23christina

[23christina]

Bravo!

The $5 trench coat that became an icon

With a strong focus on quality, innovation, and exclusivity, Rose Marie Bravo was able to turn Burberry around and establish it as a leader in the accessible luxury fashion market.

PRODUCT LINES

One of the smartest moves Bravo made was updating Burberry's product lines. By reducing the number of outdated designs, Burberry was able to streamline its offerings and create a more cohesive image. This helped reinforce the brand's position as an accessible luxury lifestyle brand that was aspirational, stylish, and innovative.

Burberry also divided its products into two categories: continuity and fashion-oriented. This allowed the brand to appeal to both its core customer base and a younger demographic, while still maintaining its cachet.

Their most iconic item, the trench coat, has endured the test of time. I was surprised to learn that the coat was originally used for British soldiers and adventurers, because I associate it with British socialites and sleek professionals. I did some digging, and the price of the Burberry trench coat has increased significantly over the years. In the early 1900s, the coat cost around $5. The case mentioned that in the 2000s, it was $900. Today, the price for a classic Burberry trench coat ranges from $1,700 to $2,500, depending on the style and material. Definitely outpacing inflation!

ADVERTISING

Investing in advertising was also key for Burberry's success. They hired a famous team including photographer Mario Testino and creative director Fabien Baron. The 1998 advertising campaign helped to reinforce the brand's British heritage and sense of tradition. The introduction of Kate Moss as a spokesperson also helped to make the brand more accessible to a younger demographic.

DESIGN ELEMENTS

The most impressive thing about Burberry's transformation is how they managed to maintain their iconic design elements while still updating their image and appeal. Their iconic check pattern became even more popular with the introduction of new designs and materials, while still retaining the durability and quality that made them so popular in the first place.

QUESTIONS

One question I have is around the proliferation of Burberry brands. To me, the wide array of Burberry offerings dilutes the strength of the brand. A few years ago, I purchased a Burberry trench coat on a consignment website, but when it arrived, the tag said “Burberry’s.” I was not aware that pre-1997, the brand name was actually Burberry’s, and I was afraid it may have been a knockoff and returned it. I also often see Burberry’s offshoot brands like Burberry Brit at discount stores like TJ Maxx, which feels like a step down from how they would aspire to position themselves.

I am also curious whether the brand will resonate with Gen Z (see Romeo Beckham ad below). On one hand, their generation appreciates vintage fashion, so they could find a love for the classic trench and other timeless styles. On the other hand, they seem to be fascinated with creative, bright, nontraditional designs that feel opposite of Burberry's posh image.

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[23christina]

Absurd product ideas, ranked

This week's reading highlights the importance of considering the "five factors" when forecasting market adoption. A product with a strong relative advantage, high compatibility with existing values and experiences, low complexity, high trialability, and observable impact is more likely to succeed in the market.

Below, I've ranked each of the absurd business ideas from the second reading, taking the five factors into account.

#1

Sirius XM Radio

My take: People dislike commercials. Radio commercials are loud, distracting, and annoying. True music lovers are willing to pay a premium to appreciate good music – think of the collective cost of albums/records, concerts, band swag, and more. Sirius offered users an escape from the typical radio experience, and transported them to channels that catered to a wide array of listeners. My mom loves the ‘Highway’ country station, my sister loves the ‘the Coffehouse’ calm/cover station, and my partner loves the ‘Phish’ jam band station. They truly have something for every driver, and for commuters or others who spend a lot of time driving, that enjoyment is worth the extra fee.

Evaluation vs. five factors: Sirius XM Radio is ranked first because it provides a clear relative advantage over traditional radio by offering a commercial-free listening experience. This advantage is especially appealing to true music lovers who are willing to pay a premium for uninterrupted access to their favorite channels. The complexity of the product is offset by the trialability of the service through free trials and introductory offers. Finally, the observability of the product's impact is clear through user testimonials and word-of-mouth recommendations.

#2

Silver Band-Aids

My take: I think this is high-potential because it adds value to an already loved product. However, clearly it didn’t take off, since this article was from 2001 and over 20 years later we still don’t have silver band-aids as the norm. I have seen silver used as an antibacterial in other direct-to-consumer products, namely an antibacterial pillow called Silvon, and found it compelling.

Evaluation vs. five factors: While adding a proven antibacterial quality (silver) to a first-aid staple seems like an obvious relative advantage, the product's compatibility with existing values and experiences of consumers may not have been very strong. Additionally, the band-aid's complexity in terms of manufacturing and distribution may have limited its adoption. Finally, the product's impact may not have been immediately observable to consumers, especially if they did not experience clear improvements in wound healing.

#3

iSmell

My take: As much as people like good smells, BAD smells are 10x worse. If anyone reading this ever walked into a Hollister in the mid 2000s, you know how bad it can be. To me, smells are difficult because they are irreversible. You can turn off a TV or mute a speaker, but it seems impossible to retract a smell once it’s been released into a space.

Evaluation vs. five factors: While the concept of releasing smells from a computer or TV may seem novel and exciting, the product's compatibility with the values/experiences of consumers may be low. Many people are sensitive to smells and may find the product's smells overpowering or unpleasant. Additionally, the product's complexity in terms of technology and safety regulations may be high, limiting its trialability and observability. The potential for negative user experiences may also lead to poor observability and negative word-of-mouth, which can hinder market adoption.

#4

Sliced PB

My take: This is least likely to succeed because it offers the smallest customer value proposition and targets a very narrow market segment. The value proposition is unconvincing because spreading peanut butter takes a matter of seconds, and unwrapping a sheet of peanut butter would likely take just as long. It also has low market potential because it is only appealing to individuals who use their peanut butter just for putting on sliced bread. I, for example, never do that – I use PB for oatmeal bowls, smoothies, and as a snack with apples.

Evaluation vs. five factors: While some consumers may appreciate the convenience of pre-sliced peanut butter for their sandwiches, the value proposition is not strong enough to overcome the product's limited compatibility with customer needs. The observability of its impact may not be immediately evident to consumers who use peanut butter in other ways beyond sandwich spreads.

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[23christina]

How to improve airline customer experience (from a customer who is currently on an airplane)

I am writing this blog post from seat 24D on United’s nonstop from LAX to BOS, so this all feels very topical.

Behavioral science in airline CX

This article felt straightforward – of course people care about how you make them feel. But, considering this article was written over 20 years ago, and considering the stereotypical business mindset at the time was more rigid, I can see how the behavioral science approach may have been monumental. Main takeaways are below:

Sequencing: Finish strong, get bad experiences out of the way early

Perception of time: Slow moments drag on forever. Customers like distractions. Segment the pleasure, combine the pain.

Choice: More control means less blame.

Rituals: People anchor on rituals and traditions.

Blaming and rationalization: Customers blame individuals, not systems. People try to explain everything.

Singapore Airlines case

Singapore Airlines should install the lie-flat beds despite to cost because it is consistent with their brand promise. SIA built its reputation on CX (3 interviews, tea parties, 4 month training, English fluency, teeth checks, designer outfits, French wines, adjustable seats, a new fleet) and sold itself on service (“SIA was not a transportation company; it was unique travel experience”), even offering super-premium attention to frequent flyers. Without committing 120% to service, they will lose customer loyalty.

How to improve airline CX: Human vs. LLM recommendations

Human answer:

Strong finish: Offer customers a memorable goodbye experience. Some ideas include:

A goodbye drink (Hawaiian airlines gives you a punch just before you land that is fruity and tastes like vacation)

Private bus/transport (If your plane lands on the tarmac rather than at a gate bridge, first/business class travelers often get a private transport that feels very VIP)

Private accelerated passport lane (Emirates operates a private passport control lane that lets you skip the line in certain airports like Dubai)

Streamline waiting periods: Waiting times could be combined (less tarmac time) to give an impression of a more seamless flight

Offer customer choice; e.g., when to board, when a meal is served, which type of snack to eat, which movie to watch, which wifi speed to purchase.

Create rituals that make the customer anticipate your brand experience specifically. Examples include:

Offer a signature snack

Have the captain welcome/thank the passengers as they board and disembark

Give passengers a take-home makeup bag, toothbrush, earphones, or something special

ChatGPT’s answer:

(Prompt: How can you use behavioral science nudges to improve airline customer experience? Please offer a list of 5 recommendations for an airline based in behavioral science that are justified.)

Personalized Communication: Send personalized messages to customers before and after their flight to encourage them to book future flights. These messages should highlight their past booking history and offer relevant promotions or deals. Personalization has been shown to increase the likelihood of customers returning and booking future flights.

Opt-out instead of Opt-in: Change the default option from opt-in to opt-out for extra services such as seat upgrades or additional baggage. This small change makes it easier for customers to choose these services, which can lead to increased revenue for the airline.

Social Proof: Use social proof to encourage customers to book flights. Highlight the number of people who have already booked a particular flight or route. This can help to increase customers' confidence in their choice and encourage them to book.

Simplify the Booking Process: Simplify the booking process to make it easier for customers to complete their transaction. This can be done by reducing the number of steps required to book a flight or by using clear and concise language throughout the booking process.

Gamification: Use gamification to encourage customers to engage with the airline's loyalty program. This can be done by offering rewards for completing certain actions, such as booking a certain number of flights or referring friends to the loyalty program. This can help to increase engagement and loyalty among customers.

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[23christina]

Customer Journey Research -- A New Take on Dominoes

The Rebrand

Let's say we're working on a new product: a Dominoes game that aims to target a younger demographic. Dominoes typically has a reputation as an older retiree game, but with a new twist, we want to make it fun and appealing to mid-20s to mid-40s consumers.

Data Sources

According to our Market Research reading, key data sources for understanding the customer journey include the following:

To gain insight into customer needs for this product, we can consider the following methods for our new Dominoes product:

Primary - Focus groups: Focus groups can provide insight into what younger consumers are looking for in a game and what they enjoy about playing games with friends. We could target individuals in the mid-20s to mid-40s age range. We could then develop a discussion guide that covers topics such as current game preferences, what they look for in a game, what they like and dislike about traditional domino games, and what new features or twists they would like to see. Ideally, we would conduct the focus groups in a relaxed setting that mirrors what a "game night" might look like. To analyze data and draw insights, we would use a mix of qualitative/quantitative analysis methods to identify key themes and insights from the discussions.

Primary - Surveys: Surveys can be used to gain insights into the types of games that younger consumers enjoy playing and what draws them to certain types of games. We could draft a questionnaire that covers topics such as current game preferences, attitudes towards traditional domino games, game features, and demographics. We can also gather feedback on what types of themes and visual/aesthetic designs would be appealing to them. We would then interpret this data using theme recognition and quantitative analysis, and use its insights to inform game design and roll-out.

Secondary - Social media scraping: We could also monitor social media platforms (e.g., Instagram, Facebook, Reddit, etc.) to see what younger consumers are saying about playing games with friends and what types of games they are currently enjoying.

Alignment of Methods to Needs

I believe that these methods are well-suited to gaining insight into the game-night needs of younger consumers. By using a combination of focus groups, surveys, and social media scraping, we can gain valuable insights into what younger consumers are looking for in a game and what types of features and themes would be most appealing to them for our new Dominoes product.

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[23christina]

Stay away from that Black & Decker

Black & Decker (B&D) is known for its high-quality power tools and home appliances. However, in the professional tradesmen segment of the US power tools market, B&D was struggling to keep up with its competitor, Makita. As the case outlined, Makita was outselling B&D eight to one. But why?

BRAND IMAGE

One reason is that B&D had historically invested significantly in home brands and segments, and advertised those segments heavily. This drove strong consumer awareness of the B&D brand, but that awareness was not necessarily beneficial for the professional tradesmen segment. Some tradespeople came to view all B&D products as home products, and avoided bringing them onto the job site. As one tradesperson put it, B&D was good for “my wife’s popcorn popper,” but was not fit for “trying to make a living' as a tradesman." Another tradesperson said: "you just have to stay away from that Black & Decker." Also, there had been instances of a B&D product designed for at-home use being subjected to the demands of the job site and failing.

COMPETITIVE DIFFERENTIATION

Another issue with B&D's branding was that they failed to differentiate themselves from their competitors, including Makita. Makita had a stronger brand perception among tradespeople. As one tradesperson put it, "Makita is the best. It’s a good, solid product."

DISTRIBUTION CHANNELS

Makita took advantage of the trend of Home Depot growth and built their brand through corporate buyers and distributors, making it easier for them to penetrate the professional tradesmen market.

SEGMENTATION

B&D's shares of the two professional segments, Industrial and Tradesmen, were also different, which was surprising. One would expect them to be similar. The tradesmen segment is composed of individual buyers and users who use the products on project sites and buy them through hardware stores. In contrast, the industrial segment consists of corporate buyers who purchase the products for use by employees and commercial contractors working on large projects. The products are sold through major distributors.

DESIGN CHOICES

To improve their branding in the professional tradesmen market, B&D needed to consider their design influence on perception. One tradesperson said, "if I came out here with one of those Black & Decker gray things, I’d be laughed at." Note how this person specifically cited the color gray. The color of their products was important, as it could drive consumers to associate similar color items with the same category. (E.g., the entire market for pink drills targeted towards women).

Overall, B&D needs to reconsider their branding decisions to improve their performance in the professional tradesmen market. They needed to focus on building a stronger brand perception among tradespeople, create a sub-brand to distance themselves from their homeware brand, and differentiate themselves from their competitors. By making these changes, B&D can improve their sales and regain their competitive edge in the power tools market. Looking ahead, I would recommend the following to B&D:

Focus on brand elements that appeal to your consumer: While tradespeople did not appreciate B&D’s brand image (association with household), they did see value in its service quality and distribution approach, which they rated highly.

Create a new brand: A sub-brand (e.g., DeWalt) is an opportunity for B&D to distance themselves from their homeware brand, create a new brand image, and introduce new design decisions to differentiate themselves from their competitors.

Redesign the drill itself: A new, yellow tool could help visually differentiate their trade segment from the industrial segment and from other competitors’ offerings.

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