The commoditization of Brands

In discovery of the US airline industry, my respect goes to JetBlue for its attempt to stand out in the jungle of equality. With its credo of being the “fun airline”, reflected not only in the motto of “Happy Jetting”, but also in the 36 direct TV channels, free wireless, and the Customer Bill of Rights, I think there is something we can learn from this company not only in terms of the product itself, but also of how successfully engaging customers might look like.

The airline industry actually drifted away from being having differentiated brands, towards commodities. Whats the difference between Delta, US Airways and American airlines? Having trouble? Well, I can name you a similarity: They all try to squeeze you in like sardines, treat you like cattle and rip the last penny out of your pocket for a little bit of incremental revenue (I recently read that some airlines are considering to charge customers to go to the toilet). Whenever I get on an airplane nowadays, I end up checking my watch every 10 minutes, surprised at how slow time can pass. What happened to the experience? Big respect therefore to Jet Blue for its attempt to reestablish some points of difference to stand out in market like that.

Another example of how entire industries are becoming commoditized is what is going on in the conventional retail world out here. However, when going to Trader Joe recently, I figured out how much they are standing out as well from the industry standards. What’s the difference between Shaw’s, Food Master and Stop & Shop? No idea. A similarity? Maybe that they seem to spend 99% of their promotional budget on attracting the worst customer base imaginable- the cherry pickers who come in there only to go hunting for the special offers of the week. They have trained us to be like that. Or is there another reason a customer would choose one supermarket over another,- (except for the proximity to their houses)? So again, my respect goes to Trader Joes, which managed to really stand out in the retail jungle out there. It is price stable, offers a different shopping experience and true brand value. People are drawn to the great products rather than the price tags. Compare the online presence and that shows everything: Trader joe’s web site tells a truly unique story; giving an insight into the great brand world. Shaw’s homepage -on the other hand- consists to 90% of the latest coupons and saving strategies. Sales promotions remain the most dangerous tactis in the marketing communication portfolio. When not handled with great care, they can destroy a brand that has been built up over a lifetime- in the blink of an eye.

Francesco Wesel
Integrated Marketing Communication
www.francescowesel.com