Can the Legendary Ron Johnson transform JC Penny?

I’m transfixed by Ron Johnson’s efforts to transform the dated image of JC Penny.  Heralded as a retail genius I think he has a bit of a rough road ahead of him…sort of like making the fashion-less kid hip again.  I really loved this print advertisement that ran in major papers last week.  Its humble and hopeful and casts a vision for a whole new JC Penny.

 I think if anyone can pull off this transformation it will be Ron Johnson.  He is an expert on “experiential retail” and to me JC Penny has to evolve their retail position from a “basics” retailer to a “destination” retailer.  This will require wooing coveted brands and Ron is already all over this with his announcement last week – Like Target, JCP’s roster of designer collabs is growing. Joining MNG, Nicole by Nicole Miller, I Heart Ronson and Olsenboye, will be “L’amour,” a Juniors line by Nanette Lepore. And breaking up the rows and rows of racks and blending departments – Instead of the open selling floor you would find in a JCPenney today, with all of the racks together, there will eventually be 100 individual shops dedicated to each brand. This decision was made based on the success of JCPenney’s Sephora shop-in-shops, which generate more sales per square foot than the rest of the store (from Fashionista.com).  Sound familiar?  Yes, similar to Target’s new strategy for The Shops at Target…both retailers are embracing the need for more boutique brands.  I’m am surprised and equally intrigued by the addition of Nanette LePore to the JC Penny line up…as a high end brand I covet, I am excited to see the fruits of  the collaboration.  Do you think I will be able to squeeze into Junior sizes?  Hmmmmm.

 I’d love to understand what the new logo means.  The red box and the “jcp” at first glance seems more corporate than “come shop with me.” Personally I visually like last year’s logo.  It is clean and contemporary.  However, I understand that to manifest a change such as Ron is embarking upon then you need a new brand image to support the planned evolution.

And celebrity tie-ins, Ellen announced her partnership with JC Penny last week, as their spokesperson.  I think she is a good starting point and brings a loyal following with her yet I also believe a more contemporary celebrity is needed.  Sorry Ellen but a younger face is also essential for JC Penny.  I think a lot of us think of JC Penny as the store for our grandparents.  However, finding a none controversial, timeless and contemporary personality is a bit of a challenge these days…is Taylor Swift still with Walmart/L.e.i.?

I’m sure there is a lot to learn about the planned evolution of the JC Penney brand that will be unveiled over the coming months once the new campaign kicks off tomorrow…we can’t wait.

Here is a great article about Ron.

Best

Suz

Has Paula Deen Tarnished her Brand?

Last week Paula Deen, famous Southern Cooking expert for the Food Network, announced that she has Type 2 Diabetes, and that she has had it for almost three years!  She also announced her new website, Diabetes in a New Light, that is sponsored by Novo Nordisk, a pharmaceutical company that makes the diabetes drug, Victoza, and who pays Deen to be a spokesperson for said diabetes drug.

After these annoucements she proceeded to promote her son’s new show that takes her recipes and cooks them in a more healthy way!

I take issue with Paula Deen not announcing her diabetes sooner, and leading her faithful followers on a path to better health…and striking a deal with a pharmaceutical company to profit from her health issues that is unconscionable. I have always thought that Paula Deen was such a jovial chef when seeing her make guest appearances on other cooking shows so its disappointing to see a celebrity make such bad decisions.  I think Anthony Bourdain’s tweet says it all “Thinking of getting into the leg-breaking business, so I can profitably sell crutches later.” –Anthony Bourdain on Twitter. 

I think there is plenty of room for celebrities to profit from their brand but there needs to be a limit.  The timing of this announcement seems managed and planned for some time.   Diabetes affects 25.8 million people of all ages
8.3 percent of the U.S. population (from the NDIC), and drugs are not the cure – education, exercise and better eating habits can solve a lot of the issues.

In my humble opinion, YES, Paula Deen has tarnished her brand, and if I was (which I’m not) a fan of Paula Deen I’d be questioning her egregious capitalistic ways.  A consumer has to believe in and trust a brand that they support, Brand Promise 101.  Would you trust and believe in Paula Deen after last week?  I know I wouldn’t.  Thoughts?
Best

Suz

Target’s New In-house Co-Branding

I’m a big fan of Target’s branding efforts and their passion for showcasing brands that they believe will appeal to their consumers.   Enter stage left – The Shops at Target (The Shops at Target commercial), their latest venture to bring brands/design in-house that will launch chain wide and online May 6th 2012.  

The assortment of shops seems to represent some of their core categories.  The first five shops are; The Webster, The Candy Store, PolkaDogBakery, Cos Bar and Privet House .  I’d guess that most of the branded shops are NOT nationally know by Target customers.  However, the wonderful style and appeal of the chosen brands should quickly endear themselves to Target consumers.  A total of 400 products uniquely designed for Target by these curators of style will create quite an exciting event in-store (and online) for Target in May.  I personally can’t wait!

I think its commendable that Target continues to evolve in the mass market arena.  Their commitment to reinvent and invigorate with design and product assortment in order to reach beyond the traditional mas market customer is almost enchanting to watch.  Hmmmm…what stores will be in The Shops Fall 2012 line up?

Suz

P.S. Here is the official Target press release from Privet House, one of the new partners.

Is Reebok Re-Branding?

A friend of mine posted the new Reebok CrossFit “The Sport of Fitness has Arrived” commercial on their Facebook wall and while I understand its a “statement” commercial unveiling their commitment to CrossFit as a sport, I have to ask about the branding. The majority of the commercial has shipping containers being delivered all over the world…essentially creating intrigue but where is the Reebok brand icon?

  The commercial runs 1:02 seconds and at 52 seconds you get a glimpse of “Reebok” on the wall of a gym…and a few other glimpses at “Reebok” on the wall before the commercial is over. This commercial is running in some of the most expensive NFL time slots, why not tie your globally iconic logo into the commercial…is the Reebok logo graphic changing to this triangular icon?  I think I have this icon on my dashboard to press when I need my emergency lights on!

I think tying into the CrossFit movement maintains Reebok’s position at the forefront of the sports market, and if that involvement continues to feed back into product development with products such as the Real Flex (great commercial here with Reebok logo throughout!) then even more kudos to Reebok.

However, I’m confused by their branding strategy for this announcement commercial.  Any one agree or disagree?

Suz

Iconic Brands – Can a true Americana brand make a Comeback

Some brands could be considered a national treasure, or a memorable American classic…and Hostess falls into the latter.  The news last week that the 87 year old company has once again fallen into  bankruptcy, making it the second time in less than three years is alarming.  The Hostess press release blamed the latest bankruptcy on a weak economy and costs tied to pension and medical-benefit obligations. The Irving, Texas-based baker intends to withdraw from pension plans and modify collective-bargaining agreements with unions, according to court documents (per the Huff Post).

A quick look at their Facebook wall points fingers at Management and Unions so it looks like the company’s shaky ground maybe due to numerous ongoing issues.  However, even amongst all the finger pointing I’m taken with the outpouring of support and LOVE for the Hostess brand on Facebook.

One fan went so far as to stay “I would have rather bailed out Twinkies (Hostess) than the Wall St.”  that is brand loyalty.  And she isn’t the only one, their wall is an outpouring of support for Hostess.  How can a company with such a beloved brand(s) go so wrong?

I think at first its a simple answer – they make junk food and the nation is trending towards healthier foods.  However, its seems more complex because Hostess have introduced healthier versions of existing snacks, and new lower calorie snacks.

My humble opinion is that a lack of brand evolution with their core consumers has Hostess in this position.  Hostess is synonymous with sugary sweet snacks, which was an enviable position for many decades.  However, now that Americans are more concerned with their health, Hostess cannot break free from the brand identity they have enjoyed for decades.

The good (great!) news is consumers are rallying around the company.  The questions is – do you choose your health or an iconic American brand?  Or, how can we keep both?

I’d love to know your thoughts.

Suz

P.S. that urban legend about Twinkies is NOT true…shelf life is 25 days (-ish!) but they are on the shelf for 7-10 days on average 

to brand or not to brand…

I am asked quite frequently, “how important is it to brand yourself, or your company?”  I was even at a conference last year where this topic was on the agenda…really it was!  Well, this makes me get a little antsy and my heart starts palpitating since I’ve spent my entire career developing brands!  However, I’ve learned that the concept of branding can mean many things to many people…interpretation and application is diverse and a constant point of discussion.

I read books about branding all the time (dying to write my own book!)…I must sound like a bore but I really do find it interesting.  I strongly believe we should strive to evolve and educate ourselves so by reading and being open to other  POV on branding helps me further understand the nuances of consumer behavior and how to influence consumers.  What makes a person loyal to a brand? An advocate for a brand.  Or, why consumers take the time to express their joy and appreciation or their frustration or disappointment with a brand?  See its fascinating…especially with the integration of social media.  Consumers can express directly to a brand, or in a large forum, their opinion on a brand, product or service.  I’ve found so many global companies that don’t answer, never mind interact with their consumers…its just a ‘push the information out’ strategy, and who likes that?  Especially in today’s society people want to connect with something greater than a product or company…they want an elicit an emotional connection to a brand or personality.

So to answer the question – Yes, brand, please please apply branding practices.   Integrating a brand-centric mentality can be something that truly drives a program and this focus sets a strategy and course of development and a connection with target consumers.  A focused emotional connection that sets your apart from others.

I’d love to know your thoughts on the subject. 

In a digitized world where practically everything is conveniently accessible, social media networks have completely redefined the way the branding world builds a company or product’s awareness and brand value. What we need to consider is collaborative brand development with consumers where a key component of brand building is driven by their collective  influence through facebook, twitter, Linked in, you tube etc etc…When a person talks favorably about a brand or product through social media the ripple affect of this action can have a significant impact on a campaign, company and brand.

Consumers are now playing a much larger role in the success that a brand has by shaping its public image and building a brand’s reputation through positive (or not so positive) brand advocacy. Product recommendations shared by friends and peers on the web are welcomed and held in higher regard, much more so than a message from an impersonal print or TV advertisement.   Consumers are also becoming more knowledgeable about products from peer reviews on social media outlets and online research, therefore a firm must engage consumers and nurture interactive relationships in order to survive in modern times.  This is not “Push” marketing, it is “Interactive” and “Engaging” marketing where a consumer’s voice becomes an integral part of the brand strategy.

The old marketing and PR techniques just won’t do it anymore.

To succeed and withstand time – developing an online marketing and PR plan to communicate and interact directly with consumers to  present and promote a brand in the best light is the only way, and the future of brand building.

To read more about brand value in a new world, here’s a great article we found on mindfulmoney.com

by Lily S