Guy Richards - Ordinary life with a brand strategist

The Mask

You may have noticed the General Mills commercials ripping on Kashi. If you are like me, you laugh at the commercials because you can’t believe that anything General Mills sells could be healthier than Kashi, regardless of what they say.

Let me share some disappointing news, Kashi is owned by Kellogg. Yes, the same people who make Frosted Flakes. For Kellogg to communicate through Kashi a passion for an organic lifestyle while they pump sugary flakes through their other brand is a value issue.

Kellogg would never be believable if they came out with the same wholegrain options they sell through Kashi. But because the market craved a healthy option they figured out a way to create a platform of empathy to sell the product from.

Although this strategy works it has the possibility to backfire if the client base finds out and has another option to switch too. But more likely this will create a monopoly that will hold consumers captive.

This is just me, but I wish brands didn’t do this. I know it works, but values to me mean that you would hold to them even in an unfavorable situation.

As a follower of Kashi, I’m let down.

When will brands stand for what they believe then worry who will come?

Strategizing Opportunity in a Market Shift

Every market innovates and therefore causes businesses to adapt their offerings and delivery.

It’s no surprise that On Demand TV is putting a lot of video rental stores out of business. 

Because brick-and-mortar video rental stores “costs-to-operate” usually attribute for 80%-90% of what they make (that is without the competition of On Demand TV). So, if On Demand TV takes 30% of the video stores sales, they are 10%-20% behind on their bills. This puts the video store in a race to decrease costs before the wave of floating overhead crashes.

A great example of taking advantage of a market shift is Redbox, the via self-serve DVD kiosks. The strategists behind Redbox identified that there is still a market for video rental but delivery would have to be drastically recreated. And they did it.

They figured out how to eliminate labor, cut rent and negotiate with supermarkets to insure traffic positioning while eliminating marketing costs. Now they can offer rentals at a super low price, 1$ per day and still be profitable.

 

Here are three questions to help you identify opportunity in your market:

1. What out-of-the-box idea would allow you to eliminate or greatly decrease fixed costs while increasing profitable, long-term growth?

2. What is the potential risk and reward?

3. Where will you be in 3, 5 and 10 years if you don’t change?

Mr. Startup

Don’t trade longevity for velocity.

The biggest lie I bought into, is that we as startups have to come out with guns blazing using a 100% of our resources to make a splash upfront.

Time and time again I have witnessed startups go out of business because of this strategy. They buy into the idea that they can build a reputation overnight that will drive sustainable margins. To their demise resources dry up and they are back looking for a job.

Velocity is not a bad thing if you have the capital. But unfortunately most of us don’t have unlimited resources.

The best bet for any organization is not to trade longevity for velocity. Focus on relationships, let those relationships build and make delivering trust a priority.

There are big businesses that have been built as a result of longevity. Chick-fil-a was started in a converted home and McDonald’s first built a great reputation off of one stand.

What was that saying about Rome…?

The (donation) Philanthropy Wish List

What if there was a list that ranked non-profits like the stock exchange?  I always have an interest to know how much of a difference what I give will make.

No, I’m not talking about Charity Navigator or the ECFA. I’m talking about a simple list that shows the minimal investment that can be made into an organization and the "approximate" fruit it would yield.

Example:

Minimal investment = Return  /  $12 = 1 kid fed for a month

Then this list can be categorized by industry and ranked from highest return to least.

This would create an environment that would raise industry standards and build confidence with investors (donors). 

What a great value proposition if a foundation created this list!

The Value of the Antagonist

Anything worth achieving has someone, something or a group of someone’s and something’s standing in the way. This is the problem that must be hurtled to achieve the vision you set out to complete.

Apple has PC, Salesforce has software applications, General Mills has Kashi, older organizations have change and David had Goliath.

Opposition is the great catalyst of community movements. It gives the community a reason to stick together.

I have heard people say… “tell me what your for not against.” This is good because you should never lose focus of your cause, but even this statement communicates that you are against something. Why else would you be stating you’re for something unless there was a problem?

The goal for the community is just as much the process of being against something as it is achieving the vision.

Accelerate your cause… define what’s standing in your way!

Packaging Opportunity

There are many ways that you can expand your reach while promoting loyalty to your brand that you most likely don’t see. These are the hidden opportunities that could be your saving grace in this economy.

The first step in identifying opportunity is locating need.

The second step is identifying if you can build a profitable service/product for the need you found.

The third step is determining if your current brand has the permission from its market to offer this new service/product without hurting the current brand’s reputation.

The forth step is to either create a sub-brand or launch the new service/product under your current brand.

GMC found a need in the market for a large SUV. They realized they could build it and make a profit. But when they asked the market if the SUV would make it under their current brand, the results said no. GMC then launched the new SUV under the name Hummer, and it succeeded.

All brands have hidden opportunity. Once you find it make sure you package it right.

I was asked to be on a webinar on Monday to talk with Jerry Twombly about this subject. Please join me. There is no cost. Details: 

 

Leadership Integrity (brand perception and reality)

I have witnessed a lot of erosion in brands due to a leaders words not matching his actions. It’s such a simple equation but extremely hard to deliver.

Passion + Claim of Distinction + Delivery = Trust

or...

Passion + Claim of Distinction + Under Delivery = Distrust

People who…

Trust you: are loyal, recruit their friends and are with you to complete your cause.

or they...

Distrust you: are hurt, don’t come back, and persuade their friend not to select you.

As a leader the weight of your brands perception and reality starts and ends with you. What is the end result you want?

 

 

 

Commodity or Value

The difference between a commodity and a brand of value is not more than a few degrees.

The small gap between blurred vision, disengagement, fear of change and plunging profit margins.

Take gas for example. I was coming back from a meeting in an area I wasn't familiar with. Because my gauge was plummeting past empty I pulled into the first gas station on my route home. It was raining and the attendant pumping was using an umbrella as he shuffled from car to car (yes, in New Jersey we don't pump). 

As the attendant was waiting for my car to fill, he went inside the building that was about 25 feet away to stay dry. Not knowing every minute that I was sitting there was one more minute I wasn't being productive back at the office.

I came to this conclusion. That if I was a local, I would never come to this station. I would invest in one that had a roof, because a roof means I'm more productive in my life.

Roof or no roof? The difference between a value brand and a commodity.

Change the world where God has you

This is one of the most powerful stories I have ever heard impacting the business community at this scale.

Luke 1:52 (NIV)
He has brought down rulers from their thrones but has lifted up the humble.

God wasn’t lying

Billions For Christ

Last week was great.
I got to meet so many people that are making a true and huge impact for God in this world. One of them was Ken Blanchard.

Winnie, who is the copywriter for Abiah wrote a book called Faith at Work that Ken endorsed with a testimonial. So, before I left for the CMA Conference Winnie told me to tell Ken she said hi.

Me and Lisa Price (Our new COO) where walking to an comedian show and we ran into Ken. We stopped and I told him Winnie said him and we moved on.

The next day we went to hear him speak. Let me tell you he is a fireball. While he was speaking I said to myself this is who I want to be when I’m his age. No notes, no hesitation, just pure heart with a powerful delivery.

While he was talking he said “our mission for Lead Like Jesus is to effect 6.8 billion people for Christ.” Then he went on to criticize small vision statements. This vision he just spoke perked me up. Because our vision for Abiah is “To mobilize millions of clients to effect & develop billions of people to live authentic, Spirit-led lives for Jesus Christ.”

I realized I had a copy of it in my book bag. So, I got it out and went up to him and thanked him for the encouraging speech and showed him my vision. He asked if he could have it. I told him I loved him and hugged him.

Is your vision enough to make people laugh at you? David’s was!