Prophet’s List of 2003 Branding Hits Topped by Apple on Digital Music Front

Prophet has identified a short list of three of this year’s brand hits and two of its misses. Combined, they provide a very succinct lesson in the importance of understanding brand’s value to customers, how well the organization delivers on what the brand stands for, and how to make it stretch (or not) into new space to help the business grow.

SAN FRANCISCO, CA (PRWEB) December 3, 2003 -

– The insightful brand strategy behind the iPod, iTunes and the latest part of this digital music package, the iTunes Music Store, wins Apple kudos for one of the clear brand hits of 2003, according to Prophet, a leading management consulting firm specializing in the integration of brand, business and marketing strategy.

“We’ve identified a short list of three of this year’s brand hits and two of its misses,” said Prophet Chief Executive Michael Dunn. “Combined, they provide a very succinct lesson in the importance of understanding brand’s value to customers, how well the organization delivers on what the brand stands for, and how to make it stretch (or not) into new space to help the business grow.”

Prophet’s choices for top brand hits and misses include:

• Hit: Apple has done a stellar job of expanding its brand into the digital music arena with its iPod portable player, iTunes software and this year’s iTunes Music Store, which aims to satisfy both consumers and artists by making downloaded music legal and affordable. Playing off the anti-establishment roots shared by Apple and the digital music scene, the company has underscored its difference as a brand through packaging (the iPod’s signature white serves as a visual differentiator from other MP3 players) and supported it through advertising (the white product against silhouetted profiles of hip users). But Apple is also using its digital music package as a vehicle to extend its brand into previously unoccupied space. Having first taken care of its own community of Mac users in April, in October it launched the Windows version of the iTunes Music Store. “The jury’s still out on how well it will traverse the PC space, but because of the Music Store’s simplicity and ease of use – some of the core elements of Apple’s brand - we’re betting this will fuel substantial growth for Apple and may even increase the chances of some PC users considering Apple for their next purchase,” said Dunn.
• Miss: Smith & Wesson has miscalculated the extent to which a gun-maker’s brand will stretch with its move into home décor, clothing and jewelry through a new catalog called Crossings by Smith & Wesson. Crossings is primarily targeted to non-current Smith & Wesson customers. “Every brand has a certain amount of elasticity that allows it to extend into new markets,” said Dunn. “Their move into hunting gear like binoculars and scopes was a likely extension. But we’d argue that what the brand stands for does not align well with bedding and silk blouses, no matter how rustic the design. We believe it’s a ‘miss’ for them to try to extend into this category with their current customers and even more of a ‘miss’ for them to try to appeal to non-customers.”
• Hit: PUMA and MINI, in one of the more unusual cross-discipline initiatives, have joined forces to transfer the best of their brands’ signature values into a driving shoe and the PUMA MINI Cooper S car. The driving shoe, part of the automaker’s line of premium clothing and accessories, reinforces both brands’ characteristic innovativeness with features like the removable interior bootie with special traction outsole designed to enhance foot comfort on longer drives. The car also reflects that PUMA innovation, using its air mesh footwear technology in the car seats, providing a fresh new look and more comfortable feel to the car’s interior. The PUMA brand is reinforced visually in the classic MINI body with features like the PUMA formstrip from the front to the rear of the car and the leaping PUMA cat. “Although this was a limited promotion, it is a great example of the collaboration of two strong brands leveraging the strengths of one another to create unique products for their users,” said Dunn.
• Miss: Swiss, the national airline of Switzerland, has badly misstepped in its efforts to rebrand itself as a premium air carrier, under the banner of “Destination Excellence.” Like others before it, Swiss is discovering the pitfalls of branding against promises that can’t be fulfilled operationally: Its promise of excellence is denigrated by flight delays and declining levels of customer service due to a reduction of flights and staff. Compounding the problem was its separate, and seemingly contradictory, launch of a “value“ campaign in Europe this fall in response to continuing lackluster business performance. Economy-class customers are charged for food and drink, while the price of those “value” flights appears unchanged. “If the airline had chosen to rally around one set of brand values, and armed the organization to deliver on them, it might have had a chance,” said Dunn. “As it is, Swiss hasn’t been able to perform against any of them.”
• Hit: The Geek Squad is a little-known, but growing company that proves it doesn’t take a giant budget to bring a brand to life. In six cities throughout the U.S., this group provides 24/7 computer and network support. And how can you not trust the work of computer geeks? The brand’s quirky personality and commitment to helping its customers through a fun and friendly approach – “protecting society from the assault of computerized technology” are supported consistently on every front – from a service guarantee, to making timely house calls in custom-branded VW Beetles, to its Special Agents who wear geeky uniforms (high-water pants), to a website that carries through on the brand theme in a fun, yet effective voice. “The Geek Squad has been able to maintain their independent and unique approach even after begin acquired by Best Buy. It’s a true demonstration of their ability to live their brand and should result in continued growth and success for the company,” said Dunn.

“As our hits and misses show, it takes more than a slick ad campaign and empty promises to successfully build a brand,” according to Dunn. “It takes a solid internal understanding of the license the brand gives the organization to pursue new and different venues for growth to thoroughly mine its potential.”

Prophet is a management consultancy that helps clients achieve competitive advantage by creating and implementing integrated business, brand and marketing strategies. Leveraging the thought leadership of David Aaker and a team of seasoned professionals, Prophet works with companies from strategy to execution to develop, operationalize, grow, and protect one of their most valuable assets: their brand. Prophet has offices in Chicago, London, New York, San Francisco and Tokyo.

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