Renaissance Partners, L.C.
Turnaround and Performance Improvement Advisors
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Brand Strength Monday, 15 March 2010 16:12 |  Author: Renaissance Partners |   
Brand Strength
The March issue of Sporting Goods Business features SOS Research's 2010 Brand Strength Report. The report finds several attributes (innovation, quality, marketing, etc.) all playing a role in establishing a brand's strength in consumers' eyes. But, the drivers differ for each brand and the way brands communicate with consumers continues to change in today's fast-paced, digital world.
Question:
What attributes of a brand do you believe are the most important when assessing brand strength with the consumer?
One Response:
In any era successful brands have been created, grown and sustained irrespective of the economic, demographic and psychographic audience in which they play. Recognizable brands are in one’s mind, following from the business elements that created that top of mind brand awareness. Great brands are customer-centric. Great brands reflect value (quality/price/service), continuous positive recognition and a sustainable financial model. Importantly, the developers of great brands followed a principle, that “all cues must be consistent”, creating a visual image in the minds of the consumer and observer of what that brand is, what it looks, smells, tastes or feels like and why it is desirable.
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Last Updated (Monday, 15 March 2010 16:15) |
Where to find New Opportunities – Look, Listen, Learn Thursday, 18 February 2010 07:01 | Author: Thomas H. Hicks |
Where to find New Opportunities – Look, Listen, Learn
Many researchers and demographers believe that U.S. consumption has reached maturity and certain economic factors are likely to support a future of reasonable consumption, incurred debt and savings levels. The “Baby Boom” population burst and related consumption of these folks as they reached peak earning periods of their lives, supported by easy credit and inflated real estate values, is unlikely to occur again for many years.
Fortunately many of our corporations have survived and are likely to be sustainable entities (and that is not to imply the same future of those bailed out as “too big to fail”). Our corporations have finally taken actions that were inspired by fear. They cut costs and continue to do so. They slashed excess inventory. They reined in wasteful capex and began to manage for positive cash flow and to de-leverage their balance sheets. Non performing assets have been sold or otherwise shut down. Corporations began to go-global for revenue growth in some countries that may be at the lead-point of their economic development. These actions were long overdue, yet the impact in the U.S. may not be all that beneficial to our citizens:
· Employment has been reduced;
· Jobs have been outsourced and replaced by technology’
· Capex and development capital has been directed outside the U.S.;
· Consumer spending has been de-railed, perhaps forever;
· Tax revenues have been reduced, leading to unpopular cuts to services and the prospect of higher and new taxes, federal, state and local;
· Government has continued to grow as a percent of our total economy, yet government has not done what our corporations have done by slashing costs and reducing losses (e.g., US Postal Service)
Now, our corporations have a reborn challenge that is “how to grow revenues domestically and globally”, how to develop new products and services that meet the needs and pocketbook of the “new American consumer”. To do so requires that our corporate leadership invest in research, listen to real consumers, and watch behavior of people that visit and patronize the traffic-central retailers of 2010:
· Staples, Office Depot, Office Max
· Wal Mart, Target, Kmart
· Best Buy, GameStop
· Dollar General, Family Dollar and other dollar stores
· Walgreen, CVS. Rite Aid
· Grocery and convenience stores from the high end to the lower-moderate positioned players
· FedEx/Kinko’s and UPS
We MUST observe what they buy, what they spend, and what innovative behaviors they embrace to maintain their lives within their financial constraints. We MUST test, partner and lead to develop new products, new services, new sources of revenue and new jobs.
What Causes Many Business Failures Friday, 01 January 2010 11:03 | Author: Thomas H. Hicks |
What Causes Many Business Failures
· Management in denial – hope business will improve, cannot admit failure
· Me-too Boards (support CEO, contribute little of substance and often not asked)
· Illusionary reporting – not focused on right, actionable numbers, limited or no focus on cash flow and the future
· Too much debt, limited disclosure of debt service needs in context of cash flow and liquidation value of assets
· Assumption that landlord or government paid capex is free money – in fact it gets paid back through higher overhead. “Free-money” is too-often the vehicle for growth as distressed businesses attempt to grow and spend their way out of trouble
· Lack cash flow management on daily, weekly, rolling 13 week basis
· Lack detailed business/financial plan scenarios and tracking to worst-case scenario
· Do not get and stay lean while being mean (must focus on top line too, the customer and technology to build loyalty and brand)
· Fail to use outside, objective, unbiased, independent business assessment and appraisal services and also to vet plans
· Communication – must listen to associates, customers, vendors, competitors and communicate openly and objectively with key management and associates
· Talent – must attract and retain best affordable talent and people that take action and not just “say yes”
· Management must be willing to put skin in the game take whatever actions are required for survival
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