Apple has some work to do with the Apple Watch. Early adopters are criticizing the new wearable for a host of problems, including limited battery life. In other words, development is progressing on schedule. Apple is breaking into a nascent market with an imperfect product just as another huge brand, Disney, did two years ago with the launch of the MagicBand wearable that manages most facets of a guest stay at Walt Disney World. Disney faced criticisms for a new device, addressed them, and is seeing strong uptake two years later. Apple will, too. The biggest challenge Apple faces is investor expectation that every new Apple product will take hold immediately like the iPhone or iPad. The Apple Watch is different: it represents an entry into an evolving market, more akin to the first Model T automobiles. (By contrast, the iPhone cracked an already established telephony industry.) As I discuss in a recently published white paper, both Apple and Disney are acting on a vision to change the way we live. Following is an excerpt discussing why I believe they will succeed.
Ease of Use
Apple and Disney designed the Apple Watch and MagicBand to look good, and they need to look good. The devices are designed to be visible extensions of you, worn prominently on your wrist instead of being tucked away in your pocket. Disney wants Disney World patrons to use their MagicBands to manage their entire stays, including checking into their lodging, buying souvenirs, reserving their ride times via the FastPass+ system, and getting their meals served — akin to using a wristband to live in a city. Apple has even grander ambitions: your Apple Watch is the key to not only buying goods and services, but also handling myriad other aspects of your life, such as managing your fitness.
Apple and Disney need you to feel comfortable about wearing your devices, and for good reason: wearables have been marred by ugly design, and who wants to wear a device that embarrasses the owner? Appearance is so crucial that Apple has departed from its usual custom of providing simple product options and instead provides 38 different Apple Watch designs, ranging in price from $349 to $17,000. Similarly, the Disney MagicBands are available in many different colors (at prices ranging from $12.99 to $29.99), and Disney makes it possible for MagicBand owners to “show off your Disney side” by customizing its look with accessories such as an R2-D2 Magic Slider.
But what makes Apple Watch and MagicBand game changers are their ease of use. Both devices eliminate an action: digging through your belongings to conduct an action. Have you ever found yourself fumbling around for your iPhone to search for a restaurant on Yelp? Dropped your Disney room key while trying to lasso your kids as you dig through your backpack? Apple and Disney just eliminated those aggravating moments and replaced them with more fluid, graceful user interfaces such as swiping, glancing, and speaking.
For the products to take hold, they need to be more than user friendly; they need to be pervasive. As Austin Carr of Fast Company notes, Disney designed the MagicBands to support your visit to a metropolis spanning 25,000 acres, comprising four theme parks, 140 attractions, 300 dining locations, Continue reading →
If you have ever rented your home or apartment to make extra income while you were on vacation, or if you’ve used a markplace like Lyft to rent a car from someone just like you, then congratulations are in order: you’re contributing to the rise of the$110 billion collaborative economy.
As consumers become more cost conscious and environmentally aware, we’re increasingly sharing goods and services with each other instead of buying new products from brands — behavior that Danielle Sacks of Fast Company labeled as the “sharing economy” (aka the collaborative economy) in 2011. And brands want a piece of the action, too. On the one hand, a new breed of start-ups such as Airbnband Lyft have quickly established themselves as popular marketplaces to link people who want to rent to each other. And legacy brands such as BMW and Patagonia are helping consumers either rent (in the case of BMW) or buy gently used products (in the case of Patagonia) from each other.
To help brands embrace the collaborative economy, entrepreneur Jeremiah Owyanghas launched Crowd Companies, a council of heavy hitter companies ranging from Ford to Whole Foods. Members of Crowd Companies are committed to helping brands learn new ways to collaborate with their customers instead of selling to them in the traditional way. Where appropriate, the council may foster partnerships among brands and start-ups to co-innovate. The council is akin to a think-tank and educational resource, earning its revenue from membership fees and from speeches and workshops. The organization is owned entirely by Owyang, who is also an active participant in the collaborative economy in his personal life, as he has discussed on his own blog.
Owyang recently took time to share more insight into the launch of Crowd Companies and the significance of the collaborative economy. As he points out in the following Q&A, the collaborative economy is not necessarily new — but the uptake of digital technology, in particular, mobile apps, has fueled an explosion of collaborative behavior among consumers. In fact, as Owyang says, the word “consumer” might become a thing of the past in the new world of economic collaboration. Here’s what he has to say:
How do you define the collaborative economy? How big is it, and why is it here to stay?
The collaborative economy is an economic model where people, corporations, and startups are creating products and sharing them. The traditional model of corporation-to-consumer is not the only model.
You’ve been an active participant in the collaborative economy in personal life. How did the collaborative economy first capture your interest?
We’ve all been active, as we’ve been using social media to source ideas, get confirmation, or share thoughts — so in some ways, the collaborative economy is not new. I’ve been using TaskRabbit for a few years, and before that renting via VRBO (Vacation Rentals by Owner), and before that eBay; so some of these technologies are not new. However, recently, with the adoption of mobile and location apps, we’re seeing greater velocity in the uptake of these tools. We can get access to idle resources in our own neighborhood (such as cars available on Uber) or even activate thousands of idle workers on CrowdFlower to solve complex problems.
On May 7, music mogul Jermaine Dupri and I were fortunate to have a byline published in Fast Company concerning four tips for successful co-branding. Co-branding — or sharing your own brand with an outside brand — is an increasingly popular way for celebrities like Justin Timberlake and major corporations such as Budweiser to generate awareness and to promote launches of products and services. The following post contains the unabridged version of our byline in case you’d like to have a bit more context about how my employer iCrossing has successfully built a co-brand with Dupri. Our bottom line: don’t co-brand to create hype. Focus on co-creating value.
To build your brand, sometimes you have to share your brand. And increasingly, big companies like Budweiser and Harley-Davidson choosing to co-brand with celebrities like Justin Timberlake and Kid Rock through relationships that range from sponsoring each other’s activities to the celebrity taking on quasi-roles such as strategic counselor or creative director.
But for co-brands to endure beyond the superficial level of a one-off press release, both parties need to stipulate realistic goals and co-create value. Those are among the lessons iCrossing and Jermaine Dupri have learned through an unusual co-branding relationship that has helped reinvent Dupri’s image as a technology leader, increased membership for his Global 14 social media community, and developed iCrossing’s image as a creative, socially savvy agency.
After forming our relationship in February 2012, within 10 months we boosted membership for Dupri’s Global 14 community by 43 percent, improved Dupri’s Twitter following from 381,000 to 620,000, increased iCrossing’s own Twitter following by more than 40 percent, and, most importantly, gave both iCrossing and Dupri recognition among mainstream influencers.
Here’s what we’ve learned along the way.
Define Realistic Goals
A co-brand starts with an understanding of what you both want out of the relationship before you start working together. And your expectations need to be realistic. In 2011, Madonna and Smirnoff formed the Nightlife Exchange with goals of building digital reach for Smirnoff and generating business for both Madonna and Smirnoff.
According to Christopher Swope of Live Nation, the relationship (which featured a special global dance talent search in 2011) has helped Smirnoff achieve double-digit sales growth in key markets (with the help of a specially branded Madonna VIP Access Smirnoff Limited Edition pack) and generate 1.8 billion media impressions. The relationship also helped Madonna make her MDNA tour the highest grossing of 2012. Not bad at all.
The relationship between iCrossing and Jermaine Dupri also started with agreed upon goals and a plan to achieve them. Dupri wanted iCrossing help to drive membership for his Global 14 community, which he launched in 2011 as a platform for young entrepreneurs and musicians to share common interests with himself and each other. He was already a music legend. He also wanted to develop his reputation as a technology and business leader.
iCrossing wanted build our reputation for thought leadership, creativity and social media by tapping into the convergence of entertainment and technology.
But our goals needed to complement each other, too. Had Dupri aspired to increase his visibility among the hip-hop community, he didn’t need iCrossing’s help. But iCrossing could definitely help him drive Global 14 membership through social media and content marketing. Conversely, iCrossing needed to define goals that Dupri was in a position to help iCrossing achieve, such as increasing awareness for our own social media and thought leadership expertise.
Co-creating means co-developing products, services, and ideas. U2 and Apple ignited the flame of celebrity/corporate co-creation in 2004, when they collaborated on the launch of the iPod U2 Special Edition, housed in a special black case, and laser-engraved with the signatures of each band member on the back.
As part of their co-brand, Apple and U2 also made U2’s single “Vertigo” exclusively available on iTunes as well as a first-of-its kind digital box set of U2’s catalog. What made the arrangement special was that two icons were sharing their most prized assets to create specially branded products, a model that we’ve often seen emulated, a recent example being Kid Rock and Harley-Davidson agreeing to offer limited-edition, co-branded Rebel Soul merchandise featuring a line coined by Kid Rock: “I can’t hear you over the rumble of my freedom.
By co-creating content, we are both developing a product to support our goals — akin to Justin Timberlake and Budweiser actually making a beer together. Co-created thought leadership is important because content consist of iCrossing’s product given the work we do as an agency.
iCrossing also acts as a co-publisher, relying on our own social spaces to disseminate our ideas and Dupri’s among Fortune 500 influencers — our own clients.
Find Natural Areas of Interest
A hip-hop mogul and a digital agency. The mogul runs a record label. The agency helps companies like Coca-Cola build connected brands. What do they have in common? Well, it didn’t take long to find out. Dupri loves social media and technology; so does iCrossing. Dupri hustles content ranging from his blog posts to Instagram photos. So does iCrossing. We’ve defined a credible intersection of our shared pursuits that makes sense for our brands.
Finding common passions makes for a more authentic relationship. For instance, Dodge Ram and country musician Zac Brown have successfully joined forces around a common interest: community goodwill. In 2010, Ram and Zac Brown launched the Letters for Lyrics partnership to deliver 1 million letters to U.S. soldiers, and in March Brown and Ram joined forces to put up for auction his own Ram truck in order to benefit Camp Southern Ground, which provides programs for children including those with learning disabilities and behavioral disorders. The relationship is no gimmick — Ram has a history of working with country artists to support charitable causes, and Brown founded Camp Southern Ground. Theirs is a relationship centered on a true passion for both brands.
Defining common areas of interest also helps you rule out activities that don’t help us meet our goals. For instance, it does not make a whole lot of sense for iCrossing to promote Dupri’s gigs as a DJ. We are not in the music and artist promotion business. Nor will you find Dupri collaborating with iCrossing on a paid search campaign anytime soon. We’re focused only on the activities that make sense for us both.
One announcement does not make a relationship. A co-brand, like a garden, needs to be nurtured to grow.
Certainly Nike and Michael Jordan created the gold standard for a committed relationship between a company and a superstar individual brand. After launching their relationship in 1984, the two brands embarked on a journey that helped change the way brands and celebrities work together — and a journey that has endured highs (six NBA championships for Jordan) and unexpected turns (such as Jordan’s shocking but temporary retirement from basketball to play professional baseball). Jordan did more than collaborate with Nike on the launch of a line of shoe wear; he literally became a business partner. The Jordan Brand, a division of Nike, helps Jordan earn $80 million annually in retirement. And Nike has obviously benefitted, releasing its 28th shoe in the Jordan franchise in 2013 and commanding 58 percent of the shoe market in the United States according to SportsOneSource.
Jordan and Nike have provided a model for anyone who aspires to create a long-term relationship, including iCrossing and Jermaine Dupri. We have also stayed committed to achieving our goals for more than a year, investing our time and effort to brainstorm on ideas, adjusting our approaches when needed, and refining our messaging as Global 14 has evolved. We focused first on creating content on social media and then more actively brought event appearances into the mix, and we’ve also adapted our story to bring in fresh thinking, such as how a CEO like Jermaine Dupri can become more effective thanks to social media.
Relationships are going to experience occasional hiccups, such as the awkward moment that occurred when it was reported that Alicia Keys uses an iPhone after she signed a co-brand with Blackberry. No relationship is perfect, and you’re both going to need to be open to learning and growing together in order to succeed.
We believe that iCrossing and Jermaine Dupri are creating a model for co-branding because of our focus on creating content together. Stay tuned. We’re just getting warmed up.
If Steve Jobs were alive today, he would be the first to tell you he was not the only person responsible for making Apple succeed. But let’s face it: Steve Jobs defined the Apple brand, a reality that has been underscored lately by grumbling among the pundits that Apple is in danger of losing its swagger and cool (examples hereand here). Maybe Jobs defined Apple too well. But the reason we can’t stop talking about him today is that he transcended the Apple brand and did more than sell products. He was a market maker. I recently introduced the term market makerto describe business people who act like artists and change the world with their personal visions. Successful marketers sell things; but market makers inspire people to act, to believe, and to live their lives differently. Jobs is one of four market makers, including Ahmet Ertegun, Anita Roddick, and Guy Kawasaki, whom I profile in my recently published white paper, How to Be a Market Maker. Jobs influenced entire industries, ranging from consumer products to music. But is he so extraordinary that everyday people cannot relate to his achievements? I think not. I believe we can adopt a little of Steve Jobs at his best by living our lives with passion no matter what we do.
Steve Jobs is the kind of market maker we might call a creator. Creators are directly involved in the development of products and services for a company. Creators have a vision for how the world should work and are bold enough to impose that vision on those around them through the products and services they develop.
By now Jobs’s life is so well known it plays like the plot of a movie we’ve all seen hundreds of times (and, of course, we’ll soon be able to see a real movie about him): his explosive early years at Apple, when his company introduced a new vision for fusing design, user experience, and computing; the exile from Apple, when he founded the revolutionary Pixar Animation; and his glorious second act as CEO of Apple, when the company completely disrupted industries ranging from music to telecommunications by introducing wave upon wave of innovative mobile devices that changed how we consume content.
Throughout his storied career, Jobs, more than anyone, humanized technology. So great was his impact on popular culture, that upon his death, his image graced the covers of publications ranging from The New Yorker to Rolling Stone. Macs came along when personal computers were widely perceived as the province of a nerdy few. Apple did something that still seems astounding: turned an impersonal computing device into something warm and desirable.(My family still owns our clamshell iMac from the late 1990s — even though we don’t use it anymore, we just love having it around because with its sleek cover and aqua green finish, it looks like a piece of art.)
And of course Apple helped disrupt the entire music industry through iTunes and the iPod — liberating music from the limits of analog and empowering consumers to make music part of their mobile lifestyles. As Randy Lewis of the Los Angeles Timeswrote, “With Apple’s iTunes and iPod, [Steve Jobs] revived the single, put music libraries in fans’ pockets and posed a challenge to brick-and-mortar record stores and radio.” Record companies, betting on the long-term success of the compact disc, failed to respond to how Apple was helping to turn consumers from album aficionados to snackers of individual digital downloads. The music industry is still trying to catch up.
Jobs’s legacy at Apple is so astonishing that it’s easy to overlook what he accomplished by founding and developing Pixar. Pixar would eventually do far more than create high-quality blockbuster entertainment. Pixar changed movie making. Pixar movies taught Hollywood how to gracefully fuse technology, humanity, and storytelling. The Pixar team created movies that somehow turned animated objects like toy cowboys into fully realized characters injected with humanity.
In doing so, Pixar made it cool for anyone to enjoy a family film: single gay male urbanites, suburban parents, children, teens too self-consciously hip for Bambi — to name but a few demographics. Pixar has touched. Pixar launched animated movies that children can enjoy again as fully-grown adults — and that adults can enjoy for the first time without children in tow. By contrast, even Disney classics like Snow White and Pinocchio are forever remembered as animated family movies that children appreciate the most.
Steve Jobs best exemplifies a trait common to all market marketers: a burning passion. Steve Jobs “put passion into products,” noted James B. Stewart in one of the many heart-felt tributes to Jobs written in the aftermath of his death in 2011. In his acclaimed biography, Steve Jobs, Walter Isaacson describes the moment when unveiled iTunes to jazz trumpeter Wynton Marsalis, who turned out to be an indifferent audience:
“Watch what it can do!” Jobs kept insisting when Marsalis’s attention would wander. “See how the interface works.” Marsalis later recalled, “I don’t care much about computers, and kept telling him so, but he goes on for two hours. He was a man possessed. After a while, I started looking at him and not the computer, because I was so fascinated with his passion.”
Isaacson also recounts the time Jobs decided to make a major overhaul to the design of the iPhone as the project neared completion, telling designer Jonathan Ive that “‘I didn’t sleep last night because I realized that I just don’t love it’ . . . Ive, to his dismay, instantly realized Jobs was right.”
In fact, Jobs expressed his passion for design in every aspect of his life. He personally supervised the construction of an old-fashioned brick factory-style building for Pixar, and according to Brent Schlender, if the colors of the custom-made bricks were not distributed evenly enough, Jobs made the bricklayers tear apart the bricks and start over. (But those exacting standards also had a down side. When people failed to live up to what he wanted, he could be brutal and insufferable, as you can read in Ben Austin’s Wired August 2012 cover piece, “Do You Really Want to Be Like Steve Jobs?”)
All the market makers profiled in this white paper demonstrate passion.
Anita Roddick, founder of the Body Shop, was passionate about human rights, and, in particular, women’s rights. The entire premise behind the Body Shop was selling cosmetics without sexism and eschewing the cult of youth. Guy Kawasaki is passionate about injecting enchanting values and practices in the work place — and if you’ve ever worked with him, you know he has an equally strong zeal for clear, simple communication. Ahmet Ertegun, co-founder of Atlantic Records, was so passionate about music that he sometimes lived in the studio with the artists on his label.
It doesn’t matter whether you work for a pet food store or write for a living: you can be a market maker by acting with passion.
Co-creation is the future of marketing. As my colleagues at iCrossing discussed in a white paper last year, both brands and consumers are acting like their own media now, with access to the same tools to publish their own ideas year-round. So it’s only natural that those two worlds would converge. Content co-creation occurs in a few important ways: