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Brand Relevance: Making Competitors Irrelevant, by David A. Aaker
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Branding guru David Aaker explains how to eliminate the competition and become the lead brand in your market. This ground-breaking book defines the concept of brand relevance using dozens of case studies - Prius, Whole Foods, Westin, iPad, and more - and explains how brand relevance drives market dynamics, which generates opportunities for your brand and threats for the competition. Aaker reveals how these companies have made other brands in their categories irrelevant. Key points:
- When managing a new category of product, treat it as if it were a brand.
- By failing to produce what customers want, or losing momentum and visibility, your brand becomes irrelevant.
- You can create barriers to competitors by supporting innovation at every level of the organization.
- Using dozens of case studies, this book shows how to create or dominate new categories or subcategories, making competitors irrelevant.
- Aakers explains how to manage the new category or subcategory as if it were a brand and how to create barriers to competitors.
- The book describes the threat of becoming irrelevant by failing to make what customers are buying or by losing energy.
- Sales Rank: #32042 in Audible
- Published on: 2012-07-31
- Format: Unabridged
- Original language: English
- Running time: 710 minutes
Most helpful customer reviews
12 of 13 people found the following review helpful.
Highly overrated
By Evan Miller
I'd like to throw some cold water on the reviews posted so far. I feel duped by the surfeit of 5-star ratings on Amazon as well as the endless litany of Praise From Important People on the book's jacket.
First, I do think there are good ideas to be found in this book. To make some real moo-lah you want to create a new category or sub-category. OK, got it. The creation of new categories is well-covered in other books, but I guess Aaker's contribution is to tout the creation of a sub-category from an existing category. Not exactly an earth-shattering revelation, but if you work at BigCo it might make the message of radical innovation more palatable.
The writing style and organization of this book are quite bad. First, the writing style. It appears that the author is capable of only one metaphor in marketing, and that is "winning the war". Everything is about "winners and losers", which seems to me at odds with the central premise of creating a new product category -- which create winners without necessarily making losers of existing players.
There is an unnecessary amount of jargon in this book. Instead of simply saying, "when other firms enter the market," he refers to "a brand preference context emerging." What?
I found a number of factual and typographical errors in the book. It becomes quickly apparent that the author is a "sales guy", not a "product guy". Every product introduction fits into a neat narrative, either succeeding wildly or being "too little, too late." There's really no depth of understanding about products or product psychology. I found it particularly troubling that he referred to IKEA furniture as "high quality." Even the folks at IKEA know that their stuff is not very well-made. That's part of their product positioning.
And now, the book's organization. It's terrible. The book starts, rather mysteriously, with a long-winded narrative about Japanese beer market share changing over time. It's up to you to figure out why you should care. Then there's a chapter on cars and a chapter on food. This would make sense if the author had a deep understanding of the psychology of car-buying or food-shopping, but it's basically a collection of unrelated "war stories" and market-share spanning a century. The Model T. The Porsche. The Edsel. The Yugo. The Volkswagen. The mini-van. Electric cars. What do they have in common? They're all cars! It would make a lot more sense to organize the stories according to concepts (such as "creating a new category"), but I guess that would only leave two chapters. As it is, organizing the book around industry will only be of interest to people in those industries -- except not, because again, he shows only a superficial understanding of the products themselves.
I'd like to go on, but I've only made it 40% through this book and I really don't want to spend any more time thinking about it. I want to give the book 2.5 stars but I am feeling charitable and will round it up to 3. If you want to buy books with actual content and original examples that cover the same turf, I recommend Blue Ocean Strategy by Kim and Mauborgne and Different by Youngme Moon. The latter exhibits the deepest product psychology of any marketing book I've read. Highly recommended, unlike this book.
9 of 11 people found the following review helpful.
How to innovate to stay ahead
By John Gibbs
Success in business is not about winning the brand preference battle so much as the brand relevance war with an innovative offering that achieves sustainable differentiation by creating a new category or subcategory, according to David Aaker in this book. Conversely, brands often decline, not because they have lost their ability to deliver or the loyalty of their customers, but because they have become less relevant.
The book goes on to describe numerous examples of companies which have gained substantial competitive advantages by creating in the minds of potential customers a new category or subcategory of product. Examples from the field of retailing include Muji, IKEA, Zara, H&M, Best Buy, Whole Foods Market, Subway and Zappos. Examples from the automobile industry include the Toyota Prius, the Saturn, the Chrysler minivan, the Tata Nano, Enterprise Rent-A-Car and Zipcar.
Creating brand relevance is a matter of framing new categories and sub-categories and influencing customers' perspectives by creating mental associations. To create new categories, an organization must be involved in finding concepts, evaluating them, using them to define new categories, and creating barriers for competitors. All is not lost if a company finds itself becoming irrelevant; the author gives plenty of examples of companies which have recovered relevance through renewed innovation.
There are numerous other books available which discuss the importance of differentiation, but none describe it quite in the same way as the present author does. Differentiation is important, but a key aspect of business success lies in communicating the differences to the target market in such a way as to excite ongoing interest. This book is a bit longer than I would have liked, but the author's advice and conclusions seem to be very pertinent.
1 of 1 people found the following review helpful.
2011 Best Business Book
By Strategy And Business Magazine
The first thing a reader notices about Brand Relevance is how many of today's power brands have already made good on its central concept: Brand preference has long ceased to be a powerful driver of marketing success. Brand success, therefore, requires something more. That something, according to David Aaker, now vice chairman of Prophet, a marketing consulting firm, "is to redefine the market in such a way that the competitor is irrelevant or less relevant, possibly by making the competitor's strengths actually become weaknesses." This requires creating brand relevance by carving out a new category or subcategory for your offering that has these key characteristics: a weak or nonexistent competitor set, a distinctive definition, a value proposition, a loyal customer base, and, perhaps most importantly, barriers to competition.
In defining the characteristics that enable some brands to surge past others, Aaker brings an academic's eye to the question of why some brands transcend their markets, and the result is a book thick with examples and lessons. One of the prime examples that Aaker uses to describe brand relevance is, of course, Apple Inc., particularly its roster of "i" products. Not only are they great products in and of themselves, he writes, but they also create substantial barriers to entry that keep other brands from competing directly. Nowadays, there are plenty of smartphones besides the iPhone, MP3 players besides the iPod, and tablets besides the iPad, but Apple's products are also part of the larger iTunes ecosystem of audio, video, and apps. That's quite a barrier. As Aaker points out, each Apple innovation also builds on existing ones, to make the company a "moving target," which is a core component of ensuring that a brand is continually relevant.
Aaker also writes extensively about other breakout brands, such as Toyota's Prius, but many of his example products are decidedly more prosaic. If you market toothpaste, you will be able to read this book and get ideas for how to break out of the mold. (In fact, Aaker devotes specific attention to the toothpaste category.)
Additionally, the book offers a comprehensive look at the kinds of factors that can make a brand relevant, which sometimes means looking at an established category such as car rentals in an entirely new way. Aaker cites Zipcar Inc., whose founders recognized that sharing a car makes more sense than owning one for some people, as probably the brightest example of the brand relevance concept.
Started in 2000 in Boston, Zipcar had 350,000 members and 6,500 vehicles by 2010, focused mainly in urban centers and on college campuses. Members can reserve cars minutes before they need them, anytime, day or night. Although Aaker points out that the rest of the industry has responded by developing "more flexible" ways to rent, Zipcar has maintained its relevance not only because of its service, but because "rather than being about renting cars, [Zipcar is] about urban life and the freedom of not owning and maintaining a car but still having access to one. In that spirit it provides a way to cope with urban living in a fun, upbeat, and environmentally sensitive way." It's hard to see how an Avis or a Hertz could capture the same magic, even if it had programs that offered identical benefits.
Other ways that brands can be relevant include providing a unique customer experience (Starbucks), being a brand that offers "over-the-top service" (Zappos), and, in an unintended tip of the hat to We First, aligning themselves with some greater good.
It's clear from these examples that the ability to make brands relevant involves much more than the marketing department. Thus, Aaker devotes the book's last chapter to dissecting cultures of innovation, such as General Electric's. Among other initiatives, the company inaugurated an Imagination Breakthrough program in 2003, which charges every GE business with proposing new products and services that could make $100 million within three to five years. "The rude fact is that not all organizations allow ideas to emerge, nurture those ideas, and implement them in the marketplace," he explains. Brand relevance may be a relatively simple concept; building it is not.
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