Praise from the First Edition of -...

Praise from the First Edition of Six Rules for Brand Revitalization

“The six rules for brand revitalization have been validated in a number of key turnarounds. They are indispensable in today’s recessionary times. A must read for every manager who confronts declining brand sales and profitability.”

—Jerry Wind, The Lauder Professor and Professor of Marketing,The Wharton School, University of Pennsylvania

“The automotive retail industry has been trying hard to change more than a half century of negative image caused by some tradition of customer-unfriendly practices and unfavorable media coverage. We have combined Larry’s branding concept and his six rules with our company’s customer-first heritage and are making significant progress.”

—Shau-Wai Lam, Chairman and CEO,DCH Auto Group

“Light tells the story of the McDonald’s revitalization in a way that makes it seem like you were there. With his depth of experience and insight, he extracts principles that are applicable in any situation. If your brand is stagnating or in decline, this is a must read.”

—David J. Reibstein, The William S. Woodside Professor andProfessor of Marketing, The Wharton School University of Pennsylvania

“Larry and Joan have laid out a great set of guiding principles for any business executive—whether they are revitalizing a brand or making sure it stays relevant.”

—Russ Smyth, CEO, H&R Block;former President, McDonald’s Europe

“Brand revitalization—impossible to accomplish without the Executive Suite’s overriding desire for a strong/clear brand platform and execution of the brand that recognizes the company’s potential for risk and rewards.

“Management must have the ability to not only possess the vision but allow and encourage others to express the brand through many of the touch-points to customers, employees, vendors, and the media. It’s fundamentally important to realize that although management should be the steward (caretaker) of the brand, it’s not the sole owner.”

—Steve Bagby, President,BAGBY ideas >360°, Chicago, Illinois

“The notion that a strong brand is the difference between business success and failure is truer today than ever before. This book not only offers a unique insight into how the McDonald’s brand was successfully revitalized but, even more importantly, it describes six very useful rules for how to revitalize any brand.”

—Hans Straberg, President and CEO,Electrolux AB, Sweden

“This book is a must-read for anyone working with a brand, be it weak or strong, new or mature. The dynamic duo of Larry Light and Joan Kiddon share their keen insights into brand thinking and execution in a real-life example in which they turned around one of the world’s best brands. Larry and Joan provide a good thought process to ensure your brands perform, grow, and add value.”—Lars G. Johansson, Senior Vice President, Communications and Branding,

Electrolux AB, Sweden

“The principles described by Larry Light and Joan Kiddon are the basis for the approach to brand management that has been an essential element of building brands at 3M. Six Rules for Brand Revitalization captures the vital elements for building and revitalizing brands and is a must read for anyone that wants to improve their business.”

—Dean Adams, former director,Corporate Brand Management, 3M

“This is a story of how true commitment to a brand combined with strong leadership contributes to brand development. It demonstrates that big brands can be revitalized. With Larry and Joan’s clear explanations, we learn six simple rules about brand management. However, we should never forget not to just learn them by heart but to use our heart in making brand decisions. Because in the end, it is the human factor that matters.”

—Maria Campillo, Brand Consultant,Grupo Sanborns, S.A. de C.V, Mexico

“Joan Kiddon and Larry Light synthesize their key concepts and principles into what can be considered the missing masterpiece in the brand management literature. Six Rules for Brand Revitalization features the McDonald’s turnaround case and is based on Larry’s 360° experiences as a leading consultant, executive, advertiser, and professor, linking all of the most important marketing battlegrounds.”

—Uriel Alvarado, Regional Marketing Manager, Latin America,Saxo Bank, Denmark

“Having worked with Larry and Joan while I headed M&M/Mars, I am delighted they have finally written a book encapsulating their principles and processes. This book demonstrates the fundamental truth that brand building begins with understanding changing consumer wants. Creating, building, maintaining, and strengthening consumer relevance is the key to brand success. This book is a gift for those who believe in brands and know that marketing is bigger than just advertising. This is a delightful read…I could not put it down.”

—Howard Walker, former President,M&M/Mars

“Over the past two years, Larry has been a great partner in transforming our organization to a more customer-centric one. His insights on how to align employees’ motivations and capabilities to marketing strategy will be invaluable to any senior management team embarking on a major turnaround initiative or embarking on a customer-driven growth journey.”

—Vincenzo Picone, Global Chief Marketing Officer,GE Capital

“This is an emotional, dramatic, and true story that captures how a handful of aggressive, fiercely passionate leaders were able to turn the gigantic global ship of McDonald’s around, and set her on the brilliant course she sails so smoothly today. It was truly miraculous. I know, I was there.”

—Cheryl Berman, Chairman Emeritus,Leo Burnett USA

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Six Rules of Brand Revitalization

Second Edition

10/24/14 3:17 PM


Six Rules of Brand Revitalization

Second Edition

Learn the Most Common Branding Mistakes and How to Avoid Them

Larry Light Joan Kiddon

Publisher: Paul Boger Editor-in-Chief/Acquisitions Editor: Amy Neidlinger Editorial Assistant: Olivia Basegio Cover Designer: Alan Clements Managing Editor: Kristy Hart Senior Project Editor: Lori Lyons Copy Editor: Gill Editorial Services Proofreader: Debbie Williams Indexer: Erika Millen Compositor: Nonie Ratcliff Manufacturing Buyer: Dan Uhrig

© 2016 by Pearson Education, Inc. Old Tappan, New Jersey 07675

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First Printing February 2016

ISBN-10: 0-13-450783-5 ISBN-13: 978-0-13-450783-5

Pearson Education LTD. Pearson Education Australia PTY, Limited Pearson Education Singapore, Pte. Ltd. Pearson Education Asia, Ltd. Pearson Education Canada, Ltd. Pearson Educación de Mexico, S.A. de C.V. Pearson Education—Japan Pearson Education Malaysia, Pte. Ltd.

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Contents

Preface . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ix

Introduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1

Part I The Twelve Tendencies for Trouble. . . . . . . . . . .7

Chapter 1 Tendency 1: The Arrogance of (Great) Success . . . . . . . .11

Chapter 2 Tendency 2: The Comfort of Complacency. . . . . . . . . . . .17

Chapter 3 Tendency 3: The Building of Organizational Barriers and Bureaucratic Processes . . . . . . . . . . . . . . . . . . . . . . . .23

Chapter 4 Tendency 4: The Focus on Analyst Satisfaction Rather Than on Customer Satisfaction . . . . . . . . . . . . . . . . . . . . .27

Chapter 5 Tendency 5: The Belief That What Worked Yesterday Will Work Today . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .37

Chapter 6 Tendency 6: The Failure to Innovate. . . . . . . . . . . . . . . . .41

Chapter 7 Tendency 7: The Lack of Focus on the Core Customer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .47

Chapter 8 Tendency 8: The Backtracking to Basics . . . . . . . . . . . . . .51

Chapter 9 Tendency 9: The Loss of Relevance. . . . . . . . . . . . . . . . . .55

Chapter 10 Tendency 10: The Lack of a Coherent Plan to Win . . . . .63

Chapter 11 Tendency 11: The Lack of a Balanced Brand-Business Scorecard . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .67

Chapter 12 Tendency 12: The Disregard for the Changing World . . .71

Chapter 13 Break the LOCK on Brand Troubles . . . . . . . . . . . . . . . . .75

Part II The Six Rules for Brand Revitalization… Revisited. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .81

Chapter 14 Rule 1: Refocus the Organization. . . . . . . . . . . . . . . . . . . .83

Chapter 15 Rule 2: Restore Brand Relevance. . . . . . . . . . . . . . . . . . . .91

x SIX RULES OF BRAND REVITALIZATION, SECOND EDITION

Chapter 16 Rule 3: Reinvent the Brand Experience . . . . . . . . . . . . .107

Chapter 17 Rule 4: Reinforce a Results Culture. . . . . . . . . . . . . . . . .137

Chapter 18 Rule 5: Rebuild Brand Trust . . . . . . . . . . . . . . . . . . . . . .155

Chapter 19 Rule 6: Realize Global Alignment . . . . . . . . . . . . . . . . . .173

Part III The Twelve Truths for Staying Out of Trouble. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .185

Chapter 20 Truth 1: Recognize That Culture Matters: Overcome Cultural Resistance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .187

Chapter 21 Truth 2: Institutionalize Change . . . . . . . . . . . . . . . . . . .191

Chapter 22 Truth 3: Define a Clear Strategy for Enduring Profitable Growth . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .195

Chapter 23 Truth 4: Break Down Silos . . . . . . . . . . . . . . . . . . . . . . . .197

Chapter 24 Truth 5: Reinforce Authenticity . . . . . . . . . . . . . . . . . . . .199

Chapter 25 Truth 6: Make Demographics Matter . . . . . . . . . . . . . . .203

Chapter 26 Truth 7: Act Like a Leader . . . . . . . . . . . . . . . . . . . . . . . .207

Chapter 27 Truth 8: Stay Relevant . . . . . . . . . . . . . . . . . . . . . . . . . . .211

Chapter 28 Truth 9: Move from Living off Current Positive Momentum to Creating Ongoing Positive Momentum . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .215

Chapter 29 Truth 10: Institute Clear Accountability . . . . . . . . . . . . .217

Chapter 30 Truth 11: Change the Reward System . . . . . . . . . . . . . . .219

Chapter 31 Truth 12: Measure Results . . . . . . . . . . . . . . . . . . . . . . . .223

Conclusion. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .227

Index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .229

McDonald’s Case History is available online at www.ftpress.com/sixrules

http://www.ftpress.com/sixrules

Acknowledgments

Over the decades, we have met and conducted business with many wonderful people. Each in their own way contributed to our under-standing of managing brands globally and locally with Leadership Marketing, Operational Excellence, and Financial Discipline. The world has changed remarkably since we began our business careers, but the friendship, learning, love, and yes, fun, has been enduring. It is impossible to do what we have done and accomplish what we have set out to accomplish without the support of these terrific individu-als. Our collective thanks to CEOs such as Carlos Ghosn, Forrest and John Mars, Jim Cantalupo, Charlie Bell, Richard Solomons, Steve Ells, Steve Kaufman, Maurice Saatchi, and various leading marketers including Micky Pant, Dan Yagoda, Terry Rogers, Bradley Gale, Jerry Hirshberg, Ken Warwick, Howard Walker, Claude-Elliot Hermann, and Yasmin Diamond. And, as always, to our families: Joyce, Laura, Michelle and Naomi, and Chloé and Olivia for their encouragement and ever-lasting support. We also recognize and appreciate the con-tinuing support of those at Pearson who have provided us with helpful direction and needed editing.

About the Authors

Larry Light is the Chairman and CEO of Arcature. Larry was Global CMO of McDonald’s from 2002 to 2005. More recently, as the interim Global Chief Brands Officer of IHG from 2011 to 2013, Larry led global organizational and marketing process change to increase the effectiveness of IHG’s global and local marketing. Light was formerly the Executive Vice President at BBDO and was Chairman and CEO of the international division of Bates Worldwide and was also a mem-ber of the Bates’ Board of Directors. In 2004, BrandWeek selected Larry as one of the top ten marketers of the year and McDonald’s won “Marketer of the Year” from Advertising Age . In its report on Best Marketers of the Decade, AdWeek reported that “Larry Light, who turned around McDonald’s as CMO from 2002 to 2005 finished sec-ond to Steve Jobs.” Summarizing the top ten ideas of the decade, Ad Age selected Larry Light’s “Brand Journalism” as “arguably the most realistic description of marketing today—perhaps ever.” In 2013, in partnership with the Association of National Advertisers, the Interna-tionalist recognized Larry among 100 marketing leaders from around the world who are consistently moving business forward.

Joan Kiddon is President and COO of Arcature. Joan began her career in 1976 as a market researcher at BBDO Worldwide in New York. In 1978, she moved into Account Management. She was the head of marketing and market research for BBDO West, Los Ange-les, from 1980 until 1986. In 1990, she joined Arcature. Joan con-sulted to McDonald’s during its brand turnaround from 2002 until 2005. Kiddon with Light consulted to IHG from 2010 to 2014. Joan Kiddon is the co-author of Six Rules for Brand Revitalization: Learn How Companies Like McDonald’s Can Re-Energize Their Brands and New Brand Leadership: Managing at the Intersection of Global-ization, Localization, and Personalization.

Preface

In 2009, we published the first edition of our book based on our experience participating in a variety of turnaround situations, includ-ing the heralded revitalization of McDonald’s from 2002 to 2005. We provided a set of Six Rules for successful, profitable brand revitaliza-tion. Over the past six years, a lot has changed in the marketing world. Among these influences are changing demographics; increased com-petitive pressure; more informed, more skeptical customers; changing values; increased impact of the Internet; increased influence of social media and mobile marketing; and so on. Yet, even in the context of these significant changes, the Six Rules remain as relevant today as they were in 2005 when we left McDonald’s. The Six Rules for Brand Revitalization are foundational and enduring.

Since 2009, we have seen the decline of some big and beloved brands, such as Kraft, Campbell’s, J. Crew, The Gap, BlackBerry, and United (Continental). And we have observed the unfortunate return to bad habits at McDonald’s, resulting in two years of sagging sales due to increased operational complexity, long wait times, and high prices with inconsistent and unfocused strategies and market-ing. Finally there is now some indication that the corner is being turned. Some commentators have attributed the McDonald’s chal-lenges to the decline of fast food. This is incorrect. While McDonald’s lost momentum, Burger King, Wendy’s, Popeye’s, Jack in the Box, Chick-fil-A, and other fast food brands are growing. Additionally, we looked at other brands that successfully turned around, such as Apple and Lego. Why do some brands, like Campbell’s, succeed in turning around and then re-enter a period of decline? How can brands avoid getting into trouble once they are turned around?

With our decades of involvement on the agency side, the client side, and as consultants, we look at how big brands fall into trouble and how the Six Rules not only still work today, but also are more pertinent than ever in revitalizing troubled brands. Additionally, we look at ways in which brands can stay out of trouble once they are rejuvenated and turned around. This is how we structure this book. It is a how-to book for the enduring, profitable growth of brands:

xiv SIX RULES OF BRAND REVITALIZATION, SECOND EDITION

• How big brands get into trouble

• How to revitalize brands

• How brands can avoid getting into trouble again

To illustrate our thinking, we offer many examples throughout the book. In addition, we provide a detailed case history of McDonald’s online at www.ftpress.com/sixrules. Since 2006, McDonald’s has suf-fered a case of severe mismanagement and neglect of core principles following the positive turnaround created in 2003–2005. We pieced together a compelling story of publicly available information describ-ing how McDonald’s found itself in trouble again. And we report on some of the initiatives that seem to be helping now to get the brand back on a positive track. It is because of our involvement in the initial McDonald’s brand revitalization that we are sensitive to the seeds of destruction, visible since 2006.

Over the years, we have said repeatedly that brands can live for-ever if properly managed. This book is a guide for effective brand leadership and for surviving the challenges of a volatile business environment.


1

Introduction

By the beginning of 2006, the two leaders of the McDonald’s turn-around had died. Several key senior managers, who had supported the turnaround with words and actions, had left the company. Over the course of nine years, you can read the clear public reporting show-ing the pathway of McDonald’s steady decline. The years 2014 and 2015 have given us an in-depth picture of McDonald’s deterioration. (This story is described in detail online at www.ftpress.com/sixrules .)

Over the past two years, other big, beloved brands have weakened as well. For example:

• Kraft, recently split into two after the purchase of Cadbury, found itself in the arms of Heinz, itself a recent acquisition of the Brazilian equity group (3G Capital) that owns Burger King and Tim Horton’s.

• Campbell’s Soup, once a staple with multiple products in people’s pantries worldwide, announced its need to return to relevance. It is also the focus of much speculation as its sales continue to stagger under the weight of a shifting food envi-ronment. In fact, in November 2015, The New York Times reported that Campbell Soup Co. was now “altering” Camp-bell’s Chicken Noodle Soup, banishing ingredients that cus-tomers do not want to consume. 1

• BlackBerry, once the most secure and ubiquitous mobile and connective email system device, now seems to be desperately focused on its software and patents. There are rumors that the

1 Strom, Stephanie, “Back to the Kitchen: Campbell Adjusts Soup Recipe to Address Changing Tastes,” The New York Times , November 10, 2015.


2 SIX RULES OF BRAND REVITALIZATION, SECOND EDITION

new Android version of the 2015 Classic will be the last hard-ware developed and sold.

• J. Crew and The Gap had glory days that now appear as distant past.

• After merging with Continental, hoping to share in the out-standing Continental culture and committed customer base, United Airlines is floundering with poor service and clashing organizations leading to loss of internal alignment and system breakdowns that are not only serious for U.S. air traffic but embarrassing.

Some brands are successful in pulling out of the downward spiral of brand decline. Lego restored the brand to strength again. Wen-dy’s and Popeye’s have become increasingly strong and popular. And there are brands that you wonder about: Microsoft, Yahoo, and Gen-eral Motors. In which directions will these big brands go?

We identified twelve troubling behaviors and attitudes that drive how big brands get off track. We call these the Twelve Tendencies for Trouble . Not every brand has committed every one of these sins. However, decline and mismanagement are not uni-dimensional ten-dencies. The Twelve Tendencies are not completely discrete either; one sometimes neatly segues right into another. Once a brand falls prey to one or more of these tendencies, it becomes more susceptible to others.

1. The arrogance of (great) success

2. The comfort of complacency

3. The building of organizational barriers and bureaucratic processes

4. The focus on analyst satisfaction rather than on customer satisfaction

5. The belief that what worked yesterday will work today

6. The failure to innovate

7. The lack of focus on the core customer

8. The backtracking to basics

9. The loss of relevance

INTRODUCTION 3

10. The lack of a coherent Plan to Win

11. The lack of a balanced Brand-Business Scorecard

12. The disregard for the changing world

It is important to reinforce the enterprise- and brand-negativ-ity that falling into these trouble-traps causes. Behaving in these bad brand ways has a disastrous effect on the business culture, on employee pride, and on the heart and soul of the brand itself. These insidious inclinations must be stopped. Yet, just stopping will not make the brand well again. Stopping destructive behaviors allows for the resuscitative actions of the Six Rules Revisited to be applied. To fight the Tendencies for Trouble, we provide advice for breaking the LOCK on brand troubles through leadership, organization, culture, and knowledge.

The Six Rules are as meaningful today as they were in 2002. But the world has changed. Since we introduced these Rules, we have enhanced them with new ways of making them even more powerful.

Rule 1: Refocus the organization

Rule 2: Restore brand relevance

Rule 3: Reinvent the brand experience

Rule 4: Reinforce a results culture

Rule 5: Rebuild brand trust

Rule 6: Realize global alignment

The Six Rules are more than a list of internal and external changes for brand revitalization. It is a mistake to think that the Rules are a checklist: complete and check off. These Rules are ongoing: they are never-ending and must be ingrained into the culture of the enter-prise. These are cultural commitments at the highest level.

When we left McDonald’s, the idea was that the commitments to a refocused organization, brand relevance, brand experience, results, brand trust, and global alignment would continue. The hope was for a continuously revitalized brand and enterprise. Charlie Bell often referred to his fear of complacency. And, yet, McDonald’s fell back into its bad behaviors that Charlie Bell fought against.


Along with the Six Rules, there is a list of Twelve Truths for stay-ing out of Trouble. These Truths are all common sense. But, as we have said for years, common sense is just not that common these days, especially when it comes to brands and brand leadership. Again, these Truths are not meant to be a checklist. Great brands need to exist in great cultures. When cultures become ossified, they damage brands, fossilize creativity, and impede all movement toward enduring profit-able growth. Keeping the cultural flame alive is critical for brands. This is why so many of the Truths relate to the organization and its spirit.

The Twelve Truths for avoiding trouble are evergreen and univer-sal. Our reviews of brands that have gotten into trouble and of those brands that have undergone revitalization show that these Truths are not only self-evident but must be made ongoing strategies for brand leaders and organizational top management.

1. Recognize that culture matters: overcome cultural resistance

2. Institutionalize change

3. Define a clear strategy for enduring profitable growth

4. Break down silos

5. Reinforce authenticity

6. Make demographics matter

7. Act like a leader

8. Stay relevant

9. Move from living off current positive momentum to creating ongoing positive momentum

10. Institute clear accountability

11. Change the reward system

12. Measure results

Our online McDonald’s case history highlights the problems that occur with not tackling the tendencies for trouble and what happens to revitalization when not following the Six Rules. McDonald’s aban-doned the success of the Six Rules for the tendencies that have placed it again in a troubled situation.

INTRODUCTION 5

This new book demonstrates how effective the Six Rules can be and how disregard for its principles can send you back into a mar-keting and brand leadership abyss. It provides a simple framework for identifying brand trouble and staying out of brand trouble. And it shows how even in a more digital, mobile, technological, fragmented, personalized world, the Six Rules are pivotal for returning a brand to enduring profitable growth.

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11

1 Tendency 1: The Arrogance of

(Great) Success

Nothing succeeds like success. 9 In business, there is the adulation of analysts and the praise in the press. There is celebrity and spot-light. There is hero worship, as happened with Carlos Ghosn (he even became a superhero in a Japanese comic book) as he revived Nissan, or Steve Jobs and Howard Schultz as they came back to rejuvenate their sagging brands. Gordon Bethune at Continental, Lou Gerstner at IBM, Steve Kaufman at Arrow Electronics, Cheryl Bachelder at Popeye’s, and others have succeeded magnificently in reshaping sag-ging brands.

Success is everybody’s aim; no one aims to lose. However, for some, nothing fuels arrogance more than success. It may foster an environment of “I can do no wrong.” Arrogance is at the core of the mind-set defined as “we will sell what we know how to make” rather than focusing on the customer-focused mind-set “we will promise and deliver what customers want.”

As Jim Collins, the management and leadership guru, wrote in 2009 after studying success and failure, “When an enterprise becomes successful, it can cover up a lot of sins. It is not success that makes you vulnerable, it is when you respond to that success with arrogance.” He related arrogance to hubris, the great downfall within the Greek tragedies. In an interview with The South Africa Star , Mr. Collins quoted a Classics professor’s definition of hubris, the ruin of many in Greek tragedies: that is, “an outrageous arrogance that inflicts suffer-ing upon the innocent.” In contrast, Collins found that all the leaders he discussed in Good to Great displayed a common trait: a genuine humility about their success that Collins saw as “the real antithesis of arrogance.” 10


Many of the brands we mentioned at the beginning of this chap-ter had tremendous success over many decades. Or the brand leapt to success by leveraging an idea or taking a risk or both. Success needs to be leveraged, not lived off of. Properly managing brands means managing for continuing success. It means always taking the brand to the next level. There is no inevitable brand life cycle if you are willing to invest in the brand with new ideas and strategies. Brands can live forever if they are properly managed.

At McDonald’s, there were several successes between 2002 and 2005. Some of these were product launches, such as Chicken Cae-sar Salad. Others were policy issues, such as the three-tier pricing policy. Still others were the global launch of a new advertising cam-paign (i’m lovin’ it) simultaneously in more than 100 countries. Some were alignment-focused, when we galvanized more than one million employees worldwide. Others focused on how we worked with our agency partners under the aegis of “good ideas do not care where they come from.” And the brand had success with a new business model of “being better, not just bigger,” focusing first on improving the guest experience rather than merely opening new stores. With a clearly defined Brand Promise and global occasion-based needs seg-mentation, each success was part of making a great brand greater by being better at everything the brand did.

The McDonald’s successes were exhilarating. But Jim Cantalupo and Charlie Bell never became arrogant. They were amazing leaders. The publicity, the kudos, the rising share price, the increasing same store sales, and the positive performance scores in tracking studies were all part of turning around the McDonald’s brand. Above all, Cantalupo and Bell never fostered internal, organizational arrogance that could have turned success into corporate complacency. McDon-ald’s could always do better. Continuous improvement was a fact of life. (See Tendency 2.)

In 1991, Pepsi CEO Wayne D. Calloway stated that arrogance was the single biggest reason people did not succeed at Pepsi. “He said that there is nothing wrong with having confidence, but arro-gance is something else. Arrogance is the illegitimate child of con-fidence and pride. Arrogance is the idea that not only can you never miss [shooting] a duck, but no one else can ever hit one.” He said,

CHAPTER 1 • TENDENCY 1: THE ARROGANCE OF (GREAT) SUCCESS 13

“Arrogance is an insurmountable roadblock to success in a business where the ‘team’ is what counts. The flipside of arrogance is team-work—the ability to shine, to star, while working within the group.” 11

Mr. Calloway’s viewpoint is not dated or passé. Just recently, Warren Buffet referred to business arrogance in his Berkshire Hatha-way Annual Report letter to shareholders (March 2015). He said, “It was arrogance, more than any other factor, that caused the banking crisis. In any area of life, arrogance is a damaging character defect, undermining interpersonal relationships, but in business it’s poten-tially lethal. A CEO who is arrogant will ignore the advice of col-leagues who may have a far better insight into risks threatening the company. That leads to bad decision-making, low corporate morale and loss of contact between senior management and employees. It destroys the culture of collegiality, of shared opinions and objectives that is crucial to the effective functioning of any organization. Once a CEO becomes isolated in a boardroom he has lost his ability to lead the company effectively.” 12

Arrogance is bad for business and bad for brands. Why? Because how you manage your brands is how you manage your business. When the CEOs of the Detroit automotive industry flew down to Washing-ton, D.C., Senate hearings on private jets and then asked for money (except Ford) to sustain their businesses, that was arrogance. Their stance affected their car brands’ perceptions as well as the percep-tions of the brand Detroit and the brand “cars made in America.” When the CEOs of the U.S. cigarette brands stood in front of Con-gress and swore their brands were safe to use, even in the face of decades of data beginning with a landmark Surgeon General’s Report in 1964, that was arrogance. Thinking that consumers will continue to buy your brands because you know best is arrogance.

Kellogg has held onto the idea that consumers will continue to “wake up” each morning by eating a bowl of sugared grains even though the share of American breakfasts that contain sugared-grain cold cereal has dropped to below 30%. And this does not include the figures on Pop-Tarts (white flour and sugar) and Eggo waffles (just plain white flour over which we pour Maple Syrup or some other sugar). 13


It has now become automotive lore, but Ford turned down the “minivan” because the company firmly...and arrogantly...believed its station wagons were the answer for suburbanites. Suburbanites would keep driving what Ford knew how to profitably make. The Ford think-ing was that people would continue to buy what the company made rather than what they needed. Ford-exiled executive, Lee Iacocca, and his newly installed team at Chrysler, in need of a new idea, pro-duced the minivan. The rest is history.

Harley Davidson had a crisis of “success arrogance” in the 1980s. Vaughn Beals and a group of Harley managers soon purchased the company. Beals and his team turned the brand around. But they felt that the organization was flush with the hubris of success. Employees believed that Harley “had won” and nothing else had to be done. Con-sultant Lee Ozley joined the team to create a plan for culture change. As Ozley said, “There was this arrogance that we won, that we beat Japan. The organization had begun to revert to the very same behav-ior that got Harley into trouble.” 14

(Recently there have been stories about Zappos and its new orga-nizational approach called Holacracy. Whether good or bad, the new approach focuses on how not to create management by arrogance. When no one has a title and everyone is working in groups collabora-tively, being arrogant is not appreciated or rewarded.)

Another example of great brand success driving great brand arrogance followed by brand recovery is Intel. By 1994, Intel had accomplished what most pundits, marketers, analysts, and tech-types thought unnecessary and impossible: they branded a computer chip. The branding efforts were so good that most consumers looked for computers with Intel Inside even if they did not know what an Intel computer chip did while inside. That success created a climate of arrogance that exploded with brand-damaging proportions. The Pen-tium chip had some serious faults. When requests for refunds and recalls were made, Intel’s public and private response was snappish and self-protective. “It appeared that we at Intel were arrogant, we were telling customers what was good for them. Maybe we have been thickheaded...but we finally figured it out,” said then-CEO Andrew Grove in a reflection of the incident. Once the leadership realized their arrogance was affecting the brand’s image, they recanted and ran a full-page ad in newspapers apologizing. 15

CHAPTER 1 • TENDENCY 1: THE ARROGANCE OF (GREAT) SUCCESS 15

Avoiding arrogance takes character and effort on the part of lead-ers. It is a test of true great leadership to fight the inclination of focus-ing on oneself rather than the brand and its customers. The leader who creates a culture of arrogance by letting success go to the head and ego is a leader who is more committed to self than to brand.

Endnotes 1. Pittsburgh Business News , July 2, 2015.

2. Berfield, Susan and Noah Buhayar, “Things Are About to Get Ugly at Kraft,” Bloomberg Businessweek , August 24–30, 2015.

3. Leonard, Devin, “Bad News in Cereal City: Will Kellogg Ever Catch a Break?” Bloomberg Businessweek , March 2–8, 2015; Silverman, Gary, “Craft Versus Kraft: Big US Food Groups Have Missed a Major Shift in the Nation’s Tastebuds as Customers Seek Fresher Fare and More Exotic Flavours. Can the Companies Find New Bliss Points to Woo Them Back?” Financial Times , March 17, 2105; “Slimming Down: America’s Processed Food Makers Are Having to Adapt to Declining Popularity,” The Economist , May 2, 2015; Gasparro, Annie, “Kellogg Chases Changing Consumer: Revenue Falls 5% Amid Stronger Dollar, While Profit Tumbles 44% on Cost-Cutting Moves,” The Wall Street Journal , May 6, 2015; Gasparro, Annie, “Indigestion Hits Food Giants,” The Wall Street Journal , February 13, 2015.

4. Byron, Ellen, Serena Ng, and Joann S. Lublin, “Lafley to Hand Over Reins at P&G,” The Wall Street Journal , July 28, 2015.

5. Goel, Vindu, “At Twitter, Slow Growth in New Users Disappoints,” The New York Times , July 29, 2015.

6. Koh, Yoree, “Twitter Ad Woes Subside, but Growth Stalls,” The Wall Street Journal , July 29, 2015.

7. Overheard Column, The Wall Street Journal , October 26, 2015.

8. McKinnon, Judy, and Julie Jargon, “Burger King Owner Touts Sales,” The Wall Street Journal , July 28, 2015.

9. Dumas, Alexandre, Ange Pitou , Vol. 1; from a French proverb. See Bartlett’s Familiar Quotations , Seventeenth Edition, Justin Kaplan, general editor, Little Brown & Company, Boston, 2002, p. 450.


10. The Star, South Africa , “Greatness Is a Matter of Choice,” September 9, 2009, p. 76.

11. Moskal, Brian S., “Arrogance: The Executive Achilles Heel: PepsiCo Has Isolated Three Critical Reasons Why Some Fast Track Executives Didn’t Reach the Promised Land,” Industry Week , June 3, 1991, p. 19.

12. Askeland, Erikka, Aberdeen Press and Journal , March 16, 2015.

13. Leonard, Devin, “Bad News in Cereal City: Will Kellogg Ever Catch a Break?” Bloomberg Businessweek , March 2–8, 2015.

14. Investor’s Business Daily , March 27, 2001.

15. Crainer, Stuart, “The 50 Best Management Saves,” Management Review , November 1, 1999, p. 16.

Index

A AA (American Airlines), 160 AB InBev, 59 accountability, 217 - 218 Ackman, William, 30 , 33 , 43 acting like a leader, 207 - 209 activist investors, 29 - 31 Alba, Jessica, 208 Alibaba, 221 Amazon, 39 , 109 American Airlines (AA), 160 American Express Centurion

Cards, 124 analyst satisfaction, focus on, 27 - 35 Anderson, Kerri, 179 Anheuser-Busch InBev, 55 Apple, 109 Apple Stores, 43 Applebaum, Rhona, 167 Arcature, 156, 196 arrogance of success, 11 - 15 Arrow Electronics, 11 , 75 - 76 authenticity, reinforcing, 199 - 201 Avon, 124

B B2B (business-to-business) market

segmentation, 98 BA (British Airways), 101 - 103 Bachelder, Cheryl, 11 , 60 , 69 , 87 ,

119 , 160 backtracking to basics, 51 - 54

229

The Balanced Scorecard: Translating Strategy Into Action (Kaplan and Norton), 67

Banana Republic, 73 Barclays Bank, 23 barriers, organizational, 23 - 25 basics, returning to, 51 - 54 Beals, Vaughn, 14 Belfiore, Joe, 53 Bell, Charlie, 12 , 18 - 19 , 63 , 66 ,

75 , 127 Bethune, Gordon, 11 , 69 , 118 , 137 better measures (Brand-Business

Scorecard) brand reputation, 143 - 144 overall satisfaction, 144 - 145

bigger measures (Brand-Business Scorecard)

familiarity, 141 penetration, 141 - 143

BlackRock Inc., 27 BlackBerry, 1 , 60 Blackshaw, Rick, 104 Bonobos Clothing, 123 Brand-Business Scorecard, 67-70,

140-154 Brand Character, 99 Brand Claim, 99 brand decline, practices for

preventing . See also revitalization acting like a leader, 207 - 209 breaking down silos, 197 changing reward system, 219 - 221 creating positive momentum,

215 - 216

230 INDEX

defining strategy for profitable growth, 195 - 196

instituting accountability, 217 - 218 institutionalizing change, 191 - 193 making demographics matter,

203 - 206 measuring results, 223 - 225 overcoming cultural resistance,

187 - 190 reinforcing authenticity, 199 - 201 staying relevant, 211 - 214

brand experience, reinventing, 107 Brand Journalism, 131 - 134 changing perception of value, 114 deal loyalty versus brand

loyalty, 116 fair value, 115 - 116 Five Action Ps

people, 117 - 120 place, 123 - 126 price, 127 - 129 product, 120 - 123 promotion, 129 - 131

innovation and renovation, 107 - 110

marketing, 110 - 113 total brand experience, 116 - 117 Trustworthy Brand Value, 114 - 115 value equations, 113 - 114

brand failures, 75 culture, 78 - 79 knowledge, 79 leadership, 75 - 77 organization, 77 - 78

brand goals, refocusing, 88 - 90 Brand Journalism, 131 - 134 brand loyalty, 116 , 145 - 146 , 224 brand power, 149 - 151 , 223 brand preference

brand preference ladder, 147 - 148 increasing, 224

Brand Promise, 88 - 90 , 99 - 104 , 176 Brand Character, 99 Brand Claim, 99

Brand Support, 99 British Airways (BA), 101 - 103 Chipotle, 100 consequences of failing to deliver

on promise, 103 - 104 McDonald’s, 100 - 101 Saint-Gobain Performance

Plastics, 101 Sperry, 104

Brand Purpose, 88 - 90 , 176 brand rejecters, understanding, 224 brand relevance, restoring, 91

Brand Promise, 99 - 104 Brand Character, 99 Brand Claim, 99 Brand Support, 99 British Airways (BA),

101 - 103 Chipotle, 100 consequences of failing to

deliver on promise, 103 - 104 McDonald’s, 100 - 101 Saint-Gobain Performance


market knowledge, 91 - 93 needs-based occasion market

segmentation, 93 - 98 brand reputation, 143 - 144 Brand Support, 99 brand value. See value brand-business building practices .

See also revitalization acting like a leader, 207 - 209 breaking down silos, 197 changing reward system, 219 - 221 creating positive momentum,

215 - 216 defining strategy for profitable

growth, 195 - 196 instituting accountability, 217 - 218 institutionalizing change, 191 - 193 making demographics matter,

203 - 206 measuring results, 223 - 225

INDEX 231

overcoming cultural resistance, 187 - 190

reinforcing authenticity, 199 - 201 staying relevant, 211 - 214

Brand-Business Scorecard, 67 - 70 , 140 - 154

brand loyalty, 145 - 146 brand power, 149 - 151 brand preference ladder, 147 - 148 brand reputation, 143 - 144 familiarity, 141 Five Action Ps, 151 - 152 normative data and, 152 overall satisfaction, 144 - 145 penetration, 141 - 143 trust, 148 - 149

branding mistakes arrogance of success, 11 - 15 backtracking to basics, 51 - 54 building of organizational barriers

and bureaucracy, 23 - 25 complacency, 17 - 20 corporate and brand failures, 75

knowledge, 78 - 79 leadership, 75 - 77 organization, 77 - 78

disregard for changing world, 71 - 73

failure to innovate, 41 - 44 focus on analysts rather than

customers, 27 - 35 lack of Brand-Business Scorecard,

67 - 70 lack of focus on core customer,

47 - 50 lack of Plan to Win, 63 - 66 loss of relevance, 55 - 60 overview, 2 - 3 , 8-9 unwillingness to change, 37 - 40

breaking down silos, 197 British Airways (BA), 101 - 103 Brolick, Emil, 87 - 88 Brown, Michael, 24 Bryant, John, 72

Buffet, Warren, 13 , 19 bureaucracy, 23 - 25 Burger King, 70 , 72 , 92

focus on analysts rather than customers, 34

focus on core products, 51 business-to-business (B2B) market

segmentation, 98

C Cadillac, 146 , 192 Cahill, John, 212 Calloway, Wayne D., 12 Campbell Soup Company, 1 , 31 - 32

backtracking to basics, 53 brand goals, 88 demographic changes, 205 disregard for changing world, 72 failure to innovate, 42 , 109 innovation and renovation, 42,

107, 215 loss of relevance, 56 - 57 market segmentation, 96 - 97 organization failures, 77 - 78 Plan to Win, 65 , 118

Cannon, Janis, 109 Cantalupo, Jim, 12 , 63 , 75 , 84 , 88 ,

119 , 127 CFT (cross-functional team), 157 change


institutionalizing change, 191 - 193 unwillingness to change, 37 - 40

changing perception of value, 114 chief marketing officer (CMO),

112 - 113 Chipotle, 65 - 66 , 110 , 126

Brand Promise, 100 , 161 openness and transparency, 164

Chrysler, 13 Clark, Alan, 55 Clinton, Hillary, 27

232 INDEX

CMO (chief marketing officer), 112 - 113

Coca-Cola, 166 failure to innovate, 109 focus on analysts rather than

customers, 32 loss of relevance, 58 unwillingness to change, 37 - 38

Collaborative Three-Box Model, 112 - 113 , 182 - 184 , 217 - 218

Collins, Jim, 11 comfort of complacency, 17 - 20 commitment

external commitment, 159 internal commitment, 156 - 159

complacency, 17 - 20 Conant, Douglas, 56 , 65 , 77 , 118 ,

215 Continental, 11 , 69 - 70 , 118 , 137 convenience food market, 43 core customers, focus on, 47 - 50 Cornell, Brian, 25 , 72 corporate failures, 75

culture, 78 - 79 knowledge, 79 leadership, 75 - 77 organization, 77 - 78

Corporate Social Responsibility (CSR), 167 - 170

cost reduction approach to revitalization, 84 - 85

Coty, 97 Courduroux, Pierre, 85 craft brewing industry, 41 , 95 Crainer, Stuart, 39 cross-functional team (CFT), 157 Crowne Plaza Hotels, 109 CSR (Corporate Social

Responsibility), 167 - 170 culture

failures, 78 - 79 overcoming cultural resistance,

187 - 190

customers customer satisfaction, 27 - 35 , 220 focus on core customer, 47 - 50 needs and occasions, 57

D Darden, 30 - 31 de Nysschen, Johan, 146 , 191 deal loyalty, 116 debate, leading, 161 - 163 defining strategy for profitable

growth, 195 - 196 delivering on promises, 160 - 161 Delta, 121 demographics, 203 - 206 Dillon, Mary, 101 disregard for changing world, 71 - 73 documents

Brand-Business Scorecard, 67 - 70 Plan to Win, 63 - 66

Domino’s, 160 , 161 Donahue, Mike, 48 , 163 Dorsey, Jack, 8, 162 Drezler, Millard (Mickey) E., 65 Drucker, Peter, 35 , 38 Dunlap, Albert, 86 DVorkin, Lewis, 133 Dyson, 149

E Easterbrook, Steve, 48 , 65 - 66 , 162 Edmond, Luiz Fernando, 59 education, 188 effort, 153 - 154 Eli Lilly, 23 Ells, Steve, 100 , 110 , 126 , 161 emotional value, 154 Encore Capital Management, 205 evaluation, 190 external commitment, 159

INDEX 233

F Facebook, 197 failures, 75

culture, 78 - 79 failure to innovate, 41 - 44 knowledge, 79 leadership, 75 - 77 organization, 77 - 78

fair value, 115 - 116 familiarity, 141 Faucher, John, 58 financial discipline, 83 - 86 Fink, Larry, 27 Five Action Ps, 151 - 152 , 177 - 178


Flextronics, 211 Floersch, Rich, 137 focus

focus on analysts rather than customers, 27 - 35

lack of, 47realizing global alignment, 175

Ford, 13 Freedom Within a Framework,

173 - 174 Fuji, 211 functional value, 154

G Galston, William A., 27 The Gap, 73

backtracking to basics, 53 loss of relevance, 58

General Motors, 161 Gerstner, Lou, 11 , 64 , 75 , 89 getting back to basics, 51 - 54 Ghosn, Carlos, 11 , 64 , 69 , 75 , 130 .

See also Nissan

global alignment, 173 Collaborative Three-Box Model,

182 - 184 focus, 175 Freedom Within a Framework,

173 - 174 Plan to Win, 175 - 182

Five Action Ps, 177 - 178 Wendy’s Plan to Win, 179 - 181

GM (General Motors), 161 GMO labeling, 200 goals (brand), refocusing, 88 - 90 Goldberg, Stephen, 19 Golden Gate Capital, 30 Goldin, Bob, 212 Google, 39 , 108 Greenberg, Jack, 75 , 83 , 213 Grove, Andrew, 14 growth

defining strategy for, 195 - 196 low- versus high-quality growth,

137 - 138

H H Partners Management, LLC,

17 - 18 H&M, 48 , 58 , 127 Harley Davidson, 14 Harper, Stephen, 159 Heinz. See Kraft Heinz Co. Hennequin, Denis, 163 high-quality growth, 137 - 138 Holacracy, 14 The Honest Company, 208 Hotel Indigo, 123

I Iacocca, Lee, 13 Ibarra, Herminia, 207 IBM, 11 , 75

brand goals, 89 Plan to Win, 64

234 INDEX

relevance, 59 silos, 24

IKEA, 127 influence, 188 - 189 innovation, 41 - 44 , 107 - 110 Insead, 207 inspiration, 188 instituting accountability, 217 - 218 institutionalizing change, 191 - 193 Intel, 14 , 212 InterContinental Hotels and

Resorts, 162 internal commitment, 156 - 159

J J. Crew, 64 - 65 Jaguar, 142 JCPenney, 43 - 44 , 49

innovation without understanding market, 121 - 122

Plan to Win, 63 - 64 , 121 Jenkins, Antony, 23 Jenkins, Holman W., 39 Jobs, Steve, 11 John Lewis, 164 Johnson, David, 32 , 42 Johnson, Ron, 43 - 44 , 49 , 63 - 64 , 121 journalism, Brand Journalism,

131 - 134 Jung, Andrea, 52

K Kaplan, Robert, 67 Karmel, Annabelle, 162 Kashi, 109 Kaufman, Steve, 11 , 75 Kay, John, 71 Kellogg, 13 , 72 , 88 , 109 Kent, Muhtar, 32 , 37 - 38 , 58 ,

167 , 170 KFC, 121

knowledge failures, 79 market knowledge, 91 - 93

Kodak loss of relevance, 211 unwillingness to change, 39

Komori, Shigetaka, 211 Kraft Heinz Co., 1

cost reduction approach to revitalization, 85

focus on analysts rather than customers, 33 - 35

loss of relevance, 212 - 213 Kroc, Ray, 113 , 127 , 169 , 173

L Lafley, A.G., 7, 33 Lam, Wayne, 24 Lazare, Lewis, 100 leadership

acting like a leader, 207 - 209 failures, 75 - 77 leadership behaviors, 187 - 190 leadership marketing, 86 - 88

leading debate, 161 - 163 Lean Cuisine, 59 Lederhausen, Mats, 84 Lego, 48 , 120 Levi Strauss, 19 , 95 Lewis, David, 85 Light, Larry, 63 , 101 Limited Time Offer (LTO), 129 localization, 182 Long, Tom, 41 LongHorn Steakhouse, 30 - 31 loss of relevance, 55 - 60 low-quality growth, 137 - 138 loyalty

deal loyalty versus brand loyalty, 116

growing, 224 LTO (Limited Time Offer), 129

INDEX 235

M Mackey, John, 73 Macy’s, 48 making demographics matter,

203 - 206 market knowledge, 91 - 93 market segmentation, 93 - 98 , 121 marketing

Brand Journalism, 131 - 134 Collaborative Three-Box Model,

112 - 113 leadership marketing, 86 - 88 responsibilities, 110 - 113

Marlboro, 124 Marriot, 30 Marshall, Colin, 101 - 103 Mattel, 51

bureaucracy, 25 failure to innovate, 43 leadership, 209

McDonald, Bob, 33 McDonald’s, 1 , 109

avoidance of arrogance, 12 avoidance of complacency, 18 - 19 backtracking to basics, 51 brand loyalty, 142 disregard for changing world,

71 - 72 focus on analysts rather than

customers, 32 lack of focus on core customer,

47 - 48 leadership, 75 , 208 momentum, 215 Plan to Win, 63 , 65 - 66 , 177

people, 118 - 119 place, 125- 126 price, 127 - 128 product, 122

rebuilding brand trust becoming a trustworthy

source of information, 165 leading debate, 161

openness and transparency, 163 - 164

revitalization brand goals, 89 financial discipline, 83 - 84 innovation and renovation,

108 - 110 operational excellence and

leadership marketing, 88 value equation, 113 - 114

staying relevant, 213 unwillingness to change, 38 - 39

McFarlane, John, 23 measurable milestones, 138 - 139 measuring results, 223 - 225 Mega Brands, 25 Microsoft, 53 , 121 milestones, measurable, 138 - 139 Millennials, 72 - 73 MillerCoors, 95 , 124 mistakes

arrogance of success, 11 - 15 backtracking to basics, 51 - 54 building of organizational barriers

and bureaucracy, 23 - 25 complacency, 17 - 20 corporate and brand failures, 75

knowledge, 78 - 79 leadership, 75 - 77 organization, 77 - 78


failure to innovate, 41 - 44 focus on analysts rather than



47 - 50 lack of Plan to Win, 63 - 66 loss of relevance, 55 - 60 overview, 2 - 3 unwillingness to change, 37 - 40

236 INDEX

momentum, creating, 215 - 216 Mondeléz, 30 money value, 153 Monsanto, 85 Morrison, Denise, 215 Motorola, 59

N Nakamura, Shiro, 64 needs-based occasion market

segmentation, 93 - 98 Nestlé, 59 Newman, Paul, 165 Nissan, 11 , 64 , 69 , 75 , 130 , 146 normative data, 152 Norton, David, 67 Novak, David, 140 Nysschen, Johan de, 146 , 191

O Old Navy, 73 Olive Garden, 30 - 31 , 144 openness, 163 - 164 operational excellence, 86 - 88 Optimus Performance, 19 organization

failures, 77 - 78 organizational barriers, 23 - 25 organizational refocus

brand goals, 88 - 90 leadership marketing, 86 - 88 operational excellence, 86 - 88

overall satisfaction, 144 - 145 refocusing, 79 , 83

brand goals, 88 - 90 financial discipline, 83 - 86 leadership marketing, 86 - 88 operational excellence, 86 - 88

overcoming cultural resistance, 187 - 190

Ozley, Lee, 14

P P&G, 33 , 97 Pace, Raymond, 101 Pandora, 29 Paull, Matt, 32 , 86 Peltz, Nelson, 30 penetration, 141 - 143 people, 117 - 120 , 177 Pepsi, 12 perfection, aiming for, 220 PetSmart, 125 place, 123 - 126 , 177 Plan to Win, 63 - 66 , 175 - 182

Five Action Ps, 177 - 178 people, 117 - 120 place, 123 - 126 price, 127 - 129 product, 120 - 123 promotion, 129 - 131

Wendy’s Plan to Win, 179 - 181 Popeye’s, 11

innovation and renovation, 109 operational excellence and

leadership marketing, 87 Plan to Win

people, 119 product, 121

purpose and principles, 69 rebuilding brand trust, 160 relevance, 60

positive momentum, creating, 215 - 216

power (brand), 223 price, 127 - 129 , 178 problematic behaviors. See

troubling behaviors processed foods industry, 92 product, 120 - 123 , 177 profiling market, 96 promise (brand), 88 - 90 , 99 - 104 , 176 promotion, 129 - 131 , 178 Publix, 92 purpose (brand), 88 - 90 , 176

INDEX 237

Q-R Radio Shack, 126 Randall, Theo, 162 real estate investment trust (REIT),

30 - 32 realizing global alignment, 173

Collaborative Three-Box Model, 182 - 184

focus, 175 Freedom Within a Framework,

173 - 174 Plan to Win, 175 - 182

Five Action Ps, 177 - 178 Wendy’s Plan to Win, 179 - 181

rebuilding brand trust, 155 becoming a trustworthy source of

information, 165 - 167 Corporate Social Responsibility

(CSR), 167 - 170 definition of trust, 156 delivering on promises, 160 - 161 external commitment, 159 internal commitment, 156 - 159 leading debate, 161 - 163 openness and transparency,

163 - 164 Trust Capital, 170

recognition, 139 - 140 Red Bull, 132 Red Lobster, 30 - 31 Red Robin, 29 - 30 refocusing organization, 83

brand goals, 88 - 90 financial discipline, 83 - 86 leadership marketing, 86 - 88 operational excellence, 86 - 88

Reichheld, Frederick, 49 reinforcing authenticity, 199 - 201 reinforcing results culture, 137

low- versus high-quality growth, 137 - 138

Trustworthy Brand Value Brand-Business Scorecard,

140 - 154

measurable milestones, 138 - 139

overview, 138 recognition and rewards,

139 - 140 reinventing brand experience, 107

Brand Journalism, 131 - 134 changing perception of value, 114 deal loyalty versus brand

loyalty, 116 fair value, 115 - 116 Five Action Ps


innovation and renovation, 107 - 110

marketing, 110 - 113 total brand experience, 116 - 117 Trustworthy Brand Value, 114 - 115 value equations, 113 - 114

REIT (real estate investment trust), 30 - 32

relevance, loss of, 55 - 60 relevance of brand, restoring, 91 ,

211 - 214 Brand Promise, 99 - 104

Brand Character, 99 Brand Claim, 99 Brand Support, 99 British Airways (BA),





segmentation, 93 - 98

238 INDEX

renovation, 42 , 107 - 110 reorganization, 78 reputation (brand), 143 - 144 restoring brand relevance, 91

Brand Promise, 99 - 104 Brand Character, 99 Brand Claim, 99 Brand Support, 99 British Airways (BA),





segmentation, 93 - 98 results, measuring, 223 - 225 results culture, reinforcing, 137

low- versus high-quality growth, 137 - 138

Trustworthy Brand Value Brand-Business Scorecard,

140 - 154 measurable milestones,

138 - 139 overview, 138 recognition and rewards,

139 - 140 Return on Global Learning

(ROGL), 93 revitalization

realizing global alignment, 173 Collaborative Three-Box

Model, 182 - 184 focus, 175 Freedom Within a

Framework, 173 - 174 Plan to Win, 175 - 182

rebuilding brand trust, 155 becoming a trustworthy

source of information, 165 - 167


definition of trust, 156 delivering on promises,

160 - 161 external commitment, 159 internal commitment, 156 - 159 leading debate, 161 - 163 openness and transparency,


refocusing organization, 83 brand goals, 88 - 90 financial discipline, 83 - 86 leadership marketing, 86 - 88 operational excellence, 86 - 88

reinforcing results culture, 137 Brand-Business Scorecard,

140 - 154 low- versus high-quality

growth, 137 - 138 Trustworthy Brand Value,

138 - 154 reinventing brand experience, 107

Brand Journalism, 131 - 134 changing perception of

value, 114 deal loyalty versus brand

loyalty, 116 fair value, 115 - 116 Five Action Ps, 117 - 131 innovation and renovation,

107 - 110 marketing, 110 - 113 total brand experience,

116 - 117 Trustworthy Brand Value,

114 - 115 value equations, 113 - 114

INDEX 239

restoring brand relevance, 91 Brand Promise, 99 - 104 market knowledge, 91 - 93 needs-based occasion market

segmentation, 93 - 98 rewards, 139 - 140 , 219 - 221 Ritz-Carlton, 20 ROGL (Return on Global

Learning), 93 Rules of Revitalization , 3, 81-82

realizing global alignment, 173 Collaborative Three-Box

Model, 182 - 184 focus, 175 Freedom Within a

Framework, 173 - 174 Plan to Win, 175 - 182

rebuilding brand trust, 155 becoming a trustworthy

source of information, 165 - 167





refocusing organization, 83 brand goals, 88 - 90 financial discipline, 83 - 86 leadership marketing, 86 - 88 operational excellence, 86 - 88

reinforcing results culture, 137 Brand-Business Scorecard,

140 - 154 low- versus high-quality

growth, 137 - 138 Trustworthy Brand Value,

138 - 154

reinventing brand experience, 107 Brand Journalism, 131 - 134 changing perception of

value, 114 deal loyalty versus brand

loyalty, 116 fair value, 115 - 116 Five Action Ps, 117 - 131 innovation and renovation,

107 - 110 marketing, 110 - 113 total brand experience,

116 - 117 Trustworthy Brand Value,

114 - 115 value equations, 113 - 114

restoring brand relevance, 91 Brand Promise, 99 - 104 market knowledge, 91 - 93 needs-based occasion market

segmentation, 93 - 98

S SAB-Miller, 55 Saint-Gobain Performance

Plastics, 101 Sam’s Club, 127 Sarvary, Mark, 17 , 64 - 65 satisfaction

customer satisfaction, 220 overall satisfaction, 144 - 145

Schultz, Howard, 11 , 24 , 168 Scion, 125 Schwartz, Daniel, 9segmentation of market, 93 - 98 , 121 Sephora, 58 services, 120 - 123 , 177 silos

as barrier to growth, 23 - 25 breaking down, 197

Skinner, Jim, 19 , 32 , 51 , 63 , 101 , 113 , 177 , 215

SMART objectives, 225 social value, 154

240 INDEX

Sony, 24 - 25 Sorkin, Andrew Ross, 28 Sperry, 104 Sperry, Paul, 104 Stanton, John, 34 Starboard, 30 - 31 Starbuck’s, 24 , 128 - 129 , 168 Starwood, 30 staying out of trouble. See Truths

for Staying Out of Trouble staying relevant, 211 - 214 stock buybacks, 28 Strasser, David, 49 strategy for profitable growth,

defining, 195 - 196 stronger measures (Brand-Business

Scorecard) brand loyalty, 145 - 146 brand power, 149 - 151 brand preference ladder, 147 - 148 trust, 148 - 149

Subway, 87 support, 189 - 190 Surowieki, James, 28

T Target, 25 , 48 , 72 , 127 TD bank, 124 Technomic, 212 Tempur Sealy, 17 - 18 Tendencies for Trouble, 2 - 3


and bureaucracy, 23 - 25 complacency, 17 - 20 disregard for changing world,

71 - 73 failure to innovate, 41 - 44 focus on analysts rather than


67 - 70

lack of focus on core customer, 47 - 50

lack of Plan to Win, 63 - 66 loss of relevance, 55 - 60 overview, 7-9 unwillingness to change, 37 - 40

Tesco, 52 , 85 Thompson, Don, 39 3G Capital Partners LP, 11 - 15 ,

34 , 70 Tim Horton’s, 34 time value, 153 total brand experience, 116 - 117 Toyota, 125 transparency, 163 - 164 trouble, avoiding. See Truths for

Staying Out of Trouble troubling behaviors


and bureaucracy, 23 - 25 complacency, 17 - 20 disregard for changing world,

71 - 73 failure to innovate, 41 - 44 focus on analysts rather than



47 - 50 lack of Plan to Win, 63 - 66 loss of relevance, 55 - 60 overview , 2 - 3 , 7-9 unwillingness to change, 37 - 40

trust, 148 - 149 . See also Trustworthy Brand Value

definition of, 156 rebuilding brand trust, 155

becoming a trustworthy source of information, 165 - 167


INDEX 241



163 - 164 Trust Capital, 138 , 170 Trustworthy Brand Value,

114 - 115 , 223 Brand-Business Scorecard,

140 - 154 brand loyalty, 145 - 146 brand power, 149 - 151 brand preference ladder,

147 - 148 brand reputation, 143 - 144 familiarity, 141 Five Action Ps, 151 - 152 normative data and, 152 overall satisfaction, 144 - 145 penetration, 141 - 143 trust, 148 - 149

measurable milestones, 138 - 139 overview, 138 recognition and rewards, 139 - 140 value equation

effort, 153 - 154 emotional, 154 functional, 154 money, 153 social, 154 time, 153 value, 153

Truths for Staying Out of Trouble acting like a leader, 207 - 209 breaking down silos, 197 changing reward system, 219 - 221 creating positive momentum,

215 - 216 defining strategy for profitable

growth, 195 - 196 instituting accountability, 217 - 218

institutionalizing change, 191 - 193 making demographics matter,

203 - 206 measuring results, 223 - 225 overcoming cultural resistance,

187 - 190 overview, 185-186reinforcing authenticity, 199 - 201 staying relevant, 207 - 209

Twelve Tendencies for Trouble. See Tendencies for Trouble

Twelve Truths for Staying Out of Trouble. See Truths for Staying Out of Trouble

Twitter, 8, 162

U Ullman, Mike, 63 - 64 Uniqlo, 48 United Airlines, 2

V value, 153

changing perception of, 114 fair value, 115 - 116 Trustworthy Brand Value, 114 - 115

Brand-Business Scorecard, 140 - 154

effort, 153 - 154 emotional value, 154 functional value, 154 measurable milestones,

138 - 139 money value, 153 overview, 138 recognition and rewards,

139 - 140 social value, 154 time value, 153

value equations, 113 - 114 Velez, Paco, 169 Verizon, 132 VW, 159

242 INDEX

W Walgreens, 48 Wal-Mart, 48 - 49 , 127 Walton, Sam, 127 Wendy’s, 2 , 72

operational excellence and leadership marketing, 87 - 88

Plan to Win, 121 , 179 - 181 Whole Foods, 73

demographic changes, 204 - 205 perception of value, 114

Williams, Brian, 159 Williams Sonoma, 92 Windows 10 release, 53

X-Y-Z YUM!, 140

Zappos, 14 Zara, 127 Zhang, Daniel, 221

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