October 16, 2000, Dana Point, CA: A diverse group of CEOs and top marketers from leading packaged goods and technology companies outlined their marketing strategies for successful brand building in the interactive age at ANA’s 2000 Annual Conference, held at the The Ritz-Carlton, Laguna Niguel on October 13-17.

An important insight that was reinforced by many of the speakers: only those brands that forge strong and individual relationships with consumers will prosper. Building trust and respecting consumers’ privacy are also critical to success in the new consumer-centric era.

John J. Sarsen, Jr., ANA president and CEO, kicked off the conference with an overview of the rapidly shifting marketing environment. He noted that investors and the media, which had focused considerable attention on dot-coms a year ago, were rediscovering the value of trusted brands, seasoned management and real profits. Traditional companies with the products, services and brands that consumers want and trust have the right foundation to be tremendously successful in the years ahead, he observed.

Lou Dobbs, founder and chairman of SPACE.com and former president of CNNfn, served as emcee for the three-day event that attracted over 480 ANA members and guests. A few of the key highlights from the conference follow.

Consumer Is Boss at P&G

In his first major address since becoming president and chief executive of The Procter & Gamble Company, A.G. Lafley emphasized his company’s evolving approach to branding in which "the consumer is boss." He observed that the advertising industry is in the midst of revolutionary change as consumers demand more performance, quality, value and control. Mass marketing is evolving to brand building based on meaningful and individual relationships with consumers — relationships that go beyond product benefits to offer solutions to real and important consumer needs. Lafley noted that successful brands will be transformed into trusted friends and product usage will be broadened into experiences.

Among the examples he gave of how P&G is transforming transactions into relationships: the Pampers.com Web site that provides parents with advice through an interactive Q&A feature and reflect.com, P&G’s online beauty products brand, that offers customized cosmetics and beauty products for women on the Internet.

Privacy a Major Concern

Privacy is the number one concern for consumers shopping online according to Ted Bremer, a director at MSN, Microsoft Corporation. Bremer asserted that nearly half of consumers give false data about themselves online because they are fearful of misuse of information about them. He stressed the need for companies to clearly state their privacy policies and provide consumers with notice, choice, access and quality — as well as a way to edit and correct information about themselves.

Nestlé’s Three-Pronged Approach

"At Nestlé, we’ve seen the future and have made a conscious decision to make e-business the way we do business," said Joe M. Weller, chairman and CEO of Nestle USA, Inc. Following a strategy called 3-net, Nestlé is utilizing the Internet, intranets and extranets to forge relationships with consumers, distributors and suppliers and employees. He asserted, "I’ve been in business for 33 years and I’ve never seen as much excitement, energy, enthusiasm and new opportunities as I do today."

Diverse Media Challenges

Christopher Rohrs, president of the Television Bureau of Advertising (TVB) added his views on the impact of new technologies (broadband and wireless) and the growing use of DBS, and the unique role that spot TV can provide in reaching multicultural audiences.

Multicultural Marketing in the New E-conomy

Another key to success in the new online world is how well marketers can connect to multicultural consumers. Clarence O. Smith, president of Essence Communications, observed that multicultural consumers have tremendous purchasing power — $1.2 trillion, often undervalued by marketers.

He provided statistics that indicate that inner city markets, due to population density, are worth more than many suburbs on a square mile basis. Further, he noted that the "digital divide" has all but disappeared, indicating that the Internet is a very viable part of an integrated marketing strategy to reach multicultural audiences.

The U.S. Postal Service Goes Online

Stephen Kearney, senior vice president of corporate and business development for the U.S. Postal Service, revealed how the Postal Service is addressing the erosion of traditional mail by email and faxes, which threaten the $67 billion in annual revenue generated by first class mail. The Postal Service’s response: a series of e-products including the very successful launch of e-bill payments in April 2000, which included marketing through direct mail, the Web site, TV and radio. Kearney noted, "We are trusted, secure and we guarantee privacy. With that foundation, we believe we can open e-bill payment and popularize it." He added that privatization of the Postal Service is likely to happen in 5 to 7 years.

Masterbranding of 3Com

Bruce Claflin, president and CEO of 3Com Corporation, reviewed the transformation of 3Com Corporation from a technology-driven to a brand-centric company that markets great technology. He noted that a few years ago, growth was slowing at 3Com. The problem: an overly broad portfolio of product offerings and too great a dependence on technology to provide a competitive edge in the customers’ minds.

3Com’s new core strategy emphasizes 3Com as the premier networking brand by targeting specific, rapidly growing market sectors. It focuses on creating a company-wide "master brand" to leverage all employees, customers, strategic partners and investors around a common brand-driven goal.

The master brand led to a new value proposition — 3Com’s unique ability to simplify complex networking technology. The proposition was expressed in a new logo, a new graphic system, internal communication and advertising. "Our radical simplicity message is conveyed with a new tag line: Simple Sets You Free," noted Claflin. "When you make a transformational turn the way we have, you have to be willing to go all the way."

360 Degree Marketing at MVP.com

Motivated by the vision to be the premier online source for outdoor and sporting goods merchandise, MVP.com, created by John Elway, Wayne Gretsky and Michael Jordan, is well on the way to success. John Costello, MVP.com’s president and CEO, discussed the importance of building a strong and distinctive brand identity. Noting that the competition can steal your product benefits, but they can’t steal your identity, Costello underscored the importance of MVP’s "360 degree marketing" strategy: brand leadership, athlete advisors, content, traditional media, online media and one-on-one marketing.

Costello’s lessons learned: think fast, build a strong and distinctive brand, stay connected to your customers at all times, be flexible enough to take risks and be prepared to turn on a dime. And all the while, Costello emphasizes, be frugal and keep focused on ROI and the bottom line.

This glimpse into the powerful and diverse insights presented to attendees at ANA’s Annual Conference this year is a small sample of the wide range of viewpoints exchanged, both in formal and informal settings.