Factors behind marketing success

Prasanna PERERA, Marketing and Management Consultant, Chartered Marketeer, CIM U.K.

What makes some companies great in marketing and others mediocre? How do certain companies sustain their competitive advantage whilst others are constantly losing their competitive advantage? In this brief article, I will share some valuable insights with reference to world class organizations and brands.

PRASANNA PERERA

The Virgin Group and Sir Richard Branson are always in the news for their creative and dare devil approach to marketing. The "Virgin" brand has achieved a great deal of success, across different product/service categories. One of the main reasons for success is brilliant customer service, which is friendly, human and personalized.

Value for money pricing which is transparent (please note that value-for-money does not mean cheap) is another reason for success. Virgin products and services are always of a high quality standard. No compromises in quality when it comes to Virgin. One of the most valid reasons for Virgin's marketing success is relentless innovation. Virgin always challenges convention, with great ideas.

Moving on from Virgin, the next brand that has been really successful in Marketing is "Google." The primary focus of Google is on the customer and providing them excellent service. Corporate agility or speed/flexibility are a firm attribute at Google.

Google marketing executives hardly visit the head office. They directly report from their areas to their respective managers. The greatest lessons that Google brings us is that "Great is not enough." Google always strives to deliver more than expected.

Proctor and Gamble is a world class marketing organization. What lessons can be learnt from their history of over 165 years? PandG is a resounding success with brands such as Tide, Pampers, Crest, Pringles etc., PandG's relentless focus in on branded consumer products, with an unrivalled expertise in consumer marketing.

"Customer Focus" at all times, is the hallmark of success at "Tesco." Tesco firmly believes in delivering long term growth for shareholders.

One method they achieve this through is its own brand products. Further, Tesco has diversified beyond their core grocery business into areas where it can deliver exceptional customer value, such as financial services, clothing, healthcare and media. Overall, Tesco's success has been achieved by getting the basics of retailing right.

Many are not familiar with a brand known as "Innocent." Innocent is a young but fast growing "tasty little drink" company from the U.K. They sell over 100,000 smoothies every day and their market share is over 50%. One of their key successes was having global aspirations and making the best drinks in the world. They lived up to their brand name "Innocent" by refusing to adulterate their drinks in anyway. (100% pure crushed fruit, no concentrated juice, no additives, no nothing). Working hard and playing hard has also made the Innocent brand successful, and inspirational.

What about Apple? Apple has been successful based on delivering great products which are truly innovative. Apple has also been able to develop "brand evangelists," who are not just loyal customers but Apple fans. Once Apple builds a new product it keeps customers hooked on, by releasing up dated models very quickly. For example, iPhone 1, 2, 3 and 4. The competitive strategy of Apple is also a key factor of its success. Apple operates in a "niche" market based on specialization, which enables them to charge higher prices and makes greater margins.

"Stella Artois" is one of the best selling beers in the world, sold in over 80 countries. The brand has stood apart from the rest, by not competing on price. The promotional strap-line of the brand is "reassuringly expensive."

This theme proved highly successful and the management supported it by stronger investment in product quality. Design was used as a primary communication tool, with packaging initiative such as embossing the can and redesigning the crate box. The brand today holds about a 10% share of the total beer market.

Marketing Genius brands such as Virgin Stella Artois, Google, Tesco, Innocent and Apple share certain common elements that make them successful. These brands understand their customers intimately and strive to deliver value to customers at all times. Further, these brands do not compromise on quality and strive to provide customers the best quality consistently. Innovation and creativity are also hallmarks of these brands.

Packaging, process, product/services, distribution are all areas innovation is focused upon. Competitors are considered by these brands as "necessary evils." They are mindful of their competitors but are not afraid or obsessed by them. Finally, all these successful genius brands are firmly "positioned" in the mind-space of their target customer.