Member-only story
How Underdog Brands Can Outsmart Their Competition
What all businesses can learn from luxury brands, according to the former chairman of LVMH
Lowe’s vs. Home Depot. Burger King vs. McDonald’s. Bing vs. Google. When a company is in second place, it is competing head-to-head against a formidable player with significantly deeper resources and stronger capabilities. Such companies are either in, or entering businesses in which there are established practices and traditions, ways of selling and marketing, and big-name recognition. The challenge is to incorporate aesthetic value into the business, such that it enhances and differentiates the brand position from the industry leader and attracts an entirely new set of customers. After all, when companies engage a customer on an aesthetic level, they win.
What do I mean by “aesthetics”? Unlike design thinking, with its focus on processes for problem-solving and solutions-based strategies, aesthetics is about lifting the human spirit and rousing the imagination through sensorial experiences. In a word, it’s about delight.
Southwest Airlines, for example, delights its customers and competes successfully against behemoths such as American Airlines and Delta through its touching tagline (“Without a heart, it’s just a machine”), incorporation of friendly colors…
