You are viewing Aaker on Brands blog posts from September 17, 2014 through December 3, 2014. You can also view the most recent posts.
In my books, Brand Relevance and Aaker on Branding, I argue that the only way to grow, with rare exceptions, is to engage in big innovation to create customer “must haves” that define new subcategories, and then grow and own those subcategories. In most cases, there is not one “must have” but several, as my recent analysis of Uniqlo’s success illustrates.
Tesla is another such success story. It created eight “must haves” to define a new subcategory, made it grow and planted the seeds of enduring success. Those “must haves” include:
Tesla created technology advances that resulted in real, credible superior performance. The performance can be felt when driving the vehicles, but there are also other proof points. Consumer Reports rated the Tesla higher than any other car ever reviewed, and several automobile publications such…
December 3, 2014 • Permalink
Each year, HUB Magazine honors excellence in the brand experience. With well over a hundred entries, approximately 37 judges (including myself) determine who has excelled. The criterion is not market response, but rather how the brand lived up to its promise and whether it improved its customer’s daily lives in ways big or small.
Of the 12 gold medal recipients, four stood out in my mind as being particularly noteworthy. All had a modest budget but were unique, innovative, new, involving and represented the DNA of the brand.
Coca-Cola South Africa: A Rainbow for the Rainbow Nation
November 19, 2014 • Permalink
I have written that the only way to grow, with rare exceptions, is to create breakthrough offerings with a “must have” that defines a new subcategory and then to manage that subcategory so that your brand is the most relevant option. A “must have” is some offering association, such as a higher purpose, a program or benefit that customers will insist on.
If you look at virtually any product arena over decades two things become clear. Growth spurts within the marketplace are driven by substantial or transformation innovation from whole new subcategories, and they are remarkably rare. Despite that reality, it turns out that most brands focus on incremental innovation.
Most companies seem to be happy for singles – they don’t try for home runs very often. Why?
One reason is that it is hard to come up with “must have” options. It requires a combination of a market need, enabling…
November 12, 2014 • Permalink
I was recently shopping at the Uniqlo store on 34th street in Manhattan and was blown away by the quality and styling of the clothing, the store size and product scope, the presentation, the breathtakingly low prices, the service experience, the innovations and the energy. How did Uniqlo pull that off? And why has Uniqlo experienced dramatic profitable growth over two decades?
In 1994 it had approximately 100 stores in Japan. In 2015, it will have 840 stores in Japan and 1,170 stores outside of Japan, 820 of which are under the Uniqlo brand (and another 270 under the GU brand, which is a low-priced version of Uniqlo). In fiscal 2014 it will continue a sharp sales trajectory with sales around 14 billion dollars becoming a top five global “own brand” clothing retailer.
First, Uniqlo has a clear vision of its brand to provide high quality, performance-enhanced, basic casual…
October 29, 2014 • Permalink
What is your higher purpose? Sales and profit goals can no longer be the prime motivator if they ever were. In my book, Aaker on Branding I note that more and more brands have a higher purpose that is meaningful. It is increasingly becoming more about “why” in addition to “what.”
A higher purpose can provide inspiration, an aspirational goal, a work-together logic, respect, a motivation for social programs and paths to growth. In particular, it can:
P&G’s purpose to improve the lives of the world’s consumers, now and for generations to come elevates the work experience of all employees. General Motors’ passion for “earning customers for life” affects employee decisions on a day-to-day basis.
Set a high aspirational performance bar that can stretch the organization
Apple’s Steve Jobs famous mission to create “insanely…
October 22, 2014 • Permalink
It’s no news that the NFL is in crisis-mode due to evidence of mishandling cases of spousal and child abuse as well as a recent report stating that football has led to dementia in 1/3 of their players. If the damage to its brand is to be controlled, the NFL needs a new commissioner.
First, the public will likely assume that current commissioner Roger Goodell, who has spent his whole career in the NFL office, is not the best person to create solutions. There are those that believe he lacks fresh eyes, he is too tied to the underlying culture that spawned the problems in the first place, and because of the perception and probable reality that he has too little independence from the owners.
Second, the retention of Goodell sends the signal that the NFL is not holding anyone accountable and thus is not serious about making basic changes that are necessary. As a result, any sets of programs…
October 15, 2014 • Permalink
Test your organization by asking employees two questions. What does your brand stand for? Do you care? If employees are unsure of the brand vision or don’t care, there is little chance that you will successfully implement your business strategy.
There are several benefits to having a strong internal brand.
A clear, compelling internal brand provides direction and motivation to employees and partners. People and teams will be more likely to know if a decision or program is “on-brand” if the internal brand is successfully communicated. The internal brand can inspire employees to find and implement creative, breakthrough brand-building programs, to stretch for a “big” idea. An employee base that is energized by a strong brand will be motivated to talk about the brand to others on social media and elsewhere. A solid brand, especially one with a vision that includes a higher purpose,…
October 8, 2014 • Permalink
There is a compulsion to focus in on functional benefits. It comes perhaps from the legacy of the Rosser Reeves unique selling proposition that brought us the candy that “melts in your mouth instead of your hand.”
A functional benefit is appealing. Our instinct, especially if we reside in the high tech or a B2B sector, is to assume that customers are rational and will be swayed by functional benefits. Further, when asked why customers buy this brand or avoid that one, we assume they will give functional reasons. The resulting insights often have an inordinate influence on strategy.
But we have too much evidence from behavioral economists and market researchers that shows customers are far from rational. We see it every day. Even an airline, when buying a plane, will in the end be influenced by their gut even with piles of proposal details in front of them. In most contexts, customers…
October 1, 2014 • Permalink
Should you write a book? Could you write a book? What is involved? I’ve frequently been asked such questions and the answers are maybe, definitely - and more than you might think. After finishing my 18 book, Aaker on Branding, I thought about the book writing journey and concluded that there are three distinct steps that it includes. Each requires a different set of motivations and skills:
Step 1: The Topic
When I set out to write a book, first I work toward finding an umbrella topic based on a central idea or set of related issues and concepts. To do that, I look at several criteria:
It should capture my interest. This may seem obvious, but writing a book takes a serious amount of time and effort. I must enjoy the process of pulling together the concepts and case studies to support my topic in order to make that process worth the effort. It helps to have a higher purpose.…
September 24, 2014 • Permalink
Last March, Buick started to run an advertising campaign centered around the point that people don’t recognize the new Buick models because they are so fixated on their preconception that Buicks today must be like the Buicks of a decade ago. In one ad a valet couldn’t find a Buick even though it was right in front of him. When he got in, he was clearly impressed. In another a young woman stands on the street craning her neck for the Buick that’s supposed to pick her up, looking right past the shiny Encore parked right in front of her. The tagline is “expectation-shattering.”
The campaign is a brilliant effort to attack a vexing relevance issue that is all too common. It happens when your brand is not considered and is simply ignored. Buick executives believe the campaign is enabling Buick to extend the brand’s remarkable sales success. It’s seen a 13% increase in 2013 and has continued…
September 17, 2014 • Permalink