Personal Investing Advice

Diamond and Madonna each sing to a generation, connecting the values of their fans with their own values. Both sing about love and relationships (don’t they all), but they approach them from different perspectives-Madonna sings from a contemporary, tough, femalepowered, “I’m in charge” point of view, and Diamond in a sensitive, old fashioned, “I’m in love” tone. Their values appear in the lyrics and mood of their songs. Listen to Diamond’s hit single “America” and you can feel the emotion with which he sings about immigrants, like his grandparents, arriving on our shores via boats and planes to find “freedom’s light, burning warm.” Madonna’s Life in America album is anything but patriotic, causing fans and audiences to protest the original version of the video, in which a grenade blows up a George W. Bush look alike. Whereas Madonna seems to seek out controversy, Diamond shuns it, living and performing in ways that spotlight mainstream values.

Believe it or not, the underlying commonality between these two performers is sex-more specifically, their sex appeal among fans.

Though you hear more people use the words sex and Madonna in the same sentence, watch the reactions of the women at Diamond concerts, and you’ll find that sexiness or sexuality is at the top of their collective minds. Diamond’s sex appeal is different from Madonna’s, but it exists nonetheless, and just as passionately for the women who share his definition of sexiness. Both performers demonstrate that sex sells, at any age. Just ask the folks who regularly bring sex to your mailbox-Victoria’s Secret.

“That’s why I’m still on tour,” he says. “It’s more than playing music for people and having a good time. There’s an emptiness out there, and I believe I can do something about easing that pain.” The Anti Madonna Diamond and Madonna address branding in very different ways.

Whereas Madonna focuses on constant evolution and change, Diamond’s brand promise is not to change. Not one to follow the latest trend, instead he defines what Time magazine calls the “Bandmaster of the Mainstream.” Chalk it up to the familiarity of his voice and music and the simplicity of his lyrics and style, he provides an emotional safe haven for many generations of fans, especially in times of uncertainty and unrest.

Simplicity is a key concept in understanding Diamond’s mass appeal; it also is a primary reason some products are propelled to mass acceptance and others are not. Research indicates that the more complicated a new product or marketing message, the less likely consumers are to adopt it. Complexity intimidates customers, often keeping them from trying something new. In addition to fearing that they will not understand it and will therefore feel stupid, they also don’t want to invest the time they perceive it will take to understand and use the product. In a nation in which half of the VCR clocks still flash 12:00, simplicity rules have affected the acceptance of technology options from microwave ovens to quadraphonic sound. The same holds true for branding and marketing messages. Ease or difficulty in understanding the basic benefit of a product and its relative advantage over competing options is the single most important determinant of new product success. Add complexity, research indicates, and the probability of failure increases dramatically. Simplicity sells to mass markets, whether the brand is a musician or a cheese.

As at an Elvis show, you can’t be in a bad mood while jamming at a Neil Diamond concert. There’s the innocence of his music, his infectious passion and energy, and the communal emotional ride taken with thousands of fans. Emotions ran high during his Three Chord Opera world tour, which began on September 28, 2001, in Columbus, Ohio, soon after the September 11 attacks, and traveled to 90 cities in 16 months. Following the tragedy, many performers canceled performances out of respect for the victims and their families. Some bands, however, decided to continue their tours, recognizing that many people felt the need to bond together, explaining in part the popularity of this Diamond tour. The Irish rock band U2 in fact, decided not only to keep its Elevation tour on track, it actually added nine shows to its lineup. Ask fans today, and they’ll tell you that U2’s decision to play to heal the nation made them even greater fans of the band.

Neil Diamond took a similar approach. His values are American values personified, evidenced in particular by a special tribute to New York City firefighters and police (with a moving rendition of “He Ain’t Heavy, He’s My Brother”) and the unfurling of an American flag to the rousing refrain of his hit “America.” He captured the mood of the country, and audiences responded with tears of patriotism, sorrow, and pride. In Canada, he added two Canadian flags to the stage and talked about “neighbors joined at the border.” Diamond tells reporters that people want to get out and away from the television set and the dire news that constantly confronts them.

Toward the latter part of the decade, he wrote and recorded “You Don’t Bring Me Flowers,” which Barbra Streisand recorded separately. A bold DJ spliced the two records together and listeners loved it, prompting Diamond and Streisand to rerecord the song as a duet, which became an all time best seller for both stars.

Diamond expanded his reach in 1980, starring alongside Sir Laurence Olivier in the film The Jazz Singer. (He also appeared in another movie in 2001, Saving Silverman.) While Diamond’s thespian abilities didn’t threaten the careers of other actors, his musical career was reinforced by the soundtrack’s massive sales and appeal. He released numerous hits throughout the 1970s and 1980s, from “Forever in Blue Jeans” to “Heartlight,” which was inspired by the blockbuster movie E.T., but he occasionally disappeared from the recording scene. He explained to reporters, “I wanted to spend time with my family.”While of late this has become a euphemism in the business world for “I feel I’ve failed,” or “I’m completely burned out,” in the case of Neil Diamond, it’s actually very believable.

The Tour Master Diamond’s continued success stems from his brilliance in the touring game. Clad in sequins and black slacks while his fans are “Forever in Blue Jeans,” his concerts have evolved to deliver what his fans expect- a blast from the past sense of nostalgia, great quality music, and a string of sing along songs packaged in a Vegas like production.

Though many members of his band have been with him over 25 years, the digital equipment and technology used to deliver the high quality staging and sound are state of the art.

Creating the Sparkle Neil Leslie Diamond (yes, that’s his real name) was born on a cold Brooklyn night on January 24, 1941. His cultural roots stemmed from Russia and Poland, birthplaces of his maternal and paternal grandparents. Young Neil grew up with American core values and the discipline of a father who served in the U.S. Army. A New Yorker through and through, he moved to Cheyenne, Wyoming, in 1945, where his father was stationed in the Army, exposing him to the rest of America. After military service, the family opened a dry goods store in Flatbush, eventually moving the business and the family home to Brooklyn’s Brighton Beach. Diamond learned in his early years about patriotism, a disciplined approach to delivering a quality product, family values, and a practical understanding of business, all of which he arguably brings to his music career.

His musical journey began with the guitar he got for his sixteenth birthday and continued through singing with his high school’s choral group. In 1958 he wrote his first song, “Hear Them Bells,” as a tribute to the girl he later married in 1963. Perhaps his discipline and stage presence were affected by his acumen in the sport of fencing, which earned him a fencing scholarship at New York University, where he enrolled as a premed student. But his love for songwriting, and his lack of love for organic chemistry, lured him to leave college 10 credits short of graduation to take a job as a songwriter with a publishing company. Diamond says he never regretted that decision.

Like many singer songwriters, he struggled in the early years. He first appeared in 1960, while still attending NYU, at the Little Neck Country Club on Long Island, but it took until 1965 for Diamond’s reign in rock and roll to begin. The string of hits that ensued read like a modern day musical timeline (feel free to whistle along as we recap just a few). In 1965, Diamond the songwriter penned the hit “I’m a Believer” for the Monkees, and Diamond the performer released his own top 10 hit, “Cherry, Cherry.” Incorporating gospel and country sounds to give his music more emotional content, he overwhelmed his fans, and in turn they gave Diamond two million selling records, “Sweet Caroline” and “Holly, Holy.” “Cracklin’ Rosie” was his first number one hit, followed in 1972 by another number one smash, “Song Sung Blue.” In 1973, he signed with Columbia Records, releasing Jonathan Livingston Seagull, which became his number two alltime best seller and earned him Grammy and Golden Globe awards.

Now, compare that to Velveeta. Kraft certainly doesn’t have to do a lot of advertising for this product. It has its place in Americana, and it coasts merrily along on that sea of repeat purchases. When it comes time to replenish the Velveeta supply, what do consumers write on their shopping lists-processed cheese loaf or Velveeta? There really is no substitute. Its popularity is partially about consistency, but occasionally Kraft will shake it up a bit with innovations like Picante Velveeta, which, like Diamond’s new releases, is the same basic product consumers love but with a little kick. It’s a fact that Kraft sells tons of Velveeta, but Velveeta fans tend to be of the closet variety rather than an in your face breed.

Closet fans can be challenging to marketers. Their tendency is to be loyal but not to evangelize-a major benefit to companies that create fans. Hormel’s blockbuster brand, Spam, had a similar positioning. Thousands of people ate it, but not many wanted to admit it.

But with a tongue in cheek approach, the company launched a marketing and branding campaign that let people laugh at the product and the fact that they liked it. In essence, the company made Spam cool-or at least as cool as canned, processed meat can be. Now there are Spam cook offs, Spam recipes, Spam hats and T shirts, and Spam fans, who not only are out of the closet but are proud to shout their adoration for the stuff in the blue can.

Diamond established himself as part of the mainstream. Like Velveeta, he has capitalized on his place in American culture, reaping the financial rewards of doing something well and sticking with it.

Examining the brilliance of Diamond’s career uncovers some of the same values and marketing strategies that some of the world’s most enduring brands have used to stay profitable for decades. Those lessons include: S Connecting with a market segment and moving with it S Creating and maintaining emotional connections based on nostalgia and the comfort of familiarity S Understanding how values affect product, marketing, and management decisions.

The Neil Diamond product and marketing approach creates a musical brand that mirrors several successful consumer product brands. One in particular comes to mind-Neil Diamond is the Velveeta cheese of the world of rock and roll. And before all of you Diamond fans get your feathers too ruffled, let us explain. Upon announcing a tour, Diamond doesn’t need to rely on mass advertising to get the word out and sell tickets; word of mouth among fans does the trick. When you attend one of his concerts, you know what to expect; unlike KISS, there won’t be a lot of surprises, pyrotechnics, or fire breathing. There’s only one Neil Diamond, and people know his brand well. His new albums are likely to sound like those of the past, which is pleasing to most of his fans, yet he does release new material occasionally to keep in touch with them and keep them engaged. While we know legions of devotees exist, you might be hard pressed to find many who’ll fess up to being die hard Diamond fans. For most of the 50 and under group, such admittance seems a bit too schmaltzy, classifying Diamond more as someone their parents should like. Yet, when his tour hits their vicinity, these boomers will go-and, more important, they’ll love every minute they are there.

The music industry may not get very excited about Diamond, but his fans do. When it comes to concerts, fans snatch up tickets with lightning speed; consequently, he outpaces and outsells many of his younger, hipper, and sexier counterparts. Some industry trade publications report that Diamond was the biggest solo touring act of the 1990s, due in part to an appeal that cuts a wide demographic swath of ages and musical tastes. His 2002 tour generated $52 million in cities, making it the fourth largest tour of the year. From his first hit, “Cherry, Cherry,” in the 1960s to his most recent, “Three Chord Opera,” fans have rewarded him with 60 hits, 38 of them in the top 40. He even inspires Neil Diamond imitators-both black and white versions-in numbers that rival those of Elvis. Tribute bands, the musical equivalent of supermarket private labels, are found across the country, playing and singing Diamond songs in venues including Las Vegas, Nevada, and Branson, Missouri.

Attend a Neil Diamond concert and you may think you’ve walked into an aerobics class for 60 year olds. But amid a sea of gray hair are plenty of young people, often a bevy of young ladies in the first row, singing along and shouting their adoration. Don’t tell these women Diamond isn’t sexy-to them he’s very sexy, but in a conservative, wholesome, safe, non Madonna like way. Men and women alike enjoy singing the songs they’ve come to love, swaying to romantic ballads, clapping to patriotic tunes, and gyrating to 1970s style pop classics. From the stage, the 62 year old songster holds his fans in his hands, getting the respect that a career spanning four decades deserves. Though he may be far less sexual than Madonna, his stage presence, talent, and values make him just as sexy to masses of consumers. One could argue that Madonna and Diamond are two sides of the same coin.