Be More Dog and Be More Rewarded

It’s very rare to find a brand so far ahead in consumer perception scores and satisfaction surveys than O2. If you are not aware of how much success the mobile phone provider has with winning long term brand equity with their consumers take a look at their brand perception scores from last year.

http://www.brandindex.com/article/o2-breathing-success

How does O2 ensure such a consistent and strong brand advocacy scoring? Well quite simply they reward their customers and give them incentive for staying loyal to the brand. O2 operates a customer centric strategy and has created a world where loyal, committed customers are treated with the best deals before others. In this model rewarding your longest serving customers with exclusive offers comes first before acquiring competitor customers.

Customer centricity is not a new concept however very few companies have truly grasped the concept and even fewer have chosen to embrace it. Think of the numerous companies The Brand Avenger have featured over the last 6 months and decide for yourself how many of these tragic brand stories have truly grasped the concept of putting the customer at the heart of your decision making.

Putting the customer at the heart of all major decisions has transformed a business, which experienced a traumatic and desperate re-launch following the transformation from BT Cellnet in 2002. Incredibly Accenture have predicted O2’s customer first approach has led to ROI of 80:1 for its marketing communications.  Whether it be through the priority event access given to O2 customers through the rewards scheme or the roll out of iPhone 4 for customers on long term contracts before new customers O2 appear to be practicing what they preach.

https://www.marketingsociety.co.uk/the-library/2012-o2-long-term-marketing-excellence-case-study

O2’s most recent campaign has been met with critical acclaim from many of the advertising industries harshest critics. ‘Be More Dog’ has been praised for doing something different in an industry littered with repetitive messages and copycat advertising regurgitated across multiple media platforms.

http://www.marketingmagazine.co.uk/article/1208758/adwatch-o2s-be-dog-will-long-running-success

In many ways ‘Be More Dog’ could serve as a perfect eulogy for O2’s loyalty based strategy. In a world where many mobile phone operators are happy to treat customers as just another financial transaction O2 have taken a stand and have chosen to offer something extra. O2 are rewarding the very people who have taken the decision to spend their hard earned money on O2 products. Under this context perhaps we could all do with embracing the advertising slogan. So the question is how many of us are going to embrace O2’s strategy and  ‘Be More Dog?’

Kicking the habit... 'Crack' Berry users just don't feel the same high anymore from the outdated mobile device

There is an advert that has been playing time and time again on Sky Atlantic in the UK. It features the new Blackberry model with particular focus on the dynamic camera feature. The problem is the feature wasn't really that new or game changing 6 months ago let alone now. It is simple, little things like this which probably explains why Blackberry has continued to experience a decline in sales and brand value. The company has lost its way in the competitive world of mobile technology, however what has really set the alarm bells ringing is the decision by a board to sell, which clearly demonstrates they are fresh out of ideas.

http://www.theguardian.com/technology/2013/aug/12/blackberry-for-sale-smartphone-market

An $85 million decline in sales last year would seem to suggest the former 'crack-berry' addicts have gone cold turkey. Blackberry has fallen behind the market leaders and is failing in the battle with Apple and Samsung. The company has clearly lost its way and the brand reputation is suffering as a consequence.

http://www.eweek.com/mobile/slideshows/blackberrys-mobile-market-decline-the-result-of-10-basic-factors/

Is Blackberry an example of what can happen when a company moves from an innovator to the imitator? Blackberry doesn't even seem to know where its product offering sits. it clearly isn't appealing to the price sensitive market and has allowed itself to fall behind in the battle to win share with the upmarket consumer. If smart phones today really are more about music and photos then they are about email then Blackberry clearly needs to be offering a viable alternative in this space.

http://www.theglobeandmail.com/report-on-business/the-blackberry-comeback-that-wasnt/article13719761/

And what about the corporate market that Blackberry has for so long experienced a sustained growth in? Well it turns out that Blackberry can no longer count on this market to bail it out of its current position. It is clear that even if the Blackberry review committee decided that the best way forward was to drastically downsize even more so than getting rid of the 5,000 employees they have already made redundant recently and go after the corporate market exclusively they might not even have an audience to cater for. When Blackberry first started to gain brand recognition and increased market penetration within the world of big business they were offering a valuable advancement in communication. Now they can't even offer the app, video or display capabilities that are needed to support the basic requirements of every small and large scale corporation.

http://yougov.co.uk/news/2013/08/14/blackberrys-new-model-failed-stem-its-brand-declin/

Brand index scoring doesn't paint a pretty picture for the future of the Canadian phone manufacturer. A steady decline from 2011 in both the UK and US markets demonstrates a clear message for any brand strategist about the dangers of losing touch with your market. Blackberry were once in a position where the brand was big enough to sustain the challenge of some of its fiercest competitors. Now they are in a position where without some careful planning and a clear and concise strategy it is in danger of being entirely squashed and swept up into the brand graveyard.

A is for anxiety at Apple! Can the tech giant continue to rule the market through innovation?

If you would like a brief history of Apple and can’t be bothered to venture onto Wikpedia for the answers you seek you should check out the below article.

http://www.makeuseof.com/tag/rise-fall-rise-apple-history/

In a nutshell Apple have evolved from a small start up into the tech giant it is today.  146 million iPhones have been sold in the last 4 and half years across the world while usage in the UK is around 75%.  But it isn’t only mobile phones where Apple has built a solid competitive advantage. They have also successfully dominated the personal computer and MP3 industries. Regardless of the market Apple enters, its brand has always been traditionally built on a firm foundation of innovation, entrepreneurial spirit and disruption. 

And therein lies the issue in recent times for Apple! Whether it is right or wrong many are predicting the company has lost its spark for innovation and will continue to experience a decline in brand value as it loses its flair for disruption. One tell tale sign that this this grim commentary may have legs can be seen with the recent news that the iPad has experienced a decline in sales compared to a rise in sales of all major competitors.

http://www.benzinga.com/news/13/07/3791142/android-windows-tablets-rise-18-as-apples-ipad-declines-aapl-goog-msft

You maybe quick to draw the conclusion that decline in sales is expected when you are the market leader operating in a saturated market. And whereas many marketers are quick to jump on the bandwagon and predict that the end is nigh for Apple we shouldn’t forget this important fact. It is tough at the top and Apple may now be simply becoming a victim of its success in the areas it made such a widespread impact in. So if this is the case what could be some other potential reasons for Apples decline in brand value?

http://www.forbes.com/sites/parmyolson/2012/11/05/iphone-loyalty-is-waning-are-you-surprised/

Some believe a fall in brand loyalty has led to a decrease in sales value and market share for the company.  Apple wouldn’t be the first company to not give loyalty the proper respect it deserves. Little to no effort has been made to understand the vast array of consumer and how this data can generate measurable sales value for the company. The lack of emphasis from Apple to lock the customer into the Apple brand maybe the reason why some competitors in the android market have grown up to 67% in the same year Apple has experienced decline.

Reading the above it is clear that there are several reasons why Apple has experienced recent misfortunes. However, we can also seen in the majority of articles featured in this blog that many regard the perceived lack of innovation from the famous rebels at Apple as the main reason the brand is struggling. And you may suggest that this is a concern Apple shares when we see how this year there was a 250% increase in R and D from Apple to bring the total investment to $3.5 billion.  Apple had to do something to address these concerns, as lack of innovation is a clear concern from all major analysts who continue to twist their knives into the core of the company.

http://edition.cnn.com/2013/07/23/business/apple-earnings-iphone-technology

A is for anxiety at Apple! Can the tech giant continue to rule the market through innovation?So what does the future look like for Apple? Well the Brand Avenger would suggest regardless of what the critics say we need to give apple credit where credit is due. The company still enjoys the luxury of being the 6^th largest company in the US and is expecting a 9% increase in sales in 2013. So whereas it is clear Apple needs to launch the next big thing that will changes the world sooner rather than later let’s not be too quick to put all our apples in one basket on this subject.

Flogging a dead horse? Can Myspace rise from the ashes?

MySpace is back! If you didn’t know that then you should check out the below Youtube clip

http://www.marketingweek.co.uk/news/myspace-returns-with-star-studied-tv-ad/4007051.article

In many ways MySpace’s fall was more impressive than its rise. The brand should have been able to hold onto its position of power in the Social Network space. The fact that unique visitors fell from 78.9 million per month in 2006 to 34.8 million three years later clearly demonstrates how big its decline in popularity was.

There are many theories as to why MySpace ultimately failed to maintain its dominant market position. Many blame the sale of the Social Media site to News Corp as a preliminary blow that was hard to come back from. De Wolfe himself has cited a pressure to monetize the site following the sale as a step in the wrong direction. Whatever the cause it is clear that De Wolfe’s earlier claim that MySpace would have 400 million users by 2015 is just not obtainable.

http://www.businessweek.com/magazine/content/11_27/b4235053917570.htm#p2

So why would a group of investors try and salvage this social media ship wreck? Is it even possible to reposition a brand and restore it to its past glory following such a public fall from grace?

There are examples of companies that have successfully repositioned brands and there are examples of companies which have failed and gone out of business. Clearly the success will depend on a number of factors but most importantly a clear and viable long-term brand mission will be important.

MG Rover had once enjoyed a healthy position in the UK car market. However, following years of decline the Birmingham based brand was left in a perilous position by the turn of the 21^st Century. Following a buy out in 2000 there was hope that a brand refresh and a product re-launch would be enough to save the company. But when it came down to it Rover reputation was too damaged to recover and it wasn’t long before the car maker was confined to the brand graveyard.

http://news.bbc.co.uk/1/hi/business/4488899.stm

However before we begin to assume there is no hope for MySpace we should consider the tale of Apple. In 1993 you may have been forgiven for believing the rise and rise of Microsoft would lead to a permanent burial of the company responsible for the Macbook in the 80’s

http://www.makeuseof.com/tag/rise-fall-rise-apple-history/

But Apple wasn’t about to lie down and die an easy death. Apple carefully evaluated its position in the market, where technology was going and most importantly stuck to its gun on its brad strategy moving forward; Apple would be the icon of doing things differently ad this couldn’t have been anymore evident in its unique differentiated approach to releasing MP3 players and phones with a clear focus on usability and a rebel image. And in terms of brand success the rest is history.

http://mashable.com/2013/06/12/new-myspace-launch/

Reading the above review which details some of the key changes in Myspace strategy it is clear that it is going to take more than the removal of a capital S in the logo to create success. You can’t argue with the ambition of the new owners and the clear focus they are placing on music, personalized radio station content, etc. And if nothing else early Brand scoring metrics will probably be music to the investor’s ears as negative perception continues to fall as detailed below.

http://www.forbes.com/sites/brandindex/2013/06/19/myspace-buzz-catches-up-with-social-media-giants-amid-relaunch/

It is clear that Myspace can go one of two ways in the future. It can stick to a strategy look to offer a differentiated product portfolio and have a clear aligned band strategy or it can jump from one strategy to another in a desperate search to provide a purpose and meaning to the target audience. Whatever way it goes there is no doubting it is a massive task and a warning to all powerful brands in any market that you can’t forget about your brand strategy.