Yesterday, I wrote how great organization like In N Out Burger in Tempe thrives. I said part of the reason is they know what they stand for. Unlike other fast foods, In N Out hardly changes menu and stick to what they believe working. Other restaurants in the same industry play catch up amongst their competitors in order to stay interesting.
Brand Leakage
That’s exactly like the cell phone industry. If you swap logos between Nokia and Motorola, it’s very hard to differentiate which brand makes what phone. The only exception to this rule is the iPhone and that’s one reason why Apple thrives.
When looking at the iPhone, you know it’s made by guys at Apple. You know without seeing the logo, it’s an Apple product. There is consistency among its designs of iPhone, MacBook, iPod… and unlike Nokia, Apple doesn’t have to come up with new devices every few months.
What happens if Apple began making more products like Nokia? Apple no longer becomes the Apple we know.
Every time Carl’s Jr, Burger King or McDonald’s introduce new items, they are at the risk of losing the most loyal customers in exchange for new customers. The most loyal ones draw themselves to a brand because the organization maintains what people were originally drawn to. Once they see you no longer maintain the same idea in your product genealogy, you risk losing the most loyal customers. Whereas with Apple, people anticipate for their new product launch because they don’t come up with new items just to keep up with others. Apple’s customers yearn for new releases, but Motorola can’t pull the same excitement for their product launch.
How AMEX Lost Its Prestige
It used to be “pretty cool” to be an American Express member. American Express customer service department continues to take care of customers today better, after adding airline card, student card, Blue card and it sought to increase market share, the most loyal fans left AMEX. Once you American Express begin catering to the middle of the curve, it began losing everything they once stood for.
This is what happened to Nokia, too. And today, Nokia only builds average phones, still trying to cater to the middle of the curve. Carl’s Jr and Burger King are becoming more and more average while In N Out Burger continues to spread the same magnetic attraction that they originally stood for when it was first built.
Your Brand Is Everything You’ve Got
You can either stand for something, or try to be like someone else by catering to the middle of the curve and get eliminated. Innovation and product extension isn’t the same thing. That’s only the option given to the industry leader, but for everyone else, it’s one or the other, and rarely both.
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