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

Starbucks/McCartney deal: Change in strategy (again) or smart move?-by Eli

Starbucks announced yesterday that in a major music industry coup, their Hear Music label (in concert with Concord Music Group) signed legendary performer Paul McCartney to a deal. Plans include the release of a new album this summer.

On the surface, two great brands coming together to build a potentially very successful and powerful relationship especially given the weakness of the traditional music selling industry seems to make good business sense. This deal is very high visibility especially since McCartney is in the news for reasons beyond music these days....and has many loyal supporters hoping he resolves his divorce proceedings favorably. He has been somewhat negatively portrayed but most see him as a victim of a gold digger.

However, not more than a month ago Starbucks conceded that its marketing programs which included offering many products well beyond and outside the coffee realm had inadvertently directed the company to take its eyes off the "prize". They indicated this diversion was responsible for declining interest and sales in the core brand's products. Operational activities such as watching the barista make espresso and the aroma of freshly ground beans had been lost negatively impacting the experience. The company publicly expressed its commitment to coffee and getting back on track with the core reason for being. Reaffirming their "brand essence".

This was an important admission for a brand that had reached icon status and rarely faltered. As competition has increased dramatically it seemed like a smart move to acknowledge a need to adjust marketing strategies.

Then comes the McCartney music deal and one wonders if the timing of this "shift" off coffee makes sense. Can Starbucks both reaffirm its coffee purveyor dominance AND be an entertainment power when its showing weakness within its core brand? Will this deal (which probably was in the making long before the now famous Schultz "private" memo release) undermine efforts to retrench? Does it send the wrong message to the increasing numbers of dissatisfied former brand loyal Starbucks' fans?

In theory Starbucks has built a strong enough brand that can successfully launch "brand extensions" and "sub-brands" given the "love"factor they have among large numbers of customers world-wide.  They have built an experiential brand beyond its core product but the experience component is dependent on the coffee product being (perceived to be) superior to competition. 

In reality I think brand loyalty to Starbucks is clearly weakening and it would be best to follow the pathway first proposed before taking on a major effort off core. Once the coffee experience is re-established then the expansion of the Hear Music label can more easily move forward.

It may have been that the McCartney deal announcement was driven by necessary timing to prepare to launch his new album and that delaying it would not have been an option.

This will be a very interesting case study to watch unfold.

Watching out for you everyday. Please share your comments.

Eli