Zag-Foodland
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Foodland was a popular supermarket chain in Hawaii that opened its first store in 1948 and grew to 29 locations statewide. It focused on excellent customer service and supporting local schools and non-profits, raising over $54 million over the years. However, it struggled financially with the arrival of big box stores and closed its doors in 2019. The 17-step process outlines developing a clear brand identity and vision, differentiating from competitors, crafting compelling messaging, and focusing on customer experience to build loyalty over the long run.
Zag-Foodland
- 1. THE 17-STEP PROCESS 1. WHO ARE YOU? WHERE DO YOU HAVE THE MOST EXPERIENCE? WHERE DOES YOUR PASSION LIE? WHERE DO YOU HAVE THE MOST CREDIBILITY? WHAT GETS YOU UP IN THE MORNING? WRITE A FUTURE OBITUARY FOR YOUR BRAND WHAT WOULD YOU LIKE POSTERITY TO SAY ABOUT YOU? Hawai ‘i Mourns Foodland Foodland, a local supermarket chain that introduced Hawai‘i to its first modern day supermarket back in 1948, closed its doors last Friday. It ran a very popular and successful business for almost 60 years. From a single grocery store in Honolulu, the company grew to 29 locations statewide from Kaua‘i to the Big Island. Foodland closed due to financial losses that came about with the openings of Walmart and Whole Foods. Maurice J. Sullivan launched Foodland with the simple hope-that by treating your customers well they will come back. Their goal were to focus on taking care of the customer, growing sales, improve profitability, build upon their strong local image, and enhance employee relationships. In 1988, Foodland started their Shop for Better Education Program which has helped over 400 public and private schools and as of 2002, earned more than $6 million in computers, books and software. In 1995, they were the first supermarket in the state to introduce a frequent shopper program to its customers. In 1999, they launched their annual Give Aloha Program which raised over $48 million for local non-profit organizations by matching a portion of each donation. Foodland will be missed.
- 2. 2. WHAT DO YOU DO? WHAT BUSINESS ARE YOU IN? DECIDE WHAT YOUR PURPOSE IS, BEYOND SELLING A PRODUCT OR SERVICE STATE YOUR PURPOSE IN 12 WORDS OR LESS Create an outstanding shopping experience for our customers while building our community. Grocery/Supermarket
- 3. 3. WHAT’S YOUR VISION? WHAT DO YOU WANT TO ACCOMPLISH IN 5, 10, OR 20 YEARS? PAINT A VIVID PICTURE OF YOUR FUTURE HOW CAN YOU MAKE THE VISION PALPABLE AND EXCITING? TEST IT ON A REAL PIECE OF COMMUNICATION GO BACK AND REFINE IT FURTHER USE IT REPEATEDLY TO ILLUSTRATE THE DIRECTION OF YOUR BUSINESS PRODUCE VISION DELIVERABLES: A BROCHURE, A SCRIPT, AN IMPORTANT SPEECH – ANYTHING THAT FORCES THEM TO ARTICULATE THEIR VISION TO THE OUTSIDE WORLD Our vision is to be Hawai‘i’s leading supermarket. Our journey to leadership is one that will never end, one in which we must continually challenge ourselves to strive for excellence. Through unmatched quality, responsiveness, innovation and service, we will provide an outstanding shopping experience to our customers while working to build a better Hawai‘i.
- 4. 4. WHAT WAVE ARE YOU RIDING? CAN YOU RIDE MORE THAN ONE TREND AT A TIME? MAKE A LIST OF THE TRENDS THAT WILL POWER YOUR SUCCESS HOW POWERFUL IS IT? WHAT TREND IS POWERING YOUR BUSINESS?
- 5. 5. WHO SHARES THE BRANDSCAPE? WHO COMES FIRST, SECOND, AND THIRD IN CUSTOMERS MINDS? DESIGN A STRATEGY TO BECOME NUMBER ONE OR TWO WHO ELSE COMPETES IN YOUR CATEGORY? OR, BECOME THE FIRST MOVER IN A NEW CATEGORY FIND OUT HOW YOUR BRAND RANKS WITH CUSTOMERS CIRCUMSTANCES THAT FAVOR THE LEADING BRAND: when the CATEGORY is confusing when COMAPARISON is difficult when the PRICE is high when the INTEREST level is low when a STANDARD is needed when the BENEFITS are intangible when the FEATURES are technical when the ADVANTAGES are unprovable when the RISK factor is high when customers want PRESTIGE FIRST MOVER + POPULARITY = LEADERSHIP Times, Safeway, Star Market, Whole Foods (Soon to open), Costco, Sam’s Club
- 6. 6. WHAT MAKES YOU THE “ONLY”? WHAT’S THE ONE THING THAT MAKES YOUR BRAND BOTH DIFFERENT AND COMPELLING? COMPLETE A SIMPLE ONLINESS STATEMENT ADD DETAIL BY ANSWERING WHAT, HOW, WHO, WHERE, WHEN, AND WHY Our brand is the ONLY __________ that ________. 1) In the first blank, put the name of your category. 2) In the second blank, describe your zag. “ ONLINESS” IS THE TRUE TEST OF A ZAG. IF YOU CAN’T SAY YOU’RE THE “ONLY,” GO BACK AND START OVER. WHAT: What is your category? HOW: How are you different? WHO: Who are your customers? WHERE: Where are they located? WHY: Why are you important? WHEN: When do they need you. WHAT: Supermarket. HOW: How are you different? WHO: Anyone who consumes food. WHERE: Surrounding community. WHY: We supply them with food to eat. WHEN: When they run out of food. Our brand is the ONLY _supermarket_ that __?__.
- 7. 7. WHAT SHOULD YOU ADD OR SUBTRACT? HOW DO THE REMAINING ELEMENTS ALIGN WITH YOUR VISION? DECIDE WHICH OFFERINGS TO KEEP, SACRIFCE, OR ADD WHAT NEW BRAND ELEMENTS COULD STRENGTHEN YOUR ONLINESS? WHAT EXISTING BRAND ELEMENTS ARE UNDER-MINING YOUR ONLINESS? BE BRUTAL-IT’S BETTER TO ERR ON THE SIDE OF SACRIFICE MAKE A LISTS OF ALL CURRENT AND PLANNED OFFERINGS AND BRAND ELEMENTS The rule of thumb is simple: If adding and element to your brand brings you into competition with a stronger competitor, think twice. The quickest route to a zag is to look at what competitors do, then do something different. No-REALLY different. Add: RFID Technology – scan tags for checkout. Benefit Fundraisers – Wine tasting, poke contest, etc. Different Store Layout – Not the conventional look. R-Fields – expand selections. Special Beer Section Subtract: Floral selection – grocery store, not a floral shop. Bakery Customer Service – can’t try to compete with other companies. Maika`i Card – no card needed for discounted items.
- 8. 8. WHO LOVES YOU? HOW CAN YOU MANAGE THE “GIVES AND GETS” SO EVERYONE IS HAPPY? DECIDE HOW EACH PARTICIPANT WILL BOTH CONTRIBUTE AND BENEFIT WHO MAKES UP YOUR BRAND COMMUNITY? DIAGRAM YOUR BRAND’S ECOSYSTEM A brand is part of an ecosystem in which each participant contributes and each participant benefits. A brand exists within a community, and the community benefits from the brand. What will the customer get from joining the tribe? How about the employees, producers, neighboring shops at each location, local cops, local school system, community charities, the investors, partners, suppliers who build the brand, and the industry as a whole. To keep the system healthy and growing, everyone needs to contribute, and everyone needs to benefit. COMPANY Community Suppliers Management Store Employees Customers WHAT IS IT THAT SPAWNS SUCH LOYALTY? Non-profit Organizations Schools
- 9. 9. WHO’S THE ENEMY? WHICH COMPETITOR CAN YOU PAINT AS THE BAD GUY? TELL YOUR CUSTOMERS WHAT YOU’RE NOT, IN NO UNCERTAIN TERMS Make sure you take on the biggest, most successful competitor you can find. Why? Because it puts the RADICAL in radical differentiation. The goal is not to topple the big guys, but to employ the principle of contrast to throw your zag into sharp relief. Times
- 10. 10. WHAT DO THEY CALL YOU? IS IT SUITABLE FOR BRANDPLAY? DOES IT HAVE CREATIVE LEGS? FIND OUT IF THE NAME CAN BE USED AS A URL IF IT’S TOO LATE TO CHANGE IT, IS THERE A WAY TO WORK AROUND IT? IF IT’S HURTING, IS THERE AN OPPORTUNITY TO CHANGE IT? IS YOUR NAME HELPING OR HURTING YOUR BRAND? DETERMINE HOW EASY OR DIFFICULT IT WILL BE TO LEGALLY DEFEND MAKE SURE IT’S EASY TO SPELL AND PRONOUNCE CHOOSE A NAME THAT’S DIFFERENT, BRIEF, AND APPROPRIATE FOODLAND
- 11. 11. HOW DO YOU EXPLAIN YOURSELF? WHAT’S THE ONE TRUE STATEMENT YOU CAN MAKE ABOUT YOUR BRAND? TURN YOUR TRUELINE INTO A TAGLINE TO USE WITH CUSTOMERS AVOID ANY COMMAS OR “ANDS” CRAFT A TRULINE THAT TELLS WHY YOUR BRAND IS COMPELLING A trueline is the one true thing you can say about your brand, based on your onliness statement. It must be something that your competitors can’t claim, and something that your customers find both valuable and credible. Your trueline is your value proposition, the reason your brand matters to customers. From a customer’s perspective, these are the basic, differentiating truths about these brands. They can’t be reduced, refuted, or easily dismissed. The key to crafting truelines and taglines is to focus on a single proposition. If you find yourself using commas or “ands” to write your tagline, you may need more focus. The rule? One proposition per brand, By translating your trueline into a more polished form and a slight shift in emphasis toward the customer you create a tagline. 1. A friendly store is always near by. 2. Serving you is the most important thing we do. 3. End long lines. Food, Family, Friends
- 12. 12. HOW DO YOU SPREAD THE WORD? HOW CAN YOU ALIGN ALL YOUR COMMUNICATIONS WITH YOUR ZAG? ONLY COMPETE AT THE TOUCHPOINTS WHERE YOU CAN WIN HOW CAN YOU ENROLL BRAND ADVOCATES THROUGH MESSAGING? HOW CAN YOU UNPACK YOUR NAME, TRUELINE, AND TAGLINE? MAKE SURE YOUR MESSAGE IS AS DIFFERENT AS YOUR BRAND Newspaper Ads, monthly newsletter, TV, radio
- 13. 13. HOW DO PEOPLE ENGAGE WITH YOU? WHICH TOUCHPOINTS WILL LET YOU COMPETE IN WHITE SPACE? SEE WHICH COMPETITIVE AREAS YOU CAN AVOID ENTIRELY WHAT ARE YOU SELLING AND HOW ARE YOU SELLING IT? DISCOVER CUSTOMER TOUCHPOINTS WHERE YOU’LL BE UNOPPOSED MAP YOUR VALUE PROPOSITION AGAINST THOSE OF YOUR COMPETITORS WHAT CAN YOU OFFER THAT COMPETITIORS CAN’T OR WON’T?
- 14. 14. WHAT DO THEY EXPERIENEC? WHO WILL BE YOUR COMPETITION AT EACH TOUCHPOINT? MAP THE CUSTOMER JOURNEY FROM NON-AWARENESS TO FULL ENROLLMENT WHERE SHOULD YOU PUT YOUR MARKETING RESOURCES? HOW WILL CUSTOMERS LEARN ABOUT YOU? HOW CAN YOU-”ENROLL” THEM IN YOUR BRAND? BET YOUR RESOURCES ON THE EXPERIENCES THAT ZAG WHERE SHOULD YOU NOT PUT YOUR MARKETING RESOURCES? MAKE A LIST OF TOUCHPOINTS PRIORITIZE THEM ACCORDING TO THEIR POTENTIAL FOR ALIGNMENT Outstanding shopping experience
- 15. 15. HOW DO YOU EARN THEIR LOYALTY? HOW CAN YOU AVOID CREATING A “DISLOYALTY PROGRAM?” DON’T MAKE NEW CUSTOMERS FEEL PUNISHED OR EXCLUDED HOW CAN YOU HELP CUSTOMERS BUILD BARRIERS TO COMPETITION? GIVE LOYAL CUSTOMERS THE TOOLS TO INTRODUCE NEW CUSTOMERS START BY BEING LOYAL TO CUSTOMERS By providing quality items and excellent customer service.
- 16. 16. HOW DO YOU EXTEND YOUR SUCCESS? HOW DO YOU KEEP GROWING THE BRAND YEAR AFTER YEAR? AVOID EXTENSIONS THAT UNFOCUS THE BRAND’S MEANING AVOID EXTENSIONS THAT BRING YOU INTO COMPETITION WITH LEADERS ADD EXTENSIONS THAT REINFORCE THE BRAND’S MEANING CHOOSE BETWEEN A HOUSE OF BRANDS AND A BRANDED HOUSE “ House of Brands”: A company that markets a range of separate brand names. “ Branded House”: A company itself is the brand, and its products or services are subsets of the main brand. Treating our customers well.
- 17. 17. HOW DO YOU PROTECT YOUR PORTFOLIO? HOW CAN YOU STAY FOCUSED UNDER SHORT-TERM PROFIT PRESSURE UNDERSTAND THE LONG-TERM EFFECTS OF BRAND EXTENSIONS HOW CAN THE WHOLE BE WORTH MORE THAN THE PARTS? AVOID C-SICKNESS-CONTAGION, CONFUSSION, CONTRADICTION AND COMPLEXITY