Posted by Scott Dunn on December 23, 2008
The keepers of Dr. Pepper’s brand flame blew it.
They pledged a free can of their soda for every American if a new album—
“Chinese Democracy” by Axl Rose”— would be released by the end of the year. They didn’t think that would happen, but it did. So Dr. Pepper told their fans to go to their website within 24 hours for a coupon redeemable for their treat.
But the site crashed, and customers tell of being blocked for four hours from the site and from a customer service phone line.
The album’s lawyers sent on irate letter to the soft drink maker, complaining about its “appalling failure to make good on a promise it made to the American public.”
Dr, Pepper broke the most important rule of branding: ALWAYS DELIVER!
· Screw with the product. Little incremental reductions of quality add up to blandness.
· Don’t thank users, take them for granted. (You should remind them how grateful you are to be treasured by them.)
· Be scarce. Don’t produce enough, have holes on the shelf.
Will this glitch be end of Dr. Pepper? No, but it’s certainly not good for it. It’s a little chink in their brand loyalty. A brand should be your friend, one you can count on, every time.
A brand is nothing more that a promise. It’s a pledge of future quality, based on past consistent delivery.
I tried to think why Dr. Pepper goofed. I guess they didn’t plan for success. They didn’t think through the consequences—what would happen if the promotion works too well?
If I’m in charge of keeping a brand’s flame (and future) alive, I should worry a lot. What could go wrong here? Will there be unintended consequences if it succeeds?
After I worry enough, then I should err on the side of victory.
George Lemmond
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Posted by Scott Dunn on December 23, 2008
Does WalMart force thousands of small stores out of business? Or do their customers do it for them? The lesson is that you can’t compete with the big guys on price and variety when you don’t have a big box or big bucks.
The internet makes things even tougher for the small ones because comparison is so easy.
Here’s a story about a little guy. His name is John Lamb and he runs “Bagel Boys,” right next to a Starbucks in the Atlanta suburbs. Here’s why he is successful, and this is a template for anyone who wants to survive and prevail:
He has a great distinctive product. He worked for a big bagel chain for years, so he knows all their secrets. He knows how to make a better product even though it costs more.
He knows his market. Location is key. He chose a high traffic spot right next to a Starbucks! He stole some of their customers, and he’s proud of the comparison and the choice. The moral—don’t hide it, flaunt it!
He knows his customers and how to serve them. He calls most of them by their name, and they say, “Hi, John.” His presence is there.
He lives his business. It’s personal. The “Bagel Boys” are literally his boys. Life sized pictures of his adorable sons are the art works of his décor. It depicts them joyfully turning dough into bagels.
He sticks to his guns. He sells tasty sandwiches and salads, but he closes shop at 3:00.
“Nobody eats bagels for dinner,” he says. If Burger King wants to stay open ‘till 2 AM, that’s their problem. “I have a life after work. I want to go home with my boys.”
He knows where he’s going. I’d bet his formula works. He’s looking for a second location, and possibly franchising is in the future. But I can’t see him trading his life for a position as a corporate executive.
He has the secret. He works hard, and he smiles. “I love this business,” says John Lamb.
George Lemmond
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