Tuesday, November 22, 2011

What's Wrong With This Picture?

While I tend to react negatively to those who claim to be innovative when they are simply copying something that someone else has done, I have to concede that imitation is sometimes the right approach. Mindlessly copying a competitor or rigid adherence to industry standards as a default is clearly the path of a firm that is not merely unsuccessful, but which doesn't really care about achieving success - but there are instances in which imitation, carefully considered, is found to be the best tactic.

Take, for example, the standards and practices that are evident when you consider several products in the same category: products of the same type generally have a number of similarities, which enables customers to recognize without having to be taught what a given brand is, and is meant to do. Imitating others and adhering to a common practices helps the shopper to recognize what's in the package, what the Web site does, what kind of operation is behind the door. And while innovation is possible, it's still necessary to copy certain features that are common to the category.

The problem with the image above should be self-evident, but at the risk of being bombastic, I'll elaborate: soda bottles have a specific size and shape, and the customer has come to learn that and expect that the contents of a bottle is soda pop. Actually, I think that has been broadened, as juices and water are sold in bottles of similar size and shape - so it would be more accurate to suggest that the size and shape indicate that the bottle is something potable. It's certainly not a cleaning product.

And so, selling bleach in a bottle shaped like a beverage container is an unwise and potentially dangerous. It's unwise in that the consumer who wants bleach will not recognize your brand of bleach as such, and will not buy it. It's potentially dangerous in that a consumer who wants soda will not recognize your brand as "not soda" and drink it, at least a sip. And while the "reasonable man" standard should shield you from liability, the law has switched to the "dumbest ape on the planet" standard when it comes to consumer protectionism. Sometimes, that's not a bad thing.

That's not to say that innovation isn't possible. When it comes to soda, there's one brand whose packaging stands out. I likely do not need to name it, just the shape of the bottle evokes the name of the brand. Granted, it is roughly the same size, and kind of the same shape as every other brand of soda - but it's different enough that no-one who sees the bottle thinks of a different brand. And that is brilliant.

The question then becomes, for any brand, how closely one must adhere to a "product standard" and how much one can deviate from the same standard in order for customers to recognize your brand as unique.

At the extreme of innovation is the firm that sells its product in a unique package, unlike any other product, and intends to "teach" the customer the shape of the bottle is an element of their brand. Once the brand has succeeded, you will have unique identity and strong consumer loyalty. But getting there will be an uphill battle.

At the opposite extreme is the firm that sells its product in a package that conforms to the "industry standard" for all other products of the same category. The advantage is that you are leveraging the visual cues that the customer has already learned from other brands - they know that there is soda in the bottle, even if they do not recognize the brand on the label. But at the same time, you're running the risk of never developing an identity, never offering a peg on which the customer may hang their loyalty.

If it's an informed risk - the brand manager knows and accepts the consequences of the decision to imitate, it's arguably an intelligent choice. But more often than not, I suspect that such decisions are not the subject of logic - the imitator puts no thought at all into what he is doing, just copies others, mindless of the reason.

And to my way of thinking, failure to make a decision, to even think about making a decision, is worse than making a decision that turns out to have poor results. If you make a bad choice, you can recognize it and change it later. If you make no choice, and assume that copying what made others successful will also make you succeed, you'll forever be chasing the wrong things, steadfast in the confidence that the decision to imitate and conform is not the cause of the problem ... and it may not cause a problem, per se, but merely prevent you from succeeding.

But in fairness, it is not necessarily a decision made by a brand manager at all - the operations manager insists that his equipment will only work with standard bottles, the cost accountant demands the cheapest alternative and insists it will save a penny per unit, and the brand manager does not fight (or loses the fight) for ownership of packaging decisions. You could argue that he should have fought harder, but those of us with a few battle-scars know all to well that there are some fights you just can't win, given the culture of an organization.

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