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.

Casting Spells and Illusions is Harder These Days

Marketing is a commercial religion but the commercial ratio behind it has feet of clay and so marketing continually faces problems. It is a religion in that it is a meaning making process, as Drewniany and Jewler (2008, pp 36-45) observe. Marketing creates an identity and negotiates its meaning and therefore its image with the target audience. Marketing breathes life into the image by giving a name and logo as its genesis (p 38). Its adaptive and transferable meaning is from the baptism of the tag line (p 39), color (p 40) and sound (p 42) from its creator.

Redemption for those of us who worship the image is through consumption rather than faith. Consumption builds jobs which leads to more consumption. It’s an easy religion. Sullivan (2008, p 4) notes that there is a paradox in it, though. Advertising that generates sales is a “parade of [idiocy]” and offensive to our humanness. Moreover, marketeers, the hired agents of the brand image, are the least-trusted people in the world today. Well almost, politicians are the absolute worst people in the public’s view. Sullivan (2008, p 6) suggests that following Bernbach’s paradigm can separate an agency from the procession of witless charlatans who come up with “Dude you’ve got a Dell” marketing.

Another general marketing problem may be forming. The Green movement may be a harbinger of a new social order that Jack Lessinger calls the Caring Conservers (see Lessinger, 1991, pp 148-160). This movement is disenchanted by a commercial world whose logic stops at efficient production and consumption. The feet of clay for this commercial world is its efficiency at any cost foundation. It results in an endless race to the bottom, the cheapest, the most exploitative and the most risky practices. Unseemly risk, whether sub-prime derivatives today or some future scandal, will prove its undoing.

Nike’s business aggression is a poster child for our commercial world. Yet even it suffered from its child labor exploitation scandal in Indonesia (see McCall, 1998 and Vogler, 1996). In addition to the inhuman working conditions in its plants, it was noted that Michael Jordan got a bigger annual check from Nike than all its factory workers and factory children combined. Marketing can’t be part of something like that and expect to be held in high regards.

If marketing is a frontman for a problematic process, it is merely a carnival barker for the commercial world and part of the problem too. IMC should use its communication relationships, including those to top management and shareholders to extend the commercial logic to include environmental and human rights thinking.

The final general marketing problem is Accountability. That dread word. Sullivan does not like it and calls it “useless left brain crap” (p 9). However, marketing has acted like a junkie in the boardroom, tin-cupping for more money without demonstrable value. Spiller and Baier (2005, p 13) note that traditional advertising is largely unaccountable. Weber (2007, pp 115-116) notes there is a convergence between what management wants and what marketing can deliver with new technology. If management wants to know ROI on paper towels in the bathrooms, they want to know ROI on marketing. Embracing more measurable media venues will help establish marketing’s value to the firm.


References
Drewniany, B and J Jewler (2008). Creative Strategy in Advertising. Wadsworth.

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

McCall, William (November 9, 1998). Nike Battles Backlash from Overseas Sweatshops. Image Marketing. Retrieved on January 17, 2009 from EBSCOHOST

New American (11/28/2005). Protecting gun makers from lawsuits. Retrieved on January 17, 2009 from http://www.thefreelibrary.com/Protecting+gun+makers+from+lawsuits:+although+the+new+legislation+...-a0139717181

Spiller, Lisa and Martin Baier (2005). Contemporary Direct Marketing. Pearson/Prentice-Hall.

Sullivan, Luke (2008). Hey Whipple, Squeeze This. Adweek Media.

Vogler, I (January 31, 1996). U.S. Multinational Corporations in Indonesia. Retrived on January 18, 2009 from http://www.uwec.edu/Geography/Ivogeler/w111/reebok.htm

Weber, Larry (2007). Marketing to the Social Web. John Wiley.

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.

Greta Garbo Image Elements

This is the second of three postings on Greta Garbo Image Elements.
Name
Keller gives naming guidelines (p 147) that include being easy to spell and pronounce, being familiar, different and distinctive. Greta Garbo as a name is all of these as well as an alliteration, has consonance, is a slant rhyme and is composed of the plosives b,g,t, which according to Keller (p 152) makes names more easily recognized. Finally, I contend that her name taps into “existing knowledge systems.” Keller believes (p 149) this makes them easier to recognize and remember.

The word Garbo is what I call a compositional homonym. Greta Gustafson (her birth name) and Mimi Pollak (her college friend) derived the name Garbo based on first and last name elements they researched. I have no reference that they intentionally based it on Clara Bow, but the word Garbo would tap into knowledge already existing for Clara Bow. In Sweden, Clara would be pronounced KLAR-a. Garbo would be distinct from Clara Bow but is close enough phonetically to have a familiar ring to a world that already knew Clara Bow. Clara Bow was a talented and rising star in the film world in the early to mid-20s.

Style
Keller (p 143) lists four aspects of style. For Garbo, the complexity aspect of her style is minimal rather than ornamental. Her representation is realistic not abstract. Her acting is subtle, and understated when everyone else of that era used exaggeration in movement and gesture. She acted from inside out (see Paris, 1994, p 33), realistic but not the stark social realism that is as equally contrived as the vaudeville drama of the American studios and more pretentious. Her perceived movement was still, while her potency, to juxtapose Keller, was soft and strong.

Theme
Her theme was an application of her style to a formula and look. Her formula was the new woman in an love triangle. This woman was ahead of the other two in the triangle and ultimately drove its resolution. Greta Garbo refused helpless or dizzy female roles. Anymore, the interest in her today is the independence and acumen of her female characters. The theme has proved adaptable over time.

An additional thematic element is her look: languorous eyes, outdoorsy physique, graceful and athletic movement, and the Rembrandt lighting. Her wardrobe on set was done by top designers of her choice and created expressly for the film and the times, elegant in the 20s and plainer in the depression of the 30s. The Rembrandt lighting technique (see Guardian) was distinctive from the North-Lite approach used for her competition (see Cinematographers )

Slogans
A set of slogans, such as The Swedish Sphinx underscored her need for privacy, her avoidance of Hollywood parties, premiers and other events, and her mysterious power of attraction. According to Keller (pp 159-60), slogans reinforce brand positioning through descriptive or persuasive information about the star, and the desired points of difference. Unlike most of Hollywood, she was not a party animal who burned brightly then burned out.

References
Keller, K (2008). Strategic Brand Management. Pearson/Prentice-Hall.
Paris, Barry (1994). Garbo. University of Minnesota Press.

Analyzing Greta Garbo by Six Image Criteria

Keller uses six evaluation factors to study and define a brand image.

Memorability
The name Greta Garbo is easy to remember being easy to spell, pronounce, and having the linguistic characteristics of alliteration, consonance, slant rhyme and plosives to help with recognition and recall. Her style and theme is unforgettable, anyone who has seen her look in photographs or film finds out who she is and remembers. Louie B. Mayer did, writers did, leading actors did, critics and so did the general public (see Vieira or Paris throughout).

The slogan The Swedish Sphinx balances the plosives in her Name with sibilants. Sibilants start with s or soft c and are associated with the romantic, which is also the nature of her films. Again the slogan uses linguistic devices such as alliteration to aid recall. The fashion is classic so always contemporary, familiar and easy to remember.

Meaningfulness
The name Greta Garbo gave her initial meaning because it was familiar and discreetly associated with the existing knowledge system on Hollywood films. Clara Bow up through the mid-20s was a rising and charismatic star (see Noir Dame, 2008, p1 or Rhodes, 1994, p 191). Furthermore, Garbo’s theme advanced that meaningful start with a formula that is a primal, fundamental human relationship that can be applied to many situations. In her style, she was not the stereotypical female of the time, but rather now considered to be the first new woman. She expressed the spirit of freedom that pervaded the 20s. In retrospect, she was in the genesis of recognizing that freedom for women in the United States.

Likability
Keller (p 142) explains this as consumers finding the image aesthetically appealing, “Is it likable visually, verbally and in other ways.” Persuasive brand image elements reduce the burden on other marketing communications. In the film industry, the benefits of watching a particular film are less concrete than most other business transactions. Keller tells us (p 142) that in such cases “[all] the more important is the creative potential of the brand name and other brand elements to capture the intangible characteristics of the brand.”

Her look was attractively appealing so that movie goers would see her films three times instead of once (see Paris, 1994, p 119). Her Name and Slogan had drawing power from an association with pleasing films, and with a sense of mystery and romance. Her theme was a captivating expression of the balancing act between the traditional and the modern in those times.

Transferability
Transferability is the ability of the image elements to support line and category extensions (see Keller, 2008, p 142). For Garbo, line extensions would be new films, her brand image elements applied to different roles. Rhodes (1999, p 191) notes that by the 1920's many had realized that the stars rather than the stories were selling the movies. He says that "This change often took the form of storylines that thematized the relationship between the new stars to the publics upon whom they depended for their success." Garbo, more than anyone before or since, established a lasting brand.

The drawing power of her brand elements in terms of Keller’s progressive criteria (2008, p 140) have been detailed in the sections on Memorability, Meaningfulness, and Likability. They apply as well to one film or role as to another because they are related to the actress, and as Keller notes (p 142) the less specific the element to a line item or a category item the more transferable it is.

Adaptation
Keller defines adaptability (p 143) as the ability of brand elements to change over time as consumer opinions and beliefs change or just to remain contemporary. This happened to Garbo as silent film gave way to talkies and the roaring twenties gave way to the great depression. The brand name Greta Garbo did not change but with the introduction of Anna Christie, her first talkie, a slogan for the movie was able to play off the old slogan. “Garbo Talks” was a humorous extension to the “Swedish Sphinx” and its alluring silence.

Her unassuming and minimalist style was changed slightly as well as its application to a theme, adapted for the changing communication medium and economic milieu. In Ninotchka and Grand Hotel, her performance became more ornamental in complexity, less minimal. One of them was a comedy. Additionally, more of her films reflected the gritty existence of the times and made less use of elegant fashion and more of plain clothing. There was also adaptation to historical dramas such as Queen Christina. The formula was also adapted so that governments in several instances replaced the older man in her iron triangle. The Swedish crown in Queen Christina and the Soviet government in Ninotchka are examples.

The 30s Greta Garbo was substantially the 20s Greta Garbo but with some adaptation of the brand elements, which proved to be very successful at that.

Protectability
Keller categorizes two types of protection for brand elements: 1.) Legal; and 2.) Competitive. A personal name such as Greta Garbo can be trademarked especially when its unauthorized use is a bad faith attempt to mislead the public and misdirect trade and economic livelihood from a corporate body that has invested in that name for commercial purpose (see Trademarked and MirrorOfJustice).

Furthermore, all the brand elements have always, even today, proved competitively protectable. Her style and art have proven impossible to define precisely enough for anyone else to repeat her effect on screen. The iron triangle formula can be copied but her theme based on it cannot because that theme is the application of her style into the formula. The slogans applied to her would be empty today if applied to someone else, a cheap rip-off.

References
Gaines, Jane (1989). The Queen Christina Tie-Ups: Convergence of Show Window and Screen. Quar. Rev. of Film & Video. Retrieved on October 22, 2008 from EBSCOHOST.

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

Noir Dame (2008). Down to the Sea in Ships (1922) - Clara Bow, Marguerite Courtot. Retrieved on October 27, 2008 from http://www.noirdame.com/index.php?crn=206&rn=609&action=show_detail

Rhodes, Chip (1999). The Star System and Modernist Identity Formation in the Silent Film Era. Strategies, Vol 12, Number 2. Retrieved from EBSCOHOST on October 27, 2008.