Luxury Real Estate Marketing: Guess Who's Coming To Santa Barbara?

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Luxury Real Estate Marketing: Apple, What's Your Secret? Part 2

June 22, 2011

Courtesy of Apple

We have identified the phenomenon of “complacency” as is one of the potential vulnerabilities of market leaders who have outdistanced their closest competitors by a considerable margin. There is a tendency to coast on their momentum instead of continuously reinvest in staying sharp. They tend to “rest on their laurels”, relying on the recognition of their previous achievements to stay on top. As a luxury real estate marketing professional, if you want to challenge the market leader this is an important symptom of vulnerability to be able to recognize and also be able to exploit.

In Steven Covey’s mega-bestselling book the 7 Habits of Highly Effective People he writes about the flip side of complacency which is working too hard, for fear of losing ground to the competition, and not taking the time for self renewal or “sharpening the saw”. In our strategic branding consulting practice and also as syndicated bloggers we are continuously interviewing top producing agents. We notice that the market leaders who are workaholics are equally vulnerable to being challenged as the complacent ones.

When a new idea of doing business is introduced to the complacent market leader, the response is often “if it isn’t broken don’t fix it”? When a new idea in proposed to a workaholic it is often rejected because they do not have the time to take a break from sawing in order to sharpen the saw. In both cases there is a paucity of innovation, ingenuity and imagination at the top which makes them vulnerable to challengers who are eager and willing to “think outside the box.”

In our previous post we highlighted the brilliant success of Apple’s retail stores. Clearly, Apple is an enlightened market leader that does not rest on its laurels. It continuously stays sharply focused and is an uninterrupted font of innovation. Within a year of the debut of the iPad, iPad 2 trumped its predecessor and preempted many of its would- be competitors by including superior features like two cameras and a skinnier profile.

The genius who is mainly credited for the success of the Apple stores is Ron Johnson, the Senior VP of Retail Operations, who recently was tapped for the CEO position of J.C Penny to restore its prominence as a market leader. In an interview, Johnson said, “I’ve always dreamed of leading a major retail company as CEO. I am thrilled to have the opportunity to help J.C. Penney re-imagine what I believe to be the single greatest opportunity in American retailing today, the Department Store.”

A true market leader is willing to continuously re-invent and re-imagine its business model. Essentially, a great market leader never stops thinking like a challenger.

If you are a market leader and you find yourself getting complacent or becoming a workaholic these are warning signals that your health and the health of your luxury real estate marketing practice is in jeopardy. You are definitely vulnerable to being caught off-guard by a challenger who is open to new ideas.

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Luxury Real Estate Marketing: Apple, What's Your Secret?

June 21, 2011

Courtesy of Apple

Customer or client loyalty is one of the aspects of marketing luxury real estate that can be measured with reasonable accuracy. We recently heard a story about an agent who thought she had the loyalty of a particular client. Then, after spending a considerable amount of time abroad, the client came back into town for the weekend, noticed that a home that he and his wife admired for years came on the market. They bought it on the spot from the listing agent with whom they also listed their current home for sale. The terms of this multi-million dollar purchase were all cash with a very short closing. And, the listing had an equally sizable price tag. Ouch!

As a luxury real estate marketing professional, what does it take to keep your clients loyal? It may be wise to study the secrets of Apple, the world most valuable technology company. Oddly, the Wall Street Journal uncovered the confidential employee manual for running their retail stores and wrote an “exposé” on the subject. The funny thing about the manual is that there were actually no real secrets at all. Anyone can easily observe their “secrets” by visiting the store and experiencing their superb customer service, first hand.

Do the following aspects of customer service sound like secrets to you? Or is it simply attention to every detail of the customer experience

Passionate employees who love the products
Highly trained staff that acquires thorough product knowledge
Customer respect--no ridicule of those who do not understand something
Buffering the frustration of the tech-challenged with excellent listing skills
Solve customer problems vs. push sales
Up-selling subscriptions and tech support services
Employee tardiness is unacceptable
No sales quotas + no commissions = no pressure
In-store tech support

According to the Wall Street Journal, sales per square foot in Apple’s 326 retail stores range between $4-6,000. To put this into perspective, Tiffany & Company sells $3000/sq. ft and Best Buy sells $880/sq. ft. Best Buy’s, who sells multiple product lines, has a profit margin around 1% before taxes. Apple’s profit margin, selling only its own products, is 26%.

Having an Apple Store nearby where you can have all of your questions answered by a cheerful staff vs. overseas tech support is quite conducive to customer loyalty. Being able to upload, store and sync all of your photos, documents, music and videos via iCloud, with all of your Apple computers and mobile devises “seals the deal!"

What are your “secrets” to maintain client loyalty in your luxury real estate marketing practice? Are you paying close attention to every detail of your client experience like Apple does in their stores?

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Luxury Real Estate Marketing: What Is Your Brand Worth?

June 20, 2011

Choosing the right brand name is extremely important for luxury real estate marketing professionals. Some of the best brand names deliver an emotional impact that makes it easy to remember and also propels sales. Striking just the right chord with your target market is the key. What emotions are summoned with the name Shark Tank?

Have you ever watched Shark Tank, the TV reality show on ABC? It stars Barbara Corcoran, the luxury real estate marketing professional who sold her highly successful brokerage firm in New York several years ago, and other successful venture capital superstars including billionaire Mark Cuban, the owner of the Dallas Mavericks. The premise of the show is that entrepreneurs seeking venture capital give their pitch to a panel of investors who fight, like sharks, over who will offer the best deal.

On a recent episode, a couple of guys pitched the idea of investing $50,000 in their clothing business in exchange for a 25% interest in the company which is called Hill Billy™. Comedian Jeff Foxworthy (one of the sharks) immediately recognized the value of the Hill Billy brand name because he has made a fortune with his “red neck” humor and Blue Color TV.

The entrepreneurs, who trademarked the name, proved that there is a market for Hill Billy™ brand clothes by selling them at country music concerts and often outselling the performers T-shirts and concert paraphernalia. But, none of the sharks took the bait. Instead, they all insisted that the true value of the company was in the trademarked brand itself, asserting that the clothing business is extremely risky. They did see value in the brand name, but only in its limitless licensing potential.

Three of the sharks agreed to offer $25,000 each to buy the Hill Billy™ brand name for licensing purposes and not to invest in the manufacturing of the clothing line. They also offered to give the entrepreneurs a 7% royalty on all licensing fees. The deal was accepted.

The term Hill Billy refers to people in the United States who dwell in remote, rural mountainous areas, such as Appalachia, or the Ozarks. It sometimes has a derogatory connotation depending on the context of its use or the attitude of person using of the word. But, all of this meaning plus the values that are inferred are wrapped up in the brand name. The brand obviously offers a form of self-expression for certain consumers who can identify with it whether or not it is taken seriously.

The Hill Billy™ brand clearly strikes the right emotional chord with its target market that drives sales. That is exactly what makes it a valuable brand. How much is your brand name worth?

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Luxury Real Estate Marketing:Are You Playing Your "A" Game?

June 15, 2011

One of the core attributes of a successful luxury real estate marketing professional is consistent focus. Complacency begets inconsistency. When you get complacent, you are vulnerable to those competitors who maintain their focus.

Notice the consistency of focus in top professional athletes, musicians or entrepreneurs. Let’s use professional musicians as an example of consistent focus.

The very first thing a musician in an orchestra does is tune his or her instrument with the perfect pitch of the oboe playing the key of A. Think of perfect pitch as your pure brand signal. What do you do to align yourself each day with your pure brand signal and your vision for your luxury real estate marketing practice?

Professional musicians practice consistently. Once you have defined your winning formula in your real estate practice you must focus consistently on practicing what works, over and over again, fine tuning as you go along.

We recommend deliberately quieting the mind on a regular basis. When your mind is quiet all opposing or contradictory thoughts disappear and you are most receptive to “possibilities thinking”. That is a good time to contemplate your vision for playing your “A game” in your business.

Take what we call “transaction engineering” out of the picture for a moment. You are expected to be able to see a transaction all the way through to close of escrow. Let’s concentrate here on consistently doing the things that together comprise your “A game”. These are the things that are necessary to get transactions into escrow in the first place. Focus is all about the doing the small things like consistently:

Staying in touch with your sphere of influence
Promoting new business
Returning phone calls and emails in a timely manner
Showing up for appointments on time
Meeting new people who can be referral sources

If you get complacent and neglect these small things you are sacrificing your winning formula that has made you successful. To play your “A game” consistently over time you must find a way to stay focused and stay in perfect pitch. One way that we recommend to do this is to delegate everything you possible can that you do not absolutely love doing. This can be challenging. But, then if you are showing signs of complacency, a good challenge may just be the ticket for you.

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Luxury Real Estate Marketing: So, You Want to Be a Market Leader-Part 7

June 14, 2011

Today, in marketing luxury real estate, being tech-savvy involves much more than just optimizing your website to rank highly on search engines. It encompasses the art of building an audience of raving fans not just through blogging or having a Facebook page, but also through the latest social media practice of creating a “curated” online experience. In this final post in our series, So You Want to Be a Market Leader, we discuss how Tiffany & Company, the leading American luxury jewelry brand, has preempted their domestic and European competitors with this cutting edge, indirect or “peripheral” marketing and branding strategy.

We understand that building an audience was never part of the job description of a real estate agent. We understand that it is time consuming, not to mention a long term strategy. But, it is swiftly becoming a requirement if you want to gain or sustain market leadership. Every incumbent luxury real estate market leader who does not fully embrace the new media is potentially vulnerable to local challengers who are willing to do so.

Leveraging social media and mobile apps was certainly not an aspect of the jewelry marketing play-book either. But, Tiffany & Company is intent on attracting a younger audience and they know that they cannot rely solely on the tradition of their blue gift boxes or the half-century old Breakfast at Tiffany’s movie to win this new business. They are also intent on keeping ahead of their European counterparts, such as Cartier, who is challenging Tiffany’s dominance in the US when it comes to purchasing engagement rings by young affluent customers.

Tiffany has an iPhone and iPad mobile app where you can customize your own engagement ring and design and change the carat size of the diamond. When you place one of the rings that you already own on the screen it will tell you your ring size. But, soon every major jeweler will have their own app and this “feature” will no longer be unique. That is why we say that you cannot count on features as a way to differentiate your brand from your competitors’. Competing on features is not a brand strategy because brand strategy is all about seizing and holding on to top-of-mind status.

Recently, Tiffany & Company launched a new “curated” website called What Makes Love True. Their brand strategy is to “own” the word LOVE in the minds of their target market. If you want to sell engagement rings as your core product that would be an excellent word to own.

Tiffany takes on the role of “curator” of this online exhibition listing romantic places and restaurants to “pop the question”, lists of love songs and romantic movies that you can buy via iTunes, and also videos of customers of all ages who discuss the romantic courtships that lead to their engagements. You can also interact with the site by placing your initials (and your mate’s initials) on a map with your own story of why this location is romantic.

Staking a claim on “true love” as their brand position preempts any other competing jeweler to do so without looking ridiculous as a copycat. Can you imagine Cartier saying, “We stand for true love, too”? Provided that Tiffany continues to develop this site in interesting ways, we believe that this peripheral branding strategy is nothing less than brilliant! It is emotional branding at its best.

As a luxury real estate marketing professional who is bent on gaining or sustaining market leadership, what can you stand for, what word can you own? And, how do you go about executing a strategy to successfully achieve top-of-mind status with this brand position?

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Luxury Real Estate Marketing: The Heart of a Champion

June 13, 2011

If you want to become the dominate luxury real estate marketing team in your marketplace or niche therein, you and your team must have the heart of a champion. This post is dedicated to a true champion, Dirk Nowitski and the entire 2011 World Champion Dallas Mavericks team and franchise.

Dirk was one of only five players in NBA history to win the championship while being the only NBA All-Star on the team. Only Nowitzki and three other players have averaged more than 25 points and 10 rebounds in the NBA playoffs. Only Nowitzki and Kareem Abdul-Jabbar have ever had four consecutive 30-point 15-rebound games in the playoffs. Dirk is the only player in NBA history to get over 100 blocks and 150 three-pointers in a single season.

The Mavericks were not the favored team going into the playoffs. Nor were they expected to win in the finals according to most media pundits. But, they had a strategy. And, at the core of their strategy was their essential strength: cohesive teamwork that was consistently evidenced on the court and courtside.

In marketing luxury real estate as a team, it is essential that you assess your core strengths. Perhaps nothing is more important in building a championship real estate team than strategic thinking. This involves uncovering, identifying, and developing non-obvious opportunities to create value for your target market, extraordinary value that differentiates you from your competition. It necessitates challenging your assumptions about your current value proposition and re-engineering your strategic plan if you already have one in place.

As a team or a company, strategic thinking is best conducted in brainstorming sessions which can be fun and exhilarating if you set the right tone. When you brainstorm you are tapping into the realm of imagination which is the source of fresh, new ideas. The entire purpose of brainstorming in this context is to challenge conventional thinking.

Brainstorming should be open to all team members. However, as the leader of brainstorming sessions it is important to set some ground rules. When we brainstorm with our clients, whether the session is for an individual agent, a team or company, we introduce the concept of the “bulletin board”. The idea here is to just let all ideas that you hatch have a place on the board without criticism or immediate evaluation of its merit. You never know when a fragment of one idea can trigger a flash of brilliance that makes its way to you new strategic plan.

The very process of brainstorming on strategy not only develops a vortex of creativity where great ideas are born, but it also can create an atmosphere of trust that builds cohesive teamwork. If it feels safe to contribute to this “mastermind” everyone can own the strategic plan that emerges. Under these conditions the likelihood is high that the plan will be executed with minimum hassles.

To Dirk, the Mavericks and to all of you luxury real estate teams who have the heart of a champion we salute you. We understand what it takes to establish innovative strategies to out-think your competition and we know that it is cohesive teamwork that is at the core of your success.

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Luxury Real Estate Marketing: So, You Want to Be a Market Leader-Part 6

June 8, 2011

The Latest iCloud Technology- Courtesy of Apple

In our previous post (Part 5) of our series entitled, So You Want to Be a Market Leader, we covered one of the key vulnerabilities that luxury real estate market leaders tend to exhibit: losing focus. In this post we cover the other key vulnerabilities: Being complacent and being “tech-challenged”. If you want to overtake the incumbent market leader, rather than identifying an uncontested market niche that you can dominate, you need to assess your opponent’s weakest link and wage an all-out battle that is 100% concentrated on one of these three specific vulnerabilities.

Complacency, a common vulnerability of market leaders in luxury real estate, usually manifests in the form of neglect of the relationships that got them to the #1 position in the first place. Lack of consistent personal communication with their sphere of influence can create a very compelling reason to switch if the challenger excels at this and offers a remarkably distinct value proposition.

The consistent use of superior technology (especially methods for attracting a high volume of buyers) aimed directly at a market leader who is not tech-savvy, can be an excellent plan to challenge an incumbent. Incumbents who take on over-priced listings that languish on the market may look impressive to luxury home sellers in the short run. But, eventually, the agent who can demonstrate the ability to bring buyers to the table through superior technology will win the listings, too.

If you want to challenge the incumbent who is “tech-challenged” preempt this powerful attribute of being the most tech-savvy. That means, be the first challenger to seize this brand position by “owning” the very words "tech-savvy" as a brand position. Be the first to brand yourself as the tech expert in the competitive landscape that exists, not in your computer or in your office or in some other physical location in your marketplace, but in the minds of your target market.

When you are the first to take on the opposite attribute of the incumbent market leader as your brand position you stand a great chance of at least being #2. That is because you have framed the race for market leadership as a two person or two-company contest: “Tech-savvy” vs. “tech-challenged”. Creating an either/or contest summarily dismisses the rest of the would-be challengers for market leadership who may try to own this attribute in the minds of the target market. Saying "I am tech-savvy, too" is a very weak competitive position. It is like another rental car company besides Avis saying " We try harder (than Hertz), too".

Today, being tech-savvy is much more than just generating leads specifically for properties. It encompasses the art of building an audience of raving fans through social media and engaging in peripheral or indirect marketing. Tiffany & Company has just launched a social media website that we will review in Part 7 of this blog series that positions the jeweler to own the word “love” in the minds of its target market. If you want to sell engagement rings as your core product that would be an excellent word to own.

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Luxury Real Estate Marketing: So, You Want to Be a Market Leader-Part 5

June 7, 2011

In the realm of marketing luxury real estate, we have noticed some patterns of vulnerabilities among market leaders that represent opportunities for challengers. If they do have a chink in their armor it usually comes down to this: 1) they lose their focus; 2) they get complacent, or; 3) they lag behind technologically.

If you want to overtake the incumbent market leader, rather than identifying an uncontested market niche that you can dominate, you need to assess your opponent’s weakest link and wage an all-out battle that is 100% concentrated on one of these specific vulnerabilities.

In this post we look at the vulnerability of losing focus. Maintaining focus over time is one of the true tests of a market leader.

When you are a market leader in a specific category or niche within your marketplace there is always a temptation to lose your focus by diversifying or changing your singular winning formula because you have attracted an abundance of diverse opportunities. If you are the best prime rib restaurant in town, is it not logical that you could also become known as the best seafood restaurant? After all, the fundamentals of the restaurant business are the same regardless of what you serve.

There is a seafood restaurant in Los Angeles that was, year after year, one the highest grossing restaurants in town because of its moderately priced menu, its ideal setting and a bar business that was unstoppable. It appealed equally to families, tourists and young adults. We recently visited the restaurant after over a decade of no longer living in the city, expecting to find the same menu. Instead, they reinvented themselves as an expensive dinner house. They may have needed to refresh their brand, but they completely lost their focus on the core attributes that made them successful for decades. This restaurant is potentially vulnerable to competitors who could reintroduce the prior winning formula under a new brand.

To be successful today, you have to narrow your focus in order to build a position in the prospect's mind. Then you have to stay focused to sustain your market leadership position. A company that has resisted the temptation to diversify and has maintained its focus on its primary winning formula is Gerber.

Just take a walk down the baby food aisle in any supermarket in the USA (and dozens of countries around the world). Gerber dominates this food category and the shelf space as well. The company is owned by Nestlé, the largest food (and nutrition) company in the world, founded and headquartered in Switzerland. Gerber enjoys roughly 80% of the market share. Beech-Nut, a very distant #2, is also Swiss owned by the Hero Group, who makes fine jellies and jams in addition to baby food. With no substantial challenger, only Gerber and Beech-Nut currently have double-digit market shares.

How focused are you in your market place? In our next post we will cover the other two vulnerabilities of incumbent market leaders: Being complacent and being “tech-challenged”.

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Luxury Real Estate Marketing: So, You Want to Be a Market Leader-Part 4

June 6, 2011

One of the best ways to become a market leader in your luxury real estate marketing practice is to carve out a new niche or create an entirely new market category. Why not start out as #1?

There is a huge competitive advantage in being the first in a freshly defined market segment. For example, have you ever tried or heard of 5-Hour Energy, the caffeine and vitamin liquid concentrate that comes in a small plastic bottle and is sold over the counter?

Seven years ago there was no such niche or sub-category of beverages. This energy shot trend was started by 5-Hour Energy. They dominate the category with an 80% market share, according to trade publication, Beverage Digest. Their annual sales are about $1 billion. The next closest competitor, NVE Pharmaceuticals has a paltry 5% market share. 5-Hour Energy, as a brand, has achieved the status of “category killer”.

Some of the best niches are not obvious. In our recent blog series, So You Want to Be a Market Leader-Part 3, we used the example of becoming the expert in ski-in/ski-out properties within the larger marketplace of the entire ski resort town. This is a very narrow market niche, but a potentially lucrative one as these kinds of properties tend to be the most expensive.

Let’s take this example a few steps further. Before you declare yourself the expert, you need to have some ski-in/ski-out property sales (at least one) under your belt to have some credibility. Then, when you take it upon yourself to define or carve out a niche where heretofore the niche was not perceived as a separate area of specialization amazing things happen.

Suddenly, you are perceived differently and so is the competitive landscape. Because you are the first, you literally cause your name to be identified with the new category that previously did not exist. Once this takes place it is very difficult for your competition to dislodge the #1 position that you have secured in the minds of your target market.

When people indentify you as the ski-in/ski-out maven, they will refer you to other owners of such properties (who they probably know very well) as the expert. If you were the owner of a ski-in/ski out property, wouldn’t you want to be referred to the leading expert in this field to list your home, instead of the generalist? That is what branding is all about.

In your luxury real estate practice, the sharper your focus the more you become an expert and the more likely you are to succeed. Concentration in your chosen area gives you a command not only of the nuances of the market segment itself, but also of the mindset of your target market. The depth of your knowledge and your certainty about your niche becomes palpable to potential clients. The sharpness of your focus also enables you to discover opportunities that completely elude your competition. If you are passionate about your niche, you will not need energy shots to keep you awake, lift your spirits or stay motivated .

You may think that it is scary to be so focused within a niche because you have to sacrifice other general business if you give your niche your undivided attention. But, in time your name can become extremely well-known and, ideally, synonymous with the category itself. That is when you become the undisputed category killer. If you sustain your focus, you can become so formidable as the market leader that your would-be competition will not even bother to challenge you.

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Luxury Real Estate Marketing: So, You Want to Be a Market Leader-Part 3

June 1, 2011

See Part 1 and Part 2 of this blog series, So You Want to Be a Market Leader

When you think of the word strategy what comes to mind? In the context of marketing luxury real estate, or any product or service, strategy ONLY applies to gaining or sustaining market leadership. It is just for incumbent market leaders who want to hold on to the #1 position and those who want to challenge the incumbent. More succinctly, it is only about being #1 or #2 in mindshare and in market share within any given marketplace or niche therein.

In the majority of cases the combined market share of #1 &#2 represents the lion’s share of the entire “pie”. These two contenders understand just how much is at stake. Very often, there is a vast crevasse between the market share of #1 and #2. For example, #1 search engine, Google, enjoys about 65% of the market. Yahoo, #2 owns 17% and #3 Microsoft Bing has about 11%.

Bing is trying valiantly to whittle down Google’s market share. Its most recent strategy has been to align with and own a piece of Facebook in order to make search more social (getting recommendations from friends when delivering search results). In a Wall Street Journal interview Google Inc. executive chairman, Eric Schmidt said that one of his biggest failures as CEO over the last decade was grappling with the rise of social identity services such as Facebook. Microsoft seized a potentially threatening strategic advantage with their social search strategy.

The marketing activity of an unmotivated #3 or any of those that are lower on the totem pole is actually not strategy. If you are not striving to be #1 or #2 you are merely engaged in tactics to fight over the crumbs, which may be plenty for some but not for those with the heart of a champion.

When it comes to marketing luxury real estate, keep in mind that you get to define the size of your marketplace if it is based on geography or just how narrow you want to slice your niche within a general category. For, example you can be the market leader in selling sky-in/ski-out properties in Vail Colorado, or in Deer Valley, Utah. The price point of these properties is typically very high and you do not need to sell many homes to earn sizable commissions.

We live in a time-pressed world where the majority of human minds can only remember up to 3 brands in any given category of product or service. Some people can only think of one brand in some categories. That is why being #1 or #2 is the only game in town for those of you who have embraced the unabashed pursuit of market leadership. For you, strategy is the name of the game and the jackpot is achieving top-of-mind status.

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Luxury Real Estate Marketing: So, You Want to Be a Market Leader-Part 2

May 31, 2011

In Part 1 in this series we covered two keys to becoming a Market Leader, as a luxury real estate marketing professional. The first key is to identify an uncontested or under-served market niche in which you can be the dominant player. We wanted to elaborate on this.

If you are the first major player in a new category you will have a tremendous competitive advantage over potential challengers because you become immediately identified with that category in the minds of your target market. You make news when you start a new category or take over an under-served category. But, beware of the temptation to get complacent if you are unrivaled!

If you want to take on an incumbent market leader be sure you are taking on a category or niche or market segment that you believe you can serve better than the leader or any other contender. Here is an example of a 17 year battle to surpass an incumbent market leader who was the first major player in their category.

Take a moment to answer this question: What is the first lemon –lime soda that comes to your mind? Can you think of more than three brands? Most people can only think of one or two.

Sprite was introduced in the US in 1961 as Coke’s response to 7Up, the market leader. To fend off Sprite’s challenge, 7UP launched one of the greatest brand strategies of all time by positioning itself not just as a competitor of Sprite but as “The Uncola”. This worked for a few years. Then, in 1978, Sprite seized the position of the #1 best selling lemon-lime soda.

By the 1980s Sprite became very popular among teenagers. They launched a slogan to cater to this generation that was used from 1987 to 1994: "I Like the Sprite in You". In 1999 7Up tried a strategy known as “taboo” marketing to appeal to the younger generation. “Make 7UP Yours” was their slogan. But, they placed “Make 7” on the front of T-shirts and “Up Yours” on the back. By then it was too late to regain their market leadership position.

In 2004 Sierra Mist surpassed 7Up on the basis of annual retail sales, placing it as the second most-purchased lemon-lime soft drink in the U.S. Sprite still reigns supreme.

In the 60’s, 7Up was essentially in an uncontested market niche enjoying top-of-mind status. Then Sprite came along. Ultimately, Coke had superior marketing muscle and staying power. But, it took Sprite 17 years to surpass 7Up, the incumbent market leader. That should give you an idea of how the first in a category has a tremendous competitive advantage, especially if it does not get complacent.

Find an uncontested market niche that you can dominate and serve better than anyone else in your luxury real estate marketplace. If you do not get complacent you should enjoy a long ride.

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Luxury Real Estate Marketing: So You Want To Be a Market Leader?

May 30, 2011

In luxury real estate marketing and in business in general, market leadership is measured in sales volume and market share. It is also measured with an equally important indicator, “top-of-mind status” because mindshare always precedes market share. Here are the two keys to becoming a market leader.

The First Key to Becoming a Market Leader

If you want to be a market leader, the first key is to identify an uncontested or underserved market niche or category that you can serve more effectively than anyone else. Then become the dominant player in that arena.

Your marketplace does not have to be an entire town. You get to define the scope of your market segment. It can be as narrow as you want as long as it has the potential to fulfill your financial expectations. You can achieve top-of-mind status in a three block section of a suburb or a community of just 500 homes or by specializing just in waterfront properties or condos.

The Second Key to Becoming a Market Leader

In any category or niche the battle for market leadership is actually a contest of ideas, and the prize is top-of-mind status. Therefore, the second key to achieving market leadership is to seize an idea that you can stand for authentically and own like “the waterfront expert” or “condo king”.

Do not waste your time copying what the current market leader is doing. And, do not try to compete by using your opponent’s idea. As the famous chef, Emeril Lagasse, said, “Get your own show!”

We have a client in Florida who takes prospective buyers on boat tours of waterfront properties in her marketplace. She not only owns the boat she “owns” this idea of boat tours. To compete with a market leader like this, it would be futile to copy boat tours. Instead, you would need to stand for and own your own idea.

Consider the top wireless carriers. Today, both AT&T and Verizon offer the iPad and the IPhone. The price is the same. Which one would you choose? Verizon stands for and “owns” the idea of “coverage & reliability (fewer dropped calls)” AT&T cannot compete on this attribute. However, it is attempting to acquire T-Mobile so it can compete in terms of size which may translate into “faster product availability” because of the deals they can strike with manufacturers, or “deeper selection” (of bundled of services) down the line. Sprint has the first 4G network; it currently “owns” the idea of “speed”. But, 4G is just a feature that all wireless carriers will eventually have.

So, you want to become a market leader? Find an uncontested or underserved market niche. Then, find an idea you can own in the minds of your target market. Remember that marketing is a contest of idea and top-of-mind status is the prize!

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California's Best Luxury Real Estate Markets: Santa Ynez Valley

May 28, 2011

This is part of a blog series called 50 Top Luxury Real Estate Markets in the USA. Please let us know if you think we should include YOUR marketplace in this series. CONTACT US

For those of you who wish to escape the intensity of the city and enjoy a quieter, more relaxed, simpler life with a graceful pace reminiscent of the 1950’s, the magnificent Santa Ynez Valley, in California’s Santa Barbara Wine Country, is the place for you. We asked some of the top luxury real estate marketing professionals in the area to tell us what they loved about their marketplace. Here is what they said. (Be sure to click on the agents' names to view their Featured Properties)

The approach to Santa Ynez Valley from Santa Barbara via Route 154 is breathtaking! As you descend into the Valley from the Sam Marcos Pass in the mountains, to your right is the grand Lake Cachuma that hosted the canoeing and rowing events of the 1984 Olympics in Los Angeles. According to Marilyn Elam, numerous clients have told her, when they first arrived in the Valley, “I thought I would have to go to Idaho or Big Sky Montana to find such expansive untouched physical beauty".

Lake Cachuma

Some of California’s finest equestrian estates, private farms and ranches can be found in the Santa Ynez Valley. Many estates have their own vineyards. Claire Hanssen said, “With our ideal climate, many people are attracted to the Valley simply because they can grow their own sustainable produce, or their own feed for horses or cattle”.

“Tourism has allowed the wine industry to flourish in the area”, says Rich Condit. “It also helps to have many fine restaurants in the area such as Vineyard House (regional rustic American cuisine in a charming 100 year old Victorian home), Grappolo (Italian), Petros (Greek) and The Brothers at Mattie’s Tavern that is housed in one of Santa Barbara Wine Country’s most cherished buildings”. Located in Downtown, Solvang, Root 246 was created by the world-renowned celebrity chef, Bradley Ogden. It offers a full menu of his signature farm-to-table cuisine, and one of the most extensive selections of local wines.

Many of the California Central Coast wines rival the best of Napa and Sonoma, to the North, above San Francisco. If you like guided tours, you can follow the wine trail that features the wineries in the movie "Sideways" or just explore on your own. For example, Laura Drammer pointed out that Kaena Winery is opening a new tasting room in Los Olivos. They produce just 500 cases each year, focusing on Grenache and Syrah wines. In Hawaiian Kaena means “potential for greatness”.

According to Carey Kendall, “international buyers compare the topography of the Santa Ynez Valley to parts of Northern Italy and Southern France and appreciate its proximity to Santa Barbara, ‘the jewel of the West Coast’ (also known as the ‘American Riviera’)”. Sharon Curries is seeing an upswing in interest from foreign buyers, “particularly from Canada, Spain and Malaysia”, she said.

Suzy Ealand believes that, “The wide open space and the temporal climate is conducive to easy living here with less chaos than larger towns. The Valley provides a smaller community feel where everyone can know each other”. Yet, Santa Ynez Valley is a place where privacy is respected, a place where the rich and famous can live and enjoy the country lifestyle without the fanfare of the big city.

The schools in the Santa Ynez Valley are among the top in the County. And, they are safe. Marlene MacBeth, a resident for 32 years who partners with her husband Dave, mentioned that it was a great place to raise her family. “Living here is a throwback to pre-9/11 days; kids still walk home from school or ride their bikes. They get individual attention and parent involvement in schools is extensive”. Micah Brady, the younger half of a father & son real estate team, grew up in the Santa Ynez Valley. He said, “The classes are smaller; it is like being in a private school”.

Thirty minutes from the Santa Barbara Airport and just two hours north of Los Angeles International Airport, this “hamlet in the hills”, as Patty Murphy refers to it, “is a cosmopolitan village with its roots in the soil”. Whether it is farming, growing apples, ranching, producing your own wine or sending your kids to great schools that draw you to the Santa Ynez Valley to live, ultimately, it is the quality of life and sense of genuine community that will make you feel like this is home.

Personal & Company Branding: Are You Looking for Your Soul Mates?

May 25, 2011

Luxury real estate marketing professionals should spend zero time selling and much more time looking for soul mates. If this sounds odd to you take a lesson from one of the greatest retail brands in the world, IKEA—a brand with a soul.

Are you a Frikadellers fan? Frikadellers are flat pan-fried dumplings of minced meat--the Danish version of meatballs. If you do not have a Danish restaurant nearby you can find Frikadellers most of the 300 IKEA stores in 38 countries. IKEA is a privately held international home products company that originated in Sweden. It designs and sells ready-to-assemble furniture, appliances and home accessories. The company is the world’s largest furniture retailer.

What does the IKEA brand stand for? Or, put another way, what is the soul of IKEA’s brand?

IKEA has taken the lead in adopting environmentally friendly manufacturing processes which extends to the unassembled product solution in shipping and packaging. They are a pioneering force in taking a sustainable approach to the “mass consumer culture”. An example is their extensive use of particle board. On February 17, 2011, IKEA announced its plans for a wind farm in Sweden, furthering the furniture giant's goal of running on 100 percent renewable energy.

IKEA’s charitable foundation is officially dedicated to promoting “innovation in architecture and interior design”. With a net worth of approximately $36 billion, the foundation is unofficially the world’s largest charitable organization. It eclipses the Bill and Melinda Gates Foundation that is worth approximately $33 billion, although the Gates donate much more in charitable gifts.

If the soul of IKEA’s brand is: 1) environmental sustainability in manufacturing, and; 2) innovation in architecture and design, who are IKEA’s ideal customers? An even better question is who are IKEA’s soul mates?

The answer is customers who have identical values! Are you an IKEA soul mate? If you prefer not to assemble your own furniture, or if you object to the idea that investing in innovation in architecture and design vs. giving to world health causes (like the Gates often do) you might not be a soul mate for IKEA.

When you understand that effective branding and marketing is really the art of matchmaking, and a member of your ideal target market is actually a soul mate, then the subject takes on a completely new and fresh perspective. The discipline of branding then becomes one of sharply defining who you are and clearly expressing it in such a way that your soul mates can quickly recognize that you are a match made in heaven.

When marketing and branding is done right it takes sales completely out of the equation! Trying to convince someone that they are a soul mate when they truly are not a match annoys the prospect and is a complete waste of your time. The hard sell is only used when a professional or a company does not know exactly who they are and also when they are "clueless" as to whom their ideal match is.

Are you looking for your soul mates? You should be. The biggest secret of marketing is this: Your soul mates are also looking for you! All you have to do is help them find you.

By the way, if you are a carnivore vs. a vegan or a vegetarian, you ought to try IKEA’s Frikadellers sometime.

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Personal & Company Branding: The Futility of Competing on Features-Soul vs. Sole

May 24, 2011

The essence of a personal or company brand in luxury real estate marketing could be considered the soul of your brand. It is the meaning and the emotion that the brand evokes in the minds of your target market. A feature can be imitated. Searching the MLS on your website is a feature that your competition can easily duplicate. But, they cannot duplicate the soul of your brand.

Christian Loubotin whose trademarked red soled shoes made its mark in the popular show, “Sex and the City”, is now suing two other companies who have had the audacity to color their soles red. The red sole is a just a feature it is not the soul of the brand.

The first is Yves Saint Laurent whose 2011 spring shoe collection has suede shoes with matching soles,( red shoes with red soles, green shoes with green soles, etc.). Yves St Laurent responded with its own lawsuit claiming, "Red outsoles are a commonly used ornamental design feature in footwear, dating as far back as the red shoes worn by King Louis XIV in the 1600s and the ruby red shoes that carried Dorothy home in The Wizard of Oz. YSL also alleges that Mr. Louboutin was fraudulent in his trademark application claim that he had 'exclusive' use of the red sole."

The second is a Brazilian shoe company, Carmen Steffens, who is willing to provide evidence that their shoes had red soles before 1992, when Louboutin filed for the trademark. The company finds it "surprising that another brand is trying to reserve the rights to any color."

What this example clearly illustrates is the futility of competing “solely” on features. In this case, competing on color alone is ridiculous.

An authentic market leading brand cannot be copied or imitated. It has an unfaircompetitive advantage by virtue of the fact that it occupies the top-of-mind position in the mind of the buyer. A great brand possesses an emotional differentiator which creates an added value that often escapes the confines of logic. Do you remember, the famous long-running cigarette brand slogan for Tareyton, “I would rather fight than switch”?

Tiffany & Company as a brand has very strong added emotional value. Tiffany sells diamonds as do many other retailers, such as Macy’s, Costco and a myriad of jewelry stores. We can assume that all the stores buy from a reputable dealer, and we know that all diamonds are graded by the standards of the Gemological Institute. Upon sale, a certificate is issued to validate the diamond’s quality. Logically, any retailer can sell the same size stone, with the same clarity (features). However, some recipient will feel that a diamond from Tiffany’s inherently has more value than a diamond from Costco or Macy’s. Is it the Tiffany blue box?

The famous robin’s egg blue color has been copyrighted by Tiffany. In our travels, we have seen many imitators, but no lawsuits, to the best of our knowledge have involved the imitation of the use of their signature color. Although, Tiffany’s blue gift box is just a feature that can be imitated, it has tremendous meaning to the recipient. And, that meaning is the soul of the brand not the box itself.

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Personal & Company Branding: Is Your Brand a Conundrum?

May 23, 2011

Selecting the right brand name as a luxury real estate marketing professional is extremely important. Here are the criteria for excellent brand names:

It should be easy to remember
It should be easy to spell
It should be easy to communicate for referral sources when they tell their friends about you or your company
Ideally, it should summarize the experience of doing business with you.
It should be inimitable.

Here is an example of a brand that meets all of these criteria: Conundrum—a extraordinary white table wine which is a product of the Wagner family who also produce one of the finest Cabernets in the Napa Valley.

A conundrum is a puzzle, a mystery, a challenge, a riddle or a dilemma. The word is fairly easy to spell. Once you taste this wine it is very unlikely that you will ever forget the experience; it is that outstanding. It is such an amazing value right now (Costco sells it for a remarkable low price of $16.95 per bottle). The wine is indeed a mystery because it is difficult to decipher the exact blend of grapes and flavors that make up its wonderfully robust, floral and bright tropical taste.

As they say on the Conundrum website: “Is it green apple, tangerine or honeysuckle? Could it possibly be apricot, melon, pear or light vanilla? That’s the Conundrum!" It is inimitable. Their proprietarily, secretive blend of California white grapes create a lush, creamy texture that leads to the mouth-watering question, “Mmmm, what’s in there?”

If you drill their site you can find the tasting notes by Jon Bolta, the Winemaker and Production Director:

When a product or service is truly remarkable you naturally want to tell others about it. If you take the time to get your brand name right you actually make it easier for your raving fans to promote you. And, that can translate mightily to your bottom line. If you don’t pay attention to this important principle of marketing and branding you will have a conundrum on your hands as you try to figure out why people are not spreading the word about you.

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Luxury Real Estate Marketing: Five Principles of Successful Branding and Marketing

May 19, 2011

Ride the Wave

Last year Apple rolled out the iPad, an entirely new computer category, and they created a tidal wave of change in many industries. We have been following this story closely because it speaks volumes about the principles of successful branding and marketing that can be applied to your luxury real estate marketing practice. Here is a summary of these principles:

Spot the trends, ride the wave. Be the first in a new brand category. Capitalize on your “unfair” competitive advantage. Be the opposite of your closest competition. Take a stance that distinguishes you from your competition and resonates with the core values of your ideal clients. Apply these five principles and you will be well on your way to gaining or sustaining market leadership in your area.

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Luxury Real Estate Brand Strategy: The Perils of Monkey See, Monkey Do!

May 18, 2011

As a luxury real estate marketing professional, imitation of the market leader is definitely not a viable brand strategy for the challenger. It becomes a case of “Monkey see, Monkey do”. Imitation may be the sincerest form of flattery, but it will not result in increased market share.

On a recent trip to Los Angeles, we stopped by our favorite shopping center in Century City adjacent to Beverly Hills. This is an outdoor mall with movie theaters, restaurants, department stores, boutique stores, and electronic equipment stores. The mall is situated between several high rise office buildings with walkways and bridges over the streets that bring a constant flow of people to the center. As we were walking along checking out the latest and greatest we passed the Apple store that was packed with customers, many who were coming out with purchases. Then, several doors down, we noticed the new Sony Store that was not crowded at all.

In Japan, Sony has slipped to #2 with Apple becoming the #1 “luxury” electronic brand. Now, with lost market share, Sony is trying to play catch-up. But, how are they different? What does Sony stand for? Why was Sony not as busy as the Apple store?

In the Sony storefront was a large billboard of leaping young people (pictured above) with the slogan, “Connect/Compete/Conquer”. In front of the billboard are three colorful balls. This message was our first encounter with the brand as a store. What does this message mean in terms of a unique promise of value as distinct from Apple? We are still scratching our heads in wonderment.

If you do not immediately offer a compelling reason to switch brands on first encounter your chances of gaining market share from the incumbent market leader are next to none. The same holds true for marketing luxury real estate.

The Sony store is beautifully designed, and fun to walk through. We donned glasses to view the newest 3D screens, we saw holographic image technology, and we played with their new touch screens. The sales people were very knowledgeable and very helpful. They wore colorful T shirts with Sony logos (just like the Apple staffers). One of the fun things that caught our eye was colorful keyboard covers that would transform an ordinary white keyboard into lime green, hot pink, or orange. But, it was Apple that introduced the concept of multiple bright colors to their product line.

The Sony laptop computers uses the Windows 7 operating system. So do other brands. How are Sony’s laptops different from those brands? Certainly, the feature of applying a colorful plastic cover to your keyboard is unique. But, any other brand could replicate this feature for pennies and render Sony’s keyboards indistinguishable.

A handful of people walked in and out admiring and testing the displays. But, we did not see any products purchased in the Sony store while we were there.

Luxury real estate marketing professionals, take heed! Imitation of incumbent market leaders will get you nowhere as a brand strategy. Think different. That is what Apple has done.

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Personal & Company Branding: The Top 25 Ad Slogans of All Time

May 16, 2011

Brevity of communication when it comes to conveying your unique promise of value is of paramount importance for luxury real estate marketing professionals who seek market leadership. Millions of dollars are paid to advertising companies to achieve this for products and services. Why not learn from the best when crafting your own marketing message?

The top 25 ad slogans of all time is a great place to start. See how many of these slogans you recognize. If you score more than 50% you are certain to understand the core concept of branding. These brands are forever imprinted on your brain with these slogans. The advertisers want their brand to come up first whenever you think of the corresponding product category. Coming up "Top-of-Mind" is what branding is all about.

Jingles are slogans put to music. Numbers 1, 4, 6, 18 & 19 are jingles. Can you remember the tune?

The answers are at the bottom of the list.

Plop, plop, fizz, fizz, oh what a relief it is
You're in good hands with _______.
Don´t leave home without it
Reach out and touch someone
A little dab'll do ya
M'm! M'm! Good!
Please don't squeeze the ________.
The pause that refreshes
Look, Ma, no cavities
When it absolutely, positively has to be there overnight
Snap! Crackle! Pop!
Finger lickin' good.
Betcha can't eat just one.
Because I'm worth it
The milk chocolate melts in your mouth, not in your hand.
Good to the last drop.
Just do it!
You'll wonder where the yellow went when you brush your teeth with ________.
Sometimes you feel like a nut, sometimes you don't.
The Uncola.
Think Small.
Where's the beef?
Let your fingers do the walking.
When you care enough to give the very best
The Breakfast of champions

1. Alka Selzer,2. Allstate, 3. American Express, 4. AT&T, 5. Brylcreem, 6, Campbell’s Soup, 7. Charmin, 8. Pepsi, 9. Crest, 10. Fed Ex, 11. Rice Crispies, 12. Kentucky Fried Chicken, 13. Lay's potato chips, 14. Clairol, 15. M&Ms, 16. Maxwell House Coffee, 17. Nike, 18. Pepsodent, 19. Almond Joy, 20. 7UP, 21. VW, 22. Wendy's, 23. Yellow Pages, 24. Hallmark, 25. Wheaties

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