Marketing Pyrite

Pyrite, often called "fool’s gold," fooled many gold seekers with its shiny appearance. Just like pyrite, brand awareness can trick marketing managers into thinking it's more valuable than it is. One brand that everyone knew was Marlboro, but even with all that fame, it couldn't keep its prices up. Marlboro focused so much on getting its name out there that it forgot to make its products better. By the 1990s, Marlboro was losing its edge.

In contrast, let's look at Harley Davidson. They made $600 million in 2000 just from selling parts and accessories, which was a big bonus on top of their $2.2 billion in motorcycle sales. Harley Davidson lets customers keep customizing their bikes, keeping the excitement alive. Unlike Marlboro, they know change is key to staying on top.

The story of Harley Davidson and Marlboro shows us that brands need to adapt to survive. If they don't, they become just like any other product, with no special value.

The Starbucks Way

Coffee used to just be a thing you bought, but Starbucks turned it into something bigger. Instead of spending a ton on ads, they focused on making their stores look nice, their cups cool, and spreading the coffee love everywhere. Starbucks made sure every cup felt the same, no matter where you got it.

A brand isn't something you can touch, but it's everything you feel and think about a product. Take Tylenol or the Exxon-Valdez disaster, for example. It's not just about the pills or the oil spill; it's about how you feel about them. To make a strong brand:

• Know what your brand is all about and defend it.
• Use your smarts to make your business better.
• Connect with people's hearts, not just their wallets.
• Fight hard to keep your brand awesome.
• Use being big to your advantage.
• Make sure your company's vibe matches your brand's values.
• Treat your brand like it's your baby.

Prioritize Understanding Before Success.

In 1987, Nike was in trouble. They didn't take Reebok seriously and paid the price when consumers flocked to their rival's shoes. Nike was left behind, even trailing Adidas. They had to figure out who they were by asking:

1. What's our goal?
2. What do we want to be?
3. What steps do we take next?
4. How do we know we're succeeding?

Nike was known as a tough shoe brand mainly for male athletes, with very few women in top positions. They were leading in the U.S., but then Reebok took over. Nike's sales dropped by 25%, leading to laying off 20% of their employees. Tough times hit hard. Every brand has its unique identity, like its DNA. This "mojo" gives its strengths and weaknesses. Nike never liked bureaucracy and planning, but now, being so big, they needed a common goal. Inside the company, different groups fought to define its direction. Some said Nike should focus on making top-quality shoes for athletes, while others had different ideas. Shareholders wanted growth, but Nike already dominated sports, leaving little room for expansion. Meanwhile, consumers wanted shoes not just for sports but for everyday wear and fitness.

Nike had to adapt to meet the needs of all its customers. To achieve this, they decided to transform into a "sports and fitness" company. They introduced the famous "Just Do It" advertising campaign to show that their products were for everyone.

The challenge with brand research

Nike's approach to understanding its brand was different from typical market research. Instead of drowning in numbers, Nike focused on how people felt about their brand. They didn't care about reactions to ads but cared deeply about overall brand perception. They created a Brand Strength Monitor (BSM) to gauge this. The BSM divided Nike's market into four groups: young males aged 13 to 18 and 25 to 34, and females in the same age brackets.

They interviewed these groups during key sales seasons to understand customer impressions. What they found was both good and bad news. Their core customers were young males, which was great, but it also meant they risked too much by relying solely on this group. So, Nike shifted its focus to understanding how customers felt about the brand, shaping their strategies based on these insights.

From Coffee Beans to Memorable Experiences 

Research conducted at Starbucks found that when people think of coffee, they don't just think about beans and hot water. Instead, they associate coffee with the overall experience it provides. The heart of the Starbucks brand isn't just about serving great coffee; it's about consistently delivering a fantastic coffee experience. The mantra that emerged for Starbucks was "Rewarding Everyday Moments."

Brand message

A brand mantra is different from a slogan. It's like the core DNA of a brand. Take Nike, for example. Their brand mantra is "Authentic Athletic Performance." Once, Nike used male models who didn't golf properly in a golf catalog shoot. That was a big no-no because it didn't match their brand mantra. "Athletic" helps Nike say no to things like loafers, while "performance" keeps them focused on quality, even if it means passing up cheaper options.

Sometimes, brands need a makeover to remind people what they're all about. Michael Eisner did this for Disney, sticking to their motto of "Fun Family Entertainment." Bob "Guts" Lutz pulled off a similar feat at Chrysler by introducing the Viper. And when Steve Jobs returned to Apple, he revived its original spirit with the iMac – sleek, simple, and daring. Volkswagen also caught onto this trend with the New Beetle, capturing the playful essence of the classic Beetle.

Don't dilute your message's impact

Be careful of three big blunders you could make: watering down the brand, messing up the brand, or leaving the brand stagnant. By spreading stores all across the U.S., Starbucks risked watering down its brand. Starbucks became more common, and if not handled right, it could have become less special. Messing up the brand would've occurred if it hired unskilled staff just to meet expansion goals. But staying still would've been a mistake too. There's always a struggle between growing and keeping the brand strong.

Starbucks faced a tough choice when United Airlines wanted to team up to improve its coffee for frequent flyers. While the deal had perks, Starbucks worried about keeping its quality and brand intact. Eventually, they agreed, but only after getting guarantees and protections to safeguard their brand. This kind of teamwork is smart for growth.

Other smart growth strategies include:

• Brand extensions: Like how Teen People spun off from People magazine. But every brand has its limits and can break if stretched too far.
• New channels: Starbucks now sells through different kinds of stores.
• New product types: For example, Caterpillar making boots or Arm & Hammer making toothpaste. But be careful not to stray too far from what your brand is known for.
• “Sub-branding”: For instance, Lexus is owned by Toyota but has its own identity.
• Acquire: Sometimes it's better to buy a company than start from scratch. Like when Chrysler got Jeep by buying American Motors.

These strategies help businesses grow smarter and stronger.

Three Rules Apply

1. Levi Strauss revamped itself but missed out on keeping up with the Gap. Big mistake.
2. When cutting costs, don't sacrifice the brand's quality.
3. Every effort is different. One win equals just that - one win.

In business success, it's about more than just the product.

Harley Davidson motorcycles are awesome, right? But did you know their success story wasn’t always smooth? Back in the early 1980s, they were struggling big time against Japanese competitors taking over the market. It was tough. Harley's tough-guy image had its perks, but it also kept some folks out. But here’s the cool part: they turned it around! How? They figured out their brand wasn’t just about being rebellious—it was about being part of something special. You see, Harley isn’t just a bike; it’s a feeling, a community. People love it so much they even tattoo the logo on themselves! Harley realized this and kept their production limited, making owning one feel like joining an exclusive club. And that’s what made all the difference.

Guinness is a great beer, but their Irish pub giveaway contest isn't just about beer. It's a test of literary skill, pouring pints, and being friendly. Pepsi had a famous campaign in the '60s called "Pepsi People," which wasn't really about the soda. Companies like MontBlanc, Snackwell's, and MasterCard also focus on the connection with customers, not just the product. It's not about what you're selling, it's about the bond you create!

Focus on specifics, keep it brief

Every little thing matters when it comes to building a brand. From the colors and flavors to the vibes and influences, it all adds up. Paying attention to these details is crucial. Mickey Drexler knew this well, and it's why he transformed GAP into what it is today. Some might call him a bit of a control freak, but really, that's a compliment. Brands need constant care, like kids. They need good parents—brand managers—who will steer them in the right direction, shield them from bad influences, and help them grow. It takes time, just like raising a child. But with the right guidance, brands can flourish. That's where Chief Brand Officers come in—they're like the brand's guardian angels, shaping its identity and nurturing its growth.

Remember, being big isn't always a bad thing. Sure, big companies often toss around insults like 'Goliath,' but being big allowed Starbucks to give its employees benefits that small coffee shops couldn't match. Use your company's size to make your brand stronger, but always make sure your brand gets the credit for the good things that come with being big. When it comes to building your brand, whether you're big or small, keep it simple, relevant, and human.