07/12: It’s the Experience
Ahhh… the Holiday season in New York. I have a tradition with a dear friend of mine, Mike Bloomberg, to get together on Black Friday and stroll the streets and talk about the year. Now that he is Mayor of the Big Apple we don’t get as much time together – not like the old days at Harvard (he’s a ’66 like me). We would spend time together as he rose through the ranks at Salomon – and I would lend him an ear when he started up Bloomberg financials (All I asked was that the news terminals he was creating, which are now found in every office on Wall Street, be called an Archer Boxes). Hell – I was one of his first 20 subscribers. A couple of years ago – when I was starting Archer – he said he was going to make a run for mayor – I still think I’m smarter Bloomie ;)
After stuffing myself at Gracie Mansion (I insisted), I retired to the Battery Park Ritz to prepare myself for my annual walk. Every Black Friday Morning we gage the economy by stepping out on the street’s of New York – judge the crowds, and judge for myself what the economy holds. While strolling in front of Versace’s place – a line of parents with little girls in the hundreds snaked around the corner of 49th, all with cute dolls. My curiosity got the better of me and I followed the line around to see where it led. All this excitement was for the The American Girl Place on 49th and 5th. American Girl dolls are more than just dolls, they are a lifestyle for girls. Having a niece who loves these dolls, I got in line and explored the store. Wow! Girls who already had dolls were waiting at the beauty parlor to get the doll’s hair done. The store even had a mini-hospital for repairing the precious dolls. Bloomie pointed out that the Ritz even had an “American Girl VIP Package” to complete the experience.
This highlighted to me the power of the brand experience. A visit to any toy store would show you aisles of dolls in all different shapes and sizes. American Girl has created a brand experience where the dolls are merely the entry fee into the brand. Competitors could replicate the doll, and maybe even the stores, but they can’t replicate what the kids want: The Brand. The key to avoid becoming a commodity for any product or service is to focus on creating that Brand experience valued by customers. The core product has to great, for sure, but over time that will be replicated. It’s the brand that lasts.
I picked up a beautiful doll for my niece along with a book that Bloomie picked up while in the store. It was the American Girl guide to finances. In it the authors explain stocks, bonds and more to girls, all with the wonderful American Girl brand. I quickly turned to the index to find Mike’s name, but to no avail. The book didn’t even mention the Archer Terminals. I told Mike that they were saving Bloomberg and Archer terminals for the next book!
After stuffing myself at Gracie Mansion (I insisted), I retired to the Battery Park Ritz to prepare myself for my annual walk. Every Black Friday Morning we gage the economy by stepping out on the street’s of New York – judge the crowds, and judge for myself what the economy holds. While strolling in front of Versace’s place – a line of parents with little girls in the hundreds snaked around the corner of 49th, all with cute dolls. My curiosity got the better of me and I followed the line around to see where it led. All this excitement was for the The American Girl Place on 49th and 5th. American Girl dolls are more than just dolls, they are a lifestyle for girls. Having a niece who loves these dolls, I got in line and explored the store. Wow! Girls who already had dolls were waiting at the beauty parlor to get the doll’s hair done. The store even had a mini-hospital for repairing the precious dolls. Bloomie pointed out that the Ritz even had an “American Girl VIP Package” to complete the experience.
This highlighted to me the power of the brand experience. A visit to any toy store would show you aisles of dolls in all different shapes and sizes. American Girl has created a brand experience where the dolls are merely the entry fee into the brand. Competitors could replicate the doll, and maybe even the stores, but they can’t replicate what the kids want: The Brand. The key to avoid becoming a commodity for any product or service is to focus on creating that Brand experience valued by customers. The core product has to great, for sure, but over time that will be replicated. It’s the brand that lasts.
I picked up a beautiful doll for my niece along with a book that Bloomie picked up while in the store. It was the American Girl guide to finances. In it the authors explain stocks, bonds and more to girls, all with the wonderful American Girl brand. I quickly turned to the index to find Mike’s name, but to no avail. The book didn’t even mention the Archer Terminals. I told Mike that they were saving Bloomberg and Archer terminals for the next book!
