Re: Value of brand

"rreprobate" <[email protected]>
Newsgroups gmane.comp.hci.experiencedesign
Message-ID <[email protected]>

> > For a quick understanding of the value brand plays, let's look at
coffee:
> > 
> > Exxon = $0.25
> > McDonald's = $1.14
> > Starbucks = $3.75
>
> But this assumes Exxon, McDonalds, and Starbucks are selling coffee,
> which they aren't.
> 
> Each is selling experience. 

Good thread! There were lots of interesting points along the way, but
I fear that no one 
seems to know anything about coffee.

It's an interesting thing to say, that these companies are only
selling an experience, but its 
an inaccurate simplification.

Exxon sells gas. McDonalds sells food. Starbucks sells... milk and
sugar mostly. 

Then the question was raised... why spend millions on advertising
rather than experience, 
when the customer experience is the true path to building a brand? 

Well, it's much easier. It's just a matter getting some good looking
people on camera and 
buying the spot. And it follows much more directly from the "identity
work" that has been 
handed down, unlike redesigning a customer experience.

Exxon, McD's and Starbucks have done good work on both sides and
that's why they are 
successful, despite the fact that they sell bad gas, bad food, and
bad coffee respectively.





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