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When Market Forces
Demand Change:
Evolving the AlphaGraphics
Business Model and Brand
Liz Brohan, Co-CEO and President
What You’ll Learn
Key phases required in the change process
How to transform the business model and brand simultaneously
Maintaining momentum and achieving enterprise-wide compliance
Dear Executive,
Faced with the need for massive change, AlphaGraphics, the leader in the
quick-print industry, took on the task of evolving into a marketing services
provider. They accomplished this with a sustained level of urgency and
enthusiasm, and made themselves into significantly better competitors in
the process. This is the story of their extraordinary transformation and the
role CBD played in it.
Change is a process that AlphaGraphics knew CBD could guide them through.
Together, we worked through our proprietary methodology to evolve their
business model and brand.
Liz Brohan
Co-CEO & President
CBD Marketing, Inc.
When it comes to the chronicles of business change, much has been written
about failure. One statistic reports that as many as 70% of organizations that
attempt large-scale change fail.* AlphaGraphics is not among them. They
recently launched the new brand, and are moving rapidly toward realizing
the goals established for the new business model.
For over 40 years, AlphaGraphics, a 300+ international network of business
centers, has offered traditional printing services including color, large format,
offset and digital printing. With the onset of digital technology and the
emergence of Marketing 2.0, a new reality set in. Print demand was rapidly
declining, replaced by digital solutions that could engage customers in
tantalizing new ways on exciting new devices in a myriad of channels. In order
to stay relevant, AlphaGraphics recognized early on that expanding into other
core marketing services would be essential to remaining in business and
paramount to growth.
A basic goal of an effort like this, according to Harvard Business School
Professor John P. Kotter, is to make fundamental changes in how business
is conducted in order to help cope with a new, more challenging business
environment. AlphaGraphics’ goals were broader and much more complex
than this. CBD’s process identified three critical areas of focus required to
enact successful change:
• Operational
• Perceptual
• Self-Actualizational
Throughout these pages we’ll explore how AlphaGraphics embraced change
management, with all the inherent challenges, and followed a systematic
approach to creating strategies and implementation plans that would set them
apart in an increasingly competitive business environment. It’s a fascinating
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CBD market what’s meaningful®
journey, with applicable how-to methodology and lessons for all of us in each
step taken. Most noteworthy is that they never skipped a step. That fact is
significant. With market pressures mounting, AlphaGraphics was steadfast in
harnessing the urgency of the situation without sacrificing any phase of the
process. There are several phases in this process that require a considerable
amount of time. Skipping steps only creates the illusion of speed and rarely
results in survival, let alone growth. AlphaGraphics took pains to ensure that
they did it right.
Enjoy,
Liz Brohan
*Leading Change: Why Transformation Efforts Fail by John P. Kotter
Key players that unlocked a brand
CBD would like to acknowledge the countless individuals whose tireless efforts have
contributed to the success of AlphaGraphics’ transformation. Led by CEO Kevin
Cushing, AlphaGraphics formed a core team to establish and accomplish its new
mission. This team included international Service Center staff members and Business
Center owners from throughout the franchise. These individuals were Darnell Ghidotti,
Jesse Himsworth, Al Schnell, Olivia Hurter Swan, Jeff Bittner, Clare Meehan, Keith
Hermanson, Mike Moran, Larry Furlong, David Kovacs and Rodrigo Abreu.
Additionally, AlphaGraphics harnessed and relied on several other internal and
external teams to apply 360° thinking and provide fresh perspective, new insight,
and uncommon solutions for evolving the business model to generate growth. These
groups included the AlphaGraphics Network Leadership Council, and a student group
from the University of Chicago Booth School of Business took on this challenge as
part of their New Venture and Small Enterprise Lab assignment in completing their
MBAs. The team from Booth included Professor Linda Darragh and MBA candidates
Doug Charron, Tatyana Chupina and Olivia Morad. AlphaGraphics also assembled
a think tank composed of leading industry experts including: Dr. Joe Webb, industry
economist, consultant and author; Barbara Pellow, Group Director, InfoTrends; Julie
Shaffer, Vice President, Digital Print Technologies, Printing Industries of America; Gina
Testa, Vice President, Graphic Communications, Xerox; Richard Romano, Industry
consultant and author; Gary Nemcek, Co-Founder and President, Four51; and Joe
Truncale, President, National Association for Print Leadership.
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CBD market what’s meaningful®
When Change Becomes the Only Choice
In 2009, acknowledging the changing marketplace
for print services, AlphaGraphics began the process
of evolving its business model to provide a broader
range of marketing communications services to its
customers. Specifically, AlphaGraphics was looking
to build on its more than 40-year heritage as a
premium provider of rapid response print solutions,
and expand its service offerings with an eye toward
becoming a leading marketing communications
“This is not a one-time effort,” said AlphaGraphics
CEO Kevin Cushing. “It is an ongoing journey that
will require all of us to move out of our comfort
zones, attack new challenges, and more than
ever before, work together as a network.”
By August, 2011, AlphaGraphics had launched a
complete suite of marketing services—including
mobile, online, e-publishing and e-mail marketing
to their customers.
resource for small and midsize businesses.
At the onset of its transformation, the international
network of more than 300 independently owned
and operated AlphaGraphics business centers
was skilled at providing a wide range of products
and services for design, digital and offset printing,
one-to-one marketing, digital archiving, mailing
and more. However, they recognized that the
traditional “print” business was in a state of decline
and commoditization, and that an abundance of
opportunity existed in digital communications and
cross-channel disciplines.
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Setting the Stage for Success
Undertaking revolutionary change requires a
thoughtful and disciplined approach that is
well informed by the individuals and groups
most affected by the change. It also requires
a thorough understanding of the current and
evolving marketplace, the target audience, and
an organization’s core capabilities.
CBD leveraged its Marketing What’s Meaningful
proprietary methodology to gather data, drive
insight, information share, and define action plans
in realizing each objective.
It begins by achieving a 360° viewpoint that is
thorough enough to support meaningful evaluation
from both internal and external perspectives. For
this effort, work was approached collaboratively
with AlphaGraphics resources to profile the current
state of the business, capabilities of the franchises,
and customer perceptions and needs.
This work was planned and completed across
three phases:
Marketing What’s Meaningful Methodology
Phase 1 – Analysis and Assessment
In the fall of 2009, as part of an initial evaluation
effort, AlphaGraphics conducted research among
its franchisees. This very important step in the due
diligence process found that 76% of the network
categorized the long-term growth potential of
their franchise business as “good” to “excellent.”
This positive feedback prompted CBD and
AlphaGraphics to map a series of steps which
would support the franchisees in offering products
and services with a higher long-term sales and
relationship potential.
Phase 2 – Strategy Articulation
Phase 3 – Positioning and Identity
To prepare a transition and launch plan, CBD
recommended additional research that more
deeply analyzed the current marketplace and the
AlphaGraphics franchise operations. Specifically,
research was conducted to determine the extent
of “elasticity” that would allow AlphaGraphics to
address how brand identity, together with product
and services development, must progress in order
to support future business growth.
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Phase 1 – Analysis and Assessment
Seeing the Big Picture Leads to Bigger Opportunities
• A complete understanding of the sales
trajectory, especially for differing segments
of franchises
By profiling the current AlphaGraphics business and
marketplace, auditing the competitive landscape,
mapping perceptions and needs of prospects and
customers, and assessing the capabilities of the
franchises, CBD was able to work toward several
important outcomes, including:
• A fully developed profile of current and future
prospect and customer wants, needs, and
perceptions
• Identification of opportunities for differentiation
from potential competitors
• An assessment of latitude for perceptual change
and acceptance…both internally and externally
• A formulated plan for model and brand evolution
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Market What’s Meaningful Methodology: Phase 1 – Analysis and Assessment
products and services offered, positioning,
target audiences, delivery and messaging
effectiveness, along with competitive strengths
and weaknesses.
1. Assemble Core Team: This initial step identified
members of a core team comprising corporate
and marketing leaders and business center
owners. It was important to appoint a team that
would remain engaged throughout the entire
process. AlphaGraphics also included members
of its global leadership.
4. Center Research: Franchise owners and center
management personnel were invaluable sources
of the insights and perspectives that drove the
evolution of AlphaGraphics. Our purpose for this
research was to gauge:
2. Work Exercises: To accelerate the process
and provide early analysis, all AlphaGraphics
core team members were required to complete
individual exercises in order to capture thoughts
such as:
SWOT Analysis: This essential component
validated and ranked the most significant
strengths, weaknesses, opportunities and
threats impacting evolution and growth
within current and future markets.
Current and Future Brand Intentions:
The result of this work is the development
of articulated values and imagery to support
AlphaGraphics as the organization evolves.
Value Proposition Development:
Using prompts that helped consider a prospect’s response triggers, AlphaGraphics was able to build a concise and unique value proposition statement that could be articulated network-wide.
Customer Buying Process: This mapping tool is used to detail the activities and needs of the buyers and influencers within important sectors. Rational and emotional needs and considerations are included.
Internal and external perception
of AlphaGraphics
• Current consumption of available
products and services
• Growth and contraction trends
• Purchase cycle and behavior of adjacent
products and services
• Current capabilities, skills and expertise
• Key customer relationship depth and duration
• Marketing and sales activities and processes
• Product mix most wanted and needed from
AlphaGraphics
• Local competitive activities and trends
• Ranking of perceived hurdles to evolution
•
5. Customer and Prospect Research: Substantial
and key primary research was undertaken in
order to fully profile the wants and needs of
target customers and fully gauge all influencing
factors, such as:
nnual/seasonal marketing activities,
A
budget and sophistication
• Perception of AlphaGraphics vs. competitors
• Pros and cons of AlphaGraphics vs. competitors
• Knowledge and use of AlphaGraphics
capabilities, products and services
• Purchase cycle and behavior of adjacent
Data from these exercises were then compiled
and analyzed. Then, CBD highlighted the insights
most important to evolving the company and
the brand.
•
products and services
Overall experience with AlphaGraphics
• Propensity to purchase additional marketing
services from AlphaGraphics
• Product mix most wanted and needed
from AlphaGraphics
•
3. Competitive Benchmarking and Analysis: CBD
conducted a thorough competitive analysis of
several competitive organizations. Within the
context of this research, examinations included
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Delivering Clear Space in the Marketplace
The revealing moments that arose from phase
one gave the organization confidence that
AlphaGraphics was on the right path. Franchisee
research reveals that many of the business center
owners were eager to take the next step toward
providing their customers with additional marketing
services. And there were many different ways in
which an extended product offering would
change the perception of AlphaGraphics in
the marketplace.
Several AlphaGraphics business center owners
were excited to disassociate themselves from the
“copy shop” perception. In fact, they instinctively
knew that by being more consultative with
customers they would be elevated beyond ordertakers, and increase revenues. It was important
to them to look and feel more like a traditional
advertising agency than a quick-print center.
Some specific desires of current customers were
to get marketing support from AlphaGraphics
that would bring expertise and create stronger
partnerships. Customers felt that by proactively
managing the relationship and acting as a marketing
advisor, AlphaGraphics would be ideally suited to:
This also sparked a desire by AlphaGraphics’
center owners to deliver these enhanced services
via in-house capacity. Or, in many cases, have the
flexibility to choose how additional services would
be rendered.
• Increase their marketing effectiveness
• Engage in planning activity
• Provide full and quality-oriented project
management
Fulfill specialty needs such as:
- Automated lead management
- Continuity turnkey mailing programs
- Cross-channel local communications
At the same time, AlphaGraphics’ current customers
were excited to hear more about plans to offer
additional marketing initiatives. In research they
collectively said, “Tell me more.” They were clearly
giving AlphaGraphics permission to act more like
a marketing partner. Many customers couldn’t wait
to be approached and engage in more in-depth
conversations with their local service centers.
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Phase 2 – Strategy Articulation
Look to Key Insights to Unlock Smart Strategy
• Determine the optimal business and
delivery model
• Articulate the mission, vision and brand
position statement
• Explore and create consensus surrounding the visual look and feel of the evolving brand
• Develop the foundation of a brand implementation plan
After synthesizing the data gathered throughout phase
one, CBD and the core team continued to craft a
holistic strategy. Strategy articulation is a necessary
step prior to addressing evolving identity development
needs and building an implementation plan.
In this phase, AlphaGraphics sought to:
• Define the complete scope of products
and services that will attract and satisfy
target customers
Market What’s Meaningful Methodology: Phase 2 – Strategy Articulation
1. Data Synthesis and Analysis: The team synthesized all data gathered from the first
phase and developed key findings, impressions,
critical decision points, implications, and
recommendations for evolving the organization.
3.Business Model Mapping: Here the team
explored the viability of system-wide evolution
vs. tiered franchisee and center evolution,
implementation of centralized modular products
and services, and online delivery channels.
2. Image Development Exercises: CBD led a
series of interactive exercises designed to
help define parameters toward meeting branding,
communications and growth initiatives. The
primary focus was on AlphaGraphics’ vision,
goals, objectives … and who/what they wanted
the brand to be as it evolved. This process also
explored the markets currently being served as
well as new markets the company wished to
enter, and the desired interactions within each
market, along with its growth profile and
customer mix.
4. Vision Development: The core team worked
here to articulate the vision for the new business model through refining value propositions and
developing a mission statement. Brand promises
and values were rearticulated as necessary.
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Discovering a Unique and Ownable “Who”
Building the capabilities that would deliver on the
promise of expanded marketing communications
began with defining the areas of expertise
AlphaGraphics would offer and investigating
resources critical to implementation. By taking a
holistic view, with the focus on being a “quality
in communications” partner, the company
identified five key marketing needs to structure
services around: awareness, traffic generation,
lead generation, retention and cross- and up-sell
capabilities. For each of these, the team worked
to define:
During this phase of product development, a
think tank developed by AlphaGraphics’ CEO Kevin
Cushing convened to further investigate structural
opportunities that would drive new revenue. This
was an exciting and compelling opportunity to
gather together experts, representing different facets
of the industry, who could offer several unique
perspectives. The think tank concentrated on:
• Examinations of nonrelated businesses that
were growing in size and numbers
• Discussions of products or services that each
needed from suppliers which AlphaGraphics
might consider offering to increase its capacity
to grow and build value
• The services infrastructure
• Skills and resources in support of the
sales process
• Comparisons of other brands that have created
multiunit operations such as Express Personnel,
Subway, McDonald’s, etc. This conversation
focused on areas for operational improvement
and simplification of offerings
• Process and resources to support marketing customer service/execution
• Programs for the cultivation of expertise in
marketing disciplines
A direct result of the think tank’s activity was the
identification of repeatable and sustainable offerings
that AlphaGraphics could develop and apply to
several verticals.
In working to bring these specific products to
market, intense investigation was completed to
provide for needs such as technology, partners,
staffing and pricing. Certification from leading
marketing organizations and associations
specializing in strategic development, direct
marketing and digital marketing was also
pursued and made available network-wide.
After this phase was completed, CBD worked
to further refine and finalize the vision, mission
statement and value propositions, and prepare
them to be presented with the next set of brand
identity deliverables.
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Crafting a Cohesive Brand Experience – New Vision Statement
On a parallel path, CBD conducted national customer
research to uncover the strongest influencers/
descriptors that would help set the direction for
branding and communications development.
Customer responses helped to define the essence
of the new AlphaGraphics brand. Specifically, it
was determined that the brand elements needed
to communicate:
The cumulative result of determining the key
brand attributes, coupled with an understanding
of what customers were looking for in an
expanded relationship with AlphaGraphics,
fueled the development of the new vision
statement detailed below for articulating its unique
value to customers.
• knowledge/expertise
• contemporary
• professionalism/sophistication
• quality
• forward-thinking/progressive
• timeless
“ AlphaGraphics is the extension of your
business, marketing team and sales
department that improves the planning,
development, production and effectiveness
of your communications materials. We are
well versed in the most relevant marketing
methods to help you acquire new and better
customers and deepen relationships with
existing ones.”
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Crafting a Cohesive Brand Experience – Value Proposition
Following the articulation of the new vision, CBD
formulated a customer-centric value proposition
statement which acted as the foundation for market
differentiation and a go-to-market strategy:
AlphaGraphics partners with you to plan, develop,
and produce effective communications materials.
We’ve been a trusted extension of your marketing
production department for years. We know business
communications and how to optimize your marketing
materials spend.
We are the at-the-ready resource for all your business
communications needs, planning and development,
through production and delivery. AlphaGraphics can
efficiently customize a broad spectrum of marketing
and communications components relevant to the way
you attract and sell to customers. We’re your marketing
department, if you don’t have one—your marketing
department’s marketing department, if you do.
With a knowledgeable, reliable business communications
partner like AlphaGraphics, you can feel confident that
your marketing spend is working as effectively and
efficiently as possible, which allows you to focus on
other aspects of building your business.
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Phase 3 – Positioning and Identity
Elements That Ensure a Long Life for the Brand
Based on the new vision, mission, positioning
statement and value propositions, the next issue
addressed was brand identity. This phase drew
upon CBD’s deeper understanding of competitors,
the perceptions and needs of customers, and the
perspectives of franchisees. This step was also
informed by global validation. This phase of the work
involved the development of both clear space and
the foundational elements of the brand, including:
• Full differentiation from current competitors
• New corporate logo
• New corporate tagline that pays off enhanced communications capabilities
Market What’s Meaningful Methodology: Phase 3 – Positioning and Identity
2. Logo: On a parallel path, CBD prepared graphic
concepts to embody the new positioning and
tagline. At this time, CBD also presented the final
value propositions, vision and mission statements.
Collaboration and final approval of all materials
came from AlphaGraphics leadership.
1. Tagline: CBD created multiple tagline options for
AlphaGraphics to consider. Potential taglines were
fully researched and validated to be ownable, as
well as aligned with the organization’s capabilities,
promises, culture and business model. Via an
emailed survey, the top three taglines were
validated against a group of 20 top-producing
franchisees selected by AlphaGraphics. Feedback
from the franchisees was analyzed before CBD
and the leadership team collaborated to select
the final tagline.
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Evolution of the New Now
AlphaGraphics legacy logo
As discussed earlier, AlphaGrahics’ legacy logo and
tagline limited the organization from being able to
express its transformation. Where the old logo played
up the company’s original services, AlphaGraphics
wanted to play off the findings from their research and
develop a simple, yet progressive logo that would stand
the test of time and communicate both contemporary
and any product offerings still to come in our evolving
Marketing 2.0 world.
It was also critical that any change communicate an
evolution of, not a departure from, the company’s
established expertise.
To that end, early customer and prospect testing
indicated that the company had equity in its name, and
the emphasis on “AG” served as a representative of the
name. Customers also had a stronger connection and
affinity for the word “alpha” within the name than they
did for “graphics” which, in their mind, communicated
only print services.
These insights led to the development of the new logo,
which continued the use of red to emphasize “alpha”
while de-emphasizing “graphics” with grey. Customers
and prospects said the red portrayed a real sense of
strength behind AlphaGraphics’ transformation, while
the grey projected its image as a premium brand.
Other graphic elements incorporated into the new
logo included a sphere that visually communicates
AlphaGraphics’ worldwide footprint and holistic
capabilities. It also conveys AlphaGraphics’ ability
to offer its customers a full suite of marketing
communications solutions.
In addition to the logo change, the company simplified
and unified the names of many of its business offerings,
such as direct marketing, publishing and design
services, by using the well-known “ag” as prefix.
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Revealing the New Now – Today, Tomorrow and Beyond
Instead of literally listing AlphaGraphics’ capabilities,
CBD led the development of a tagline that would
resonate with customers and prospects charged
with creating marketing programs that contribute
to the bottom line.
These critical branding elements were vetted
through quantitative research to assess market
acceptance. AlphaGraphics, as well as the market,
largely embraced and felt positive about both the
new logo and tagline. In fact, across all criteria, the
new logo outperformed the old in communicating
intended brand attributes. And most respondents
immediately associated “increase your reach” with
marketing-related activities or business-building
results. What’s more, many respondents saw
additional benefits implied in “increase your reach,”
such as the ability to improve on what they do and
having access to more compelling ways to appeal
to customers.
This customer-centric approach to the tagline also
reflected the desire to ensure that all messaging
was benefit oriented. The essence of marketing
is problem solving, and the tagline was created
to emphasize AlphaGraphics’ role in helping its
customers find solutions and achieve goals.
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market what’s meaningful®
About CBD Marketing
CBD is a B2C and B2B marketing services agency that clarifies and articulates what’s most
meaningful about your brand, product or service, and helps you build more intimate and profitable
relationships with your customers.
At the heart of everything we do is a deep understanding of the rational and emotional drivers
that inspire your customers’ choices. At CBD, “market what’s meaningful” is our mission, guiding all
disciplines from research and brand development through media strategy, public relations and creative.
Let’s Talk!
To talk about how CBD can help you create moments that matter to your audience and better
connect them to your brand, product or service, please contact Doug Davila, Director of
Business Development at 312.661.1050 or [email protected].
About the Author
Liz Brohan, Co-CEO and President
As Co-CEO and President of CBD Marketing, Liz focuses on marketing as a brand strategy. Her
expertise is in helping executives better leverage marketing across an entire organization to drive
growth. Enabling corporations to adopt a more customer-centric culture and apply relevant strategy
is at the forefront of her work. Additionally, Liz contributes strategic marketing expertise in the
areas of brand development, positioning, strategic messaging platform development, and brand
revitalization for a broad spectrum of clients. With a passionate focus on customer-centric marketing
principles, Liz leads the development of successful acquisition and retention programs. Liz is an
active industry advocate and international speaker, and is frequently requested to address corporate
audiences in strategic sessions and leadership events.
54 W. Hubbard St. Concourse Level East Chicago, IL 60654
© 2011 CBD Marketing, Inc.