Category Archives: Positioning

The brand iPod is dead – the brand Apple lives on

Apple announced the end of iPod. It is not only the end of a well positioned brand, but also the end of the portable music player category.

 

In 2001 Apple launched the iPod. One look at the above advertisement made clear what the iPod brand was all about: a digital music player holding 1000 songs in your pocket. The advertisement combined a clear product image, brand name, and category benefit.

 

Strong brand

Consumers went en masse to the shops to buy iPods. Repeat: consumers went out to buy the iPod, not the Apple. For many it was in fact the first real encounter with the company Apple.

The advertisements were very consistent and therefore recognizable for consumers:

The portable music category got an enormous boost and iPod became very quickly the leading brand inside the category. In fact the brand iPod became synonymous with music player.

 

Changes inside the category

Inside the overall music category, the medium to enjoy music changed in the last decades. It went from CDs bought in record stores and played on CD players to digital music players (iPod) and digital music stores (iTunes). For years the iPod and iTunes brands made room for the smartphone and apps such as Spotify. Every change impacted the brands representing the category.

The shift from music players to phones impacted Apple, iPod and other electronic brands operating inside the ‘Portable Music Player’ category.

Companies only manufacturing & selling portable music players do not exist anymore in the same way Apple would not exist anymore if the company would only be active in portable music.

The change in medium and ultimately killing iPod does not harm Apple. Apple uses a Multi-Category Strategy with strong brands like iPhone in phones, Mac in computers. Unfortunately over the last years, Apple started using descriptively named line extensions. For example, the company bought the Beats streaming music service, merged it with iTunes, and renamed it to Apple Music. The company launched Apple TV and Apple Watch. Often the line extensions are inspired by the company leadership.

Line Extensions

The Multi-Category Strategy using descriptive line extensions make a lot of sense with the leadership team and shareholders. The thinking could go like this: ‘when we rename all our products Apple, then they contribute directly to the Apple brand, a key indicator for shareholders and investors.

The thinking goes wrong with the consumer. Unique names are so much easier to talk about and recommend.

‘I stream music using Beats on my iWatch’ is much better in terms of positioning and owning a unique category than ‘I stream music from Apple Music on my Apple Watch’. Consumers are likely to even remove the Apple brand in the conversation – the exact opposite Apple these days wants to achieve.

The success of the iPod and iPhone were instrumental to the success of the Apple brand. But too often, successful companies fall in love with the company name, forgetting that people buy brands and not companies.

 



This article is based on content in the book Win With What – the first category-led growth book for anyone who wants their business to thrive and survive.

Get your preview at WinWithWhat.com

 

Segway – a brand that failed to take a position

Segway is a brand that failed to take a position and communicate clearly the What of the brand.

According to Wikipedia, Segway is ‘a two-wheeled, self-balancing personal transporter’ .  The problem is apparent: it is not possible to relate Segway to anything we know. Until a brand can be related to something people know, the brand keeps drifting in the brain – trying to find a category to ground itself.

Below is the hompage from March 2002. Segway is welcoming visitors to ” the evolution in mobility” without explaining What the  product is.

 

When diving into the “Segway HT” section the focus is on communication what the product does “Human Transporter” and the benefits “that functions like an extension of you”.  Also on this page it is still unclear what the Segway exactly is. Human Transporter comes close, but nobody would say “hey, can you get my human transporter?”

 

After almost 20 years of trying to convince people to buy a Segway, the company decided in June 2020 to stop making the product. FastCompany wrote, ‘Exclusive: Segway, the most hyped invention since the Macintosh, ends production’.

The expectations at launch were enormous :

‘Its inventor, Dean Kamen, famously predicted in a 2001 Time magazine interview that the Segway ‘will be to the car what the car was to the horse and buggy.’ In the same story, venture capitalist John Doerr predicted the company would be the fastest ever to reach $1 billion in sales.’

Unfortunately the company failed to create a clear need by explaining the What of Segway. Those who bought Segway would likely not refer to it as the ‘human transporter’, ‘personal transporter’, or the ‘two-wheeled self-balancing personal transporter’.

What Segway could have done is to stay closer to what people already knew and were familiar with at the time of launch. Explore a variation of the scooter category, promote the What and create a need by showing how people benefit from the new category and with that, the Segway.



This article is  from the book Win With What – the first category-led growth book for anyone who wants their business to thrive and survive.

Get your preview at WinWithWhat.com

 

 

Icelandverse

Iceland’s parody on Metaverse – a new tourism video sparking thought about virtual versus real life.

Zuckerberg told the world “the metaverse’s defining quality is the feeling of presence … like you’re there with other people.”

The Iceland Tourism board made a brilliant move by positioning the country Iceland as a complete opposite of a virtual reality world envisioned by Zuckerberg.  Icelandverse is ”a place of “enhanced actual reality without silly looking headsets.”

 

 

It is good that brands (countries are brands too!) position themselves by presenting an alternative or an opposite. We humans still need alternatives. If you are not all-in Metaverse, then there is an alternative, the Icelandverse. If you do not like Coca-Cola, there is Pepsi. Alternatives and opposites help people to make a choice.

 

Facebook going Meta(verse)

Facebook is making a smart move – rebranding the corporate brand to Meta, linking itself directly to Metaverse  while allowing each of the product brands to flourish.

 

Facebook follows the strategy of Alphabet Inc. Back in 2015, Google implemented the critical principle of brand building: expand your business, not your brand. Google Inc changed its corporate brand from Google to Alphabet – to undo the Google link: “the whole point is that Alphabet companies should have independence and develop their own brands.

Facebook Company was struggling in a similar way, because of the direct link with Facebook the product. The company even made the mistake to bring the company brand Facebook into the UI of Instagram and WhatsApp. Visually showing the Facebook brand impacted clarity of all brands involved- imagine the screens with ‘From Microsoft’ or ‘From Google’.

 

Not only did the clarity of Instagram and WhatsApp start to dilute, but also that of Facebook and Facebook Company. If a brand tries to be everything to everybody, it will ultimately become nothing to no one.

So on the 28th of October 2021, Facebook “did an Alphabet” – and changed the company name from Facebook Company to Meta. A brilliant move and name. By disconnecting the Company from Facebook it gives all products room to expand.  The Meta products:

The name Meta is directly linked to Metaverse – the virtual reality-based successor to the Internet. Perceptually Meta and Metaverse might become the same.

“Metaverse was originally coined in Neal Stephenson’s 1992 science fiction novel Snow Crash, where humans, as avatars, interact with each other and software agents, in a three-dimensional virtual space that uses the metaphor of the real world. Stephenson used the term to describe a virtual reality-based successor to the Internet.” (wikipedia)

 

Under the new corporate brand Meta the company can align all product brands and efforts under the strong mission “help to bring the metaverse to life“. The mission can now be executed with focus and without diluting the Facebook product brand or the other product brands.

 

Volvo Corporation attacks electric with the Polestar brand

The car category is already for some time in turmoil because of the change to electric. On top of that, in the conventional car category the Volvo brand is struggling because of changes in positioning. The owner of Volvo Corporation, Geely Holding has determined that Polestar will be the brand to compete in electric. Is it the right move?

The change to electric genuine for car owners and drivers as they need to change the way they think about driving and “refueling” cars. Consumers experience, therefore, electric cars as a different category. There are conventional cars, and then there are electric cars – both require a different way to interact with driving and moving you from A to B.

When something so impactful happens in any category, we will likely experience a change of brands. There will be brands that only focus on the “new” electric category. There will be existing brands trying to extend from conventional to the electric category. When a category changes so profound, some of the car brands of today will need to make space for the electric car brands of tomorrow.

The impact to the current brand owners has everything to do with whether the existing car brands can compete with electric cars – at least on a level to be on par with the perceived leader in the category. In other words, if you are in the market for an electric luxury SUV, then it is easy to go for the Tesla Model X because the perception is that it is the best in electric and in-car technology. The Mercedes-Benz EQC would come close, but it needs to deliver more to change the perception of Mercedes-Benz and that of the perceived leader Tesla.

Volvo is executing two different strategies to conquer the electric car category. First, the company is moving the brand Volvo from a conventional to an electric car brand. At the same time, Volvo Corporation is following a conquer strategy with their new brand Polestar. Polestar is a standalone brand to focuses on electric cars.

The Polestar brand is not new to Volvo. It used the brand in the past for Performance upgrades of their vehicles. The real Volvo enthusiasts will know the brand with the desired perception of performance, technical advancements, etc. Unless you are a Volvo enthusiast, the Polestar brand will be new. As a bonus, the Polestar name has a nice Nordic / Scandinavian ring to it. Volvo bought Polestar in 2015. In 2017 Volvo Cars and their owner Geely Holding announced that Polestar would become a standalone to focus on electric cars.

Applying the earlier discussed Flip-test would indicate that Geely Holding made the right call to bet on two horses.

When we apply the Flip-test:

Current: Volvo gasoline cars
Extension: Volvo electric cars

Flip it!

Current: Tesla electric cars
Extension: Tesla gasoline cars

Does it make sense? Perhaps not so much. Geely Holding does the right thing to compete in electric with the new brand Polestar while not giving up on Volvo. It would be a shame if the Volvo brand will not make the transition to electric in the minds of buyers. The success of making the transition will depend on the number of cars at different price points from new electric car brands.

Personally I am very happy to see Volvo to take action. The brand has been in turmoil for years. I have written about Volvo in the  Volvo Positioning series Part 1Part 2Part 3  and a Reflection why successful companies change their positioning.

Reddit Nailed It

Jep… Reddit nailed it with the first-ever JPG(!) SuperBowl Commercial

The actual message – that one slider – was nicely wrapped in a short reel controlling placement and impact. The total commercial was 5 seconds only. 

Reddit did a great job, and with only 5 seconds of airtime, the commercial generated a maximum impact. Those interested in learning what the message actually said had to go online to find out, and once online, the step to visit the Reddit platform to learn what it is all about is easy.  

In essence, Reddit tells us that “powerful things happen when people rally around something they really care about”. The old Nokia slogan “Connecting People” is still alive and well. This time, according to Reddit, the platform to connect is their online platform.  

The 5 second commercial:

The key message (JPG):

Will COVID19 force brands to get back to their core?

Looking back to the world prior COVID19 feels like a long time, most markets were growing and the economy was doing just fine. Companies focused on growth, and usually, that meant expanding the line with new products, trying to target different segments or purchasing companies.

Now when thew world has literally come to a standstill things have changed. And they have changed a lot.

The one thing that happens during every crisis is that both companies and people get back to focus on what is really important. For companies, this means going back to what made them memorable in the first place. All the activities beyond the core start to become the subject for discussion.

At my company, Monday Brand we have gone through a self-evaluation process as well. When we started back in 2012 the focus was on Brand Positioning and optimizing Brand Architectures. To facilitate brand ownership of positioning and architecture within client companies we started offering very successful In-Company Activation programs. Because after all, it is the people that need to make it happen!

And then it happened… our clients asked for more, which is a very natural thing when you like what someone does for you. And so we added Brand Identity Strategy to our services, helping our clients to translate the positioning into an authentic brand expression. In some sense it was perhaps one step too far, bringing us closer to full-service agencies and therefore undermining what we truly stand for.

So, today we decided to go back to the core and focus only on three services: Positioning, Brand Architecture and Company Activation.

In January we started thoroughly reviewing our services, and since then we made updates to incorporate the very latest thinking and approaches allowing us to be even more effective. As we work mainly internationally, one of the guiding principles has always been that everything we do has to work fully through ZOOM.

When COVID19 happened we were prepared – we are more focused on our core and in these times of physical distancing we will continue to work through ZOOM serving our clients globally.

In case you recognize as well the need to focus on your core within your company or personally and want to discuss more, then please contact me at michiel at mondaybrand.com.

Stay safe, stay healthy!

Why some companies change a successful brand positioning

Recently I got a LinkedIn message from a reader about my Volvo Positioning articles (see Article 1, Article 2, Article 3). The question was: WHY did Volvo make the change to dump its historic positioning around safety?

While I do not have the exact answer on the Volvo case – I have seen in my brand advisory business and previous corporate life a couple of reasons WHY companies change their positioning.

 

The four top reasons I have come across for making big changes in positioning:

1: Boredom internally or with agencies
Many times people inside the organization and their supporting agencies get bored with the brand. They have worked on it for too long, the brand has become their daily reality and when constantly seeing and hearing the same things, it is only natural for people to get bored. Yet, consumers only interact and think about your brand a fraction of the time you spend with it. And that valuable time is needed to keep reminding them about something they know! Unfortunately, most brands fall sooner or later in the boredom trap.

 

2: Significant change in shareholders
New owners are often THE reason to make changes. After all, why would one need NEW leadership if all stays the same? In many ways, shareholders also expect that… when new leadership comes in big things are about to happen… and shares/ profits / … should go up. This is what likely happened to Volvo.

Ford Motor Company offered Volvo Cars for sale in December 2008, after suffering losses that year.  On 28 October 2009, Ford confirmed that, after considering several offers, the preferred buyer of Volvo Cars was Zhejiang Geely Holding Group, the parent of Chinese motor manufacturer Geely Automobile. On 23 December 2009, Ford confirmed the terms of the sale to Geely had been settled. A definitive agreement was signed on 28 March 2010, for $1.8 billion. (source)

 

3: CV builders
Another one to watch for – CV builders have an interest in well… building the CV, and that means… something substantial needs to happen to the company they work for (‘the host’).  Something really substantial is of course to change the positioning of a brand – a big CV ticket item!

 

4: New Marketing Lead
An obvious one – but when companies assign a new marketing lead, they do expect the marketing to change. There is nothing more profound and more interesting to do for a marketer than changing the positioning of a brand.

 

Now that you know some of the key reasons why companies change their positioning, let me explain HOW you can reinforce your positioning.

Keep the brand linked to a category or a ‘job to be done’.
For example, in case of Volvo the category is/was safety. The job the brand does/did was to protect the family in the best possible way.

Of course, over time many other cars have gotten safe as well, but only one brand can be the safest. So, the only job Volvo had to do, is to make sure consumers continue to link the brand Volvo with Safety. This is done through product development with a  focus on safety features, linking the brand to general traffic safety PR campaigns, and promote safety features in marketing … because even though other brands are safe too, the brand Volvo has a perceptual advantage.  And above all… why would Volvo want to waste millions of EURs in over many years build-up brand positioning?

Shift your category or ‘job to be done’ to an adjacent category if your current category is not relevant anymore
For example, analog photo camera’s are not that relevant anymore, but cameras (still) are. So, in this case, your job as a brand owner is to shift the brand from a camera that is analogue to a camera that is digital. There are plenty of examples that this works (Canon, Nikon), and the best being Fujifilm. Fujifilm was able to transition some of their amazing analog film rolls as simulations in their digital products. Fujifilm reinforced what made them big in the first place, just in a different, but adjecent category!

 

In conclusion – whenever you do change your positioning, keep in mind that you do it for the right reasons and that you need to continually build on the brand that you own in the mind of the consumer.  It is not just about “trying something new”, “renewing the essence of the brand” or “exploring the cool edges of the brand”. After all, learning and confirming the perception of a brand  is done best through repetition.

Leuchtturm – what an experience!

I would have not ever thought to buy a real notebook ever again…. but I did! While walking around in a stationary store , many colorful notebooks from Leuchtturm were looking at me.

And I could not resist… why? Because the brand works!

The Leuchttrum brand: a promise made is a promise delivered.

 

 

1. Heritage

Leuchttrum is around since 1917, that is a very long time indeed, and according to the message, they firmly believe that details matter.

 

2. Details make all the difference

Leuchttrum does live up to their belief. This ‘simple’ notebook has the following features:

  • Pagination
  • Labels
  • Page markers (2x)
  • Ink proof paper!
  • Table of content
  • Pocket to store stuff
  • Perforated sheets (8x)
  • Thread bound & acid-free paper

 

3. Focus

Leuchtturm does one thing and one thing very well:  Notebooks. Their product offer is huge.

From the Notebook category, they moved into Planners and a few storage options

This is very different than Moleskine, offering everything from notebooks to bags, to device accessories.

The ‘better’ notebook brand is perceptual of course the brand creating only notebooks! A quick look at the Instagram account will convince you immediately. The books are not only beautiful but also very functional.

The Leuchttrum brand in a nutshell: a promise made is a promise delivered. 

Will the biggest change for Diet Coke in 35 years make a difference or is it lipstick on a pig?

A very exciting start of 2018 for Coca-Cola Company in America: the successful Coke Diet brand is renewed after 35(!) years.

Coca-Cola Company calls it a relaunch of the brand. The cans are smaller, have a fresh new design, and there are four extra flavors.

The renewal and modernization of the Diet Coke brand is done to attract a new generation of drinkers and offers millions of current fans a new look and more flavors.

Rafael Acevedo, the North America group director for Diet Coke, further explains that “we’re modernizing what has made Diet Coke so special for a new generation. The same unapologetic confidence still comes through, and the same great Diet Coke taste people love is here to stay, but we’re making the brand more relatable and more authentic.”

A two-year study has shown that younger Americans have an affinity for “big, yet refreshing and great-tasting flavors” in their favorite foods and beverages – from hoppy craft beers to spicy sauces.

So far everything goes according to the plan. Coca-Cola Company sees an opportunity to increase their share in the category of diet cola: welcoming new drinkers with new flavors and getting current drinkers to try new flavors.

The problem, however, is that whole soda category in America is in decline for the last 12 years. In 2017 the sales were similar to 1985 (!). These days, consumers know better: sugar is not good for you. This insight causes the whole category to decline.

You would think the war against sugar would give the sales of diet products a push – the fewer calories, the better – but it is not happening. Why? Consumers are getting more and more skeptical about artificial sweeteners, particularly aspartame. In fact, the skepticism is so bad, that currently, the high-sugar variants of Coca-Cola and Pepsi the number 1 and 2 most sold cola products.

It did not help that Coca-Cola in 2012 began to defend the use of sweeteners in newspapers. This way you achieve exactly the opposite effect: consumers will trust you even less.

And it becomes tough when your biggest competitor starts to make a point in advertising and on the can that aspartame is excluded from their Diet line.

Consumers move to other categories of drinks and the big winners in the fight for healthy drinks are not the Diet brands, but the water brands, including Dasani, a brand of Coca-Cola Company.

I expect that the new design and the new flavors will undoubtedly benefit the Diet Coke brand in the short term. However, in the long term it is “lipstick on a pig”. The trend against unnatural has started, and not just in the soft drink category. Also in the food category the organic market in America has grown from 1B USD in 1990 to 40B USD in 2017. This is a trend that will affect many categories.

In a declining category, a brand has to take what it can take while the category is still selling, but as a company, you will have to focus on new categories. And this is what Coca-Cola Company does very well, as we see with their new brand for ice tea: Fuze Tea, but more initiatives are needed to get back in growth mode.