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Building Strong Brands | Book by David A. Aaker | Official Publisher Page. Chapter 1: WHAT IS A STRONG BRAND? What do you need to be the best?
Concentration. Discipline. A dream. Florence Griffith Joyner, Olympic gold medalist.
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An orange.. is an orange.. Unless, or course, that orange happens to be a Sunkist, a name eighty percent of consumers know and trust. Russell L. Hanlin, CEO, Sunkist Growers. THE KODAK STORYIn the 1. You did not bring just a camera to take a picture; you brought the whole lab. All this was to change, thanks to George Eastman. Eastman founded a company that has had major worldwide influence almost since its inception.
To initiate and maintain an organization with such clout, Eastman required a variety of resources, including the intelligence to develop new processes, a good business sense, and a willingness to take risks. But it is unlikely that Eastman's success could have been achieved without his strong brand: Kodak. Kodak, with its block letters and bright yellow background, has been used for over a hundred years to crystallize and communicate the essence of Eastman's products and organization. The brand (and the company it represents) survives today primarily because of four factors: a commitment to quality, the generation of awareness, the fostering of loyalty, and - - most important - - the development of a strong and clear brand identity. Eastman's commitment to quality was evident even in his first product introduction. In the late 1. 87. The Eastman plates soon became known for superior results, particularly in weak light and with long exposures.
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A year after their introduction, however, trouble with a component caused some plates to lose sensitivity. Eastman's financially risky insistence on recalling the plates reflected his understanding that product quality was the fastest route to customer satisfaction. It also helped to initiate customer associations between the Kodak brand and quality, associations that persist today.
For Eastman's company, quality also meant ease of use. Over the years Kodak was associated repeatedly with photography products that produced reliable results without much effort on the consumer's part. In 1. 88. 8, Eastman began marketing a camera that made photography accessible to all, not just to the committed artist.
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The camera, which sold for twenty- five dollars, had none of the laboratory accessories usually associated with photography of the day: The novice had only to "pull the cord, turn the key, and press the button." For another ten dollars the pictures would be developed and new film reloaded at a "modern," efficient facility in Rochester, New York. One of Kodak's first ads, run in 1. It showed a picture of a hand holding a camera, with a headline written by Eastman: "You press the button, we do the rest" (see Figure 1- 1). The camera delivered on the promise - - and many Kodak products since have carried on in its spirit.
The folding Kodak, introduced in 1. Kodak Brownie, a simple camera launched at the turn of the century that became the company's staple product for almost eighty years. More recently, the tradition has continued with the Instamatic (an easy- to- load camera with flash cubes), introduced in 1. Kodak Fun. Saver (which is returned to photofinishers, who process the film and recycle the camera), introduced in 1. One by- product of such consistent long- term quality and innovation was increased awareness of the Kodak name. Promotions, advertising, and a ubiquitous logo also did their part to build awareness for Kodak. In 1. 89. 7, Kodak sponsored an amateur photographic competition in which twenty- five thousand people participated.
In 1. 90. 4, the company sponsored the Traveling Grand Kodak Exhibition of forty- one photographs. In 1. 92. 0, it found scenic spots along highways and erected small "Picture Ahead!" road signs to alert motorists. The result of such efforts plus ongoing advertising campaigns has been to increase consumers' familiarity with the Kodak name and its yellow signature logo. Few people can see the Kodak symbols without the positive feelings that accompany the familiar, and one of the first things that come to mind when the subject of cameras, film, or family photos is raised is the word Kodak. Kodak's strong awareness and presence worldwide can also be attributed to an early decision to distribute its products outside the United States.
Only five years after the Kodak camera was introduced in the United States, a sales office was opened in London, and it was quickly followed by offices throughout Europe. In 1. 93. 0, Kodak had 7. This dominance has decreased very little over the years. Kodak has a set of associations that provides a distinct image and the basis for a loyal relationship.
The strong Kodak identity, backed by decades of products and marketing, can be summed up with two words: simplicity (supported primarily by product features) and family (supported primarily by marketing communications and visual imagery). Around the turn of the century, Kodak introduced two characters - - the Brownie boy and the Kodak girl - - to represent its products. They created not only a sense that the camera was easy to operate (because even a child could use it), but also an association with children and family. Kodak's early advertisements showed settings that could be easily recorded on film, especially family scenes with children, dogs, and friends (see the 1. Figure 1- 2). During the Kodak hour heard on radio in the 1.
A 1. 96. 7 award- winning Kodak commercial featured a couple in their sixties cleaning the attic. They find a carton of old snapshots showing them in their twenties and in the years that followed - - getting married, enjoying their honeymoon, having their first child, and attending the graduation of their son. The commercial ends with the woman, now a grandmother, running to grab an Instamatic to take a picture of her new grandchild. Because of repeated marketing efforts like these - - supported by an unmatchable set of quality products - - consumers have come to view Kodak as a family friend who is always around to help enjoy the good times.
This image has been a key factor in cementing customer loyalty for Kodak. An indication of Kodak customer loyalty is the brand's resilience in the face of misfortune. For example, the Kodak Instant Camera (introduced in 1. Polaroid) had captured one- third of the instant camera market after one year. However, the company was forced to discontinue the product in 1. Polaroid. Kodak's forced withdrawal of a product from a market it virtually owned is about as bad as it gets. Many brands would have been irrevocably tainted by such a calamity.
The fact that Kodak survived this debacle is a tribute to its innate brand strength and to its handling of a painful situation. Every camera owner was invited to return their Kodak Instant Camera in exchange for either a Kodak Disk Camera and film, fifty dollars' worth of other Kodak products, or a share of Kodak stock.
Kodak thus used the incident and the surrounding communication opportunities to reinforce Kodak associations and to support the Disk Camera. Contexts change, though, even for Kodak. Its challenge for the next century is to stretch the Kodak brand name, known for traditional cameras and films, into the world of digital imagery, which is expected to become the company's prime business area. The Kodak name, with its tradition and connection with special times and family scenes, will need to adapt to an innovative, high- tech image to support products such as the Photo CD (which will store photographic images digitally and play them back on a computer) and the Copy Print (which will instantly provide large copies from a print without a negative). This need to adapt, faced by a host of strong brands in different markets, is discussed in detail in Chapter 7.
Another problem faced by Kodak is aggressive price competition in the film business, coming in part from private- label (or "retail") brands.