brandknewmag.com
10
premiums technology companies will be able to command
with even more groundbreaking collaborations.
SNOWFLAKE STATUS
Eleven of the most notable technology brands in the world-Apple, Google, Microsoft, Samsung, Intel, Cisco, HP Oracle,
,
SAP Dell, and Adobe--together filed more then 15,000
,
patents in 2012 alone. Developing and protecting intellectual
property is important, but all this patent filing reveals an
entrenched posture among technology companies that can
be summarized in a word: mine! This is a problem. Because
the way we’re currently thinking about technologies is in direct
conflict with how we think about brands. Technologies might
belong to companies (because a team of lawyers says they
do), but brands belong to people. And the people don’t want
more patents. They want products, services, and experiences
they can’t get anywhere else. This is harder and harder to
do in our crowded marketplaces, so more and more brands
are collaborating to create real breakthroughs. Co-making
is on the rise, and it’s a very good thing for brands and their
audiences.
Consider these examples: the Taco Bell Doritos Locos Taco,
the most successful product launch in Taco Bell history,
moved 100 million units in its first 10 weeks and has already
sold more than a billion units. Even before Taco Bell and
the Doritos folks at Frito Lay teamed up to create a stoner’s
dream, Apple and Nike collaborated to create Nike+, which
is now nothing less than the world’s largest running club.
And Fiat and Gucci created a winning combination with
their collaboration, the Fiat 500 by Gucci. Importantly, these
examples are not about co-branding, which has traditionally
been about marketing synergies--logo co-placement,
sponsorships, and licensing. These are examples of comaking, brands teaming up to make-versus just market-the actual product, service, or experience. And there are
three very good reasons why we’ll see more of these kinds of
product development relationships in the near future.
THE DORITOS LOCOS TACO EARNS
A 40% PREMIUM COMPARED TO
TACO BELL’S REGULAR TACO.
CONSUMER LOVE = HIGH MARGINS
The Doritos Locos Taco earns a 40% premium compared to
Taco Bell’s regular taco. The Fiat 500 by Gucci sells briskly
at a 52% markup over the base price of a standard Fiat
500. Online preorders for the original Nike+ Fuelband
sold out in minutes, and Nike’s equipment division reported
an 18% increase in profits for the fiscal year following the
product’s introduction. These are impressive numbers for
what are essentially a taco, an iOS-powered pedometer,
and a very small Italian car. Margins like this used to be the
exclusive domain of technology companies, so imagine what
The best brands are always striving for “only” status--a
marketplace position that has no perceived substitute. But
such a position is mostly mythological. Why? Because any
category worth being in features capable competitors. Apple,
currently the most powerful brand in the world, is hardly
free of rivals. But co-making presents an opportunity to turn
the myth of the “only” into a reality. Simply put, co-making
creates something that otherwise could not exist, something
that would not be possible without the contributions of two
different brands. The number of potential brand pairings is
essentially infinite, with the results of each pairing entirely
unique. That’s a very real “only.”
CO-MAKING
PRESENTS
AN
OPPORTUNITY TO TURN THE MYTH
OF THE ‘ONLY’ INTO A REALITY.
OUTSIDE INSPIRATION
The juiciest design and business opportunities in front of
us simply cannot be solved with this-technology-is-all-mine
thinking. Brands are often representative of core expertise,
and tackling our world’s most formidable innovation
challenges--from sustainability and security to transportation
and health care--will obviously require more than a single
expertise. We need our best technology brands to stop fussing
about patents and start teaming up to tackle the impossible.
Teaming up also infuses companies with new ideas and
worldviews that are too often missing in our insular, usagainst-them corporate cultures. Co-making is a fast way to
get inspired, take on bigger stuff, learn new skills, and break
new ground.
It’s time. It’s time for Google and American Express to design
a smarter credit card, one that syncs with location-based
technologies to score the best deals while also making fraud
impossible. It’s time for Xbox and Virgin to re-imagine inflight entertainment, and extend that experience across both
air travel and hotel stays. It’s time for iRobot and Honda
to finally cut to the chase with driverless cars. It’s time for
HP and The Home Depot to 3-D print any nut, bolt, screw,
or washer we may need. It’s time for Cisco and Honeywell
and Samsung to visualize data from in-home water, gas, and
electrical systems so we can cut our utility bills right from the
couch. It’s time for all kinds of breakthroughs. Tacos with
Doritos shells are just the start.