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McDonald’s Needs To Rethink Its Value Strategy

A recent article in The Wall Street Journal reminds us that understanding value is critical for brand viability. The story focuses on McDonald’s. According to the reporters, the V (Value) in Ray Kroc’s QSC and V (Quality, Service, Cleanliness, and Value) has vanished. McDonald’s is struggling to recapture its customer-perceived value positioning. This is a truth: creating, promising, and delivering value is a marketing imperative. Every brand should strive to offer the best value to...
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Marketing vs. Finance: United’s Plus Points Problem

In my Marketing Strategy class at Kellogg, I spend a significant amount of time exploring the critical link between finance and marketing. It is impossible to be an effective marketer and business builder without a deep understanding of financial considerations. United’s Plus Points program is a perfect example of why this link is so critical. United Plus Points In 2019, United rolled out Plus Points. This Mileage Plus program replaced a system of global and...
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How Brands Can Use Uncertainty To Create Relevance

When rapid and disruptive change occurs, marketers are handed an extraordinary moment to align themselves with percolating consumer needs when the openness to engagement is fresh. This relevance breakthrough is happening right now — and is unleashed when brands work to fill the fractures in consumer confidence with empathetic support. Underscoring this opportunity is one of the most significant universal marketing insights we have about consumer behavior. There is an all-encompassing human desire for certainty...
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Kraft Heinz: A Case Of Brand Mismanagement And Value Destruction

Iconic American brands are under pressure. Some of our most beloved and well-known brands are facing uncertainty. There has been a Sotheby’s auction-like atmosphere surrounding the future of American main meal and snack food brands. Kellogg’s, a brand with a storied American history, is being sold off in two pieces: its snack food portfolio going to Mars for a reported $30 billion, while Kellogg’s main meal foods, cereals and such, are off to Italian confectioner,...
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Why Convenience Rules The Day

From all my years in research and consulting, I think I’ve learned a thing or two about marketing worth sharing. Enduring fundamentals, mostly yet often overlooked. So, this year, I’m sharing some for your consideration. I hope they’re helpful. This week’s thought: Convenience rules. Convenience trumps everything. No matter how innovative or cheap a brand may be, if it’s not easy to use, it will fail. I learned this early in my career. My second...
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Brand Architecture: A Strategic Tool

As a CMO or Marketing Director, you’ll know that companies tend to get more complicated as they grow. You may have inherited a chaotic brand portfolio, one that has grown arms and legs from multiple acquisitions, innovations, or the isolated actions of siloed business units. There may still be legacy names in use and parts of the business that have never been fully integrated. Now it’s your job to bring clarity, drive growth, and make...
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Kellogg’s Cereal: A Story Of Missed Strategic Opportunities

WK Kellogg – inventor of cereal – is being bought by Italian candy maker Ferrero for the soggy-sounding price of $3 billion. Here are two big lessons from the end of a company that once dominated an entire aisle in grocery stores: 1. Businesses have a shelf life – All the preservatives in the world weren’t going to save Kellogg’s cereal, which tied itself too tightly to two very off-trend components: sugar and milk. To give...
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Apparel Resale Brands Drive The Future Of Shopping

Apparel resale is a robust category centered on the ability to sell and buy pre-worn clothing that is in good condition. Apparel resale is also the experience of seeking and finding unique items that make a personal statement.  Plus, there is the “hunt” for the unique gem. In certain stores, apparel retail is known as consignment. Consignment stores tend to pop up in affluent towns. Anyhow, the idea of shopping for your wardrobe at “resale”...
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