Purchase Brands vs. Usage Brands

Harvard Business Review: “Where traditional brands focus on positioning their brands in the minds of their customers, digital brands focus on positioning their brands in the lives of their customers. Furthermore, they engage customers more as users than as buyers, shifting their investments from pre-purchase promotion and sales to post-purchase renewal and advocacy.”

“Purchase brands focus on creating demand to buy the product, while usage brands focus on creating demand for the use of the product … Purchase brands emphasize promotion; usage brands emphasize advocacy … Purchase brands worry about what they say to customers; usage brands worry about what customers say to each other … Purchase brands try to shape what people think about the brand along the path to purchase; usage brands influence how people experience the brand at every touchpoint.”

“The simple view would be that traditional brands are purchase brands and digital brands are usage brands. But there are exceptions, including brands like Visa, FedEx, Lego, and Costco, which exhibit many of the characteristics of usage brands … They think of customers less as one-time buyers and more as users or members with an ongoing relationship … Purchase brands focus on the ‘moments of truth’ that happen before the transaction, such as researching, shopping, and buying the product. By contrast, usage brands focus on the moments of truth that happen after the transaction, whether in delivery, service, education, or sharing.”


Profits Eat the App-etite for Delivery Services

The New Yorker: “In 2016, delivery transactions made up about seven per cent of total U.S. restaurant sales. In a research report published last June, analysts at Morgan Stanley predicted that that number could eventually reach forty per cent of all restaurant sales, and an even higher percentage in urban areas and among casual restaurants, where delivery is concentrated. Companies like GrubHub maintain that the revenue they bring restaurants is ‘incremental’—the cherry on top, so to speak, of whatever sales the place would have done on its own.”

“They also argue that delivery orders are a form of marketing, exposing potential new customers who might convert to lucrative in-restaurant patrons. The problem is that as consumers use services like Uber Eats and Seamless for a greater share of their meals, delivery orders are beginning to replace some restaurants’ core business instead of complementing it … And, as delivery orders replace profitable takeout or sit-down sales with less profitable ones—ostensibly giving restaurants business but effectively taking it away—the ‘incremental’ argument no longer holds.”

“DoorDash, an Uber Eats competitor, has started to experiment with leasing remote kitchen space to restaurants so that they can expand their delivery radii. If such practices catch on, it’s easy to imagine a segment of the restaurant economy that looks a lot like, well, Uber, with an army of individual restaurants designed to serve the needs of middle-man platforms but struggling to make a living themselves.”


My Esel: Bespoke Design in Wood

Bike Rumor: “We’ve seen plenty of bike frames made out of wood over the past few years, but few have taken advantage of the material’s workability to add more customization into the frame building process. My Esel takes that issue head on … For each bike that they produce, My Esel uses a configuration tool that lets buyers enter their exact body measurements and desired riding position, to scale the frame fit specifically to them, before it is produced through a CNC manufacturing process tailored to each buyer.”

“The key to that customization has been developing a parametric design software that lets My Esel plug in all of the key measurements of a rider’s body and translate that into a scalable frame layout part of which is then produced on a CNC mill … The software also adjust to three primary riding styles Sport/Racing, Urban/Trekking, or Comfort/Holland … so you not only get a bike the right size for you put with a position adjusted to your intended style of riding.”

“The bikes get customizable finish too. The frames are built from ash veneer hardwood plywood and can get four layers of clearcoat to show the grain, with black or white painted finishes optional as well. A walnut veneer is apparently available as an upgrade, as is a dark black stain of the standard ash.”


Retail Theater: The Shellfish Spa

Supermarket News: “Retailers say making the shopping trip an experience is one way they can drive traffic into their stores. And a little theater in the seafood department is actually helping to drive sales, according to one Northeast retailer, Shoprite, which has added the Shellfish Spa. The device preserves live product such as clams, oysters, mussels, steamers and cockles while presenting them in an eye-catching display. The container bathes shellfish in a continuous stream of saltwater and maintains an ocean-like environment for peak freshness.”


Jen Yee: The Architecture of Dessert

The New York Times: Jen Yee “who oversees pastry for all the restaurants in the Resurgens Hospitality Group, used to be an architect, and she designs desserts the way she once did building interiors: meticulously sketching every element, testing many prototypes. And these days she has plenty of company: Many of the country’s top pastry chefs have practiced or studied architecture.”

“Tired of having to abide by mundane building codes and regulations, and wanting something more creative, she began studying pastry in 2002 at Le Cordon Bleu in London, while working as a pastry assistant at the Connaught hotel for the chefs Gordon Ramsay and Angela Hartnett. She found that her architectural training applied in the pastry kitchen as well.”

She comments: “Being an architect is not all about the structure. It’s about the intent. How will this improve someone’s life? Desserts are also about thoughtfulness. What are the ways I can manipulate this apple? What will highlight what’s grown here? It’s about looking at your environment and seeing what will be functional and beautiful in that space.”


Late & Great: Herb Schmertz

The New York Times: “Herbert Schmertz, an aggressive and innovative public relations man who, as a Mobil Oil executive, pioneered the use of company-written ‘advertorials’ during the energy shortages of the 1970s, died on Wednesday in West Palm Beach, Fla. He was 87 … In addition to urging Mobil to go on the offensive at a time when Big Oil was being demonized, Mr. Schmertz had the company engage in image enhancement by association. He arranged for the company to sponsor the PBS series Masterpiece Theate when it began in 1971 as well as Mystery! and other public television programs later.”

“Critical of the news media, Mr. Schmertz advocated what he called creative confrontation — a markedly different approach from that of most companies, which tried to do their influencing behind the scenes … in October 1970, Mr. Schmertz began buying space on the Op-Ed page of The New York Times to express the company’s views in essay form. Sometimes the essays responded to the news of the moment; other times they addressed broader issues, like mass transit. They advertorials appeared in other newspapers as well, and Mr. Schmertz made scores of television appearances.”

“Although few public-relations specialists today would take as abrasive a tack as Mr. Schmertz sometimes did, the modern media landscape is full of advertiser-influenced or controlled content that calls to mind his early forays into advertorials. On his retirement from Mobil in 1988, he was asked to name his greatest achievement.” He told the New York Times: “I think that Mobil has made it respectable for companies to have views, opinions and philosophies and to express them.”


Schmidt’s Toothpaste: For Fresh, Charcoal-y Breath

Fast Company: “Unilever recently acquired Schmidt’s Naturals for its millennial-friendly natural deodorants, and now the Portland-based startup is taking on another bathroom shelf staple: Toothpaste … Much like the company’s popular deodorant line, which comes in unconventional scents like rose vanilla and lavender sage, the toothpaste collection reimagines the flavors we swish and spit. Think activated charcoal with mint, vanilla chai, and coconut with lime in bright, modern tubes that starkly differ from more hippie-esque natural brands.”

“Schmidt’s Naturals cofounder and CEO Michael Cammarata tells Fast Company he saw a ripe opportunity to translate modern consumer scent preferences for personal care products. While customers adamantly want oral care that leaves them feeling fresh, the company’s research found that could also extend into citrus and floral flavors.”

“It remains to be seen whether consumers will be drawn to the product for its main selling point: Health. Schmidt’s Naturals is free of potentially harmful ingredients, and its packaging proudly touts vitamin and superfood extracts … Cammarata is confident that the health-conscious tide is growing, and with that, so will society’s view of what they put on and in their body. Indeed, a recent study published in the journal JAMA Internal Medicine found that consumer complaints of adverse health events related to personal care products more than doubled last year.”


‘Stealing’ at the Amazon Go

Nick Wingfield: “There were a little over 3.5 million cashiers in the United States in 2016 — and some of their jobs may be in jeopardy if the technology behind Amazon Go eventually spreads. For now, Amazon says its technology simply changes the role of employees — the same way it describes the impact of automation on its warehouse workers … Store employees mill about ready to help customers find items, and there is a kitchen next door with chefs preparing meals for sale in the store. Because there are no cashiers, an employee sits in the wine and beer section of the store, checking I.D.s before customers can take alcohol off the shelves.”

“At Amazon Go, checking out feels like — there’s no other way to put it — shoplifting. It is only a few minutes after walking out of the store, when Amazon sends an electronic receipt for purchases, that the feeling goes away.”

“A big unanswered question is where Amazon plans to take the technology. It won’t say whether it plans to open more Amazon Go stores, or leave this as a one-of-a-kind novelty. A more intriguing possibility is that it could use the technology inside Whole Foods stores … There’s even speculation that Amazon could sell the system to other retailers, much as it sells its cloud computing services to other companies. For now, visitors to Amazon Go may want to watch their purchases: Without a register staring them in the face at checkout, it’s easy to overspend.”


Adidas Kicks are a Ticket to Ride

City Lab: “Starting January 16, Berlin transit authority BVG will release its own limited edition line of sneakers, a project that’s the first of its kind anywhere in the world. A collaboration with Adidas Originals, the sneakers’ tie-in with the subway will be immediately apparent to any Berliner: the heel counters feature the unmistakable seat upholstery pattern featured on the city’s public transit fleet.”

“The sneaker’s tongue will include a feature that’s arguably more striking—a fabric version of the annual BVG season ticket. That means the wearer gets free travel on subways, trams, buses, and ferries anywhere within Berlin public transit zones A and B— which cover almost all of the city—from January 31st to the end of the year.”

“Then there’s the price, which is a snip at €180 ($215) a pair. That makes them more expensive than the average sneaker, but much cheaper than a traditional annual transit pass, currently €728 ($869) for the same zones.”