| "A truly great business must have an enduring 'moat' | | | | there is no doubt who created the spot or the |
| that protects excellent returns on invested capital." - | | | | slogan because the advertiser's name is part of the |
| Warren Buffet's letter to shareholders in the | | | | "joke." That's a vitally important accomplishment and |
| Berkshire Hathaway 2007 Annual report. | | | | it's both difficult and rare to achieve. For a very |
| For years, Warren Buffet has used the metaphor of | | | | funny online ad spot from this campaign, click here: |
| a "moat around a castle" to describe a company with | | | | Note that this little bit of viral marketing is |
| effective and sustainable strategic differentiation. | | | | approaching 500,000 hits. |
| Such firms enjoy larger profits than their rivals and | | | | In the La Quinta ads, no one ever says, "Wake up |
| are able to fend off competitors and grow market | | | | on the bright side." Instead, it's simply superimposed |
| share. | | | | on the screen at the end of the spot - the typical |
| But how do you differentiate effectively? Having | | | | kind of "late ID" tactic that agencies love but plainly |
| worked with many advertising agencies over the | | | | doesn't work. Finally, their attempt at creating a |
| years and observed the work of countless others, I | | | | verbal mnemonic is the unique-sounding "La Quinta" |
| can tell you that many marketing communications | | | | dubbed into each spot at the end. But, unlike the HIE |
| professionals can't answer this question. An | | | | expression, it's not funny, it can't be adapted into |
| overwhelming majority of the advertising I see is | | | | jokes and it will never become an idiomatic |
| designed to be funny, touching, surprising, shocking | | | | expression. You can see the "One Night Stand" spot I |
| and sometimes artistic, but little of it is either | | | | described here: |
| memorable or effective at differentiation. | | | | Second, Holiday Inn Express hits a bulls' eye in its |
| Let's explore two different ad campaigns, one of | | | | attempt to build an emotional connection with its |
| which differentiates effectively and one of which | | | | audience, while La Quinta misses the mark. In every |
| does not. Holiday Inn Express and LaQuinta both | | | | HIE spot, the central character - who ends up saying, |
| compete in what is called the "limited service" hotel | | | | "...but I did stay in a Holiday Inn Express last night," is |
| category. For a relatively low rate, you get a great | | | | appealing, is doing something surprising and delightful |
| location, a clean, comfortable room, a few essential | | | | and is clearly demonstrating some unusual and |
| services, the ability to participate in a points program | | | | unexpected form of "smartness" that makes you |
| and a continental breakfast. | | | | smile and chuckle. There is also a disarming, |
| Holiday Inn Express (HIE), which is a division of the | | | | self-effacing quality to the creative that is very |
| Intercontinental Hotels Group, launched a rebranding | | | | inviting and charming. All of this positive emotion is |
| campaign a few years ago in which they position | | | | wrapped in the HIE brand, because it is both the |
| their properties as "smart" choices for travelers. In a | | | | source of the good feelings as well as the heart of |
| very memorable series of commercials, actors are | | | | the slogan that serves as the punch line. |
| portrayed doing high-risk, expert tasks like advanced | | | | The La Quinta spots aren't awful - the brand did |
| surgery, calling out survival instructions to a terrified | | | | need refreshing and they do make the case that the |
| hiker confronted by a grizzly bear, etc. In each | | | | properties offer good value - but the creative merely |
| vignette, the actor displaying the expertise is asked | | | | entertains, and it doesn't do that very effectively. I |
| about his credentials by another character, e.g. "Are | | | | don't know about you, but I do not need anyone |
| you a surgeon?" or "Are you a park ranger?" etc., | | | | planting images in my mind of a middle-aged man |
| and the lead character always replies, "No, but I did | | | | having a one-night stand. |
| stay at a Holiday Inn Express last night." | | | | Continuing the theme of poor taste, in another ad, |
| This punch line has worked its way into the folk | | | | they superimpose the words, "You lost your |
| lexicon of the United States. In the 2008 presidential | | | | company's biggest account," before showing silver |
| campaign, Mike Huckabee famously joked, "I may not | | | | lining, "Your boss finally remembers your name." |
| be the expert that some people are on foreign | | | | Apparently, this is supposed to reinforce their slogan |
| policy, but I did stay in a Holiday Inn Express last | | | | that they help you "Wake up on the bright side," but |
| night." On a flight not long ago, I heard two flight | | | | the thought of losing a big account is such an |
| attendants discussing the active ingredient in Tylenol | | | | enormous negative that it's really not something they |
| and when I explained it contained ibuprofen, one of | | | | should associate with their brand. |
| them asked me if I was a doctor. Guess how I | | | | Ultimately, the Holiday Inn Express ads successfully |
| replied. | | | | create positive emotion around the brand, they are |
| The Holiday Inn Express television commercials are | | | | highly memorable and the sponsor is firmly and clearly |
| clever, but more importantly, they make you feel | | | | tied to the message. The fact that their slogan is |
| good about the brand. Obviously, no one actually | | | | part of the nation's lexicon highlights the brilliance of |
| becomes "smarter" by staying in a Holiday Inn | | | | the campaign. They make you feel good about |
| Express, but they effectively make the point that it | | | | staying at one of their properties because they are a |
| is a smart decision to be their customer. They | | | | brand you like to include in your life. The La Quinta |
| demonstrate that they "get it": every business | | | | ads are yet another attempt to make funny |
| person wants to be perceived as smart. This is good | | | | advertising that doesn't send an effective or |
| but what really distinguishes the campaign is how it | | | | cohesive message and that doesn't include an |
| makes customers feel about the Holiday Inn | | | | effective emotional hook. It's a more-or-less |
| franchise: the advertising makes us want to associate | | | | textbook example of an ad agency demonstrating |
| with the brand because of its plucky humor, its | | | | that it can be clever without understanding how to |
| obvious understanding of our needs and the sense | | | | make advertising that actually sells something. |
| that it's fun and friendly. | | | | As you may be aware, 2008 was horrific for the |
| La Quinta has more recently rebranded and they, | | | | hospitality industry. The skyrocketing fuel prices |
| too, are running a series of television commercials. In | | | | followed by the current recession crushed many |
| one spot, a middle-aged man in a business suit is | | | | players in the travel sector. Against this backdrop, |
| talking to the bed as though he and the mattress | | | | Holiday Inn Express grew their revenue per available |
| just shared a "one night stand." At the end of the | | | | room. Since La Quinta is a privately-held company, I |
| spot, he turns to the camera and says, "La Quinta" | | | | don't have access to their numbers, but I'd be very |
| with his voice replaced by that of a native Spanish | | | | surprised if they performed as well. Until they |
| speaker. All their current ads end with this verbal | | | | develop a better approach to differentiating their |
| mnemonic (one spot uses a rabbit with the Latin | | | | brand, I believe they will be stuck with mediocre |
| voice). | | | | performance. |
| Holiday Inn Express uses the slogan, "Stay Smart." La | | | | If you want to learn how to differentiate your brand |
| Quinta's slogan is, "Wake Up on the Bright Side." The | | | | effectively, I encourage you to read our latest white |
| two campaigns seem to have similar objectives: | | | | paper: The Ultimate Guide to Brand Positioning and |
| appeal to the business traveler looking for a good | | | | Differentiation. In this document, you'll learn about |
| value in no-frills lodging. But the Holiday Inn Express | | | | "laddering," a proven approach to constructing |
| campaign is vastly superior the La Quinta campaign. | | | | advertising messages that create the kind of |
| Here's why. | | | | emotional hook in the Holiday Inn Express campaign. |
| First, the HIE commercials successfully create a | | | | We explain how several great brands, like Jif and |
| slogan that gets repeated and has become part of | | | | Duracell have built huge market and margin |
| the country's lexicon. Countless people have said, "No, | | | | advantages through effective positioning. It's an |
| but I did stay at a Holiday Inn Express last night," | | | | indispensable guide to any one trying to build a |
| because it's a clever, funny phrase. This also means | | | | competitive advantage. |
| the sponsor of the commercials will be remembered: | | | | |