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Archive for October, 2011

Brand Watch

Brand Arrogance: The Threat Within

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Netflix reed hastings brand strategy  
Consumers don’t value brands; they value the idea the brand represents to them. This idea will always be worth more than the product, or the actual bricks and mortar of the business enterprise. When marketers behave arrogantly, the value of the idea people care about is instantly diminished. And once this happens, the road to redemption is long, difficult and expensive. 

A recent example of a marketer’s arrogance towards its customers is NetFlix.

The story is classic, almost cliché. In Netflix’s case, an innovative technology quickly ramps into an innovative business model with rapid customer acceptance and advocacy, and then inexplicably breaks its trust bond with the very people who were making it great. Other brands have done this as well. New Coke comes to mind.

Of course, much of the hubris and arrogance was initiated by Netflix’s CEO, Reed Hastings.  When the decision was made to raise prices and change how customers receive value without any consideration to the value of the brand’s “reason for being” and what it represents to people, the value of the Netflix brand was instantly diminished. Not even a gracious mea culpa from the CEO or promotional incentives will undo the damage done.

The Netflix brand paid an incalculable and heavy price.

The lesson for brand managers is clear:

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Advertising

Targeting Consumers: A New Perspective

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Consumer Targeting Brand Marketing Strategy

Direct marketers have long known something that brand marketers haven’t: responsiveness counts. And not much else.

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Brand Differentiation

Brand Strategy: Rethinking Brand Differentiation

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Diamond Shreddies Brand Strategy Differentiation

The ultimate goal of any brand effort is differentiation. Setting your product apart from its competitors is an essential first step toward creating preference and loyalty. According to research firm, Millward Brown, “Brands that are perceived as being different have a much higher potential for growth than do other brands.” Consequently, identifying and communicating meaningful points of difference has become the focus of much strategic branding work.

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Branding: Just Ask...

What Experts Are Best For Community Branding?

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Brand Strategy Place Branding Community Branding City Branding

We welcome and answer marketing questions of all types here on BSI. Today’s question comes from Lisa, an economic development executive near Toronto, Canada. She asks:

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Branding: Just Ask...

Brand Licensing: The Answer For Sears?

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Sears Brand Licensing Strategy Die Hard Battery

Regular readers of Branding Strategy Insider know we welcome and answer marketing questions of all types. Today’s question comes from Ryan, a senior analyst with a private investment fund in New York City, New York. He writes:

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