Orange Envelopes | Small Business Optimized Marketing > By Design

A front page article in last week’s Wall Street Journal documented the demise of Liz Claiborne, one of women’s fashions most successful product lines for 34 years. The company that pioneered working women’s apparel after its introduction in 1976, Liz Claiborne has been removed from virtually every tony retailer and is now available exclusively through JC Penney.

It was a precipitous and entirely avoidable fall.

Liz Claiborne broke the first commandment of branding: Be true to your clients and yourselves.

Claiborne made its name by designing stylish career wear for the millions of women, particularly younger women, entering the workforce. Their pieces were consistently styled and well made, delivering a specific brand promise to the women who stocked their closets with Claiborne ensembles that could be mixed and matched to create multiple outfits from a handful of separates.

Claiborne developed a loyal and trusting following of women who appreciated her collections. But with her retirement from the company in 1989, the brand began to suffer. There was no designer who shared Liz Claiborne’s design aesthetic and without a design leader, the company regressed to a financial leader whose focus was the bottom line, not the hemline.

Design by committee emerged, diluting the Claiborne brand promise in a fruitless pursuit of the youth culture. Their working women loyalists took notice and turned their backs on uninspired and confusing Claiborne collections that were considered fashion forward but not geared toward working women, the brand’s core constituency.

The dispiriting Claiborne story was in sharp contrast to the story that Jay Greene recounts in his book Design is How it Works. Porsche has remained remarkably successful in an industry that has few perpetually thriving automakers. Porsche attributes their success to an unyielding devotion to the design principles encompassed in the very first 911 that debuted in 1963.

Since their very first car, Porsche has remained true to its design DNA by incorporating specific design cues – intakes instead of a radiator grill, a car that always tapers to the rear, open wheel rims to display the strong brake calipers, front fenders always higher than the hood, ignition always on the left of the steering wheel and vertically oriented dashboards – that support their vision of a car that is all about driving performance and authenticity.

Porsche has never varied from a design approach that produces cars that their own designers crave. They never cut corners. They never adopt trends that risk the company’s credibility. And they never try to appeal to everybody.

Porsche designers intuitively understand the desires of their most passionate drivers and develop new cars with them in mind. Liz Claiborne took a different tack and abandoned their brand promise and with it their most loyal clients in pursuit of a younger, more active customer. They alienated their most loyal customers without generating any traction with the fickle and trend conscious youth market who want nothing to do with the company who makes clothes for their mothers.

Porsche has had an endless string of hits, including their Boxster, Cayman, Cayenne and Panamera and reported record profits in 2009. Liz Claiborne has virtually ceased to exist. Breaking your brand promise appears to have severe repercussions. If only the Claiborne executives drove Porsches, they’d understand.

How many other successful brands have hastened their corporate demise by abandoning their core principles and their most loyal customers? Sadly, I’ll bet it’s long. Real long.

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A terrific article in today’s New York Times by Edward Niedermeyer prompted me to document my own belief, from the day I heard of GM’s announcement of their eco-friendly Volt hybrid that it would be a massive and historic commercial failure.

There may be no single automobile ever made that has garnered as much positive press and unfettered support from the press, the green lobby and the government. They desperately want the Volt not only to succeed but to be a game changer, a tipping point in the auto industry.

And I’m here to tell you it won’t be a game changer. It will tip no points, and it will end up losing massive sums of money.

It would be hard for any product to live up to the anticipation and hype that’s surrounded the Volt. The Volt’s has been assigned messianic status in the auto industry, it’s supposed to be the savior of GM, the transformer of all transportation and the harbinger of an entirely new way of thinking in the auto industry.

But the Volt has been destined to fail from day one. Rather than asking their designers to make an already developed idea more attractive to consumers, GM should have asked them to create ideas that better meet consumers’ needs and desires. The former role is tactical, and results in limited value creation; the latter is strategic, and leads to dramatic new forms of value.

Their objective from the start shouldn’t have been limited to the objective of building a new hybrid car, but to create new interactions, entertainments, immersive, emotional activities that are embodied in an entirely new way to travel.

But GM is not a strategic, design-centered company. They’re a tactical company that has never demonstrated a capacity for design brilliance or its commensurate risk taking.

Want proof? Take a look at the actual Volt that they’ll be attempting to sell this fall for $41,000. It’s nothing more than a Toyota Prius with a $15,000 Chevy bowtie on its grille.

Contrast this bland design with the original concept car. It was bold, it was edgy, it stood out and made a statement. So, of course, GM had to assign some internal committee to tone it down a little. After all, they want it to appeal to the largest audience possible.

Their design killing efforts proved Mark Twains adage that “I cannot give you a formula for success, but I can give you a formula for failure, which is: Try to please everybody.”

I believe that brands are the promise of an experience. Great brands can project our hopes and dreams and aspirations. They broadcast who we are and what we believe.

So what is it that GM wants to convey with this rolling testament to corporate mediocrity that hasn’t already been captured and owned by the Prius?

Beyond the branding and design failures, GM has to overcome enormous financial, technical and practical hurdles that all conspire to doom the volt.

It’s expensive at $41,000 – which doesn’t include the price of the $4000 charger you’ll need in your garage.

Its electric motor range of 40 miles is virtually guaranteed never to be met in real world conditions. Subtract mileage when it’s cold or when you’re operating the AC or the radio.

And, when its battery needs to be replaced, get ready for the $8000 sticker shock.

The Volt is a corporate response to political pressures. It validates the contention that great design and revolutionary concepts don’t emerge from corporate boardrooms and government bureaucracies. The Volt is exactly what we would expect from Government Motors, and that’s the tragedy.

Imagine what could have been produced if Apple were to design a car from scratch. Or if Google teamed with Ideo to create a new commuter vehicle. I don’t know what they would conceive, but I do know one thing for certain: it wouldn’t be the Volt. And it wouldn’t require hundreds of millions in subsidies to attract buyers, and it wouldn’t be conceived without considering alternative green technologies that could be integrated into its design.

If the Volt symbolizes the new GM and the new Michigan, as Michigan Governor Jennifer Granholm claims, pray for GM and Michigan.

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Someone should create a mission statement for any company attempting to create a mission statement. Something like this:

We will critically examine our company to determine why we do what we do. What inspires us. What drives us. What excites us. Then we’ll write a brief statement that accurately, and singularly, describes our company. That can fit on a t-shirt. It will not contain the words: best, leading, biggest, profit, diversity, growth or exceed expectations.

Now, if you really, really feel that a mission statement is essential to understanding and guiding your business, you have the rules. My question is: Why do so many companies break these rules and create irredeemably awful, platitudinous and ultimately pointless mission statements?

My ire was inspired by an article I read on the Smart Business Online website this week detailing the efforts of Staffmark CEO Frederick Kohnke to rebrand his national staffing company around a unified vision, mission and values. The project took nine months and resulted in one of the most useless, generic mission statements I’ve ever read.

Really. That’s not just hyperbole. Although the resulting mission statement wasn’t included in the article (wtf?) I found it on the Staffmark website. Their mission:

To always strive to exceed the expectations of our employees, business customers, and external stakeholders.

How’s that for exciting? Really gets your juices flowing, doesn’t it? Strive to exceed expectations. What’s the matter, think outside the box was taken?

If you spend nine months creating a mission statement, odds are that it will be created not by the company founder or CEO, but by a committee tasked with the job of creating an inclusive mission statement. One that will take into account all their stakeholders, will be legally benign, generally inoffensive and ultimately uninspiring. One that will be guaranteed to include no distinctive or compelling voice, no descriptive or detailed verbs and certainly nothing that will differentiate it from any other staffing company. Staffmark succeeded spectacularly on all these counts.

What’s so terribly disappointing is that genuine, heartfelt mission statements can be inspiring and unique. Consider Ben & Jerry’s mission statement:

To make, distribute & sell the finest quality all natural ice cream & euphoric concoctions with a continued commitment to incorporating wholesome, natural ingredients and promoting business practices that respect the Earth and the Environment.

There’s not another ice cream manufacturer that could claim that mission statement. Euphoric concoctions. How wonderful is that phrase?  The precise wording matters because it captures the essence of Ben & Jerry’s. It could not be transferred to Briar’s website, or Edy’s or Haagen Dazs.

Or consider Coca-Cola’s mission to refresh the world. It captures their company spirit in a way that PepsiCo’s mission to be the world’s premier consumer products company focused on convenient foods and beverages doesn’t.

Being the premier, leading, biggest, most profitable company isn’t a mission, it’s an objective. It’s not inspiring to anyone outside of the company boardroom. Not one of your employees will get out of bed tomorrow and say to themselves “How am I going to make Company X bigger today?”  But I’ll bet there are Disney employees who get up and ask themselves “How can I make someone happy today?” And I’m certain that there are Apple employees who can’t wait to get to work to do something insanely great.

But apparently Staffmark is content with their employees exceeding expectations. Whose expectations? We don’t know. How are the expectations measured? We’re not sure. How will anyone know when they’ve exceeded expectations? They won’t. But, gosh darn it, it’s better to exceed expectations than fail to meet them, right? Then that’s the goal.

And I’ll bet that if I were to call 20 of Staffmark’s employees today, not more than one or two would be able to recount their company’s mundane mission statement. Anyone want to take me up on that?

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Exactly one year ago today I wrote that you could put a fork in Motorola. They were done.

At the time, Motorola was reeling from a string of lackluster phone releases that failed to generate any consumer excitement, their product designs were uninspiring and their engineering and development staffs were incapable of developing innovative products for the half-dozen different mobile operating platforms that they supported.

They’d lost their design mojo and appeared unable to recapture any Wow! factor.

The New York Times reported today that their new CEO, Sanjay Jha, has bet the company’s future on Motorola’s newest iPhone combatant, the Droid. And the early buzz indicates that the Droid may very well save the company.

How did Jha design a company saving product strategy that you can apply to your business?

1. design a better experience. The single biggest complaint about the iPhone is its lack of a real keyboard. The Droid offers a thin keyboard that slides out from the phone, thereby resolving the iPhone’s most glaring weakness and instantly appealing to thousands of users who love the iPhone concept but could not live with its touchscreen keyboard. Instant win.
2. personalize the experience. There are now more than 100,000 reasons why the iPhone is so popular with its users: applications. Every user has personalized their iPhone with the apps that complement their lives. Every user’s iPhone is unique to them, and by adopting Google’s Android mobile platform, the Droid has access to a growing library of Android apps that will allow Droid users to create a uniquely personal device that can’t be replicated on any other platform.
3. create a sensory experience. Although Motorola was known as a design innovator, they haven’t introduced a compelling product design for several years. The Droid changes that. Jha understood that the visual aesthetic and the tactile sensation of holding and using the Droid was crucial. Motorola smoothed some hard edges and covered the back of the phone with a tactilely pleasing rubberized coating. In addition, they’ve incorporated a larger, 16:9 hi-res display that delivers a compelling visual experience. Overall, it’s a sensorial delight.
4. create a WOW! experience. the Droid is being released with a new navigation system from Google that has amazed the early reviewers. It’s the kind of killer app that can generate huge volumes of sales on its own since it replaces the need for in-car navigation systems. It’s visually exciting, it’s instantly understandable and it delivers exceptional value. They captured Wow!

Apple has retained its position at the top of the smartphone heap for over two years. Challengers have been easily dismissed. Until now. And if Motorola can continue to focus on designing and delivering exceptional user experiences, they may very well challenge Apple’s dominance.

Any iPhone users thinking of making the switch and betting on the Droid?

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A recent study released by Universal McCann reveals that we are immersed in the fourth wave of internet usage characterized by social networking participation. Their study notes that social networks are becoming the dominant platform for personal interaction and content creation and distribution.

The global internet audience now totals 625 million people, with almost 100 million of those users located in the United States. Nearly two-thirds of these users are active in one or more social networks.

What’s also revealed is how these users spend their time on the social networks. The most popular activity was watching video, followed by listening to streaming audio, blogging and connecting with friends.

What does this mean for you or your industry?

First of all, the place to connect with people – whether personally or professionally – is on one of the social networks. They’ve made their choice how they want to interact with others, and it’s not through email. For professionals, this typically means LinkedIn, though Facebook is being used more and more by professionals who have learned to adjust their privacy settings so as not to share overly personal information with other professional contacts.

These trends also mean that you need to generate content that is interesting, engaging and compelling enough to generate views and inspire your connections to share your content with their own network of friends and colleagues. The dominant format for this content: video. If you’re not creating videos to put on your site, your blog, your LinkedIn page, your Facebook Fan Page, then it’s time to start.

But don’t stop with video. Over 70% of social networkers also post photos to their pages. People want to see who they’re connecting with, and a thoughtfully designed series of photos can generate a powerful impression. For the professional, these can include images of your office, your personal workspace, your coworkers and even photos from events that you participate in. Sharing some personal visual insights will increase your familiarity, strengthening your connections with your networks.

Finally, if your company really wants to engage online, you need to create a community that’s worth joining. That means frequently updated, compelling content. The promise of interaction with other, like-minded people. A thoughtful, meaningful – even delightful – user experience. And the ability to listen to your community members and adjust your activities to satisfy their needs, not yours.

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I read a post from Chris Brogan this morning about Dunkin Donuts’ new iPhone app designed to assist the office coffee runner who needs to keep all the orders straight.

Brogan’s blog post and accompanying screen shot exemplified how simple, effective and targeted design could deliver a terrific user experience while solving a common problem: how to collect increasingly complex coffee and breakfast orders from an entire office staff.

I intended to write a post about the effectiveness of simple design so I downloaded the Dunkin Run app, launched it and immediately decided to change the theme of my post.

3 Quick Steps to Devastate Your Clever iPhone App:

1. Compel your user to enter login information that refers back to an unnamed site where the user ID must have already been created.
2. Provide no instruction, hints, links or ability to create a user ID from your application.
3. Ignite burning hatred of your application that cannot be accessed.

I’ve got to wonder… did anyone from Dunkin Donuts’ marketing department ever take a look at this app?

Did no one consider that brand new users – without existing Dunkin Donuts user ID’s – would try the app and hit a brick wall?

Where was the beta testing?

Dunkin Donuts: FAIL.

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Sony has transformed itself into one of the most disappointing brands of the 21st century. The company that dominated consumer electronics for most of my life hasn’t had a bona fide consumer electronics hit outside of their gaming systems in years, and their product releases, with business partner Ericsson, of multimedia playing phones and smartphones have been huge disappointments.

Sony Ericsson’s response to their negligible impact on the smartphone market? The introduction of an $800 smartphone to compete against the iPhone and Blackberry lineups. It’s almost as if they’re trying to fail.

Sony Ericsson is not renowned as a mobile phone provider, as evidenced by their 5% market share. Their forays into Walkman phones – phones capable of downloading and playing music – produced little consumer interest

Sony has always had a sharp eye for design, and they’ve certainly brought their design sensibility to their joint venture. Sony has designed and manufactured some of the most stylish and technically advanced electronics in the world. But their grasp of design apparently doesn’t extend to the full concept of design thinking, which also takes into account the entire user experience surrounding one’s product.

Play to Your Strengths
Anyone who has used a Sony product in the past 10 years knows how miserable the Sony user experience can be. I’ve owned Sony cameras, videocameras, ebooks and laptops and can attest that their devices don’t play well together, much less play well with others. Sony continually provides beautifully designed hardware with thoughtlessly designed software – a combination that guarantees a lousy experience. And yet they continue.

There is still a huge opening for Sony Ericsson in the smartphone market that can exploit one of Sony’s only remaining strengths: gaming.

Sony has sold over 50 million of their portable PSP gaming systems worldwide. They have experience in that sector that no other manufacturer has. They’ve watched the iPhone develop into a serious gaming platform, validating the market for combination phone/gaming systems.

So what does Sony Ericsson do? They release an $800 smartphone with a great camera and no gaming. Wow.

Maybe I’m the one who’s out of touch. It’s certainly possible. But I have serious doubt that a 12 megapixel camera will drive sales of an $800 smartphone when virtually every other smartphone offers at least a passable 3 MP picture. I just don’t believe that photos drive phone sales nearly as much as entertainment options drive phone sales.

Oh, by the way, Sony Ericsson isn’t even releasing their new phone for another 6 months. That just gives them more time to fall behind the new iPhone, Palm Pre and new Blackberry introductions before they launch an inexplicably expensive phone in a midst of a global recession.. Good luck guys. You’re going to need it.

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Living in Cleveland, as I do, I have frequent conversations with executives who run prototypical rust-belt businesses. Heavy manufacturing, industrial distribution and professional services that support these core businesses that are decidedly unsexy and unremarkable.

What’s surprising about these discussions is how many of these executives view their own companies as unexceptional and nondescript. Which begs the question: If you don’t think your company is remarkable and unique, why would anyone else?

As the former owner of a manufacturing company that produced labeling machines (it doesn’t get less sexy than labeling) I can attest to the dysfunctional industrial mindset that dominates entire industry sectors. Manufacturers are obsessed with their physical equipment, not what it is capable of providing. Distributors are the sum of their products, not the value they add in knowledge, responsiveness and expertise. And service companies have absolutely no idea how to separate themselves from nearly identical competitors.

When I hear these executives describe their own company in these terms, I see boundless opportunity. In most cases, their competitors behave in exactly the same way, enabling a savvy, thoughtful  and creative marketer to create a distinctive and memorable presence in their industry sector. And with the proliferation of penetrating social media tools, the ability to create an impression and reach your targets with precision and frequency has never been greater.

So if I can see the opportunity, why can’t they? I hear the same excuses over and over, including:

1. My customers aren’t on the internet. I was wondering who it was that wasn’t on the internet at all. Turns out it’s always the clients and prospects of every industrial executive I speak with. Theirs are the ones who don’t use e-mail, never watch anything on YouTube, get their news exclusively from newspapers, still use film cameras, listen only to CD’s and still deliver presentations from a stack of transparencies. I don’t believe it. What’s more believable is that these companies have never provided any reason for any of their clients to use the internet to gather information, gain knowledge or, heaven forbid, entertain.
2. My customers buy on price, so what’s the point? The point is that you’ve never given your clients any reason to base their buying decision on anything other than price. That’s the fundamental problem. You need to become more valuable, and a thoughtful social media program can communicate your distinctive abilities, and reinforce the true value you deliver.
3. What would I say? At first, it’s not about what you say, but how you contribute. How can you help? What do you know that you can share? It’s about them, not about you. Link to articles that you think they would find helpful and interesting. Link to videos that are instructive and entertaining. Link to research that will help their strategic business decisions. And write about the successes that you’ve contributed to and the problems that you’ve helped overcome. Nobody’s expecting brilliance. Insight will do.
4. I don’t have the time. What priorities do you have that are greater than developing your business? Building close relationships with your prospects and clients is not something you can outsource to a marketing firm. Your web developer cannot substitute Flash for real conversations. Want to demonstrate your commitment? Spend some time each day participating. If you don’t commit and engage, neither will your staff.
5. I would lose control. For many old school executives, the concept of social media participation is downright scary. What do you mean people can leave comments? What if they say bad things about us? How can I control what my employees say online? For the command and control executive, the openness of the social media channels strikes fear in their heart. For these executives, I can only commiserate and offer the limited consolation that the new world of social media marketing won’t be that bad if you’re authentic, open, truthful and helpful. Now is that too hard?

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The blogosphere and Twittersphere have been buzzing this past week over a series of blog posts by Oliver Blanchard on his blog, The BrandBuilder, discussing how to communicate social media ROI to skeptical executives.

The posts sparked dozens of comments and hundreds of Tweets from social media aficionados that split between those who castigated Olivier for daring to introduce crass mercantile interests into the pristine world of social media and those who recognize the business realities involved with securing investment and executive support and need practical guidance to pitch their social media plans.

Olivier was precisely correct when he wrote that executives need to hear how any social media plan will generate a tangible and measurable return on their investment. These executives are responsible for dispensing a finite amount of corporate resources among departments. It is practical, desirable and reasonable that they dispense investment dollars to those projects that will advance the company’s financial position the farthest. That’s reality. Now how do you deal with it?

Once you understand their agenda – maximizing the return on their finite investment dollars – you can frame your social media plans effectively, in language that is compelling and convincing.

Rule #1: do not talk about Twitter followers, the number of retweets last month or the number of times a Fan Page was shared on Facebook. They don’t understand and they don’t care. Zip it until next month’s local SMC meeting.

Rule #2: Speak in language that they understand: Process, Plan, Cost and Return. CEO’s will want to understand the SM process and know that you have a precise plan to execute. By the way, it must be written, or it’s not really a plan.

Rule #3: Do not tell the CEO that the cost of your social media plan is zero or you’ll lose all credibility. Although Twitter, Facebook, LinkedIn and WordPress do not charge their users, their cost is not zero. Their actual cost must include the human costs of participation, engagement, content development and management. How many employees will be involved? At what level? How many hours per day? Per week? Although the company doesn’t write a separate check for social media costs, they are paying for participation, and the total cost may be significant.

Rule #4: Focus on Quantitative, not Qualitative returns. Qualitative returns include the impact of your participation on your company’s reputation and the value of extended online conversations in relationship building. The CEO doesn’t care. I know you do, and I know your CEO should, but that’s not how he measures success. He wants Quantitative metrics. How many new customers did your efforts generate? How many new sales? How much did the average sale increase? What impact did your efforts have on gross margin?

Rule #5: Understand how the F.R.Y. metrics explain and support your social media goals. As Olivier described in his blog post, a compelling social media strategy should improve:

Frequency Increasing sales revenue by shortening the interval between transactions.

Reach (breadth) Increasing sales revenue by increasing net new customer count.

Reach (Depth) Increasing sales revenue by helping customers buy deeper into the product line.

Yield Increasing sales revenue by driving customers to want to increase their average per transaction spending.

Rule #6: Be prepared to detail how you intend to track sales that emerge from the social media channels. You must be able to track results to prove that your SM participation justified the company’s investment.

There. That wasn’t so hard. Now head up to the CEO’s office and tell him how you’re going to improve the company’s bottom line. And you can blog about it later.

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Sat at the bar at Champps this week where a shark fin shaped coaster caught my eye. It was the coaster for a beer named Landshark, and I thought it was a creative use of design to grab attention and notice.

The coaster sparked a conversation with the bartender about the beer. It was obviously intended to appear to be a microbrew targeted at the Corona drinker, and I was curious how a microbrew could land in a major restaurant chain and have their coasters placed under every drink at the bar. That’s an expensive proposition, and one that’s not entered into lightly from the chain’s perspective.

Something didn’t make sense, so I pulled out my handy iPhone and fired up the Google.

A quick search revealed that the Landshark beer wasn’t a microbrew after all, but was brewed by Anheuser Busch for Jimmy Buffett’s Margaritaville Brewing Company and launched as a direct competitor to Corona.

The Landshark bottle design is virtually identical to Corona’s, it is served with a wedge of lime to be squeezed into the bottle, just like Corona, and it is described on its label as Island Style Lager (though the specific island, or islands, is never specifically identified, though we can be reasonably certain that the island isn’t Manhattan).

The connection to Corona is even more apparent when you take a look at the Landshark lager web page on the Margaritaville corporate website, where the images of Landshark postcards appear to be a direct rip-off of Corona’s marketing efforts.

Seriously, Landshark’s materials are a direct lift of Corona’s look and feel images incorporating sandy beach, dazzling blue ocean and palm tree fronds dangling from the upper corners. Gentlemen, start your depositions.

Faithful to my inquisitive marketing nature, I ordered a Landshark to gauge it’s similarity in taste to its intended rival. The beer was similar in flavor to Corona, delicious with a wedge of lime, and immeasurably better than the major brewers’ other Corona rivals Miller Chill or Bud Light Lime. Which left me conflicted.

The product itself is fine, but I have qualms about how the beer’s marketing strategy is being designed and executed. Both the bartender and another Landshark beer drinker that I spoke with thought that the beer was a microbrew. In fact, that was one of Landshark’s primary appeals: it wasn’t a big corporate brew. Except it was.

Want to know how big and corporate Landshark is? They just acquired naming rights to the Miami Dolphins Stadium for one year. That’s seriously corporate.

At its core, my unease with the brand lies in its lack of any genuine authenticity. It pretends to be something it’s not. It has no island style, no island roots, in fact no legend or backstory at all.

Ultimately, that’s where Landshark, and their ad agency, fail. They obviously want to position themselves as the beer of choice for Corona lovers. But what’s the reason to order the imitation instead of the real thing?  With all the social media and web-based marketing tools available, it’s never been easier to create a legend and product persona. But Landshark has no social media presence at all, has intentionally avoided creating their own legend and appears intent on leveraging a glossy image and their substantial marketing dollars to gain mindshare and bar space.

Given a choice between the two, I’ll take the original Corona. With a wedge of lime, please.

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