Whether it’s gasoline for your car or coffee for your stomach, it really is fascinating how branding can take ordinary commodities and transform them into deeply embedded symbols of North American culture. What’s most remarkable is how we can create extentions of those brands that command premium prices without really changing the product’s essense in a material way.
Take coffee for example. While you can walk into your neighborhood Starbucks and order from a menu of many dozens of coffees, you can also order something like a Venti Mocha Valencia for something around $4.30. This is equivalent to buying roughly two gallons of regular grade gasoline. The alternative of course, would be to drop into your local McDonald’s and McCafé your day for about $1.25. Not as fancy perhaps but dare you tell the difference in a blind taste test?
Speaking of which, there’s bottled water. Take a bottle of Poland Spring water. Nice packaging, looks clean and pure and takes you to pine forests likely somewhere near the foothills of the Rocky Mountains. At about $2.00 a bottle it seems like a bargain when compared say, to Ty Nyant, direct from Wales. At only $4.50 per bottle, it has been described as “smooth but bland…and the bottle makes a nice vase.” Fact of the matter, at least here in Toronto, Canada, tap water is many times purer…and free! Yes, a true ‘freemium’ product indeed.
So here’s the wrap: With or without social media, televison, mobile apps, the Internet or whatever medium you can think of, there’s nothing like good branding. Good branding takes the most ordinary and pervasive commodities and transforms them into something that we ‘must have’. In fact, some of us like to be seen using the brand (I’ve heard that some people carry around their Starbucks cups like fashion accessory, which is fine by me). Isn’t it wonderful that we can take something as featureless as water and get people to generate massive gross margins for us. Next time you hear someone squawk about an increase in the price of gasoline, ask them ” …and just what kind of coffee do you drink?”