I hear the term "value" tossed around so much but rarely is anyone clearly defining it so that we can all objectively talk about it. It's almost the same feeling when I hear someone say, "Wow that's so cool!" I smile and love the excitement but then I stop to ponder: How is that person defining cool?
My thoughts on value are relatively simple: Value = Benefit and Price (btw, benefit is everything from service, innovation, quantity, quality, all those "beneficial" things, heh).
And the way we improve on value is:
(1) Increase benefit at the same price
(2) Decrease price at the same benefit
Yes, my definition may be a tad rudimentary but I believe it works. In addition, there is one step that needs to take place before plugging into this formula. The important step is defining how your organization and its users define benefit (it's sorta important to be on the same page with your customers). Then it should be mission critical to "work" (measurably) on ensuring you are constantly working towards refining and enhancing this...benefit. Here are some examples:
(1) Convenience - what does this mean? has the definition changed in 2011? And I'm not only speaking of a physical space on the street.
(2) Service - in the limited time you have to interface with customers these days, how are you ensuring you're optimizing your key consumer touch points? do you clearly understand the "customer journey?" oh and btw, who is the customer? how has this person changed?
(3) Product Innovation - are you working to improve upon your existing model to maintain relevance and attract new guests, keeping in mind never to alienate your core customer base, (e.g. model enhancements for automobiles, iphones, etc). This isn't the same as going into a new line of business...necessarily.
(4) Messaging - words are so important. synthesizing the (right) words will catalyze the right emotion. people will never remember all we said, but they will always remember how we made them feel.
Remember, the same shoe doesn't fit on every foot. So think critically about how your product or service works to separate itself from the rest of the wolf pack and above all remain laser focused on maintaining relevance in 2011.
Oh and by the way, in doing the above, there are many ancillary benefits (one of them being improving share holder's "VALUE"). :D *shrug*
Brand: A brand is something that lives in your head; "it" resides in the mind. It’s the mental association that represents a particular product or service. The brand's idea must be simple to understand (clear and concise) but above of all has to be meaningful.
Often not considered, but equally as important, is the degree in which the product or service is "relevant" to the consumer. Although it’s critical to establish a point of brand difference (how often do we here this?), more often then not the degreeof relevance is overlooked. Relevance is about talking to the primary consumers and calculating the number of consumers you need to appeal to in order to make a profit. The best brands all started small, with a select group of adopters, created a niche brand, and expanded from there. And in doing so, they became big, iconic-brands.
I.Apple
II.Mercedes Benz
III.McDonald’s
IV.Nike v. Blackberry
Consider this, sometimes it is better to be a niche brand and command hefty margins, from an elite group of buyers than to be all things to all people and put yourself in a commodity position; having only to fight a price war for profit.
Key Thoughts When Developing Brand Identities:
1.Innovation: A MUST! However, a lot of brands have developed products without assessing relevance. All that’s created is an identity crisis or “innovation gone bad.”
a.Segway (supposed to sell million but only sold in the thousands)
b.New Coke (why change the old formula; particularly when you’re the world leader) c. Crystal Clear Pepsi (ahhh we all remember this one)
2.Differentiation: Difference for the sake of being different won’t get a brand anywhere. Keeping in mind that even the best and well designed mouse trap in the world is "no bueno" unless it actually catches mice, yes?
3.Research: Research isn’t a panacea (not a fan of "paralysis by analysis") - know that: Consumers behave differently when facing a purchase decision than when they’re in a focus group. Leverage deeply your experience and intuition (often you'll know best). This is what happened when Wendy's offered fruit with their hamburger. The CEO later stated in an interview that the participants in their focus groups "just lied."
Assessment – Key Questions:
Lastly, it's imperative to to clearly understand what other brands occupy the same perceptual space in the mind.
Is your brand....
1.Innovative, Chic, and Useful
2.Conservative and Safe (white line)
3.Could it be on its way out???
Last note: being able to see and study the brand constellations, as opposed to staring at stars, is critical to the brand's future...not to mention it could also be a healthy dose of "reality check."
Rules number 1 thru 3 in the retail business: location, location, location. In retail, you cannot fix a bad location. A location in the back of a lifestyle center and away from the major street intersection isn’t the most ideal place to establish a new burger concept. Perhaps the thought was that this joint (burger joint that is) would be cool, contemporary, and hip enough that word of mouth would generate enough buzz, sort of like a New York City hot spot. Certainly this could still happen but missing are two key ingredients: a great concept and New York City. ExtraOrdinary Burger, also known as EO Burger, is really anything but extraordinary.
The edifice was adorned with jet black awnings with the words “Extra Ordinary” on the overhang. I thought it to be a nice touch. Up towards the front entrance and “voila,” hanging on the building facade, a large metallic/frozen burger that appeared to have lost a battle to Silver Surfer.
Walk inside and directly in front was a register counter with an exposed kitchen on the back side. It looked more suited to be an expedite island and the exposed kitchen near the front gives the sense you’re walking in through the back entrance of the kitchen. The queue is ill-prepared for a huge rush of guests, if there were more than 5 people at one register, the sixth man would be hanging outside the place. And I can safely suggest that hanging “around” a burger joint in the middle of the winter, in Dayton, Ohio is not ideal.
Suspended from the ceiling is a massive white canvas with enough verbiage to make the “Micro Machine” man want to quit his job. The menu layout is an utter (uh-hm) disaster. Not only was it tough to follow but it contained a large section dedicated to wine and beer. Dead smack in the middle of the board is a cartoon image of a talking chicken that professed the option of trading any of their delectable bovine selections for poultry; an awkward touch. It’s like walking into KFC and seeing an image of a talking cow that suggests you can order a bucket of sliders. It’s so unnecessary. The entire entrance experience of the EO Burger is wrong on so many levels.
Observing the space, nothing really made much sense. From the Japanese minimalism décor, two different dining environments, to the cheap red baskets, and the cheap flimsy white plastic utensils (really guys…really????). Yeap, it’s an enigma wrapped in idiot savant. Does that make sense? Well neither did the messaging.
Look left and you get upscale casual seating. Look right and you get a wannabe ritzy wine bar. The entire time I was there I couldn’t get my hands around how they were parlaying the design and menu with the customer journey. It just didn’t quite add up. Then it finally hit me. The entire concept is in fact supposed to be modern day New York City Steakhouse serving top grades of meat (“USDA Prime” is available) and fine wines; all contained in a trendy upscale casual environment with late nite appeal. The difference is they replaced the cut with ground. Talk about trying to get a square peg in a round hole.
The food is where it gets better. Customer satisfaction in our business is measured by the guest’s expectations vs. what actual occurs in the restaurant. I suppose I set my sights too high. I asked for the “Prime” grade burger. When the food arrived it was dripping in grease and the Yukon Gold fries should have been renamed YuGotCon’d Fake Gold Fries. Presentation was a huge failure as well. The serving tray was a simple cheap red basked and the plastic utensils were laughable…I actually did laugh.
Bottom line, this gig was far from water tight. I felt like someone turned in an incomplete assignment. And while I thought the interior (alone) looked modern and chic, it’s far better suited for a sushi restaurant than a premier burger palace. To go out on a limb and label your concept as ExtraOrdinary takes real guts. And while I applaud the ambition, there is little to like about this place. Things just didn’t appear to be well thought out. I compare this place to the likes of PoP Burger in New York City. PoP burger built a late nite atmosphere around a good burger. EO Burger built an environment first and thought of food last. If this place is really ExtraOrdinary, it’s only because there’s nothing else like it…and perhaps it’s best to just keep it that way.
I think they’ve hit it on the mark? They finally got it right and are catering to the class that returns the most buck to their pocket. It isn’t designed for Gen X or Gen Y but perhaps a slightly older generation that cares more about feeling welcomed, warm, and moves at a more steadier pace. I would say it’s a hybrid of Panera Bread, DD-Lite, and Starbucks. I sense, they’ve attempted to re-focus their brand to what their customer segment wants and not what Einstein thinks they want. In a nutshell, my guess is, Einstein’s true guests are aging baby boomers who are willing to pay a little more for quality food in a comfortable environment and a youth-“like” culture that needs a place to hang out, with class, of course. With that said, this isn’t a place for me or my friends but I-get-the-message, they aren’t necessarily talking to me. I am not a fan.
Bouncing back and forth between bagels and coffee, I think they found that consumers had lost touch with them after the breakfast day part. And while I think the company has known this for years (perhaps forever), they’ve not got it “right” until now? Evaluating their new menu boards, Einstein’s is boldly going strong after the other day parts (in particular lunch). I'm not a fan of images on menu boards because they take up valuable real-estate. And perhaps long term they’ll go without photos and this is all just a part of their long term strategy. But it is clear they are really promoting the “contents between the bun” aka sandwiches, panini’s, wraps, soups, salads, etc., and applying the photos to remind its guests “they” (the guest and Einstein’s – together) are entering a new dimension. I sense the feeling is that they want to create a new space in the quick casual segment? But is there really a new space or is it all just propaganda? So far I’ve seen no concept to do it like Panera. They’ve got the dough to prove it.
By placing the bagels on the front line, they continue to highlight their bagels as their core offering but have “upscaled it;” placing them in a neatly designed glass case. As well, their menu is subtly but strongly suggesting their healthy alternatives and coupled with the new sandwiches Einstein's is making the statement they’ve have finally migrated from Bakery to Café. This last portion, I believe, is the most significant point Einstein’s is attempting to portray as it bodes well with their baby boomer profile.
With the new interior design, implementation of 2 grab-n-go refrigerators, and now a drive thru, they are positioned to balance the “rush” and “plush”. This is also evident by the removal of most, if not all, of the “stainless steel” to white brick, more colors (blues and violets vs. yellowish-orange and all black). The feeling is less “attitude” and more “aptitude”. I can say no more…wait. They’ve even stopped playing the Italian-esque Panera like music and have migrated to soft contemporary, i.e. Jason Mraz, which is unoffending, current, with an added twist of 1980’s rock ‘n roll/power ballad.
They’ve moved their operational lines to the back and have addressed many of inefficiencies of the past. Their inefficiencies were mainly due to the constant and rapid menu extensions, which one could have assumed as being a company strategy ‘cause they’ve done it forever…or for as long as I’ve known them to exist. Nothing wrong with extending so as long as there is demand. With that said, Einstein Brother’s Bagels may have finally gotten her groove back. I remember my experiences of the past where food would (literally) fly through the air, employees would criss cross, everything appeared disjointed, and as my former boss would say, “a complete cluster ______.” (I’ll refrain from the specifics).
Lastly, I feel Einstein wants their customers to Recognize, Remember, and simply put: TASTE, the innovation. I think they’ve been waiting to exhale for a long time and just maybe they’ve got it right this time. But what matters most is that the gears are turning at Einstein’s and I’m certain they’ve put a pretty penny into R&D and have studied extensively to get to this pivotal stage. In the end, the proof will be in the pudding or translated to our language: dollars in the till. And while I’m not a fan, I’m curious to see what happens next…or the time after that…or the time after that.
