Alan M. Siegel's Blog, page 17

The role of brand in a M&A or spin-off

A merger, acquisition or spin-off is a major event for a brand. Sometimes it is the sunset of one brand and sometimes it is the sunrise of another. And usually such a significant event requires a full-scale reassessment of a company’s story, identity, brand experience and culture.

In this episode of Branding 101, our global branding experts examine why a M&A or spin-off is ripe for reassessing your brand story, visual identity, culture, and brand-led experiences, propelling the new entity into the future.

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The Plateau

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The Core, the Unmet and the Desired

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Tackling the NFL’s foul Hispanic Heritage Month celebration

In SMPL Q+A, we interview our practitioners on all things relevant to branding, design and simplicity. Here, we speak with our Associate Strategy Director, Elizabeth Rodriguez, to discuss the NFL’s egregious error for Hispanic Heritage Month, as well as how brands can authentically and actionably honor the community year-round.

What does Hispanic Heritage Month mean to you?

Elizabeth Rodriguez: For me, Hispanic Heritage Month is when I look inward and outward. It’s when I most reflect on my childhood in Mexico City and the cultural milieu that has shaped how I carry myself in the world today. I’ve always viewed the Mexican “side of myself” as a superpower: the power to retreat into a world where I can gain strength and inspiration from something rich in tradition and beauty. That said, I’ve always been mystified by this world because I know I only see a small part. There’s a vastness to it that I will never truly understand and a power beyond me because it lives in Hispanic people all over the world. During events like Hispanic Heritage Month, I get closer to understanding the breadth of the Hispanic world. I get a peek into areas unknown and nuances maybe I’ve felt but have never been able to put into words. I get to connect with those who share my “superpower” and learn about their piece of the culture that is woven into the fabric of their identity. So, this month to me, is all about connection. Connection to my superpower. Connection to my sacred place. And best of all, connection to those who share the experience of knowing another beautiful world.

As brands honor Hispanic Heritage Month, recent high-profile mistakes demonstrate what not to do. Does the logo change indicate a cultural shift within the NFL?

E.R.: Ideally, a logo change like this would be the tip of a spear representing organizational change and productive conversations happening this month at the NFL. While I can’t speak to what is happening internally, the poor execution makes me think this is, unfortunately, just a marketing campaign. It reminds me of the “rainbow washing” we see every June.

The reality is that there’s a real upside to attracting once-marginalized communities because they’re not marginal anymore. There’s an incredible rise in buying power by Hispanic Americans in the U.S., and the league is likely targeting Hispanic viewers. If the NFL wants to gain credibility with the Hispanic community, they need to speak with their actions, not a misplaced accent mark. How is the NFL empowering its Hispanic players and personnel? How is the NFL using its powerful platform to dissolve stigmas? This is what matters.

What institutional failures at the NFL enabled this shocking campaign?

E.R.: Ironically, a miss like this is a perfect symptom of the issue that the NFL is presumably trying to improve: representation. Clearly, Hispanic voices were not at the table. Clearly, there are not enough Hispanic decision-makers. When something like this happens, consumers get a rare peek into how an organization really works – we see who is calling the shots and who is not.

This is certainly a teaching moment about the importance of representation and voice. What can the NFL learn from this error?

E.R.: The NFL can learn the difference between being acknowledged and being heard. While the sentiment of acknowledging Hispanic players and personnel is a good one, it is not going to enact real change.

The NFL can see this as a clear indicator that they have work to do when it comes to truly elevating Hispanic voices in the league. Rather than seeing this as a mistake, the league can use this as a springboard for productive conversations around how they better support Hispanic players and personnel. There clearly is a disconnect here, and now is the time to bridge the gap.

Tone-deaf approaches to heritage months and other points on the cultural calendar are abundant. How can brands avoid this and authentically and actionably honor communities?

E.R.: One thing to remember is that heritage months should not be treated like holidays. This is not another opportunity to reach a desired audience segment or run a seasonal campaign. Months like Hispanic Heritage Month and Black History Month are meant to encourage powerful conversations that move our society towards understanding and acceptance.

When brands do this right, it is grounded in bringing marginalized groups to the table and letting their voice be heard. With that approach, you can’t lose because it’s authentic and real.

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Foot Locker stands to lose more than shoes with Nike cutbacks

This article originally appeared in The Drum.

Since announcing its Consumer Direct Offensive in 2017, Nike has scaled back shoe sales across retailers everywhere. The decision rocked the world of retail footwear, even before it faced the demands of digital acceleration.

While Nike’s withdrawal has affected no shortage of brands, from small independent shops to major retailers, the impacts seem marginal compared to Foot Locker.

An undeniable driver in this massive loss is that Nike makes up a significant portion of Foot Locker’s revenue – roughly 75%, according to Foot Locker’s 2020 report. No single retailer would be more than 60% of its sales in 2022, Foot Locker’s chief executive officer Richard Johnson said in an earnings call… which means Nike. It will still sell Nike shoes, but lower quantities of styles Nike is pushing through its website.

Even that massive drop in market value underestimates the impact of this shift. It’s not just about revenue or products. It’s the greater realization that, after decades of building a renowned reputation as a leading purveyor of sneakers and streetwear, the latest drops and styles might never hit its shelves again.

When digital influence was less prominent, faceless Foot Locker mannequins served as curators of style for an entire generation of kids, like me. Unlike Urban Outfitters, Zappos, DSW and Macy’s, Foot Locker has more to lose than shoes. The brand isn’t just another footwear retailer. It’s a staple in the sneaker community and a long-standing advocate of its fanatic sub-culture of sneakerheads – the same community that Nike, through the Air Jordan 1, is widely credited for catalyzing.

Eight years ago, my friend, fellow strategist and sneaker enthusiast Mario Berkeley spent some time as a Striper at Foot Locker’s most profitable location: Times Square, New York City. During his tenure, the two most valuable walls for shoppers (and Stripers) were the Men’s Nike Wall and the Women’s section, which was primarily Nike. “Many full-time employees have probably seen their checks get tighter,” he said. “Not to mention, it hurts the brand’s street cred in cities like New York where Foot Locker is more accessible to a lot of people than a flagship store.”

Losing the two biggest brands in sneakers, Nike and Air Jordan, calls Foot Locker’s brand position into question, challenges its vision for the future and threatens decades of hard-earned brand equity.

How this hurts Foot Locker’s brand

Foot Locker’s positioning and the genesis of its value is anchored in being at the heart of sport and sneaker communities, a foundation that may no longer be feasible if it doesn’t get first looks from the biggest sports brand in the world.

Nike’s departure challenges Foot Locker’s vision statement of creating unrivaled experiences for its customers. Whereas the swoosh brand’s decision is primarily fueled by its own Consumer Direct Acceleration strategy – a direct-to-consumer (DTC) approach that leverages digital to unlock long-term growth and profitability – part of that strategy includes eliminating “undifferentiated mediocre” retail partners.

The elimination of Foot Locker implies that its experiences are, to some degree, comparable to competitors’ and not differentiated enough to align with Nike’s future vision. Such a lack of endorsement sends signals that could negatively impact the perception of the Foot Locker brand among even its most loyal consumers and collaborators.

Why hope isn’t lost

Despite the impacts of Nike’s exit, hope in no way is lost for Foot Locker – far from it. However, this is a critical moment for the brand that must be handled deliberately and with intention. Foot Locker can continue to explore avenues that allow it to anchor itself at or near the center of sneaker culture.

It can look to collaborate more frequently with emerging culture opportunities, elevating up-and-comers alongside established brands – such as a local partnership with SDN. Foot Locker can double down on its community connections and drive exclusive, regional collaborations that connect to local culture in a way that’s genuine, deep and near-impossible to do on a national scale. It might even consider rekindling that old-school Slam Fest energy and bringing it to the next Sneaker Con with a curated line-up of athletes, celebrities and influencers.

To faithfully own its current position, Foot Locker must remind itself (and the world) that it’s not (only) about the shoes but the greater role it plays in culture and the unique throughline it possesses across the fashion, art, entertainment and sports worlds. Foot Locker could also pivot or lean into a new direction entirely. The only thing Foot Locker can’t afford to do is nothing.

Whatever the way forward, it’s in Foot Locker’s best interests to take this moment to re-evaluate the core tenets of its brand and re-engage stakeholders. It needs to tap into its rich heritage and ecosystem of enthusiasts (Stripers, collaborators and consumers) to continue serving the sneaker community in a distinct, meaningful and relevant way. In doing so, it may just rediscover its place in culture, with or without Nike.

 

Frankie Margotta is a Strategist 

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3 questions research should answer in a merger or acquisition

A version of this article originally appeared on Quirk’s Media.

A merger or acquisition is one of the largest shifts a business can undergo. It is a pivotal cultural, operational and financial inflection point that redefines a company’s business as well as its brand.

Mergers and acquisitions (M&A) hit a record high in 2021, reaching $5.9 trillion in revenue. That spending spree persists today, with 2022 predicted to be another strong year: 89% of executives expect their deals to stay level or increase. Since January alone, there have been such powerhouse deals as Amazon’s purchase of MGM Studios for $8.5 billion and Microsoft’s purchase of Activision Blizzard for $68.7 billion.

With deals reaching 10 figures or more, you’d expect that all elements of the unification would be given their due diligence. Yet the value of thorough research to better understand the equity of all brands involved – both externally and internally – is more often than not low on the list of priorities when it should be taken into greater consideration.

Your brand is the face of your company. It serves as a guide for making key business decisions and represents how end-customers will form an opinion about your company. With M&As being such a critical, sensitive moment in a company’s history, it is vital to have a thorough understanding of how your brand, as well as any acquired brands, are viewed by both employees and target customers.

Brand research

Research provides a tangible evaluation of the intangible: your brand. Well-executed fact-based research—primary or secondary; qualitative or quantitative—is one simple strategy to better understand your brand and acquired brand(s) that can help in the decision-making process and put a new entity on the right path. Because research is void of preconceived notions and internal biases, it presents a fact base to guide all other decisions.

During the M&A process, brand research should seek to resolve three key questions:

Why does your brand matter to customers?Does your brand need to change?How does your brand impact employees?

Let’s take a deeper dive to get to the core of what these considerations entail.

Why does your brand matter to customers?

The values, principles and core strengths that lay the foundation of your brand keep you grounded and honest, helping to illuminate the road ahead. Your brand should serve as a gut check for all actions and decisions your company makes, motivating both employees and customers.

So how do you go about organizing the established brand assets in order to create a clear and simple brand message? The key is to align your brand with customer drivers of preference and purchase. Rigorous quantitative research approaches can identify what truly motivates customers to choose some brands over others. At Siegel & Gale we’ve had the greatest success using our EyeOpener methodology for this purpose. EyeOpener utilizes statistical modeling through a derived approach to better understand the subconscious scorecard customers use when deciding between brands. Much like the name implies, it often reveals surprising results of what most influences your customers’ brand preference.

Establishing fact-based preference drivers will highlight the strategic steps your company needs to take and enable your company to deliver on what matters most to the target audience.

Does your brand need to change?

Understanding drivers of brand preference for your customers naturally leads to the next question: does your brand need to change? In order to answer this, it’s important to have a full evaluation of your brand’s perceptions and associations. In-depth research will inform their level of familiarity in the marketplace; their perceived strengths and weaknesses; and the products and services customers expect and want from each. Regardless of methodology, all of these key metrics should be captured.

The analysis gleaned from this perception research can tell you if each brand is excelling or lacking in the same area. Perhaps the acquired brand shares many similar traits to the acquiree. Or perhaps the two brands have diverging traits and associations. Each of these findings can lead to dramatically different brand positioning and architecture solutions.

Research takes the guesswork out of adapting your brand to try and communicate this new value and how it impacts your key audiences. Brand positioning, architecture, communication, and even design will be informed by the right research approach. It is only once this information is collected and analyzed that you can align on shared strengths, what to highlight and what to walk away from. It is what guides you on how to best tell your newly formed story.

How does your brand impact employees?

A common pitfall when evaluating the potential success of M&A is omitting what is arguably the most important audience: your employees. Since employees can either be your biggest brand advocates or your biggest roadblock, it is essential to understand their level of engagement and how they feel about such a significant change.

At a base level, simply communicating how decisions are validated by research will have positive effects during times of change, helping to give employees a sense of stability and understanding. Facts, evidence, and reason can also help unite senior-level employees struggling with this new relationship, thus mitigating an issue which can threaten the process’s success.

As an added step, taking the time to research your own employee base ensures every stakeholder feels heard and can yield entirely new insights. Different brands bring different cultures along with them; being able to pre-identify any potential pain points ensures that a culture clash is minimized as two separate companies transition to a single unified entity. In order to do so, you must identify where the real brand champions lie in your workforce, and how best to leverage their drive and passion to get all employees on board.

Lastly, it is worthwhile to measure brand perceptions internally. We often find that perceptions of a brand externally do not match up to perceptions held by a brand’s own workforce. At Siegel & Gale we frequently recommend taking the time to ask employees about many of the same attributes we capture in our EyeOpener research. This give us and our clients the capability to measure alignment (or misalignment) of the brand internally vs externally.

Harnessing Insights

Well-executed research is a looking glass that reflects your brand and company’s true essence off of your target audience’s perceptions. It can also serve as a highly personal listening tool, with customers and employees opening up about their hopes, needs and potential concerns for your organization and its peers. Research taps into and harnesses these insights in a way that best positions a newly unified entity for ongoing success and market dominance.

 

Marc Desmond is Director, Analytics & Insights, Siegel+Gale

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Designer spotlight on…2022 Design Interns

We’re a global team of thinkers, dreamers, and builders. In our latest “Spotlight on…,” we talk with our Summer 2022 design interns. Here, Anmol Govinda Rao, Hamin Jeon and Silei Fu share their experiences as interns, discuss their signature styles and their main strengths as creatives.

When did you know you wanted to be a designer?

Silei Fu: I accidentally took an elementary-level design class when I was a freshman in college. We were asked to pair up and create a logo for each other based on personality and appearance. I felt so fulfilled when my design satisfied people.  At that moment, I knew design was what I wanted to pursue.

Anmol Govinda Rao: I had always been interested in creating art and expressing myself visually since a young age but being introduced to the Adobe software suite when I was 14 changed my perception. Suddenly, I had the means to create art on a larger and grander scale, enabling me to express myself through a much wider range of mediums. That experience kickstarted my ventures into graphic design, and as I got involved in various school-related design projects, it became more evident that design was my calling.

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What would you say your signature design style is?

Hamin Jeon: I would say my signature design style is simple and bold. I didn’t realize that I used a bold typography style on everything I create, but when I look through my website and portfolio, I can tell that I love simple and bold graphic styles.

Anmol Govinda Rao: While my design style fluctuates according to the project, the design that resonates most and that I tend to lean towards is the Swiss style. I love incorporating grids, experimenting with compositions, and discovering neo-grotesque sans serif typefaces.

 

How has it been working with a design team centered on simplicity?

Hamin Jeon:  It has been fun but also challenging compressing strategy, ideas, and values into a simple design system. But I enjoy all the design processes and collaborating with other teams.

Silei Fu: I am so obsessed by how much they can imagine and create with very concise and clear elements—the creativity under the guidelines is so concise and neat. I love how Siegel+Gale turns simplicity into reality; it influenced me a lot when shaping my style.

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What has been your favorite part of your internship so far?

Silei Fu: I love the people here! Everyone was friendly, and they offered helpful design feedback. I learned a lot through the creative process.

Anmol Govinda Rao: I think the best part of the internship has been the opportunity that I’ve been given to work on real-world projects. The idea that these designs have the potential to materialize and be seen by a large number of people will always be mesmerizing to me.

 

Do you have a favorite designer or artist?

Silei Fu: My favorite artist is Henri Matisse. I love the idea of a grown man drawing like an innocent child.

Hamin Jeon: I love Brian Donnelly, also known as Kaws. I like his 3D cast of figurative characters, and he uses pops of color, which reminds me of the Pop Art I love.

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What kind of music do you listen to when working?

Hamin Jeon: I usually listen to K-pop music while I am working—especially K-pop idol groups and some indie bands’ songs. Sometimes I will choose a playlist from YouTube.

Anmol Govinda Rao: That’s a tough question because I listen to a wide range of genres.  But when I’m in the zone, I love jamming out to alternative or indie rock. You can’t go wrong with movie soundtracks either; Interstellar’s music is an absolute gem!

 

What are three design tools you cannot live without? 

Anmol Govinda Rao: The three design tools that I absolutely depend on are my laptop, sketchbook, and a good cup of coffee!

Silei Fu: Illustrator, Photoshop and Figma.

 

What is your main strength as a creative person?

Hamin Jeon: I am very open-minded and always ready to take criticism.

Anmol Govinda Rao: Versatility and the drive to take on any kind of design project.

 

Your biggest weakness?

Hamin Jeon: Lack of self-confidence. Self-doubt can be a good thing as a designer, but sometimes I need to be sure of my decision.

Anmol Govinda Rao: The constant need for reassurance. I hope this answer is right…

 

And lastly, what would you be doing if you weren’t in design?

Silei Fu: A lawyer, archaeologist or novelist.

Hamin Jeon: I’d be a Pâtissier, like a baker.

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Pressing play: 2022 Summer intern project

Congratulations to the Winning Siegel+Gale 2022 Intern Project!

Each year, we host a diverse group of summer interns across our offices and practices. Our interns have two roles: one, to assist their practice leads as they learn about branding through real client work, and two, to work together to create a brand based on a fictional project brief.

This year, we split our interns into two groups (East Coast and West Coast) and tasked them with a fictitious prompt: an investor purchased the rights to the Blockbuster brand and is reinventing it as a streaming aggregator—a single app that partners with and provides access to a vast variety of streaming app content and subscriptions in one place.

The two groups of interns presented their brands to the company and a panel of judges scored the presentations on a rubric.

Both teams expertly reimagined the iconic brand, weaving both nostalgia and innovation into the final presentations. And, like the millions of Blockbuster-movie-lovers who had come before them, our judges were on the edges of their seats—enraptured by the Oscar-worthy performances. (We might have even spotted a judge eating a bag or two of popcorn.)

Please see our winning presentation below.

Many thanks to all the Siegel+Gale employees who served as managers and mentors of our 2022 interns. And a special thanks to Cristina Ciccone, Jared Fink, and Aaron Hall for leading the project teams.

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Ticket to ride: Redesigning the passport

There are 13 quotes in the U.S. passport. Only one is by a woman: the Black activist, author, and educator Anna Julia Cooper. Her quote reads, “The cause of freedom is not the cause of a race or a sect, a party or a class—it is the cause of humankind, the very birthright of humanity.” Despite including both Anna Julia Cooper and this diversity-celebrating quote, the U.S. passport does not reflect the country’s breadth of diversity.

In honor of Anna Julia Cooper’s birthday on August 10th, we asked our global design team to reimagine the passport, creating one spread that either celebrated a voice related to a culture of their choosing or celebrated the diversity of the world.

The designs are spectacularly dynamic and diverse. They reflect our status as a global firm and illustrate our core value of inclusive. Thank you to the many visual thinkers who participated in this campaign. Your work is important and impactful.

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Beyond the screen: How immersive experiences will change gaming

This article originally appeared on Media Post.

The proliferation of gaming has transformed the psychographic and demographic makeup of the gaming community. Shedding the stereotype once attached to gamers as solitary outliers, the “casual gamer,” represents a newly emerged market segment.  Meeting their need is Google’s Stadia, the first-ever cloud gaming platform, promising to lower barriers and amplify portability — anywhere and everywhere — without diminishing quality or experience.

A new type of consumer

The casual gamer has given rise to evolving need-states and desires of today’s gamers, leading to three major marketplace shifts that have impacted the industry:

1. Inclusivity without sacrifice: Lower barrier to entry

The rise of PC gaming is leading market growth and replacing the once console-dominated market, quickly pivoting PCs as the tool of choice. Companies are investing in either building games for PCs or developing cross-platform solutions.

With the major advancements in graphics and complexity consumers now get with PCs, coupled with inherent laptop portability, PCs and laptops are outpacing console performance and shifting the marketplace.

New market entrants and category leaders are lowering barriers to entry by investing in affordable options and tiered product platforms. Companies such as HP, Dell, and Acer have recently released affordable (note: still quality) options for casual gamers who aspire to play like the professionals. And Stadia will continue to lower barriers and amplify portability, enabling gamers to play on any computer or smartphone while still maintaining the full quality gaming experience.

2. Relationships outside the game: Proliferation of live-streaming platforms and communities

Increased access to PCs and games has led to the proliferation of small niche communities, giving rise to the popularity of live-streaming platforms. Gamers can now follow their favorite players, enabling borderless interactions and experiences within different gaming communities in real time. While Twitch and Steam dominate live-streaming, continued encroachment from social network competitors like Facebook and YouTube is transforming the live-streaming marketplace.

3. Powerful experiences beyond the screen: Rise of a new type of sport

As innovation continues to enable more portable systems and seemingly limitless online interactions, consumers are leveling up and seeking in-person experiences that fuse physical, digital, and fantasy. Games are moving into arenas and giving rise to a new era: esports.

In response, companies are investing in live environments for gaming, garnering crowds akin to what is seen in NBA and NFL finals, with fierce fans and competitors forming highly immersive experiences that cannot be replicated in front of a computer screen.

Leveling Up

What was once an industry dominated by specs and tech innovation is now led by immersive brand experiences.  As esports continues to grow, brands like Google will create immersive experiences at every touch point.

Brands that bring virtual worlds to life through immersive experiences in unique and intriguing ways that go beyond product are the ones that will survive this groundswell and win.

For those that don’t? Game over.

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