I keep hearing these rumblings about brand commoditization. The fact is, this is a never ending reality; no matter how hard a brand works at trying to be different, competitors are waiting to copy their strategies and cash in.
Just look at Starbucks. Starbucks transformed how we think about coffee, and they experienced tremendous growth because of this. But by 2007, this focus on growth led to a watered down experience where efficiency was emphasized over the theatre and romance of the “Starbucks experience”. In jumped McDonald’s, Dunkin Donuts, Caribou, etc. to capitalize on Starbucks’ missteps and commoditize the market. [Thanks to Kirk@BrandStoke for this example]
There is no doubt about it, copycat marketing is the source of this commoditization. Too many marketers are using the same process and strategies, creating a world of look-a-like products and feel-a-like brands. Thus creating a nightmare world for marketers, a society of consumers who buy on price.
However, all is not lost. Consumers continue to be willing to pay a premium for brands that offer something more than their competitors. I’m not talking about greater value, better product quality, or more features; this “something” is the intangibles. Today’s consumer gravitates towards brands that have a certain characteristic about them.
What is this characteristic? Check back later this week to find out.
I love this video of The Coca-Cola “Happiness Machine”. It serves as a reminder that there is always room to make your brand remarkable, regardless of your industry. A pleasant surprise never fails to create excitement and positive word of mouth from your customers.
MUJI is known for their distinctive, minimalist design.
Branding is about creating an emotional connection with your customer. This is done through communicating your brand message; clearly laying out how your product is different from competitors. Differentiate or you die, this is biblical truth.
But what happens to a brand that doesn’t believe in “branding”?
Meet the Japanese retailer MUJI, whose name translates as “no label, quality goods”.
From MUJI’s website:
MUJI is not a brand whose value rests in the frills and “extras” it adds to its products.
MUJI is simplicity – but a simplicity achieved through a complexity of thought and design.
MUJI’s streamlining is the result of the careful elimination and subtraction of gratuitous features and design unrelated to function.
MUJI, the brand, is rational, and free of agenda, doctrine, and “isms.” The MUJI concept derives from us continuously asking, “What is best from an individual’s point of view?”
MUJI aspires to modesty and plainness, the better to adapt and shape itself to the styles, preferences, and practices of as wide a group of people as possible. This is the single most important reason people embrace MUJI.
In its deliberate pursuit of the pure, the ordinary, and the “no-brand”, MUJI has ironically become a global brand. This is a flawless execution of blue ocean strategy; with feature and brand driven marketing at an all-time high, MUJI did the opposite. This strategy has given their brand an energy that not only differentiates MUJI, but makes the brand irresistible.
Captivating, the one word that describes this spot for the Acura ZDX.
The reason is simple, this ad appeals to the viewer’s emotions. By themselves, the catchy music, attractive woman, and filming technique offer little emotional value. But together, they create a certain synergy, offering a seamless message that compels a sense of captivation and awe.
What emotion did you feel while watching this clip? Did you notice Carnegie Hall in the background (implying sophistication and elegance)?
The web has been all abuzz the past 24 hours about Apple. But people are’nt talking about the upcoming Macworld; rather, rumor has it that Apple is set to replace Google as the default search engine on its iPhone with Bing. You read that right Bing, as in Microsoft’s search engine.
Seen as allies throughout the last decade, Apple and Google now find themselves fighting for the same slice of the pie. Google’s emerging product offerings- such as Nexus One, Chrome OS- makes them Apple’s enemy number one, displacing Microsoft.
So with Apple and Google bound to duke it out, why in the world would Microsoft throw Apple a life raft? The answer is simple; Microsoft needs Apple. Just like Coca-Cola and Pepsi in the soda industry, this intense rivalry between Apple and Microsoft is what has made the two empires what they are today. Here’s how:
They compete on brand, not on price. This has created substantial barriers to entry and kept profit margins intact.
Created a drive to win the rivalry; this has improved both Apple and Microsoft’s overall performance by keeping them aggressive, creative, and flexible.
Branded competition has developed user loyalty. Are you a Mac or PC?
Creating a duopoly allowed both companies to grow; not at each other’s expense but at the expense of smaller players.
I have a feeling that Google isn’t going down without a fight. It is sure going to be interesting to see if or when Google’s Midas touch runs out. Do you think there is enough room in the industry for Microsoft, Apple, and Google?
