April 15, 2009
Advertisers Tout Stability
Allstate was founded during the Great Depression
and survived. Post Shredded Wheat can trace its roots back to 1892. Lowe’s
has been around for over 60 years. The question is, do consumers care?
The above brands and others have fallen back
on touting their longevity in an attempt to give them an air of stability
in a period where consumers are questioning the survival prospects of a
wide variety of brands and retail banners.
"It’s not going to have an effect on
consumers making a purchase decision, but in these times, you want to put
your best face forward as people look at companies that are going out of
business," Walter Guarino, a marketing professor
at Seton Hall University, told USA Today.
"It’s image building. My guess is you will see more of it."
Not everyone is sure that recounting a brand’s
history is the right story even with the uncertainty that many consumers
are feeling.
Robert Pasikoff,
president of Brand Keys, told USA Today,
"People are looking for things that are up to date. There’s no good
way to say, ‘We’ve been doing this for 150 years.’ Heritage is fine, but
people are not buying Coach because it is old."
Discussion Questions: What are your thoughts
on the effectiveness (or not) of ads that discuss a brand’s heritage?
Are there particular ads that you can point to that demonstrate your
point?
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Recent Discussions
Discussion Questions
Poll
Indicating your company’s heritage is a good way to point out that you have been through tough times before and survived. I agree that no one is likely to make their entire purchase decision based on your heritage, but people do want to do business with companies who will be around in the future as seen by the rhetoric surrounding the potential Chapter 11 filing for General Motors. I agree that it it is more brand than product/service specific and should be used as part of an overall campaign that includes both elements.
Many consumers who are feeling uncertain are seeking some level of authenticity and trust. Brand campaigns that can deliver on these values can provide reassurance to consumers and help restore the overall measure of confidence we need.
Warren Buffet succinctly said it takes 5 minutes for consumers to get to “fear” and 5 MONTHS for them to get back to confidence. Economic recovery depends on confidence. I agree that we will see more of this kind of advertising and that it will be a subtle yet important part of our path to the new normal.
The story of a brand’s heritage is often effective for advertising but only if the story is believable. A couple of examples where maybe it’s not believable:
a) Consumers will reject the notion if until now they never heard of the brand.
b) If the industry is associated with a current negative perception, i.e., banks, insurance, stock firms, etc., then the consumer might not buy into Norman Rockwell picture being presented.
c) Some consumers are informed enough to realize that a certain “brand” is owned by an entirely different company than it was in the past, which is being touted as its ‘heritage’. Therefore, the history becomes irrelevant.
Time marches on. The past is past. The river continues to flow. Brands, like river boats, can sink into perceptive decay. More youthful customers aren’t as concerned with great heritages since they were not involved. They focus on their contemporary perceptions.
What to do? Tell today’s customers what you have to sell, tell them why it is better for their lives today, price it competitively and then tell them what you have told them since they can have short memories.
Sorry, but this conjurs up an image of old guys on a porch swing reminiscing about their exploits. Who really cares? Well, they do and maybe their grandkids, for a while. Then they’ll tweet their own buddies and be off.
This depends entirely on your business. Insurance companies have done this type of advertising since the beginning of time — as well they should. Longevity and stability are key. For Post, nostalgia seems a far more appropriate message than longevity (and even that is tough to sell). For most retailers, why would consumers even care about longevity? No matter how hard retailer try to build relationships with customers, retail sales will always be fundamentally transactional, in a way that banking or insurance is not. What’s in it for consumers to deal with an old retail company?
Usually I’m the cynic. Today I’m not. I believe that companies such as Allstate and Lowe’s can benefit from touting their longevity. Post’s Shredded Wheat, not so much.
Allstate customers want to know that if they need to submit a claim, Allstate will be able to honor it. If Allstate has been around since the Depression, it sends a “we have your back” message to the prospect. This is crucial for insurance companies.
The “been around a long time” equity is less powerful for Lowe’s. However, consumers with Lowe’s in their consideration set will be influenced by their ability to stay in business through hard times. It makes Lowe’s look smart, hence their selection of quality products, good service, etc. is that much more believable as well. Consumers worry about buying certain products, such as electronics and bathroom supplies, etc. from companies that might not be there for future maintenance or returns.
I’m definitely for leveraging the equity that comes from being around for a long time. But am I preaching to the converted when I say the message has to be fine tuned and executed in a way that will resonate with the consumer? It’s a risk worthy of marketing research.
Brand heritage is so important in today’s shaky world. Evergreen brands feel trustworthy in today’s uncertainty. However, not all brands can pull it off. And not all categories need that trust-building. For example, in toys, following the scare of lead in Chinese products, evergreen brands like LEGO and Crayola benefited. The same should hold for Allstate in today’s AIG world. Post Cereals, while a great longtime favorite in my Grape Nuts household, probably doesn’t need the same reinforcement and it may not be a differentiator vs. other old time cereals brands.
Longevity is an attribute that adds little value. For retail brands, it might prompt consideration or even a visit, but expectations must be met or exceeded.
I think the move to tout the past comes from a desperate brand. We all know plenty of retail brands that have been operating for many years and many of them are not doing so well. Pity, but longevity has nothing to do with relevance.
Sorry geezers, but retail ain’t for sissies!
I’m in the market to buy a new car before Memorial Day. General Motors has been around a long time, but its current situation isn’t what makes me unlikely to buy a new Chevrolet. It’s the memory of my first car, a Vega that was junked for scrap at just six years. Longevity cuts both ways.
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Indicating your company’s heritage is a good way to point out that you have been through tough times before and survived. I agree that no one is likely to make their entire purchase decision based on your heritage, but people do want to do business with companies who will be around in the future as seen by the rhetoric surrounding the potential Chapter 11 filing for General Motors. I agree that it it is more brand than product/service specific and should be used as part of an overall campaign that includes both elements.
Many consumers who are feeling uncertain are seeking some level of authenticity and trust. Brand campaigns that can deliver on these values can provide reassurance to consumers and help restore the overall measure of confidence we need.
Warren Buffet succinctly said it takes 5 minutes for consumers to get to “fear” and 5 MONTHS for them to get back to confidence. Economic recovery depends on confidence. I agree that we will see more of this kind of advertising and that it will be a subtle yet important part of our path to the new normal.
The story of a brand’s heritage is often effective for advertising but only if the story is believable. A couple of examples where maybe it’s not believable:
a) Consumers will reject the notion if until now they never heard of the brand.
b) If the industry is associated with a current negative perception, i.e., banks, insurance, stock firms, etc., then the consumer might not buy into Norman Rockwell picture being presented.
c) Some consumers are informed enough to realize that a certain “brand” is owned by an entirely different company than it was in the past, which is being touted as its ‘heritage’. Therefore, the history becomes irrelevant.
Time marches on. The past is past. The river continues to flow. Brands, like river boats, can sink into perceptive decay. More youthful customers aren’t as concerned with great heritages since they were not involved. They focus on their contemporary perceptions.
What to do? Tell today’s customers what you have to sell, tell them why it is better for their lives today, price it competitively and then tell them what you have told them since they can have short memories.
Sorry, but this conjurs up an image of old guys on a porch swing reminiscing about their exploits. Who really cares? Well, they do and maybe their grandkids, for a while. Then they’ll tweet their own buddies and be off.
This depends entirely on your business. Insurance companies have done this type of advertising since the beginning of time — as well they should. Longevity and stability are key. For Post, nostalgia seems a far more appropriate message than longevity (and even that is tough to sell). For most retailers, why would consumers even care about longevity? No matter how hard retailer try to build relationships with customers, retail sales will always be fundamentally transactional, in a way that banking or insurance is not. What’s in it for consumers to deal with an old retail company?
Usually I’m the cynic. Today I’m not. I believe that companies such as Allstate and Lowe’s can benefit from touting their longevity. Post’s Shredded Wheat, not so much.
Allstate customers want to know that if they need to submit a claim, Allstate will be able to honor it. If Allstate has been around since the Depression, it sends a “we have your back” message to the prospect. This is crucial for insurance companies.
The “been around a long time” equity is less powerful for Lowe’s. However, consumers with Lowe’s in their consideration set will be influenced by their ability to stay in business through hard times. It makes Lowe’s look smart, hence their selection of quality products, good service, etc. is that much more believable as well. Consumers worry about buying certain products, such as electronics and bathroom supplies, etc. from companies that might not be there for future maintenance or returns.
I’m definitely for leveraging the equity that comes from being around for a long time. But am I preaching to the converted when I say the message has to be fine tuned and executed in a way that will resonate with the consumer? It’s a risk worthy of marketing research.
Brand heritage is so important in today’s shaky world. Evergreen brands feel trustworthy in today’s uncertainty. However, not all brands can pull it off. And not all categories need that trust-building. For example, in toys, following the scare of lead in Chinese products, evergreen brands like LEGO and Crayola benefited. The same should hold for Allstate in today’s AIG world. Post Cereals, while a great longtime favorite in my Grape Nuts household, probably doesn’t need the same reinforcement and it may not be a differentiator vs. other old time cereals brands.
Longevity is an attribute that adds little value. For retail brands, it might prompt consideration or even a visit, but expectations must be met or exceeded.
I think the move to tout the past comes from a desperate brand. We all know plenty of retail brands that have been operating for many years and many of them are not doing so well. Pity, but longevity has nothing to do with relevance.
Sorry geezers, but retail ain’t for sissies!
I’m in the market to buy a new car before Memorial Day. General Motors has been around a long time, but its current situation isn’t what makes me unlikely to buy a new Chevrolet. It’s the memory of my first car, a Vega that was junked for scrap at just six years. Longevity cuts both ways.