It’s not enough to make a mechanics’ hand-lamp that’s durable, brightly
colored, and functional.
It has to be macho.
Rhode Island's Market Has Changed. Developers, Builders, Investors and Sellers Must Change With It.
By Emilio DiSpirito IV License Partner | Engel & Völkers Oceanside Leader | The DiSpirito…
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That’s what Alec B. Dawson, president of Central Tools Inc. in Cranston,
found when marketing his company’s first version of a mechanics’ lamp.
It was bright yellow with a thin, smooth handle. It worked perfectly
well.
But it lacked the ‘ooh’ factor.
So Dawson went to work. He changed the color to black, gave it a rugged
handle, and, through an agreement, placed a Harley-Davidson label on one
side. He also made it cordless. When he was done, the lamp felt like a
combination of a “Colt 45 and a shotgun,” said Stephen Lane, principal
of ITEM New Product Development Ltd.
The result? The new lamp retails for $70, compared to the $40 original.
“Seventy versus $40,” said Lane, upon learning the prices. “God bless
America.”
Lane’s remark came at a recent seminar on improving profits through
design and marketing, sponsored by the Center for Design & Business and
the Greater Providence Chamber of Commerce.
He, along with Edward H. Levine, president of FireBrand LLC, told the
about 40 manufacturers in attendance how to transform their business,
from simply producing something to being the owner of a proprietary
product — which benefits from brand identity and customer loyalty.
It starts with a change in focus, Lane said. Producers making this
change “basically become marketing companies that happen to make
something in the back of the building,” he said.
Levine, whose company specializes in marketing and brand management,
spoke of the importance of creating products that ‘break compromises’
and offer something that similar products can’t. He cited Hertz No. 1
Club, in which travelers are whisked from their planes to their waiting
car by bus — making travel easier. He also cited the ‘picture-in-
picture’ technology that makes it possible to watch two television shows
at a time.
In marketing their product, the presenters explained, producers must
consider the reasons someone would want to buy it. When selling to a
channel, such as a superstore, the main consideration is return on
investment. Proven business performance is the best indicator of that.
To the consumer, functionality is a consideration, but so is the
product’s appeal. The consumer buys on emotion, they said.
Companies successful in selling to channels and consumers have created a
‘brand,’ Levine said. Citing a definition published in the Wall Street
Journal, a brand is something that makes an indelible mark on the
stakeholder, though it exists only in the abstract — it is an idea only.
Levine explained that brands are created through the consistent
application of ‘heat and pressure’ — the way brands were originally
applied to cows. Heat is the passion and meaning behind the product;
pressure is the marketing effort, and the product’s ability to deliver
on its promise. Combining the two over time creates ‘brand depth.’
Deep brands, he said, benefit from “high unaided recall.” In other
words, people recognize them.
Dunkin’ Donuts, Levi’s, Microsoft, the Rolling Stones, and Xerox, are
examples. Each benefits from customer loyalty, preference, and superior
return on investment.
Deep brands, Levine said, evolve as consumer preference evolve. They
also have a concept. For instance, Disney is about family entertainment,
not just cartoons. Starbucks is about the ‘third place’ between home and
work, not just coffee, he said.
Deep brands also define their category: When people think of off-road
vehicles, they think of Jeep; when they think of soda, they think of
Coca-Cola.
All of these products are rewarded for their consistency by their
customers, Levine added.
And all have what Lane — whose company specializes in design,
prototyping, and tooling production services — described as the ‘ooh’
factor: the emotional appeal. Safety goggles are an example. As much as
people deny it, everyone likes to look good, even when protecting their
eyes. Showing two slides, he compared the merely functional glasses with
a design that is both comfortable and sleek, and therefore worth more.
He cited safety glasses to illustrate a point: Just because a product
has been around awhile doesn’t mean it can’t be improved upon. Who, for
instance, is to say that someone couldn’t invent a better paper clip?
“There’s always room for something new and different,” he said.
Putting all it together requires a business plan on how to design,
engineer, market, and sell the product. But Levine warned against trying
to build this program with only one item. Successful companies developed a
family of products. And don’t tell him about Rubix Cubes or Pet Rocks.
“There are aberrations in every product,” he said.
