The Brand Man Speaks

Michael Jackson: a small personal memory

As the world prepares to mourn and celebrate the death of musical talent extraordinaire, Michael Jackson, millions of people have started to share how he impacted their lives and the lives of a generation. Me included. Not since Elvis does the world have an entertainment legacy brand that will be much greater after death than during life...as long as it is managed well, (let's hope, since so many people have had their hands in his life I imagine more will want a piece of him in death).

I grew up with the gloved-one's music finding it irresistible and mesmerizing...finding it impossible not to learn nearly all the words while marveling at his dance skills...(which I sadly tried to but unsuccessfully mimic). I along with millions got to know Michael from a far until I had a short very personal experience a few years back.

Before Lionel Richie became a client, I had the opportunity to meet him for the first time with some friends over brunch at the celeb packed restaurant The Ivy. Lionel arrived very late to our small gathering on the cell phone intently listening to "someone" at great length. Even after Lionel sat down with us...some 15 minutes later...we still hadn't been formally introduced because he was still on the phone.

Noticing our growing discomfort with what appeared to be the "rudeness" of staying on the phone as food arrived, Lionel put the phone on mute and handled it towards me...but saying first..."it's Michael he wants my advice and I have to listen". Michael? I inquired. Michael Jackson he responded. And with that Lionel handed me the phone for a very brief time. I listened as the King of Pop sadly and soulfully expressed his love for people and how he was misunderstood. This was the time of his first court case for child molestation and those close to Michael like Lionel were making themselves available to be there for him in his time of need....as many wouldn't listen to him as the world began to shift their opinion of the K.O.P. from honor and worship to disdain and disgust.

Lionel, who had co-written and produced "We are the World" the hugely successful charity song with Michael,  was very worried about him self-destructing at that time, understandably. There were so many people in his life trying to tell him what to do, we all talked about how difficult it might be for him to get out of this situation unscathed. He settled out of court with his accuser but public opinion was not favorable.

After that time Michael seemed to become a Howard Hughes type and the world became further confused by his behaviors and his popularity waned. Additional litigation and money woes didn't help his image either.

But alas on the eve of his highly touted come-back tour he leaves us for good. Now, despite his many behavioral and money issues, which will never go completely away, the world has shifted its opinion and now is taking the time to celebrate the genius that he was and the impact his work has had on the world for the past 50 years.

Thank you to Lionel Richie for giving me a memory like no other.

Watching out for you everyday.

Eli

Lexus dumps brand's signature voice over talent; picked up by Mitsubishi

In a surprise branding move, Lexus has dumped its voice over pitchman of 20 years in favor of younger talent. Although changing voice overs is usually not a big deal in television advertising, the actor who launched the Lexus brand and its "relentless pursuit of perfection" slogan had become a key element of the brand and its identity.

James Sloyan's soothing, elegant, but firm voice became as recognizable as the Lexus car itself. You didn't have to see the ad to know it was for Lexus.

Then imagine my surprise the other day when I heard that same famous voice saying the words, "Lancer by Mitsubishi". I was incredulous. How could that be? I wondered if Sloyan wanted too much money during contract renewals or someone at Lexus had lost their mind? I even wondered if the voice for the Mitsubishi ad was a close copy and not the real thing, but after repeated hearings it was clearly Sloyan's.

Building instantly recognizable brands that transcend the actual media in which they are promoted is not an easy task to achieve and Lexus had made that happen.

So what gives here?

Here's what I learned today from an online automotive industry forum.

February 10, 2009 - A fresh voice narrates the latest commercials for Lexus. Continuing on that path of "The Pursuit of Perfection", Lexus has made that change, most recently with the latest blitz of new commercials for the 2010 RX. There is a new voice in town and like the previous voice over actor, his name happens to be James too.

Who is this new James you may ask? His name is James Remar. Some of you may know him as one of Samantha Jones (Kim Cattrall) boyfriends on the popular HBO show, Sex and the City. He was also casted in movies such as 48 Hours, The Phantom and also 2 Fast 2 Furious. Remar has narrated the latest commercial ads for the new RX spots. He will also be the voice for future Lexus ads.

For 20 years since the inception of Lexus, we have seen, heard and lived the many "Relentless" and "Passionate" evolutions featuring that distinct voice. That distinct voice belongs to actor James Sloyan. Although we will miss the original Lexus voice, we will never forget those original Lexus benchmark commercials and the regal narration that Sloyan established for the industry. Think LS400 commercials and the infamous champagne glass smoothness test. Thank you Mr. Sloyan for all the years of Lexus pursuits.

"Thank you Mr. Sloyan for all the years of Lexus pursuits"?......wait a minute. This might have been a major mistake for the Lexus brand and a smart move for Mitsubishi. Now, the Mitsu brand gets instant attention for the confusion and increases  awareness of its new sportier Lancer model. Yet, Lexus loses a valuable asset especially since this automaker isn't about radical changes it is about evolutionary improvements to a great automobile...staying the course...consistently delivering...so why would one risk undermining the brand strategy by dumping a brand component as golden as the product itself?

I plan to investigate further, but believe this was not a smart branding move.

Watching out for you everyday.

Eli

WalMart trying (again) to go upscale with offerings to keep more affluent consumers

WalMart has been one of the few bright spots in the retail industry over the past two years since the recession began. Its strong value proposition has reinforced its relationship with lower income Americans and has brought in more middle class consumers and some upper middle class folks as well. Everyone seems to be looking for a bargain or at least the lowest price on the items they need for everyday living.

Empirical evidence does show that more middle income consumers are willing to go to WalMart instead of Target and the other higher image stores they frequented in the past. The question remains can WalMart again try to win over these more affluent consumers for the long term and if they can, do they risk once again alienating their core customer?

Not more than a few years ago, WalMart in more robust times, was upgrading their stores, bringing in higher margin goods and "better" brand names. The plan failed simply because the more affluent consumer didn't become a regular consumer and the core customer felt that WalMart had forgotten them raised prices everywhere and drove these people to dollar stores.

WalMart, after a number of reporting periods with declining sales when others were doing well, figured it out...they did NOT belong in the more affluent consumer chase. They refocused their marketing and ad efforts back at savings and value and business began to boom again.

Along comes the recession and WalMart is perfectly positioned to benefit...and has...from this difficult economic environment. Yes, not unexpectedly given the extent of this near depression economy, more middle class shoppers (who now see themselves a lower middle income) have turned to WalMart. Some upper middle class shoppers (who now see themselves as more middle class) have also sought out savings at the big W. WalMart is benefiting greatly.

Now comes word that the retail giant is not satisfied and is hell-bent on figuring out a way to keep the higher income more status conscious shopper long term. They are already back bringing in higher margin goods, better brands and more "service". The stores are getting major overalls to look more like Targets (again). Will it work this time?

Yes and No.

To some extent the answer is YES because we have seen a significant buying behavioral change among middle and upper middle income consumers. They are giving up their need for status consumption (they can't afford it) and going for the basics with an occasional indulgence. They are acting more like lower income consumers than ever before. I do see a lot of these people continuing to shop for bargains and value over image and prestige long term. This recession has had a profound effect on millions of Americans. They like saving money and the stigma of shopping at WalMart is fading because saving money is more important than where something is purchased.

Will these consumers spend more at WalMart? They already are buying more than commodity items there. But, there does remain a major risk. Going too upscale with goods and brands may again backfire because consumers are in general doing without stuff they do not need regardless of store. Thus, WalMart could get stuck with inventory they shouldn't have added in the first place. I also believe some portion of the upper middle income consumer who now is willing to shop at WalMart will choose to go elsewhere when conditions improve why?

Simple. People still have a tendency to gravitate to people like themselves or those of a higher income level (if they can get into that club). I do not see that psychological element changing long term. Shopping at WalMart is still a stigma for many not just because it is WalMart but because of the fact that it still attracts the kind of lower income folks upper middle income people really rather not shop around.

In research my firm has conducted, we found upper middle income consumers still wary of unemployed young people loitering around the WalMart stores, especially in their parking lots. They find the stores unattractive (even the upgraded ones) and the service extremely poor (despite efforts to improve it). Finally, even though buying cheap is chic, upper middle income consumers still need to feel good about where they shop and indications are most will abandon WalMart when the economy turns upwards or sooner if other more image oriented retailers lure them back with better pricing and values.

Research also shows that lower income shoppers are having a harder time making ends meet at all and feel that WalMart is still charging more than they should for basics. Further, as before, when lower income shopper see (empirical evidence) more well-heeled folks in "their" store, they become suspicious that prices are going up further and feel maybe it's time to go elsewhere for better prices. Finally, research shows that prices are good at WalMart but many times not the lowest. Surprisingly, more upscale retailers and sundry/drug stores are competing with WalMart prices and in cases beating them. Consumers are more savvy than ever and will seek out the "best" prices. WalMart is trying to deal with this new competition by advertising they are constantly researching other stores prices to "ensure" the best prices in their stores....they clearly are aware their value positioning is being challenged by a whole new set of competitors.

Interest times. Interesting stuff. I will continue to monitor the WalMart strategy shift and report back as new information and findings surface. Until then....

Watching out for you everyday.

Eli

Ford takes bailout money from Energy Dept; Chance for brand to be #1

Ford Motor Company has successfully avoided the need to take the government's bailout money like both GM and Chrysler and has been able to keep its employees, dealers and operations mostly intact.

Now Ford has announced that it will take some US Taxpayer money but as an investment from the Energy Department to develop and launch fuel efficient automobiles.

I think Ford is doing the right thing and handling this economic situation far better than its (former) competitors. The Ford brand has enjoyed unprecedented positive perception among the American public because of its expert handling of this difficult economic condition in the auto industry. Fox News asked me if I thought this perceptive would be hurt now that Ford has taken bailout money.

View my interview here:
Ford Takes Government Money

I think that Ford has the opportunity to become the premier auto company in America, a position it has long desired but been unable to obtain. Ford could be the "hero" company that saves the American auto industry if it plays its cards right and brings the right product to market.

Watching out for you everyday.

Eli

Netflix brand evolving while unexpected competition grows from Redbox

I have been a fan of Netflix since its inception. The idea of ordering online, sitting back and having the movies come to your home and just mailing them back (at your leisure) when you're finished transformed how I watched movies. I hated going back and forth to Blockbuster stores incurring late fees and always wishing I had some DVD at home to watch on that unexpected rainy day or "special' evening.

Many didn't believe Netflix would survive. My mom's investment adviser said not to buy the stock despite my strong marketing intuition about the company and its future. To his surprise, but not mine, Netflix has done extremely well in this recession with its stock price doubling.

Netflix is actively competing with itself by offering more downloadable movies directly from the internet to laptop or home TV and smartly understands technology based entertainment is a rapidly moving target. I have yet to download a movie from them, although I have three free movies that are available to me to do so, because I think watching movies on my laptop is disappointing (size and impact-wise) and I have not bought the requisite equipment to send downloable movies directly to my big flat-screen TV....yet.

Despite their success, Netflix has strong competition from an unlikely source, Redbox. Redbox is a vending machine DVD rental business that was started by McDonald's during a time when McDonald's like Starbucks was looking for new revenue streams from ideas inconsistent with their core brands. McDonald's had some success with Redbox but sold the concept to Coinstar this past year after they started investing in the business in 2005.

I understand why Redbox can be successful. $1 rentals of recent releases sold like buying Coke from a vending machine in thousands of locations. However, it doesn't work for me. I hate the idea of having to take the DVD back to some place especially if I am not going that way and find dropping the DVD in the mail so easy and effortless. But I am obviously increasingly part of the minority. Redbox's old fashioned delivery system is growing fast even as movie downloads (on the other side of the technology spectrum) are also developing steam. I suspect I will go the download path far sooner than renting from a Redbox, but that's just me.

Watching out for you everyday.

Eli