Tag Archives: brand management

by | Thursday, March 9, 2023 · 8:10 am

How to Apologize in Business

Everyone makes mistakes. Every company makes mistakes. It happens. But what should happen after the mistake? Should apologies be made? How should the apology happen?

It’s not unusual for mistakes to happen inadvertently. This past holiday season Graza, a startup company that produced squeezable bottles of extra-virgin olive oil, made a mistake. It shipped holiday gifts late – and badly packaged – disappointing many customers and turning away prospective new customers.

The company’s chief executive decided to take the apology into his own hands and apologized to every customer who had purchased the products within the previous 60 days and asked for a second chance. He sent a 835-word apology to more than 35,000 customers. He wrote it honestly and didn’t worry about crafting the perfect letter. It came from his heart.

The results were also heart-warming. Within minutes of sending the message, hundreds of customers responded, thanking him for his honesty. Most of the customers also pledged to continue to support Graza and buy its products.

What makes a good apology?

  1. Say you’re sorry for what you did.
  2. Show you understand why it was bad.
  3. You can explain, but don’t make excuses.
  4. Say why it won’t happen again.
  5. And offer to make up for the mistake.

Mistakes happen. Apologies should follow.

How would you apologize?

Group Activities and Discussion Questions:  

  1. Discuss what happens when a company makes an error in its marketing or business.
  2. Check out Graza’s website: https://www.graza.co/
  3. Show the Graza apology letter: https://s.wsj.net/public/resources/documents/GrazaApologyEmail.pdf
  4. Divide students into teams. Have each team research a time a company made a public mistake that annoyed its customers.
  5. Another example: Southwest Airlines flight cancellations over the holidays: https://www.npr.org/2023/01/04/1146865858/southwest-airlines-apologizes-and-then-gives-its-customers-frequent-flyer-points
  6. Now have each team craft an apology.
  7. Include the wording, the placement of the apology, and any potential remedies for customers.

Source:  Cohen, B. (12 January 2023). What happened when the olive oil startup apologized. Wall Street Journal.

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by | Tuesday, November 29, 2022 · 7:50 am

2022 Top Global Brands

As marketers, we know that brands influence consumer purchasing decisions. But really, what is a brand? Does a brand have a financial value? Does it drive growth?

These are critical questions that drive the strategic marketing decisions of corporations around the world. In general, marketers define brand as the position that a company/product holds in the minds of the consumers. It follows then that if the brand holds a position in consumers’ minds, then it would definitely translate into a financial value for companies.

Each year, Interbrand does a financial analysis that seeks to define, in dollars, the value of a company’s brand – the result is the annual Best Global Brands ranking. In order to be included in the report:

  • The brand must be global – it must have successfully crossed geographic and cultural boundaries.
  • At least 30% of revenue must come from outside the brand’s home region.
  • The brand must have a significant presence in at Asia, Europe, and North America, as well as geographic coverage in emerging markets.
  • There must be sufficient publicly available data on the brand’s financial performance.
  • Economic profit must be expected to be positive over the longer term, delivering a return above the brand’s cost of capital.
  • The brand must have a public profile and awareness above and beyond its own marketplace.

Interbrand’s brand valuation methodology seeks to determine, in customer and financial terms, the contribution of the brand to the company’s business results. There are three key components in the methodology for the valuations: analyses of the financial performance of the branded products or services, of the role the brand plays in the purchase decision, and of the competitive strength of the brand.

Brands in the top five  in 2022 include Apple (number one for the 10th consecutive year), Microsoft (moving up a spot to number 2), Amazon, Google, and Samsung. Indeed, the top 10 brands have a cumulative brand value greater than the combined value of the 90 brands.

The fastest risers from 2022 in terms of brand value percentage change are Microsoft, Tesla, Chanel, Ferrari, Lego, Google, Hermes, and Dior. New entrants to the list in 2022 include Airbnb (#54), Red Bull (#64), and Xiaomi (#84).

How many did you correctly guess?

Group Activities and Discussion Questions:

  1. Ask students to define “brand.” What is it? Does it have value to a company?
  2. Have students take out a piece of paper. Ask them to choose what they think are the top 10 most valuable brands in the world.
  3. Then show the top 10 list from the Global Brand report: https://interbrand.com/best-global-brands/
  4. How many did they get correct? What surprised them?
  5. Show a video on the methodology used to evaluate brand value: https://youtu.be/tK2ozWQ0HA4
  6. Show students several of the sections within the site and view the videos as a class.
  7. Divide students into teams and assign each team an industry category to examine: automotive, apparel, beverage, electronics, energy, etc.
  8. Have each team present key findings from the industry sector they examined.
  9. How can these findings be applied in marketing strategies?

Source: Interbrand.com; PR Newswire

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by | Wednesday, November 16, 2022 · 8:47 am

Gen Z’s top 20 brands

Marketers recognize the importance of understanding demographics when deciding on target markets to pursue. Age is a significant factor as different generational cohorts have different tastes, aesthetics, expectations, and values. While different research firms may define the age cohorts slightly differently, the most-often cited years for Gen Z are 1997 to 2012, making Gen Z between 10 and 25 years old. This group is just forming their tastes and solidifying their values. This of course leads them to favor certain brands and companies over others. But which ones are their favorites?

Since this group makes up a large portion of traditional college students, it is critical for marketers to understand which brands they favor and why. Their evolving preferences can indicate how companies should adapt to the new group of consumers.

A recent study done by Morning Consult, which fields tens of thousands of surveys around the world, measured Gen Z’s favorite brands.  Data was gathered between May and August, 2022, with an average sample size of 2,031 Gen Z adults born between 1997 and 2004. Key insights and rankings include:

  • Tech brands are tops with Gen Z. The most favorable brand is YouTube at 86% favorable impression.
  • Major retailers such as Amazon, Target, and Walmart have high ratings hovering around 80% favorability.
  • In particular, gaming brands hold strong sway, along with food and beverage brands.
  • Top 10 most favorable brands: YouTube, Google, Netflix, Amazon, M&Ms, Walmart, Target, Doritos, KitKat, and Oreo.
  • Top 10 with Gen Z men: YouTube, Gatorade, PlayStation, Google, Walmart, Netflix, Microsoft, Amazon, Nike, M&Ms.
  • Top 10 with Gen Z women: YouTube, Google, Netflix, Target, M&Ms, Doritos, Amazon, Oreo, KitKat, Walmart.

Which brands are your favorites?

Group Activities and Discussion Questions:

  1. Poll students: What are their favorite brands? (Note: You might have students break into groups to arrive at a list of 20 brands.)
  2. Link to download the report from Morning Consult: https://go.morningconsult.com/2022-q3-pg8764a1-gen-z-favorite-brands-download.html
  3. Divide students into teams and have students analyze a data segment in the report. Teams can present their insights to the class.
  4. Have teams choose a brands that is NOT in the top (i.e., cars, household goods, consumer product companies).
  5. How can these findings be used to market weaker brands to Gen Z consumers?

Sources:  Jackson, S. (2 October 2022). From Amazon to Skittles, a new survey of the top 20 brands among Gen Z adults shows tech and snack brands reign supreme with the demographic. Business Insider.; Morning Consult. Gen Z’s Favorite Brands.

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