Setting Sun
OK, that was easy, and when a company is down it is sometimes too easy to pile on. However, in reading Dan Farber’s post on the cuts at Sun Microsystems and their strategy to get back on success path, it makes me relfect on what made Sun a great brand it its day. Its current focus on open source is unfortunately only a cousin of what their past succesful strategy was.
During the 90′s Sun was a great company. At the time they were a customer of mine and I was always impressed with the people, products, and marketing. What made them unique? I believe it was their vision and innovation. Sun was a leader at promoting open concepts ”for the good of the market” that resulted in a big pull for their hardware and operating systems. Examples include NFS, TCP/IP, and finally Java. Take TCP/IP, Sun was big promoter at a time when Novell and Microsoft were each battling for control with their own LAN protocols. Sun’s creation and promotion of Java changed the developer’s landscape.
So why is their current strategy a distant cousin? True it is still a drive for open standards. However, it is a follower’s strategy not a leader’s. In past campaigns they were the first and most vocal supporter. No one would view this as innovative.
Great Brands or Great Company
In thinking about the top 10 tech brands, most are actually fairly boring. They are good brands because they are represent great companies. What’s the difference? A great company produces good products, has strong profit and growth, and usually dominates the market. Microsoft for example, is great company. IBM and HP are great companies as well and with all three being around for decades, they better have some brand recognition.
However, Apple is a great brand. It evokes creativity and cool. There is a good post on Microsoft and Apple on Great Brand Thinking. What makes great brands is the image and emotion they portray is usually greater than to company.
What great technology brands do you see?
Top Tech Brands – What’s Marketing Got to Do With It?
What does it take to build a good brand? I would suggest marketing is only one component of it, sometimes a small component. In technology great brands are built with great businesses and take years to establish. Marketing can help and hurt.
According to Outside the Lines by Dan Farber tech companies dominate the top global brands. According to Dan the following represent the top 10 technology brands.
| Brand | Value ($M) | Increase |
| 86,057 | 30 | |
| Microsoft | 70,887 | 29 |
| China Mobile | 57,225 | 39 |
| IBM | 55,335 | 65 |
| Apple | 55,206 | 123 |
| Nokia | 43,975 | 39 |
| Vodaphone | 36,962 | 75 |
| HP | 29,278 | 17 |
| Cisco | 24,101 | 28 |
| Oracle | 22,904 | 29 |
What makes a good brand? I will be focusing on some great marketing and strong brands on the next few posts. Let me know if you see great high tech brands being built.
Presidential Nominee – demandware
Now that the republican convention is reaching its summit, I will nominate demandware as a presidential nominee for excellent positioning. I steered clear of larger companies such as SAP or Oracle because their brand is so well known, it makes analyzing positioning a little irrelevant. Although I do think SAP’s positioning of solutions for the mid market is an interesting challenge, but that is for another day.
As with Sterling Commerce I reviewed how they cover: description of what a company does, value they provide, and differentiation. How succinct and credible the story are also key. These 5 factors are scored as follows:
The main item I really like about demandware description if themselves is their mix of actual content with messaging.
- First of all on the web site label the company background as “Our Story”, and they tell a story
- They start with facts and problems they solve, not a long blub about the company
- They mix vision, excitement with grit.
Let’s look at the details. The main description of the “their story”
The vision-then and now-was clear: bring to market an enterprise-class ecommerce solution that would put more power and innovation in the hands of merchandisers and at the same time would remove the technical costs, risks and complexities of running an ecommerce operation. We took what we knew of great ecommerce merchandising (our founders have been in ecommerce since 1994) and applied to it the then-emerging advancements in Software-as-a-Service architectures and dynamic grid computing. Then we worked hard. We stayed up late. We drank lots of coffee. And ultimately, in late 2005, we delivered the market’s first on-demand enterprise ecommerce platform
1) What the demandware does:
“bring to market an enterprise-class ecommerce solution that would put more power and innovation in the hands of merchandisers”
Clear delivery of a solution, clear target prospect.
2) Value:
They start with facts such as
eCommerce merchandising and marketing innovation is what generates the revenue, yet most operations are spending 80% of their budgets simply maintaining current infrastructure
The description of value is bold, empower the key business champion in the prospect, limit challenges and implications for IT.
“put more power and innovation in the hands of merchandisers and at the same time would remove the technical costs, risks and complexities of running an ecommerce operation”
3) Differentiation
They tout their vision, SaaS technology and hard work. I like the mix and believe the “Then we worked hard. We stayed up late. We drank lots of coffee.” Quote adds humor and balance to the vision. Essentially, they are acknowledging it is hard stuff and they work hard.
4) Being Succinct
Very good
- 1) Start with problem
- 2) Single paragraph on company
- 3) Customer validation
5) Being Credible:
Their experience, vision, creativity oozes through.
Related is a good article by Craig Stull on Cuil. He mentions they called themselvesa Google killer. Not a very good positioning strategy. Get real. After looking at their web site they call themselves “the world’s biggest search engine”…..Hmmmm
Positioning is definitely not the be all and end all. Targeting a real market, with solid products and great customer experiences are all critical.
Let me know your thoughts.