29 June 2020

Facebook don’t be evil. It doesn’t suit anyone.

“We build technologies to give people the power to connect with friends and family, find communities and grow businesses.” from the FACEBOOK purpose statement.
One part of Facebook’s brand positioning (or is it Mark Zuckerberg’s?) is built around its desire to not be “arbiters of truth” and this position entailing non-censorship of political, violent or racist posts on its platform, is starting to look decidedly precarious. Not only does it reflect the company’s moral ambiguity but its especially exposed when it already imposes what it calls “Community Standards” and, for example, censors nude images in artworks on its platform. Thus the right to be somehow immune from the effects of purposeful and sometimes improper use of its technology to incite or malign becomes dangerous to defend.
Already this week large corporate business such as big advertising spender Verizon are pulling advertising from the platform, not just for a month, but are permanently pausing their activity until they say Faceboook ‘can create an acceptable solution that makes us comfortable". In 2019 Verizon was estimated to have spent $2.64 billion across all media (see Verizon advertising spend) so its likely it will have some impact. This comes alongside an already announced month long advertising pauses from Ben & Jerry’s USA, North Face and Patagonia.
While it’s clear this is not going to make a big dent in the $4.9b revenues it reported in the first quarter of this year, its brand and brand reputation are likely to face further damage until Zuckerberg starts to align the business closer to those of others in the tech sector like Twitter and Google who have made better effort.
The problem with Facebook is that its failure to stamp out racism and violent posts on the platform doesn’t equate with very principled brand values - “be bold; focus on impact; move fast; be open; and build social value”. As an enabler brand, it sees its role as a technology creator and facilitator and thus a distant hands-off role with any ill use of its technology (like most brands in the sector). All of this starts to sound both morally ambiguous and dangerous as it continues to allow comment and images that flout social norms. The fact is that Facebook, in enabling this kind of misusage of its technology, has by its very nature become a publisher and thus an arbiter of morality (and that is just another truth), whether it likes it or not. Its 28 pages of “Community Standards” not only proves its acceptance of this role but it also continues to sustain the continued precariousness of such an argument.
Even as last year’s Facebook rebrand seemed to resolve some structural issues around the role of the parent company, it failed to address the dissonance in its brand values and now it finds its revenue base wanting, as Verizon does, it to act more judiciously. On Friday 26 June Facebook reportedly acknowledged what it describes as “trust deficit” in a call to advertisers, its basic inaction might soon translate to action once some significant threats are made to its $70b annual ad revenues by larger corporates around the world. In the end its not something Zuckerberg can tough out forever.

On Friday 26 June Zuckerberg announced several steps Facebook would take to eliminate hateful content in ads, stamp out false claims leading to the 2020 US elections, and make progress on racial justice. This was after Facebook CocaCola and Starbucks joined Unilever in the social media boycott and Facebook's share price fell 7%. He added Facebook would hide or block content considered hateful or that could harm voting, with no exception for politicians, as Twitter has done. 

22 June 2020

The Death of HBO: "The king is dead, long live the king"

One of the problems for the current spate of repositioning and rebranding by digital streaming companies or any broadcast company for that matter, is getting to grips with constantly shifting technology and the expectations of customers and audiences on what their brand should deliver.
Most strategists insist brands should be simple and simply expressed, as do most customers but not so the heads of WarnerMedia. Earlier this month it announced it would be retiring its HBO Go service and then subsequently launched its new all-you-can-eat app based streaming brand HBO Max.
Here’s how WarnerMedia put it: the HBO Now brand would be folded into the HBO app and current HBO Now subscribers would still be able to continue accessing HBO and also HBO Max through a rebranded HBO app on the same platforms they currently use to view HBO Now. The company said they had differentiated HBO Max and HBO, by noting that HBO Max is an app that includes all of HBO together but with additional WarnerMedia content offerings. So why isn’t it called Warners? The HBO app will be a standalone streaming platform for the HBO service. Get it? No.
The problem for me as that WarnerMedia is treating both HBO and HBO Max as separate brands which as they are presented they are not and for many customers, they can’t see why they are different. For the mot part their visual and name assets are shared but their offers are, by their own admission, differently positioned though HBO is inclusive of Max. Even in their press releases WarnerMedia says that all of HBO’s content will be available on HBO Max, so how is that not confusing?
So if HBO is the brand, why is HBO Max not being treated as a true sub-brand with a differentiated positioning, offer and audience or is looking for one? There doesn’t seem to be a whole lot of thinking around updating each of the brand’s specific values and propositions. HBO has a lot of adult content, yet HBO Max is oriented towards family viewing but with parental controls of the adult content, much like Netflix. You get the picture or you do not.
It’s not particularly apparent what problem is being solved with the creation of this sub-brand. Wouldn’t WarnerMedia saved a whole lot of money and simplified it’s HBO brand platform by branding the entire offer HBO?
The next quarterly update on subscription numbers and value from WarnerMedia might provide some glimpse into what seems to be an apparent strategy fail.

15 June 2020

Apple's brand strategy is stuck somewhere in 2011.

Ask anyone what they think Apple’s brand strategy is and you’ll mostly get an opinion that’s stuck somewhere between 1987–2011 and they really won’t be wrong. The reason — the brand strategy has barely moved on.

Gone are the days of Apple’s when dominant marketing savvy CEO in Steve Jobs who, alongside visionary designer Johnny Ive, could articulate a clear positioning via forward thinking human centred design. Current CEO Tim Cook’s Apple brand strategy appears MIA, uncentered and confused: what is it that Apple stands for these days — fun? humanity? simplicity? or as a friend described it, “reassuringly expensive”.

While Apple might be one of the world’s most valuable brands but this has been largely created on the back of a single product — the iPhone and by switching from product centredness to service led — Apple TV and Apple Music. Its reliance on what appears to be a legacy strategy has seen its brand positioning, particularly around design, largely abrogated to competitors like Google, Huawei and Samsung.

Just this week Apple released macOS Catalina, the new version of its standalone Mac operating system, which saw it dumping its nearly 20 year old iTunes sub-brand in favour of three branded apps: Apple Music, Apple Podcasts, and Apple TV. This at least makes some sense but there’s no longer any distinction between it’s app naming, its subscription service, its non-subscription music integration as well as its peripherals eg. Apple TV is both a service and device. And then there’s its Apple Match service.

Are we to assume that they are always going to be one and the same or will products and service delivery be a mash? Someone needs to get in there and give them decent nomenclature guidance.

And given all this, Apple no longer appears to have a head of brand. They haven’t had one since 2017 and perhaps that explains it.

Find out more in the latest edition of BRANDNEWs, a global newsletter to help you find out what brands are around the world are launching, who's failing and what brabd strategy is making an impact.



05 June 2020

DIFFUSION launches BrandNews

DIFFUSION has just launched BRANDNEWs, a newsletter to help you find out what brands around the world are launching or have launched, who’s failing and what brand strategy is making an impact. 
BRANDNEWs is published weekly from 5 June 2020 and will provide category listings of newly launched and failing brands as well as some analysis about what brands are doing with their strategy.
The first 500 subscribers will get free access til end of June and thereafter there will be a small monthly or annual subscription charge via SubStack for all.
If you’re in marketing, branding, advertising, markets and research you’ll find BRANDNEWs indispensible.
Contributions are welcome.
Here’s some samples of what you might get:
BRANDNEW
Retail Fashion
  1. Gauge81 was founded in 2019 is (pronounced GO-SH eighty-one) is an Amsterdam-based label that blurs the line between casual and evening wear. Gauge81
  2. Kirin meaning giraffe in Korean) is a streetwear label founded by Korean DJ, fashion icon and designer Peggy Gou. The line first made its debut at Paris Fashion Week 2019.
BRANDFAIL
Passenger Car Rental and Hiring
Hertz USA, whose ownership also includes the Dollar and Thrifty brands, has filed for Chapter11 Bankruptcy protection. It blames the collapsing used car market in the US. 23 May 2020. Hertz
Retail Trade: Department Stores
Target/Kmart More than 160 Target stores in Australia are closing down and being rebranded as Kmart stores. 23 May 2020. Target to Kmart
BRANDstrategy
Tesla
The Tesla brand strategy is a minimalist futuristic green primarily automotive brand with a bare bones approach to marketing by founder and chairman Elon Musk using the marque as a platform for promotion including ferrying astronauts to for SpaceX, the world’s first private space flight on 1 June 2020 to a retail store that used to offer free rides in downtown Manhattan. Tesla has largely eschewed big budget advertising and focused instead on social media (Musk has 35 million personal followers), visual iconography via the (super)charging stations, distinctive livery and aural branding across the entire Tesla range. Even the launch of the Tesla Cybertruck in late 2019, despite controversy generated at the event, still didn’t dim the enthusiasm for the brand. Musk’s brand strategy is to build Tesla via a whole of brand approach, tying product development together with the green integrity of its electric battery to create a closed ecosphere around the brand.