Professional Documents
Culture Documents
Contents
INTRODUCTION........................................................................................................... 5
What is Cult Branding?............................................................................................... 6
The Beginnings of a cult brand................................................................................... 8
Love the hate mail...................................................................................................... 9
The Seven Golden Rules of Cult Branding................................................................11
Maslow: The Father of Cult Branding........................................................................13
Why the Hierarchy of Needs Is a Crucial Tool for Branding?.....................................14
So how does this relate to Cult Branding ?...............................................................15
CASE STUDIES OF CULT BRANDS.............................................................................. 16
The Volkswagen Beetle............................................................................................. 17
Apple........................................................................................................................ 19
CONCLUCION............................................................................................................ 21
Bibliography............................................................................................................. 25
INTRODUCTION
We must know that brands don't belong to marketers. Brands belong to the customer. Brands are
spheres of influence, and the most magnetic brands win in the marketplace. Further then we try
to discover the seven rules of cult branding. In the end the paper concludes with the discussion
on world famous cult brands to uncover what actually made them attain that status. There are
important learnings in this work, not only for academicians, but practitioners as well.Cult Brands
are a special class of magnetic brands that command super-high customer loyalty and almost
evangelical customers or followers who are devoted to them. In this paper we try to unveil the
power of cult brands.
If the business were to be spilt up, I would be glad to take the brands, trademarks and goodwill
and you could have all the bricks and mortar-and I would fare better than you.
(John Stuart, Former Chairman of Quaker Oats Ltd)
Brands definition :-"a name, sign or symbol used to identify items or services of the sellers and
to differentiate them from goods of competitors."
However all brands are not Cult brands , even a successful brand may not be a Cult Brand. This
paper attempts to investigate what is a cult Brand and how is it different from other Brands?
A cult brand is not something you will ever see on an Inter brand survey. Ignore the hype. Coke,
Levis or Sony will never be a cult brand. To be cult is by definition to be obscured. You know
because you are obsessed, not because you have watched a 30 second spot on television.
The great thing about cult brands is you feel like you are part of something bigger than the object
itself. In almost every category of things there will be a standout secret brand that only the most
devoted know about. I don't know them all. I know a couple. You will almost certainly know a
few yourself.
Most Brands fail for one primary reason: instead of building a brand some people love,
companies build brands no one hates. Most marketers live in a world where they are constantly
searching for the flashy, the instantin short, the trivial.
The customer's embrace is the only vote that counts, yet it is constantly ignored by strategies that
place our products and services as the goal rather than the means to satisfy our customers
needs, wishes, and fantasies. Successful brands embrace their customers by anticipating basic
and spiritual human needs. Success creates magnetic brandsCult Brands.
Many brands claim to be popular. Any toothpaste can be popular. So can most any breakfast
cereal if it's tasty enough. But here's the question: Would you ever talk about toothpaste or
breakfast cereal with your friends?
A few special brands, it can be said, take popularity to a different level. These are thesocalled cult brands: Harley-Davidson, Star Trek, Volkswagen, Apple Computer, and several
others, according to a new book, The Power of Cult Branding: How 9 Magnetic Brands Turned
Customers into Loyal Followers (and Yours Can, Too!). Even Oprah Winfrey is a brand, and a
cult brand at that, the authors say
That's all fine, but what is a manager to think? How does a brand cross the line fromhohum to heaven-sent, to be one that customers will really champion? Should every brand be
groomed for potential cult status? What are the pleasures and perils of managing a cult brand and
its sometimes-obsessive customers?
As revealed at the student-run Harvard Business School Marketing Conference held in
November, there are definite pointers to keep in mind. For starters, though, you know you've got
a cult brand when customers do the following:
1.Name babies after your brand. This happened to the sports channel ESPN, said Lee Ann Daly,
senior vice president of marketing for ESPN and a participant in the conference session. The
three babies, born to different sets of parents in the past 2-1/2 years, are named Espen, Espn, and
Espn (again!), respectively.
2.Become highly emotional when you change the color of your logo. This happened to Apple
Computer after it changed the color of its multicolored apple logo to solid red. Some of the
original Apple logos, reported Phil Schiller, are now bought and sold on the online auction site
eBay.
3.Drink a six-pack of your beverage every day: a high-sugar, high-caffeine beverage. This is the
happy situation for Mountain Dew, said Frances Richford, vice president of innovation for Pepsi,
which oversees MountainDew.
Cult brands "dare to be different," observed Matt Ragas, a panelist and co-author of The Power
of Cult Branding. Cult brands sell lifestyles, not just a product or service, he added. But cult
branding is not a viable path for every company. "I would love to say it is, having written a book
about it, but it's not. Most companies don't have the risk-taking mentality.In cult branding, the
management and marketers behind it are willing to take big risks and they understand the
potential pay-off," he said.
Smart companies regard their cult brands as an asset and never rest on their laurels, realizing that
even a brand people love in its present form has got to grow and change to survive, panellists
said. Added author Ragas, "All these brands help give people an identity. People like to be
different. At the same time, they would like to be part of a group that acts different. Cult brands
hit on that fine line."
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Why do people love this brand? Why are they so loyal to it? What does this brand mean to them?
Why? Why? Why! An interesting thing starts happening after you've asked a lot of questions for
a long enough period of time. Not only do you start getting some really good answers, but you
begin to see patterns and similarities between the responses that you receive. This was exactly
what happened in the dozens of interviews conducted. Clear patterns emerged. Although each of
the nine brands was clearly different, their individual formulas for Cult-Branding success shared
many of the same core ingredients.
These seven points won't tell you everything there is to know about Cult Branding, but they will
give you a nice overview and practical framework to utilize in your own marketing endeavours.
Think of this list as your indispensable "Cult Branding Cliff Notes." Here they are. Read them.
Use them!
Consumers want to be part of a group thats different. Our society is addicted to communication.
We use these devices to form and maintain distinct social groups, since as human beings we are
inherently social animals. We not only enjoy being part of groups made of likeminded individuals, but we all enjoy being different and standing out from the rest of the pack.
2 The Golden Rule of Courage CultBrand inventors show daring and determination. Consumers embrace Cult Brands and are loyal
to them because their creators pushed the limit, took significant risks, and produced new and
different things. Consumers are tired of being bombarded with products and services that all look
the same, feel the same, and act the same. They want surprises. Cult Brands stay with us. Bland
brands fade from memory.
3 The Golden Rule of FunCult Brands sell lifestyles. Human beings want to have fun. At their core, Cult Brands are always
fun. They make us happy. They cheer us up when we're down; they help us enjoy life. Not only
do they provide escape, but the companies develop and sell tools that allow followers to pursue
their dreams and celebrate new lifestyles.
the congregation, value their opinions, and reward them. Do extraordinary things for them, and
they'll become incredible evangelists.
process, kept the customers in a community, and served the brand to them to live by. This is a
marketers dream. Every company should strive for a cult following from there best customers.
Every company is able to do it. They just have to be honest and listen to the customer. If you
cater to a loyal customer not only will they become a life long customer, they will spread the cult
message. It will spread like a virus. Every marketer must known to hug their customers and
attempt to make a cult brand.
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Self-actualisation
Esteem needs
Belongingness and Love needs
Safety needs
Biological and Physiological needs
At the bottom are physiological needs, which include basic things like food, shelter, and clothing
that we all need to survive
At progressively higher levels are the needs for safety and security, social interaction, and self
esteem.
At the top is self -actualizationMaslow's term for the ultimate human need to learn, grow, and
reach one's full potential as a person.
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Despite an initial lack of acceptance, within a few years H.O.G. chapters started appearing
around the country. The spread of these groups was gorilla marketing at its best: membership
was generated primarily from inexpensive promotions at dealerships and word-of-mouth. H.O.G.
groups gave enthusiasts a structured way to meet, swap stories, and schedule rides with other
evangelists. Harley made a wise move in requiring every H.O.G. chapter to have a dealership
sponsor. The result of this stipulation was a tighter relationship between Harley dealers and the
customers, as well as an increase in parts and merchandise sales.
They didnt stop with creating members groups. They started sponsoring rallies around the
country. In doing so, not only did they solidify their communities, but they also used the rallies
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as a killer sales tool. They bring motorcycles to the rallies for people to tryout. This concept
reaches its apex each year at Bike Week in Daytona Beach and the Sturgis Rally and Races in
South Dakota. Collectively, the events attract over half a million Harley enthusiasts. Harley takes
feedback its employees receive at these events very seriously. Opinions they receive from
customers affect what is produced in product lines and the way they run their rallies. This desire
to appeal to the customer has been extended to the point that Harley offers the option of
customizing their motorcycles. This allows Harley to rack up higher-margin sales, while
allowing consumers who buy a custom Harley feel like they are not only joining the Harley
nation, but that they are also exercising their own individuality.
In creating these events, and paying attention to its customers, what Harley is ultimately selling
through its motorcycles is the opportunity to experience the feelings of raw freedom and
empowerment that one receives from strapping on some leather and riding a bike down the open
road. These are feelings common to Americans of all ages, races, and backgrounds.
sleet, and snow; its exterior design was unique, with its egg-shaped body standing in sharp
contrast to the large and sleek,chrome-covered domestic behemoths of the period. The Beetles
appearance oozed a
curious combination of personality and practicality, which quickly helped build strong affection
for it among its owners.
In addition to developing a unique design (the look), Volkswagen focused on developing a
unique marketing message (the say and the feel) for the Beetle. In contrast to the advertising of
the Detroit automakers of the 1950s and 1960s, which was full of slick copy and boastful claims,
Volkswagens ads for the Beetle were frank, direct, and honest. Some of the more memorable
early print ads included Think small, Some shapes are hard to improve on, and the cultbranding clincher, Do you earn too much to afford one?
The combination of unique design elements and honest advertising became a killer combination.
By the early 1960s, the Beetle became a magnet for legions of Americans who saw themselves as
being different. As Bug Tales author Paul Klebahn summed up: The Beetle tended to appeal to
freethinkers. This was the thinking persons car. Instead of saying, look how much I paid for my
car, it was look how much I didnt pay!
When Volkswagen launched the New Beetle in 1998, they made a conscious decision not to
show any drivers in its ads. They wanted their funky-shaped and lovable car to be the centre of
attention, not an actor or actress. In the New Beetles initial advertising, we never included
people in the ads because we didnt want a person to say, Oh, thats who drives a Beetle,
explained Steve Keys, Director of Corporate Communications. We wanted you to be able to say,
I can see myself in that car.
It was a good move: everyone from teenagers buying their first car to aging baby boomers
hoping to recapture their youth purchased the car. Volkswagen benefited from not shrinking its
potential audience of buyers: No one had trouble seeing themselves behind the wheel of a New
Beetle.
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Apple
Apple Computers is the epitome of self-empowerment and self-fulfillment combined in one
brand. How else to describe a Cult Brand whose original slogan for the Macintosh was, the
computer for the rest of us? Of course, the rest of us were those brave individuals who wanted
to control their own destinies and break free of the systems controlling grip and authoritarian
ways. In the eighties, Apple painted this dark controlling force as being IBM, while in the
nineties it became Microsoft and Bill Gates. As Christopher Escher, former VP of Corporation
Communications, noted: They turned computers, which are essentially a product for business
people to crunch numbers with, into symbols of self-realization and liberation against social
constraints.
In the mid-nineties, things were looking pretty grim for Apple. The company was steadily losing
money, it lacked strong leadership at the top, and the firms overall share of the PC market was
continuing to slip. While Apple continued to have millions of loyal customers around the world,
it endured this period thinking that any day a large competitor would buy it out, or that it would
fail outright. Then, after more than a decade away from Apple, Steve Jobs came back as interim
CEO in 1997. Jobs, through a savvy combination of internal cost-cutting, revamped marketing,
and new product launches, turned Apple around.
In 2001, Apple announced the launch of the sleekly designed iPod. While not the first digital
music player, the market lacked quality and was absent of any standout devices. Apple focused
on the small size of the device, ease of use, and the sleek design, and transformed it into the
digital music player by which all others are now measured. After the launch of iTunes, the digital
download service, in April 2003, Apple started its now famous ad campaign with silhouetted
figures rocking out to tunes. These ads injected a human element into a market that focused
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solely on the boring technological aspects of the devices. Apple realized that people dont just
want to carry music, they want to jam out to songs that reflect their personalities.
This attention to what customers wantform, ease of use, and individualityhas paid off more
than anyone could have ever guessed. To date, Apple has sold over 42 million iPods, and passed
over 1 billion downloads on iTunes. In the first fiscal quarter of 2006, Apple reported sales of
over 14 million iPods, leading them to $565 million in revenue, the highest in the companys
history.
Apple doesnt just build products, they build products that their faithful want. And, they have a
variety of interesting ways of preaching and listening to the choir. For starters, Apple hosts a
User Group University at Macworld expo where leaders from Mac UserGroups
those essentially independent clubs started by Apple aficionadosmeet with each other for a full
day of workshops and conversations about Apples latest products. Apple showers all attendees
with free logo merchandise, as well as employee discounts at the company store. Not only does
Apple come away with invaluable feedback from a great group of customers, but it reenergizes
the key faithful. Apple also asks individuals who run successful Mac User Groups in their
communities to participate and to help Apple work with less successful user groups in the region.
They continually gather feedback for Apple and look for Mac success stories to share. By
following this game plan, Apple is able to give its customers the product enhancements they
really want instead of guessing what the whims of the customers might be.
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CONCLUCION
The Bug hit the roads with a vroom in the year 1938, when it went into mass production. Racing
through difficult terrains, Volkswagen Beetle aka The Bug, outpaced Henry Fords T-model as
the worlds best selling automobile in 1981.
While many sporty sprites slip out of the fast lane into the deserted streets of oblivion, The Bug
still is the passion of millions. There are hundreds of active fan clubs, dedicated to restoring and
driving old Bugs, and promoting interaction among proud owners. Rallies and meets of classic
Beetles still cast a magic spell on thousands of obsessed Beetlers. In fact, VW had stopped
importing the Bug into the US market since 1977.
What fascinates marketers and business pundits about the Beetle is how it managed to stay at the
top of Maslows Hierarchy of Needs for five decades. The mystique charm of the Bug and the
emotional connection it makes with its owners made the company relaunch the car in 1999. Its
passion like this that makes it a Cult Brand.
Customer loyalty
Robust markets have seen companies suffer from the Revolving Door Syndrome. This means
that companies experience high customer attrition rates and face low customer loyalty. This
syndrome has left business pundits and academicians pondering about: Why do some brands
enjoy deep customer loyalty and become cult brands, while some remain mere brands, and yet
others slip into oblivion?
The answer to this question lies in understanding the DNA of Cult brands realised Matthew W
Ragas co-author of the best selling book The Power of Cult Branding. He decided to scrutinise
cult brands and break down their success formula into actionable points.
Defining a cult brand
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Ragas defines a cult brand as those that make a deep impact and establish an emotional
connection with the customer. They have the power to convert their customers into brand
evangelists.
What gives brands their cult status is that customers become passionate - almost obsessive about
them - something that is absent among brands with mass appeal. More importantly, followers
of cult brands see no viable alternative for them in the market. Quite like the Harley-Davidson!
Awesome Nine
Ragas and his co-author BJ Bueno identified nine such brands that perfectly fit the definition of
cult brands. They are: Star Trek; Volkswagen Beetle, Oprah Winfrey, Jimmy Buffet, Linux,
Apple, WWE (World Wrestling Entertainment), Harley-Davidson,and Vans shoes.
These are the brands that enjoy the most fanatical and loyal customer following; and consistently
connect with their customers at the very highest levels of Maslows Hierarchy of Needs.
Interestingly, all these brands began their journey on a shoestring budget.
Brand awareness half the battle won
More often than not, marketers assume that spending staggering amounts to build brand
awareness assures their products a cult brand status. Ironically, building brand awareness is only
half the solution. Companies like Coke, Pepsi, Microsoft, Walt Disney and McDonalds might
have the largest marketing budgets, yet they are miles away from being cult brands!
The reason: Consumers might enjoy having a Coke or eating a burger, but they arent always
fervent about it. Besides, none of these brands can brag of strong customer relationships that
score high on Maslows Hierarchy of Needs.
Cult brands Vs Benign cults
Business pundits draw a comparison between cult brands and benign cults. Benign cults are
candid in their mission and goals. According to Rick Ross, renowned thought-reformspecialist,
benign cults are harmless and fulfill the emotional wants and desires of their followers in a
positive and meaningful manner. Benign cults and their followers cherish a mutually beneficial
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relationship, with both receiving immense satisfaction. ISKON is a case in point. Cult brands
develop a similar rapport with their customers.
Surrogate family
Cult brands leave a legacy. By nature, human beings resist change. When caught in a rapidly
changing environment, they seek refuge in places and people they are comfortable with. Cult
brands offer the protection that consumers look for in terms
of values, belief systems, and ideas. To sum it up succinctly, these brands play the role of a
surrogate family for consumers in a jittery market. For the brand, this evocation translates into a
passionate customer base.
Success commandments
Why is it that customers are mesmerised by the power of cult brands and speak about them like a
person seated next to them? Why do the relationships of cult brands still retain their magic? Why
is it that these brands still enjoy peak emotional connectivity?
Its the traits of cult brands that hold sway. Here are the traits that can give companies a
commanding lead in their marketing endeavours:
All-encompassing: Exclusivity, niche, and target marketing are buzzwords in markets today.
In stark contrast, cult brand companies scoff at their very mention. They enjoy the patronage of a
diverse customer base cutting across the barriers of age, race, gender, and background. The
Oprah Winfrey show has established an emotional bond with diversified customer-segments by
engaging in a tte--tte with them.
Companies will have to be open and inclusive, irrespective of its line of business. They will have
to ponder over questions like: What are consumer needs? Which of these needs can the brand
fulfil?
Listen to the choir: Listen to thy customers and act on their advice. All these nine cult brands
have a strong sharing and collaborative component attached to them. Thanks to the strong
belief in these two components, brands like Linux and Apple enjoy the fiery passion and loyalty
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of consumers. The open source development process on which Linux built its operating system is
a classic example of openness.
Companies often undermine the role of their employees in generating an open environment.
They should encourage them to speak their mind. Harley-Davidsonsemployeesare encouraged to
mix and mingle with customers.
Tout openness and inclusiveness: Advertising helps companies to send their message of openness
and inclusiveness. However, a backlash is inevitable if the message differs from how the product
or service walks, talks, and acts in reality.
Oprah Winfreys smiling photograph on the cover page of its O magazine is a case in point. It
touts Oprah Winfrey as a warm, friendly, and approachable personality. The ad carries the very
essence of Oprah Winfreys shows.
The job of the marketer doesnt end by earning his brand a cult status. The next destination is to
make it irreplaceable, incomparable, and timeless. Something that iconic brands gained!
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Bibliography
1. www.google.com
2. www.managmentparadise.com
3. www.wikipedia.com
4. www.kalyani.com
5. www.scrbid.com
6. www.acdmeu.com
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