Thank You for Disrupting

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Thank You for Disrupting Page 14

by Jean-Marie Dru


  diversity and inclusion, environmental impact and sustainability.

  As well as the overarching purpose P&G has given itself at the

  corporate level, each of the company’s brands, from Old Spice to

  Pampers, from Tide to Always, has its proper purpose. Always

  is a striking illustration of how powerful a purpose can be for a

  brand. “Empower girls and women.”21 I have chosen the Always

  example, even if it’s well known, because the expression of its

  purpose is founded from the outset on one of the most universal

  insights a brand has ever exploited: the fear of failure.

  A global study revealed that, all over the world, the stereo-

  types linked to gender affect girls most when they reach puberty

  because that is the moment when the differences between boys

  and girls are amplified and become more perceptible. Leader-

  ship, power, and strength, for instance, are associated with boys,

  while fragility, weakness, and emotionalism are associated with

  girls. These prejudices end up negatively altering the perception

  girls have of themselves, which affects their behavior. They lose

  their self-confidence.

  The brand took on these stereotypes, using the expression

  “like a girl.” This phrase is often used pejoratively to describe

  someone seen as being too feeble or emotional, but Always trans-

  formed it into a positive statement. The brand held a simulated

  casting session with young men and women and prepubescent

  girls and boys. The participants were asked to run or fight “like a

  girl.” Young men, women, and little boys imitated girls running

  or fighting in a weak way, acting in stereotypical behavior that

  presents women as weak. But the pre-pubescent girls reacted

  completely differently. They ran and fought as hard as they could,

  with confidence, pride, and conviction. Cleary, their perception

  had not yet been formatted by prejudice and stereotypes.

  Marc Pritchard

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  The #LikeAGirl campaign has been seen more than 90 million

  times at the time of writing, and became the number-two viral video

  globally. In a study conducted after the campaign was launched,

  76 percent of people said they perceived the expression “like a girl”

  to be positive after watching the videos, while only 19 percent had

  that impression before watching. Who would have believed that a

  brand of sanitary pad, usually a low-involvement category, would

  drive such huge levels of engagement? Herein lies the interesting

  thing about a sense of purpose: It is a concept that can apply to any

  product, however it touches life. The most everyday products—a

  dishwashing liquid, a detergent, or a sanitary napkin—can have a

  sense of purpose. There are no exceptions, even in the industrial

  world. Let’s take the example of Air Liquide, a French world-

  wide leader in the production of industrial gasses. The company

  gave itself the purpose of “making the town breathe better.”22 Air

  pollution, accelerated through climate change, has become one of

  the principal factors of mortality in cities around the world. Air

  Liquide has invented processes that allow millions of people in

  cities to enjoy better air quality. The company does not just sell

  excellent industrial gasses, but it also concerns itself with vital envi-

  ronmental issues. Air Liquide wants towns to be able to breathe.

  Coming back to P&G, I was invited to Cincinnati a few

  months after Pritchard’s speech to attend a seminar on the

  theme of purpose. All the brand leaders gave presentations on

  the purposes they had assigned to their respective brands and it

  seems to me that the company doctrine on the subject has since

  become quite refined. Pritchard is more than ever certain that

  “if the purpose is disconnected from your business model, then

  it’s not sustainable.”23 Among the whole panoply of causes P&G

  has embraced, it is up to each brand to evaluate the one that best

  fits its particular personality in the most meaningful way. What

  cause makes the most sense for it?

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  The delicate balance in the allocation of marketing resources

  has then to be determined. As a former P&G executive com-

  mented, “Purpose-inspired growth is a wonderful slogan, but

  it doesn’t help allocate assets.”24 Looking for values of a higher

  order is so involving that it could lead the over-enthusiastic

  marketer to lean too heavily on brand purpose and lose sight of

  product performance. Always was able to avoid this trap. On the

  one hand, the brand pushes as hard as possible on its purpose

  to empower women and girls across the world. On the other

  hand, it continues to advertise the qualities of absorption and

  durability of its products. As such, the brand is both purpose

  driven and product led. Achieving this balance is a matter of

  dosage—how resources between the two levels are allocated—

  which reinforces the idea that purpose must emanate in some

  way from the product. The bond between purpose and benefit

  should be self-evident.

  Years have passed since Pritchard’s 2010 speech and his

  rallying cry has not escaped the fate of many widely circulated

  messages. Words, having been used indiscriminately, often inac-

  curately, can end up being robbed of their original meaning.

  Like disruption, purpose is one of these words. As of 2013, Advertising Age ran an article entitled “Is the Era of Purpose-Driven

  Ads (Finally) Over?”25 The pervasive usage of the word has made

  it a staple of marketing jargon. It has become a buzzword.

  And yet, I believe the concept has never been more rele-

  vant. Purpose reinforces the essence of the brand. It enriches a

  product’s benefits by surrounding it with context. It associates

  the brand with a motivating social cause. From the moment

  a brand is given a clear sense of purpose, it has fuel for being

  inventive in what it does and in how it communicates about

  what it does. A great purpose gives a brand a disproportionate

  share of voice.

  Marc Pritchard

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  Confirming Pritchard’s viewpoint, the Kantar “Purpose 2020”

  study26 conducted in April 2018, shows that “brands with a high

  sense of purpose have experienced a brand valuation increase

  of 175% over the past twelve years, compared to the median

  growth rate of 86%.” In broader terms, the value of brands with

  purpose grows twice as fast as the average. The findings speak

  for themselves.

  Chapter 14

  Brian Chesky

  ON BRAND BUILDING AND

  DISRUPTIVE DATA

  airbnb does not settle for just putting guests in contact

  with hosts; it dreams of a world where anyone can belong

  anywhere. A world without strangers, now that’s a promising

  purpose. A little bit of utopia can’t do any harm.

  When Brian Chesky first met venture capitalists in the sum-

  mer of 2008, none believed for an instant in his project. Chesky

  recalls, “People did not think strangers
would stay with other

  strangers. They thought it was crazy.” One of the investors even

  went as far as saying, “Brian, I hope that’s not the only idea you’re

  working on.”1 These doubts did not stop Airbnb from launching

  the first peer-to-peer accommodation platform and becoming

  the huge success we know today. To summarize Chesky, this was

  accomplished by “bringing the world back to the place where it

  feels like a village again.”2

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  Since 2008, 150 million travelers have stayed in three million

  different hosts’ homes in nearly 200 countries. The company is

  now present in 34,000 cities.

  It took Chesky great resilience to achieve this. He needed

  to overcome the tempestuous opposition of numerous towns,

  involving legal battles against all sorts of prohibition. And it

  looks as if this will be a never-ending struggle. Following a series

  of incidents, he had to completely change his strategy in just a

  few days and, contrary to what he said previously, he declared

  himself partially responsible for what happens in hosts’ homes.

  Finally, after a case of racial discrimination in North Carolina,

  he quickly established company policies, some of which went

  much further than federal law requires. The company always

  tries to tackle complaints head on, whatever sort they may be.

  The future of its business model depends on it.

  I chose to talk about Chesky in this chapter for two reasons.

  First, he is the very archetype of the disruptive thinker. His

  home-sharing company has shaken the hospitality business

  from top to bottom. Second, in Silicon Valley, where the word

  marketing does not always get good press, he has managed, in

  a few years, to build an iconic brand, one that was reportedly

  valued at $31 billion as of March 2017.

  Shaping an Iconic Brand

  At the beginning, adopting a brand-building approach may not

  have been the obvious route for Chesky. As Fast Company ex-

  plains, “There is a belief in much of Silicon Valley that you don’t

  need to invest in brand marketing because your product itself is

  the brand.”3

  And yet, after initial success with early adopters and word of

  mouth, the time came to scale up the business. To accomplish

  Brian Chesky

  133

  this, Airbnb had to evolve from appealing almost exclusively

  to metropolitan hipsters—people who think it’s cool to use

  the brand—to more lucrative audiences like young families or

  baby boomers. These groups still needed to be convinced. Neil

  Barrie, co-founder and managing partner at 21st Century Brands,

  comments, “You need a whole different set of tactics and tools to

  do that. Every brand faces that moment when they have to cross

  the chasm.”4

  This is a vital step for brands, like Airbnb, that are not pro-

  tected by any patented technological IP. Having a strong brand

  helped the company to outperform competitors such as Expedia

  or Priceline, and to protect itself from the many start-ups trying

  hard to invade its market space.

  For a few years now, Airbnb has been using advertising to

  illustrate the mission it has adopted: “Create a world where any-

  one can belong anywhere.”5 The brand’s campaigns told travelers

  they could act as locals. In one of the commercials, the voiceover

  gives visitors this advice: “Don’t go to Paris. Don’t tour Paris.

  And please don’t do Paris.” After a montage of selfies and of the

  city’s most famous landmarks, the ad concludes by encouraging

  viewers to “Live in Paris.”6 That Airbnb campaign was the first

  time the company was able to describe what it actually does in a

  simple and appealing way. As Nancy King, its director of brand

  strategy, pointed out, “That was the first example of product and

  marketing, two sides of the business, working together against a

  shared idea.”7

  To further substantiate its brand idea, and to continue cap-

  turing the attention of young generations, Airbnb is always

  pursuing novel initiatives. For example, in July 2015, when

  Cuba and the United States restored diplomatic relations after

  54 years, the company launched its “No Borders”8 campaign.

  It announced that 1,000 Cuban homes were available for book-

  ing and it published a full-page ad in leading newspapers like

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  The New York Times comparing this significant moment to

  another historical one, when mankind first set foot on the moon.

  The ad, which features America’s and Cuba’s respective flags side

  by side, read: “One giant leap for man’s kindness.”9 President

  Barack Obama’s endorsement helped turn Airbnb’s initiative

  into a great business opportunity. The number of Cuban hosts

  grew from 1,000 to 4,000 within a year.

  More recently, Airbnb initiated another very promising mar-

  keting idea. It rolled out new in-app features, which help travel-

  ers get a real taste of what day-to-day life is like for people who

  actually inhabit the cities they will be visiting. Airbnb guidebooks

  are fueled and filled by locals, not tourists. Unlike TripAdvisor,

  where clients rate the hotels, in Airbnb’s guides, locals help users

  discover what there is to know about their neighborhoods. This

  creates a second-to-none experience and gives Airbnb a broader

  role, going well beyond just connecting hosts and guests.

  Airbnb has thus joined the ranks of iconic brands such as

  Coca-Cola, Nike, Starbucks, and Disney, to mention just a few,

  which are admired both as businesses and social phenomena.

  They have become cults, because each, in its own way and at a

  moment in time, has impacted popular culture. They have known

  how to be in sync with their times. Today, it’s up to other brands

  to have a chance of becoming legends. Apple, which ruled the

  start of the century, comes to mind first, but Facebook, Google,

  and Airbnb are close behind.

  Airbnb’s business model is so disruptive and appreciated by

  its users that you might say the brand was already iconic before

  it started advertising. That’s possible, but I believe that the

  advertising the brand created helped accelerate its path toward

  iconic status. For a company that doesn’t own its main tangible

  asset—rooms for rent—the ad campaigns have added value to

  what does constitute its most valuable intangible asset: its brand.

  Brian Chesky

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  the Single Disruptive Data

  Every step a consumer takes on the path to conversion is scruti-

  nized: completing a lead-generation form, downloading an app,

  clicking on a cookie, using a voucher code, viewing a video, lik-

  ing a Facebook page, visiting an e-commerce platform. Brands

  collate every kind of action imaginable: logins, friends’ requests,

  clicks, page views, search entries, and so on. To manage all this

  information, marketing now relies heavily on data science.

/>   Airbnb is no exception. It uses big data to enhance user

  experience. Ricardo Bion, the company’s data science manager

  notes, “Airbnb is a data-informed company. We think data is

  the voice of our customers.”10 For instance, Airbnb provides

  price tips to hosts so, like hotels, they can charge higher prices

  when demand is strong and lower rates when it is not. Airbnb’s

  user interface also allows hosts to establish price ranges they are

  willing to accept. Another algorithm predicts the likelihood of

  a host accepting a visitor’s booking inquiry. The model learns

  from past decisions to predict future ones. There is no limit to

  how Airbnb can put to use the tons of data it gathers every day,

  from both hosts and guests.

  This is what all Internet giants do. Uber constantly geo-

  locates its clients and is aware of all their daily movements.

  Amazon can predict its customers’ future purchases and prepare

  their packages, even before they’ve placed their orders. Netflix

  knows, ahead of its viewers, which films they are going to enjoy.

  Apart from all the positive benefits of big data, there is also the

  risk of companies becoming submerged by the data flood. The

  Harvard Business Review issued this warning in one of its articles:

  “Don’t let Big Data bury your brand.”11 This is a particular danger

  for companies using a disproportionate amount of data to drive

  purchases. Beyond pushing sales, data can serve as a great lever

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  for brand building when it’s used wisely. The great opportunity

  does not just come from exploiting, aggregating, and visualizing

  tens or even hundreds of bits of data. The real challenge—and

  route to success—is to isolate that single piece of data that will

  influence everything and help identify the insight that will guide

  the building of the brand. Dove’s “Campaign for Real Beauty,”

  which seeks to boost women’s self-esteem, is a perfect illustration.

  Dove’s marketing is based on discovering the insight that only

  4 percent of women said they found themselves beautiful.

  Having such data gives you a game-changing springboard.

  It’s why I call it disruptive data, data that is decisive, pivotal, and

  critical. Procter & Gamble’s Always is another example of this.

  Seventy-five percent of young women, upon reaching the age

  of puberty, say that the social networks where many users brag

 

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