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8/12/2019 3 Anticipating
1/13Mercer Management Journal 35
A static brand can quickly
become irrelevant. But
brand innovation also has
its risks. Patterns that have
played out in other
industries can help
when and how a brand
Leo Burnett, founder of the agency that bears his name andTime magazines Advertising Titan of the 20th Century, builthis reputation as the champion of the long, enduring idea. Foradvertising executives of the Burnett school, nurturing brand
images such as the Marlboro man, the Pillsbury Doughboy, andthe Michelin Man was essential to building the brands. Once abrand achieves strong relevance and awareness, it serves to createlongstanding barriers to entry even when newer competitorsproducts are superior or much cheaper. Marlboro, for example,has successfully staved off numerous market share attacks fromcomparably tasting generic cigarettes priced at half of Marlborosprice. For countless brand managers, then, consistency over timehas been the hallmark of a well-managed brand.
Yet while consistency still has value, a static brand can becomedangerously irrelevant in the face of shifting customer prioritiesand changes in the competitive landscape. Burma-Shave, anadvertising icon famous for its rhyming roadside signs, disap-peared as a major brand in the 1960s with the spread of the U.S.interstate highway system, where advertising signs are prohibit-ed. But Burma-Shaves demise also reected the shift in brandbuilding away from advertising jingles and toward the customerexperiencefor example, the ritual aspect of shaving so success-fully exploited by Gillette. Other once-powerful brands such asOldsmobile, Maxwell House, and United Airlines all suffered asharp decline because they stood still while their customers weremoving to different wants and needs.
A brand positioned around Fly the friendly skies of United, forinstance, worked well in the 1970s and 1980s when safetyembodied in the idea of friendly skieshad a high value for airtravelers. But the message had become obsolete by the early 1990s, as travelers cared far more about service at the gates, bet-ter meals, and more room on the plane. Partly as a result of its
What ever happened to Burma-Shave?Pattern thinkers can outsmart brand rivals in a changing marketplace
By John Kaniaand Adrian J. Slywotzky
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The dilemma: When
to abandon consistency
in favor of reinventing
weakening brand, Uniteds revenues, prots, and market valuesuffered. While the airline industry as a whole experienced18 percent annual growth in market value from 1990 to 1998,United Airlines attained just 3 percent growth. Respondingbelatedly to shifting customer priorities, United has for the pastseveral years focused capital and brand-building investments onconsumer concerns such as ight schedules and seat room.Repositioning the brand for greater relevance has not been easy,however. United Rising, the ad campaign that replacedFriendly Skies, has already been replaced by one with sloganssuch as United for a better journey.
Although letting a brand go stale is a constant danger, brandinnovation also has its risks. In 1985, Coca-Colas taste testsindicated that most consumers (and particularly young people)thought Pepsi tasted better than Coke. To attract younger con-
sumers, Coca-Cola chose to change its venerable secret recipe tomake the product taste better than Pepsi, and attached the new taste to a new brand image: New Coke. The outcry against thenew product quickly taught Coca-Cola that most of its cus-tomers, even many younger drinkers, didnt care about the actualtaste of Coke so much as about the emotional heritage of thisclassic brand. While New Coke exists today in a few regionalmarkets, it has been renamed Coke II and plays a minimal rolein Cokes continued brand success.
So brand builders are faced with a dilemma: In a world wherebusiness models are being reevaluated and reinvented continually,
when is it time to throw consistency to the winds and reinventthe brand?
Past Mercer research* has demonstrated that pattern recogni-tiona discipline useful in such disparate elds as seismology,medicine, and chesscan help business leaders identify and cap-ture new opportunities faster than the competition. Currentresearch suggests that pattern thinking can also help to anticipatehow and when a brand must evolve.
Prot Patterns discusses thirty patterns of strategic change. Oneof these patterns is product to brand, in which customers,confronted with too many options and seeing too littledifferentiation, rely on brand as a proxy for quality, causing valueto ow to branded players. Beneath this broad pattern, we have
*See Prot Patterns: 30 Ways to Anticipate and Prot from Strategic Forces ReshapingYour Business (Times Business/Random House, 1999); Mercer Management Journal,
Number 11, 1999.
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Mercer Management Journal 37
These eighteen patterns,arrayed by type and by incidence, describe how market shifts affect brand
strategy. Additional pat-terns and variants will becatalogued as they emerge. For elaborationand examples of thesebrand patterns, visitwww.protpatterns.com.
Functional to Emotional Customers elevate the intan-gible benets over productfunctionality.
Concentration to Proliferation Ascustomers demand greater productchoice at multiple price points,companies move from a singlebrand to multiple brands.
Mass to Relationship Customersdesire for tailored offerings leads togreater dialogue between companyand customer, with more attention
paid to the many points of cus-tomer contact.
Upward Spiral Companies with themost consistent, clear messages tocustomers, employees, andinvestors realize higher shareholdervalue.
Brand Equity Patterns
De Facto Brand The rst entrant in
a new category benets from tyingthe brand intrinsically to the cate-gorys main benet.
Desert to Candy Shop As the num-ber of choices in a category prolif-erate, customers jump to the hotbrand of the moment.
Relevance to Irrelevance Customerpriorities change, which reduces
the relevance of establishedbrand messages.
Brand Apathy to Thirst As cus-tomers become more discriminat-ing among competing products,they place a higher value on certainbrands as a guarantee of processquality.
Rare Birds to Lemmings In cate-
gories with rapid change, rst-mover brand positionings spawnsignicant imitation.
Delayed Trigger Business designsuccess stays ahead of brand devel-opment.
Brand Investment Patterns
Choice to Simplicity Customersdesire simplicity in selecting andpurchasing products, and the brandbecomes dened by how consis-tently it delivers convenience.
Scarcity to Ubiquity As a companyexpands its offerings across multi-ple products or channels, thebrand becomes overexposed,and equity erodes.
Branded Experience As customersexpect involvement with a product
or service, the brand begins tostand for an ongoing experience,not just a product or transaction.
Brand Target Patterns
Declining Core Brand equityremains strong, but among a small-er and smaller population.
Mainstream to Luxury As some
customers migrate upmarket fromcore offerings, a brand is reposi-tioned to capture these higher-value customer segments.
Chasm Crossing As a companystarget consumer moves from theearly adopter to a mass audience,the brand equity evolves or isstymied.
Investor Star Courting the investorcommunity helps establish thebrand as well as raise capital.
Employee Star In businesses wherecustomer interaction with employ-ees is frequent or critical, a focuson employee understanding of thebrand promise strengthens cus-tomer loyalty.
John Kania and Andy Pierce
Experience Employee Star
Rare Birdsto Lemmings
Brand Apathyto Thirst
Desert toCandy Shop
De Facto Brand
Mega Patterns Brand EquityPatterns
I n c i
d e n c e
Brand patterns: a catalogue of the ways brands evolve
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Levi Strauss was late to
recognize what customer
heterogeneity meant for its
recently catalogued nearly twenty specic brand patterns thathave caused value to migrate from one set of players to another(see box, previous page), and identied leading indicators of
when a particular pattern might emerge. Exploring three of thesepatterns in depth offers lessons for managers who must walk thene line between dangerous irrelevance and ruinous innovation.
Concentration to Proliferation:VF sews up the jeans market Successful brands are expensive to build. A typical consumermass-market brand in the United States requires tens of millionsof dollars to achieve moderate brand awareness among a targetedcustomer base. Because of these challenging economics, it oftenmakes sense for a company to concentrate its resources behindone brand.
Sometimes, though, concentrating resources on a single brand
is far less effective than supporting multiple br