Tully's Letters

Normally, I’m a fairly harsh critic of the way mainstream American news organizations report the news. I often find that they over-dramatize rather than simply report the facts, and to combine two clichés, weekly/daily/hourly beat the proverbial dead horse to a pulp.

They seem to grab hold of the smallest stories and spend a tremendous amount of energy trying to make them big stories. Dramatic reporting, slick video and graphics often overshadow the story itself, because the story is not very newsworthy. I think the idea is if we brand it, people will buy it. Forget the truth, this is show business.

Last night, when I got home, I turned on the television to be greeted with the new story “Massacre at Virginia Tech.” To be honest, the reporting was better than I have seen in a long time. Somber, understated, respectful. The newscasters were not smiling while they were reporting about a very terrible event. This was unusual.

In contrast, the newscast was branded, complete with a logo, tag line, graphics package and station promos featuring graphic photos including one of a woman’s bullet riddled body.

It was as if the new program’s marketing people felt that thirty two innocent people shot on a college campus by a troubled kid with a semi-automatic pistol that was, just until recently, banned for sale in fear this would happen was not dramatic enough. They had to brand it.

As a branding specialist, I find this deeply disturbing. 

More and more clothing manufacturers are taking a 'green' approach to the textiles they use to create their latest fashions... While hemp has been around for a while, and has mostly attracted a more bohemian following among it's supporters, here are a few other garden varieties that are making their way into the wardrobes of America.

1. Bamboo -- as a crop, it is both flood and drought resistant. As a fabric, it is naturally anti-microbial, which is perfect for soft, 'non-sticky' workout wear.
2. Coconuts -- GoLite, a manufacturer of active wear, uses the tropic treat in their polyester clothing line. Carbon from the shells is odor absorbing and the shirts also provide sun protection and absorb moisture twice as fast as a regular polyester material.
3. Soy -- the byproducts from producing soybean oil and tofu are used to create silky tops and dresses, as well as baby clothes and blankets
4. Corn -- Ingeo is made from corn and is the world's first man-made fiber from 100% annually renewable resources. Not only is it sustainably grown, but it's biodegradable as well. Is is showing up in Teko hiking socks and being used by designers like NaturevsFuture.

It's no secret that Smith & Jones has been following a consumer segment called Cultural Creatives for a long time (see our UpMarket newletter issue: Peace, Love and Granola Bars).

The idea of this emerging consumer segment is finally reaching the mainstream. The March 19 edition of BrandWeek recently published the following:

Lifestyles of Health & Sustainability (LOHAS) has created an index of the top socially and environmentally responsible companies, comparing corporate action to consumer perception. Brands earning top consumer perception include Microsoft, Whole Foods Market, Kellogg's and McDonald's. For the complete LOHAS Index top 50, go to Brandweek.com (subscription required).

According to the study, 60% of U.S. adults over the age of 18 said "knowing a company is mindful of its impact on the environment and society makes me more likely to purchase their products and services."

Other points noted in the article, entitled "Good Things Come To Brands That Give" include: 57% of consumers said they feel more loyal to companies that are socially responsible and about half of them were more likely to talk to their friend and families about such mindful corporations.

More than a third said they would be willing to pay extra for products produced by socially responsible companies and 35% said they were more likely to buy stock in such corporations.

Consumer Reports recently rated McDonald's Coffee more highly than Starbucks. In their March issue, the magazine referred to the fast food giant's Premium Roast variety as 'cheapest and best.'

The tasting panel took their coffees black and without cream, milk or sugar. They also visited two locations for each company that was reviewed. Starbucks coffee was labeled "strong, but burnt and bitter enough to make your eyes water instead of open." Ouch!

So, is this an accurate perception of the American public on what is, if not the number one coffee chain in the country, certainly the one with the most retail stores (13,000 to date)? Or, if we look beyond the taste of their coffee and look at the brand experience, are we really getting anything different than McDonald's?

During the Starbucks expansion, the company installed automatic espresso machines rather than manual ones, and began to sell hot food, mugs and cds. And, yikes, they even began to install drive-through windows! As McDonald's, KFC and other fast food chains remodeled their interiors and offerings and began to move upmarket, Starbucks has begun to look less distinctive.

If the Starbucks plan is to grow to 40,000 outlets worldwide, what do they need to do to avoid moving from the upmarket to the middle? Or, is it inevitable that they will become, over time, the new Chock Full O' Nuts?

Well... if you're a successful, upmarket brand like Hermes or New Balance, and you're faced with a marketplace that is flooded with knock-offs of your product, Harvey is the man that should be on your speed dial.

Mr. Lewin pursues counterfeiters for these big names and a host of others... including Cie. Financiere Richmont AG, where he brokered a settlement of almost $600 million for the watch and jewelry maker. Counterfeit products range from the mom and pop next door selling fake Kate Spade bags to legitimate factory owners in China who might run a 'special' night shift that produces near name brand sneakers.

Virtually ever industry is affected by counterfeit goods, including app. 2% of airplane parts installed each year to around 10% of pharmaceutical drugs sold in the US. So, what words of wisdom does Mr. Lewin have for those marketers who are trying to carve out their niche?

If your a fashion designer, carefully monitor which buyers you have sent samples to for review. The are easily accessible to those interested in making a knock off of your product. When registering a trademark, it's important to register any series of words that look or sound like the trademark.

Understand that counterfeit products are not law enforcement's top priority. You need to take matters, legally, into your own hands.