John Stuart was the chief executive officer of the Quaker Oat Company throughout much of the twentieth century. Under his leadership the company mastered the art of selling packaged consumer goods to a growing mass market. Stuart understood the value of a brand.
Who among us does not recognize that distinctly cylindrical container of Quaker Oats with the plumpish Quaker man gazing outward at all potential buyers? “Nothing is better for thee than me!” was his trademarked slogan. Just as memorable was his iconic image: wide-brim navy hat, ruff shirt, flowing white locks and cherubic smile.
Source: https://www.huffpost.com/entry/quaker-oats-man_n_1389414
He’s “Larry” according to brand management insiders at Quaker. And Larry, like all enduring brand icons, must undergo a make-over from time to time. On the right is the “new” Larry, having shed a few pounds as befits the symbol for a health-oriented product like oatmeal.
There was, of course, a method to all this. Stuart explained the financial logic of branding this way:
If this business were to split up, I would be glad to take the brands, trademarks and goodwill and you could have all the bricks and mortar – and I would fare better than you.
Stuart was among the first practitioners of modern marketing to recognize that brands could become enormously valuable assets. Cigarettes, soap, automobiles and innumerable other products have, over time, clambered on board the branding bandwagon. Nor is it in any way a stretch to suggest that private clubs have similarly taken their own distinctive page from the branding playbook.
What is a brand?
Here is the standard definition of a brand that originates from trademark law and the American Marketing Association:
A brand is a name, term, design, symbol or any other feature that identifies one seller’s good or service as distinct from those of other sellers.
Let’s analyze how these elements knit together to give a brand its power and hold over our minds and hearts:
1. Identity: Name, design and color unite to identify the branded property as unique and different. Not infrequently brand identities are imagined to have a distinctive spirit or personality. Cattle and horses were originally branded to signify ownership and discourage theft.
2. Meaning: At its core, a brand is about something, a representation of some bigger reality. A strong brand conjures up associations and emotions. These are real and important points of difference that collectively convey a simple story or idealized aim that should be memorable. Brands that have a lasting impact do so because they hold a position in our minds; a location in our mental geography.
3. Value: The best brands—those to which we assign real value—are ones that “fit” our lifestyle and can be counted on to consistently deliver positive experiences: familiarity, companionship, fun, convenience or luxury. We repay these favored brands for the emotionally accessible, positively charged reaction they elicit with our intense, active loyalty.
Brand consultants often think of brand building as a series of steps whereby the relationship between the brand and the brand user grows stronger, reflecting its preferred status. Figure 1 suggests a pyramid-like structure that traces the stages of brand development and the creation of exceptional brand equity.
Why are brands such valuable assets?
Brands command a premium. A cup of coffee costs only a few cents to brew. But just how much did you pay for that Starbucks latte? Branded products that find favor in the market typically extract fat margins. Even better, those profit margins effectively defy erosion, resisting comparison and competition from low-priced imitators. Because brands are different, they stand out from the crowd of commodities. Club members have many choices when it comes to dining, golf and other forms of recreation and socializing. But if your club can attain “favorite place” status, then members willingly pay a premium for the value they receive.
Brands garner attention, create desire and maintain loyalty. All this makes brands the ideal vehicles for launching your marketing support. If you organize your club communications around a brand platform, you are guaranteed better efficiency (lower cost) and higher effectiveness (greater impact) than a more diffuse and varied approach. In addition to providing this essential “megaphone,” the club brand also provides you with an arsenal of useful communication tactics—logo, colors, taglines, messages—that can be deployed across a variety of channels (e.g., signage, menus, merchandise, newsletters and email).
Brands endure. Brands have legendary staying power. One of Proctor & Gamble’s first branded products targeted to a mass market was Crisco ™ —still prominently displayed on grocery shelves today just as was over 100 years ago. Branded products can even out-live the company that created them, as was the case when Twinkie maker Hostess Brands went bankrupt in 2012. The crème-filled sponge cake was a valuable asset that got sold off as the company liquidated and the new owners stepped in to satisfy the great reservoir of demand that existed for this popular confection. Brands typically value and safeguard their reputations, but when bad things happen—disasters both man-made and natural—the strong brand will persist and move beyond the bump in the road. Note that many of the well-known brands identified in our recent Pulse Survey are clubs that have withstood the test of time and continue to thrive. Recall again John Stuart’s self-serving offer: “If this business were to split up, I would be glad to take the brands. …”
Brands can extend. It may have taken brand marketers a few decades to figure it out, but brands are fully adaptable to changing circumstances and environments and, therefore, lend themselves to leverage and extension. Coca-Cola, Budweiser and Marlboro are all iconic brands, but if you take a closer look at the brand family you will find that all these original brands are now out sold by their subsequent brand extensions: Diet Coke, Bud Light and Marlboro Lights. Clubs have their own corollary: multiple sites, clubhouses and courses. Our last issue of Club Trends featured the Missouri Athletic Club (MAC), which retains its historic downtown athletics-oriented facility together with its West County family-oriented offering. The MAC also has a new co-branding venture underway with another St. Louis area club, Glen Echo Country Club. On page XX, see how the Army Navy Country Club uses its branding expertise to both unify and differentiate its two locations in Arlington and Fairfax, Va.
Clubs as Brand Communities
Brands are symbols. At one level they represent things like products and organizations, but the attachments that people make—not just with the branded entity, but with one another—can be powerfully shaped and gain a new dimension of significance because of the brand and its attached meanings.
The motorcycle manufacturer Harley Davidson discovered this several decades ago—and just in the nick of time. Japanese competition and management miscues brought the company within a whisker of bankruptcy in the early 1980s. But a new ownership group recovered the authentic character of the brand, updated the brand’s look and feel, and then did something quite remarkable: It looked to the customer base to revive the affection and loyalty that was simmering just beneath the surface.
With a little nudge from managers, Harley owners were encouraged to form—what else shall we call it? That’s right, a club!—an essentially voluntary association of Harley owners. And thus was born the Harley Owners Group or H.O.G. This group eventually gained a celebrated status with growing membership, valuable visibility and real influence on the cultural landscape. In the process, they celebrated a unique and deep brand loyalty that the company continues to rely on today.
Commercial brands and big corporations have tried to mimic the success of Harley-Davidson and create their own brand communities. Many have succeeded, though few to the extent that Harley has achieved. The bike maker’s sales of branded merchandise like clothing already generates hundreds of millions of dollars annually.
Private clubs might plausibly claim that they were among the first to discover the power and appeal of a brand community. Clubs have long recognized that voluntary association is made more valuable and sought after if it attaches to shared values and to visible expressions that integrate seamlessly with lifestyle and social aspirations. Today, corporations are imitating clubs by attempting to elevate their brands and their brand users to the in-group status that attaches to taste and style.
Private clubs can build further on this head start in brand identity. Here are a few suggestions:
Craft your story. Start with your club’s mission or primary purpose and hone that to a sharp point. Many firms have a “brand mantra,” which represents the very core of their brand meaning. Disney expresses its mantra as “fun, family entertainment;” Nike’s is “authentic, athletic performance;” and Starbucks is not so much a purveyor of coffee drinks as it is “rewarding everyday moments.” Locate your club’s essential story and stick to it.
Find your voice. Your club’s identity system should be expertly designed, consistently expressed and regularly updated. Your identity is what sets you apart and what gives membership its value. Carefully think through all the symbolic and visible aspects of your brand system: Name, logo, color, message. Extend it into the design of your facilities, the look-and-feel of your communications and the spirit of your signature events. Take care to project this tone and voice to the larger audience within the club’s orbit.
Empower members to build the club community. If management and staff are the brand stewards, then club members must be the evangelists. The brand pyramid model suggests that brand building is a step-by-step process, but the ultimate aim is clear: to build the club brand, to inject it with fresh meaning and then to communicate it widely to members and potential members alike. The management and staff create the backdrop for brand expansion and the circumstances that cement loyalty. This means strategic improvements, consistent and personalized service and then a healthy dose of imagination and creativity. Club leadership, committees, staff and engaged members set the stage—with the right facilities, the right activities and the right social lubricant—that can then ignite memorable experiences that keep the brand story alive with meaning.
Branding is more than a marketing tool. It’s an organizing principle and a visible expression of what a club means. A club with a strong brand delivers on that promise daily, with club members ultimately providing an irrefutable “reason to believe.”
The Inside Story: Sub-Branding at the Club
Brand symbolism and imagery are held together by a club’s common stories, which get repeated and reenacted with comforting regularity. How do they get created and disseminated? Club facilities set the stage and key personnel provide the direction. Marketing experts who study brand communities characterize this process as the creation of “community scripts.” A common theme unites participants and establishes the base script that then gets layered and expanded as more join the party. Stories like these can unfold in a predictable and repeatable fashion, yet they have a resonant power that club members embrace. Are any of these scripts getting played out at your club?
The Tribe
A group with deep interpersonal connections built through shared experiences, rituals and traditions. A core group of avid golfers might be a prime example.
The Fort
An exclusive place for insiders to be safe and feel protected. Think card room or maybe the men’s grill.
The Sewing Circle
A gathering at which people with common interests share experiences, provide support and socialize. A club-within-a-club is a kind of sewing circle, with wines, books or guest lectures providing the common thread.
The Patio
This would be a semiprivate place that facilitates lingering and meaningful connections. Outdoor, seasonal dining can and does reliably do this, building within the club a spirit of relaxed informality.
The Bar
A public space that is a reliable source of fun and lively connections. These are great places to socialize new members into the brand community. People want to go where everybody knows their name.
The Tour Group
A way to participate in new experiences while staying inside a comfort zone. Club members like to explore in tight knit groups that easily move beyond the physical boundaries of the club, engaging in things like community service or otherwise expanding their horizons (e.g., a golf trip to Scotland).
The Performance Space
Any place where club members can be sure of finding an appreciative audience for their talents.
The Summer Camp
A periodic experience that reaffirms connections. Youth-room hi-jinx, after-school activities and summer clinics all unite the younger generations together around the club banner, but adults build similar tight bonds with things like inter-club competitions.
Consider “producing” these or other community scripts and then distributing them on social media channels like YouTube, Instagram or Twitter. It will expand brand awareness and build brand equity.
Club Trends Spring 2019