how to manage it for maximum connection and value (for your customers and for yourself) this boot camp is for you.
Morning Session provides theory, practical case studies, & tips
This seminar provides a great overview of three important topic areas for all Brand Managers:
What is a brand, and why is it important? You’re being branded one way or the other; we’ll help you take control.
The building blocks of brands. How to analyze, develop, and leverage the different facets of corporate strategy to ensure that your brands are making the right promises, and following through.
Brand management. How to use the brand elements and marketing tools at your disposal to manage your image in the minds of consumers. How to be a brand stickler without being seen as a “brand cop”. How to get your colleagues to live the brand.
Reason 2: afternoon workshop (only for full-day participants)
Afternoon workshop (available only to full-day bootcampers) is more interactive, and involves hands-on critique of your brand.
In this smaller-group setting, you’ll get a chance to apply the theory from the morning to your brand and get help from other participants and the workshop leaders. The workshop will allow you to do a point-by-point inspection all the aspects of your brand. But note that the afternoon is for active participants only; be ready to give and take constructive feedback.
Reason 3: Take-aways
All participants will receive 1) Beg to DIFFER Brand Strategy Workbook plus, full-day participants will also get 2)a personalized assesment of your brand strengths and challenges.
Reason 4: Beautiful setting
Nepean Sailing club is at 3259 Carling Avenue, just West of Andrew Haydon Park – only a short drive from downtown and Kanata. This venue offers stunning scenery and a relaxed atmosphere – we took the photo below from just outside the conference room. It’s the perfect place to spend a late August day gearing your brand up for the fall. Google Map here.
Boot Camp will be held at the beautiful Nepean Sailing Club - 3259 Carling Avenue on Lac Deschênes near Andrew Haydon Park
Reason 5: don’t take our word for it
“I thoroughly enjoyed the day and want to thank you and your colleagues for your efforts. I believe this seminar is a definite requirement in the Ottawa area and you have already put in place many of the cornerstones to build on to make this a truly awesome and interactive event for new and seasoned brand management professionals.”
Dan Chaput Director, Marketing Communications
March Networks
