In the future, branding and business in general is going to involve more subcategory creation and competition and less “my brand is better than your brand” competition. This is because, with rare exemptions, that is the only way to achieve real profitable growth. In category after category, real growth results not from market share increases, but from brands that have created a set of “must haves” that define a new subcategory and then manage that subcategory by becoming its exemplar. These brands continue to innovate and create a moving target. By managing the perceptions and attitudes toward the subcategory, the subcategory wins. I’ve previously discussed in my blog and my book, Brand Relevance a host of examples of brands that have created subcategories and won a subcategory battle. The Chrysler minivan, Asahi Super Dry, Enterprise-Rent-a-Car, Muji (the no- brand retailer), Patagonia, Zipcar, Tesla, Red Bull, IKEA, Gillette razors in India, the list goes on a...
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