Tag Archives: strategy

The Digital & Social Era: Unlocking Brand Value in a Nanosecond

 

Monopoly, Scrabble, Mr. Potato Head, G.I. Joe, Nerf, Little Pony, Transformers.  These are only a few of the brands we are all growing old with, and are also seeing our children grow up with. They are all household names that have an extensive legacy and franchise around the world. They’re all Hasbro brands.

While many brand managers often think of extending a brand in terms of new product in the physical sense, the digital and social era offers the opportunity to transform brands into new media properties in ways that unlock the brand’s legacy. The age of new media offers up the chance to pull brands literally “out of the vault” and make them fresh again by relaunching them in an entirely new format.

Hasbro is a company that not only manufactures and distributes toys and games; it is an entertainment company that now competes with the likes of Disney. For example, one of the largest and most successful movie franchises is Transformers. Introduced in the mid-1980s, Transformers was a toy line that featured parts that can be shifted to change from a vehicle into a robot action figure and back again. A number of spin-offs followed, including an animated television series.

In 2007, a live-action movie, under sponsorship of Steven Spielberg, was released, with the latest installment to be released this summer. Around the brand is a vast array of media, including video games, a website, online games, TV commercials, a Facebook community, books, gear and all sorts of toys. Yes, there are apps for iPhone – in 3D no less – that include puzzles.

Not only has Hasbro become a force in the movie industry, it also is a direct investor in television having recently launched The Hub channel in the U.S. in partnership with Discovery Channel whereby the Discovery Kids platform was renamed The Hub. In Canada, Corus Entertainment and Hasbro Studios have come together to distribute Hasbro brands across the various Corus kids television platforms, such as Treehouse, the TV home of My Little Pony: Friendship is Magic (with HD episodes available on iTunes).

What makes the discussion even more compelling is how Hasbro has been able to artfully blend instinct with formal management process. I say this because the toy business, like fashion, has for many years been built on having a nose for what’s hot and what’s not. In the age of digital, so much is in the moment that risk and reward take on much shorter cycles, thereby requiring a balance between management discipline and entrepreneurial behaviour. As Michael Hogg, President of Hasbro Canada, says: “The toy business is like packaged goods with your hair on fire,” in that much of the action is in the moment, about today. This makes me think of the phrase Carpe Diem – on steroids.

Underlying this “360 degree” approach to defining the media mix is the foundational belief that there is also a value chain with regard to the media platforms. In Hasbro’s case, TV is the anchor to build brand awareness in key segments, whereby other media take on a supporting promotional role to augment consumer engagement.

In the days of traditional media, there was much talk about unlocking ‘incremental brand value’ by building out line extensions and adding ancillary products. In the era of digital and social media, brand value can be unlocked in an exponential way by developing the optimal media mix and devising the right formats for each brand.

It also means sticking to the fundamental questions: what are the demographics, who are the buyers, what are the right media choices and how do we build the trust factor into everything we do? The latter is most important especially when engaging audiences of ‘mommy bloggers’ who have valuable opinions about product safety, play value and ideas for innovation.

It also requires a change in mindset since metrics are not always conveniently at hand. In fact, it may be advantageous by allowing managers to take risk by investing in more trials, seeing what works through iteration and then building metrics that support additional investments for a calculated payoff.

For Hasbro, one formula that continues to prove itself in effect leads the consumer through the channels. Television is the anchor for certain target segments for brand building; websites are ideal for promotional activity and driving consumers to the retail store.

So let me end with a few more Hasbro brands that you may well recognize: Twister, Battleship, Yahtzee, Risk, Tinker Toy, Play-Doh, Sorry! and Easy Bake. And yes, there are and will be more apps.

– Ted Morris, 4ScreensMedia

 

United Airlines: Broken Guitar Triggers Stock Rally

A few days ago some of the bright lights in the social media domain were all lathered up about a group of academics who were able to ‘prove’ that Twitter ‘predicted the outcome of stock market’. As it turns out, it was a worthy attempt by some academics who looked at historical data and found a parallel relationship between public sentiment and stock market movement (go to the link here). They were the first to admit that they did not find any causality between Twitter and movement in the stock market. The paper was unpublished and had not been through an academic peer review. Nary a peep from those same lathered up socialmedialists since (I think they might have been avatars anyway, not real people).

This got me thinking about the United Airlines incident whereby some poor unfortunate troubadour had his guitar allegedly mishandled and damaged by United Airlines. He was so incensed that he wrote a song about the incident and posted it on YouTube. The digerati swooned as it was ideal fodder for these Internet imperialists to take down yet another brand. So United was vilified as have many airlines since the rise of social media platforms. As they are fond of saying, Mr./Mrs. CMO – you no longer control the brand.

Well, here we are a year since the United Broke My Guitar incident. It’s earnings week in the US airline industry. So far, AMR, Southwest and Delta have fared quite well and most airlines are expected to post strong Q3 results.

Which brings me back to United Airlines. Since July 2009, United stock has been steadily on the rise. In fact, it would appear that the rally coincided almost to the day of the Broken Guitar incident and the stock has risen 10-fold since. Maybe there really is something to this social media analysis stuff.

Broken Guitar Triggers Rally

 

– Ted Morris, 4ScreensMedia.

Commentary: Media Companies Need To Become Marketing Companies

The following is an excerpt from an online post authored by Andrew Heyward and Jeffrey F. Rayport in a recent edition of Harvard Business Review:     

                                                                                                                                                                         These consumers, people we like to call “Customers 3.0,” live in a blur of mash-ups, blogs, RSS feeds, links, text messages, tweets, and “life-casting” on social networks like Facebook and MySpace. For Customers 3.0, the very idea of content includes everything, embracing all media formats as well as advertising. And they collect, collate, and customize such content according to their individual tastes in personalized online environments (like MySpace or Facebook “pages”). This is what we call “user-generated context.”        

In this environment, it’s increasingly difficult for either publishers OR advertisers to stand out. The long-standing value proposition of publishers to brands – we create compelling content that attracts a desirable audience and then sell you the privilege of placing your commercial messages adjacent to it – is becoming a tougher sell.         

That’s because marketers don’t get much value out of seeing their messages appear in anodyne ad units (like banners ads). They need rich integration of their brands with content users are seeking or creating on their own. That leaves publishers in a sticky position: either they stand by and watch marketers build compelling online experiences without them, or they put their editorial and creative capabilities to use to help their clients – the big brands – cut through the clutter.         

In our practice, we like to say that “every company is a media company.” Increasingly, every media company must also become a marketing company. For online publishers, the challenge is to achieve that goal without damaging the very reputation for credibility and integrity on which their market positions rest. If online publishers can’t manage that balancing act before it’s too late, they’ll have more than mud on their faces.          

Here is my take:  As brands/national advertisers transform in part, to media, publishers have an opportunity to seek new partnerships by redefining their roles. For one, extending the value proposition means that publishers can be purveyors of a paid subscription base that is made available to brands as participants in making the message. Media and message become united. Message and media finally merge in a way that makes business and cultural sense.    

What this may mean, by necessity, is the redefinition of how the paid print advertising model is architected as ‘earned media’ become currency. This is not to advocate a ‘freemium model’ – after all, you still only get what you pay for – rather a model that attributes a business value to user-generated content reflecting the effort and subsequent return of the medium.     

Those that see the opportunity will find the right tools for the job. New cloud applications are about to come out of the gate in such as way that makes the cost of entry low and the opens the door to test this new media paradigm.      

– Ted Morris, 4ScreensMedia