ETD: 804 What is a "brand?"; Technology Encyclopedia - RFID; American Express Luxury Survey

[E-Tailer's Digest]

  E-Tailer's Digest --- Everything for the  Retailer
  Issue #0804               July 27, 2004
  George Matyjewicz, Moderator         mailto:georgem at gapent.com
  Published by:  GAP Enterprises, Ltd.  http://www.etailersdigest.com
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   CONTENTS

  [1]  Greetings
  [2]  What is a "brand?"
  [3]  Technology Encyclopedia - RFID
  [4]  American Express Luxury Survey

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  [1]  Greetings.
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Hi All:

Over the weekend I was speaking to an artist who wants to sell his art 
work.  Which got me to question his comment "that's my brand."  So I posed 
the question to Market-L.  The thoughts apply to any product or 
service.  What do you think?

List member Jan Owens is co-authoring a technology article on RFID and has 
some interesting comments.  IMHO, RFID will become part of our lives, much 
the same as bar codes are now.  We see it every day as we travel on some 
highways where they have the EZ-Pass express lanes (travel through at 
normal speeds).  The issue now is when?

Pam Danziger has authored a survey with American Express on the luxury 
market.  Interesting material.  Two key items - travel and fine 
dining.  Looks like an opportunity for a luxury dining cruise to exotic 
places, eh?

Tell us about your business which will remain  for posterity at 
our  "Members: Who Are You?" 
site.   http://etailersdigest.com/resources/members/index.htm And we have a 
form there for you to tell us about you.  As I said when I first proposed 
this idea, we have "known" each other for a long time, yet we often don't 
know anything about each other.   So, tell us who you are and what you do.

Now, let's get to everything for the retailer.

Sincerely


George Matyjewicz, PhD
Chief Global Strategist, GAP Enterprises, Ltd.
mailto:georgem at gapent.com
http://www.etailersdigest.com

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  [2]  What is a "brand?"
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Over the weekend, I was talking to an artist who wants to sell his art 
work.  I told him to test some other pieces that he has, as the ones he is 
trying to sell has a very limited market.

His reply:  "I can't change; that's my brand."

So the big questions is do you have to sell to have a brand?  What is a brand?

I posed this question to Market-L, the best marketing resource on or off 
the net, and got some interesting comments.  What do you think?

George

------------------º><º 1st reply   º><º-------------------

You do not have to sell anything to be a brand. PanAm has ceased to exist 
and yet is still a brand.

A brand is the set of values that dictate behavior. It is made of 
temperament and character.

Temperament is what you were born with, i.e., the genes. Temperament 
doesn't change. An Arabian horse is small and has a lot of endurance. Those 
traits of the horse's temperament are a part of its brand.

Character is the system of values one forms from the experiences of life. 
It can change but only slowly because changing it too fast may be construed 
as a sign that you didn't hold dear the values you discard. That would be a 
sign of absence of character...

When we work on brands in the business world we do not make the distinction 
between temperament and character, but, for a painter, I think it would 
work better.

Painters' styles change. Picasso had a cubist period before he developed 
his own. Kandinsky did paint recognizable forms and figures before he 
adopted a completely abstract style. The only part of their brand that 
didn't change was their temperament i.e., their perception of light, of 
colors etc.

But their character changed under the influence of life events such as the 
Spanish Civil War and the many women in Picasso's life, for example.

Character and brands are inherently complex. They cannot be simple, based 
on one or on a small number of values. The more values, the richer the 
brand. Your painter has latched on a few of his values and doesn't dare 
change them... In stead, he should be encouraged to explore all the values 
that comprise his character. That will give him a richer brand in the end.
-- 


Jacques Chevron - Partner - JRC&A Consulting - JP Group
Branding Strategy and New Product Development
URL: http://JRCandA.com

------------------º><º snipped - next   º><º-------------------

It seems to me that a brand resides in the minds of its beholders.  That's 
one of the reasons that, in most cases, companies and their products have 
brands that are largely ambiguous.  To the extent that a company can define 
their brand and consistently design their offerings congruent to their 
branding, they can be said to have a brand.

In the case that George cited, the artist doesn't really seem to have a 
brand except in his own mind.  Or, if enough prospective customers have 
seen his work, then he probably does have a brand, but not one that has 
been accepted.

------------------------------------
Jacques Werth, co-author
  "High Probability Selling"
Read the first 4 chapters on-line at:
http://www.highprobsell.com

------------------º><º snipped - next   º><º-------------------

IMHO, you don't have to sell to have a brand.

My understanding is that a brand is, in essence, the representation of the 
character of the concern. If we use the example of a local high-school, for 
example, their brand means to the general public a good place to learn and 
a school that is very community oriented. While one could argue that they 
are selling in terms of trying to get students, I've never once seen an ad, 
other than the generic "we're having an open house, come see why we're a 
good place to send your kids..."--certainly nothing that is trying to 
reinforce their brand, such as an ad with testimonials, or statements such 
as '<school> raised over $45,000 last year', etc.

It also comes to mind that every new company takes a while til it sells 
it's first something (maybe not 10 years, but still...), but the branding 
really starts from the moment the company comes into existence and others 
start to learn about it through some form of marketing, albeit paid or word 
of mouth.

My 2 cents.

Robert Mendelson
remdog99 at hotmail.com


------------------º><º snipped - next   º><º-------------------

I was thinking the same thing.  I think the artist assumes his "style" of 
art is his "brand".

Think Pollock and the paint flecks... anytime I see it and that very 50's 
color palette, I know it is Pollock.  But that style has to be widely 
recognized before it can be associated with the artists name... and does 
that style just typecast the artist?

Marna Bungers


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  [3]  Technology Encyclopedia - RFID
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'By the way, my compliments on your coverage of RFID technology.  I am 
putting the polish on an encyclopedia article co-authored with two 
operations faculty -- the article is headed for a technology 
encyclopedia.  For whatever reason, I have convinced them that it's not 
just the technology itself, but how/why a retailer will be motivated to 
purchase the systems that will determine how quickly RFID happens, and 
factors inhibiting the adoption (NOT just the initial cost, but also its 
reliability, application to the specific product, security and privacy 
concerns, etc.)  I'll send a copy in the next few weeks as I get the 
sign-off from my co-authors.

While I think this is a wonderful technology, it still has some kinks 
(signals distorted by products with certain metal components or some 
liquids;) standards questions; relative cost and advantages predicted; 
etc.  Recently, the Defense Department backed off requiring their suppliers 
to adopt RFID by a certain deadline as many manufacturers complained that 
the cost to them was not justified by any efficiencies or 
improvements.  Largely, I think that RFID benefits retailers more than 
manufacturers.  Since Wal-Mart is such a powerful retailer and very 
tech-savvy, RFID WILL happen, but it is mostly to their benefit in the near 
future.  The real problems of most manufacturers is demand prediction, as 
it affects inventory management.  However, high-ticket items that benefit 
from in-transit monitoring (e.g. expensive pharmaceuticals) have 
effectively used RFID more than low-ticket staples.

Like anything, making the sale is so much easier when the customer 
understands WHY they WANT the product!

-- Jan Owens

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  [4]  American Express Luxury Survey
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Today’s affluent consumers have a fresh perspective on the good life, 
according to the American Express Platinum Luxury Survey, a new study of 
the affluent consumer, conducted on the 20th anniversary of the Platinum 
Card from American Express.

According to the survey, more than half of affluent consumers (59%) receive 
the greatest personal satisfaction from experiences, such as fine dining, 
travel, entertainment, cultural/arts events and sporting events.  On 
average affluent consumers spent $10,060 on these luxuries over the past 12 
months.  Only 21% of those surveyed say they get the greatest satisfaction 
from personal luxuries, such as automobiles, fashion and jewelry and on 
average they spent $14,270 on personal luxuries over the past 12 months. 
Only 20% enjoy home luxuries most, such as furniture, kitchenware, and 
linens and bedding and on average respondents spent $12,300 on home 
luxuries over the past 12 months.

“In the real world, affluent consumers aren't relaxing poolside or eating 
bonbons,” said Peggy Maher, senior vice president and general manager, 
Consumer Charge Card, American Express  “They’re working long hours, 
juggling personal and professional lives, and are constantly pressed for 
time.  For instance, our affluent Cardmembers are looking to ease their 
busy, often hectic, lives with experiences that will make them feel 
special, whether it be a massage, a night out with fine dining and 
entertainment, or taking a luxurious vacation abroad.”

“Twenty years ago the affluent lifestyle was focused on having and 
obtaining more material things, but the ‘new’ luxury paradigm finds 
affluent consumers pursuing new life experiences,” said Pam Danziger, 
author of the book, Why People Buy Things They Don’t Need, and President of 
Unity Marketing, which conducted the American Express Platinum Luxury 
Survey.  “Today, affluent consumers are far more interested in living well 
and smartly rather than ‘keeping up with the Joneses’.”

Fine Dining and Luxury Travel Top List of Experiences

Those survey respondents who said they value experiences most spent an 
average of $26,401 on experiential luxury services in the past 12 months, 
more than double that of all survey respondents.  The most popular 
experiences are fine dining and luxury travel.

The majority of these affluent consumers (79%) said fine dining was the 
number one experience they enjoyed over the last 12 months.  Over 
three-fourths (76%) enjoyed fine dining once a month or more at a luxury 
restaurant and spent on average $5,990 on dining in the past 
year.  However, food isn't everything when making fine dining decisions: 
37% rate the reputation of the chef or restaurant as the top reason to 
choose a restaurant, 33% select a restaurant based on service or getting a 
good table, and 31% said outstanding restaurant reviews were the most 
influential factor.

These affluent consumers also travel often and in style: more than 
two-thirds (68%) took an average of six personal trips in the past year and 
spent $12,650 on average on personal travel.  And don’t expect these 
consumers to be logging into the office email and working on their 
vacations.  Relaxation is a top priority, with 47% citing relaxation and 
freedom from stress as the top reasons for travel.  Nearly all (90%) agreed 
that traveling was a desirable way to “break out of the day-to-day routine.”

When the affluent travel, the majority (56%) said creating memorable 
experiences was the most important vacation criteria.  Almost half (45%) 
received help over the past year creating those memorable moments with the 
use of a travel agent, personal concierge or other personal 
assistant.  This allowed them to take advantage of special VIP programs, 
gain insider access to special accommodations or obtain amenities available 
only on an exclusive basis.  Of those who took advantage of such VIP 
services, 70% said these special programs greatly enhanced or somewhat 
enhanced their travel experiences.

One fact to count on ­ these affluent consumers plan to enjoy more 
experiences in the future.  Eighty-seven percent said they expect to spend 
the same or more on fine dining in the next year and 81% said they expect 
to spend the same or more on personal travel.

The American Express Platinum Luxury Survey includes a quantitative survey 
among a random cross section of 870 affluent consumers in the U.S. with 
household incomes of $100,000 and above and who purchased or enjoyed either 
a home, personal or experience-based luxury—e.g., fine dining, luxury 
travel or entertainment—in the past 12 months.  The average household 
income of consumers surveyed was $175,000.  In addition, 491 of those 
respondents, who said they achieved the greatest satisfaction and happiness 
through experience-based luxuries, participated in an in-depth survey that 
explored experience-based luxury buying habits and attitudes.

Pam Danziger
www.unitymarketingonline.com

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