‘Product Innovation Can Produce Purple Cows’

Al Ries is one of the most famous marketing gurus in the world… He has recently been working on ‘differentiation’. Ries, who will come to Turkey on 7 December 2004 for the Purple Cow Conference, explains his views in the following words: “If you try to be everything, you can’t be anything.” He believes that success usually comes with new ideas and new names. For those who want to be ‘Purple Cows’, Ries recommends differentiation in new categories.

The book “The Origin of Brands’ which Al Ries co-wrote with his daughter Laura, explains the evolution of brands. In the interview we conducted with Al Ries, who will be one of the speakers at the ‘Purple Cow Differentiation Conference 2’ which will be held at the Lütfi Kırdar Conference Center on 7 December 2004, evaluated the brand strategies of several firms and gave some warnings and advice.

What Is The Message You Want To Give In Your New Book “The Origin Of Brands’? What Sort Of New Thoughts And Approaches Can Be Found In The Book?

The main theme of the book is that over time all product categories break into pieces and this produces unlimited opportunities for the creation of new brands.

Which Instruments Will Executives And Companies Have To Use In The Future In Order To Ensure Differentiation? What Is The ‘Right’ Strategy Here?

The ‘right’ strategy is to be completely tied to the brand in a general sense. The best strategy is to be the first in a new category. Coca Cola in cola, Hertz in car rentals and IBM in computers achieved this. If you cannot succeed in being the first in the category you should position yourself directly opposite the leader.

In Your Book You Talk About ‘Product Innovation’. How Can This Be Used For Differentiation? Which Are The Successful Companies In This Regard?

Product innovation does not have to be complex or very detailed. The simplest ideas are usually the best ones. Selling books over the Internet (Amazon.com), the first energy drink (Red Bull), the first expensive coffee shop (Starbucks), the first fast-food chain (McDonalds), the first big golf club (Callaway), the first big tennis racket (Prince) can be listed as successful examples.

“95 Percent Of New Launches Are Unsuccessful”

You Have Been Conducting Research On Brands For Years. How Many Brands Fail Worldwide Each Year? What Are The Main Reasons For This?

Most new products and their related brands are fiascoes. According to one study, 95 percent of all new launches in foodstuffs and pharmaceuticals are unsuccessful. This is confirmed by the results of our experiments. So, why is this? The most important reason is using the same brand in every kind of new product. Ninety percent of new launches in the foodstuffs and pharmaceuticals sectors make this mistake. Of course, this does not mean that every example is unsuccessful or that every new brand will be successful.

But again, a new brand has a much better chance of success than a new product which is launched with an existing name. Studies show that every success story was written with a new brand. Starbucks, Red Bull, Palm and Blackberry are examples of this kind of success.

Nihal Köz
nkoz@capital.com.tr