It Doesn't Matter If It's Food, Fashion, Music, Cars or? Branding is a Science

I don't know the key to success, but the key to failure is trying to please everybody - Bill Cosby

I had a meeting with a nice gentleman the other day who is working on the branding of his company. I was a bit alarmed at what he said. It was obvious that this person wasn't exactly clear as to what Branding means.

He is in the restaurant industry and said to me,

"We can't be sure the age of our customers or who they are so we can't decide on what kind of food we will serve, we just have to make sure that the food we serve always tastes great."

Well, yes and no. He can't decide what kind of customers he's going to get or their age. That's true... But if he thinks he is making things to please everyone, he certainly can't do that either. He's wrong there. Also, if he's thinking is that his only competition are other restaurants, then he is dead wrong on that issue too. 

I'll explain why in a moment. 

Just like the old adage that Bill Cosby made into his own above, this kind of thinking is a time proven key to failure. It astounds me that to this day, with all the many example around us on why this sort of thinking doesn't work anymore (please think: Apple, Google, famous fashion makers, etc.) When you try to please everyone, you please no one. This is obvious and has been repeated over and over again throughout history since the Industrial Revolution. The serve-all method is a sure-fire way to fail.

Here's why...

The success of corporations like Coca-Cola, Apple, Google and Mercedes Benz, just to name a few; proves that specialization is the key to success in this day and age.

The sushi-ya is good at what they do. "But they can't be sure of the customers or their age!" Should the sushi-ya now add Chinese Food, Hamburgers, Indian Curry, etc. to the menu? Of course not!

There are lessons around us everywhere. Let's look at the restaurant industry for an easy example. Quick name one highly successful and profitable family restaurant? Denny's? Nope. They are rumored to be on the verge of bankruptcy. How about in Japan? What others are there? There's Gusto and Jonathans and Skylark to name a few. All rumored to be nearing bankruptcy. Skylark did go belly up.

How about Royal Host and Sizzler? Well, the Royal Host chain isn't doing well, but is better off financially than Gusto and Jonathans... Why? They own Sizzler in Japan.

Sizzler?! Well, yes, folks, Sizzler is doing well in Japan, thank you. Why? They specialize. They realized years ago that they needed to set themselves apart from the others in their market space. Sizzler is a steak house and its steak meals start at over ¥3,190 a plate! (about $35.77). Sizzler may be considered a family restaurant but they are doing all they can to destroy that image and change to a higher end steak restaurant.

That's Branding. That's smart. That niche marketing.

Branding is doing thorough market research and then focusing on one part of the market.

The example above I gave where the boss said, "We can't be sure the age of our customers so we can't decide on what kind of food we will serve, we just have to make sure that the food we serve always tastes great." He is so completely wrong on that point that it makes me wonder if he has ever bothered to read any books on Branding and Marketing? Or, does he even understand the concept? I don't think so, that sort of thinking is like something out of the 1950s.

Let me get back to that point and prove to you why the other restaurants are not his only competition in this day and age and why trying to please everyone will fail with a simple example.

Imagine: It is your free time, say lunch time. You have one hour. There are so many things for you to do and to choose from on how you spend your one hour. You could go shopping or you could go to the gym, or for a walk, or to a coffee shop. You could go to a book store or meet friends, you could listen to music on your iPod or iPhone or Android or at a record store nearby. You could eat your own homemade lunch or, you could go to a restaurant. The choices are endless.

But, since it is lunch time, and you didn't bring your own lunch, you are hungry. 

In your immediate area there are 5 family restaurants. There's the Denny's, the Skylark, Gusto, Jonathan's or Royal Host... Those restaurants have everything, but I'm sure you'll agree that even though they do have everything, everything is not particularly delicious.

Besides the above, there's also a plethora of choices. There's a McDonalds (Definitely a niche restaurant), a standing soba shop, a delicious sushi restaurant, Chinese food, Indian food, Korean Barbeque, Japanese lunch of baked fish and miso soup, Wendy's, Pizza, etc...

Now, it's not rocket science but most people would go to the specialty shops. 

"How to triple your users and sales by doing just one thing..."

This movement of the market and people's tastes have dictated why this science of Branding is so very important.

Once again, take Apple Store for example. What if they thought that, "...there's all sorts of people who come here of all different ages. We need to please them!" Do you think Apple store would then start carrying Epson printers and ink cartridges? How about printer paper and office supplies? Should Apple start carrying Android phone or old-fashioned cell phones to please the older crowd? See? If one were to stop and think about this for just one second, they'd realize the absurdity of not specializing towards a niche market...

And, I'm sorry, food, music, fashions, etc. are all very broad topics. Anyone who thinks they can't be treated in a scientific fashion for Branding purposes simply just hasn't been paying attention.

For more on the Scientific Method and how Branding is a science, may I recommend: Brands and Brand Management - Contemporary Research Perspectives  

From the publisher review: "Very few books exist that meaningfully integrate the rich and vast body of scientific research and theories that have accumulated in the field, relating to both traditional and contemporary topics in branding. This book accomplishes that task, with contributions from leading experts in the science of branding, national and international. The book should appeal to all students, faculty, and marketing professionals with an interest in research findings about brands, and an interest in deepening their understanding of how consumers view brands."

Thanks to Kevin Riley for the TED link.

Why Not Specialize?

It never ceases to amaze me how people in this day and age still don't get it when it comes to branding and image; especially in this country. In Japan, image is critical to success. And the way to create an image is by focusing on one thing; what is it that you or your company do that you are the best at?

The keyword is focus.


Look around you. What companies are doing well? The ones with a strong brand and image; Coca-Cola (can you picture the red & white logo in your head?); Apple Computers (you can visualize an iPod or iPhone in your head); McDonald's (Golden Arches)... 


So why isn't your company doing the same? Why aren't you doing the same?


There's an ancient Zen saying that goes, "The hunter who chases two rabbits catches neither one." 


Don't get stuck in the idea that, since sales are down, the company and product must try to broaden appeal. That's a recipe for death.


And I will prove it to you.


Imagine that you live in a small town. In this small town there are 5 restaurants. They are all "family restaurants" (you know, like Denny's)... In fact, one restaurant is a Denny's... There's also a Bob's Big Boy, a Chili's, and a Jonathan's.... Anyway, like all family restaurants, you can go to any of these establishments and get just about anything that you want... They have everything.... But just like any Jack-of-all-trades, they can do anything, but they are experts at nothing... While the food is potable... It is still merely "okay." It is far from delicious....


Then, one day, in this town, five small specialty restaurants open up. One is an Italian restaurant; one is sushi; one is Chinese food; one is Mexican food; and the last one is a steak house.


Now, where do you go for lunch? The family restaurant that has everything - excepting nothing is especially delicious; or the specialty restaurant that has a limited menu but everything is fantastic?


It's an obvious choice.


Here's another example: Think about professional baseball players. They have "utility men" who can play several positions. Quick! Name one famous utility man? Can't? Neither can I. That's because they don't specialize and, as such, they are usually gone within a few years...


But on the other hand, you get a guy who can only pitch to, say, three batters, yet can strike them all out and has an ERA of something like 0.80 and you have a guy who makes millions of dollars a year and is a super-star.


Why? He specializes. That's all he can do is one thing.


But he is the best at it.


You and your business should become specialists too.


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Five Rules for Entrepreneurs and Entrepreneurship - How to Become a Entrepreneur

Worried about your job? Worried about the future? Join the club. You aren't alone. In a recent survey, 34% of all Americans were found to be worried about their jobs. So if you worry, you're normal. But I think there is a big difference between the worry a business owner or entrepreneur has about the economy and the standard company employee has about the economy. And that is because the average company employee, in many cases, has no control over whether or not they lose their job. Often times, company restructuring and decisions are made and terminations decided in offices five thousand miles away by people the employees don't even know or will ever meet.

Be disruptive and rough!

Entrepreneurs, self-employed and business owners have a better grasp over their situation and more control.

I have found through people I have met, and through my own experiences, that people who are self-employed or own their own businesses are generally more resolved and more confident about their future. Oh sure, like I said, in this economy everyone worries, and that is probably most prudent, but the self-employed or people who have learned to depend upon themselves are the most happy and confident.


So, if you are a company employee and you want to get started on creating your own business and perhaps setting yourself on the road to freedom, then today's short blog post is for you.


Here are my five most important rules for becoming an entrepreneur and entrepreneurship. These are the ones that I believe are the most basic to the success of starting your own business and actually becoming your own boss. I think there might be a few more rules that are good to know but, for now, these are the "five aces" (okay, four aces and a Joker), if you will, of the game as I see them.


The five most important rules are:


1) Try new things until you find what works
2) Be persistent as hell
3) Adapt & overcome
4) Always refine
5) Focus! And become a specialist 


Simple. Now, let me break these down and talk about each one for a moment.


First off, trying new things. You've decided that you want to start your own business but aren't sure what it is going to be. Fine. Try many new things. Did you know that Bill Hewett and Dave Packard of Hewlett-Packard got together initially and decided to make a new company but they didn't know what they wanted to make? They were completely unfocused and starting out making measuring devices like thermometers... They tried many things until they found some things that worked... The rest is, as they say, history.

Hey! Someone already beat me to these great ideas!

A few years ago, I decided that I was going to open a marketing company that focused on the travel market. I came up with a few ideas and then I was brash enough to arrange a meeting with a large, world famous airlines. I was unable to conclude a deal on the initial meetings. I was told that my presentation was "rough."


That was fine with me, actually. I wasn't insulted in the least. In my thinking I was trying something new and I had two goals: first to try to get the contract and; two, to at least learn enough from the initial meetings so that when I tried again at another company I would have learned enough from the first company to be able the get the deals. I saw it as sort of a "on the job" training and there's no better training than real-world. If you think this way then you'll realize that there is no such thing as failure, just the discovery of better ways to do things as you go.


As it turns out, I didn't get the deal at the first airlines. But, after the first meeting, I learned enough from my mistakes that I was able to land several big contracts with one European National Tourism Agency, one airline from China and the contracts for national campaigns for several big airlines. I think I ran a total of 20 campaigns (large and small) after the "failure" of the first approach to the first airlines.


By the way, a full year and one half after that first approach to the first airlines, I finally landed a massive national campaign for them at the end of last year and now they seem eager to participate in another big campaign later this year! That makes me very pleased.


That's the part of being persistent: You have to be persistent, but it's not good to be pushy. Always be available and always pass on information. That way, when your chance comes you'll be available to take it. Even after the first airlines rejected my offer, I still kept in contact with them and still passed along useful information. Whenever I thought I had a "deal they couldn't refuse" I passed along the information to them... Of course, they refused on some of the "deals they couldn't refuse" but it still allowed me to stay in touch and let them know that I was available and convenient.


So, staying persistent - but not pestering - is necessary. 


The third most important point is adapting and overcoming. In the case I gave above, after the "failure" of the first presentation, I went over that meeting in my head and "learned" what was good and I kept those parts and threw away the parts that were bad. I especially decided to work on my attitude and self-fulling prophesy. I decided to make it a rule that I would envision every meeting from now on each and every time - with no exceptions - before I went into them to create a positive outcome. Even though I almost always do this, I did not do that at the first airlines company that I went to. That won't happen again. I was too cocky and not focused on the goal enough. 


Some people might think that visualizing a successful outcome is silly, but it is not. I am a firm believer that visualizing meetings with new people is a key in creating positive outcomes... Perhaps it is akin to practicing a speech before you give it. I even visualize shaking people's hands for the first time and smiling and looking into their eyes!


Of course I visualize leaving the meeting with a great feeling and smiles on the faces of all involved.


The fourth point is about refining. That has a lot to do with number three. As you go along, making your presentation from company to company, you adapt and overcome but you continually refine your message and your presentation. Did you know that Colonel Sanders used this method 99 times before he finally made the sale that has become what Kentucky Fried Chicken is today? Ninety-nine times he "failed" but he kept trying and adapting and overcoming and he kept refining until one day someone said, "Yes!"


Oh, and did I mention that Colonel Sanders was persistent? I hope that I can continually keep up the fight even after 99 people say "No!" to me. Fact of the matter is that when that first airlines said, "No!" to me I was somewhat surprised. I knew what I had was powerful and I knew that if they said, "No!" that merely meant that I wasn't skilled enough at getting my message across. I had to refine (that is, after slapping myself on the forehead).

Colonel Sanders: He who laughs last, laughs best.

Finally, focus. You must specialize. I meet people all the time who are doing this and doing that and they can't figure out why they can't get ahead. Well, it is easy: they aren't focused. 


Here's a simple real-world example: Look around you at the restaurants. There's specialization shops and then there's family restaurants like Denny's. The specialization shops serve one type of food. Say, sushi, Italian, French, steak, etc. The family restaurant serves everything.


The family restaurant has its place but I don't think many consider it delicious. It is the specialization places one goes to for fine and delicious food. I have written more about this here.


To take the specialization example one-step further, how about professional baseball players? The so-called "Utility man" who can play several positions; they can play first base, outfield, catcher... Can you name one famous utility man? I can't. And utility men usually get paid the league minimum and are gone in a few years. But a specialist? Ah! That's different. Maybe a specialist can only do one thing well. Maybe the specialist can only throw 25 hard and fast pitches and can only last one inning but can strike out three batters... Oh, a guy like that will always have a job. A guy like that will get paid millions and be famous.


What does he do? He does one thing and he does that well. This is called "The Hedgehog Concept" you can read more about that here.  


And those are the five rules for entrepreneurs and entrepreneurship.


Some people will read this and ask themselves, "Well, okay, Mike. Now what do I have to do to get started?" I suppose to answer that question, there might be a sixth rule. That rule would say something like 


"You get started by doing." 


Or, as Yoda would say, "There is no try. There is only do."

As in my example above in going to the airline for the very first time, I think it would be foolish to expect that I would have had a 100% success rate (actually have batted almost 1000 since that first time) but we must be realistic and remember what our purpose is: We want success but we will also have to adapt and overcome, refine and be persistent. Get started by doing. Learn as you go. Get advice and read books.


There is nothing stopping you from being an entrepreneur excepting your own fears, indecision and hesitation.


The world needs entrepreneurs. There's definitely an job opening there for you.


This post inspired by Jeffrey Scott