Skip to main content

The joy of selling less

Today’s Wall Street Journal reports on General Motors’ decision to limit production of its Buick Enclave. By intentionally restricting supply GM has kept the car “hot” months after its launch and avoided brand-diluting rebates and 0% financing deals. How many times have we seen car companies launch shiny new models for which they’ve invested five years and hundreds of millions to develop only to resort to bribing buyers within months after the launch.

United Airlines, a client of Barrie D’Rozario Murphy, has exercised similar restraint by cutting capacity in an attempt to align supply with demand and regain pricing power – a feat almost unheard of in the airline business. Consequently, United’s earnings are healthy and it can now invest in new services for its profitable business travelers, such as its new international premium service, which will further grow profits.

Automotive and airlines are two categories in which, for years, capacity has grown faster than demand as companies competed for top-line revenue and market share at any cost. The same is true in many manufacturing-based businesses - particularly consumer electronics. It's refreshing to see two companies remember the fundamental premise of brand marketing -- branded products create unique value for customers at a premium price. That’s why we brand.

Comments

Popular posts from this blog

What makes a premium brand premium?

I was thinking the other day about the DNA of premium brands . One thing is certain -- it's a relative idea. For example, Hyatt is not a premium brand if you're used to staying at a W or a Ritz Carlton. But if your vacations to date have been holed up in a Holiday Inn, then by all means a stay in a Hyatt is a premium experience. Another thing is certain -- a brand is considered premium only when we believe it is worth the price. And that's where we can dig deeper. Why are we willing to pay more for a product when there are others that provide the same service or function at a lesser price? I have spent a good part of my marketing career developing strategies and ideas for a wide range of  premium brands, including American Express, Sony, Callaway Golf, Hilton, Jaguar, Land Rover – even the Toyota Prius.  Through these experiences I have come to believe that a premium brand is built upon specific tangible and intangible attributes that give it a sense wort

Zen and the art of an EV roadtrip.

I remember the anxiety I had when I cut the cord and switched from Cable TV to streaming.   Could I still watch live sports? Would I get all my favorite programs? Sure enough, with YouTube TV, the answer was a resounding yes to both questions.   Now I’m cutting a new cord — the gas pump — as I take my new Mustang Mach-E on a cross-country trip.   And like the time I cut Cable TV, I'm experiencing the same questions.  Will it have the range for a long drive?  Will I waste hours recharging along the way? Well, today is Day 1 on the Mach-E's first ever long distance drive , as we say farewell to Detroit and head to La Quinta.   For those of you thinking about buying an EV, I’ll be sharing daily posts to help alleviate so-called “range anxiety.”   (Trust me, in pressing the start button this morning, I’m taking a big trust-fall to shed the comfy muscle memory of ICE vehicles.) Today’s cool feature:   The FordPass app which plans the route and most efficient charge points, then send

Super game. Dull ads

As a passionate Giants fan it is safe to say that I had a good time yesterday. But as an advertising professional I felt a bit underwhelmed by the caliber of the advertising . Many were entertaining. But few possessed that intangible Super Bowl-ness...big, pop-cultural, fun. Even fewer seemed to have anything relevant to say about the brand, such as the Planters "uni-brow" spot. I loved the Bridgestone "screaming animals" spot, but it would have been a much better spot for the Saab featured in the spot than the tires the car rode upon. As for Bud, good spots, but I've seen the dog and horse thing before. Tide's talking stain was funny, but did it have Super Bowl-ness? My fav? The Coke "balloon float" spot. It was classic Coke (for Coke Classic). Big. Entertaining. Unexpected twist. Utterly charming. And Charlie Brown finally won something. Coke is about smiles. And that spot was just that. The Audi spot that I wrote about last week liv