Battle of the Brands

Whether you, your child, or your friends play video games (or not), it's probably safe to assume you've heard about the music-simulation phenomenon that has swept the electronic entertainment sector and become the big blockbuster sellers at the holidays. It began with Guitar Hero (with a single guitar), which led to a sequel, which led to Rock Band (the 4-instrument simluation), which all culminated in 2008's Guitar Hero World Tour (4th installment) and Rock Band 2--both full 4-instrument simulations.

Now that you know the history, let's talk about the product. At this point, the Rock Band and Guitar Hero franchises have become nearly identical products. They each feature singing, lead guitar, bass guitar, and drums. The mechanics of how one plays are nearly identical. Even the song lists, at this point, have a lot of crossover. Granted, there are some superficial differences including Guitar Hero's "GH Tunes" feature, but for the most part, we're talking about Coke vs. Pepsi (if you're wondering, the price points are about the same too).

Consider this, now: NPD's 2008 figures show that the recent Guitar Hero offering outsold Rock Band 2 by a factor of 2:1 (1.7 million vs. 3.4 million units). With all other factors equalized, it is Guitar Hero's strength of branding that has propelled it to the number 1 position. The franchise has existed longer, has bigger and stronger partnerships (for example, its use of celebrities), and a huge and dedicated community.

As a shining example of how branding can make the difference with comparable competition, this instance has some takeaways we can all use against our competition. In this case, volume of advertising, superiority of product, merchandizing, and pricing do not factor into the upper hand. Rather, we see a strong leverage of external forces, consistent messaging across media and partners, and everlasting reinforcement of the core brand promise. Relentlessly pursuing this strategy has paid off in the face of competition. A good lesson for us all.

Perk Up in the New Year

If you haven't begun to feel the pinch of the current economy in your business or organization yet, you're either extremely fortunate or about to get a nasty surprise. For the rest of us who have seen prices go up and new business ebb, cost-cutting is an inevitable tactic to employ so we can bear the economic strain. A particularly painful, yet effective, area to cut costs is employee perks and benefits. However, there is opportunity here (yes, BRAND opportunity).

If you must remove perks and benefits from your employee package, it softens the blow to replace them with other, lower-cost perks. These can also be brand-building tools, if carefully selected; the types of perks you offer your employees say a lot about a company, its values, and its brand. While none of these are going to be a good replacement for health insurance or 401k matching, they could soften the blow of some cutbacks:

Creative Brand

• Impromptu field trips


• Free beer in the office


• Time off for creative projects/hobbies.

High-end Brand

• Consulting and planning services


• Concierge services


• In-office massages.

Nurturing Brand

• Daycare/on-site lactation room or emergency child allowances


• Holiday turkeys/hams


• Time off for volunteer work.
  

Don't let these examples limit you--getting creative with perks is what makes them stand out. For example, RedPeg Marketing of Alexandria, VA sometimes awards its employees their bonuses with suitcases full of cash instead of checks. It doesn't cost any more, but the impact is huge. Use these to promote your business as a place that cares about its employees but, more importantly, lives the brand that it promotes.

Sources:
Jacobson, David. Extreme Extras. April, 2006. Money.
Penttila, Chris. Employee Benefits in Today's Economy. January, 2009. Entrepeneur.
Create loyal employees with creative benefits and unique perks