A New Logo for Wendy's?

Background
Wendy’s is an international fast food chain that ranks third in hamburger joints behind McDonald’s and Burger King (Hoover’s, 2009, p 1). It has over 6,500 locations in the United States and more than 20 countries worldwide. Management is considering changing the Wendy logo and brand character to keep it current. There is a concern that changing the well-known logo could have adverse repercussions. To study consumer opinion a series of personal interviews will be conducted.


According to Keller (pp 156-159), logos and brand characters are an easily recognizable way to identify a company and product. They are central to advertising campaigns and packaging. He says they can “create perceptions of the brand as fund and interesting.” However, (p. 158) he also notes they must be changed from time to time. Betty Crocker spent over $1M to update its tired brand character (pp 164-5). This $1M price tag is also the case for updating a logo (p. 157).

Sampling Method
The background information shows the importance of correctly updating a brand character, and that an appropriate budget must be allocated to this important task. Having an accurate cross-section that is representative of Wendy’s customers outweighs cost. We do not want to draw incorrect conclusions by using a sampling method known to be inaccurate.

The life-cycle of a sampling plan is to define the population, choose a data-collection method, identify a sampling frame, select a sampling method, determine sample size, develop operational procedures, execute the plan (see McDaniel and Gates, 2008, p330). This specific assignment is to select and justify a sampling method. Our first decision is between probability samples and non-probability samples. McDaniel and Gates (p. 334) note that probability samples are better for obtaining a representative cross section of our population. Given the importance of the logo or brand character, we need to have the best representation we can get. The trade-off is cost but we should have a budget commensurate with the task.

Next, we must decide among the several probability sampling methods. I like the stratified sample because it has a smaller sampling error than the other methods (see McDaniel and Gates, 2008, p. 341). It is more efficient because it eliminates one of more sources of variation through the stratification process. The researcher is making the “sample be more representative by making sure that important dimensions of the population are represented in their true population proportion.”

Wendy's should stratify on country. According to Hawkins, et al (2007, p 40) cultural factors that like language, demographics, values and nonverbal communications can impact marketing communications. A cultural faux pas with a brand character or logo can make Wendy’s appear like confused Martians. Using country to stratify, I can also avoid the main drawback on stratified sampling – we usually don’t know in advance the proportions of the strata (see McDaniel and Gates, 2008, p. 342). However, Wendy's consolidated financial statements do have that information.

Finally, should the method be proportional allocation or disproportional allocation? In this case, the method should be proportional because it is easy to calculate the relative number of locations in each country to the total number of locations (p 342). Within each country (strata), do simple random sampling with a sample size proportional to the relative percentage for the country.

To collect the data, the store intercept survey type can be used (see McDaniel and Gates, 2008, p. 150). As a style of mall-intercept survey, it would share many of the same advantages and disadvantages. The interviewer can show proposed Wendy’s logos, explain and probe (p. 171). On the other hand, the respondent may be distracted, or in a hurry. Further, there is a greater opportunity for interviewers to select the people to interview in a non-probabilistic manner. Strict operational procedures should be defined.


References
Hawkins, Del, David Mothersbaugh and Roger Best (2007). Consumer Behavior. McGraw-Hill/Irwin.

Hoovers (2009). Hoover's Profile: Wendy's International, Inc. Retrieved on June 7, 2009 from http://www.answers.com/topic/wendy-s-international

Johnson, E. (2009). Quantitative Research: Surveys & Sampling. Retrieved on June 7, 2009 from http://www.imc.wvu.edu/.

Keller, K (2008), Strategic Brand Management. Pearson/Prentice-Hall.

McDaniels, C and R Gates (2008). Marketing Research Essentials. John Wiley.

Successful Equity Building for an Online Brand

Uproar.Com is a gaming site that uses traditional gaming as a draw to increase site traffic for sponsored advertising. In addition to a large selection of free games, they also have sophisticated games for subscription, and they work with corporations to create advergaming marketing communications campaigns for those corporations. The site was created by a woman and is currently managed by her. The Web site is located at
In her Direct Marketing News article, Blank (2001, p 10), sites the demographics of Uproar.com, 80% female and skewed to the 18-35 year old audience. In addition, there are 31 million registered users of Uproar.com. As noted, Uproar.com helps other companies prepare advergaming sites and one example is Hershey. Hershey reported 1.3 million people who visited its game site on Uproar registered for its sweepstakes to win a trip to the Hershey Park, and 2.7 million did so to win a years supply of candy. This site has a lot of traction.

Keller (p 665) says a "simple but evocative name" like Uproar.com can be beneficial for online branding. He (p 663) goes on to remind us not to forget brand-building basics with online brands, starting with establishing points of parity and points of difference. An important point of difference for Uproar.com is that it is not a game site for adolescent males, the traditional audience for action games like Grand Theft Auto. The games on Uproar.com are thinking games. Fatah and Paul (2002, p 1) find that 41 percent of people who frequent online game sites in general are women, and 43 percent are ages 25 to 49. They also find that the average time a person spends on Uproar.com is one hour and 24 minutes.

Keller sites promotional programs as another important element in brand building ( pp 256-9). The Toronto Star (2000, p 2) reports that Uproar.com distinguished itself trhough its incentive based programs. “Players are rewarded for signing up and playing.” Awards vary for different games: some are cash, DVDs, MP3 players and even vacations to Maui.

Keller also notes (pp 229-235) that the integrated marketing element of advertising is a powerful means to building brand equity. Sampey (1999, p 1) reports that the Grey Entertainment agency did TV, radio and outdoor ads for Uproar. They came up with the slogan, “Let there be fun.” Keller (p 159) says that slogans “are powerful brand building devices….”

The result is that Uproar.com is a major entertainment site and has powerful companies both advertise on the site and seek out its advergaming expertise.

References
Blank, C (August 6, 2001). Hershey's Online Push for Reese's Gets Sweet Response. Direct Marketing News. Retrieved on December 5, 2008 at http://www.dmnews.com/Hershey39s-Online-Push-for-Reese39s-Gets-Sweet-Response/article/74093/

Fatah, H and P. Paul (May 2002). Gaming Gets Serious. American Demographics. Retrieved from EBSCOHOST on December 6, 2008.

Keller, K (2008). Strategic Brand Management. Pearson/Prentice-Hall.

Sampey, Kathleen (October 11, 1999). Grey Airs First Uproar Work. Adweek. Retrieved on December 6, 2008 from EBSCOHOST.

Toronto Star (November 16, 2000). Gratis Gaming. Retrieved from EBSCOHOST on December 6, 2008.

Perceptual Map of MSN, Yahoo and Google

A Perceptual Map is a marketing tool to graphically compare consumer attitudes towards competitor companies. Most commonly, two salient characteristics of the market niche occupied by the companies are used to form a two dimensional map that shows how each company fares with the customers of that market segment.

Online services is becoming an important market segment for Microsoft. Marketing Vox (2007, p1) reports that Steve Ballmer, Microsoft CEO, sees advertising revenue earned by Online Services as contributing 25% of Microsoft’s business in future. Such advertising revenues will help support the Microsoft Cloud Computing initiative code-named Azure (see Mackey, 2008, p 1) and Software as a Service (SaaS) offerings.

Already its competitors are starting cloud computing and SaaS services that Gartner believes will soon be “good enough” (see Smith and Austin, 2007, p 1). The top two competitors to Microsoft MSN in Online Services are Yahoo and Google. There are two dimensions I propose to use in assessing corporate customer perceptions of these three largest Internet sites. The first is the market perception of the corporate services that are offered by each vendor.

The other dimension is social capital. As I have argued in the Open Source Gamblers Ruin posting (see Gambler's Ruin), “strategic buyers” are an important customer segment for Microsoft generally and the most profitable customer in terms of sales revenues. These customers are corporate and governmental organizations that would have a major impact on Microsoft if they shift away from Microsoft to its Open Source or Web Portal competitors because they are big buyers. A move like that would reduce Microsoft revenue while significantly enhancing that of its competitors. In addition, by being big buyers, they also attract advertisers so that they have significant meaning for MSN operations. Therefore, the second dimension in this perceptual map is the social capital each competitor has with corporate customers.

Buchanan (2002, 201-204) gives a laymen’s explanation of social capital as the “ability of people to work together easily and efficiently based on trust, familiarity and understanding.” In lieu of a formal survey, I will use the sales, marketing and consulting employee counts of each organization as a proxy for social capital thay have with large corporate customers. This seems reasonable; the greater the investment in marketing communications between one of the vendors and the corporate world it serves, the greater the social capital.

To calculate the correlation strength of each vendor in the social capital dimension, I normalize employee counts to a percentage by summing all employee counts and dividing the total count into each company count. The employee counts are derived from the SEC 10-K filings for each company. Here is the raw data:



Here is the relative percentage of employees dedicated to marketing communications and services in the three organizations, reflecting social capital strenths:



For the other dimension in this map, the portal corporate functionality, I will use Tancer’s market ranking comparison of the three sites that is published at HitWise. However, not all attributes Experian tracks are related to corporate interests. For example, sports, dating, games, personalities and music would not be. The following are the Search Portal characteristics I will use in the perceptual map: Portal Pages, Email Service, Search Engine, News/Media, Business Information, and Maps.

For the corporate portal functionality dimension, I use a balanced scorecard approach based on those rankings in Tancer’s survey. The notion is that the current market share ranking of each Web site reflects the market’s perception of the company’s ability in each of these categories: Portal Pages, Email Service, Search Engine, News/Media, Business Information, and Maps.

Here is the score card calculation based on rankings in those categories:



Here is the relative strength of each ranking factor:



Combining the Portal Functionality numbers with the social capital, we then get the following sets of coordinates for our perceptual map:



Here is a perceptual map based on those coordinates:





I included a desired point in the map that would reflect the combined strengths of Yahoo and MSN, which is what I believe Microsoft was after in its merger attempts with Yahoo.

References

Buchanan, Mark (2002). Nexus: Small Worlds and the Groundbreaking Theory of Networks. Norton.

Keller, K (2008). Strategic Brand Management. Pearson/Prentice-Hall.

Mackey, Kurt (October 27, 2008). Microsoft has head in the clouds with new Windows Azure OS. Retrieved on November 19, 2008 from http://arstechnica.com/news.ars/post/20081027-microsoft-has-head-in-the-clouds-with-new-windows-azure-os.html

Marketing Vox, (October 4, 2007). Ballmer Sees Ad Revenue as Microsoft's Future. Retrieved on November 19, 2008 from http://www.marketingvox.com/ballmer-sees-ad-revenue-as-microsofts-future-033446/

Rosoff, M (October 23, 2006). The Future of MSN. Directions on Microsoft. Retrieved on November 22, 2008 from http://www.directionsonmicrosoft.com/sample/DOMIS/update/2006/11nov/1106tfom.htm#top

SEC (12/31/2007). Yahoo Form 10-k. Retrieved on November 26, 2008 from http://apps.shareholder.com/sec/viewerContent.aspx?companyid=YHOO&docid=5760286

SEC (2/15/2008). Google Form 10-K. Retrieved on November 26, 2008 from http://www.secinfo.com/d14D5a.tvTt.htm

SEC (June 30, 2008). Microsoft Corporation Form 10-K. Retrieved on November 19, 2008 from http://www.sec.gov/Archives/edgar/data/789019/000119312508162768/d10k.htm

Smith, D and Austin T (June 5, 2007). Microsoft and Google: Who's Going After Whom? Gartner Research, ID G00148622.

Taft, Darryl (October 10, 2007). Ballmer Talks Cloud, Advertising, SAAS. eWeek. Retrieved on November 19, 2008 from http://www.eweek.com/c/a/Enterprise-Apps/Ballmer-Talks-Cloud-Advertising-SAAS/

Tancer, Bill (August 3, 2006). Google, Yahoo! and MSN: Brand Association. Hitwise Intelligence. Retrieved on November 22, 2008 from http://weblogs.hitwise.com/bill-tancer/2006/08/google_yahoo_and_msn_brand_ass.html

Construal Theory and Cleaning Vinegar

The Heinz All-Natural Cleaning Vinegar may have been a product somewhat ahead of its time. Today’s mainstream world is more “green” aware than in the late 80s and early 90s. Haig (2003, p 34) says that the cleaning vinegar moved Heinz away from its core identity. Until then it had manufactured only food products.

He goes on, though, to propose that it was not marketed properly. Heinz pushed it to the mass market and Haig contends at that time it was a niche product. Heinz might have been successful if they had distributed it only through health store chains initially. Haig's rule for this is “Adopt a niche strategy for a niche product.”

In their study published by the Journal of Consumer Psychology, Kim and John (2003, p 1) found that the importance of perceived fit in a brand extension is moderated by “construal level.” Construal theory proposes that we interpret activities in the environment either as “abstract and generalized features (high-level construals) or in terms of concrete and contextualized features (low-level construals).”

Their studies indicate that perceived fit for a brand extension was important to people with a higher-level construal of a subject while to folks who think concretely about the subject it was not so important. This might explain what happened to Heinz. Most people abstracted them to the food product category. The greens back then may have been better audience to introduce the product. They were used to thinking outside the box and looking concretely at a product’s ingredients.

References
Haig, Matt (May 2003) Big Brand Ball-ups. Brand Strategy. Retrieved on November 27, 2008 from EBSCOHOST.

Kim, Hakkyun and John, Deborah Roedder (April 2008). Consumer response to brand extensions: Construal level as a moderator of the importance of perceived fit. Journal of Consumer Psychology. Retrieved on November 27, 2008 from EBSCOHOST.

Are Possessions an Extension of Self?

In his 1988 article, Belk addresses this question as a topic of interest to marketing research. He starts (1988, p 139) with a summary of the three states of self: 1.) Being; 2.) Doing; and 3.) Having. He goes on to do a detailed review of Sartre’s Being and Nothingness (p 145), a work that fully explored the relationships between these three states. In Sartre’s existential view, doing is a transitional state leading to the two more stable states to have or to be. Sartre argues that the only reason we want to have something is to enlarge our sense of self and so having is an extension of being.

This existential viewpoint is consistent with John Locke (see http://en.wikipedia.org/wiki/Existentialism ) the philosophical father of the old United States (see http://www.johnlocke.org/about/legacy.html ). In both philosophical systems, private property is recognized as a fundamental state of mankind and in the western world purchases are given legal status as an extension of self. In this culture, there is the opportunity for purchases to be an extension of self.

This is not the case in all cultures. Belk goes on (p 146) to discuss the Marxist viewpoint, which stresses doing as the stable state and the having state as creating ‘corrupt fetishes’ in the self. Furthermore, the collective state of being rather than the individual is emphasized. In such a culture it is very unlikely that purchases could be a reflection of self.

Another possible permutation is that of Erich Fromm, who wrote The Sane Society, a popular analysis of American social decay. Unlike Marx, Fromm (see Belk, 1988, p 146) holds that being rather than doing is the “preeminent form of existence.” However, like Marxists he holds that having is a fountain of social ills. Again, in a culture like that Fromm recommends, possessions would probably not be an extension of self.

Even in John Locke’s world, which to some extent still exists today, private property may only have a utilitarian role. Not in the Dionysian ethos that pervades the modern west but in its Apollonian past according to the Canadian anthropologist Anthony Wallace (1963, pp 101-11). In such times, Neumeier (2006, p 38) tells us that product features were the focus of the advertising. I don't think this is because people were simple and dull but because that was the cultural milieu.

The dichotomy of Dionysian and Apollonian ethos was contrived by the Greeks and an inherent part of their drama and written arts. A dim view is given the motivations that drive a culture during periods of intemperance. William Blake captured the sense of overindulgence, especially in his third proverb (see http://www.los.org/art/Blake.html ).

In the growing prosperity of Victorian times, the economist Veblen postulated that property can be a decorative extension of self (see Belk, 1988, p 157). Belk also reviews analyses of grave goods as further support for this contention that property is an extension of self. The existence of grave goods may however wax and wane according to the presiding ethos or other cultural factors. Our modern American society is certainly a good prospect for viewing property as an extension of self, but we don’t bury goods with the dead.

As noted, I think that Belk’s argument is most persuasive in the context of the modern west. He suggests (p 140) that the more control one has over an object the more it becomes part of self. I disagree with this because we would not have spent the time and energy to master an object if it was not already in our concept of self. In either case, though, the object becomes a reflection of self because it has salience with us, imagery, feelings and resonance - the ladder of brand equity.

Keller (2008, p 72) observes that a strong personal attachment can be established between a brand and a person. Brand’s convey a sense of community, a self larger than the individual, similar to nationalism. The brand imagery like patriotism defines a larger self for those who own the brand. They have become part of such a community. Neumeier (2006, p 40) proposes that brands are advancing into the vacuum left by subsiding national boundaries to avoid homogenized globalism.

In sum, I think Belk’s contention has application today as our Dionysian ethos has gone global. On the other hand, the Marxist interpretation of self has not completely disappeared, with China, Russia, Korea, Cuba, Venezuela and Vietnam still having such inclinations. What is more interesting is that yet another movement in the west may be growing, the caring conserver social movement identified by Lessinger (1991, pp 148-160). It reflects Fromm’s interpretation of self in society. Lessinger argued skillfully about the inevitability of this movement’s success and the economic demolition of the existing order it will ignite.

Depending on your choice of first cause, goods may not reflect an extension of self.


References
Belk, R (1988). Possesions and the Extended Self. Journal of Consumer Research. Retrieved on November 13, 2008 from WVU IMC Week 5 readings.

Keller, K (2008). Strategic Brand management. Pearson/Prentice-Hall.

Lessignger, Jack (1991). Penturbia. SocioEconomics Press.

Neumeier, M (2006). The Brand gap. New Riders.

Wallace, Anthony FC (1963). Culture and Personality. Random House.

Red Bull's Brand Equity

According to Keller (2008, p 53), brand equity is the strong, favorable and unique brand associations in the memory of customers. He goes on to identify (p 54) two sources of brand equity: 1.) Brand Awareness; and 2.) Brand Image. Red Bull has well defined tactics for both sources.

The Brand Awareness Source for Red Bull Brand Equity
Keller (p 54) notes the key elements of Brand Awareness: 1.) Recognition; and 2.) Recall. He postulates that if buy decisions are made at the point of purchase, then brand name, logo, packaging and the other elements of brand recognition are important factors. If the buy decision is made before arriving at the point of purchase, then brand recall is centrally important. Duncan (2005, p 140) concludes that low-involvement purchase is usually done for products that are relatively cheap, bought frequently, and are low risk. In such cases, in addition to traditional advertising with its reach and frequency drills, it would be productive to spend time getting the name, logo and packaging correct.

Red Bull did just this. The Pearson Case Study 4 (2006, p 70) describes how Red Bull selected a distinctive, slim can. They also created a prominent and eye-catching logo of two bulls and a yellow sun. Package wording effectively communicates the products benefits: Energy Drink. The packaging is an important part of the branding, as we might expect for a low-involvement product. Pearson Case Study 4 goes on (p 70) to note that changing the carefully selected package elements, in Germany substituting a glass bottle for the slim can, resulted in a dramatic drop off in sales.

To increase brand recall, Keller (p 55) advises that a slogan or a jingle can establish the memory linkages that improve recall. Pearson Case Study 4 (p 69) relates that Red Bull developed an effective slogan, “Red Bull gives you wiiings.” They use little advertising but when they do it consistes of unusual animated shorts that end with the slogan, “Red Bull gives you wiiings.”

The Brand Image Source for Red Bull Brand Equity
Keller (p 56) gives the necessary strategy for building a brand image: “link strong, favorable and unique associations to the brand in memory.” There are two factors to strengthen brand association: 1.) Personal relevance; and 2.) Consistence in its presentation over time.

Keller (p 57) goes on to say that direct experiences create the strongest brand benefit associations. This fits into Red Bulls strategy according to Pearson Case Study 4 (p 73). Their entry strategy is to seed happening places such as shops, clubs, bars and stores. They thus focus initially on opinion leaders who obtain positive direct experience with the brand. Once word of mouth has created a buzz about the product, they then widen distribution to areas surrounding the “in” spots. Keller (p 57) postulates that word of mouth advertising is particularly effective at building positive brand image in the product categories of restaurants and entertainment. It is not a stretch to see that this happened with Red Bull as well.

Keller (p 58) discusses how desirability and deliverability are critical factors in creating a favorable brand image. For Red Bull, Pearson Case Study 4 (P 70) gives the energy boosting and detoxifying benefits for the product. Red Bull improves endurance, increases mental alertness, improves reaction time, and eliminates waste substances. These are favorable for athletes, business people, and clubbers. In addition to favorability, Keller (p 58) says another factor to stimulate desirability is believability. Direct experience and word of mouth from opinion leaders is very believable.

Deliverability – does the product deliver what it promised? Pearson Case Study 4 (p 69) gives the pharmacology of Red Bull. It consists of caffeine as a stimulant, and two amino acids: taurine and glucuronolactone. These are both energy enhancing and detoxifying. This is confirmed by pharmaceutical studies. The formula for the drink has been patented by a Thai Pharmaceutical company.

Uniqueness is the third major factor for building brand image. According to Pearson Case Study 4 (pp 71-2), Red Bull created a new food category, Functional Food that enabled it to have the unique ability to make any performance claims about a food. The study notes (p 81) that this act enabled Red Bull to “establish the brand’s prominence on its own terms.” This gave it a unique message to communicate to its users, and a significant barrier to entry for competitors. It now enables Red Bull to establish in consumers the belief that its characteristics are prototypical for all members of this category, because today there are competitors. Keller (p 59) notes that this is positive for brand image.

For a more complete analysis of Red Bull integrated marketing communications, see Redmond Review

References
Duncan, T (2005). Principles of Advertising & IMC. McGraw-Hill/Irwin.

Keller, K (2008). Strategic Brand Management. Pearson/Prentice-Hall.

Neumeier, M (2006). The Brand Gap. New Riders.

Pearson Case Study 4 (2006). Red Bull: Building Brand Equity in New Ways!. Pearson/ Prentice-Hall.