You are viewing Aaker on Brands blog posts from June 4, 2014 through August 6, 2014. You can also view the most recent posts.
In my latest book, Aaker on Branding, I assert that the only way to grow (with rare exceptions) is to innovate through creating “must haves” that define new subcategories and then controlling and actively managing those subcategories going forward.
Yoplait’s Go-Gurt provides an exceptional case study to support this assertion. Go-Gurt was introduced in 1999 as a unique, snack-style yogurt for kids. It was a yogurt product delivered in a colorful nine-inch tube that was designed to deliver portability (like their advertising said, “Lose the spoon!”), appealing flavors (Berry Blue Blast and Watermelon Meltdown, to name a few), and fun for kids to eat (What could be more fun than slurping your food?).
Prior to the launch of Go-Gurt, there was a history of a very stable market-share structure…
August 6, 2014 • Permalink
While much attention is paid to building brands, too often the brand portfolio is neglected. The result is marketplace confusion, paralysis in naming new products, under-supported brands and misallocation of brand-building resources. We need to better identify brand roles and, more particularly, distinguish between the strategic brands and their roles.
A strategic brand is one with strategic importance to the organization. It is a driver of reputation, differentiation, loyalty, sales and cash flow. Identifying your strategic brands will be a huge step toward insuring that brand-building resources are not misallocated.
In general, there are four types of strategic brands:
Current power brands
Current power brands will be the ones currently generating significant sales and profits and projected to maintain or grow their position. Large dominant brands such as Microsoft Windows…
July 30, 2014 • Permalink
This month, my 18th book comes out: Aaker on Branding: 20 Principles that Drive Success. It is a compact description of some four dozen branding concepts and structures that have been developed and used during the “branding” era extending back a couple of decades.
But in this new digital era, why would anyone write even one book, to say nothing of my many? There is so much pain not only from writing the first draft but also the production and marketing as well. My answer has nothing to do with the money.
First, I like the process. I like pulling together parts of a bigger puzzle, seeing a structure evolve, creating and refining concepts, finding good stories, and revising and improving. I also like the communication phase, when…
July 23, 2014 • Permalink
Just when you think you have an offering innovation that powers a meaningful differentiation, a competitor brand copies you. Or, worse, appears to copy you.
But what a competitor brand cannot copy is an organization—its people, culture, heritage, programs, assets and capabilities— because each organization should be unique and enduring. There are dozens of organizational values to implement in order to differentiate, but six keep resurfacing as driving forces:
A basic organizational function is to create offerings that consistently deliver high quality with respect to their brand promise. Perceived quality is a key consideration in nearly every context. A distinction is made between the argument that an offering is of the highest quality, and the more general claim that the organization so values and rewards high quality that it will ensure that of all its…
July 16, 2014 • Permalink
When it comes to brand-building programs quality should come before budget concerns. It is worthwhile to spend a significant proportion of a brand-building budget on finding truly effective brand-building initiatives. The chances of finding brand-building home runs will be higher if one or more of these methods and perspectives are used:
External role models
Find an organization that has successfully addressed a similar problem or task and adapt what they did. And don’t limit the search to those organizations that look like your own – be willing to look more broadly. A retail bank with a broad array of financial services that aspires to provide a trusted adviser role might look to Home Depot as a role model. Home Deport has launched numerous internal and external programs that allow the brand an approachable, knowledgeable friendly face.
The brand experience
July 9, 2014 • Permalink
Sometime in the late 1980s, an explosive idea emerged that brands are assets, have equity and drive overall business strategy and performance. That idea altered perceptions of what marketing does, who does it, and to what end is its purpose. It’s also the focal point of the first chapter of my latest book, Aaker on Branding. It truly transformed marketing, comparable in impact to other transformational ideas that have appeared in the last century such as mass marketing, segmentation and globalization.
When firms adopt this asset view of branding, marketing is no longer perceived as a tactical arm of the business run by middle and lower-level managers (or an outside agency) in order to generate short-term sales for a single brand, offering and organizational unit.
Rather, marketing is seen as:
July 2, 2014 • Permalink
There is a classic, sometimes intractable, problem for many luxury brands. The brand is losing exclusivity and product differentiation, and its customer base is getting older. How do you maintain relevance and energy with the younger segment given that big innovation is difficult and your brand needs to look and feel prestigious – so you can’t be too wild and crazy?
Burberry is a luxury brand that in the last 10 years addressed such problems and more. They faced common problems: an image issue because of being over-licensed, dealing with off-brand products, and being available at inappropriately low prices. It is a role model for others that would like to do so. Credit is largely due to former CEO, Angela Ahrendts (now SVP of Retail and Online Stores at Apple) and Christopher Bailey, Burberry’s Chief Creative and Chief Executive Officer.
The sheer quantity of initiatives Burberry launched…
June 25, 2014 • Permalink
What do marketing professionals really care about? What’s on their wish list? The Marketing Science Institute (MSI) is a consortium of over 75 major firms from all industries that provide an interface between practitioners and academics. Every other year, the MSI goes through a process to identify the priority issues marketing practitioners are facing in order to provide guidance to academic research. The 2014 results are out.
There are two tier one issues, five tier two issues, and four tier three issues.
Understanding customers and the customer experience
What behaviors have emerged in the multi-media, multi-screen and multi-channel world? How has social and digital changed the customer experience and path to purchase? How should customer engagement be defined and measured? How does social media create engagement? What methods provide insight?
June 18, 2014 • Permalink
The concept of storytelling is one of the hottest topic in marketing today. By communicating a narrative that has a beginning, an end, emotions and facts, brands are able to become more human and more compelling.
Both research and common sense tell us that when facts are put into story form they are powerful because stories are more easily remembered. When facts are embedded into a story, counter-arguing is less likely because the power of the story distracts. When an argument is in a story context, people deduce the logic themselves and we know, again from research and common sense, that self-discovery is much more powerful that having people talk at you. Lastly, and perhaps most importantly, a storyteller is usually more liked than one attempting to persuade an audience with facts.
June 11, 2014 • Permalink
In the future, branding and business in general is going to involve more subcategory creation and competition and less “my brand is better than your brand” competition. This is because, with rare exemptions, that is the only way to achieve real profitable growth. In category after category, real growth results not from market share increases, but from brands that have created a set of “must haves” that define a new subcategory and then manage that subcategory by becoming its exemplar. These brands continue to innovate and create a moving target. By managing the perceptions and attitudes toward the subcategory, the subcategory wins.
I’ve previously discussed in my blog and my book, Brand Relevance a host of examples of brands that have created subcategories and won a subcategory battle. The Chrysler minivan, Asahi Super Dry, Enterprise-Rent-a-Car, Muji (the no-brand retailer), Patagonia, Zipcar,…
June 4, 2014 • Permalink