The brandgym blog

These guys love their sausage: Apple's new MacBook Pro

The new MacBook Pro laptops, revealed last week by Apple, are another demonstration that these guys just love their sausage/product. If you don't believe me, watch CEO Steve Jobs and product design genius Jon Ive launching the new MacBooks like a couple of enthusiastic kids/geeks showing off their new toys.
 
Many people who analyse Apple's success focus on the emotion/sizzle of the brand, suggesting customers are primarily buying into a lifestyle. But the reality is quite different. Sure, Apple is strong on emotional sizzle (cool, trendy, Californian, challenger, innovator etc.). But all this emotional appeal comes from, is embedded in and is reinforced by the products. Advertising is secondary, and is there mainly to celebrate and dramatise the product.

Take the new MacBook Pro as an examaple, and check out the sausage:

1. New manufacturing makes it lighter, and stronger: the MacBooks use the same manufacturing as the MacBook Air, which is, as Steve Jobs himeself says, very cool. Rather than building a frame and case, like a conventional computer, the MacBook Pro is made from a solid block of aluminium, which is cut away.

This is no lifestyle marketing company. This is a business that really cares and even gets its rocks off on good old engineering,
 

2. Glass trackpad: the new trackpad allows you to "pinch" photos to make them smaller or bigger, like the iPhone. Swipe 2 fingers left or right to move along in your photos. And there is no separate button to click, like on a mouse. You just tap the trackpad on the right for right-click, left for left-click.

3. Better performance/same price: more memory, better graphics (good for gamers) and all this for the same price

4. Even sexier "feel": Apple really work on the way their products feel. Its no coincidence they make an MP3 player called the iPod Touch. And the new MAcBook Pros are no exception. The edges of the cover have bevelled edges that make it look and feel smoother, and more compact.

5. More environmentally friendly: the new laptops also get a Gold Award from the EPEAT

 

So, all in all, one helluva lot of sausage. And this should help Apple keep up the impressive momentum on Mac sales. As the graph below shows, they have been growing strongly, with the Q1-Q3 sales this year equal to the whole of last year.

And, as my daughters did their own science project with a magnet and my old MacBook Pro (key learning: magnets and hard-drives don't mix), I have the perfect excuse to buy a new one!

Gillette shows that the best needs to get better

On the Brand Fuel Express conference one speaker was arguing the old line about "Forget the product, they're all the same. Its all about emotion". You won't be surprised to hear that I think this is plain wrong.

In most categories today there is intense competition, from other brands and retail own label. This means that the so called "product parity" is something you have to fight for. Put another way, you do have to "run just to keep up". However, many companies seduced by the purveyors of sizzle-based branding make the fatal mistake of cutting corners on the product, and so running the risk of no longer even being a parity product.

Even better of course is to invest in having a superior product. And the ad I saw this week from Gillette for their Fusion razor system  reminded me just how good they are at this. They invest billions of dollars in R&D to ensure they stay "The best a man can get" when it comes to shaving. The press ad sells "8 years of shaving innovation" that make the Fusion to be even better then the previous razor, the Mach 3. It talks of the many features such as 5 blade shaving, enhanced lubrastrip, comfort guard and Power-Glids blades. This is a smart way of encouraging existing Gillette users (like me) to "trade up" to the better but more expensive Fusion.

Thinking about it, the shaver market is a bit like the Formula One racing circuit. Ferrari, BMW and McClaren are all investing millions of dollars to shave a fraction of a second off the time it takes to go round the track. But they all have to keep up this innovation pressure to have a chance of winning. And over time, the changes add up to a big improvement. Its the same with Gillette's battle with Wilkinson Sword. You just have to keep on innovating. Relying on emotional sizzle alone aint going to be enough.

More on how Gillette have used product innovation to drive up their UK business from £128 million in 2002 to £180 million in 2006 in an earlier post here.

Apple pull the 3G iPhone out of their hat

Before I get on with posts about last week's Brand Fuel Express, I have to squeeze in a quick one on the unveiling of the new 3G iPhone. This was announced yesterday by CEO Steve Jobs at the Mac Developer Conference. What I think is so impressive is not only the amazing product. Its also the launch marketing, that Apple have turned into an artform.

1. Renovation Waves
Apple are repeating on the iPhone what they did with the iPod. They launch, and then follow up with wave after wave of new news. On iPhone it was:
Wave 1 - May 2007: launch
Wave 2 - Jan 2008: 2.0 software with new features
Wave 3 - April 2008: 16GB version launchd
Wave 4 - July 2009: 3G iPhone

 

2. Big-bang launch, kept under wraps
Apple do an amazing job of creating a firework display of a launch, but keep the whole thing secret. When I checked the Apple site at 6pm UK time, there was not a thing about the new iPhone. And I couldn't find anything on the internet, apart from one lousy, blurred photo of an outer case on a gossip site.

A couple of hours later, after Steve Jobs announcement, and "BANG!". It was all there. 3D photos, the new TV ad, features.

And it was the same orchestration on O2, the UK mobile network partner. 6pm. Rien du tout. 8pm and there teasing you, and asking you to come back the next day.

Which I did of course. And was pleased to see that I can upgrade to the new phone for free.

 

3. Better and better sausage
Don't let anyone tell you Apple and iPhone is about lifestyle and image. Its all about the product design, or sausage. This new phone fixes the main gripes with the first version of the iPhone:
- Adding faster 3G capability
- Cutting the price: now free on some of the O2 tarrifs
- Improving compatability with corporate "push" email, so Crackberry users can now fight back when the IT guys says "iPhone? iDontThinkSo"

And check out some of the facts about how much people like the current iPhone:
- 90% customer satisfaction
- 98% of iPhone users are browsing the internet - this is a revolution, the first true mobile internet phone
- 80% percent are using 10 or more features (how many do you use on your normal phone.. text, call...then?)

I think the combination of an already amazing product, plus these new feautures will give iPhone sales the kick up the arse they need to hit or get close to the target of 10 million phones sold by end 2008 (currently at 6 million).

4. The product slogan
Apple have perfected the product slogan. A short and snappy summary of the product features. Like an ad slogan, but for the product. So, the first iPod was "1000 songs in your pocket". The MacBook Air was "Thinnovation". And the new 3G iphone is "Twice as fast. Half the price".

This is more than an ad slogan, as I think they start with the product proposition/vision from Jobs and Ive (head of design). Then they work on how to make it happen.

I'll post again in a month, when I get my hands on my new Apple toy...!

Aston Martin - Small is Beautiful

Here's a post on Aston Martin, inspired by an article I read in a French magazine, L'Optimum. The article featured an interview with the CEO, Ulrich Benz, and had several nuggets of insight about their way of brand building:

1. The power of independence: Benz actively encouraged the sale of Aston Martin by Ford. He says: "True luxury today is the power to say no, to not have to follow the codes of the market. In a group we might have to say 'no' to something on the basis the customer won't see. But its this demanding attention to detail our customers buy."   

2. Fanatical attention to detail: a lovely little story about the seat adjustment in the new DBS. Benz complained about the seats, and the supplier explained there was a variance of 2 to 3 mm in the production. He demanded this be fixed, by buying a new and more accurate machine, at a cost of £100 000. Its not so much the seat itself that matters. Its more what this says about the company's attention to detail. 1000 of this little details does add up to make a difference.

3. Leading the customer: Benz is a guy who has a vision about his brand. And he does NOT believe that the customer is always right when it comes to innovation. For example, Aston took out the gear shift from the cars with Sportshift gear changing, replacing it with a control on the steering wheel (bit like a Formula 1 race car). Research showed some customers also wanted the conventional gear shift, to which Benz said "From the moment the new system worked perfectly, there was no need for the conventional gear shift. For those who don't like this, they can go and look elsewhere".

This is a brand with a point of view. One that listens to customers, but also leads them. A tricky one to pull off...the line between brand vision and brand arrogance is thin!

4. Let the product do the talking: Benz talks of wanting to fight against the dominance of advertising in the car market, that tries to "impose a point if view, at the cost of millions". He wants to find alternative ways of brand building, that rely more on PR. And to do this, you need a bloody brilliant product that is PR'able, one that has a true story to tell. And Aston Martin is clearly one of those brands.

Samsonite show a product is worth a thousand ads

I always looked down a bit on Samsonite. I thought of them as making sturdy, but dowdy and un-exciting luggage. So I laughed when I heard about them trying to go upmarket with a range called Black Label. Samonsite going upmarket? You gotta be kidding.

Then I cried when I saw the first bit of advertising in 2006 featuring Isabella Rosselini. Check out that bag... doesn't that look, like, ugh! And the whole private jet thing is just trying sooooo hard to say "Look at us. We're flying upmarket". I know the tagline is "Life's a journey". But it does feel like one of those "Whoops! My strategy is showing!" sort of ads.

But then last month I saw another ad from Samsonite that had me salivating. This one features uber cool photographer Knick Knight with what looks like a really, really cool black computer bag.

I found it hard to believe, but I was actually considering Samsonite as a serious option. I even went to look at the website. What the hell was going on?

1. A product's worth a thousand ads
If you want people to re-consider your brand, to re-evaluate it, then nothing works like product innovation. In this case, the new Bayamo range really is beautifully designed. Sleek, sophisticated, with some nice design features. But without being too flashy. It drew me into the Samsonite brand like a magnet, and got me to visit the website.

2. You need the right kind of sizzle
Whereas the Isabella ads tried to add emotional sizzle but, for me at least, failed, the new one with Nick Knight works better. He has the design and style values they are trying to portray. He is also someone who has to travel a lot, so there is a truth in why luggage matters to him.

3. Tell a true story
A nice touch is that the Nick Knight shoot actually tool place in his studio, which adds a bit of authenticity to the story. It feels more real, whereas the Isabella ads look staged.

4. Is private equity making the brand "fitter for business"?
I always try to get the business results of any brand I write about. At the end of the day, that's what matters most. Too often, marketing seminars and blogs are a "beauty contest" where people talk about what they like and admire in branding, rather than what works.

I dug around for some data, but couldn't get recent results. But the reason for this lack of data was interesting. Samsonite was bought by private equity company CVC last July. My guess is that this move has helped sharpen up Samsonite's act, and got the brand mix working better. Its certainly what CVC said they were going to do:

"CVC expects to work with the Samsonite senior management team to further invest in the brand, product development and the distribution systems to achieve the organic growth potential."

I'll watch with interest to see what happens to Samsonite. But based on their latest product news, and the arrival of CVC, my bet is that the company will be sold to one of the big luxury goods groups in a couple of year's time for a hefty premium.

Speedo's Space Age sausage: the LZR Racer

I can still remember when Speedo was just a brand of pretty basic swimming trunks for blokes. But no more.  They are now a creator of space-age swimming suits that provide a genuine edge to athletes who use them. The latest of these amazing products is the Fastskin LZR Racer.

I like a lot about this new product:

1. Genuine benefits
Swimmers wearing the new suit broke 15 world records in just one month. I love the Speedo homepage that announces "World records being broken daily". This is a real bit of sausage/product. It has 10% less drag than the previous suit, and allows 4% faster turns. Sounds small, but in a sport where every millisecond counts, this is big news.

Just look at the list of features that they tell in a fascinating product story:
- Core stabiliser: corset effect pulls in the core of your body to get the best position. Could do with that myself when I look at the photos of me on the beach
- Bonded seams: welded ultrasonically to avoid a rough seam
- Low drag panels: laminated onto the base fabric

2. Investment in technology
All this sausage required a load of research & development, which makes it very hard for competition to copy it. This included NASA scientists using aerospace technology to test the drag of 100 different fabrics. And suspending swimmers in a water flume and using thermal imaging to look at the water resistance.

3. PR-able
What a great story there is to tell with the LZR Racer, that sells itself. I learnt about the product through a whole half page feature in the Guardian newspaper with a great headline: "How Space Technology helped create a record-breaking swimsuit".

4. Recruitment magnet
Another great advantage of investing in product innovation, and basing your brand on substance not spin, is that recruitment becomes easier. Instead of a generic advert about "Great opportunities", "Loads of responsibility", "brilliant brands to work on", Speedo features the LZR Racer as a tangible proof of its commitment to innovation.

I posted before on this, talking about the Dyson recruitment ads that invite communication people to join them and have "a more honest future. The products are so good, comms folk don't have to make up spin to sell.

So, Speedo is definitely in the running for "Sausage of the Year"! I think I'll collect great product ideas as 2008 goes on, and we'll have a vote at the end of the year....

Back to basics, as functional food flattens

"Back to basics" is a really interesting trend. As the world gets more and more advanced technologically, there still seem to be some opportunities to go the other way. I posted recently about the decline in gym membership, as people perhaps realise a better way to burn calories is to do some gardening or partake in other forms of physical activity. Then there's the return of traditional Delia Smith to the top of the best-selling cookery book list.

And now comes news that the once explosive growth in "functional foods" has fizzled out in the UK. According to Mintel, this sector grew just 3% in 2007, compared to an average annual growth of 15% between 2002 and 2006. The article suggests that consumers are starting to get fed up with paying a heavy premium price for claims they're unsure of. Mintel said "Consumer cynicism over health claims made and the price premiums charged by some manufacturers are the key obstacles that stymie the development of a wider purchasing repertoire of functional foods."

A few interesting learnings from this news:

1. Back to basics
Rather than paying a high price for a fancy new product with claims you're not sure about, it seems people are going back to simpler, easier to understand alternatives. The continued growth of innocent smoothies is an example of this. You can get your head around "2 of your 5 portions of fruit & veg" more easily than some fancy scientific ingredient. Also, people are looking for products that fit easily into their daily lives, instead of having to add a new habit. So, I can eat a bowl of porridge oats to help lower cholesterol, instead of having to add time, hassle and expense to drink a shot.

2. If you do go functional, get in early
The yoghurt drink market is one that has gone into decline, with the biggest casualty being Danone's Danacol that has been withdrawn. This product was perhaps just too late onto the over-crowded shelf of "shots" (those little tiny bottles). We already had Actimel, Flora Pro.Activ and Yakhult. There wasn't space for one more shot it seems

3. Have a clear benefit
The article suggests lower marketing spend is part of the reason for declining sales, saying that "Functional foods have traditionally benefited from hefty budgets due to the challenge of communicating product benefits". Perhaps the problem is not the lack of budget, but rather the lack of benefit?! Or at least the lack of a believable benefit.

4. Claims count a lot
One high profile casualty in the functional foods shake-out was Unilever's Adez brand of soya juice. This new brand had a hot ingredient, a nice tasting product and a pretty big launch budget. But the amount of soya per serving was not enough to make a really strong claim on the benefits of the brand, with the brand idea the rather vague "be strong".

Knorr Vie fruit & veg shots did best in markets like Holland where they could support a "2 of your 5 a day claim", and less well in places like the UK where this was not possible. And the growth of Flora/Becel ProActiv is supported by a massive and long term investment in scientific research and claims support.

Its probably not the end of the line for functional foods. But consumers are clearly wising up and starting to ask "where's the sausage?" They need clear, relevant and well supported health benefits if they are going to cough up extra cash.

Singapore Airlines' Sausage in the Sky

The launch of the new A380 by Singapore Airlines is a jumbo sausage in the sky. Or maybe even bigger than that.

The first flight to London of this amazing new plane a couple of weeks ago has generated great headlines for Singapore Airlines, with a Google search returning 920 000 results. And the video of the new plane's interior posted on You Tube by the airline so far has 83 000 views. And you can see why. This thing is pretty bloody amazing.

This double-decker plane takes comfort to new levels. Business Class has much bigger, plusher seats. And if you can afford a First Class fare, you get your own bloomin cabin! Check it out below:

I think Singapore Airlines have been quite clever in their promotion of their new product.

First, they have invested to get a 'first-mover' advantage with the new plane. BA will also launch the A380, but not until 2012 (and that's if they finished sorting out the baggage at Heathrow T5 by then). Virgin follow a year later in 2013. The challenge with any new bit of sausage/product news these days is the speed with which is is copied. But it seems Sinagapore Airlines have a few years head start.

Second, they have made the most of this advantage by making the product launch an event. They have promoted the new product, including online advertising like the one on the left. This marketing makes sure that the Singapore Airlines brand is well linked with the new aircraft. Notice how they rather cheekily call it the A380, with no reference to Airbus!

Third, this launch does show the power of a hero product to build your brand. I had a pretty good image of Singapore Airlines thanks to their 'Singapore Girls' communication campaign. But the attraction of flying the A380 if I have to go to Singapore or Sydney is much more magnetic than any bit of advertising.

Anyone lucky enough to fly on this thing, please add a comment on what it was like!

"Natural cola" - like seeing your parents on a nudist beach

Pepsi's latest brand extension idea strikes me as a bit bizarre. Pepsi Raw will be a premium cola, with the main support for this seeming to be its more natural recipe. This recipe uses cane sugar instead of the more processed high-fructose corn syrup. Mmmm.

But if you want something more natural and/or more premium don't you buy another type of drink? Will anyone really pay more for a less artificial cola?

What makes the Raw story all the more strange is that Pepsi have done a great job at creating a portfolio of drinks brands, including more healthy ones. They now own PJ Smoothies and Tropicana in the UK. This means they have a much lower proportion of their drinks business in cola than Coke and this is reflected in much better stock price performance over the last 5 years.

Coke seem to have the same idea of making cola healthier, with the launch of vitamin-enriched Coke. Weird huh? Again, if you want a vitamin boost would you really think of a Coke as a way of getting this? Offering Light versions of cola made sense, as it made them more "permissible". But actively promoting health benefits seems a stretch too far.

A learning from this is to be honest about who you are and celebrate this. Coke and Pepsi are about enjoyment, taste and refreshment, not health and natural-ness. Any extension should build on these truths, and not force the brand into being something it really isn't.

Colas going healthy and natural? Its like seeing your parents on a nudist beach. It might be natural. But it just doesn't feel right.

iPhone hits the UK - and boosts Apple's profits

Tonight at 6.02 pm

Its here.

And I gotta have it. Now. I got it. It truly is a thing of beauty. Super easy to set up and use. Seamless integration of your contacts and the phone. Built in iPod. And photos. Lovely.

So I've just cancelled my Vodafone contract, which cost me a lot as it has 12 months more to run (I really am an Apple-aholic). But there is no way I'm waiting a year to get my hands on this beauty.

The European launch looks set to add momentum to Apple's already strong growth, who reported eye-popping 4th quarter results (Jul-Sep). These results suggest that the iPhone doomsayers, of which Laura Ries and her dad Al have been the most vocal, were way off the mark. And you, dear readers, were right. In our blogpoll, the majority of you predicted the iPhone would be a hit, with year 1 sales of 5 million+.

iPhone sales since June 29 launch are 1.3 million. Its already the 4th best selling phone in the USA. And the US wireless network AT&T reported record new subscriber additions of 2 million, up 47% vs. YAG! And get this...40% of the iPhone subscribers were NEW to AT&T.

The Ries duo may also have to eat a big slice of humble pie each when it comes to their predictions that the iPhone would damage the core iPod and Mac businesses: "The iPhone is a distraction not an opportunity for Apple. A novelty product built on the technology whims of Jobs" Laura moaned. Well, total Q4 Apple brand sales were up + 28% to $6.22 billion. Mac sales were up 34% and iPod sales up 17%.

Now, damaging the core is a valid concern with extensions that are i) small, ii) not dramatising the core brand idea. But the iPhone is a "Hero extension": building the brand, and growing business. It also has a magnetic effect at drawing new people into the Apple store online and on the high street, including new Apple consumers. A whopping 50% of Mac buyers in Q4 were 1st time buyers.

A great example that the best way to build a brand is to build the business.

Now, I have to go and queue!