“No one will follow you if you don’t know where you are going,” – Jack Trout
The Importance of a Branding Strategy
Jack Trout was a revolutionary. You’ve probably never heard of him, but you’ve definitely heard his ideas. Trout was an advertising executive for General Electric who eventually started his own agency and developed the groundbreaking theory of product positioning and branding strategy. Together with Al Ries, he published a series of articles in the late 70’s that would later become the book Positioning: The Battle for Your Mind. Positioning led the shift from push marketing to pull marketing, with brand strategy at its core.
Today, having a coherent brand strategy is one of the most important things you can do to move your business forward. Sadly, many companies don’t realize this until it’s too late. Far too many businesses feel a brand strategy is some ethereal thing that’s almost too hard to fathom – or afford. The reality is just the opposite.
Branding Basics
Brand strategy is a lot of things, but at its heart, is one simple concept: Your brand is whatever your customers say it is. Formulating an effective brand strategy can be a game changer in today’s crowded markets. This is especially important for mid-market companies who need to differentiate themselves from competitors.
Much of Trout & Ries’s work explored ways to make a brand memorable. They discovered the best way to be remembered is to be first in your prospect’s mind. Brands are built by being first in a product or service category. You don’t need to be the first to enter the marketplace, but you should strive to be first in the consumer’s mind.
“Look for an open hole in the mind and be the first to fill it,” – Al Ries
At Groove, one of the first things we request from new clients is for them to describe their brand as an elevator pitch. This is the golden moment when we hear the statement that truly differentiates the product or service in the consumer’s mind. This is important because branding is more about getting your customers to see you as the only company providing this solution than merely choosing you over your competition.
Laura Busche, author of Lean Branding, put it best: “A brand is the story that consumers recall when they think of you.”
One of my favorite tools for developing a branding strategy is a positioning model. First, answer these three questions about your company:
What is it?
What are the benefits to the customer?
What is your company’s personality?
Once you can answer these questions, it’s time to refine. Eliminate any fuzzy words and make it crystal clear. Gibson Biddle, the former VP of Product Management at Netflix, suggests each of these descriptions be no more than three words and should be developed as if your audience is a sixth-grader. Keep it simple.
Once you have nailed down the language to define who you are, you should define the Brand Pyramid. The Brand Pyramid is a way to look at your company as a customer would. What are the product attributes? What are the benefits? How do I feel after I use it? At the top is the Brand Idea – the essence of what your company is. Biddle also refers to this as the “something bigger.” This description should be inspirational and define the true north for the brand you’re building.
Start at the bottom and work your way up, finishing with the “something bigger.” Below you can find the pyramid Biddle helped create for Netflix:
Once we’ve completed this exercise, we have an idea as to what the brand is and the value it provides. From here we create the brand story. The brand story has three parts: problem, solution and success. This should be no more than 750 words. It should speak to the brand idea, the essence and the something bigger that you do. It should also position your brand as the answer the the problem – the solution to fill the open hole in the mind. The brand story shouldn’t be the literal history of the company, but should instead be the reason the company was created in the first place.
“A branding program should be designed to differentiate your cow from all the other cattle on the range. Even if all the cattle on the range look pretty much alike.” – Al Ries
Today’s marketplace is crowded. For that reason, people want to have relatIonships with companies they like, trust and understand. Don’t be afraid to say who you are. What does it do for people that other brands simply don’t do? Why is it important? Tell that story. Be authentic.
Know where you’re going, and others will follow.
Interested in learning how Groove can help build, revamp and refresh your brand? Just fill out the form below to get in touch.
“No one will follow you if you don’t know where you are going,” – Jack Trout
Amazon’s Impact on Global Supply Chains and Logistics
Amazon, the global e-commerce behemoth, has transformed not only the way consumers shop but also the intricacies of global supply chains and logistics. Since its inception in 1994, Amazon has grown from a small online bookstore to a trillion-dollar enterprise that has disrupted industries across the globe. Its influence extends far beyond retail, profoundly impacting supply chains, logistics, and even the environment. This article explores Amazon’s multifaceted impact on global supply chains and logistics, examining how the company has reshaped these industries and what this means for the future.
The Evolution of Amazon’s Supply Chain
Amazon’s supply chain is one of the most sophisticated in the world, characterized by its efficiency, speed, and scale. The company has invested heavily in technology and infrastructure to build a supply chain that can deliver millions of products to customers in a matter of hours or days. This rapid delivery is made possible by a vast network of fulfillment centers, sophisticated inventory management systems, and a logistics arm that rivals traditional carriers like FedEx and UPS.
One of the key innovations Amazon has introduced is its Fulfillment by Amazon (FBA) service. FBA allows third-party sellers to store their products in Amazon’s fulfillment centers, with Amazon handling the picking, packing, and shipping of these products. This service has not only made it easier for small businesses to reach a global audience but has also significantly increased the volume of goods flowing through Amazon’s supply chain. As a result, Amazon has become a central hub in the global supply chain, connecting manufacturers, suppliers, and customers across the world.
Disruption of Traditional Logistics
Amazon’s influence on logistics is equally profound. The company’s relentless focus on speed and efficiency has forced traditional logistics providers to rethink their strategies. In many cases, Amazon has bypassed traditional logistics networks entirely by building its own. Amazon Logistics, the company’s delivery arm, has grown rapidly in recent years, with a fleet of planes, trucks, and delivery vans that allow the company to control every aspect of the delivery process.
This vertical integration has enabled Amazon to offer services like same-day and two-hour delivery in many urban areas, setting a new standard for speed in the industry. Traditional logistics providers have struggled to keep up, leading to increased competition and innovation in the sector. For example, companies like FedEx and UPS have had to invest in new technology and infrastructure to remain competitive, while others have formed partnerships with Amazon to leverage its vast logistics network.
Amazon’s logistics network has also expanded globally, with the company establishing regional hubs and fulfillment centers in key markets around the world. This global expansion has allowed Amazon to offer faster and more reliable delivery services in regions where traditional logistics infrastructure is underdeveloped. In many cases, Amazon has played a role in building out this infrastructure, partnering with local logistics providers or investing in its own facilities.
Impact on Global Supply Chains
Amazon’s impact on global supply chains extends beyond logistics. The company’s demand for speed and efficiency has rippled through the entire supply chain, from manufacturers to suppliers to retailers. This has led to significant changes in how companies operate, with many adopting new technologies and strategies to keep up with Amazon’s pace.
One of the most significant changes is the increased reliance on automation and technology in supply chain management. Amazon has been at the forefront of this trend, investing heavily in robotics, artificial intelligence, and data analytics to optimize its supply chain operations. For example, the company’s use of robotics in its fulfillment centers has reduced the time it takes to pick and pack orders, while its AI-driven demand forecasting tools help ensure that the right products are always in stock.
This emphasis on technology has influenced other companies to follow suit, leading to a wave of digital transformation across the industry. Manufacturers and suppliers are increasingly using data analytics and AI to optimize their operations, while retailers are adopting new technologies like blockchain to improve transparency and traceability in their supply chains.
Another significant impact of Amazon on global supply chains is the shift towards a more customer-centric model. Amazon’s focus on the customer has forced companies to rethink their supply chain strategies, with many now prioritizing speed, convenience, and flexibility over cost. This has led to the adoption of new fulfillment models, such as just-in-time inventory and dropshipping, which allow companies to respond more quickly to changes in customer demand.
The globalization of Amazon’s supply chain has also had broader implications for international trade. By connecting sellers and buyers from different parts of the world, Amazon has made it easier for companies to access global markets. However, this has also led to increased competition, with companies now competing on a global scale. This has put pressure on manufacturers and suppliers to lower costs and improve efficiency, leading to changes in how goods are produced and distributed around the world.
Environmental and Social Implications
While Amazon’s impact on supply chains and logistics has been largely positive in terms of efficiency and convenience, it has also raised concerns about the environmental and social implications of its operations. The company’s emphasis on fast delivery and the constant movement of goods around the world has contributed to increased carbon emissions and environmental degradation. In response to these concerns, Amazon has committed to achieving net-zero carbon emissions by 2040 and has invested in initiatives like electric delivery vehicles and renewable energy projects.
However, critics argue that these efforts are not enough, and that Amazon’s business model is fundamentally unsustainable. The constant pressure to deliver goods faster and cheaper has led to concerns about the working conditions in Amazon’s fulfillment centers and the treatment of delivery drivers. Reports of long hours, high injury rates, and low wages have sparked protests and calls for better labor practices across the company’s global operations.
The Future of Supply Chains and Logistics
As Amazon continues to grow and evolve, its impact on global supply chains and logistics is likely to deepen. The company’s investments in technology and infrastructure will continue to set new standards for speed and efficiency, forcing other companies to innovate and adapt. At the same time, the environmental and social challenges associated with Amazon’s operations will require the company to rethink its approach to sustainability and labor practices.
In the future, we can expect to see more companies adopting Amazon-like supply chain strategies, with an emphasis on speed, technology, and customer-centricity. However, these changes will also require a greater focus on sustainability and ethical practices, as consumers and regulators increasingly demand more responsible business operations.
Conclusion
Amazon’s impact on global supply chains and logistics is undeniable. The company has reshaped the industry in its image, setting new standards for speed, efficiency, and customer service. While these changes have brought many benefits, they have also raised important questions about sustainability and labor practices. As the world’s largest online retailer, Amazon will continue to play a central role in the future of global supply chains and logistics, driving innovation and change across the industry.
