If your brand doesn’t have a distinct personality then it becomes a commodity and if it does then heed the warning about “Telling the world about it”.
It doesn’t matter what your company really stands for until whatever it is, is firmly lodged in the minds of your potential or actual customers.
You can have the most fantastic products, processes and services imaginable but if the customer thinks you are rubbish - then you are rubbish. The customer’s perception is the only reality.
And it takes a long time, and sometimes a lot of money, to change perceptions.
Even today as a result of just 30 minutes of a famous World In Action television programme in the early 1980s a lot of potential house buyers have deep reservations about buying a timber frame house. The words timber frame and Barratt reverberate around the focus groups.
As an aside, don’t you think it sad that such an important industry as ours has apparently failed to create enough good news over the last 15 years or so to replace these negative perceptions?
What constitutes a distinct personality for a brand?
Moving on from Tom Peters’ simple starting point a review of the leading textbooks makes it clear that the distinct personality of a brand comes from its ability to provide recognisable - and relevant - added values to the customer.
There are many examples given from leading brands like British Airways, Nordstrom, Virgin etc but no textbook to my knowledge has ever attempted to describe branding in housebuilding - not even in the USA. Presumably there’s nothing much to write about although it could have been so different.
So let’s put the textbooks aside and start working on our own theory and practise of branding in housebuilding.
The unique challenge of adding value in housebuilding
The term “adding value” is used frequently in business. However l have rarely seen a simple way to describe value from the customer’s point of view. The examples above are the best I have ever found. I use them to help clients think about their businesses like customers.
Adding value in housebuilding creates some interesting challenges. The buying process is long, the ownership is long, the basic raw material (land) is very scarce, the production labour is subcontracted, the factories (developments) uproot every two years or so having built a handful of products and even the selling is often in others’ hands.
In addition housebuilders deliver both products and services.
Some of these services are part of the selling effort, for example:
- part exchange on the new home;
- mortgage help;
- advice on the legal process;
- optional extras (partly a service and a product); and
- interior design packages (ditto).
And some of these services are part of the housebuilder’s obligation to provide after sales care and remedial work.
On top of all of this is the land - the location. The biggest value adder of all.
Pose the following question: Why the hell should anybody buy from us?
If the sole answer is “Great locations” then on the basis that your competitors could have also purchased these locations you do not have a unique value proposition - you are not a brand.
If the answer is ‘our quality’ then ask yourself how you deliver this quality message to your customers. If they don’t see it like you see it then you have a perception/reality gap.
There will hopefully be many other reasons why anybody should buy from you. Consider each in turn and make sure that:
- it’s true;
- it is being delivered;
- your customers understand it in the same way that you do; and
- it actually gives more value to the customer than it costs you to deliver it.
Then challenge yourself to make it unique.
I have just read an article about a manufacturer who has managed to add value to salt and charge a premium for it. If salt can have distinct brand values: then as sure as hell housebuilders can.
How it could have been
Housebuilding might not be a sexy industry when compared to cars, fashion and electronics and in truth any industry which generates so little excitement in 15 years is not going to be seen as textbook material. Marketing and branding in housebuilding had their heyday in the early 1980s. Barratt Homes changed the face of the industry, changed the public’s perceptions about new homes and significantly added value. If my memory serves me well Barratt had front-page status in Marketing Week and leading articles about bringing marketing to housebuilding. It is unfortunate that the timber-frame scare and a market downturn put a stop to what was happening then. One can only speculate what housebuilding and public perception would be like now if Barratt had been able to continue along its path unhindered pulling the rest of the volume housebuilders along with it.What is value?
In the purchase of a product value viewed from the perspective of the customer can be described as follows: Value = Expected benefit/acquisition cost. The expected benefit from a product can be rational and functional - for example how the product will perform. However expected benefit can also be based on intangible things such as what the brand name or logo means to you. The acquisition cost is more than just the sticker price. It takes into account all the costs for example price, time, travel costs and training etc. Take the equation as a whole and it will neatly explain why your child is happy to spend £100 on a pair of Nike trainers while you might prefer something a little more modest, or why you might feel better about driving a Mercedes as opposed to a Ford when both will get you from A to B. In the purchase of a service a similar equation can be used to describe value - Value = Results produced for the customer + process quality/acquisition costs. The same basic comments apply as in the previous example. Apply this equation to telephone insurance services like Direct Line and it immediately clarifies why this has been such a growth market. The customer gets the insurance required, the process to get it is very easy and the only other costs are the phone call costs (even these are paid for by some companies via 0800 numbers). Apply this also to after sales service provided under warranty where the price to the customer of the actual remedial work is zero. The result might be that the product problem is corrected. However if the process of reporting it was fraught, the time it took to do it was over long. If to acquire the service the customer had to make many calls and take several days off work then it is easy to see how value can be destroyed and with it the brand. What is important to remember is that the perception of value can be different for different types of customer.Source
Building Homes
Postscript
Malcolm Pitcher is a director of PCL, a consultancy specialising in marketing strategy, brand strategy, culture change, change management, marketing research and customer satisfaction monitoring. Before starting PCL, he was marketing director for Wimpey Homes and held senior posts with Volkswagen and Honda. PCL can be contacted on 01666-510813, e-mail: info@pitcherco.com