Brian Kirk

Reflections on MIT Sloan Branding

[bdwkirk]

Refusal to Assimilate to Elsbach’s Stereotypes

There is no denying that stereotypes exist.  It is a fact.  We make hundreds, if not hundreds of thousands, of minute, mostly unconscious judgments about other people every day.  Piggy backing on the psychology heuristics presented to us in class, it makes sense that humans would naturally infer certain characteristics about others based on look, fashion, voice, smell, race, hair color, you name it.  These heuristics, in a perfect world, would help us identify who we want to be friends with, date, work with or invest in, and, according to Kimberly Elsbach’s “How to Pitch a Brilliant Idea” need to be embraced.  In fact, she goes on further to say that there are only three groups of people that investors will want to invest in, and that we should strive to be in one of these groups if we should ever hope to have a fruiting and successful future.

What a bunch of garbage.

People may make subconscious and conscious decisions about me every day, and lump me into stereotype groups. In fact, as an educated, upper middle class white male who grew up in the suburbs, attended a state school and served in the US armed forces, I’d say that I fit into several stereotyped groups.  BUT, oh boy, wait for it: if I am not a ‘neophyte’, ‘showrunner’ or ‘artist,’ then I don’t stand much chance at raising funding for my startup, according to Ms. Elsbach.

Whelp, I’m here to prove her wrong.  I was told when I was in middle school that I was too small to be on the wrestling team, yet I earned varsity letters all three years.  My college advisor told me that I was “not smart enough to be an engineer,” and yet I qualified as Chief Engineering Officer in the world’s most prestigious nuclear operations entity.  And I can’t begin to count the number of folks who said that my test scores were too low to get into a top MBA program, yet I am succeeding at MIT Sloan.

You see, Ms. Elsbach, nobody fits a stereotype exactly, nor should we ever strive to be in one. People are individuals, and the personal traits that differentiate us from one another are what make us special, unique, and enrich the life experience for all.  And, although it may get you more money or further ahead in life to play into the stereotype that you are born into, isn’t this exactly the culture that future business leaders should be combating?  My personal standards are higher than this, and I refuse to sell my dignity and personality in exchange for working capital.

[bdwkirk]

Inspiration from unlikely places.

In January of my junior year of undergrad I signed the infamous ‘dotted line’ pledging the next 5 years of my life to service in the US Navy’s elite Submarine Force.  My reasons were largely altruistic. I felt compelled to give back to the nation that had provided me so much: a stable government, freedom of speech, education, infrastructure and the ability to dream big.  Fast forward nearly 6 years, and I was at a crossroad.  Stressed beyond belief, constantly away from my family, and tired of being trapped in the bowels of a 300 foot steel tube for hundreds of days of my life, I decided that I had fulfilled my basic desire to serve my country and it was time to move my career to the real world.  But what could I ever do that would be remotely comparable to my contributions to our national security or have as much impact on my friends and coworkers?  I soul searched to try to think of some way that I could still serve the greater good outside of the military, but was coming up short.

Then I read a book.  “Let My People Go Surfing,” written by Yvon Chouinard, Founder of the outdoor company Patagonia. Yvon talked at length about how the motivation of his company was to make the world better through business by leveraging buying power to make his supply chains more sustainable, putting his people first, and promoting and advancing environmental activism.  I learned that public service can not only exist but can thrive outside of what I considered to be ‘public service proper.’

My story, I’m sure, is not exactly what the Patagonia marketing team had in mind, but Yvon’s message resonated: “Build the best product, cause no unnecessary harm, use business to inspire and implement solutions to the environmental crisis.” Motivated at least in part by Yvon’s tale I submitted my letter of resignation as a commissioned officer of the United States Navy, and began a trek toward business by accepting an offer to MIT Sloan.  I was stoked. Not only would I be able to settle my life and enjoy sunlight for more than 3 days at a time, but I would be afforded thousands of opportunities to serve others.

Fast forward to the present.  Finishing my first year of my MBA, my eyes have certainly been opened beyond the lesson’s of Yvon’s book.  But, on the business side of things, I am now a devoted Patagonia customer.  Transitioning from sunny Hawaii back to Boston’s snowiest winter called for a refresh of some very worn and outdated ski wear; Patagonia was the first outerwear company that came to mind.  Their view on the world and what it means to be a big player in the business environment is in line with my own, so I purchased their products.  It was that simple.  Independent of that, Patagonia’s image has serious badge value that overlaps with how we identify ourselves as Sloanies.  Principled Innovation.  Others Before Self.  Sustainable Growth.  

The best part about the Patagonia image is that the marketing team carved it out by promoting who they are at their core- the beliefs and ideals and culture and personalities of their company.  This has permeated through their marketing efforts.  Although their products are expensive, I believe that I will always be a loyal Patagonia supporter.

[bdwkirk]

Building Brand Myth Off of National Image: Burberry’s Success as THE British Luxury Wear

When Rose Marie Bravo took over as CEO in 1997, she set to redefine Burberry’s brand image and product placement.  She wanted modern, classic looks with roots in fashion, but ultimately a brand that dripped with “attainable luxury.”  She and her team undoubtedly did a phenomenal job restructuring the product line and branding of the company,  and they captured an essence that few firms ever manage to grasp: they were quintessentially British.

Just like Ralph Lauren structures their image around the plush but wild image of American elite and Gucci defines the fashion trends of Italy’s most trendy aristocrats, Burberry has become the defining image of British fashion.  Modern, but classic.  Chic, but subdued.  Stylish, but understated.  If the classic trench coat could speak, it would certainly riddle off some dry-humored, self deprecating crack at American independence.  

And maybe the British don’t agree with me here.  Maybe they don’t like the style, or think the colors are lousy.  Perhaps they don’t even wear it, let alone think that it defines their nationality and heritage.  If that is the case, I’d give even more props to Rose Marie.  I’m not much for fashion in general, but watching a beautiful woman walk down the street cloaked in a Burberry trench, or gaping at an ad with Emma Watson, definitely defines what I have come to expect not just of the brand, but of British fashion in general.  Burberry not only found and executed within a price and market niche, they found a missing national fashion identity.  Britain, infused with well known, global history and revered for it’s excellent custom suits and tailoring, was a perfect unused canvas to repaint the Burberry Check.

Right-O.  Pip pip, Cherio and all that.

[bdwkirk]

Love.  It IS what makes a Subaru a Subaru.

Car culture is one of my favorite things about being an American.  Long before Harrison Ford raced his ‘55 Chevy in ‘American Graffiti’, Americans have been infatuated with the machine that takes that from Point A to Point B.  I and many others, however, would argue that the automobile is much more than that: it is a symbol of individual freedom and expression; a catalyst in the adventure of life; and a means of escape from the mundane perils of the everyday grind.  I have also realized that this view, in hindsight, is precisely why I bought a Subaru.

Subaru has neatly positioned themselves into a niche market in US auto sales.  All models feature a smallish, generally four cylinder boxer engine, and standard symmetric all wheel drive.  This features has given them extreme practicality in the Northeast: they are relatively fuel efficient, and grip the road like a bobsled in the snow.  Their marketing is geared toward 25-35 year old young, active professionals. Ads typically feature mountain scenes of happy Subaruian’s whisking off to beautiful, not-so-far-away lands to ski, hike, climb or camp, often with a dog or young family in tow.  They have positioned themselves as THE eco-friendly, no frill, fun to drive lifestyle vehicle for active young adults.  I spend much of my free time pursuing these exact activities and take pride that my “outdoorsmanship” helps to define my personal brand image.  My bright blue WRX, fitted with snow tires and mud flaps, whom I’ve named Dagny, is the mechanical embodiment of who I am as a person. 

I love my car so much that I even filled out the market research study after I bought her- which also made me realize that Subaru’s advertising had been right on the money.  I was the target audience. Questions sounded something like this Q: Do you own a dog? A: No, but it is on my highest priority list (looking forward to getting Quincy, as we’ve prematurely named him, this summer!).      Q: Did said dog influence your buying decision? A: I wouldn’t want to put a muddy dog in the leather miniature back seat of my previous Infiniti G35, so yes. Q: How many days a year do you ski? A: 10-15, although I’m shooting for more this season. 

Incredible brand positioning and perfect understanding of the niche customer.

Now what would happen if Subaru became a “Branded House” or a “House of Brands?” Would I still have such romantic images of romping through the snow on my way to Tuckerman’s Ravine with my dog sharing the backseat with my backcountry ski gear?  No, I don’t think I would. I think I would begin to frame Subaru in my mind as a “sellout” auto maker that created a three tier branding system, along with the rest of most major auto makers, in order to appeal to a broader audience.  It would no longer represent ME. I fear that I would lose my affinity and devotion to the brand, because the brand would be less of a symbol of who I am and what I want to be when I am caught behind a desk for 10 or 12 hours a day in a Boston office.

I think Subaru has realized this and has resisted the trend to create offshoots or umbrella brands.  Sales growth is expected to be close to 20% for a second year straight.  New models continue to win heaps of awards, but the auto maker has not made leaps and bounds to increase manufacturing capacity. They are keeping the brand small-ish. They recognize that when 70 year old grandma’s start driving their vehicles, they’ve lost their younger customer base which will be worth far more over the course of our lives.  I commend them on this decision, both as a Subaru owner and a business student. Well done Subaru, well done.

[bdwkirk]

Singapore Airlines

Singapore Airlines (SIA) has been crafted from the ground up to be a customer service company rather than a transportation company.  They invest heavily in selecting the best employees, training them to the highest level, and providing the newest planes with the most bells and whistles for their customers. They have positioned their brand as one that means warmth, helpfulness and enjoyable experience, both through marketing campaigns such as “Singapore Girl” and through living their credo every day in all aspects of the customer’s flight experience.

When crisis hit the airline industry after the 9/11 attacks, Singapore Airlines had to decide on continued investment in their core capability in face of a highly uncertain market.  While British Airways had already upgraded their Business Class seating arrangement, SIA had fallen behind and planned to put $100M into out performing the Brits.  

Reneging on the new seat design, and the contract, after it has already been announced to their customer base is a mistake and is directly contrary to both the ethos of the company and the brand image that it represents.  SIA customers expect the highest quality everything, in the face of any adversity.  SIA is the best.  Period.  Especially in the face of impending financial crisis, SIA should fall back on what it does best: customer service.  They should keep those seats on order, come hell or high water.

[bdwkirk]

Branding Opportunities of New World Wines

Old World wines are at a serious disadvantage in a growing global market-a wine must be named based on it’s geography:  Champagne is from the Champagne region; Boujolais from Boujolais, etc.  Although consumers may recognize the name of the region, the power of a brand by an individual firm or vinter is lost because the market is too segregated.  It is incredibly hard to keep track of each region, let alone each farm, vintage year, etc.  Master Sommeliers spend their whole career’s mastering this wine database. 

Enter New World wines. By not being confined by the same laws and naming conventions that were imposed on European wines way-back-when, New World wines have been able to develop as large businesses that can harness the recognition and power of brand signaling to attract consumers. Most of my friends will say that they buy a wine based off the name and label.  Unable to distinguish between hundreds of choices in a liquor store, they gravitate toward brands that have “more fun” marketing since wine drinking should, by itself, be fun. Names such as “Voluptuous,” “Bonking Frog,” and “Bitch” are more recognizable and have more impact on them as consumers.  The names also hold additional staying power; I imagine that if they like their Bonking Frog Merlot, they will remember it without having to snap a photo of the label, as happened to me with a lovely French Chardonnay this past weekend, whose name I can’t recall. 

In the face of this, Concho y Toro has grown to be a large player in the global wine market and has developed several labels or sub brands to please all wine pallets and pocketbooks.  However, regardless of the quality of their wines they still have to fight the somewhat nascent badge value that “Made in Chile” has on their label; until very recently, Chile was a largely unknown and somewhat of a gamble.  The risk of purchasing a poor wine rose proportional to the price; whereas I may be able to risk $5 or $8, or even up to $12 or $15 on a mediocre Malbec, my likelihood of gambling $50 on a bottle of wine that I couldn’t be guaranteed was fantastic was out of the question.  If I were to reach for  a very expensive bottle for a special occasion, I would go for something that I know (the Chard Farm Viper is a fantastic premium bottle) or a brand/region that had a fantastic reputation such as a Bordeaux.  Chile would be quite simply out of my purchase equation.

Due to this, and looking at the sales numbers that define Concho y Toro, it would be a much better strategic shift for them to divest from the ultra premium brands and focus on the lower priced labels.  Fonterra, Sunrise and Casillero del Diablo all make nice wines (I’ve tried them all), but they also taste somewhat young and underdeveloped.  I have trouble imagining the company bridging this gap and introducing an extremely high quality wine that would succeed at the next price point. Because 98% of their consumers have already tasted the cheaper varieties and formed similar opinions (or don’t know enough about the tasting palette to have an opinion), completely redefining the brand would be expensive and highly risky.  Concho y Toro is a good, middle of the road, midweek table wine.  This is the core of their business and the crux of the brand they have built, and they need to run with it.

[bdwkirk]

Innovations: Advancing Human Kind or an Incredible Waste of Time?

1. Satellite Radio: Hind sight is 20/20 on this; satelittle radio was a success in the early 2000s.  Although it grabbed large market share relatively quickly, it may become obsolete just as fast due to cheaper mobile data and companies such as Pandora and Spotify. Enhanced programming was a thing of the 2000′s; customizable programming is quickly taking over. 

Relative Advantage: Great.  Standard radio is boring and repetitive.  If you spend any time in the car, you’ll want to punch the first disc jockey you meet.

Compatability: The main adopter here has to be car manufacturers if this is to be a success.  If it is easy for the consumer to use, i.e. already installed as a standard feature, it is far more likely to be used.

Complexity:  Just as easy and familiar as standard radio, but with more channels.  This shouldn’t be an issue.

Trialability: I don’t think consumers will go out of their way to purchase this, but once they have it are likely to keep it.  The hook should be free, perhaps as a subscription with a new car purchase.

Observability: The quality and channel access will be readily apparent to anyone in the car who is using or listening to the radio.  Check plus on this category.

2. Silver Band-Aids: I think this one completely depends on the pricing.  The value add is clearly proven, and silver bandages are used widely now in wound and burn care clinics.  Unless they are affordable and consumers can understand exactly how much better the silver is compared against Neosporine, customers won’t adopt quickly, if at all.  

Relative Advantage:  Good to great. For severe trauma or if high risk of infection exists, this is absolutely the best product on the market.

Compatability: Consumers won’t have to change how they bandage themselves.  Compatability should be a non factor for this one.

Complexity: Although the technology is complex, the end use is not.  I don’t think, however, that it will be easy to convince the average person that rubbing microscopic silver into a wound will really help the healing process.

Trialability: Easy enough.  BYO scraped knee.

Observability: Tough to tell if consumers will recognize a difference in healing time or scaring between this and a competing ointment.  I think observability to the average, untrained eye is low.

3. Computerized Smells: Novel, but so what?  Gamers might be willing to pay extra for the ultimate nerd experience (I’m sure they’d like to smell something a bit nicer than their pet ferret and Mom’s leftover meatloaf), but I highly doubt that the general public will be willing to spend their disposable income on something that adds so little value to their media experience.  And would you really want to “enjoy” the smells while watching Game of Thrones? Although the visual effects are stunning, lets leave the olfactory experience out of the equation.

Relative Advantage: Not much.

Compatability: Requires new TV’s, computer monitors, etc, or an add on pack.  And refills.  Not so compatible.

Complexity: Doesn’t sound incredible complex, but mixing each smell might get complicated.

Trialability: Not easy.

Observability: This is by far the easiest of the four products to observe since it caters directly to one of the 5 senses.

4. Sliced Peanut Butter:  What’s the value add here?  I’m going to go out on a limb and say that, although people are lazy, this one takes the cake.  This adds no value, and the money spent on product development was really just an excuse to eat awful tasting peanut butter. I don’t see this getting of the ground with any consumer base.

Relative Advantage: Almost none.  This might save you 10 seconds per sandwich.  If you’re slow. Plus, you will dirty a knife anyway when spreading the jelly.  Guess they forgot about that part.

Compatability: Works with existing models of PB+J sandwiches, but can you control the thickness of the peanut butter?  One of the great debates of my college days was how do you achieve the proper balance of peanut butter and jelly on a sandwich.  Jury is still out on this one, but the overall consensus was that the ratio was something like an imaginary number that can’t be defined.

Complexity: Super easy.

Trialability: Super easy.

Observability: Unless you’re talking to other people about “hey, check out how much cooler my sandwich is than yours!  I’m so lazy that I buy my peanut butter presliced!” then there is not a whole lot of observability.

[bdwkirk]

Do I Really Drink Marketing?

Yes. Yes I do.  All this time I thought I was a beer lover, but really my taste buds and affinities for carbonated malt beverages have just been hijacked by symbols of fun and self differentiation.  I never thought it so, then I glanced to my right.  Here I am, 9:30 on a Wednesday night, sipping a Long Trail “Sick Day IPA.”  Its a decent brew, I gotta say, but certainly not the best.  

But damn, that’s a cool label.

It wasn’t so long ago that I was crushing pow and hiking cliff lines while skiing with old friends just miles from the Long Trail brewery.  When I saw this beer, I immediately connected back to that day and the adrenaline rushes, fist bumps and apres-ski beers that followed. “Some days are just too good to miss,” the tag line read. I was hooked.  I bought it.  Not just a 6 pack, but 2 cases of it.

Maybe I’m a sucker, but I’m pretty sure that reconjuring these memories makes it taste a little better every sip.

[bdwkirk]

DeWalt Strikes Back

Black & Decker is a household name - which was exactly their problem.  Their brand symbolized affordable, quality goods in multiple household categories: toasters, ovens, popcorn makers, power tools...  The problem for tradesmen was the power tools was just a single item on that list.  

Black & Decker in the industrial segment meant something entirely different.  In a world where corporate buyers search for the best tool at the best price while prioritizing customer service and salesperson relationships, Black & Decker’s brand name, quality and customer service hit a home run.  

So what happened to the tradesmen category?  As some one who worked in construction from the ages of 14 to 22, I have a decent idea of who makes up this customer segment.  These folks are proud, motivated handimen (sorry ladies, but its a male dominated industry) that drive Ford F-150 pickups, show up at your door in a Carhartt jacket at 7:30 in the morning drinking black coffee and spitting their Grizzly Long Cut dip into an old Mountain Dew bottle.  “Sissy” is never a word that you would use to describe them.

And yet, by not differentiating the product line of tools that B&D was selling to these tradesmen, they were essentially selling them tools with the same badge value as their wives toasters and refrigerators.  They might as well have painted their tools bright pink and put cute little tutus around the base of the handle for dramatic effect.  It would have had exactly the same effect - they were trying to sell a “sissy” tool to a real “man’s man.”

The DeWalt rebranding scheme was a huge success; I have seen DeWalt tools all over every job site I’ve ever worked on, and user’s have extreme respect for the ruged, do-anything construction.  Turns out that although pink tutus wasn’t the right look, Industrial Yellow hit the nail on the head (pun intended).

Photo courtesy of www.theaverageconsumer.com.