STRATEGIES
WHY WINDOWS
As the person who named & launched Microsoft Windows, I have been contacted recently by multiple reporters and analysts, given that Windows turned 30 years old this year. Amazingly, Microsoft Windows drives ~70% of the computers in the world today (MAC is a far distant 2nd @ 16%). There are many rumors/misunderstandings regarding what we did to brand Microsoft, much less why the name “Windows.” If interested, I suggest you read one of the more accurate books on Microsoft's early history, Barbarians Led by Bill Gates, written by Jennifer Edstrom and Marlin Eller. The following is a summary of my experience. When I joined Microsoft as Vice President of Corporate Communications, I came from the cosmetics/skincare industry, where perception (branding) was more important than reality. The branding strategy for Microsoft Corporation & the specific names for the products (which were part of the company branding strategy) came from the original branding strategy developed and executed at Neutrogena Corporation. Along with identifying & nurturing the support of industry opinion leaders, pithy, generic-like names were selected to force the usage of the company name in editorials, etc. You are probably familiar with Neutrogena Soap. Over time, we launched Neutrogena Body Lotion, Neutrogena Body Oil, Neutrogena Shampoo, etc. We applied a similar strategy when we began launching software applications. For example, before being well-known as a word processing program, the name “Word” was utilized because it could not stand alone in an editorial. The editors felt compelled to put the company name, Microsoft, in front of the name “Word,” this began the process of branding the company, not just a product. Thus, the company's corporate name was well-known and respected when Microsoft went public. WordStar was an alternative to Microsoft Word, which never required the company identity, MicroPro. WordStar was a name that stood alone in editorial. Most users of WordStar never identified it with MicroPro. Did the MicroPro branding strategy hurt its IPO? We believe it did. Now that you know our “master plan” for branding, you will understand why “Windows” was named “Windows.” We were fortunate to introduce our graphical user interface (GUI) late. Other GUIs had been launched ahead of us so we could review how the opinion-leading editors were describing them. The standard description of the GUIs then was that they were “windowing systems” for your desktop. Therefore, if all these GUIs already launched before the Microsoft GUI were described as “windowing systems,” the name “Windows” became essential, not optional. In other words, rather than just being another “windowing system” (“me too” strategy), in one announcement (pivotal name selection), we re-positioned all the existing “windowing systems” as being part of us (i.e., we defined the category, and everybody else reinforced our selected name). Interface Manager, or at times Interface Office Manager, was a code name for “Windows” that got some initial internal traction without a “final name” that took a little time to determine in parallel to the actual GUI development process. Today, “Windows” is a global dominant stand-alone brand name. Still, back in the early 80s, it was usually referred to as “Microsoft Windows,” not just Windows, because the editorial community felt a need to be clear that they were writing about Microsoft Windows & not one of the other “windowing systems.”
TRUST FACTOR
In the early 80s, our goal was to establish Microsoft as the quality brand / the trusted software brand. Establishing trust/confidence in a company brand makes every new product introduction from a company more efficient & more effective. Consider classic examples in major categories like cars (Mercedes) or even skin care (Neutrogena). Regardless of the new car model from Mercedes or a new skincare item that Neutrogena introduces, most consumers already believe the claims the company makes about the latest product because of the trust factor they have with these brands. In the early 80s, we knew if we could establish the trust factor for Microsoft in software, it would go a long way to helping us dominate the category (even if we were not always first in with an application and/or even if a new software program required multiple updates). To achieve this, we executed three primary communication strategies: 1. Through research, we identified the essential things software buyers needed to know/believe about Microsoft to position Microsoft as the quality brand/trusted brand in the category. We then highlighted these things about the company in all communications -from product brochures to press releases to instruction manuals, and they all delivered the company mantra. A few examples: • For many years, we made the statement, “When It Is Yours, It Is Still Ours.” This promoted the fact that we had a 24/7 technical support phone line. Why? Research revealed that new software users had a universal fear that they would install new software but could not figure out how to use it. This statement alone significantly impacted the trial of new Microsoft applications. • Research also revealed that even ordinary consumers (not just business people) trusted IBM (the technology leader in the 70s & 80s). Therefore, because we licensed the MS-DOS operating system to IBM (which they called PC-DOS), we also made the statement, “We Are The Company That Taught The IBM PC How To Think.” 2. We identified the opinion leaders within the software industry (i.e., heavy software users, etc.) & then we devoted a disproportionate amount of resources to influencing them. Once the opinion leaders in a category trust a brand, it is only a matter of time before consumers begin making it the preferred brand. • The above research also revealed that heavy software users were members of groups such as the Boston Computing Society (note; these societies existed in every major U.S. city in the 80s & 90s). But most interesting is that there were 15,000 heavy users when you added up all the groups and that they were making ~15 software recommendations per week to new software users. It was not brain surgery. It was simple math. (15,000 x 15 x 52 = 11,700,000 recommendations per year). Influence the members of these groups & you will own the category. Therefore, while other software companies began spending heavily on TV commercials and running full-page ads in the Wall Street Journal, Business Week, etc., we focused on influencing the members of these societies. We made presentations at their meetings. We gave them beta software and solicited input. We gave them exclusive technical support phone numbers. The result was that within months, not years, Microsoft became “the preferred brand” among the members of these groups. 3. Last but not least, we executed the naming strategy that resulted in the company brand, Microsoft, being essential in all product communications. As I mentioned in a previous post, individual product names like Windows & Word were designed to have the company name Microsoft proceed with them. In the 80s, we measured “awareness & attitudes” about Microsoft among targeted opinion leaders & consumers every six months. Through this monitoring, the impact of these communications strategies became clear. While awareness of Microsoft went up, more importantly, the attitudes about Microsoft among those “aware consumers” also changed. Microsoft software became the preferred brand among consumers, not just highly technical users. We always said internally that we would know our branding strategy was successful when consumers started asking for the Microsoft brand regardless of application, which began in the late 80s / early 90s. If you have any questions or comments or need help developing a brand for your company or product, please feel free to contact me at Rowland@superiorbrandstrategy.com.
POSITIONING STATEMENTS VS TAGLINES
At its fundamental core, the positioning statement states what you do, who you do it for, and your point of difference. It is an “internal sentence” that keeps a company focused. A tagline is an “external statement” (usually just a few words) expressing what you want your buyers, strategic partners, and investors to believe about your brand. The simpler, the better. If it delivers an “emotional hook” (something that the reader cares about), it will have a greater impact The fact is that crafting a positioning statement is easy, while creating a meaningful tagline can be challenging. By the way, a tagline is placed below the brand name and logo wherever and whenever possible. The best way for you to understand taglines is through examples with explanations. Here are three examples of taglines I was directly involved in creating, followed by my favorite tagline of all time (which I must admit I was not involved in). Neutrogena The Purist One You might recall that in the late '70s / early '80s, Neutrogena had an iconic ad campaign where the print ads of the bar of soap placed over half of the brand letters (you read “Neutrogena” with half the letters seen through the bar of soap). Interestingly, the print ads reinforced the Neutrogena tagline: The Purist One. This was a preemptive tagline in the early ‘80s because the major brands of facial soap simply could not compete with the transparency of Neutrogena glycerin soap that symbolizes “purity” to the consumer. Note: the “transparency” also benefited the subsequent Neutrogena new product launches, including shampoo, shower gel, & body oil. Microsoft The High-Performance Software Company This was the tagline of the ‘80s & ‘90s. The term “high performance” was associated with stereos & cars, so it positioned Microsoft among personal computer users as having the most features application by application. We were certainly not the easiest to use & did not try to say we were easy to use. Thus, the early adopters of Microsoft software were core/heavy users of PCs. In turn, Microsoft dominated the “computing societies,” which ultimately heavily influenced the massive number of “new PC users,” given that when asked, the core user would recommend Microsoft (not an easy- to-use software alternative). With core / heavy user support, the Microsoft brand became the brand of choice in the late 80s / early 90s (practically invulnerable to competition). Lone Star Beer The National Beer of Texas When my partner & I were retained to relaunch LONE STAR BEER (a Texas brewery with less than a high-quality beer), we changed the tagline from “The Beer That Loves to Party” to “The National Beer of Texas.” If you know anything about Texans, they firmly believe they are different than the rest of the US. Adopting this tagline had an immediate significant positive impact on distribution & sales (in fact, bars & restaurants felt compelled to serve “Lone Star Beer). The Wall Street Journal The Daily Diary of the American Dream My favorite tagline is (which I did not create). Who is the WSJ targeting? U.S. businesspeople (from entrepreneurs to Fortune 500 CEOs). This tagline is universally meaningful to US capitalists. In my opinion, this is the ultimate example of having an emotional hook in a tagline. Bottomline: write your positioning statement. Agonize over your tagline. It matters. If you need help developing a brand or tagline for your company or product, please feel free to contact me with any comments or questions: Rowland@superiorbrandstrategy.com
OPINION LEADER STRATEGY
Building a “brand” requires significant discussion, planning, and real discipline in terms of execution. While there is no one right way, certain strategies can be more efficient and potentially more effective than others. If you are a new company or division with limited resources, I would definitely pursue a very specific strategy. I refer to this strategy or approach as nurturing third-party endorsements among opinion leaders. However, it is important to recognize that under all circumstances, achieving these endorsements is not an event; it is a well defined process. To illustrate the above, let me clarify what I mean by this process. This specific process is based upon the fact that individuals (whether general consumers or decision-makers in business) tend to allow their attitudes/perceptions to be molded by third parties. These third parties are called opinion leaders. Once you identify the opinion leaders of the audience you wish to influence, you can then begin soliciting the endorsements of these opinion leaders, who will, in turn, impact the attitudes/perceptions held by your target audience. If this approach is executed correctly, no more effective or efficient way to build a brand for a product, service, or company exists. A couple of examples of this process are highlighted below: * Neutrogena Corporation In the skincare/cosmetics industry, the opinion leaders are the beauty editors of the major U.S. women’s magazines. To secure these editors' endorsements, Neutrogena targeted 3 to 4 leading dermatologists, who influenced the remaining 6,500 U.S. dermatologists through speeches, position papers, conventions, etc. Note that through due diligence, it was discovered that the beauty editors regularly relied on their favorite dermatologists to educate them on skin care issues. The creation of broad-based support for Neutrogena products among dermatologists influenced the beauty editors. As a result, articles published by these editors built demand for Neutrogena brand of skincare/cosmetic products (at almost any price). Before being acquired by J&J, Neutrogena received a disproportionate share of favorable editorials even though their marketing/sales budget was a fraction of that of Estee Lauder, L’Oreal, Revlon, Max Factor, etc. This favorable editorial resulted in significant year-to-year increases in sales and profits, which attracted the acquisition by J&J. * Microsoft Corporation In the software industry, Microsoft utilized a similar strategy to achieve dominance. As in the case of Neutrogena, Microsoft products were technically superior. However, by combining perception with reality, Microsoft was able to leapfrog competition. The opinion leaders in the software industry were the core PC users. (Note: the core user was defined by regular ownership/usage of multiple software programs). These core users, on average, made 12 to 15 specific software recommendations per week (primarily to new / novice PC users), and in 1985, there were approximately 15,000 core PC users. Their potential impact was significant yet transparent (~ 12,000,000 recommendations per year). Through research, Microsoft determined that three things influenced these core users: * articles written by specific editors in a select number of PC publications. * regional user group word of mouth on software products. * online technical support depth and accuracy. Thus, while other software companies were spending heavily on broad-based advertising and retail support promotions, Microsoft focused its efforts on the three things that it knew would impact a core user’s recommendation. Most importantly, Microsoft tracked its progress in shifting the attitudes of PC core users. The results were overwhelmingly positive. In less than 18 months, Microsoft became the brand of software preferred by the PC core user when there was a choice. Before this period, Microsoft was a distant fourth. While securing opinion leader support is an effective & efficient way to build a brand, there is a transparent yet significant additional benefit. When you are building a brand, the one thing that you can count on is that something will go wrong. It could be a problem associated with your product or something as simple as an unfair negative review in an editorial. When this happens, when an opinion leader has supported your brand, they have a vested interest in helping you fix whatever has gone wrong. Your problem is their problem because their reputation is at stake, not just your brand’s reputation.
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THE POWER OF NANO-TARGETED MARKETING FOR MAXIMUM IMPACT
In today’s digital age, email marketing remains one of the most effective ways to connect with potential clients and build lasting relationships. However, sending generic emails isn’t enough to stand out. Nano-targeted marketing allows your business to deliver personalized content that speaks directly to the needs and interests of your audience. Here’s why you should consider Nano-targeted marketing for your branding business: What is Nano-Targeted Marketing? Nano-targeted Marketing involves segmenting your audience based on specific criteria such as demographics, behavior, or interests and sending tailored messages relevant to each group. Benefits of Nano-Targeted Marketing: •Improves Engagement When content is personalized and relevant, recipients are likelier to open, click on links, and engage with your content. Nano-targeted campaigns can result in higher open rates and click-through rates. •Increases Conversion Rates Sending the right message to the right audience can significantly boost your chances of converting leads into customers. For example, emails focused on specific needs are more likely to drive actions. •Builds Stronger Client Relationships By providing value through tailored content, you can nurture client relationships and build trust in your brand. Consistent and personalized communication fosters loyalty. •Better ROI Nano-targeted marketing ensures that your content reaches the most relevant audience, which can lead to more efficient use of your marketing budget and a higher return on investment. •Helps with Customer Retention By segmenting your existing customers and sending them personalized offers or updates, you can keep them engaged with your brand and encourage repeat business. How Superior Brand Strategy Can Help You Get Started with Nan-Targeted Marketing: 1.Segment Your Audience Start by grouping your subscribers based on industry, interests, or buying behavior. The more specific your segments, the more relevant your content will be. 2.Craft Personalized Messages Use the information you gather to create content that resonates with each segment. Personalize your email's subject line and body for better engagement, and create custom graphics for each media campaign segment. 3.Automate Campaigns Automation tools can help you send targeted content at the right time, such as sending a follow-up after a product launch or a reminder before a sale ends. Automating your campaigns saves time and ensures consistent messaging. 4.Test and Optimize A/B testing your email campaigns will help determine what works best for your audience. Test subject lines, designs, and content to optimize your emails for better performance continually. 5.Monitor Results Track metrics such as open rates, click-through rates, and conversion rates to measure the effectiveness of your campaigns. Use these insights to refine your strategy. Nano-targeted marketing is a powerful tool for branding businesses. It helps you connect with the right audience and deliver content that drives engagement, conversions, and loyalty. By segmenting your audience and crafting personalized messages, you can build stronger relationships with your clients and boost your marketing ROI.
CO-BRANDING FOR IMMEDIATE CREDIBILITY WITH YOUR TARGET AUDIENCE
You may know, respect, trust, and even love one or more of the above mentioned brands. While you may not be familiar with Amaze!nc., bEQUAL, or iTRAVEL, these companies have not only successfully leveraged co-branding to build revenue and credibility, but they have also set a remarkable example for all of us. With minimal capital, they have managed to create a strong presence in the market, all thanks to their association with well-known, respected, and established brands. Amaze!nc. the first perpetual calendar for computers utilized The Far Side and Trivial Pursuit's popular content to secure immediate sales and credibility, resulting in an acquisition by a major software company. bEQUAL developed and marketed multiple DVD games in association with DreamWorks and its most popular movie franchises, such as Shrek and Madagascar. They created question-and-answer-based video games using The Discovery Channel, National Geographic, A&E, and The History Channel content. bEQUAL was later acquired by a major games company. iTRAVEL created CD-ROM travel videos that combined content produced by United Vacations. Each CD-ROM promoted travel to various locations, including Hawaii, Tahiti, the Bahamas, and more. iTRAVEL enticed viewers to visit these locations and offered significant savings on United Vacation packages. Eventually, iTRAVEL was acquired by a major travel agency network. Consider this: would you have been inclined to purchase a computer calendar from Amaze!nc., a DVD game from bEQUAL, or a CD-ROM travel package from iTRAVEL? Probably not. Yet, these companies have managed to generate significant revenue and attract acquisitions by securing rights that allowed them to promote their products in association with respected, high-profile, and credible brands. Are there similar opportunities for your business? The world of co-branding is open to all, and by exploring these opportunities, you can take your business to new heights. Now, ask yourself: Are there well-known, respected, credible brands among your target buyers with which an association could significantly impact your business? Every emerging software company that utilizes Windows promotes this association in all communications. The potential impact of such associations on your business cannot be overstated. Note: Co-branding to build a brand is not limited to emerging companies. Consider examples like BOSE speakers in BMW, NutraSweet in multiple food products, and Hershey chocolate in various cereal brands. If you would like to understand better how Amaze!nc., bEQUAL, or iTravel utilized co-branding to build each company, please get in touch with Rowland Hanson at Rowland@superiorbrandstrategy.com.