As I will soon graduate with a Masters degree in Integrated Marketing Communication, my job search has now officially started – A common interview question is to name examples of favorite brands. There are so many, but top-of-mind my answer would be Starbucks, Trader Joe's, and Harley Davidson- not so much because I am an evangelist customer of these brands, but because I admire what they stand for and what they have achieved.
Starbucks has redefined the coffee business and shows the value a strong brand can have, turning a commodity such as coffee into a true experience. Along with the notion of the “third place”, the brand has successfully managed to align itself with people’s aspirations to achieve an emotional balance in life. A large part of its loyal customer base cannot imagine a day without Starbucks anymore. The fact that Starbucks became a global powerhouse brand without any advertising at all illustrates that with a great product, word-of-mouth is the most powerful marketing tool. However, in a previous post, I also highlighted my dislike for Starbucks jump on the bandwagon of trying to become everything to everybody.
Trader Joe’s - When coming to the US in September 2008 directly after almost one year in Asia, the average American supermarket represented one of the biggest cultural shocks to me- enormous in size, dozens of products in each category and price promotions everywhere. No matter how supermarkets have looked like in the past, they drifted away from being well differentiated brands towards commodities. What is the difference between Shaw’s, Food Master and Stop & Shop? I have no idea, but a similarity must be 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. Abroad,I used to enter my supermarket and buy the brands I have been loyal to ever since, but now my primary attention when choosing a supermarket goes to price and proximity.
In this environment my respect goes to Trader Joe’s. When going there a few months ago for the first time in my life, I figured out how much they are standing out from the average retail jungle. It is price stable, offers a different shopping experience and true brand value. The retail concept is unique, as products do not need to pay for slotting fees or promotions, but only have to pass the taste test, get in and perform. As a result, people are drawn to the great products rather than the price tags. The differences also become obvious when comparing the online presence between supermarkets: Trader Joe’s web site tells a truly unique story; giving an insight into the brand world of the company. Shaw’s homepage, on the other hand, consists to 90% of the latest coupons and saving strategies. Trader Joe’s effort to establish clear points-of-difference in such a market environment is therefore highly exemplary.
Harley Davidson – Even though I would never get a Harley myself, Harley Davidson is one of my favorite brands for two reasons. First of all, Harley has built a powerful brand through a narrow focus- they truly own the word of “big motorcycle” in the mind of the consumer. When the lightweight Japanese bikes or fashion bikes like Ducati arrived in America, Harley ignored them. Most companies would have followed the GM or Ford approach to expand the brand into new, trendy categories in pursuit of short-term growth, while wearing down the brand until it now longer stands for something in the long run.
Secondly, the Harley business concept highlights the value of a loyal customer base for a brand. Like no other company, Harley Davidson succeeded in engaging its customers meaningfully by building a powerful community around its brand - the Harley Owners Group - whose name seems to perfectly incorporate the brand essence (HOG = big motorcycles). As only Harley owners can log in to the site (members.hog.com) and events are organized only for them, the brand offers a strong sense of exclusivity, value and prestige. As a result, Harley owners might be the biggest evangelist consumer base a brand has ever managed to create. The popularity of Harley tattoos and apparel exemplifies how the most loyal customers have been transformed into powerful word-of-mouth machines.
Francesco Wesel
Integrated Marketing Communication
www.francescowesel.com
