For decades, Toyota has basked in the glow of one of the true gold standards in brand image. Say the name “Toyota,” and it immediately conjures thoughts of superb quality, legendary reliability, high resale value, and rabid, cult-like customer satisfaction. Most brands would kill for just one of these superlatives. Toyota owned them all.

So when rumors, and then actual facts, began to swirl around this platinum brand, observers were sure there’d be a swift and confident response.
Instead, there was a relatively tepid reaction from the brand, as if they simply couldn’t believe the situation themselves. Hours turned into days as accusations mounted, and still the brand’s reaction was anything but premium. We heard vague, half-hearted excuses and conjecture designed to deflect blame, rather than accept it.

Only now, weeks later, is the President of Toyota finally (albeit begrudgingly) admitting fault and promising to correct the myriad of problems the brand is now facing. The lesson to be learned here? A premium brand’s response in times of crisis must also be premium. Quickly assess the situation, weigh your options and then step up and claim ownership of the problem. Take full and complete responsibility. But most importantly, state a clear and concise plan for correction. Your current customers will appreciate this approach and be reassured. And prospective customers will admire and respect your honesty and integrity.

Then, in the end, the result will simply be a minor fender-bender on your brand – quickly fixed and forgotten. Versus a long, protracted ordeal that could leave your once-proud premium brand a total loss.

So, while knee-deep in indexing products within the grocery, home, software, and health & beauty categories, I began to wonder what would happen if I indexed the popular sites YouTube, MySpace, and Facebook against each other. Taking information from Mediamark Research & Intelligence® (MRI), Google analytics and other special goodness (we’ll never tell!), our system plotted these guys on a scale of 0 to 100 in what we call “premiumness.”

Not all too shockingly, MySpace came in as the least premium with a score of 5 out of 100, while Facebook ranked at 49, and YouTube at a whopping 96! Among other factors, the interesting details that surface include the knowledge that 49% less information is consumed on MySpace than it’s counterparts. Also, 45% of MySpace users also use Facebook, which, if talking about cream cheese, we’d consider to be a brand loyalty problem.

The data also reveals interesting trends in the buy styles of these media consumers—20% of YouTube users fall into the category of “Buyers of the Best.” This generally denotes that they are brand loyal and tend to be willing to spend that extra dollar to get it. YouTube users also tend to have a higher overall income and have the most loyal following in incomes of $200K+.

While all this data is wonderful, how do we apply it to marketing in the real world? It may not seem too far-fetched from our current assumptions that YouTube is pandemic, Facebook is getting there (if China will let them), and MySpace is just plain sad. However, when structuring a marketing plan for a brand that utilizes these three modes of social media transportation, it is emperical evidence that it does matter which brands advertise where.

For instance, even though my last post indicated that 18–22 year olds are now purchasing more specialty food items, a such brand should not inherently push all their efforts into a MySpace campaign. We learn in this study that not only are MySpace subscribers less loyal to brands, they also aren’t the 18–22 year olds with the cash to spend. Also, they tend to lean toward coupon purchases, which most specialty foods cannot afford to do.

So, while this exercise is not 100% fool-proof—and is done mainly as an illustration (we charge for the real thing!)—it does convey the general idea that not all entities within a category can be premium. There are definite factors determined by the consumer’s perceptions, behaviors and experiences that shape what your brand is. And doesn’t it just make you the least bit curious to find out how premium your brand is?

One interesting seminar I attended features the NASFT 2009 Specialty Food Consumer Information. Without giving the farm away, there were some staggering realizations in this handy dandy little book that raise some very good questions. When I think of advertising in the specialty food category, I immediately envision those ads targeting older women and their family, making great choices for the home with a little extra expendable income. However, the latest data seems to show some staggering shifts in consumer trends.

The report shows that 57% of the 18–24 demographic purchase specialty foods, as opposed to the 38% of those 45–54. Of this large population of youngsters, 64% of them are buying specialty cold beverages (whoo, hoo to Red Bull!), and the majority admit that they buy these items outside of their income bracket mainly to show off to friends—Why, hello, Bill. Would you like a little bit of this brie? Contrary to common sense, the landscape has changed from simply the well-educated foodie, but now it encompasses your average college kid with mom and dad’s expendable income!

This is just yet another example of why it is so important to look at your marketing landscape with more than just assumptions and gumption. There must be more than just a “spaghetti” tactic—an idea we just throw at the wall of consumers and hope sticks to something. Though it is a rudimentary idea, I see so many tv spots, tag lines, etc. that either clients or agencies assume who the audience is, what they want, and how they want it all because that’s how they’ve always done it! Well, let the specialty food industry be an example of how far off target an assumption can be—and how many marketing dollars will be completely wasted.

The other day, Mr. Bossy Boss told me a tale about this Facebook friend calling him and reiterating an interesting conversation he had with “Mr. Boss Man” on Facebook chat. Evidently, “Mr. Boss” had told this friend that he needed money for his cousin but he had been mugged while in the UK. FBfriend replies, “Are you a Nigerian Prince?” The profile hijacker immediately shuts down the chat and unfriends the witty little guy.

Needless to say, Bossy changes his password, and his status to tell everyone about the potential scammer on the loose. Later that night, his wife goes to check his Fbook, and lo and behold … he is not there.

No friends. No profile. No Farmville Animals. Mr. Bossy Boss was Facebook murdered.

Shocking tales like these are occurring more and more within the Facebook realm. Due to its international popularity, Fbook has become the #1 target for spreading viruses, hijacking information and all-around chaotic malarkey! It is an alarming powerhouse in our world today—it has the ability to connect you to anything, but also disconnect you from the world, your fans, and even worse, your consumers—all in the blink of an eye.

Premium brands that don’t engage with newer types of interactive media are like Mr. Bossy Boss and his imposter—someone out there is representing their brand, whether they like or not, and they are taking control. However, if you play the game right, those imposters won’t matter, because, like real-life friends, once you build your relationships, brand advocates will know that you’re not a “Nigerian Prince.” They’ll recognize your brand’s true voice and learn to trust it.

The bottom line to consider is this: Life is scary. And social media is just life happening online. So, learn how to interact effectively with the real world, and you’ll see that being a “victim” online isn’t as easy as it first sounded. Your brand will be able to handle it. Your brand will be better for it.

This year is sure to bring lots of fun and innovative things in the marketing and advertising world. As in 2009, the technology and gadgets out there will surely drive the marketing dollars and efforts toward new and unique ways of reaching the masses with our branding messages. In blogs past, we’ve reviewed how Apple is working on a patent for a device/software that forces consumers to interact with ads, but what other unique gadgets and gizmos are on the horizon?

1. L5 Remote – This little device allows the iPhone or iPod Touch to serve as a remote to your television or other electronics.  But what is cool is that by pointing the iPhone or iPod Touch at any remote-controlled device and pushing the right programming code, the iPhone will program itself to correspond with the device. Cool, huh? Now whether this fits into Apple’s master plan of servicing ads to consumers, that’s unknown, but I have an inkling that the two might be connected. For a more detailed look, check out the video below. And please forgive the rambling, but the tech is so new, this is the only one I could find!
   http://bubble-cast.com

   
   
2. eReaders – While everyone and their dog is making an iPod-esque gadget to mimic the Kindle reader, such as Barnes & Noble Nook, Plastic Logic Que, Spring Design Alex, and LG’s solar eReader, I my myself am excited about The Skiff Reader geared toward digital newspaper and magazine. This thing is decidedly larger than the others and is supposed to be under 1 lb, 11.5-inch size, a high 1200 x 1600 pixel screen resolution, and under 1/4-inch thick. But best of all … it’s flexible. That being said, the market for advertising space could be revolutionized, since we all know that mags and newspapers are struggling in print. A surge of easily downloadable info via these babies could serve as a new platform for brands and consumers to interact.
   
3. Boxee Box – This little device is really going to be amazing, if it does what it says it does. So, a little black box smaller than a coke can will serve as a tool to bring all your media together in one place on your television screen. There are multiple inputs that allow you to download pictures, hook up your computer(s), etc. to give you the ultimate media experience. It will even show your Twitter and Facebook feeds with links from your friends. Sounds a lot like just surfing the internet, no? NO. As you can see in the demo below, this gadget does more than just make a pretty face for your media storage. Say you want to watch an episode of your favorite TV show online. All you do is search for the show by name and it provides the feed from anywhere online. So much easier than checking twelve different network websites for all your online viewing pleasure.
   
   http://bubble-cast.com

   
4. Tablets – While ambiguous at best and product development touted by behemouths such as Apple and Google, these things are the talk of the town. Sure to be a new ad platform for marketing-heavy corporation Google, the details on what exactly a tablet will be is elusive. However, Apple claims to have a $1000 price tag, so I’m pretty sure they will be more than the rumored iPhone on crack. Some say they may include free global Wi-Fi, others say there are even cooler traits to this gizmo, especially due to the high price point and secrecy behind both global networks’ production. Say tuned for more …

So, with all these new innovations in using existing technology in new and interesting ways, it isn’t hard to assume that 2010 will be packed with marketers’ and brands’ scrambling to find the new way to reach consumers. And undoubtedly, if you’re the first on the bandwagon, it could be a relatively cost-friendly endeavor. Here’s looking forward to what’s in store for this decade!

I thought I was alone in my hum-drum outlook on this season of spending, but it turns out I’m not. According to a new Ad Age article I’m actually pretty intuitive. The economy is wreaking havoc on Christmas. The recession has caused people to be more judicious on discretionary spending, but they are willing to spend—especially on the cool new “it items.”

The problem is this year there aren’t any “it items.” The recession has kicked everyone into survival mode—not only consumers, but manufacturers and retailers. Manufactures are inclined to refrain from producing new “innovative” items, and retailers won’t by them. Everyone is sticking with the “safe” products that sold great last season.

This Christmas innovation is DOA and us consumers are left uninspired to spend. Right or wrong, no one is taking risks. The Catch 22 here is the economy won’t get stronger without it.

Zmuda, Natalie. “Where Are the Must-Have Items This Holiday?” AdAge.com, December 10, 2009.

The video below illustrates just one key component of why it is so hard to do business these days. Basically, the lighter the color of the U.S. of A., the better off we are, the darker, the worse.

http://bubble-cast.com

Although the “end” date of this downward spiral is a moving target, and one of great debate, if history is any teacher this is a cycle that will turn around. When it does, a generation of Americans who have been forced out of the market for all sorts of creature comforts, or forced to trade down from their preferred brand due to budget constraints, will be ready to spend again.

What should you be doing to build/preserve your premium brand?

• Fish where the fish are today. – Sell where people can buy. Don’t sell where people can’t buy.
• Don’t ignore your legacy customers. – When things turn around, they will be the first to spend again. Do NOT make them feel like you only care about them for their money. Doesn’t work for most relationships, and this is no different.
• Don’t stop promoting. – You have competitors that have cut marketing budgets to preserve margins. This is especially true in public companies that are under intense pressure to hit earnings targets. Take advantage of that to build the perception of your brand as premium in the absence of competition for share of voice.
• Don’t sacrifice your brand quality. – Just because the competition is going down to the 10 oz. box, doesn’t mean you have to. Unless, of course, you REALLY have to. Continue to provide as high a quality product as you can for as long as possible. And when things pick up, you’ll have a reputation of premium quality even through the tough times to fall back on.

Take these principles, apply them, and see what a difference it makes to customer loyalty, brand perception and overall brand equity. Though right now, those valuable assets may seem useless to turn a profit, your brand will be the outlier in the category. These moments of heat are the ones that define your brand’s legacy. Be the bold brand. Be the rebel. Be the premium brand that thrives in tough times, instead of struggling to merely survive.

Last Saturday, Pepsi sponsored a concert in Uganda featuring controversial murder performer Beenie Man. An account of just some of the contention was detailed by Daily Monitor reporter Rafsanjan Abbey Tatya:

“The King of Dancehall stuck a sword of words into gay people through singing and talking.

‘In my family, we don’t have any gay person but if you’re gay, my brother that’s not my fault,’ he said as he performed his song Mi Nah Wallah, in which he says he would like to cut the throats of all gay men.

George Bush and Bin Laden were also at the receiving end of the Jamaican’s wrath calling on the audience to say ‘murderer’ as he sang about the pair’s warfare.”

Pepsi has responded with this statement:

“We are appalled by the performer’s lyrics and find them repugnant. Our bottling partner in Uganda was not aware of the performer’s views and never would have sponsored the concert with this knowledge.  Moving forward, we will work closely with our bottling partners to be more vigilant about the events associated with our brands.”

Pepsi’s statements seem to be rather void, considering Uganda is currently debating a bill in parliament, the Anti-Homosexuality Bill, which would institute the death penalty for many members of Uganda’s LGBT population, and that Beenie Man has had runs-ins for years regarding his public beliefs. So, consumers are left with only two conclusions: either Pepsi is run by women-hating, murder-supporting lunatics, or by people too busy and uninformed to make sound choices about their brand. Neither option is really appealing to any consumer … or spectator.

Truth is, Pepsi is a world-wide brand, so these blunders may cause them a slight dip in sales, but probably not kill them. Lucky for them. But what about your brand?

Let this be a lesson to us all about what it means to be engaged and aware not only of what’s going on within our organization, but also within the best interests of our consumer base as a whole. While it seems that the Ugandan Pepsi representatives were well aware of what the Ugandan people wanted to hear, they were willing to risk the loyalty of hundreds of thousands, if not millions, of other consumers to reach this group. So, while a tactic like an iPhone App or sponsored event sounds like an effective tool, don’t forget they all impact the overall goal—which in Pepsi’s case, it seems, may be to destroy themselves.

Last night, while watching my recording of Wednesday’s So You Think You Can Dance (yes, I’m one of those people), the show’s host introduced me to a group called “The Legion of Extraordinary Dancers.” While this seems like a fun name, I was hardly going to believe what a TV show produced by American Idol aficionado Nigel Lythgoe told me. Like any consumer, I had to consider the source.

But as the music began and I saw the opening moments of the performance, there was an immediate sense of pride in making the right decision to stick with the program. The time and effort put into each execution. The attention to detail! They were fantastic. Beyond excellent. They were extraordinary. And I proceeded to go online and watch the YouTube version of the performance below 5 more times that night. And then a few more today.

http://bubble-cast.com

There were other performers on the show who were great. It’s a dance competition, for heaven’s sake! But these performers stood out because they have created this product, this “brand,” with creativity, something distinguishable, something unique, and, hopefully not to be too trite, something premium. And not every brand can play at this level, but when articulated and executed well, the consumer is hooked. And living up to your claims defines consumer retention.

So, brand managers, before settling with any creative or strategic execution, ask yourself a few things—what is it about your brand that is truly extraordinary? What is it that your product does within its category that is beyond normal? And how can you tell that story in a like fashion? Articulate and demonstrate these assets, and your customers will develop a sense of pride and belief in your brand, as well. And though it may seem basic, it works. Trust us. We at WD create such extraordinary every day.

As I culled through my morning emails, I noticed that of the many emails in my Inbox, 45 were from retailers! And what surprises me the most is there were repeat offenders—3 from Gap, 2 from Overstock.com, 2 from Godiva, etc. How in the world does Gap have enough relevant material to contact me three times in one 24-hour period? And why would I care three different times? Needless to say, I didn’t even open them. And others feel the same way apparently. According to a new poll from the Chief Marketing Officer Council, 64% of consumers say promotional offers dominate both the email and traditional mail they receive, and only 41% view these as must-read communications.

Knowing your customers, especially those who have enough positive disposition towards your brand to give you permission to contact them directly, is essential in building a premium brand. If you can’t be relevant, then why bother? The numbers don’t lie.

Liz Miller, Vice President, Programs and Operations, CMO Council, said “Irrelevant, impersonal communications… (do) not engage a receptive recipient… customers will disconnect and stop doing business with brands who continue to send messages that demonstrate a lack of intimacy, customer insight and individual understanding.”

In the end, there has to be some sort of strategic plan and knowledge of the individual consumer in place. If the powerhouse of social marketing hasn’t proven this already, each consumer wants to have a unique voice, and needs to be marketed to independently.

So, the question a premium brand manager should ask themselves is this: do you manage your information to keep things personal for your consumers? Or, are you just creating opportunities for them to opt-out of engaging with your brand?