Small Business Marketing: Influentia

Case Study: When to rebrand your business

Note: This blog has moved! For continued updates about small business marketing, visit my new blog Manizesto, or subscribe to the Manizesto feed.

It has been barely a year since Court TV rolled out with a brand new logo and corporate image, but the cable channel is doing a complete rebrand all over again. Two days ago Court TV announced that starting January 1, they will be known as TruTV to better "describe the kind of programming we do in prime time," according to the channel's executive VP and GM Marc Juris (Full article). TruTV's new lineup will include shows that "would happen whether the cameras were there or not," Juris says, which differentiates them from largely scripted reality TV shows blasting the airwaves.

So is it a smart move to rebrand so soon after recently doing so? Is the Jan 1 launch date a good idea? Does the name really matter, and will rebranding alienate those familiar with the already established brand?

Although it is never easy and it is never a "good" time to take an established brand and change it to a new one, the timing seems to be right for Court TV. The channel is still in a growing stage, adding viewers every quarter for the last two years (something most networks would love to be able to claim). And the network's well-received shows that focus more on true-to-life events has clearly changed the direction the channel is headed.

Alienation when launching a new brand is always risky, but follow examples of good brand changes (a la Cingular > AT&T) and the transition will be smooth. Also look at recent rebranding efforts by other cable networks: OLN > Versus and The Nashville Network > TNN > The National Network > The New TNN > Spike > Spike (new logo).

If you're a small business looking to rebrand, consider the timing, audience, strategy, costs, and long term goals to help you decide if and when to begin launching your new brand.

For regular insights and helpful analysis of real small business marketing, subscribe to the Influentia blog.

Why the generic brand feels generic

Note: This blog has moved! For continued updates about small business marketing, visit my new blog Manizesto, or subscribe to the Manizesto feed.

Generic brands always feel inferior to name brands. Why?

Every major grocery store has a line of generically branded products (think Western Family, Kroger Value and Great Value). They are usually placed on the highest and lowest shelves since stores make so much money from other brands vying for the eye level shelf positions. They are priced way lower than name brands and normally taste slightly different from name brands.

But what stands out most to me is the horrible designs generic brands boast. Compared to name brand products, generic brand's designs are way, way under par. Consider the evidence. If prices on these two groups of products were the same, which one would you rather buy?

This one...

...or this one?

I think the answer is obvious. The fact that generic brands don't invest in good quality packaging and design tells me they are banking on people purchasing their products solely based on price and are undervaluing what good packaging design can do. Maybe they've done the market research and found that design is not relevant, but my gut tells me if there is an opportunity here for competitors (especially small businesses) to compete strongly in this space. If you invest in good packaging design and have basically the same products, you have an edge on traditional generic brands.

If you'd like more small business marketing tips, news and insights, subscribe to the Influentia blog for regular nuggets of marketing insight.

Most interesting quote I read today

Note: This blog has moved! For continued updates about small business marketing, visit my new blog Manizesto, or subscribe to the Manizesto feed.

From Michael J. Fox:

"No matter how much fame you have, it’s not something that belongs to you. If I’m famous, that doesn’t belong to me -- that belongs to you. If you can’t remember who I am, I’m no longer famous."

Although Fox's quote is about dealing with his celebrity status, what he wrote is also true with marketing. If people can't remember your messaging, you have no brand.

Full Esquire article: "What I've learned" (strong language).

How to sell something you literally don't sell

Note: This blog has moved! For continued updates about small business marketing, visit my new blog Manizesto, or subscribe to the Manizesto feed.

It's all about perception, isn't it? Today I read a quote from Ken Calwell, Domino's chief marketing officer, on the pizza juggernaut's approach on what they sell to customers:

            "Our target's need isn't for pizza, it's for convenience."

Which it true. Who needs pizza? And yet Americans eat almost 90 acres of it every day. Sure, it tastes good, but it turns out people buy pizza because it is a convenient, tasty dinner that only requires one phone call (or one website visit). You don't even have to leave the house.

Calwell's understanding of this concept is important as a marketer, and indicates what incites people to become customers. Good marketers have a keen understanding of what makes their target customers tick. It requires learning their behaviors and needs, then building a product or service that meets them.

Which means oftentimes you'll discover that you're actually selling something you don't literally sell; instead, you're selling another intangible benefit. Here are a few examples.

- Domino's doesn't sell pizza, they sell convenience.

- Apple doesn't sell computers, they sell style and simplicity.

- Chevrolet doesn't sell cars and trucks, they sell an American tradition.

- Wal-Mart doesn't sell you convenience, they save you money.

- Nike doesn't sell shoes and apparel, they sell a lifestyle.

- ADT doesn't sell security systems, they sell you peace of mind.

- Rolex doesn't sell watches, they sell status.

- Home Depot doesn't sell lumber and tools, they help you beautify your home.

- Swiss International Airlines doesn't sell air travel, they sell pampering.

- Jell-O doesn't sell flavored gelatin, they sell low-calorie snacks.

- Coca-Cola doesn't sell flavored carbonation, they sell refreshment.

- Celebrity Cruises doesn't sell you boat rides, they sell you complete relaxation.

Worst Book Title I've Heard

Note: This blog has moved! For continued updates about small business marketing, visit my new blog Manizesto, or subscribe to the Manizesto feed.

A colleague of mine recently showed me the cover of what is certainly the worst book title to hit bookstores in a long time- Cooking with Pooh. Mmmm, doesn't it just whet your appetite?

I find it hard to believe that Disney (NYSE: DIS) would let this book go to print out without anyone noticing the obvious problems the title could have. More likely is that they were banking on the strong brand of Winnie the Pooh to overshadow any negative association a name like this might have. Branding agency Igor calls this the Theory of Negativity. Igor gives a good example:

"Caterpillar is the most effective name in the earth-moving equipment sector precisely because it is not "Bull" or "Elephant" or "Workhorse" or anything else that is linear and obvious. Caterpillars are weak and easily squashed, yet Caterpillar is the most engaging name in its industry."

Your brand is only as strong as people's association with your company or product name. It looks like in this case, Disney had too much confidence in the Winnie the Pooh brand, which is why the book is out of print (presumably getting renamed).