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Unformatted text preview: ely bypassed. Lutz’s product vision for
Chrysler didn’t survive his tenure there.
Obviously, it is dicey to depend on one person to capture the essence of the
times, to inspire a breakthrough product family, and—equally challenging—
to dissolve a large corporation’s ingrained habits and turf mentality. Rather,
great brands in every industry should be built on customer relationships.
Features, beneﬁts, and prices can be duplicated; emotional connections
cannot. A deep connection with customers sustains Apple Computer even
in hard times; Sony wins hearts with its innovations and style; the public
associates American Express with security and personal attainment.
Brand equity can be squandered, however. Companies that put their names
on products contravening their brand image usually pay a price—a lesson
IBM learned from its debacle with the PCjr and Coca-Cola from the instant
outcry against its old bottle’s new contents. Both companies, no slouches
when it comes to branding, quickly recognized their mistakes. Auto executives have been slow to do the same. Unless the industry changes its ways,
it will have many more failures to ponder. The authors wish to thank Fabricio Cavalcante, Alexander Dimitrijevic, Lance Ealey, and Jeremy Eaton
for their contributions to this article. Anjan Chatterjee is a director, Matt Jauchius is a consultant, and Hans-Werner Kaas and
Aurobind Satpathy are principals in McKinsey’s Detroit office. Copyright © 2002 McKinsey &
Company. All rights reserved. 143...
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This note was uploaded on 01/16/2014 for the course MKT 362 taught by Professor Terrywilson during the Spring '12 term at Central Washington University.
- Spring '12