Showing posts with label Staying Ahead of the Competition. Show all posts
Showing posts with label Staying Ahead of the Competition. Show all posts

Wednesday, January 30, 2013

The Brand Leadership Choice

Lead or Follow – you decide?
By Andrew Fortunato
The other day I listened to a high level corporate leadership discussion about a vendor supply issue that was degrading product quality.  In a nutshell, this very large and well known company had been providing a very successful product to its guests for quite some time.  Recently the product supplier had reduced the size of the item.  Guests in local markets started to notice that one of their favorite treats was now smaller in size.  Guests started to complain to the store operators that the product size was smaller, and without a reduction in price, the item was no longer a value. 
One of the key benefits was the product size compared to competitors.  The size and quality of this product had come to be known and expected by customers.  Delivering on high customer expectations is an essential ingredient in brand leadership.  Brands are built by consistently meeting customer expectations.  Brands and companies achieve leadership positions by going beyond consistent routine delivery on customer expectations.  When a company suddenly and unexpectedly changes how they deliver on expectations, customers are disappointed.  Customers are then faced with a choice.  Customers will either grudgingly accept the new standard as the way it is, or take their hard earned dollars elsewhere, seeking better value.  Either way, when guests are disappointed, the brand is weakened, customers are lost, and sales drop.  You can also forget about gaining new customers.  Essentially customers are driven to the competition.
Why then would a company choose to disappoint loyal customers by accepting a reduction in quality and value from a supplier?  In this case, there was collective resignation amongst the leadership that this was just the way things are.  There was a feeling that since the supplier also delivered their product to other competitors, the size would be the same across the expanse of the market space.  This is exactly the type of thinking that rapidly destroys brands.  It is the reason that I never allow “it is the same as everyone else” thinking to take hold within a marketing organization.  If you do, you are forgetting the concepts of basic product differentiation.  We sell on differences, and a unique value proposition.  Become the same as every other competitor, and what are you left with?  This type of thinking is dangerous, and cannot be tolerated.

Brand Leadership is a Choice Great Brands Make
One of the secrets of great brands is to never accept this “same as everyone else” mentality.  Brand leaders are constantly looking for ways to stay ahead of the competition by delivering new and unique value to their customers.  No brand ever took leadership of an industry, or category by delivering on the same brand promise as the competition.  Leaders lead.  As the Marines put it in one of their classic commercials from the 1970s, “if you just want to be one of the boys, than stick with the boys” (http://www.youtube.com/watch?v=EMTdp4AnDVk).  The Marines have consistently been recognized as one of the world’s best known and respected brands.  The Marines’ marketing is second to none in any industry.  While the Marines’ marketing has achieved iconic status, consistently delivering on high expectations is what has built the brand over more than two centuries.  Without meeting and exceeding customer expectations you have no brand.  Let your brand stray down the path of being like everyone else, and see what happens.  Life is full of choices.  Brand leadership is a deliberate choice.  You decide which is better, to lead or follow.  Your customers will let you know how they decide.
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About the author: Andrew Fortunato, https://www.linkedin.com/in/AndrewFortunato, former Marketing Chief for the Marines, CMO, consultant, and speaker, advises and leads organizations seeking marketing and operational success. Andrew shares insights in-person and on his “What Can Your Brand Learn From The Marines?TM” blog at https://marinesbrand.blogspot.com.
Copyright © Andrew Fortunato, 2013

Thursday, December 27, 2012

Staying Two Steps Ahead of the Competition


War Gaming for Business

By Andrew Fortunato

Your company is in an intense competition every day.  The battle to capture market share, gain new customers, and outmaneuver competitors, at times can be a fight for the very survival of your company.  This is serious business to be sure.  Though the consequences can be devastating, many companies routinely fail to consider the competition when creating new products, and launching new strategy.  When creating strategy and creating strategic plans, one tried and true method used by the Marines is slowly finding its way into the business world. 

The practice of war gaming is currently a topic of discussion in the McKinsey Quarterly article, “Battle-test your innovation strategy”.  War gaming allows your company to avoid group think and stove-piping.  Involving all functional areas within an organization creates alignment and ensures readiness to move forward as one organized team.  Taking into account how the market and competitors will react allows a company to plan ahead and have their next move ready.  Planning for competitive reactions and knowing what to do two steps ahead of time is a strategy that can propel a company to a market leadership.
 
The Path to Innovative Strategy 

War gaming important scenarios is how the Marines plan for contingencies and develop back-up plans.  Knowing what to do next avoids knee jerk reactions to unanticipated change.  While war gaming has been engrained as a highly successful long standing process by the Marines, the process is only now being discovered by the corporate world.   War gaming is a practice I have helped introduce into the business planning process in several organizations.  War gaming can make an organization more efficient, agile, and competitive.  So, how are you planning for your next product launch, or innovative change to the market?  Don’t let your innovation strategy suffer from failing to anticipate competitive reaction.            
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About the author: Andrew Fortunato, https://www.linkedin.com/in/AndrewFortunato, former Marketing Chief for the Marines, CMO, consultant, and speaker, advises and leads organizations seeking marketing and operational success. Andrew shares insights in-person and on his “What Can Your Brand Learn From The Marines?TM” blog at https://marinesbrand.blogspot.com.

Copyright © Andrew Fortunato, 2012