Why do companies routinely succumb to the lure of rebranding? The
answer, say A.G. Lafley and Roger L. Martin, the authors of “Customer
Loyalty Is Overrated,” is rooted in serious misperceptions about the
nature of competitive advantage—namely, that companies need to
continually update their business models, strategies, and communications
to respond to the explosion of options that sophisticated consumers
face. Research suggests that what makes competitive advantage truly
sustainable is helping consumers avoid having to make a choice. They
choose the leading product in the market primarily because that is the
easiest thing to do. And each time they select it, its advantage
increases over that of the products or services they didn’t choose,
creating what the authors call cumulative advantage. Lafley and Martin
offer guidance for building cumulative advantage: Become popular early.
Back in 1946, Procter & Gamble gave away a box of Tide with every
washing machine sold in America. Design for habit. When P&G
introduced Febreze, consumers liked it but didn’t use it much. The
problem, it turned out, was that the product came in what looked like a
glass-cleaner bottle, so users kept it under the sink. When the company
redesigned the bottle so that customers would keep it in a more visible
spot, they ended up using it more often. Innovate inside the brand.
Efforts to “relaunch” brands can lead people to break their habits.
Changes in product features should be introduced in a way that retains
cumulative advantage. For customers, “improved” is much more comfortable
than “new.” Keep communication simple. A clever ad may win awards, but
if its message is too complex, it will backfire. [ABSTRACT FROM AUTHOR]