The atmosphere surrounding most businesses these days is one of constant evolution. Business models, product offerings, and marketing techniques are forced to rise with the tide in an effort for most small and medium sized businesses to stay profitable. A decade or so ago, it was commonplace for a company to focus the majority (and in some cases 100%) of their efforts on a flagship product. These “flagships” are what marked the company’s stake in the economic landscape for current and future markets. Companies such as Hulu and VRBO were fighting to make their presence known, leveraging their platforms not as a “do more,” but a “do better,” type of service. As the years have passed, we have seen companies such as Hulu begin offering various stages of membership options, tailored to the needs of the customer; and even VRBO is heavily driven by professionally managed rental companies using the platform for exposure, not direct access to customers. Two years ago, when my wife and I were in the market for a new house, we had one feature that we knew we didn’t want - Red Brick. While some view red brick homes as stately or expensive, it reminded us too much of the childhoods homes we had no desire to replicate. “Out with the old, in with the new” was our mentality, and one that can apply to a lot of different business models. Imagine if “BMW” only manufactured the 7-series sedan; their “flagship,” model. Considering that it sells more 3-series and 5-series sedans than everything else in their line-up combined, it would seem like a terrible investment into the infrastructure for the company to make. Look at “Tesla” even. It didn’t take long for their introductory product, the Tesla Roadster to evolve into completely new concept offerings geared towards a wider buying public. They took an idea that was easily swallowed by consumers and applied it where there was demand. Companies that are looking to enter the market with either a good or a service, need to understand that offering a single product will never allow for continual advancement. You may take the market share of a niche hole in the economy, but even “Beats by Dre” sells items other than the ginormous “over ear” headsets that made them famous.
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“Branding” is a weird terms these days. The idea of creating a culture or instilling in a buyer’s brain everything you want them to believe about your business is difficult; and for some companies, damn near impossible. While some businesses force slogans and mission statements down the throats of their customers after every marketing meeting, other brands simply let their products shine and allow their branding to become ubiquitous with the service or goods they deliver.
Think about the most impactful brands whose goods you purchase regularly. Whether it’s Tide laundry detergent, Coca-Cola products or even Bunny Bread, chances are you have decided upon brand loyalty at some point, in regards to the products found within your home. Now, think of the latest marketing slogan put out by one of the brands whose goods can be found in your house or apartment…. Can’t recall anything within the last 5 years? Don’t worry, it’s my job to create catchy slogans and taglines and I can’t even tell you what Gatorade’s latest marketing blurb is all about. I will tell you one thing I will always remember, however; and that is a company’s logo. Whether it is the iconic Coca-Cola script logo or the Pepsi Co. ball, certain brands and their logo will forever be branded (pun intended) into my memory. So what can new company’s do to ensure their status as an “icon,” within their industry, later in life? Establish a really freaking cool logo. Let’s take a step back for a second and have a look at the different types of logos companies employ for their branding strategies. I consider there to currently be three types of logos most universally used by brands (you may or may not agree with me); let’s take a look at each one: 1. The company’s name is some sort of unique font with simple colors added per design. Think GAP. Think Coco-Cola. Think Levi’s. Think Google. While brands such as these oftentimes have alternative design elements that coincide or embellish their logo, for the most part, their name is synonymous with the branding image. This is a great tool for a new company to break into the market and do an equally great job at branding and educating consumers about who you are. Your name becomes the brand, and it builds trust between the customer and the company do to a feeling of transparency. You can’t deny it. We are living in a fascinating time filled with rapid updates to technology and mechanical advancement. Cars are becoming standard with back-up cameras, and many can parallel park themselves. Computers can run an entire hard drive through flash media, and televisions are now available in concaveness configurations to eliminate glare. While technology keeps pushing forward, it seems that the latest and greatest gadgets are easier than ever to make your own. While smartphones never seem to get any cheaper, computers, televisions, and even cars equipped with high-end safety features are now available to middle-income Americans. Through all the updates and advancements in technology, and their ever increasing available to younger and less salary-dense buyers, there remains a heavy aspect of the economic infrastructure that seems to get stronger and stronger everyday. This is the idea of the “maker movement.” As our society begins to place a heavier appreciation of design aesthetics and craftsmanship, some thanks can be given to HGTV for this one, master craftsman and those willing to dedicate themselves to a trade are finding their work increasing in value and in higher demand and the days go on. In 2007, I remember buying my first pair of red Wing Boots. Made by actual craftsman in Red Wing Minnesota, the boots were not cheap, especially for a college kid. However, they were the most obtainable option at the time. Setting me back close to $200, I am proud to say that I still have those boots with me today. However, walk into a Red Wing store and try to purchase the same boots today, and they will set you back nearly $280USD. Why the increase in cost you ask? While one could site an increase in transportation costs, increases in the cost a materials or even an increase in quality, none of these are worth their salt unless people are buying them. Which they are. IN DROVES. The modern man, and woman for that matter, values two things: High Value and High Quality. It’s why stores such as The Gap and other fast fashion companies are seeing their doors close in facilities they once anchored, and it’s why companies such as J.Crew stock their web store and catalogs with products created by these craftsman. When interviewing Mickey Drexler, CEO of J.Crew, a few years ago, a news source cited Drexler as saying (paraphrase) “We offer Alden Shoes to our customers because they are the best. Why try to reinvent something that already stands the test of time.” While the price point of Alden’s footwear offerings begin in the high-$400 range and easily crest four-digits for limited edition runs, the modern-prep retailer rarely can keep stock of Alden shoes in stores or online. As we continue to see a shift in consumers willing to pay more for the things they use everyday, and the obvious decrease in the technology associated with nearly everything else in our lives, how can large corporations maximize their profits on this “maker movement?” It all begins with Mark Hatch and his book, “The Maker Manifesto.” Outlining how communities can come together to provide work spaces for new ideas, weekend projects and even new |
Adam P. PfaffCurrent Musings. Incessant Ramblings. Enjoy. Archives
December 2018
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