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How Brands Use Rituals to Meaningfully Engage Their Customers

If your target audience lacks engagement or community, ritual can answer that need by fulfilling your customers’ natural desire for routine and belonging. Embracing this type of behavior modification will allow you to not only capture their attention but retain it as well.

Ritual comes from an inherent human desire; we’re creatures of habit. We naturally look to routines for stability and simplicity. From an anthropological perspective, rituals are an integral part of the human species. While habits and routines are typically naturally-derived over time, rituals follow patterns of behavior developed by an external source (like a brand or an organization).

Primitive images of sacred, mystical, or religious rituals often come to mind when thinking about this concept. But more “modern” rituals can be just as powerful. Organizations use ritual to build loyalty, conjure a perception of exclusivity or secrecy, and naturally intertwine with the everyday behavior of its members. Rituals are reassuring, giving us a sense of security and belonging.

Brands tap into the power of ritual by leveraging simple behaviors they recognize in their customers. Involving customers physically in the brand experience helps build loyalty.

While marketers may salivate at the thought of a ritual that cements the brand into the cultural zeitgeist, know that it’s really hard to pull off. Nabisco didn’t have Instagram to show them that people were unscrewing and dunking Oreos; the ritual developed organically among the audience over time. We have faster, deeper-reaching tools into the psychology of our consumers, so why is it harder than ever to leverage these rituals?

If you’re eager to identify and elevate a ritual among your brand’s devotees, use our 20 questions to guide you on where to look for them and how to capitalize on them. To discover those 20 questions, please complete the short form below:

Which Brands Do Ritual Well

The following brands harness ritual in powerful and memorable ways that can be adapted to increase loyalty and engagement for your brand.

Corona

Corona and lime is a terrific example of how a brand can use ritual to elicit emotion. The smell of the lime evokes the tropical essence of the beach, reminding consumers to kick back and relax. Even the action of pushing that thin green lime into the golden yellow liquid screams sunshine.

This ritual transcends time, language, and culture. Without speaking a word, consumers acknowledge the “right” way to drink a Corona. This pseudo mutual agreement makes us all feel like “insiders.”

Kit-Kat

Think about it – you have a very particular way you eat a Kit-Kat bar. Think about it: You have a very particular way you eat a Kit-Kat bar. Why? Why do we feel so strongly about the correct or incorrect way to eat one of these candy bars? The brand has created a sacred consumption ritual reinforced by catchy ad jingles and clever marketing. They leveraged a simple, inherent behavior they recognized in their customers and made it into a memorable ritual known by all. It’s woven into the collective consciousness of the world — something few brands can lay claim to.

Oreo

This brand utilizes emotional storytelling as well. Their brand ritual of twisting the top and dipping the cookie into milk could be an individual ritual, but they have shifted the narrative to make the consumption experience an event in itself. Their advertising shows dessert time as a time to connect with family and the ritual experience as a bonding moment between individuals.

It also leans into consumption behavior that already exists. Marketers coined the “twist, lick, dunk,” but customers were already doing this before the ads came on television. The brand harnessed the power of a pre-existing behavior and ritualized it — powerfully bridging the connection between the consumption experience and the brand itself.

Starbucks

Starbucks is the ultimate example of brand ritual playing into human nature. The brand is rooted in emotion and behavior. The brand took the European ritual of drinking coffee and “Americanized” it. Until the conception of the “Third Place,” coffee was always an individual experience. The goal of the “Third Place” was to give consumers somewhere to go besides work and home. The brand created a place for people to gather, chat, read, listen to music, study, and oh, by the way, drink coffee. This collective ritual changed the game.

Not only did Starbucks harness the social routine of the “Third Place,” they also tapped into our desire for individualized rituals. Their drink customization system made customers feel important and in control. In personalizing their experience, they felt involved in the brand in a new way.

All in all, brands embrace human natures and behaviors — giving them purpose and meaning through ritual. Enhancing the brand experience through ritual involves customers, weaves the brand naturally into their lives, and builds an emotional connection.

In order to create a successful brand ritual, you must:

  1. Modify or take advantage of an existing behavior.
  2. Tell a story to elicit emotional connections.
  3. Physically involve the customer through action, smell, movement, etc.
  4. Personalize the experience.
  5. Keep it simple and easy to replicate.
  6. Be natural; don’t force it.

Adapt these lessons for your brand to powerfully engage your audience and foster loyal relationships.

And if you’re interested in a deeper dive into how you can identify and leverage consumer rituals around your brand, access our 20 Questions: Brands & Rituals worksheet.

David Lemley

David was two decades into a design career with a wall full of shiny awards and a portfolio of clients including Nordstrom, Starbucks, Nintendo, and REI. His rocket trajectory veered when his oldest child faced a health challenge of indeterminate origin. Hundreds of research hours later, David identified food allergy as the issue and convinced skeptical medical professionals caring for his child. Since that experience, David and Retail Voodoo have been on a mission to create a cleaner, healthier, more sustainable food system for all.

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Put Your Morals Where Your Mouth Is

Contribution. There’s a big difference between a cause and a claim. You can make a claim, but you have to live a cause.

In part one of this article, I discussed the concepts of branded ritual as tools for marketers who are tasked with taking a brand stand they can uniquely own. Then, in part two, I demonstrated the value of understanding your archetype to build brand strategy. In part three we will explore the importance of contribution as a differentiating brand strategy and powerful tool in self-selection.

With declining trust in traditional institutions, people today are increasingly using brands and consumption to express their identity and signal their values. People come together under a shared set of values or emotions.

People use brands as badges, but more importantly, most people connect with brands in ways that they traditionally would have with their church, hometown, or alma mater. The brands people choose are important signals to their identities but are also components of their shared activities and social lives.

It seems rather simple (albeit heavy-handed religious zealotry) to elevate one’s value system to a manifesto. The benefits are often underestimated by traditional marketers:

  • Attract and converse with people that are moved by your bold declarations.
  • Repel those who disagree or are unmoved by your position.

By leading many brave organizations through the process (and then finally having the nerve to follow through for my own organization) I have learned that you will know you are on the right path when it looks like this.

Deep and painful soul-searching in the quest for more relevance. This leads to…

Doubt and fear that I may have taken the wormhole that is the equivalent to peeing my pants in a dark suit –feels warm for awhile but nobody notices.

Good news: Fear almost instantly gives way to the new opportunities and future I see by having a self-selecting clientele.

Clarity on new business opportunities, product, and services that I can and should add to support the way I am helping make a difference for people.

Effective marketing because I know who I am speaking to, who I have excommunicated (which is equally important) as well as those who have left the church because we are no longer ideologically compatible.

Why don’t more brand managers do this?

Based on personal witness validated from my peers, I think it comes down to lack.

Lack of authority. Not many marketers are allowed to redirect the soul of the organization to match their own values. It’s better and possible if what you believe aligns with the founder of your organization. That said, I have stood inside the walls of P&G and witnessed miracles based upon values (Million-ways-of-motherhood and Unicef).

Lack of originality. I’ve seen a lot of “me too” in brands who tell us they are satisfied with their postioning. This is usually due to having a cookie cutter mentality and in some cases peeking too frequently at our neighbor’s paper. The truth is that if your causes and beliefs are similar to others it still takes vision to have your translation show up as original. The key lies deeply rooted in the soul of your organization. Honesty and persistency will manifest themselves in unique and meaningful ways.

Lack of passion. Many organizations put so much short term performance pressure on marketers that they inadvertently suck the life out of their people. These folks start to believe they can no longer afford their own values. Over time this creates an unhealthy culture that can degrade even the strongest brands.

Making the case for contribution as brand strategy.

The spiritual case for contribution

People are hungry and looking for meaning in our increasingly detached world. Obvious examples, including our clients PCC, REI and KIND, operate this way instinctively. They never had to make the decision to market and brand build around a higher calling because their battle cry is inherent to their business model.

But even those of us who are working with live ammo and balancing the pressure of daily performance should take heart. Based on my work with many leaders at times of transition, I can tell you that when they consider their legacy (personally and that of their brand during their watch), not a single leader cites economic growth of the business as the top goal. In fact, every one of them talked to me about their contribution to other people‘s lives.

The cultural case for contribution

Two words. Employee engagement. People want to work somewhere where the employees are pumped about their mission. Contribution focused businesses by far have mission statements that go way beyond the typical check list of why a mission statement exists.

Leading mangement guru, David Maister put it like this: “It’s about the wow factor.” People are looking to belong to something and are looking for employment that contributes to their lives far more deeply than the paycheck ever could. I took this to heart as our own manifesto demonstrates.

The financial case for contribution

Today many companies are making efforts to put mindful and sustainable business practices into action. Yet despite daily stories of consumer activism, many still ask the important question: Does caring convert into action when it comes down to a buying decision? New data from Google and Nielsen find that the answer is yes for a growing number of consumers around the world.

Being a meaningful brand is not only good for your market and the community at large, it’s also good for your bottom line. In addition to outperforming their competitors in traditional brand measures such as esteem, differentiation and awareness, the top 20% of brands also dramatically outperform financial leaders across a spectrum of industries. In fact, according to Meaningful Brands those brands ranked as Meaningful enjoy financial results that exceed those of top hedge funds. These are financial advantages that are durable and sustainable.

So how does a brand leader get to meaning?

Read. A lot. Take time to reflect on what the world would be like if your brand didn’t exist. Keeping brainstorming until the answer arrives. If you need help, Tony Robbins is the Freud of our generation.

People wouldn’t care if 92% of brands disappeared.

A new study from Meaningful Brands, shows that in Europe and the U.S., people would not care if 92% of brands disappeared. Profit is not bad. In fact, for business, it is kind of like oxygen is for humans. But humans are the life force of business. And not many people in today’s workforce are inspired to come to work for a corporation that could give a rip about its people.

As you think about how to transform into one of the 8% of brands people would miss or care about, I share an example of how not to make it. I recently sat in a coffee chain that was just purchased by new owners and overheard the leadership saying something to the effect of not giving a fly-f about the baristas.

Let’s peek inside the café and see what is going on.

  • Everyone hates everyone.
  • There are only 5 customers. All old white guys getting refills of drip.
  • Nobody buys the fake Italian espresso or the hipster inspired window graphics.
  • The pastry case feels day old even though I witnessed today’s delivery.
  • The actual coffee knowledge of the folks working the counter is zilch.

Meanwhile down the block in all 5 directions, Starbucks (Mission: Nurture the world one cup at a time) and 2 indie coffee houses are jammed to the point that getting a table is almost aerobic.

Beyond obvious differences why is everyone else winning? They have taken the time and steps to understand why they exist outside of making money.

3 ways to fast-track the purpose conversation in your organization.

1. Stand for something that would be missed if/when it disappears.

Think Patagonia’s take on environmentalism and meaningful capitalism. Don’t buy this shirt.

2. Right a wrong.

Badge brand owners have to be able to stand up and fight—against wrong-headed ideas, fads and ideas that don’t align with your brand. The most meanigful of these take on human-centered problems.

3. Focus not on what you make, but on what you make happen.

Do something counter intuitive to business: give. Your brand must get in touch with our twenty-first century definition of value: “What I get must be greater than what I give.”

Chipotle thrives by taking this approach. They didn’t let their size, their corporate roots or their competition dictate who they want to be in the world or what they want to contribute. And as a result, they are seen as leading the quest for wholesome and sustainable food.

Good for people. Good for the world. Good for business.

People. Purpose. Profits. However you say it, meaning is the new black and the winning brands of the future have triple bottom lines. The degree to which a brand’s purpose influences purchases and loyalty is jaw dropping. Contribution is quickly becoming table stakes for long-term market leadership. But for those brands that have defined their higher purpose, who view customers as people and partners in change, the future is bright.

Tell me again, why does your brand exist?

David Lemley

David was two decades into a design career with a wall full of shiny awards and a portfolio of clients including Nordstrom, Starbucks, Nintendo, and REI. His rocket trajectory veered when his oldest child faced a health challenge of indeterminate origin. Hundreds of research hours later, David identified food allergy as the issue and convinced skeptical medical professionals caring for his child. Since that experience, David and Retail Voodoo have been on a mission to create a cleaner, healthier, more sustainable food system for all.

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Using Values to Differentiate & Define Your Brand

Brand values impact relationships and reputation – two key business assets that are earned (rather than bought). When the marketplace is cluttered and consumers have tiny attention spans, brands must bring something more valuable to customers than their product or service. They must connect with consumers through shared principles.

Ethos can best be described as beliefs and behaviors that advance an ideology. Brands, just like people, have values they hold near and dear to their hearts. These principles form the reasons that brands exist.

In our profit-driven world, many brands consider emulating values as an afterthought. It’s easy for leaders to have tunnel vision focusing on the bottom line instead of turning their eyes internally to reflect on the company’s original mission. But just as the marketplace changes, the consumer changes. The individuals with the highest spending power care less about the “what” or the “how” and more on the “why.”

Brand values influence two important business assets:

1. Relationships build loyal customers and organic brand ambassadors

Relationships are built on trust, and trust is built on delivering on your promise. In our overcrowded marketplace, points of difference that are function- and future-based are no longer sustainable. Consumers today are tuning out marketing and tuning into those brands that represent shared values.

2. Reputation forms the basis of an enduring brand legacy

Reputation revolves around respect and legacy – both are earned, rather than bought. This highlights the importance of companies putting values first rather than profits. Since many companies fail to do this, a brand that excels at earning respect and creating a meaningful legacy will earn a stellar reputation.

Clifford Geertz, arguably the godfather of cultural anthropology, put it this way: Ethos and worldview describe how cultures create a seamless, unified system. The ethos, which is an understanding of how we should act in the world, is supported by the worldview, which is our picture of how the world really is, and vice versa.

In a sense, ethos and worldview are what differentiate one culture from another, and it is the culture that traditionally gives individuals their definition of self, who they are, what they believe, and how they should act.

Let’s take REI for an example of an ethos-driven company. Through equipping customers (and employees) for adventure, REI promotes a love of the outdoors and stewardship of nature. REI is an employee-centric operation meaning they attribute the success of their company to their workers and offer incentives for them to live out the brand promise of engaging with nature. These values translate into happy and passionate employees, which then permeates every aspect of their business to create a strong, loyal customer base.

When employees live out brand values, those principles naturally translate to the right customers.

Patagonia thrives by wearing its ethos on its sleeve as well. The company’s Common Threads initiative converted people into customers based on the shared desire to do more with less. Leading with “reduce, repair, reuse, recycle, reimagine,” they speak to consumers’ interest in sustainability and doing good for the planet. It is aspirational and inspirational. They even launched an e-commerce recycled clothing site called Worn Wear to encourage a “sharing is caring” mentality. Not only does this subtly remind consumers that their high-quality products last a lifetime and commitment to sustainability, but it also encourages storytelling around the adventures the brand equipped.

Ethos-based brands value their purpose more than their profits. They eliminate a sales-first culture and focus on things money can’t buy. They live their convictions, rather than conform to the convictions of the marketplace.

Ethos-driven brands listen more, and market less. They elevate the quality of life for their cult followers.

Shared values form the basis for all relationships. Wherever we go in business, and in life, we bring our own values along. When others share our values, this becomes a powerful and attractive force to bind us closer together. Enlightened brand owners realize that in our busy days, most of us have little time for things and people that don’t really matter to us.

For brands to matter, the customer must believe the brand is bringing something more valuable to them than the money they spend.

David Lemley

David was two decades into a design career with a wall full of shiny awards and a portfolio of clients including Nordstrom, Starbucks, Nintendo, and REI. His rocket trajectory veered when his oldest child faced a health challenge of indeterminate origin. Hundreds of research hours later, David identified food allergy as the issue and convinced skeptical medical professionals caring for his child. Since that experience, David and Retail Voodoo have been on a mission to create a cleaner, healthier, more sustainable food system for all.

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Brand Purpose: The Key to a Cult Following

It’s no secret that everybody yearns to be a part of something greater than themselves, their loved ones and their work. But it does seem to be a secret to many brands.

So let us tell you: not only can brands do well by doing good; they can, in fact, create devoted, avid cults around them if they commit to a deeper mission or raison d’etre. People respond to brands that inspire, give back and work for more than profits.

Who doesn’t want to support brands that do good things within their communities or to the larger world community? Some brands that started small grew in a big way due to the quality of their product, their business practices, and their philanthropic bent. Don’t kid yourselves: all of these things matter.

For example, Ben & Jerry’s support of environmental and social causes is legendary; it goes to their earliest days and the heart of their brand. They also practice sustainability within their business and give back to the local community. The consistent quality of their product, and the innovative way in which they launch quirky new products are hallmarks of their brand. These are all of the ingredients in the secret sauce that keep a brand relevant… a brand that continues to grow and maintain a cult following.

Our friends and fellow Seattleites, PCC Natural Markets, support local and organic farming, embrace sustainability and work to establish standards of the highest quality for the food products that it offers to the community. PCC is also a major donor to the PCC Farmland Trust, a non-profit that seeks to preserve farmland and move it into organic production. The brand talks the talk and walks the walk.

It’s transparent and it’s authentic; a top priority if brands want to create a cult following. Note that PCC is also deeply committed to a cause that’s greater than doing business profitably. Even cooler: it’s set up on the co-op model with 10 stores and 52,000 members and counting, who have a stake in PCC Natural Markets. Nothing inspires a community like having direct ownership in a brand that has a larger mission.

Why B Corps Rock

We’ve always been fans of Benefit Corporations, better known as B Corps, because inherent in their brand DNA is the desire to do business at a higher level. Sure, they’re in business to turn a profit and that’s great because if they’re not profitable they’re not going to stick around for very long.

These are brands that show the value of “conscious capitalism”. They build sustainability into their business models. They support worthy local, national and worldwide causes. Many support Fair Trade initiatives and small producers locally, nationally and abroad, and in doing so help to create shared economic growth while taking better care of our planet. These kinds of initiatives resonate with consumers and employees. In a big way.

There are other benefits, too. B corps can lead new movements. They differentiate their brands from competitors and pretenders – the brands that talk in a big way but do little in reality, other than an occasional local donation to a worthy cause. B Corps also have a way of generating PR without having to do all of the grunt work themselves. And they attract and engage real talent; people who want to work for them and contribute in meaningful ways because of who they are.

There are many solid-performing B Corps aside from Ben & Jerry’s. Method, Patagonia, Etsy and Warby Parker are all rock stars within the B Corps constellation. Almost 1,000 companies, large and small, from across the globe are certified B Corps, and the movement continues to grow.

New Belgium Brewery in Fort Collins, Colorado is a new breed of B Corp. Founded in 1989 by Jeff Lebesch and his wife, Kim Jordan, they set out with a core mission of crafting world-class beers while being environmental stewards. The company states that they “Look for ways to be less wasteful, be more efficient, recycle and reuse”. Reducing waste and water usage while lowering energy costs are cornerstones of the brand. Employees and owners work together to give grants to organizations that support sustainable agriculture, environmental advocacy and water conservation, among other worthwhile causes.

To top it off, New Belgium Brewery became 100% employee-owned in 2012 after the company set up an ESOP or Employee Stock Ownership Program and is all about full transparency in its business dealings and financials. Quality and innovation are equally important. To reiterate: all of these things taken together are components of the cult brand value equation. And it’s proof that you don’t have to be the size of a major corporation to create a cult. Local and regional companies, small and mid-sized, can create their own rabid fan bases.

Corporate Karma

There’s no mystery as to why brands like these create enthusiastic cults around themselves, right?
Their uniqueness starts on the inside and draws attention and devotees from the outside, making these brands grow exponentially.

You know the adage: “It’s better to give than to receive”. Ironically, those who give the most tend to be gifted in a far more significant way. We call it corporate karma.

And, hey, if your brand is lacking the richness and core meaning that lead to creating a meaningful cult and greater value, no worries. It’s never too late to reinvigorate your brand with a deeper purpose and mission. If the guys at Unilever are reevaluating their business model and becoming more community-oriented, why aren’t you?

David Lemley

David was two decades into a design career with a wall full of shiny awards and a portfolio of clients including Nordstrom, Starbucks, Nintendo, and REI. His rocket trajectory veered when his oldest child faced a health challenge of indeterminate origin. Hundreds of research hours later, David identified food allergy as the issue and convinced skeptical medical professionals caring for his child. Since that experience, David and Retail Voodoo have been on a mission to create a cleaner, healthier, more sustainable food system for all.

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What’s Your Language Saying about your Brand?

If language builds and binds cultures, why shouldn’t it be used to build and bind cults around brands?

Think about the power of words. If I use specific words in a specific way, it builds an image in your mind. It paints a picture. It has meaning. Words tell stories and humankind responds to storytelling, as we all know, in an emotional way.

Now think about some of the world’s top brands. They know the secret of using the right kind of language to amplify who they are and what they’re all about.

That’s why it’s puzzling to see that so many brands aren’t effective communicators. If you’re going to use bland language, don’t be surprised when your target audience isn’t energized. When has lackluster, uninspiring language ever gotten people excited?

Another big no-no is misused language. You know: words that say one thing while the brand proves it’s something else in every action that it takes from the inside out—with its employees and with every customer facing aspect of its business. Look, nobody’s perfect and maybe we have a brand mission that’s tough to live up to 100% of the time, but misleading is never acceptable. Because then the brand is labeled as a fraud and avoided like the plague.

So moral of story: be selective about the words you use for your brands. And find the right ones and use them in the right context, too.

What about the grand majority of brands, the ones who aim to be compelling but cannot seem to supply the language? Well, brand language has to come from the creation of a unique, one-of-a-kind brand to make a meaningful impact. So let’s start there. And let’s have a real proposition to offer; one that can inspire. Then our words and story will fall into place.

Oh, so you have a commodity product line and there’s just no way for you to generate the kind of excitement we’re talking about? Think again.

Let’s talk about Johnny Cupcakes. What kind of cupcakes are Johnny’s? They’re not cupcakes at all. They’re T-shirts. T-shirts with cool art and wording on them. They happen to be sold in the brand’s own retail stores that happen to look like old, funky bakeries. They’re also sold online. And they’re packaged in bakery boxes.

A 19-year-old kid named Johnny Earle started up the brand in 2002. He had an idea, and a passion. He knew he could sell his T-shirts and he did; out of the trunk of his old, beat up ’89 Toyota Camry. Then he opened his first retail shop in 2004.

“When it came time to open a store, I really wanted it to be an unforgettable experience,” he said.

Some people just get branding in their bones, don’t they? And then more shops opened. And then Johnny got the idea to do some fun events and pop-up shops around the country.

It took a while but the way he used language, visuals and ideas to build a brand is pretty breathtaking. And you know what happened? Johnny Cupcakes developed a cult following around the country. By 2006, JC was getting all kinds of press—radio, TV, print—all about his brand. Free PR that has only fueled more interest in his brand. Wow—right?

“What blows my mind even more is that Johnny Cupcakes brand has been a case study in several branding and business books,” Earle is quoted as saying on his website. Maybe he’s surprised, but once you see his website and understand his vibe, you won’t be.

Not one to rest on his laurels, Earle is busy collaborating with a host of other brands: musicians, famous people and licensors to crank out more unique T-shirt designs.

As the icing on the cake, Johnny Cupcakes donates its time to community organizations in need and supports sports teams and other local groups in their hometown of Hull, Massachusetts as well as local charities. Plus: they donate T-shirts to fundraisers across the country.

Yep, we’ve always said it: the truly great brands are good corporate citizens.

So there you have it. Quirky brand, quirky brand owners and employees, cool tees. What’s not to love? Check out how to create and really rock a unique brand at johnnycupcakes.com. But remember: this language set is taken. Just use this to get inspired and go find your own.

David Lemley

David was two decades into a design career with a wall full of shiny awards and a portfolio of clients including Nordstrom, Starbucks, Nintendo, and REI. His rocket trajectory veered when his oldest child faced a health challenge of indeterminate origin. Hundreds of research hours later, David identified food allergy as the issue and convinced skeptical medical professionals caring for his child. Since that experience, David and Retail Voodoo have been on a mission to create a cleaner, healthier, more sustainable food system for all.

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Conventional is the New Specialty Grocer

If you’re the owner of a natural/organic food brand you know the roller coaster. Natural product stores, from Whole Foods to the smaller independents, might love your brand today and discontinue it tomorrow. Let’s face it, shelf space is always at a premium and brands are subject to getting bumped for a variety of reasons. If turns are slow at first, out you go. If another brand comes along that looks sexier, you’re gone. If the retailer decides on private label offerings in the category, finito. It isn’t easy to get into most retail stores to begin with, but it’s easy for them to give your brand the boot.

These are the scenarios at retail. You know it and we know it. The question is: what to do about it? You have to recognize as the entrepreneur of a small brand that distribution is key to survival and that means having a presence in different channels. You might not like the idea because you think your natural/organic brand belongs in natural product stores, but that kind of thinking will hamper your chances of success. In 2015 the number of organic items available in traditional grocery stores was up between 35 percent and 50 percent, according to estimates from investment bank Piper Jaffray.

Never put all of your eggs in one basket, right? While the traditional natural product shopper continues to buy at Whole Foods, Trader Joe’s and their local health food stores, there are plenty of other customers who are buying natural/organic products in other channels. They may not be as hardcore, as educated about the products, or as dedicated to buying whole foods and clean products all of the time, but there are millions of these consumers shopping in mainstream retail stores. And having access to products that they know are intrinsically healthier choices influences buying decisions.

That’s why your goal has to be to take your natural/organic brand and cross over into mainstream retailers both online and off. Sure, some conventional shoppers are dabblers. However, others will try your brand, like it, and become loyal consumers. They’ll tell their friends and that buzz will help build your business.

With eggs in multiple baskets, it isn’t a disaster if a major player in the natural/organic industry drops your brand, either. You can sustain that and look for more distribution as you go along. Revered brands like Traditional Medicinals did this a long time ago. They’ve got a presence in natural food stores and supermarkets, including Wal-Mart, specialty/gourmet stores, drug stores, and among e-tailers. More recently Alden’s Organic Ice Cream and Hilary’s Eat Well – purveyors of veggie burgers, salad dressings and snacks – made the same leap. They have gone from exclusive distribution in natural product stores to stocking their products in supermarkets. Smart.

The natural/organic category is no longer an afterthought for retailers, but a powerful part of their over overall merchandising strategies. There’s a commitment to expanding these categories like never before.

Enter the trendsetter for non-traditional consumers: Target

We all know that when Target gets behind a category and niche, the retailer has the power to move the needle in a big way; it’s been no different for consumers seeking better-for-you alternatives. In a recent article in Business Insider, Target CEO Brian Cornell is quoted from a November conference call: “We’ve been very focused on assortment changes and bringing more natural, organic, local items into many of our categories, and we’re seeing the guest react very favorably.”

Given its M.O., Target will experiment, bring in the unusual, merchandise creatively, and go after natural/organic in a meaningful way (i.e. go after Whole Foods in a meaningful way). They’re not alone, although they’ll likely do it best. Hence the title of the article in Business Insider: Walmart, Target and Aldi are addressing a huge weakness—and it’s turning into Whole Foods’ worst nightmare.

Reread: There’s great potential growth in mainstream retail stores; the consumer is primed and ready for it. Natural/organic can be attractively priced against specialty retailers without sacrificing quality while still enjoying much better margins than the average fast-moving consumer goods (FMCG) brands.

There’s an interest among the nation’s largest food retailers to source more local products and brands, as well – the former bastion of natural product retailers. With the lines continuing to blur, consumers expect to find these products where they shop in their daily life. Things are going to get even more interesting; stay tuned.

David Lemley

David was two decades into a design career with a wall full of shiny awards and a portfolio of clients including Nordstrom, Starbucks, Nintendo, and REI. His rocket trajectory veered when his oldest child faced a health challenge of indeterminate origin. Hundreds of research hours later, David identified food allergy as the issue and convinced skeptical medical professionals caring for his child. Since that experience, David and Retail Voodoo have been on a mission to create a cleaner, healthier, more sustainable food system for all.

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Cultural Transformation: The Ultimate Brand Strategy

You started a business because you had a fire in your belly. You created a brand because you believed that you could offer something that others were missing. After launch, you happily set about building your business but inevitably you got bogged down with the everyday realities of what that implies. You’ve been busy putting out fires, solving problems and worrying about cash flow.

Along the way, you dabbled in marketing efforts, i.e., you tried a bunch of things to see what would stick when it hit the wall. One day, it dawned on you that you’d better get back to your core brand ideals because you’re in a holding pattern. Your business has hit the proverbial plateau and you know in your gut that if you’re not growing, you’re losing ground.

So you get your mojo back and refocus on your core brand and its uniqueness. You dig in, roll up your sleeves and get back to what makes your brand special. (Where had it gone, anyway? Seems time has a funny way of diluting brands unless we stay vigilant, right?) You redefine who your customer is and focus on them like a laser beam. You put together a marketing plan that you intend to stick to. You assess your products and your services and hone in on where your business ought to be and jettison the rest. Then you look at your sites of business and fix the problems with your bricks and clicks so that you can create a seamless experience for your customer.

Or have you? See, brands start from the inside out. Every brand has a unique culture. Every employee is part of that culture. What does your culture say about your brand? Are you hiring and retaining people who are true representations of that brand?

You can fix an ailing brand in the most meaningful way by transforming the culture. REI did it. The Seattle-based outdoor outfitter was open to working with us to reposition its brand and to bring every aspect of their business into alignment with that. Core to its turn-around was the focus on its culture. Now we know that people resist change, so it’s best to engage them by getting them to buy in. Showing them how their tired brand could be engaging, rewarding and magical—making it a fun place to work—is the path forward. For REI, focusing on core brand values: the great outdoors, sustainability, the joy of outdoor activities and sharing this passion with the customer was key. Turning around the culture turned around REI. That turn-around created a cult following among consumers who became rabid fans of the brand.

Now think about how you can transform your own culture.

Then, going forward, tap into the wisdom of Zappos’ intrepid CEO, Tony Hsieh. In a video interview with Inc. Magazine a couple of years ago, Hsieh offered a world of wisdom in 48 seconds flat. Firmly grounded in his brand thanks to vision, deeply-rooted convictions and maniacal focus on what matters—and the ability to dismiss what clearly doesn’t—Hsieh says matter-of-factly that the Zappos culture is all.

To wit: Zappos won’t consider hiring the most gifted people if they don’t fit their culture, no matter how much business they might generate. Zappos candidates must pass two interviews: one for basic skill sets and one that only analyzes whether they’re a cultural fit. In performance reviews 50% of employee assessments are focused on whether they’re not only a great cultural fit but “inspire” their co-workers as well.

Why is this a big deal? Employees are the embodiment of the company brand—or should be. They are the brandto the customer. If they aren’t part of a dedicated, zealous company culture—how can the company succeed? How can the brand be perceived as the best even if it truly is the best?

It’s the people-to-people connection: employees-to-customers that makes or breaks the brand. Now: is it a good idea to hire the best and brightest for key company positions if they don’t buy into and fit into the culture? To fill lower level slots with expendable worker bees who are considered expendable? To hire good people and then not imbue them with the brand so that they buy into it and live it? Uh, no, no and no.

When employees are hired that fit into the culture, great brands recognize them and work to retain them.

They’re rewarded—not only with raises—but with the things that matter even more: recognition, praise, empowerment to make basic decisions, especially when dealing with customers, and the ability to grow, learn and earn positions of greater responsibility. Respect, nurture and appreciate your employees—they’re the heart of your brand.

Where has culture taken brands like REI, Trader Joe’s, Zappo’s, KIND Bars and Burton? To the top of their sectors. And into the hearts of consumers who love these brands like zealots. Does it get any better than this for brands?

David Lemley

David was two decades into a design career with a wall full of shiny awards and a portfolio of clients including Nordstrom, Starbucks, Nintendo, and REI. His rocket trajectory veered when his oldest child faced a health challenge of indeterminate origin. Hundreds of research hours later, David identified food allergy as the issue and convinced skeptical medical professionals caring for his child. Since that experience, David and Retail Voodoo have been on a mission to create a cleaner, healthier, more sustainable food system for all.

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Found/Owner Freakshow

Something strange happens to entrepreneurs, it seems. They start their businesses with passion, insight and ambition. Many of them even get the concept of branding which is elusive to so many. Founder/Owners work relentlessly to build their brands, and then when their businesses take off—that’s when the strange thing happens.

They get lost, and for various reasons. For many, it’s a matter of getting lost in the daily grind and operations of running a business. Others get lost in space, navel gazing and contemplating what they might have done differently or better, or wondering which track they might pursue rather than the one they’re on. For yet others, there’s a constant second-guessing about their pricing structures, or whether and how to innovate their products or services. Often, that brings with it the inevitable fear of spending money; I mean, where and how should that be done? What kinds of innovations should be supported? Or should they just hold onto their money to improve their bottom lines?

Aye, aye, aye. It’s enough to give them—and us—a headache. And it does. To founder/owners of businesses: getting lost is not an option. Doing everything that needs doing every day, sans delegating anything, makes your brands suffer. I mean, who’s minding the store? Who’s seeing the big picture and running the show? Who’s at the helm? Apparently, nobody.

If anxiety is pushing off decision-making about the business, that can be even worse. No decision is a decision, right? Fear clouds judgment. It makes us freeze and that’s not a healthy thing. Look, if a unique brand was born as a result of a founding idea, it ought to be nurtured so that it can grow up healthy and strong. If it’s neglected, inconsistent, or constantly changing gears, it will lose vitality and eventually go the way of the dodo bird. You know, extinct.

Here’s the point: decision making is not as daunting when made through the prism of the brand; what it is and what it isn’t helps owners make the right decisions for their businesses. That’s not to say that they can’t change. Of course they can, and they have to if they’re going to remain relevant to their fan base, which is on the move and changing. But meaningful change happens when it makes sense to the brand and it’s in keeping with its values. Owners have to be on top of their brands to know what needs to be done and when.

Take a Note from Sahale

The Sahale Snacks brand was the brainchild of two co-founders who are avid outdoorsmen. They got tired of eating trail mix made from stale ingredients that lacked imagination. So they launched their own brand. We went back to our kitchens the very next day and created unique combinations of premium nuts, dried fruits, and exotic spices, each reflecting a beautiful location, culture or culinary tradition somewhere in the world.”

That’s their brand. Everything they say and do reinforces that brand. When their packaging didn’t get the “Snack better” message across to justify its premium positioning, we amped up the package design to show just how appetizing and appealing it really is. End result of the Sahale spend? Increased visibility, rapid growth and strong sales among discerning consumers who are becoming brand fans.

This didn’t happen because the founders were star gazing or frozen into indecisiveness. They understood that Sahale had greater potential but they had to do something to make it happen. That could only happen because they were looking at the big picture and managing the brand.

There’s another moral to this tale. Most brands aren’t alone in a category, are they? And for those enviable brands that create a category, we know that they aren’t going to fly solo for very long. Too many wannabees are going to try to take a chip off the old block, steal some of the thunder and the sales.

So What’s a Brand to Do?

Take a page from Sahale and dig into what makes your brand one of a kind. And shout it out to the world. Keep on moving but don’t stray from the brand: it’s your reason for being. When you create a unique niche in a category, you ought to be able to own it if you market it wisely. If you don’t, somebody else is going to come along and take your niche and your brand positioning from you. It happens every day and you don’t want your brand to become one of those statistics. So take the rudder, please.

David Lemley

David was two decades into a design career with a wall full of shiny awards and a portfolio of clients including Nordstrom, Starbucks, Nintendo, and REI. His rocket trajectory veered when his oldest child faced a health challenge of indeterminate origin. Hundreds of research hours later, David identified food allergy as the issue and convinced skeptical medical professionals caring for his child. Since that experience, David and Retail Voodoo have been on a mission to create a cleaner, healthier, more sustainable food system for all.

Connect with David
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Sports Authority: A Name without a Brand

A recent article discussed the woes of Sports Authority with the headline: Sports Authority Is Sinking Under Discounts And Naming Rights.” Really? There’s no doubt, as the article cites, that Sports Authority has some major problems. What the article doesn’t explicitly say, however, is that these problems are of their own making. But they are.

In a nutshell: deep discounting to move out merchandise due to slow sales, paying a whopping $6 million per annum to have its name—Sports Authority Field—on the Denver Broncos’ stadium, and a $20 million default on its $343 million dollar debt all led to the company’s declaration of bankruptcy under chapter 11. These are the reasons given for the company’s demise. The company itself cites increased competition, as well.

And then of course, the lamentable state of retailing is yet again pointed out in other articles discussing the demise of Sports Authority. After all, retail giants like Macy’s, Wal-Mart, Radio Shack, Sears, Barnes & Noble are all going the way of the dodo bird; and with good reason in every case.

But coming back to Sports Authority, there’s more to the story than the company’s sinking under discounts, debt and naming rights. Let me ask you this question: what comes into your mind when you hear the name “Sports Authority”? Summarize their brand in a few words. Can’t, can you? Nor can I. And that is really the crux of their problem more than anything else.

Not saying they haven’t made bone-headed business decisions here, but Sports Authority is literally a name without a brand.

Make No Excuses

Brick and mortar retailers are finding it harder to pull in customers. Etailers are taking their customer base away from them. Competition is intense in every category. To all of that I say this: too many retailers aren’t giving customers a reason to believe. Too few are giving customers unique and compelling experiences. If they did, they’d have fans pouring into their stores. People can buy merchandise anywhere, but what they’re hungry for is the experience more than the product. Let that truth sink in.

Now think of this. Think of the sports names that represent meaningful brands. You know: brands that have meaning, substance and values, that they live and breathe up and down the line. In spite of a tough economy, in spite of increased competition, these brands are in it for the long haul. They can withstand tough times. They can even flourish because they attract customers and then turn them into brand fans. Their fans do purchase from their websites but they also enjoy coming into their stores because it’s always a great experience.

Who am I talking about? REI comes to mind. LL Bean. Cabela’s. Bass Pro Shops. Eastern Mountain Sports. All of these companies are brands. Brands with a clear position and value proposition. Brands with a vibrant story. What’s Sports Authority’s position, proposition and story, anyway? Hmmm, can’t seem to recall… isn’t that the larger point?

And here’s the thing: when you own a brand, it dictates business decision making. It actually helps you to avoid making bone-headed mistakes that could derail your company because anything that isn’t brand-centric and customer-centric simply isn’t done.

Naming a famous sports complex might stroke the egos of the inhabitants of the C-Suite but it doesn’t do much else. Don’t tell me that wasn’t why Sports Authority chose to fork out millions to put its banner in the Denver Broncos stadium. After all, competitor Dick’s Sporting Goods did it, so the mentality was likely one of not being outdone.

Strong sports brands help to support and underwrite events in their local communities—the ones that make sense for them and their fans. No need to blow millions on extravagant stuff. And you know what? I’ll bet legions of Denver Bronco fans bought their team jerseys, hats and sweats online or from a competitor—not from Sports Authority. That makes this tale even sadder.

David Lemley

David was two decades into a design career with a wall full of shiny awards and a portfolio of clients including Nordstrom, Starbucks, Nintendo, and REI. His rocket trajectory veered when his oldest child faced a health challenge of indeterminate origin. Hundreds of research hours later, David identified food allergy as the issue and convinced skeptical medical professionals caring for his child. Since that experience, David and Retail Voodoo have been on a mission to create a cleaner, healthier, more sustainable food system for all.

Connect with David
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Disrupt. Create a Category of One

We’ve heard it all before. “There’s nothing new under the sun.” “It’s all been done before.” “Timing is everything and this isn’t the time to start anything new.”

Thankfully, the intrepid among us have never taken any of these ideas to heart. If they did, great inventions would have never happened and great brands might never have seen the light of day.

If anything, consumers are hungry for something new and exciting since they’re mostly confronted with the banal and the boring. But here come the excuses. Challenging consumer economy. Too much competition. It’s a short route to commoditization. Check, check and check.

There’s only one thing to do in this scenario. Disrupt. Because if you don’t, your brand is just one among many like brands with nothing to distinguish it from everything else out there. (You’ll muddle along but you’ll never be great.) But you can only disrupt if you dare.

In a Fast Company interview a few years ago, brand visionary, Scott Bedbury, of Nike and Starbucks fame nailed it: “I walked through a hardware store last night and I came across 50 brands I didn’t know existed,” said Scott Bedbury. “They may be great products, but they’re not great brands.”

Exactly.

Before Starbucks came on the scene, there were local coffee shops. Mostly ho-hummers. Nothing exciting in the way of offerings; coffee burned from being kept heated past its expiration date and a little local gossip. So why not create a magical third place? A welcoming environment that isn’t home or the office. A place conducive to gathering and staying, engaging in conversation in a pleasant atmosphere replete with mismatched chairs for a touch of hominess. A place offering a plethora of caffeinated beverages made to order with the best of ingredients.

Result? Home run. All because Howard Shultz went to Italy and saw how a coffee shop could be. And dared to bring the idea to our shores. Shultz could have said: too much competition and too much commoditization in the category. He would have been right unless he dared to disrupt. And he did.

And he isn’t the only disrupter, right? Nike did it in the sneaker category. KIND did it in the crowded nutritional bar category. Glaceau did it with water (can’t have a more basic commodity than that!) Plum Organics did it with baby food. REI did it among outdoor gear retailers. Whole Foods did it among natural product retailers. And Trader Joe’s did it among specialty/gourmet and natural retailers including Whole Foods.

These are all one-of-a-kind brands. They’ve smashed through the walls of their categories and reshaped the world as we knew it. Think about that.

So what does it take to disrupt? A few things.

  1. A willingness to step back and take a different view of categories because you’re looking for opportunities.
  2. An assessment of what’s lacking that would make people find meaning in your brand versus the others that are out there (read: the uninspiring and meaningless.)
  3. An intrepid spirit to go where no man or woman has gone before within the category, whether you sell goods or services.
  4. A full commitment to the brand: sticking to who and what you are and forgetting about all of the rest. (Brand dilution continues to be a big problem for brands large and small.)
  5. A willingness to continue to innovate within your brand proposition; to be willing to try things and sometimes fail so that you can learn and get stronger.
  6. An acceptance that others are going to try to knock you off by emulating what you do and responding by doing even better.
  7. A total focus on your customer who is your fan and a follower of your cult.

I know what you’re thinking. “This is terrific but in this economy who’s done anything lately?” Answer: lots of entrepreneurs have and they’re still doing it.

To wit: two women in New York City started up a new cupcake bakery. That’s an idea that’s already peaked, right? Prohibition Bakery brought the talents of two women: baker Brooke Siem and bartender Leslie Feinberg together four years ago with a unique brand idea. “People love cupcakes. People love booze.” Why not make liquor-laced cupcakes?

The bakery creates WOM like crazy because of its uniqueness. It really doesn’t have much competition if any. Does that mean others won’t come along and try to replicate their brand? Of course not. So Siem and Feinberg continue to innovate based on drink trends. Partnering with drink brands for promotions and creating new cupcakes based on specialty drinks only creates more word of mouth.

What I love: they’re clear about what they won’t do: deviate from making cupcakes to make cakes or meet special requests for dietary restrictions and customized decorations (too costly and inefficient—there are plenty of bakeries occupying those niches, besides—important to note.) This brand is well-defined. So is the strategy. They’re not aimlessly seizing on just any old trend if it doesn’t fit their brand and its unique positioning.

Why play in the same space as countless other brands? Why not seize on a unique idea as these smart women have done? I mean cupcakes that come with a warning label; that you need an ID to purchase? Cool.

Oh, wait. You’re not doing a start-up; you’ve already got an existing brand and it’s stuck in the mud. Okay, so what are you going to do about it?

I assure you: there are opportunities to stake out your own brand territory, but that proposition isn’t for the faint of heart. You’d better plan on rolling up your sleeves, working hard, and keeping your vision on track if you want to be successful. But the pay-off. . .to be the one and only? Wow!

Checkmate.

David Lemley

David was two decades into a design career with a wall full of shiny awards and a portfolio of clients including Nordstrom, Starbucks, Nintendo, and REI. His rocket trajectory veered when his oldest child faced a health challenge of indeterminate origin. Hundreds of research hours later, David identified food allergy as the issue and convinced skeptical medical professionals caring for his child. Since that experience, David and Retail Voodoo have been on a mission to create a cleaner, healthier, more sustainable food system for all.

Connect with David