Michael Eavis – Glastonbury – How to build a brand

Michael-Eavis-courtesy-of-Mixmag

I was lucky enough to be invited to see Michael Eavis of Glastonbury fame speak at Confetti Industry Week yesterday. The whole week is designed to give students access to real industry people and occasional legends to put their own futures into context and get insight into the secrets of success. It’s a brilliant marriage of business and education and feels very much like the future route to success for HE and FE colleges. I have no doubt that some of the young people in that room yesterday wil be inspired to even greater success.

Michael Eavis is a quite unassuming 77 year old man, who was clearly nervous in front of a relatively small audience. I guess it’s not often that he is examined that closely in his shorts and t-shirt by 200 young people. What he did though in his interview was lay down the simple rules as to how to create a brand from scratch. What was even better is that he never mentioned or hinted that Glastonbury was a brand in any way, shape or form, he just did it, by doing the right things. Another accidental hero of branding.

So as a tiny bit of background. He started the festival in 1970 with Marc Bolan headlining and (eventually) paid him £500 for his appearance. Tickets were charged at £1 each. He lost £1,500 but as he was funding it from his family dairy farm, he could afford the losses, so he kept on reinvesting in the product itself, making it better and better each year. It wasn’t until 1982, when it finally turned a profit and was recognised as the global phenomenon we know it for today.

So this is the secret to building any brand - Which isn’t that different to what I wrote in 2009.

  • Do things right.
  • Keep doing things right.
  • Keep investing in making it better and better over and over again.
  • Don’t think ‘how cheaply can we make this’ but rather ‘how good can we make it for the money we can afford to spend’.
  • Be passionate about what you do and really care about the little details, they are the difference.
  • Act decently, treat both suppliers and your customers with respect and you will get loyalty back in return.

I don’t think I was expecting to be inspired by Michael Eavis, but I was and i’m pretty sure that an awful lot of other people were too.

Picture of Michael Eavis borrowed from MixMag, with thanks.

It’s all about brand, brand, brand now

We once had a client tell us that it was impossible to differentiate in his market (he sold tiles). He told us bvery clearly that it was all about price, price, price. As you can imagine, we didn’t quite agree with him.

Well, know, some 15 years later, it looks like we have been proved right after all.

This new survey in Marketing Week about the top global brands shows an amzing statistic or two.

Brand seems to have now become more important than anything in making a purchase decision.

Making a decision to buy on price alone has declined in the past 10 years from 16% to 7%, while deciding to buy on brand alone has increased from 43% to 59%.

So it’s no longer price, price, price. It’s brand, brand, brand.

The trouble with Tesco

tesco_logo

Tesco - a brand to trust? Hmm, Not in my opinion.

Tesco as a business isn’t doing badly. It’s profits are still huge, even if they are slightly down on previous quarters in the UK.

But for me, this is masking a much bigger brand problem and that is because nothing they offer is special any more. They don’t make customers feel valued, they don’t surprise or delight us, they just keep chipping away at prices by chipping away at suppliers who have no choice but to chip away at the quality.

We have always believed that the way a brand should behave is to decide a price and then see how good you can make the product for that target price. To me, Tesco look like they are aiming to produce all of their goods as cheaply as possible and not seeing how good they can make them for the money.

This is a short term profit boost that leads to long term decline.

Look at the section with motoring and cycling products. If you are even slightly into either pastime, you will see that what they are selling is utter crap and not cheap either. This is one tiny category in a huge store, but it’s reflection reaches far and wide in perception. If everything in the store is as badly produced and as nasty as this, why would I trust the brand overall?

Unless they up their game, start focusing on quality again and start treating their customers as intelligent individuals who do have a choice, this will be the first of very many profit warnings to come.

Follow

Get every new post delivered to your Inbox.

Join 27 other followers