How do brands die

I have often mentioned that being born in the 80’s and living through the years after has offer me and my generation an un-paralleled advantage- We have seen the world change in bits and pieces, day-by-day. Technology from my childhood is obsolete in most cases today; the one still around only have classical value. What the changes have also resulted in has been the fall of dominant empires and rise of new ones which replaced them. Some like Sony who changed with times still hold their stature. I don’t think people rate the technology of a Bravia, Vaio or Xperia lower to the Walkman at some point in the 80s. Sadly, the ones which got lost in their own glory to forget the art of adaptation went on to immortalize Darwin.

One of the most appealing and fascinating gadget my father had was an SLR camera from Minolta as well as a point-n-shoot Nikon. But what had to be treated with immense respect irrespective of the make was the camera film. So it didn’t matter if Sakura was now Konica, Fuji was cheap or Kodak was expensive- if by chance the film from any one got exposed accidentally opening the reel cover, down the drain went the memories. The films also demanded respect as you could click only 36 shots per reel (yes, there were some shady ways to do more on the same reel), so taking a picture was like a responsibility.

I took some time to read up on Kodak for making a case study and realised that Eastman Kodak was the oldest and the biggest player in the camera film plate arena for close to 100 years when I might have held a camera. It was a legend that had over 90% market share at one point thanks to its smart selling strategy of cheap camera units and milking the film and photo paper cows. Along with Gillette and its shaving blades, this was another great example of making the big profits on the consumables- something still followed by a lot in the market.

After the patent for the film plate was taken, a folding Kodak pocket camera in 1890, which was pegged at a very affordable price of $25. The main stay was the $10 to process and print the pictures which in combination with the camera paved the road to greatness. I’m not sure when BTL marketing was officially recognised, but in 1897, Kodak sponsored an amateur photographer contest and saw 25,000 participants. In 1904, Kodak held a Grand Kodak Exhibition featuring 41 photographs to attract an audience for the art. This connect is so natural that I cannot imagine if this marketing proposition might change for such events today.

The ads were so powerful to take the photography to people other than professionals - “You press the button- we do the rest”. Not to mention, signage’s along the roads reading, ‘Picture ahead’ with the well-recognised Kodak name under the sign is fabulous use of ambient media. The term "Kodak moment" might be used for eternity for every memorable picture. This was the strong brand connect that Kodak has in the memory of every individual. Sadly, I feel it won’t be wrong to say that no one uses Kodak in taking pictures any more.

The demise of the brand to the levels of bankruptcy in 2012 has been a classic case of treating it as a product offering and forgetting that the brand was a living being with a personality. Much like a human being, it has to adapt to changes and transform its role in the life of people to maintain its relevance. Yes, handling competition was important- so was transition into technology that could change the business dynamics. Kodak had developed a digital camera in 1975, the first of its kind. But the product was dropped for fear it would threaten Kodak's photographic film business, which was already facing threat from Fuji by means of its competitive pricing.

Marketing Myopia, as my marketing professor preached was like being so much in love with your products that you become completely ignorant of what damage this obsession leads to your own self.  The outlook from the management always remained that profit for Kodak was in making money on the consumables side as the optics was just a one-time buy. Digital imaging transformed this myth and when Camera phones came out, Kodak went into the business of vendor driven memory chip business.

Kodak had a fabulous connect with people and their memories. They had done everything right from the very beginning to reach a stature no one else can possibly manage. All they needed to do was possibly maintain that connect irrespective of selling films to feed their camera. If the phone got a decent camera, the logical move was to bring out a super camera that could also be a phone. Photograph= Kodak; that was the least or most they has to ensure. Sadly, they missed the bus and ran out of business.

What all this only signifies is that brands are like living beings interacting with their users. People wish to be associated with a brand for a part of its persona that builds these bonds. If the threads of this bond are not recognised and the relation turns into a transaction; you might just be the next Kodak. 

In Pursuit of Excellence

Possibly the first thumb rule a person is taught through any kind of teaching; formal or informal, try to do the best at whatever you try your hand at. Then it might be sports, academic or building your hobbies. Knowingly or unknowingly, we all do become slaves of the rat race called the pursuit of excellence

People across the world have built their reputation of excellence in almost anything you will find on the planet. A French Wine to Italian Leather, a Persian carpet, a Cuban cigar, the production efficiency theories from Japan or even the Marketing practices out of US. Each one has held its own unique association- a matter of pride. So who can carry the accolades as a country known for its engineering excellence? Of course, Germany!

German Engineering- take any car brand, Audi, BMW, Mercedes, Volkswagen… and by now
you already have a shiny car before your eyes. Each one has defined themselves to a high level of aspiration- no matter where you are. Germans take pride in the fact that they can create master pieces when it comes to machines.

But here comes the flip side of it. Sometimes this pride can become a passion and become the reason for downfall. The Pursuit of Excellence can actually become the most dangerous cause of self destruction. I just came across two examples where the tides just turned from bad to worse when excellence became the operative word rather than what the need of the hour was.

Take for instance the Tanks in World War II. Search the net and you will find a lot of people saying that the German Panther and Tiger tanks were superior in terms of specifications compared to an American Sherman or a Russian T-34. But major tank battles like the Battle of Kursk saw Germany actually lose out to supposedly inferior competition. How did this happen?

The American Sherman was more like an offshoot of the road truck, simple adaptation prepared for war. The T-34 was a hasty production and was coming off production lines that made farm equipments. But the German tanks were designed war machines. Engineering marvels- master pieces that took time to make. They had power trains that can draw the awe of an engineering brain any day.

But when the average life of a tank was down to 150 kms on a battle field, the Panthers and Tigers were simply outnumbered. Inch by inch, the Allies just got closer as the Germans suffered in their cause to excel in their work.

Well this is certainly not the only example where pride became the reason for losing out in the bigger race.

Let’s talk about Motorola- a Company boasting its Six Sigma standards. The Black Belts becoming consultant to organizations throughout the business circles. Motorola actually has a university dedicated for Six Sigma. But sadly, this became a passion that they just could not get rid of.

Motorola became a world leader in Analog Telephony and Communications in the late 90s. No one could match the sound quality of a Motorola. It’s a Walkie- Talkie... oh... must be a Motorola. It’s a Pager, Must be Motorola.

But the times were about to change. Cellular technology was taking the World over by storm. Transition from Analog to Digital should ideally have suited the leaders much better than the followers. But it certainly didn’t happen. Motorola never became a leader in Mobile Phones. The Six Sigma in sound was no more a priority. The big shift in technology got in something called Short Messaging Service. So while Motorola was busy creating the Crystal Sound technology, Nokia came out with robust models for every country and flooded the markets.

Samsung got a camera into a phone; Kodak did not bother to add a phone chip to its Camera. Today, Kodak looks at shutting down its Camera Film Rolls manufacturing as globally more pictures are now taken on a mobile phone camera.

Bottom Line….. In Pursuit of Excellence cannot be a Goal if it is not the need of the hour.

People did focus to the last digit accuracy in Pursuit of Excellence - what they missed while they played with a Vernier, was the competition going past them by the meters.