Can Dr. Pepper Win Over Men Who Think Diet Sodas are for Sissies?

February 24, 2011 1 Comment

Soda maker launches manly low-calorie soda that’s “not for women”

It’s uncommon to tell potential customers that your product is not for them, but that’s exactly what Dr. Pepper is doing with its new reduced calorie soda. With 10 bold tasting calories, Dr. Pepper Ten has positioned their low-calorie soda as the “manly” soda that is simply too bold for women.

 

According to Dave Fleming, Director-Marketing for Dr. Pepper, research showed that many men believe they give something up when they drink a diet product. So, the soda maker developed a proprietary sweetener technology to deliver the classic Dr. Pepper taste with just 10 bold calories. The company will be testing the low-cal soda in a handful of test markets around the country and will employ a mobile “Man Cave” to get the testosterone flowing.

This is a daring move by the good Doc considering that both Pepsi Max and Coke Zero are targeting men who want less calories, but full flavor. As AdAge points out, both these rival brands have overcome early marketing missteps; with Pepsi Max becoming PepsiCo’s 19th billion-dollar brand and Coke Zero consistently posting double-digit sales gains.

Pepsi Max has tried this whole “diet soda for men” thing before with little success. But Dr. Pepper Ten has ten things Pepsi Max doesn’t…calories. According to Mr. Fleming, its inclusion of 10 calories, rather than zero like its competitors, allows it to deliver a flavor closer to the sugary original.

Miller didn’t try selling “diet beer” when they launched Miller Lite. Instead they added a little spin and communicated that Miller Lite was for guys who love beer so much, they want to drink even more. It had the same great taste as regular beer – just less filling.

I think Dr. Pepper can find success if they add similar spin. That’s the reason I drink low-calorie soda, so that I can spend those extra calories on a hot fudge sundae or piece of pie.

Filed under Competition, Marketing, Positioning Tagged with , , , , , ,

Opposites Attract: How to Get Your Brand Noticed in a Crowded Market Space

February 15, 2011 Leave a comment

It’s has long been said that opposites attract. She’s a Democrat, he’s a Republican. She’s an artist, he’s an accountant. She’s extroverted, he’s introverted. They seem to be opposite in nearly every way…but  they are oddly, perfect for each other.

Why are people attracted to individuals who are opposite? Because these opposite individuals have something they need and currently don’t have.

This is one of the primary reasons that people are attracted to a specific brand. What is the secret to some of today’s most successful brands? It’s simply of matter of being the opposite.

Five Guys Burgers and Fries

Five Guys is the fastest-growing chain in the nation, with both year-over-year sales growth and number of locations surpassing the 50% mark last year. Founder Jerry Murrell shares what makes this chain different than other fast food burger chains.

  • No drive thru’s: They don’t do drive thru’s because it would take too long. Why? There burgers are made to order and you can choose from 17 toppings.
  • Food prices fluctuate: They don’t base there price on anything but margins. They raise prices to reflect whatever their food costs are.
  • No breakfast: Your not going to get any breakfast or coffee from Five Guys. Perhaps you can go for an early morning hot dog? Other than hot dogs, all you are going to get from Five Guys is burgers and fries.
  • Value relationships more than the bottom line: Murrell says “ we’ve had many of the same vendors since 1986. And they’re not the cheapest by a long shot. We stick with what we like.”

MUJI

I’m not sure you can be more of an opposite brand than Japanese retailer MUJI whose name translates as “no label, quality goods”.

With every brand pushing their logo, MUJI took an opposite approach with its no-logo policy and became the ‘No-Brand’ brand. They now have stores across Asia, Europe, and made the move to the U.S. in 2008.

Pepsi

Pepsi was one of the first to adopt this opposite approach. With Coca-Cola being the long-time market leader, in 1963 Pepsi smartly became the opposite. They painted Coca-Cola as the cola your parents drank, with Pepsi being the cola for the young and the ‘young at heart’ – the Pepsi Generation.

This campaign made Pepsi a formidable competitor for Coca-Cola, taking their U.S. market share from the low teens in the early 1960’s to 32% in 1990.

How can you be opposite? As Mae Tse-Tung so aptly put it:

“The best defense is to be consistent and stand for something, whereas the best offense is to find contradictions and exploit them”.

Filed under Branding, Competition, Marketing, Positioning Tagged with , , , , , ,

Brand Focus: Why is McDonald’s All Things to All People?

July 8, 2010 2 Comments

Last Friday, as I sat down with my coffee and my latest edition of Ad Age, I was quickly drawn to an article titled “The (Burger) World Is Not Enough For McDonald’s”. The article takes a look at McD’s push to become a beverage destination in order to get a bigger slice of the $153 billion U.S. beverage market. In 2006, they launched their premium coffee, followed by espresso, frappe’s, iced tea, hot chocolate, and smoothies (launches this month) in the following years.

This has really had me thinking over the last week, how can McDonald’s sell everything (breakfast, burgers, chicken, salads, coffee, smoothies, etc.) and still remain a strong brand? How is it that such a strategy has kept McD’s at the top, but been the downfall of so many others (i.e. Boston Market). That is, how can McDonald’s be all things to all people?

On the surface, McDonald’s looks like the very anti-thesis of focus.

» They offer healthy options such as salads, but they also have French fries if you care to indulge.

» They have cheap hamburgers, but they also sell their premium Angus burgers.

» They target children with happy meals and playgrounds, but they also target adults with free WiFi and frozen espresso beverages.

Based on that evidence, McDonald’s sure doesn’t look like a very focused brand. But (as I wrote about here) the best brands in the world focus on one big thing. For McDonald’s that one big thing is being the world’s favorite place to eat.

Like other “focused” brands such as Apple or Nike, you can’t really pinpoint the focus of the McDonald’s brand. That’s because the great brands are increasingly becoming a bundle of meanings, not a single idea.

To the naked eye this bundle of benefits looks like a strategy to be all things to all people, but looking through a different lens you can see that it is actually focus at its best.

Filed under Branding, Focus, Marketing, Positioning Tagged with , ,

Focus on One Big Thing

June 7, 2010 Leave a comment

“The fox knows many things, but the hedgehog knows one big thing.”

In his book, Good to Great, Jim Collins tells a story about the fox and the hedgehog. Day in and day out, the fox is always scheming up new ways to attack the hedgehog; however, the fox is always met with the hedgehog’s simple defense of rolling up into a ball of sharp spikes. And no matter how hard he tries, the fox can never overcome this.

Out of this story, Jim Collins developed what he calls The Hedgehog Concept. As Jim explains, “A Hedgehog Concept is not a goal to be the best, a strategy to be the best, an intention to be the best, a plan to be the best. It is an understanding of what you can be the best at.”

But it’s rare that a brand has this level of understanding and pinpoint focus.  It’s even more rare that a brand has the discipline to stay committed to this focus.

Original Focus Lost Focus
Market: Businesses 1997: Began taking aim at consumers
Product: Personal Computer 2003: Jumped into the consumer electronics
Distribution System: Direct 2007: Began selling in retail stores

Original Focus Lost Focus
Retail, specifically durable goods 1981: Purchased Dean Witter (financial services) and Coldwell Banker (real estate)
1984: Started Prodigy (internet services)
1985: Introduced Discover (credit card)

Original Focus Lost Focus
Rotisserie Chicken 1995: Expanded its menu to include turkey, meatloaf, ham, and sandwiches

What is the result of remaining focused on what you can be best at? Greatness. Just look at Crayola.

Founded in 1864, Binney & Smith (Crayola’s parent company)was originally produced items such as carbon black for automobile tires and red pigments for barn paints. Though they made various chemical compound products, their focus was always on the customer. Their primary method of product development was to ask customers about their needs and then develop products to meet those needs.

In 1900 the company began making slate pencils for the educational market. And by listening and responding to teachers’ requests for better materials, the fledgling company eased its way into the children’s art field. When teachers complained about poor quality chalk, the company produced a superior, dustless variety. When teachers complained that they couldn’t buy a decent crayon, the company developed the Crayola crayon.

Since finding its niche in the children’s art market over 100 years ago, the company has been incredibly focused. Even in the face of the digital revolution, Crayola has remained focused on doing one this better than everyone else, manufacturing superior art supplies for children. And because of this focus, Crayola continues to thrive.

Filed under Branding, Focus, Positioning, Strategy Tagged with , ,

Domino’s Claims Victory, I Say BS

May 14, 2010 Leave a comment

Domino’s all but stunned the marketing world with their “Pizza Turnaround” campaign earlier this year. In unheard of fashion, the pizza chain admitted broadcasted that their product was awful. This was a noble attempt by the brand to be honest and show that they really were listening to consumers.

With 1st quarter sales figures now coming in, Domino’s “new product” and ad blitz led to a 14.3% increase in same-store sales. Clearly Domino’s campaign convinced scores of customers to give their pizza a second try, but will these customers stick around?

We’ll have to answer this question a few years down the road, but I’m skeptical. Nobody should be surprised that sales shot up, Domino’s dumped over $50 million into this ad blitz. Heavy marketing (almost) always drives short term results.

Unfortunately for Domino’s, I think this short term tactic is going to have serious consequences on the brand’s long term strategy. Domino’s will always be the “cheap pizza”, they will never be the “great-tasting pizza”. This begs the question, what the heck are they doing competing on taste. They will never to be able to compete with the Rizzzo’s of the world.

You can’t be all things to all people.

You can’t be cheap, high quality, fresh, fast, and innovative. You can’t be New York-style, Chicago-style, deep dish-style, and Sicilian-style.

Don’t believe me? Just ask other brands who have tried to be all things to all people.

  • GM: filed bankruptcy July 2009.
  • Boston Market: Changed name (and focus) away from chicken in 1995; bankrupt in 1998.
  • Sony: .77% Profit margin last 10 years.

Filed under Brand Perception, Positioning, Strategy Tagged with , , , ,

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