From the mouth of Trout

by Yeoh Siew Hoon/Transit Café

When Jack Trout speaks, the world listens. So I was told at the Global Brand Forum when the man who “created the concept of brand positioning” was introduced.

So I listened.

First, he welcomed us to the new world order where he says brands are replacing countries in terms of economic power. Of the world’s largest economies, 51 are not countries but corporations and 500 of the world’s largest brands account for 70% of the world’s trade.

I wasn’t sure whether to be depressed or happy about that.
But there’s no flies on Trout. Before I even had time to think how I should feel, he shot out another line. “It’s one tough world out there, it’s a battle of brands, it’s the tyranny of choice, you can’t make mistakes.”

For example, there are 180 brands of dog food in the US. “I told them that in China and they laughed. They said, we eat the dog,” he quipped.

He went on – 50 brands of bottled water, 134 brands of cough/cold medicine. “Nobody knows what to take anymore.”

Strategy, he said, is all about perception. “A lot of people miss that. The mind is the battleground. This is where you win and you lose.”

He defined positioning as “how you differentiate your product in the mind of the prospect”.

“Marketing is finding your point of difference – differentiate or die.”

So how do you differentiate?

One, by attribute.

Every person is a mix of characteristics but everyone has one main attribute. Einstein – intelligent. Marilyn Monroe – sexy. Find one attribute you can take ownership of and dramatise it.

He related the story of Grenada, which wanted to promote tourism. “Their slogan was Isle of Spice. What does that mean? No one is going to go there to see cocoa, nutmeg and maize being grown and processed.

So I asked them, how does Grenada avoid being another island in the Caribbean? Is there an attribute? They said, unspoiled countryside, no people, unspoiled beaches, no development, unspoiled national parks, no tourists.”

The proposed strategy? “The Caribbean – the way it used to be.”

Two, differentiate via how it’s made.

He related a story of a Venezulean tomato ketchup, Pampero which was doing good sales until the arrival of Heinz and Del Monte. “I noticed it was brighter red than the others and I asked why. They told me it’s how it’s made. The big boys mash up the tomatoes, Pampero takes the skins off before they mash them.

“They told me, they had just bought the machines. I told them to send them back.”

Three, differentiate by being first.

The first gourmet mustard, the first flu remedy, the first packaged salad, the first natural dog food, the first organic baby food, the first shaving gel, the first global coffee house …

“There’s even the first video for dogs called Doggie Adventure. How dumb is that?”

Four, differentiate by being the latest.

People are always looking for the newest and latest in products.

Five, differentiate by leadership.

Wanted: A new positioning for Spanish olive oil. Spain produced twice as much olive oil as Italy but Italy was perceived as king. In other words, Spain made most of the oil, Italy made most of the money.

How did they communciate it? With the tagline, “2,000 years ago, the Romans were our best customers. Today, they still are”.

They then came up with a seal, “100% Olive Oil from Spain”.

Six, differentiate as a specialist.

Countries have heritage, said Trout. The US, for instance, is known for computers and airplanes; Japan for automotives and electronics; Germany – engineering and beer; Switzerland – banking and watches; France – wine and perfume, and Argentina – beef and leather.

So when an Argentinian company, which produced bar code reading machines, approached him for a positioning strategy, one of the things he did was to change the name card of the boss from “Roberte Martinez Taylor, Presidente” to “Robert M Taylor, President” and changed his address from Argentina to Miami, Florida (the company had a small office in the US).

“The perception was that it was made in Argentina. Since we addressed that perception, sales have grown 10 times and they now sell in 55 countries.

“You can’t let the facts get in the way of building perception,” he said.

I think that was when I stopped listening.

Espresso Corner is where you can relax with Yeoh Siew Hoon of The Transit Café (www.thetransitcafe.com). Each week she’ll bring her own special insights to this must-read corner of TravelMole Asia.