| 1. The fundamental law of Marketing is the Law of | | | | television, Cable television, and Satellite television. TV |
| Leadership. It is better to be first than to be better. | | | | sets branch out into becoming Cathode-ray tube |
| Microsoft launched in '81 while Apple launched in '84. | | | | (CRT), Liquid - Crystal display (LCD), Liquid crystal on |
| Apple is better in hardware, software and other areas | | | | Silicon (LCOS), Digital Light Processing (DLP), Plasma, |
| but has only 3% share while Microsoft has 94% share. | | | | Organic light-emitting diode (OLED). Hotels will diverge |
| 2. Inspite of this law, every company focuses on being | | | | into being Expensive, medium price, low price, motels, |
| better. The best voted Marketing book in America is | | | | low price motels, suite hotels, weekly hotels. |
| titled "Simply Better". | | | | 15. Divergence comes from Darwin who has explained |
| 3. If first is perceived to be the best, then automatically | | | | the concept in 'The origin of Species'. The panthera |
| the company will attract good people, good distributors | | | | tree has a lion, a jaguar, a tiger, and a leopard. The |
| and so on. The key is to create the perception in the | | | | humanoid tree has the Gorilla, Chimpanzee, Orangutan, |
| mind that being first means being the best. | | | | and the Human being. Man did not evolve. He diverged. |
| 4. To win the battle in the market one needs to win | | | | Evolution is gradual change. Divergence is abrupt |
| the battle in the mind. Xerox invented the laser printer. | | | | change. |
| But did not enter the market. HP was the first. Red Bull | | | | BRAND SENSE BY MARTIN LINDSTROM |
| was the first energy drink. Coca cola introduced KMX | | | | 1.Branding is what goes on in one's mind. |
| energy drink. Red Bull outsold KMX 20:1. Last leader | | | | 2.Brand is not a logo. The test is that if one removes |
| brand produced by Coca cola was 'Sprite'. Their | | | | the logo, will one still be able to recognize the brand ! |
| strategy has predominantly to be better. | | | | 3.Traditional communication no longer works because |
| 5. Instead of trying to build a better product win the | | | | we are being over-communicated to. |
| 'better perception'. | | | | 4.What appeals to as many senses will be |
| 6. Another Law of Marketing is the Law of the Mind. | | | | remembered. |
| First in the market is nothing. First in the mind is | | | | 5.The story goes that the challenge given to |
| everything. Duryea was the first car in the market but | | | | Coco-Cola was to create a bottle that if smashed |
| Ford's Model T was the first in the mind. Yuengling | | | | could still be recognized from its glass pieces. |
| was the first beer in the market but Budweiser was | | | | Therefore the meaning of 'Smash your Brand' is that |
| the first beer in the mind. Similarly the first bookstore | | | | one needs to look at all the small pieces which the |
| on the Net was but is the first in the mind. | | | | brand can be broken into and see what the brand can |
| 7. The first search engine was Alta Vista. But the first | | | | make its own. |
| search engine in the mind is Google. Focus gets one | | | | 6.The Brand wheel is a tool which indicates portions of |
| into the mind. Alta Vista turned itself into a portal. It lost | | | | real estate which a brand can optimize and own viz. |
| its focus and was ultimately sold to Overture and then | | | | Picture, Colours, Shapes, Name, Language, Icons, |
| to Yahoo. Today Google is the leading Search Engine. | | | | Sound, Behaviour, Service, Tradition, Rituals and |
| Not enough to be first but need to be first in the mind. | | | | Navigation. |
| 8. The Law of Leadership is the Law of PR. Building | | | | 7.Orange has appropriated a colour. Absolut branded |
| buzz makes news. Being first in a new category | | | | 'spelling error'. So it's variants are Rasberri, Vanilia, |
| makes news. Not being better than your competitors. | | | | Kurant and so on. The brand needs to own something |
| 9. Law of Profits. You can sell anything if it's cheap | | | | else besides the logo. Absolut has also branded the |
| enough. To make money you need a brand. | | | | shape of its bottle. |
| 10. Motorola invented the cell phone. But Motorola put | | | | 8.The icon of the 'Idea' brand is the 'Sumo Wrestler'. So |
| its name on a variety of products. In the last 10 years | | | | if one removes the logo and keeps only the Sumo |
| Motorola has achieved a sales of $ 289 bn. And a net | | | | Wrestler the brand 'Idea' will be recognized. |
| profit margin of less than one half of one percent. It is | | | | 9.Brand creates community and belonging. |
| now in the process of getting focused. It has sold its | | | | 10.Louis Vuitton was renovating its store in Paris. To do |
| satellite and other businesses. Nokia too once made | | | | that it created a façade in the shape of its |
| everything including paper. But it decided to focus on | | | | luggage bags and accessories. The people |
| cell phones and has now dominated this market. Nokia | | | | remembered the façade. In fact they identified |
| in the last 10 years achieved a sales of $ 193 bn. And | | | | with it. To the extent that when it was going to be |
| a net profit margin of 11%. | | | | pulled down after 2 years when the renovation was |
| 11. What makes India successful today ? High | | | | complete there was a demonstration outside the store. |
| intelligence and low wages. Success will turn the low | | | | 11.The Tiffany Box is trademarked. The shade of |
| wages into high wages. As a result business will move | | | | Pantone colour used for the Tiffany box is owned by |
| from India to China. U.S.A. is a country with medium | | | | Tiffany. Therefore one needs to get permission from |
| intelligence and high wages. It is successful because it | | | | Tiffany if one wants to use the same shade of colour. |
| has powerful brands. India will not become powerful if it | | | | 12.Branding is about consistency. |
| does not have powerful brands. If Indian brands don't | | | | 13.Today Pepsi owns the colour 'blue'. Pepsi took it |
| go global, global brands will come here and take over. | | | | away from IBM. If one wants to secure ownership |
| 12. The Law of Line Extension. You can't stand for | | | | then one needs to stick with it. |
| something if you put your name on everything. In the | | | | 14.The Peuguot car has branded the '0' in the middle of |
| Japanese electronics market everybody makes | | | | its car plate numbers. The story goes that the creator |
| everything. It's a line extension society. Nobody builds a | | | | of the Peugot car used to experience breaking the |
| brand. Everybody sells on price. Nobody makes | | | | number in the middle into 2 pieces for using the |
| money. The total consumer electronic industry in Japan | | | | crankshaft to get the car started. Because the |
| over the last 10 years has made revenues of $ 3 | | | | crankshaft had to pierce that number. So he thought |
| trillion but its net profit margin has been just 0.2%. | | | | that if the crankshaft had to be inserted into a '0' then |
| Whereas in America the revenues of the top 500 | | | | there would not be any breakage of a number into 2 |
| companies in the last 10 years has been $ 7 trillion and | | | | pieces. And so all Peugot cars have '0' in the middle of |
| net profit margin 6%. The automobile market in Japan | | | | their car plate numbers. |
| is more focused. | | | | 15.Ipod now has extended its branding to even its |
| 13. Japan has everything. Intelligent workforce, | | | | earplugs. By seeing a person with the Ipod earplugs |
| worldclass production facilities and so on. But no | | | | one can recognize an Ipod user. |
| Marketing. In the last 15 years the Japanese stock | | | | 16.There are certain words which are owned by |
| market has gone down by 59 % while the American | | | | Disney and are recognized by people as being |
| stock market has risen by 378%. The same thing will | | | | associated with the Disney Brand. These words are : |
| happen in Korea. They too will put their name on | | | | Fantasy, Dreams, Magic, Smiles, Happy, Creativity. The |
| everything and fail to build brands. IBM too put its name | | | | personnel in Disneyland use these words. These |
| on everything. It suffered a mainframe mentality. Did | | | | words are built into the lyrics of Disney songs. And so |
| not capture the position in the mind for PCs. In the last | | | | on. |
| 23 years has lost $ 15 bn. on PCs. It has now sold out | | | | 17.Colgate owned the smile but it has gone to Disney |
| to Lenovo. The leader in PCs is Dell. Ironically the 2nd | | | | and Mcdonald's. |
| year student of the University of Texas was pitted | | | | 18.One needs to create a difference in the mind. |
| against the world's largest viz. IBM and the student | | | | 19.We are too focused on the visual aspect of |
| won because Dell had one product, one market, one | | | | branding. We need to see how we can brand 'sound'. |
| distribution channel and has had an outstanding stock | | | | 20.The James Bond movie theme song. In fact James |
| market performance. | | | | Bond has branded so many things around it. The logo, |
| 14. Law of Divergence. As time goes on every | | | | 'Bond, James Bond', 'Shaken not stirred', the gadgets, |
| category will diverge. Telephones will branch out into | | | | the vintage scenes, the title introduction, character |
| becoming regular telephones, cordless telephones, | | | | names, the gun, the topic, the filming and so on. |
| walkie-talkies and cell phones. Similarly television will | | | | Visit the blog : management-gurus.blogspot. |
| diverge into Broadcast television, Pay-per-view | | | | |