It’s Mallomars Season
There have been many changes since I was a kid; but some things have not changed at all. Mallomars®, Cheerios®, Ivory Soap®, Kleenex®, Ketchup® and Cracker Jacks®. Coca-Cola® tried, but changed back. Why is it that some things just never change? Possibly because they perfectly fill the need for them, they are inexpensive, are expertly positioned and have great brand equity.
What about your business? How are you positioned? Do you really fill a need and do it better than anyone else? Does your pricing reflect the value customers get? I believe any of the products mentioned above are priced higher than competing products, but the price points are low and the product size makes frequent purchases a regular habit. Do you have a brand? Actually every business has a brand. Some are managed better than others, and some connote a premium experience while some a neutral or lousy experience, but they are their brand.
I believe money spent in promoting and managing brands is an investment and I encourage clients to think along this channel. Branding and positioning is essential for retail products, but what about a manufactured product sold to another manufacturer or a service provided to a business client? Branding does work for these businesses as well but it is more subtle and less obtrusive.
ROI (Return on Investment) is measurable but it depends on the ruler that is used. For instance, money spent on brand identification is an expense on your tax return and financial statement and reduces profits. In brand building your income statement isn’t the right way to evaluate the ROI. Brand building is a long term process and the ROI should be measured by sales growth at higher prices, increased market share or by the increase in the value of your business. Greater sustainable cash flow at some point translates to increased profits and profits is a key value driver.
We are in a new world with new ways of doing business…and creating value. Our ways of measuring value needs to change as does the way we look at things. The catalyst for this blog was a meeting I had with a client last week where I showed him a completely different way he should measure his costs, growth, pricing and value to his customers. When the fences and parameters of the past are removed it opens the mind for new ideas. Question everything, challenge established customs, look at your product or service in terms of value to your customer and how they use or benefit from it. Convenience, availability, delivery, user-friendly relationships count a lot toward the brand. So does a quality product, reliability and consistency.
As to the Mallomars, there is a September to March season through tradition. This six month season creates a scarcity and added value in its customers minds. That is part of their brand. Also, nobody price shops Mallomars – we just load up at the beginning of September and enjoy them until we get close to running out and then we load up again and then big time in March. An FYI is that they are made in Canada but not sold there. Canadians need to cross the border to get their Mallomars, and lucky for them, there is no tariff on Mallomars.
The next time you bite into a Mallomars also think about your brand. And invest in it!
How Can We
