Until now, that is. Earlier this week we witnessed possibly the first true brand merger. Yes, it does seem contrary to the statements above, but it is true. Office Depot and OfficeMax, two well-known powers in the office supply industry, have agreed to merge. These companies are so similar that they have long been virtually interchangeable. Who among us has not given someone directions to the Office Depot down the street, only to have them arrive at an OfficeMax? And here’s the thing – it doesn’t matter. The difference between the brand experiences is minimal, and the same office supply needs are being met.

This feels like a match made in brand heaven, and we thank the powers that be for bringing OfficeMax and Office Depot together. The effort to save jobs and supply small businesses is necessary and admirable. May we all hope, however, that the resulting name is not OfficeMaxDepot.

Aaron Keller
Managing Principal
Likelihood of Confusion Instigator

Here’s one of mine.

Part of my graduate studies in retail strategy included time in Manchester, England, a town comparable to Detroit here in the U.S., but further along in its recovery as a new economic engine. My time there included a fair number of hours in “our” local pub. We adopted this pub because of its location and community aesthetic. The place felt like a rough diamond only we knew existed. It wasn’t a famous pub and certainly not one tourists would visit—that wouldn’t be authentic. And to our knowledge, it wasn’t part of a chain—that would be idiotic.

After three months and many pints, we found ourselves wandering down the street in a direction we hadn’t been before. A discovery was made. Our pub was part of a larger chain of pubs under the ownership of Mitchells & Butlers. Each pub had a local first name, an ampersand, and the national name. Much like Mitchells & Butlers.

As much as consumers believe they are brand aware, we believed we were superbly brand aware, so being fooled like this was humbling. But, it was also a great lesson in localization. We have the ability to localize, and therefore personalize an experience for our patrons. This isn’t something that just applies to a pint in Manchester. If done right localization can garner greater loyalty, and with loyalty comes greater margin—there are a million ways to localize if you’re creative.

Look for interesting stories like this and more at the Packaging That Sells conference in October. If you don’t hear it coming from the stage, have more conversations with the people in the hallways. Stories will be shared and lessons passed on, for that we are certain.

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“We went back to the essence of NASA, which is not about technology or politics but a dream,” Base designer Thierry Brunfaut tells Co.Design. “So we went with a fairly neutral typeface that won’t look immediately dated. But we also wanted to de-emphasize the name in the logo to create more of a symbol that would be universally understood. So we eclipsed the name with a giant sphere, which could be Earth or any other planet. The idea is to suggest an infinity of possible discoveries, new planets, new worlds . . . An infinity of possible paths to our future as mankind.”

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A quick Google search yielded 75,400,000 hits! Every type of Authenticity claim was being made:  Authentic shoes, Authentic Ireland, and my favorite, “The Original” Authentic Roof™ Synthetic Slates.  Seems everyone wants to be Authentic these days.

Realizing I wasn’t getting the insight I needed, I went old school and looked up Authentic in the dictionary (on my phone!) to get a more focused view on what the word meant.

a: worthy of acceptance or belief as conforming to or based on fact [paints an authentic picture of our society]
b: conforming to an original so as to reproduce essential features [an authentic reproduction of a colonial farmhouse]
c: made or done the same way as an original

Finally we’re getting somewhere.  My takeaway was this: Made or done the same way as an original; not false or imitation, which implies being trustworthy.  So Authenticity = Trustworthy, and when you break down the porte manteau, you come up with Trust = Worth.  People want a product they can trust and they are willing to pay for it, and at the same time, when you lose consumer trust, products lose value, which brings us to my first point:

CONSUMERS CARE ABOUT BRANDS AND PRODUCT PROMISES

The Brand is what gives the product its authenticity and credibility.  The brand includes everything from the name, the look, the logo, the color and the package. —Ries Pieces, Feb 27, 2009

Let’s look at an example of this in the form of orange juice, or more specifically, Tropicana orange juice.

Pepsi Co, the owner of this brand, decided a facelift was in order. They left behind the classic icon of the straw emerging from an orange for a more minimal, modern look.

Consumers were confused.  They wanted the Authentic packaging (remember, Authentic also means done the original way) and voted “no” with their dollars.  After the rebranding, sales went down over 20 percent, and within two months the company went back to the original packaging—but with a twist.  This leads to my second point:

CONSUMERS WANT NEW AND BETTER, NOT NEW AND DIFFERENT

The newly-redesigned packaging worked, not just because it delivered on the consumer’s expectations of seeing the orange with the straw, but because it had new functional benefits.  The bottle was clear, allowing you to see how much juice is left, along with a contoured neck for easy gripping and a larger top that was easier to open and easier to pour.  I was also told by someone in the packaged foods industry that it was also easier to spill, which was a nasty trick to get people to buy more product (but we’ll leave that for another blog post).

The concept of new and better, not new and different, has been one of my guiding principles as we continue to look for ways to improve our marquee product, the 59FIFTY fitted hat, also known as the official on-field cap of Major League Baseball, and easily the best known fitted cap in the world.  New Era sold over 45,000,000 hats last year, so we must be doing something right.

Let’s look at a little bit of baseball uniform history before we talk about future ideas in headwear and the role Authenticity plays in our brand.

Look at the two uniforms next to each other and you will see almost a century of time gone by, but both uniforms have similar touch points:  both jerseys are collarless, have a button front placket, and both players wear caps.  The difference is in fit, fabric and function, but both are easily recognized as baseball players. Let’s look more specifically at caps.

Joe DiMaggio is wearing a wool cap.  We laugh now at the choice of materials, but at the time, wool was a technical fabric.  Unlike cotton, it stretched and it kept its thermal properties—even when wet.  The 2004 MLB on-field cap on Jason Giambi made a major breakthrough in baseball caps because it was made out of performance wicking poly.  Fast forward to the 2012 on-field cap on Derek Jeter, which has the latest in cap technology, because it has thermal resistance and a UPF factor of 50.  But again, you will notice each cap still looks like a cap.  We didn’t suddenly switch to two visors just to be different, we simply polished the diamond.

There’s a reason why New Era is the no. 1 headwear brand in the world.  We stay Authentic to our brand.  We deliver on consumer expectations of our product.  Trust here equals worth, and when we do make changes to our product, it is to increase functionality that delivers on our consumers’ needs, and in this case, Major League Baseball players’ needs when playing the game.

We are constantly working on new ways to improve our product.  We are in continual contact with the equipment managers of all MLB teams and you better believe we have a pipeline of new ideas on how to make athletes (both professional and weekend warrior) perform at the peak of their game.  But you also better believe that our caps are still going to look like caps—that is, until this whole two visor trend starts to gain some legs.

Then there is the Australian-style liqourice. This variety is smooth, soft and very thick (which is, what I’m told, makes it Australian). I purchase my favorite kind, Wiley Wallaby Australian Style liqourice, from the boutique grocery near the Capsule office that boasts a large selection of local Minnesota products.

What does my delicious Wiley Wallaby liqourice have to do with local products? It turns out, Wiley Wallaby is a Minnesota-based company, hailing from Perham–a small town about three hours Northwest of the Twin Cities. But you would never know it by looking at the packaging. Is this product local or exotic? Does it matter?

Brands undoubtedly capitalize on locale in the marketing of their products. Think of Volkswagen. From its “Das Auto” tagline to its Autobahn Sales Event with the adorable German spokesperson, VW relies heavily on its German heritage. Would a VW be as attractive without its German association? Likely not, as many purchasers are drawn to the allure of German automobile engineering.

So what does being Australian say about a brand? Aussie hair care products, produced in America by Proctor & Gamble (and not sold in Australia), sport the image of a kangaroo. Outback Steakhouse, founded in Tampa, Fl., models its image and dining experience around the idea of the boundless and adventurous Australian wilderness. Foster’s Australian lager is an Australian brand, but does not enjoy widespread success in its own country.

And Wiley Wallaby liquorice? There isn’t a kangaroo on the bag, but there is a wallaby, which pretty much seems like the same idea. With “Australian” to your name, even when you are not really Australian, you seem to take on the personality of natural, adventurous and larger-than-life.

For the record, Capsule’s resident Aussie–Research Manager Yvette Webster–claims there is no such thing as Australian-style liquorice. But would we be as likely to buy Wiley Wallaby if it boasted Perham-style licorice? Maybe. Maybe not. But the question is worth asking yourself as you go about consuming in your daily life.

What does location say about the brands we associate ourselves with and the products we purchase? What do our choices to purchase those products say about us? And are we at all concerned about authenticity? All this thinking is making me hungry. I think I’ll go buy a bag of liqourice.

“Keep Calm and Carry On” was part of a three part propaganda campaign in WWI-era Britain. The posters followed strict stylistic guidelines to prevent counterfeit, including use of a “special and handsome typeface” and the emblem of the crown of King George VI. The first poster read “Your courage, your cheerfulness, your resolution will bring us victory.” The second read “Freedom is in peril. Defend it with all your might.”  The third poster, the “Keep Calm” one, was produced in a quantity of 2.5 million for use in the most dire of invasions. As such, the poster was never officially issued and was not viewed by the public until an errant copy turned up over fifty years later in an unexpected place.

Barter Books, a secondhand book shop located in northern England, was once a victorian railway station. Today, books stand where the tracks once were, but there are still many reminders of what the old building once looked like. The owners found the “Keep Calm and Carry On” poster in an old box of books they received from an auction. They fell in love with it, framed it, and hung it near the store checkout where customers regularly viewed it. The poster grew so popular with customers that the owners began reproducing it, and its popularity went global.

What accounts for the massive popularity of this poster, decades after and miles away from its original creation and intent? Initially, I tend to think it was the beautiful simplicity of the message and the design. We here at Capsule certainly appreciate the value of simplicity in message and design. But the poster’s appeal goes beyond that. I believe that we as human beings are inherently drawn to things that are “special.” We seek out little nuggets of value in our daily lives that make us feel all warm and fuzzy inside. For example, I love putting on my lululemon running clothes that have a secret, motivating message embroidered in the hem. Someone has thought hard about how I will use these clothes, and knows that I, like thousands of women out there, sometimes need that extra little bit of encouragement to get out for my daily run. When I don my lululemon running shirt, I am wrapped in something special.

Similarly, I believe that people are drawn to the “Keep Calm and Carry On” poster because of its storied history. Commissioned in an age where the elegant world of royalty was much more prevalent, the poster carries a symbol of its era of origin. Furthermore, the poster was crafted for a very serious purpose. Its message may be widely applicable today, but fans will always know that the words were once meant to calm and comfort a frightened and grieving nation. Finally, the “Keep Calm” poster was lost for years. Although now ubiquitous, it was unearthed as a precious gem never before seen by the general public. Combined, these things cause the souvenir you purchased from the local boutique to carry with it mountains of intangible value, far beyond the paper it was printed on.

At Capsule, we believe in finding that special element in everything we design. It might be the delicate intricacy of letterpress on business cards. It might be the hidden meaning behind a corporate mark that tells the story of a company’s rich and proud history. It might even be the discovery and use of our very own “special and handsome typeface.” No matter the brand element, Capsule knows that if it carries with it something intrinsically special, people will respond to it emotionally and form an internal bond with the brand that will keep them coming back for more. The key is to justify their loyalty and keep delivering special elements in everything you do. And under no circumstance should you forget to “Keep Calm and Carry On.”

If you’re an investor, you know the value of a great team. Which is certainly what they have compiled. And, as an investor, we all know it’s about the team first and then the idea; we have seen way too many vanilla ideas turned into double-chocolate crunch concepts by the right team. And this metaphor in reverse as well.

So what now?

Can a team this strong turn around a ship as big as JCPenney? You might be thinking, if this team can’t, then no one can.

Agreed.

But now what?

Where do you steer such a ship like JCPenney?

The recent past management team was seen grasping at straws [read: crowd sourcing logo in an attempt to appear youthful].

This team needs a plan better than JCP enney [this is intentionally typeset in this way to make the point everyone in design was seeing when the logo launched].

I do agree with a name change though. And, crowd-sourcing the ideas makes sense, just not the discipline. For instance, DO: crowd source ideas for how JCPenney can become relevant again to a younger audience. DON’T: crowd source your fashion design, merchandising, logo, ads or anything with a discipline behind it.

Right?

And, if you do change the name, seek something with meaning. It will signal the bold change in direction you’re expecting from everyone inside and your team.

Penney’s.

A name we all used to call it, but hopefully [big hope] it means something new to a younger audience.

Then, reinvigorate the inside first. Set the vision [design driven will need to be one of the legs of your strategy stool]. Then, get everyone excited about producing the best work they have to offer [from the custodian to media relations]. If they don’t believe it, the rest of us certainly will be suspicious.

From here, the Penny is yours to turn into something more relevant, meaningful and engaging. We all hope you do, because as stated before, I think we would all agree, if it isn’t you, who then? Perhaps a fire sale to H&M?

If you need someone to help fill the gaps, we are north just a bit and fiscally interested in your efforts.

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For instance, when Google started, got investors, had a name and only 15 people knew it existed, was it a brand? Or when Mark Zuckerberg passed his concept around to his college friends and they started using it, was Facebook a brand? Or is it when the trademark office approves your filing for a trademark registration? Or is it when you reach a certain number of visitors? Or, perhaps less likely, is it when you run your first ad?

This is something We’ve considered for awhile.

Why? Because if it’s day one, then those who work on the early parts of a brand are making a tremendous contribution. If it happens somewhere along the path of growth, awareness and engagement, then someone should tell me when. But, more important. If a brand is a brand, day one, then it needs to be managed as a brand.

What does this mean for new ventures?

How many people have been told, we don’t need a brand, we’re just getting started. Really? So, what do you need when you get started? You need people to trust you (investors, first customers, partners). Your brand does make a contribution to trust, if managed right.

You need a great product, service, experience or offering. Yes, then you need people to be aware of it, engage with it, trust it, and hopefully very quickly start bragging about it to their friends. So, if anyone needs a brand, it is a start up, new product, new experience or service, right out of the gate. But, maybe someone out there disagrees. We’d like to hear from you and we’d like to talk with a few of your customers, investors or other stakeholders.

While this may be amusing to some who have spent enough time to understand the influence of a strong brand, it is a serious subject and should be discussed at the start of anything new, including a private label brand. The results with improve your potential for success.

Tell us your viewpoint. When does a brand become a brand?