Tuesday, April 29, 2003
Cult Brands : how consumers sell the brands
Matthew Ragas, of Matthew Ragas and Associates, makes an interesting observation in respect of cult brands: it is all about how the consumers or end-users sell the brands. Nowhere is this phenomenon more uniquely expressed than in the rising sales of Harley Davidson bikes across the US. Priced at a premium well over the going rate, the fanatical fan following that Harley commands as well as the notion of freedom provided by it ensures that it remains one of the best selling brands. The same notion of a 'cult' fan following helping the sales and marketing along is evident in the case of Linux (or GNU/Linux - this is what will be meant hereinafter) and Mac OS. Given their strategic positioning as 'rebels', the brands appeal to a distinct cross-section of consumers. In this case, 'consumers' is used as opposed to the more commonly used 'end-users' so as to allow the perspective of the marketing side to be visible.
Ever since James Dean popularised the concept of a 'rebel without a cause', business brands have tried to sell themselves as such. Sometimes with a cause and sometimes without a justifiable one. Naomi Klein, in her now famous 'No Logo' traces the route of global corporatisation of the society. What is however not said in so many words is that more often than not, public relations exercises are created with exactly that aim in mind.
Cult brands are in general, when they appear on the scene, 'disruptive technologies or ideas'. Having gotten used to doing things in one way, the emergence of such brands challenges the existing pecking order. In the initial stages of the Linux movement, it derived its core strength from the antipathy towards the established social order which was represented by Microsoft. And the consequent strategic blunders committed by the Redmond giant ensured that a fan following was already trying out the new OS. Enthused by its claims of stability, security as well as the emotional gratification offered by being in the other camp, Linux OS on desktops and servers were soon de rigeur.
The brand is not simply the logo or the policies espoused by the organisation in relation to that product. The brand represents an emotional umbilical cord between the consumers and the company. As such 'cult brands' need to be re-invented and re-positioned on a regular basis. Brands help create the feeing of 'attachment' in an increasingly alienated society. They make emotional connections with 'desires' and unfulfilled dreams. A vibrant, active and 'strong' brand denotes a presence that transcends beyond market share. Brands and branding mechanisms involve the mind share and mind sphere. Consumers do not absorb strategies, but usually respond to the images projected by the Company 'brand'.
A brand is thus not just a logo, but a company's reflection to the outside world (Anne White - TAG). Cult brands are differentiated from ordinary ones by the passion infused into them. They have instant recall, unique design value and niche positioning. Without diluting the currency or the value, these brands manage to carve out a greater portion of the audience ratings. The 'brand value' added or the value proposition of the logo is not a tangible value unlike the manufacturing value addition. Yet it forms a mulitplier in total cost terms thus enabling higher returns both tangible and intangible. To ensure continual infiltration of brands, people from focus groups need to perform the function of 'brand evangelists'. These form the core support group who spread the word among the believers and keep the faith.
Cult brands are differentiated by means of their uniqueness, continual investment and nurturing of the customer base can ensure the longevity as well as durability of the brand.
Sankarshan Mukhopadhyay is an independent business process management consultant and can be reached at sankarshanm@softhome.net. He is also a Free Software enthusiast and his blog 'Open Minds,Open Source' is at http://sankarshan.rediffblogs.com