In the world of branding consumers pay more for brands that offer a perceived value over a commodity. As retailers are struggling in today's economy does it make sense to price match? One thinks that it keeps the consumer from leaving the store or if they do it gets them to shop online and come back and purchase their product. Companies like Walmart and BestBuy are offering price matching. Does price matching help the long term value of your brand? Not in my opinion.

I went into Discount Tire (the specialist) today looking for two new tires for my SUV. The prices of tires for an SUV are making me rethink my choice of transportation. The salesmen looked at my car and determined that I needed not two but four new tires. OK. He then added up the price with the instillation and care package and the total was $740. (If this is a discount I would hate to see the "real" price.) Having some experience in sales I said, "That's too much" (and didn't allow myself to say another word).

The salesman then went on to say that they "Price Match" and would beat any competitors price, including Walmart and Costco. I quickly thought, "Why don't they just offer me the best price now, do I really have to drive around and compare prices?"

Will some consumers' price match and save more money? Yes. Does it create customers who are never loyal to your brand and force you to drop your price to move merchandise? Yes. If you are a company that competes on price, offer your best price first and never negotiate or discount. A winning formula for creating a strong brand in the mind of the consumer.

I ended up going to Costco and the tires were $100 cheaper, so much for price matching.

With the release of the Apple TV the world is a abuzz again with Steve Jobs. The device is interesting, compelling, unique, and a copycat. Wait, a copycat....copy of what?

The Roku. A machine that offers all of the same features of the Apple TV and they have been out for quite some time. Why have most people never heard of the Roku? I don't know...bad name, lack of a category, no simple message...to name a few. They were never able to penetrate the mind.

Most people love Steve Jobs. He is a brilliant marketer and a cult hero. While Steve may be a smart marketing strategist he is a MASTER at one key marketing law...The Law of the Mind.

First in the marketplace means nothing unless you are able to be the first in the mind. Steve Jobs is amazing because he knows that by getting in the mind first, you win. What and who is Roku? Unfortunately for them a brand that will never be able to penetrate the mind in the mass market. Steve Jobs and Apple are never first to the market but often they are first in the mind. Many will argue that it is because Apple products are simply better. Tell that to Roku who built an amazing product. God Bless America.

This is the opposite of what you may hear in the media and business world. People will tell you that products converge over time when in fact they do the opposite. Categories over time diverge. This picture below is what convergence looks like in the average mind (mine of course)....

iWhat? is exactly what I was thinking. Years ago when HP came out with a simple, inexpensive, all in one revolutionary home business machine the world was captivated. And I was too and purchased one of the machines....

The HP machine came out and was going to prove that products do in fact converge. Was I happy with my purchase? At first, yes. After about the first week I went to use the fax machine and it didn't work. Ok. Next I wanted to scan a 5 page document. I then realized I needed to lift the cover and scan each page one at a time. My disappointment was growing. I then started to use the printer and realized that most of the pages I was printing didn't need to be in color. And of coarse when the cartridges’ are running low it wouldn't let you print the page anyway so instead of printing a slightly lighter page I had to go and buy more ink at a price tag of around $50.

After about 2 years of constant frustration (I can't believe I made it that long) I stopped using the machine. I never even used the fax portion since it never worked. Now, instead of using the generalist I use the specialist.

I use a stand alone laser printer (for printing of course)....

A stand alone fax machine....

And a seperate scanner......

Money, time, and energy can be saved if you believe in the law of divergence. It could have saved me years ago and yes, I should have known better. Now the law of divergence is well implanted in my memory.

Tinkering- To make unskilled or experimental efforts at repair; fiddle. That is what came to my mind as I drove by the new signage at my local Village Inn. The old font was unique, legible, and somewhat iconic. I am by nature a positive person so I will refrain from my opinion on the new logo. Village Inn has been around since 1958, started in my hometown of Denver (great city).

Originally founded as a pancake house they quickly expanded the menu and the number of restaurants when they become a publically-traded company in 1982 and by the late 1980's the "Pancake House" was dropped. About 15 years later the company filed for bankruptcy under Chapter 11. A few quick lessons that can be learned from Village Inn...

1) Never lose focus

2) It may take a while to see your successful or unsuccessful marketing strategy

3) Tinkering is for the unskilled

4) Beware of successful companies that file an IPO

5) Leave the initials (vi) to IBM, ABC, NBC, CBS, and GE.

6) If you want the best pancakes they are no longer at VI, they can only be found at The Original Pancake House.

There is trouble at KFC as fanchise owners are suing the parent company, Yum Brands over the strategy of the brand to which I say..."It's about time!"

As sales are up in the chicken category sales are down at KFC. Why? KFC, I mean Kentucky Fried Chicken is a great brand. Conventional wisdom says sales are down for the following reasons......

1) The country is becoming healthier

2) Fried has a negative connotation

3) The grilled chicken isn't very good

4) The strategy was poorly executed

There is a myth in America that the consumer is becoming healthier, non-sense. More and more Americans are obese along with their children. During the past 20 years there has been a dramatic increase in obesity in the United States. In 2009, only Colorado and the District of Columbia had a prevalence of obesity less than 20%. Thirty-three states had a prevalence equal to or greater than 25%; nine of these states (Alabama, Arkansas, Kentucky, Louisiana, Mississippi, Missouri, Oklahoma, Tennessee, and West Virginia) had a prevalence of obesity equal to or greater than 30%.

The animated map below shows the United States obesity prevalence from 1985 through 2009.

Secondly, people love the word "fried" Tell a friend you are going to fry chicken wings or onion rings and before you can finish your sentence they are over at your house salivating. While fried may have a negative connotation for the health concise consumer, how many times would the health conscious consumer eat at KFC in the first place, not often I bet.

The grilled chicken is pretty good and many have stated that they love it. The KFC UNTHINK strategy generated tons of press, had a huge advertising budget, and numerous positive reviews so it can't be the execution. Therefore is MUST be the strategy and the franchise owners have a right to be upset as they want to see a focused KFC. How can KFC stay focused...

1) Use the brand's full and proper name "Kentucky Fried Chicken"

2) Cut back all advertising for grilled chicken and focus on fried.

3) Eliminate the "Double Down". While having unhealthy fried chicken is one thing advertising a the Double Down which weighs in at 540 calories, 32 grams of fat and a whopping 1,380 milligrams of sodium. And the double down generated tons of bad PR for KFC.

4) Advertise the Family plan meals- The great visual for KFC is the "bucket" and it should be used in all forms of advertising.

5) Get rid of the meaningless slogan of "sogood" and bring back "It's finger lickin' good" This was a great slogan that helped put KFC on the map and reinforced the "fried chicken" category

6) Extend further into the "box" meals for lunches but keep them simple with less variety.

7) With advancements in Computer-generated imagery bring back the Colonel in the advertising.

Before buying a franchise make sure the brand is focued and has plans to continue in the same way otherwise you may be in a legal fight to keep the brand on the right track.

If Chick-fil-A is a company that is doing a good job with line extensions Wendy's is doing the complete opposite. Recently they have been advertising their new chicken varieties and now we have their new line of salads....try a real salad today! To which I ask....where's the beef? Loved these ads and so did most of America.

You know when it's real misses the mark as an advertising slogan. The salads may be great but the core consumer is interested in a burger.

Here is a list of Wendy's slogan's used in the U.S. over the years...

* 1969 – 1978: Quality Is Our Recipe (this slogan is still shown on the Wendy's logo today.)
* 1978 – 1979: Juicy hamburgers
* 1979 – 1980: Hot-N-Juicy
* 1980 – 1981: Wendy's Has the Taste You Crave
* 1981 – 1982: There Isn't No Reason to Go Anyplace Else
* 1982 – 1985: You're Wendy's Kind of People
* 1983 – 1984: Parts are parts
* 1984 – 1986: Where's the beef
* 1985 – 1988: Choose Fresh, choose Wendy's
* 1987 – 1993: Give a little nibble
* 1988 – 1992: The best burgers in the business.
* 1989 – 1998: The best burgers and a whole lot more
* 1997 – Present: You can eat great, even late
* 2001 – 2005: It's hamburger bliss.
* 2002 – 2005: It's better here
* 2003 – 2007: It's Always Great, Even Late.
* 2005 – 2007: Do what tastes right.
* 2005 – Present: It's good to be square.
* January 2007 – October 2007: That's right.
* January 2007 – October 2007: Uh Huh.
* 2007 – 2008: Hot Juicy Burgers
* January 2008 – October 2009: It's waaay better than fast food... It's Wendy's.
* January 2008 – October 2009: It's waaaaaaaaaay delicious. It's Wendy's.
* October 2009 – Present: You know when it's real.

Slogans that use the words "right" or "better" or "great" hardly ever work. Things are changing in the burger category in a big way. With the introduction of the upscale burger at chains like Five Guys, In-N-Out Burger, Smashburger, Fatburger, Good Times, and on and on. Competition is killer in the burger category which is why I suggest a new slogan for Wendy's. Originally a good idea would have been something along the lines of "not cutting any corners" and the visual of the square burger would have been a good idea but with the new competition I think they need a new slogan framing this upscale burger trend. My advice to Wendy's....

1) Advertise your burger which is why people visit Wendy's in the first place.

2) Reinforce the position of being the place for the "old fashioned" burger

3) As KFC did with Colonel Sanders bring back Dave in a classic character. We all love Dave

4) Use the slogan "Old Fashioned Burgers, Old Fashioned Prices"

Wendy's needs to take a few lessons from Chick-fil-A if they want to frame their perception in the mind of the consumer. Best of luck!