Rather great brands in every industry should be built

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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.

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