Key differences between product and service brands / Nine critical trends in benefits / Food trends for 2006
KEY DIFFERENCES
BETWEEN PRODUCT AND SERVICE BRANDS
Companies that sell consumer products know the
power of a strong brand: brands drive perception, create awareness, and
reduce risk to the consumer. Though service companies have been slower
to adopt branding, they could reap many of the same rewards. Below are some
of the key differences:
1. Target your market carefully. Product companies often reap rewards from sweeping, mass-market advertising campaigns. The market for service companies is substantially narrower, and branding efforts should reflect that. Concentrate on consistent articulation of your value proposition throughout a campaign that “touches” your prospects regularly with highly targeted messages.
2. Strive for relevance over differentiation. It’s much easier for a product to be different from its competition than for a service to do the same. At their roots, competing services tend to be very similar to one another. Without branding, services become commoditized, and consumers begin to make choices based on price alone. Instead of trying to make your service seem completely unique, show prospects how it is relevant to them -- the ways in which the service fits into their world and meets their needs.
3. Focus on revenue instead of market share. Product companies strive to be number one or two in terms of market position, but this is far less necessary for a service company. Instead, focus on driving revenue and increasing the bottom line.
4. Focus internally. Because service firms don’t offer tangible products, the consistency and positive experiences that are so important to branding must come from people. Spend time during your branding campaign to address the attitudes of people in the company. It’s vital to your branding efforts that these “ambassadors” are projecting the right attitude and saying the right things.
Source: Wellesley Hills Group
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NINE
CRITICAL TRENDS IN BENEFITS
According to a study by Hewitt Associates, the amount paid by employers in
2006 for employee health insurance will be nearly twice that paid six years
ago. With expenses on the rise, look for cost-cutting to be at the top of
the benefits trend list. In order of importance, the following are nine trends
to watch for the coming year.
1. Containing costs: 2006 insurance costs, averaging $8046 per worker, reflect an increase of 9.9 percent from 2005.
2. An aging workforce: Employers may begin offering phased retirement plans which allow older employees to keep their benefits in return for remaining on the job.
3. Diminished Social Security support: With more seniors eligible to receive benefits than there are younger workers to pay for them, some retirees may come up short.
4. Medicare drug benefits: Employers may shift away from employer-sponsored prescription plans for older employees and allow Medicare to pick up the slack.
5. Legal challenges: Employees have begun suing benefit plan fiduciaries in the past two years. If these class-action lawsuits are successful, legal action will be a major issue for HR professionals.
6. Work/life balance: Employees will base much of their decision on where to work based upon schedule and workplace flexibility.
7. Tying compensation to business measures: Look for pay and benefits to become determined more by performance in terms of business results.
8. Increased focus on avoiding identity theft: It will become more important than ever for human resources to safeguard personal information like social security numbers.
9. Voluntary or customized benefits: Companies may begin to more actively take their employees' preferences into consideration, and customize benefits accordingly.
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FOOD
TRENDS FOR 2006
The fact that Atkins Nutritionals filed for bankruptcy in 2005 suggests that
the low-carb craze is dead. Here are some new trends that might fill the
void for the coming year:
1. More fiber and whole grains
General Mills recently announced that its bakery division would start
using white whole wheat flour for some of its products, including cinnamon
rolls, croissants, and puff pastries. Kraft’s Nabisco snacks
division has already launched 100% whole grain versions of Chips Ahoy!,
Fig Newtons, and other popular products. Other manufacturers are increasingly
incorporating whole grains into their products.
2. Disease prevention
Look for “healthy” foods to become more condition-specific.
Some foods now claim to lower cholesterol, control blood pressure, or
address the concerns of osteoporosis or diabetes. Dannon yogurts now
offer the Activia probiotic line, which claims to help regulate the digestive
system.
3. Senior shoppers
With the baby boomers starting to enter their sixties, some food manufacturers
are anticipating and addressing their needs as seniors. For example,
Proctor & Gamble now sells a Folgers AromaSeal coffee canister with an easy-grip molded
handle which is endorsed by the American Arthritis Foundation.
4. More
organic foods
The $20 billion organic foods market will only increase in size in
the coming year. Specialists like Whole Foods will soon be facing
tough competition from Wal-Mart, which is looking to expand its organic
offerings. The retailer already sells some organic products, like
brown flour, packaged salad, carrots, tomatoes, and milk. Wal-Mart
has since announced its intention to become a premier retailer of
natural foods.
Source: CNN
