Orphan Equity

It's interesting. Brands are just like people; you meet all kinds.

Most brands, in my humble opinion, suffer from a lack of substance. A whole lot of glitz, glamour, promises, forced imagery, poetic prose, but nothing real to back it up. Most of time this is due to the simple fact they have nothing to back it up. The brand is image, is powered by imagery, and the real benefit imaginary.

But every once in a while my slightly bent strategist perspective picks up something very different on my brand radar. A brand with more go than show. A brand that has tons of real honest to goodness equity. A brand that has orphan equity. Orphan equity is brand equity that isn't being used. Isn't being appreciated. And in business terms, isn't being leveraged. As a brand strategist my reaction is an equal blend of two emotions - I'm excited about the discovery and pissed that it's being wasted.

This has been very much top-of-mind for me over the last year as we have acquired and grown a fleet of new wheeled vehicles for our 17 -month old son Valentino. I swear, the kid could be on Cribs. "Now let's take a walk out to my garage. Over here we have the Red Flyer roadster for those days I'm feeling sporty. And over here we have the over-sized, ATV-edition Red Flyer wagon for carrying the toys and posse to the park. And over there we have my collection of strollers for those times I feel like being chauffeured."

Radio Flyer. Now that is a hell of a brand. Not necessarily in it's current form, but man... talk about equity. This brand has been around since 1917. They essentially invented the little red wagon. They defined how kids play and continue to innovate ways in which kids can have fun. Their products are masterful. Their look is definitive. But their brand... well, it's an under-achiever in my book. I have been on their website, read their brochures in detail, and have purchased a few products. It's good, the brand. But it could be great.

And just like any other orphan, I want to take them in. Adopt them. Care for them. And make them grow. So, Radio Flyer, if you're out there, let me play. I would love to take you from good to great. You are a legend in the world of toys, and like other great brands, have an amazing back story to tell. Until then I will just have to enjoy your brand through the eyes of my son. Because nothing makes a little kid smile like a shiny red wagon.

Yes... the product is kind of important.

"Our cars are every bit as good as Toyota's... Americans are just biased against us"

In 2004 I was attending a meeting in Detroit with the senior muckity mucks of General Motors. Bob Lutz, the King of the Island of Misfit Toys, bellowed this (with a straight face) as we began to review the lineup of 2005 introductions that were slated to "slow their share decline."

Really Bob? Really? Because if that were true that would mean that Americans are so principled they would refrain from buying the very car of their dreams just to prove a point. Now, we know that's not the reality. Americans are far more self-driven than that. If GM were to introduce a car that people actually cared about they would assuredly buy the damn thing. Heck, there are many examples of this very phenomenon coming to life in the world of cars. Was it cool to drive a Chrysler before they introduced the 300M? When that thing launched Snoop Dog himself was on the phone ordering his own personal fleet. Was it fashionable for anyone to own a Cadillac under the age of 65 before the launch of the Escalade? Was the upper middle class psyched to buy a Ford before the Explorer rolled off the assembly line? No... they weren't.

A relevant product is just that. Relevant. Which means... it fits a roll within a large enough consumer group to make it a success. Sales follow, profit follows sales, and everyone goes to bed happy.

But more important than the short term benefit of sales and profit is what a great, relevant product does to your brand. It's catalytic. It makes your brand real. It makes people give your products credit as being good before they even launch. GM has most definitely lost site of this very simple idea. They were, back in 2003/2004, the second largest advertiser in the world. In the WORLD! So, any short comings of their "brand building success" was certainly not due to a lack of investment. In the 3 years I worked on the GM business I attended five brand "relaunches." Across 3 brands. 3 years, 3 brands, 5 relaunches. How can that be? How can you reinvent your brand every 1.2 years when the average model life cycle is 4 years? How can you swap the brand veneer when nothing else has changed? "Buick is now 'American Luxury'" Really? Who says? "Pontiac is now 'Fuel for the Soul'" Hmmm... do you mind that your consumers have no idea what that means? No? Proceed. "Chevy is now... AN AMERICAN REVOLUTION!." If by revolution you mean the first auto maker to lose $2 billion a month. It reminds me of another very important branding principle my old boss liked to say... "The tough thing about consistency is you have to stick with it."

It may not seem like it but I want nothing more than to see the American car industry pull out of the violent nose dive and begin to function profitably once again. I really do. But it's going to take more than well-funded messaging campaigns (including high-dollar 'Idol' sponsorships) to change things. They need to clean house - get rid of 90% of their current offerings. They need to look at the marketplace and start fresh. If they were opening for business today, what would they build? Stop following... it's embarrassing when you show up after the party has been over for 3 hours and the hosts have gone to bed. In short, focus on the product.

Why? Because their brand is driven by, and limited by, their products. Make fresh stuff and people will buy them. Hell, even I'll drive a Ford if you give me a relevant, competitive product. But, unfortunately I have driven a Ford lately.