Good Design is Serious Business
I am having a hard time getting a great quote from A.G. Lafley, chairman and CEO of Procter & Gamble, out of my mind. In the “Masters of Design” issue of Fast Company magazine, he said, “I want P&G to become the number-one consumer design company in the world.”
The largest consumer products company in the world recognizes design. Design, innovation, or creativity, whatever you want to call it, is synonymous to me. Lafley is saying: we are listening to, reacting to, and even anticipating what our consumers want and need, even if they cannot articulate it themselves. He is also saying: we’ve got guts and we’re going to create brands and products for them too.
If P&G has the guts, why don’t other consumer products companies have it? All they have to do is look at P&G’s success and realize that they too can grow their businesses by doing their homework and adding the gut ingredient. Our society has evolved into a consumer-demand world, in which all of us are crying out for innovation, creativity, and design. Former IBM Chairman Thomas Watson said, “Good design is good business.” Lafley says, “Good design is serious business.” If people like Lafley and Watson recognize it, shouldn’t you? Other noteworthy CEOs like Jeff Bezos (amazon.com), Meg Whitman (eBay), Steve Jobs (Apple), Richard Branson (Virgin), Phil Knight (Nike) – to name a few – have this in common: they are visionaries, they demand distinction, they encourage change, they innovate, and they win.
Why is that? They are using design, innovation, and creativity better and more courageously than the conservative companies. Why is that? Most major corporations tend to be too bottom-line driven, expect overnight successes, and are risk-averse: they simply do not want to take chances. Look at the trends. Develop consumer insights. We’re in a fast-moving environment. We need convenience. We need portability. We care about the environment. We want our senses stimulated and our emotions to tingle. We are concerned about wellness. We’re looking for simplicity. We want fantasy and the ability to escape reality. Large ethnic communities want brands they can trust and that appeal to them. We want brands and products for me, myself and I. We want brands and products that make our friends envious. We want to be pampered. We want champagne on a beer budget. And so it goes.
Challenging the traditional world of brand marketing in virtually every consumer product category, private-label brands have shown that they have what it takes too. No one needs to talk about the original private-label brands with their plain wrappers, modest communications, and super-low pricing. What you need to talk about is how they are now taking risks and communicating to their consumers in a way that portrays quality in brand/product imagery, and at an affordable price. They are often both your customers and your competition, and they are winning, too.
Major retailers like Target, Wal-Mart, Home Depot, Lowe’s, Staples, etc., have developed private-label programs that are engaging. Supermarket chains like Ahold, Albertsons, H.E.B, Safeway, Whole Foods, and Wegmans (to name a few) have done outstanding jobs of creating excellent products, coupled with highly competitive brand communications and retail experiences, that are captivating. Some 41% of today’s consumers admit to being private-label buyers vs. 36% five years ago. Why? These retailers are treating their brands like national brands, with top-notch advertising, promotion, and packaging. Price? Pricing may be lower than that of national brands, but not always. Low, Low, Everyday Pricing can have a negative impact on some consumers. It seems like the old “You get what you pay for” phenomenon is still in the consumer’s mind. If the price is too low, then they reckon that the quality must not be there. In many cases, being a premium brand has greater opportunity for innovation and breakout opportunities. RedBull broke the mold for pricing in the highly competitive beverage industry that operates on thin margins
Other tactics that cannot be overlooked are the sometimes-quirky retailers like Stew Leonard’s and Trader Joe’s. In these two cases, they have taken traditional grocery retailing into the world of entertainment. Continuously innovative, always focused on customer service and making the shopping experience truly unique (along with quality products), they have developed a cult-like following of customers. Both Leonard’s and Trader Joe’s have had the nerve (guts) to do things differently by challenging the norms and creating a customer following with an enormous financial reward.
So, dig deep. Do a gut check and innovate.
Jack Vogler is Senior Vice President of BrandLogic (www.brandlogic.com), a brand consulting and communications firm based in Wilton, CT. You may contact him directly at ([email protected]).
