BrandSmart 2010 Shines the Spotlight on Relevant Brands

BrandSmart 2010 brings together a diverse spectrum of experienced brand managers for a top-level conference that will illuminate the challenges and achievements of global brands as they navigate the turbulent waters of today’s marketing environment. You’ll hear insights from leaders of established brands as well as some up-and-coming companies who are making a name for themselves.

If Danielle Paris, director of US menu management, product innovation & development at McDonald's Corporation, has her way, we’re all gonna be lovin’ it a lot more this summer. Paris is credited with the launch of the McCafé line in 2009 and has been instrumental in McDonald's foray into the frozen blended beverage category.

The global brand is set to introduce some new menu items such as Angus Snack Wraps, McCafé Real Fruit Smoothies, and McCafé Frappés (which have been rolling out nationally for the past few months). At an exclusive product-tasting event in NYC in early June, McDonald's executives and representatives “made it loudly known that they care about the quality of their ingredients, they are constantly innovating and they base many of their actions on customer feedback.”

While all McDonald's product innovation is the result of brainstorming sessions with, and reactions from, “food scientists and engineers, high-caliber chefs, suppliers, [and] independent store owner/operators,” feedback from customers is key to  determining what is eventually developed. According to the company bio posted on Twitter, “We’re here to listen and learn from all of our fans and followers.” 

Some of that feedback may not be quite what McDonald’s wants to hear, but customers and columnists voice their opinions over everything from remodeling to menus and ambiance. Attend the BrandSmart 2010 conference this week to find out how McDonald’s uses customer feedback to implement changes in its offerings.

Meanwhile, over at Walgreen’s, the dispute between the company and CVS Caremark Corp. seems to have been resolved, as reported by ChicagoBreakingBusiness.com. Kim Feil, chief marketing officer of Walgreen’s, may be able to shed some light on the outcome of the falling-out that recently concluded in a truce. Walgreen Co., with 7522 outlets, is the largest U.S. drugstore chain operator, slightly ahead of CVS.

The dispute threatened to prevent thousands of people from getting their prescriptions filled at Walgreens stores. Here’s an excellent example of the impact of the media on brands—and the ability of relevant brands to weather the storms surrounding corporate business decisions. According to an article at ChicagoBreakingBusiness.com, “shares of Walgreen and CVS Caremark jumped more than 3 percent each in (Friday) morning trading after tumbling more than 5 percent since the public battle began.”

Not only are Walgreen’s stock prices up, but the company recently inaugurated a new feature: prescription text alerts to let customers know when their prescriptions are ready for pick-up. Walgreens also has launched mobile applications for the BlackBerry and Google’s Android platform.

“These new applications follow the previous release of the company’s iPhone application in the fall. That program has been updated with new features, including the ability to view a prescription history and search for the nearest store using the phone’s GPS function,” reported ChicagoBreakingBusiness.com on June 15.  Feil may spend some time on these latest developments during her presentation at BrandSmart 2010 this Thursday.

If the big brands aren’t enough to whet your appetite, perhaps the VP and Brand Alchemist of SCVNGR, John Dobrowolski, will provide some tasty morsels for your consumption. The recently-released consumer version of Google-backed app SCVNGR awards points to users for taking photos of themselves at various locations, its chief difference from the likes of Foursquare. At this time, Chicago currently only offers up a President Obama-based trek and a search around Millennium Park. You may be able to suggest additional treks that could become part of SCVNGR’s searches in the future.

Don’t let the lack of local pickings keep you from joining the hunt—SCVNGR’s location- and mobile-based social gaming platform “goes beyond the check-in process…to provide challenges that put the mobile phone owner in the game. It's about participating in challenges, going places, earning points and unlocking badges. People who play the games scan QR codes, take photos, and solve riddles.”

We’re only a few days away from the BrandSmart 2010 conference, where you’ll hear from these—as well as several other—speakers from top companies who will share stories of how their companies stay relevant in a world that is in constant flux. 

Brands and the Media: The Trust Factor

When we hear bad news about a major company, we follow avidly as former brand kingpins are toppled from their lofty thrones in the few minutes it takes to post a news release online. How do media reports affect our brand loyalty, and how do they impact the degree of trust we feel toward these brand leaders?

For example, BP PLC has been charged with responsibility for the worst oil spill disaster in history—thanks to the oil rig fire that has destroyed not only fishermen’s livelihoods, ruined coastal environments and caused upheaval to the world’s oil supply but also encased BP’s formerly stellar reputation as a global brand (ranked #83 in 2009) in slimy residue. Greenpeace recently posted make-over’s of the company’s logo on its website depicting the oil company with less than complimentary images and words.

We’ve also seen the previously pristine Toyota brand suffer immense damage as a result of their unwillingness to put customer safety above corporate profits and performance. Today they are still trying to repair their tarnished image after a series of embarrassments and ongoing reports about manufacturing negligence and lack of responsiveness to consumer complaints.

Even the highly-vaunted Lexus brand was hit hard after Consumer Reports, a trusted source of information about brands in various consumer goods categories, labeled the 2010 Lexus GX 460 dangerous and issued a “Don’t Buy: Safety Risk” recommendation in its April 13 Cars Blog. The impact of such a warning could lead to a drop in overall sales for Toyota, especially as the company is trying to recover from its recall fiasco.

Worse than the lost auto sales for Toyota is the loss of consumer confidence in its brand. Numerous Lexus owners posted comments on CR’s Cars Blog the day the “don’t buy” warning was announced, expressing feelings ranging from deep concern to total outrage. Some readers even stated their annoyance with Consumer Reports: “…I hope that CR isn't trying to stay relevant by feeding into today's 24-hour news cycle with its insatiable hunger for negative news.”

Public opinion is very sensitive to media reporting of real or perceived disasters and debacles. Not even President Obama is immune from brand erosion. Denny Hatch’s blog, Business Common Sense, says it succinctly: “Obama’s massive PR failure (following the BP oil rig fire)…is not about politics, it’s about process—an exercise in public relations and communication that directly applies to every organization—a one-person entrepreneurship, CEOs of a small business or a giant corporation all the way up to the President of the United States.” 

The issue in question is not the facts of what the White House did or didn’t do right after the fire, but the perception transmitted by multiple media channels that they did nothing. Says Hatch, “This is about critics putting negative spin on administration policies and the White House shrugging it all off.” Hatch’s conclusion is worth noting: “It’s not good when the face of your organization has egg on it.”

Not all news is bad news, however, and plenty of media attention was showered upon Apple when it introduced its newest offspring, the iPad, such as the glowing review published by Engadget. As Apple has so often and so masterfully branded itself, and Time magazine reported just prior to the iPad’s launch, “…it's not about the features—it's about the experience. You just have to try it to see what I mean."

In a time of brand flux and economic uncertainty, it all comes down to the user experience. If Toyota’s products are deemed unsafe, their sales plummet. If the oil giant BP fails to respond quickly and appropriately to a global disaster, their image is damaged and their credibility suffers. If the White House seems to turn a deaf ear to a major environmental disaster, they are perceived as uncaring and unresponsive. If a company like Apple continues to offer products that customers love, they will enjoy market domination, which makes it difficult for competitors to gain an advantage.

All of these situations ultimately focus on the relationship between a brand and its customers. It comes down to trust. Is your brand trustworthy? Can you identify other companies who have lost or gained trust in the marketplace as a result of being scrutinized by the media? Share with us the way your brand has been affected—positively or negatively—by media coverage.