You don't need me to remind you that markets are much more competitive, revenues are being squeezed and many have lost faith in our politicians and our economy. At times like this when budgets are shrinking, it can be tempting to cut your spending on design. After all, design is an area that can be difficult to understand, measure and source. However, could it be possible to design yourself out of a downturn?
The fact is that it is even more important to invest in design when times are hard. Now is the time that your target audience needs to be convinced that you are the right business to spend with. Now is when your potential customers need to be aware of you, your products and services. Now is when you need to connect with your target audience by responding to their needs and providing solutions.
What's more, if you go against the trend of reining in design investment your business could gain an edge over your competition. Let your rivals reduce or completely cut their spend on design, but continue your own investment in design.
Attitudes to design
According to the Design Council, "When times are tough it is change, dynamism and vitality – not hunkering down quietly – which are the keys to success... The decision to innovate – to rethink and regenerate products, operations and image – can be taken by a company of any size and in any area. Design and brand strategy can help elevate a firm or its products from the ordinary, the tired or the predictable, demonstrating that the business is alive, dynamic and responsive. And in a declining market that just might make the difference between growth and collapse."
I strongly believe that attitudes to design need to change, especially in the minds of start-up and small-business owners. I hear small-business owners convince themselves that they can manage with DIY design solutions, because they are not the 'big boys' and can't afford dedicated design departments. But how can you ever become a 'big boy' without investing in design?
Case study
Let's take beer, for example. This industry is declining with consumers spending less, and reduced supermarket pricing and the smoking ban causing even bigger challenges. Then there was Castle Rock Brewery in Nottingham. Well aware of the weakening beer market, they realised that a stronger brand was a priority. According to the design team that worked on Castle Rock, "Its corporate identity lacked authority, was being used inconsistently and in most cases almost apologetically across its communications. The crafting and attention to detail evident in its award-winning beers was not in any way reflected in its customer-facing image." A clearer focus was brought in, a coherent range of beer badges created and individual beers were given their own personality, whilst clearly remaining part of the Castle Rock range. And the results? Since the rebranding, the company’s barrel sales have doubled (20% year on year), a full year ahead of business projections, in a market which is otherwise in decline.
Is it time to recognise that investing in design (especially in an economic downtown) is not an extravagant luxury but a competitive necessity?
A strong brand will help you win more sales and keep more customers, so spend time on a health check:
1. Is my brand position strong?
Think about what makes your brand unique. How does your brand stack up now and in the future? Why should people care? What your brand stood for in the past may just be that, so have a look at what your competition offers, how they operate and what they do, as well as wider influences and trends.
2. Is my brand clear?
If you are clear about what you stand for and what makes your brand unique, are you clearly communicating it to customers? Be careful of jargon and complicated wording, and be single-minded too – a list of 5 or 6 messages will just lead to confusion, leave the detail for later once you have attention.
3. Does my brand look good?
How current is your look? Think across all your activity, from the logo and identity, to your web site and promotional materials. Are layouts clear? Is your imagery current and clear? Are there elements of consistency? Do fonts work together or look a mess. Brands that look current and relevant feel looked after and worthy of attention, so customers will feel you’ll pay the same attention to them.
4. Does my brand sound good?
All flash looks with not much to say? Ouch. Supporting your central brand promise by what you say and how you behave is critical. Think about how you and your people talk about, sell and service your brand – attention-grabbing looks might get you over a hurdle, but people soon wise up to brands that can’t deliver a promise.
5. Am I my only brand supporter?
Think about who talks about your brand, and where. Is it as much as it used to be? Word of mouth, recommendations, testimonials, social media and news stories will prove it has fans. Prove your brand is worth a look, and maximize every opportunity.
If you’re feeling uncomfortable about two or more of these then it’s time to spend time paying closer attention.
Sponsorship, once a symbol of corporate excess, is now finding its place within the business world—especially in the digital sector, where sponsors know how to best maximise ROI from these channels. By its nature sponsorship creates ideal digital marketing opportunities. It has the flexibility to provide platforms for brands to create exclusive content and online experiences as well as being able to engage directly with their audience.
Marketers are desperately searching for new and economical avenues to create stronger relationships between their brands and target audiences. One avenue that’s resurgent is sponsorship, which is proving a powerful way to engage with consumers while cost-effectively growing the business at the same time – a win-win situation for all involved.
For example Silverpop, a U.S.-based organisation that provides worldwide Web-based solutions, signed up to exclusively sponsor the 2010 DMA Digital Tracking Study. This partnership has provided Silverpop with a sought-after tool to reach out to the top marketing professionals in the UK, a market that they are developing. Additionally, this has helped the DMA to provide the latest research to its members.
Although partnerships are not a new theory, strategic business sponsorships can be new territory. However, providing they fit, they can be immensely successful. As digital marketers are usually first on the starting block I anticipate this trend will continue to grow across other sectors for those companies looking for more cost-effective and engaged marketing.
If you aren’t part of the digital sponsors who make up more than 50% of the total sponsors at the DMA, you might be wondering what you are missing.
So if it's not just your name and logo what is it? A brand will be made up of a collection of different perceptions that will have been built up after exposure to every aspect of your business. This can be a myriad of different things:
Any one person could be exposed to all or just one of these variables, that when mixed together form the brand in their mind. There are many ways you will be able to influence what the brand means to people, so you can steer its direction.
Left untouched and uncared for, without clear direction, your brand will take a course that will lead to fewer and fewer customers. So have a think about the list above – and see what sort of brand you’re presenting across the board. Is it all working to a common direction and goal? Is it the direction you want it to take? If not, you may just need to get clarity and some help setting the direction. It doesn’t take long and will be well worth the effort.
People like to understand what they're buying into, and see if it fits their values and what they're all about. It could be quality, cool, innovation, value, leadership, surprise, luxury, expertise - the list could go on and for any one brand incorporate an appropriate combination of these.
That core brand promise and positioning sits at the heart of everything. We call it brand glue, and it drives many different business decisions and activities including your marketing. It knits everything together and is something that needs careful thought, so it reflects your brand truthfully and as far as possible is different from your competition.
Think BMW aligning behind a premium driving experience, Nike making sportswear for winners and Disney uniting behind a goal to provide happiness and magic. Things wouldn't be quite so effective or memorably unique if they positioned themselves to make expensive cars, colourful footwear and somewhere to take the kids with a good line in mouse hats.
Similarly, confused thinking and lack of clarity can reflect in a confused customer. Imagine if Tesco wanted to state they were the leading supermarket in the country, the best. Let's also add in great service and low prices. Ooo but lets not forget it's an innovative supermarket too for good measure, and the fact that they're pretty keen on the environment. Far easier to remember they want to do everything they can to help you with your shopping down to the tiniest little detail. Everything else is just features.
A well looked after brand will eventually become clearly understood and familiar, as well as something that customers are willing to spend their money on. That’s good brand positioning.
You may have heard or read that a cash machine in the East end of London is to offer those making hole in the wall cash withdrawals the opportunity to select between the English language and Cockney English. This regional dialect cash machine has caused quite the stir in PR terms-the company who license the machine and service etc will stand to not only raise their own company profile, but see an increased use of the machine through the sheer novelty of being able to take out a 'Lady Godiva' from the 'Sausage & Mash' machine. But what more could it offer for small firms?
The added benefit of increased use of the cash machine could also be converted into serious revenue generation for companies who advertise on the back of the ATM receipts and advice slips which are issued. A simple idea which can be adopted by many small firms be they offering products or services. If it isn’t an affordable option for a solitary business, it could be useful for a small number of businesses to join together in a coordinated campaign within a town.
More recently, ATM tie-in campaigns have seen special offers appearing on advice slips close to payday - the thinking being that it is the time of the month when you are more likely to monitor finances at cash points and therefore there is an increased potential for exposure to customers who are examining their balances and printed mini-statements.
Do you think the three month trial of the London cash machine will prove a success or is it purely a gimmick that sustains slow news day column inches, pub chatter and the like? I think it highlights perfectly the local level creative ideas that can be adopted by small businesses. Advertising campaigns where your business name appears on the back of another local shop’s receipts or car park ‘Pay & Display’ tickets is a great way of bringing your message to the attention of potential customers.