Branding works. I’m reminded of this fact every time I pass a Starbucks, see someone pay $100 for a pair of sneakers or buy a Mercedes (yes I know they are German engineered). But reminders of how well branding works are always beneficial, because they help me see what the job of a marketer is all about. Building a relevant and compelling brand that trumps the competition.
Two weeks ago at one of ANA’s region meetings, Chris Fawcett, Sony, corporate marketing director, laid out the Bravia brand story. This is truly a compelling story.
Sony and Samsung flat screen LCD televisions are produced on the same production line. Samsung sells their brand for $500 less. But Bravia trumped the Samsung brand with branding and today Sony outsells Samsung two to one and at a higher margin. How’d they do that? Sony went back to the basics. They listened to their customer, found a relevant insight (men are concerned about product performance, women about style – that’s why so many big screen TVs are put in the basement versus the family or living room), then marketed their product based on this insight – “The very first TV for men and women.”
Sony recognized that product attributes alone would not sustain growth of the Bravia brand. Products do not sell themselves; they need to connect with their audiences.
A great positioning badly executed won’t get the job done either. Sony incorporated non-traditional media platforms and style in their advertising plan. They used PR in innovative ways, they used roadblocks on Google, and their advertising executions were unique, colorful and cut through clutter. They put together a whole package.
The theme of Chris’ presentation was “Ideas Trump Technology” – this couldn’t be more true. Product attributes give us temporary competitive advantages. They can often be copied and in a short period of time as well, negating any advantage you thought you had. But by understanding your customer’s need and satisfying that need in a way that connects your brand to their need, a marketer can differentiate her brand and charge more too.
Innovation is not all about product development. It can be about connecting to customers in unique ways. It can be about delivering a brand package that makes the customer happy to pay your price. We can all sell cheap products. Keeping your product from being commoditized is the name of the brand game. 30 years ago Frank Perdue taught us why his brand was worth paying more for. Now Sony has proven that branding means $500 more profit per set and they are selling twice as many as well.
At the end of the day, the coolest brand is the one with the most relevant customer connection, not the most bells and whistles.
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