urban outfitters

One of Cult Marketing’s philosophies is to strategically disrupt markets. This is critical in getting attention with your target audience and is step one of any successful marketing effort – you must breakthrough the clutter. How do you decide where the boundaries are? When has a disruption strategy gone too far?

Most recently Urban Outfitters got into hot water with a vintage sweatshirt design featuring the Kent State logo and what appears to be spattered blood. Kent State officials publicly decried the tactic. “We take great offense to a company using our pain for their publicity and profit,” Kent State wrote in a statement on its website on Monday. “This item is beyond poor taste and trivializes a loss of life that still hurts the Kent State community today.”

Urban Outfitters have struck before with items including a “Ghettopoly” board game; a T-shirt that resembled the clothing that Nazis forced Jews to wear; and a hat that labeled vomiting as “Irish Yoga.”

Other retailers such as Abercrombie & Fitch have been famous for disruptive tactics. A&F featured naked teenagers in their catalogs, a t-shirt that agitated the Asian community (“Wong Brothers Laundry Service — Two Wongs Can Make it White”), and had guest articles written by porn stars offering advice on oral sex and other sexual techniques. As expected, many conservatives and members of the religious right were outraged.

So where do you draw the line on disruption tactics?

The Cult view on disruption is based on one primary factor – a keen understanding of a company’s target audience and their attitudes, desires and motivations. One of the reasons that the A&F tactics worked so well is that it appealed to the teenager and college target audiences, not the religious right. In fact, the disapproval of the religious right gave the tactics validity with its target audience. And, while it was considered edgy and inappropriate, it was just about sex which is a hot topic among all consumers, especially the younger consumers experiencing those emotions for the first time.

In terms of the Kent State sweatshirt, our question would be to their millions of consumers that loyally shop the store: Were you outraged by the Kent State sweatshirt design? Will it stop you from shopping there in the future? Our guess is that while the sweatshirt itself may not sell very well, the publicity will create enough curiosity to actually increase traffic. After all, don’t most Americans love a good scandal?

Thirty-One Gifts Convention

As I look out my office window in the Arena District in Columbus, more than 15,000 women are streaming out of Nationwide Arena. They are part of the annual national convention of a company called Thirty-One Gifts.

Thirty-One Gifts is a super-fast growing direct-sales company that has achieved explosive growth – and cult brand status. It began modestly in 2003 in the basement of founder and CEO Cindy Monroe.

Cult Marketing was engaged in 2010 to develop a deep understanding of the 31 Gifts “Consultant” as they call their independent sales representatives. At that time, the company had 23,000 consultants – now they have over 120,000.

Sales are projected to reach $1 billion in 2015. So, how has 31 Gifts done it? What are their secrets? Cult Marketing’s 13 Laws of Cult Branding can shed light on some of the keys to this phenomenal growth. Here are a few that apply:

Cult Law #1:

The Point Of View: Based on a strong story/rigid ideals and beliefs, often in opposition to some other “enemy”

The company was based on one immutable goal: to empower women. Even the name Thirty-One Gifts is based on a biblical proverb that “celebrates hard-working women who are compassionate, gracious and inspiring to their families and the people around them.”

The target consultant for Thirty-One is a woman who wants to improve her life and the lives of her family, while having the flexibility to maintain her traditional family role as mom and wife.

Who is the enemy here? During our interviews, the consultants told us that Thirty-One has given them a sense of self-worth, achievement, and the pride that comes with financial contribution and business success. The Thirty-One enemy is lack of self respect, low confidence and a diminished sense of personal value.

Cult Law #3:

The Community: Strong sense of belonging within the group. Members define themselves by this association.

Founder Cindy Monroe cites that Thirty-One provides two key benefits to consultants: community and relationships. These are powerful drivers in creating strong emotional connections to an organization.

Cult Law #4:

The Visionary: Defined leadership/Prophet/Visionary/Hierarchical structure

Many cult brands (think Steve Jobs, Mark Zuckerberg, Walt Disney) are based on the vision, power and personality of its leader. Cindy Monroe is the highly visible founder and vision-keeper of Thirty-One. She has deflected offers from financial investors because she wants the purity of her vision to remain intact, not to be influenced by ROI and other objectives. She claims she did not do this for the money – and she and her claim are authentic and believable.

Cindy is also the front person on the website and at their events, and has almost legendary status with the consultants.

Cult Law #7:

Love Bombing: A network that is supportive, uplifting, and forgiving

Celebrate. Encourage. Reward. These are the core values that Thirty-One embraces. These three words are critical in delivering the company mission to empower women. These values have helped develop a strong culture that supports and encourages women to achieve their dreams.
During the annual convention this cult law is seen in full force. Achievements are wildly applauded, consultants are encouraged to succeed, and prizes and awards are publicly given for special recognition.

Cult Law #11:

The Buzz: Built virally, largely on word of mouth

For many years, cult brands like Starbuck’s and Harley-Davidson never advertised. They grew organically through the most credible of all marketing techniques – word of mouth. This is not surprising when you consider that cult brands create brand evangelists who are passionate about their affiliations and want to spread the word to others. Thirty-One is a perfect example of a brand that is spreading virally.
How can your company use some of the Laws of Cult Marketing to grow the business? We’d relish the opportunity to help you figure that out. Contact Cult now.

 

[Burger King, please read this!]
This week’s news from Burger King perfectly highlights why the brand has been struggling for so long – Burger King engages ad agencies in a shoot-out to look for a new brand positioning strategy. This is an egregious mistake on the part of the Burger King management team. It’s brand suicide.  Here are some reasons why:

  1. The brand is way bigger than just advertising.  A true brand is holistic – it impacts everything: shopper marketing, product design and innovation, social media, promotions, associate behaviors, mobile, digital, the retail experience, package design, e-commerce, channel strategy, sales, PR, loyalty, advertising – and the list goes on.
  2. “If you have a hammer, everything looks like a nail.” Ad agencies have a limited focus and purpose.  Agency folks are paid for developing creative executions (i.e. television commercials) NOT holistic brand strategies. Even the agency brand/account planners are charged with the responsibility of helping produce better creative work, not defining the brand.
  3. Many companies use multiple agencies. If you have an advertising, digital, direct, social, promotions, media, PR, mobile, and shopper marketing agency, which one is in charge of the brand?  Is anyone even taking into consideration the needs of the brand?
  4. When an ad agency creates the brand position, the internal corporate brand team doesn’t own the brand. That’s why many sophisticated companies such as Kraft have taken brand strategy and planning in-house. Internal brand teams have access to information, goals, objectives and discussions that no agency can have. And, it allows companies to become agency-independent so they can work with whatever outside partners they want.
  5. Often, agencies are selected in a pitch process. This is the fastest way to guarantee that your brand will be a hit or miss proposition. In most cases, the agencies are left to their own devices to find the golden nugget that will resonate with consumers. This means whichever agency has the best creative wins, and creativity is subjective, not based on a sound and tested strategic platform – or even what consumers actuall want and need.
  6. As Deep Throat advised Bob Woodward,“Follow the money. Always follow the money.” What do you pay your agencies for? Not a holistic brand strategy, that’s for sure.

So how should Burger King and other companies manage their brand positioning? First, they should engage an independent brand strategy firm (call Doug McIntyre at Cult Marketing) to conduct a deep strategic dive, develop key insights, and define the brand strategy.  Then that brand platform can be provided to all the agencies they want to work with to develop creative executions across the various media channels. It will help the brand, the agencies, will produce better and more effective work, and help eliminate the abusive process of agency shoot-outs.

The departure of JCP President Michael Francis after just eight months on the job is the latest fallout from the retailer’s questionable new marketing strategy and ad campaign. Factor in other indicators – including JCP’s well-publicized 20 percent sales decline in the first quarter and the onslaught of negative customer feedback on its social media accounts – and it’s clear the consumers have spoken.

But why the reaction? After all, the ads are fun and memorable and they certainly had plenty of media weight.

In a word – strategy.

Let’s say you had a creative brief for the campaign, and it contained the old standby “What are we trying to convince consumers of?” In this case, JCP believed that eliminating sales, discounts and price promotions in exchange for an everyday low price structure would convince customers that they needn’t wait for a coupon in the mail to get the best deal.

Here’s the rub – CEO Ron Johnson publicly admitted that they didn’t perform any concept testing with consumers. Had they done so, I think they would have discovered that:

JCP customers like sales, discounts, and price promotions. The new strategy was disincentive to them.
Non-JCP customers don’t embrace the new pricing philosophy as a reason to shop there.

Using myself as an example, I have not been in a JCP for years, which means I should be a target consumer for this new campaign. But there are two big problems. One, an ELP strategy doesn’t resonate with me, largely because as a non customer, I didn’t know they didn’t have an ELP philosophy in the first place. Two, the reasons I don’t go there – my perception of old ugly stores, a boring selection of goods, and a brand I do not want to associate with – were not initially adequately addressed (although JCP recently announced plans to better explain its “merchandise initiatives,” including new and transformed brands and a reinvented in-store experience).

Too little too late? Maybe. This is definitely a case where some consumer investigation using a small sample of loyal, marginal and non consumers would have exposed the problems with the strategy well before the numbers did. Cult just initiated an insights “sample pack” in which we demonstrate our entire process with a limited number of consumers.  After the initial insights and findings are presented, the client can choose to green-light the complete process to validate the findings and insights.

Hey JCP, that would have saved you a few hundred million large.

In every culture throughout the world, people communicate through stories or “narratives.”  Join Cult Marketing’s Internationally recognized brand strategist, Jim Driscoll, PhD,  and learn how Narratology-based research can drive brand and marketing strategies, consumer segmentation, brand positioning, and new product development.

You’ll learn:

  1. How to execute an innovative process for developing breakthrough consumer and market insights
  2. How to define the optimal brand position
  3. How to develop the right messages to your customers

 

Date: September 20, 2012
Time: 11:30am – 1pm
Location:
Dublin Community Hall, Talla 2 Room
Located in the Dublin Community Recreation Center
5600 Post Road
Dublin, OH 43017
Get Directions

Non Members: $20
Enjoy a lunch provided by Mojo Tago – Gourmet made-from-scratch tacos.
This event is open to all professionals and students seeking a forum to network and discuss topics relevant to area marketing professionals.

About the Speaker:

Jim Driscoll is a strategy consultant specializing in marketing, branding and competitive strategy. Jim has worked in a variety of industries including consumer products, construction, high technology, financial services and the a