Stefan Paul Jaworski, Director North America & Chief Brand Strategist. Masters Degree Marketing.
Walking across the cold, dark, and almost surreal battlegrounds, one sadly cannot help but step over the lifeless corpses and shallow graves of the combatants, as well as appreciate and even feel the dreams they had, efforts they gave, and the causes they were fighting for. Heartbeats racing, adrenaline rushing, people scurrying, orders being given, strategy and tactics changing, and all hands fighting for success. Yet, the battle lost and heartbreak. I might sound like someone speaking about walking across Waterloo or Normandy, but I am talking about the Marketplace and the corpses of which I speak are those of brands and their employees.
Almost like wallpaper, we never seem to notice the many firms and products (mostly new and some old) that fail- it is about 80%. Of course, the reasons are many: most being due to lack of capital, inexperience of management, mismanagement, a “wrong product or service” offered, paradigm shift (like roller skates being wiped out by roller blades), overpowering competition, or just plain bad timing and/or bad luck. However, few look at another, possibly more prevalent reason for company and/or product failure: poor strategic (and tactical) brand marketing and management. In an era where it is now accepted as fact that a paradigm shift has occurred forcing the reality that “Brand Strategy leads Business Strategy”, we must focus on the fact that many failures of companies, brands, and products are due to poor brand strategy (and thus brand management).
Looking carefully at the battlefield from this new frame of vision, a whole new landscape starts to appear and we see better explanations for the failure of the likes of Molson Brewing, IZOD, Kmart, New Coke, Oldsmobile, Crystal Pepsi, Digital Equipment, and many others. One such example in the making is that of McDonalds, which is on a collision course with disaster- a course entirely of its own making, with the help of its ad agency Leo Burnett. In business of building an American brand icon since the 1930’s, and a global symbol of American success and brand power, McDonald’s has for the last decade or so been under severe pressure as both a brand and a corporation. Basically, the argument for the ails of McDonalds has been that “fear of heart disease”, cancer, and now “low carb” have successively culled the rise of the “Burger and Fries joint”- first in America and now globally. In other words, that a paradigm shift has happened which has moved the traditional burger culture in a new direction- even though no such data has completely proven this hypothesis. Burgers are still a big, and even growing, business. However, from lawsuits to documentary films like “Supersize Me”, the damage just keeps coming: the predictable fall-out from a society that is obese, sick, and becoming more so, and one that blames corporations and their products for this problem (as opposed to themselves). Hence, many analysts and the media argue that the world is now on a health food “kick” that is part of a trend that cannot be stopped- and that past culprits like McDonald’s, Frito-Lay, etc. will have to change radically or become extinct. Therefore, radical decisions are being made by brands like McDonalds (with the less than sound advice of the trendy ad agencies like Burnett) to do radical things, fast, all in the name of “staying alive” and avoiding the predicted “extinction”.
As McDonalds agency Leo Burnett has said, “The fact that McDonald's is brave enough to even contemplate a creative idea that doesn't carry the arches shows its desire to shake up perceptions of the brand”. In my opinion, the step Burnett and McDonalds are taking is not brave- it is simply stupid and reckless. This “step” will ironically not achieve the goal of avoiding “extinction” as Burnett so confidently suggests, but in my opinion will accelerate the “destruction” of the McDonalds’ brand culminating in fifty years of hard work going down the drain. What is the step? In a world where the McDonalds ‘Golden Arches’ is the brand’s icon, logo, brand association key/point, and literally SYMBOLIZES everything the brand stands for- as well as being a leading icon of American nostalgia- Leo Burnett believes they should go (at least in the UK for now). And be replaced by what? None other than a question mark! …And the equally ambiguous tagline: "McDonald's. But not as you know it." Yes, a question mark (?)- of all things! In other words, replacing a decades-old, definite, powerful, closed-ended, confident, core value based icon and brand association point with a totally indefinite, undefine-able, open-ended, unconfident, questionable punctuation mark! Incredible! In other words, throwing out everything that is known, definite, differentiated, core value and lifestyle based for literally “nothing of meaning” as that is what precisely a question mark represents: nothing of meaning in itself, indefinite, open-ended, undefinable, and open to any and all kinds of interpretation. With their question mark logo for client McDonalds, Leo Burnett is forgetting the most basic of brand laws that even amateurs abide by: ALWAYS define yourself and never let anyone define you as 1). they will never be as merciful 2). you lose all control of every aspect of your identity. Never leave a brand and its identity open for definition and interpretation- and a question mark is simply pure open space! The “Arches” also are clearly associated with nearly every aspect of McDonalds’ brand history and core values, most of which (contrary to McDonalds’ and Leo Burnett’s belief) are positive.
It seems while being under pressure key decision makers have completely forgotten what a brand really is: a differentiated/unique personality, identity, belief system, “relationship central”, and a lifestyle. Over the last 5 decades, McDonalds has achieved brand milestones on a global scale that few even dream of including: an icon name and logo, well defined identity and position, literal ownership of their market (fast food), innovation leadership (drive in window, complete consistency, child play areas, etc.), and powerful brand-consumer lifestyle and emotional bonds. The Golden Arches are the literal embodiment of all of these vital brand aspects and literally represent the “gateway” into the McDonalds’ brand both emotionally and physically. Indeed, so powerful an icon McDonalds has become that the Golden Arches are recognized as a part of Americana globally- a literal embodiment of American culture, lifestyle, style, core values, power and influence that is ingrained into multiple generations. Hence, remove the Golden Arches as Leo Burnett is doing and you remove all of these hard earned, invested in, and vital brand associations. Replace them with of all things an ambiguous “question mark” and you literally kill the brand! Issues such as “changing diets”, socioeconomic trends, etc. have always been a part of brands doing business, so they are no big deal- or at least should not be- seen as a “given” which are naturally expected. How a brand’s managers (and their skill level) deal with such market realities is the ultimate mark and demonstration of their competency and thus value to the brand.
A smart brand evolves with such issues strategically and with great thought based on consumer and market insight (both qualitative and quantitative) with an eye to the past, present, and future (short and long-term). A smart brand remembers that what a market wants today may well not be what they want tomorrow- hence the adage “don’t sell next month for a good this afternoon”. A well managed brand even goes so far as to take advantage of such realities, turning challenges into future opportunities- but always using core values as the guiding light (as opposed to throwing them away as McDonalds and Leo Burnett are doing). Pepsi-Cola has weathered the significant challenges aimed at it from the “lower sugar” and “caffeine robbing bones of vitamins” trends very successfully via the use of line extensions Diet Pepsi and Caffeine Free Pepsi.
Currently, Frito-Lay, another global icon brand that makes “fast” and “fat” food snack products, is in exactly the same battle as McDonalds- probably even more so as its products are literally on every convenience shelf in America and beyond. The difference: does Frito-Lay dump its entire brand logo, icon, and history because of a dietary trend and replace it with something as ridiculous as a question mark (maybe a semi colon)? Of course not! Wisely, Frito-Lay has decided on a well thought out, strategic, “evolutionary” path (as opposed to “revolutionary” idiocy) creating a new direction of regular and healthy lines of its products with the help of famed dietary expert Dr. Kenneth Cooper, MD, MPH, one of the world's foremost experts on health, nutrition and exercise and founder of The Cooper Aerobics Center. Lays’ brilliant evolution path is very simple and to the point: they keep regular products unchanged for those who want to eat original/classic full fat products in moderation, while also offering the same products in a baked or light fat, trans fat free form for those wanting and needing a low fat alternative.
Wisely, the healthier snacks will carry identifier “Smart Snack Ribbon Label” to show this evolutionary and innovative path that will benefit many customers and bring new ones in. But the core values, Lays heritage, packaging, logos, messages, and brand identities stay essentially the same- and in fact become energized and even empowered to their customers and the market by responding to their desires, needs, and wants…by predicting and answering to their requests and needs as a good friend and brand should. Hence, the Frito Lay brand goes up a notch brand success-wise and its history, pedigree, and identity become even more relevant, respected, trusted, and internalized by consumers, the market, and society as positive (and thus become even stronger).
McDonalds, via its own weak marketing skills and wrong advisement from its ad agency, is sadly viewing its problems solely as a brand identity problem- as opposed to a product offering one. If the problem is that diets are changing (going less fatty) causing rebuke/backlash against unhealthy fast-food in general and thus its leader McDonalds, then McDonalds should address the problem from where it originates. In other words, like Frito-Lay, offer alternative healthier products alongside the traditional Burgers and Fries that the brand’s success and identity have been based on. Note, McDonalds has attempted to do this with a “healthy options menu” for several years consisting of salads, etc., but efforts are not as successful as they should be as often these “healthy option foods” have nearly as much fat as a standard burger when you factor in salad dressings, etc. Also, instead of a chemically-based milkshake that contains mostly artificial flavors, stabilizers, and ingredients, focus should be on offering a “real milkshake” made of milk, ice cream, and fruit” like in the old days. Instead of artificial cheese, fillers, and fries high in saturated and trans fat oils that clog arteries, McDonalds some time ago should have offered healthier alternatives across its product offerings- instead of waiting for pressure to come upon it (in other words, be “proactive” as opposed to “reactive” product wise). Most importantly, like any successful, multi-decade brand icon, McDonalds is way beyond being just about its products as we witnessed with the “New Coke” fiasco/ disaster- it is about a core value based identity and lifestyle that connect emotionally with people. And the Golden arches are a powerful part of that connection.
A smart brand strategy would be to discover from the “outside in” (from consumers, the market, and society) what the real problems are whether product, service, operations, delivery/channel, or brand, and then generate a solution that not only fixes the problem(s) but does so in such a way that it further endears and evolves the brand to the world around it- especially to its customers. I personally believe via research and my own experience that a large chunk of McDonald’s problem lies in a widespread “lack of consistency of cleanliness” among its thousands of locations. Indeed, ask any consumer who has been in a McDonalds and most will have a “dirty/filthy McDonalds story” to tell (backed by fact with some locations having been closed by health authorities). It is not unusual to see un-swept and aging floors, garbage like napkins, old French Fries, and used ketchup packets littered on the floor below your table, and bathrooms that are simply sickening with un-flushed toilets, filthy soap dispensers, cracked sinks, etc. Hence, the question immediately comes to patrons’ minds: “if this is what the public part of the restaurant looks like, what is the kitchen where they handle and make my food like?” The answer: in some cases, even worse! Indeed, with the franchise getting bigger and now thousands of independent owners stretched over a massive globe, it has become harder to keep vital brand standards- especially in terms of cleanliness and staffing. This is one of the biggest problems facing a global franchise in any segment, and hence the reason why legendary coffee seller Starbucks has kept every store corporate- allowing for strict control over (and thus consistency regarding) everything from brand identity, overall presentation, to staff training, cleanliness, branded environment, to quality of product made and delivered/sold to the customer. For Starbucks it has worked wonders with a brand almost as prevalent, if not more so, in global societies as McDonalds. Starbucks also keeps in close contact with the world around it at all times (“outside in approach”) whereby everything from its drink innovations to its branded décor, its choice of music, prices, to its locations being directed largely by what consumers want and need- as opposed to what ad agencies “think” is needed. Hence, Starbucks (and Frito-Lay) is about “evolution by strategy” as opposed to “revolutionary risk by untested hypothesis” (or “I Think” syndrome).
McDonalds is the reverse. In a world where brand means everything for success, McDonalds may be literally throwing out the baby with the bathwater and discarding its most valuable brand asset (its icon, identity, and heritage) which is a definite known for the unknown and indefinite symbolized by of all things a quite literal question mark (?). If a question mark logo is being used purposely to allow us make our own personal definition of McDonalds and its brand identity, I will take my lesson learned from the musician Prince and his fight with Sony and opt for “the chain formerly known as McDonalds”. Indeed, for us, McDonalds’ and Leo Burnett’s question mark logo replacing the famed Golden Arches icon is a supreme, revolutionary, misguided, and radical act as ever seen in the history of advertising and brand marketing- and probably the most foolish. Replacing the known, accepted, iconic, and legendary with the unknown (and thus open for negative definition) is simply the most effective way to kill a brand- even a legendary one like McDonalds.
-STEFAN PAUL JAWORSKI, DIRECTOR NORTH AMERICA & GLOBAL BRAND STRATEGIST, STUDIO X-TEMPORAL GLOBAL BRAND CONSULTING
Studio X-Temporal Global Brand Consulting is a Multinational Brand Consultancy that leads the marketing world in both practical application and ideation generation in brand management and strategy. Clients have included many of Asia’s and the World’s top brands of all sizes and across all segments such as Coca-Cola, Microsoft, Motorola, Panasonic, Apple, Budweiser, EXXON, TDK, Tsingtao Beer, Heineken, Human Talent PLC, Malaysian Telecom, The Hard Rock Café, as well as governments such as New Zealand, China, the UK, Dubai, and Malaysia. The firm is responsible for 14 industry- leading globally published books, as well as many highly regarded white papers, articles, and case studies appearing in prestigious publications from the Financial Times of London to the Multinational Business Review. The firm has offices across Asia, in the EU, and North America.
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