brand strategy

“Kraft Singles” out its Snack Division

Branding Insights
One of a series by John Paulo Cardoso, Spyder Works Chief Creative Officer & Founder

rebranding

There are no red flags with Kraft’s new name change. On Aug. 4, 2011, Kraft Foods Inc. (NYSE:KFT) announced plans to divide and create two independent public companies: a high-growth global snacks business and a high-margin North American grocery business. And now on March 21, 2012 they announced its plans for its snack food corporate name as Mondelez International, Inc.

As their press release describes it, “‘Mondelez’ (pronounced mohn-dah-LEEZ’) is a newly coined word that evokes the idea of “delicious world.” “Monde” derives from the Latin word for “world,” and “delez” is a fanciful expression of “delicious.” In addition, “International” captures the global nature of the business.”

What this demonstrates is that the company truly understands the strength of its brands and how they have built a relationship with customers. And now they are using this knowledge to manage the branding of its new independent company to leverage the platform “make today delicious.” The move to invent a new word and taking the time to let everyone know the phonetic spelling is the right thing to do for a multinational conglomerate rather than trying to leverage one of its current brand names. As the Chairman and CEO Irene Rosenfeld has said regarding the new global snacks company, “we wanted to find a new name that could serve as an umbrella for our iconic brands, reinforce the truly global nature of this business and build on our higher purpose – to ‘make today delicious.’ Mondelez perfectly captures the idea of a ‘delicious world’ and will serve as a solid foundation for the strong relationships.” Kraft Foods Inc. brands know how to build relationships with its customers and now it’s applying it to the market and investors.

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Innovation Insight: The Dove Spa Experience

One of a series by Ken Tencer, Spyder Works CEO

Dove

Leaving a meeting the other day in Toronto, I found myself walking past a Dove Spa – one of a growing chain of spas designed by the makers of Dove soap and beauty products.  I am not the target user, but I was impressed. I was impressed by the clean, minimalist form and function of the design. But I was even more impressed by the focus with which Dove has recreated the brand’s innovation strategy in business form.

As Dove says on its Web site, “At Dove Spa our philosophy is simple – we want to make women feel more beautiful every day by inspiring them to take great care of themselves.” This is yet another extension of Dove’s award-winning focus on “real beauty.” This commitment to “real beauty” from the original “beauty bar” (Dove has always positioned itself as more than a maker of soap) is continually opening doors for one of the world’s biggest and most elastic brands.

Is your company in the business of making soap, or selling beauty? Don’t focus on what you make, but how you change customers’ lives. Do you sell hotel rooms or help people book dream nights? The choice is yours.

If your business’ definition is too narrow, what can your growth prospects be?

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How does Social Media Facilitate Innovation?

Innovation should always be on the forefront for organizations, and needs to be applied to many facets – products, services and processes. The question is, how do organizations use social media to foster innovation in one or all of these areas?

The answer: use social media to bridge the gap between you and your customer. We all talk about continuously engaging with our customers by finding new ways to strengthen our relationship with them by coming up with new and improved products and services. Well, we have never had a better tool to research and get true insight into what customers think, feel, want, lack or need than social media. It provides us an open, one-to-one communications channel with hundreds of thousands of people! And it does it through an open, engaging and immediate response vehicle.

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