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  • Posted by: Hugh Tallents on Thursday, May 23 2013 03:24 PM | Comments (0)

    Sony Make Believe

    Sony's board is contemplating breaking up the company. The agitator for this change is billionaire Daniel Loeb, whose Third Point hedge fund owns less than 10% of the Japanese tech giant but exerts massive influence. Loeb asserts that the structure of Sony is stifling its share price and has found an ally in progressive Japanese Prime Minister Shinzo Abe. Loeb wants Sony to spin off its Entertainment/Content arm and Music label, file a separate IPO for those assets and refocus the core business on its consumer technology offering.

    In the global context it is tough to argue with the proposal. Sony’s days as the driving force of consumer electronics behind brands like Walkman, Discman and Playstation have been eclipsed not just by Apple but by Samsung and LG. Loeb, with this move, is suggesting that focus has been the issue, not just the aggressiveness of the competition. He asserts that Sony has been pulled in so many different directions that its core business has lost its luster. It used to be that putting your CEO in an ad was the sure sign that a company was in trouble, but as I previously commented about Pfizer’s Starbursting and Blackberry, it appears that the new early warning sign has become pressure to “get back to doing what you do best."

    Sony currently resides at number 40 on Interbrand’s Best Global Brands list but now sits a full 31 spots behind its more recent rival, Samsung in 9th place, while its share price has declined by 85 percent in the past 13 years. Despite the beautiful ads that surrounded its Bravia TV launches, the company has failed to fully replace its iconic brands of the 90s with new versions that can conquer today's even more competitive environment.

    Sony’s brand has always been far more present in the consumer space, they created so many iconic, mainstream habits in tech (portability for instance) and gaming. The conversations at CES, SXSW, CTIA etc have been around gamification and bringing social tools and thinking to more parts of people’s working lives. Sony’s Make. Believe approach suggests that this is a focus for them as well but they need to be far more open and progressive in how they pursue partnerships and OEM relationships or else Microsoft, with Xbox, will move even further ahead because of how embedded Microsoft is in the workplace.

    The Loeb proposal also highlights that it's time for Sony to rethink the practice of creating captive, proprietary technologies (Blu-ray for instance) that try to usher consumers into a single brand relationship. Consumers have balked at committing to a single provider for all their needs; even Apple has seen teething troubles in driving into the TV market. It's increasingly becoming a world where 'best partner,' 'most compatible' and 'most consumer-oriented' wins, and Sony risks becoming the odd man out if it doesn't integrate not only with consumers' lives but the technology that surrounds them.

    Loeb's move could serve as a catalyst and spark to re-instill that fire into Sony that made it once so transformative in the world of modern consumer technology. To really rebound the company must understand consumers better than anyone else, be more open to partnerships than anyone else, be more creative than anyone else and be nimbler and less distracted than anyone else. This move addresses the last of these needs, the rest will come next. This pivot seems small on paper, but it's seismic for brands like Sony that risk marginalization if they don’t embrace change before they are steamrolled by it.

    To make this happen Sony executives must mix "outrospection" with their current introspection. The questions they will ask themselves are both “how is our structure holding us back ” and, “what does the consumer’s life look like and how do I play a meaningful role in it”; not necessarily in that order. Loeb understands this distinction and though his motives will be questioned, the methods he suggests are a step in the right direction.

    Hugh Tallents is a Senior Director of Strategy at Interbrand New York

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  • Posted by: Bill Chidley on Monday, April 8 2013 05:08 PM | Comments (1)
    Best Buy

    As Brand rivalries go, Apple vs. Samsung has the makings of an epic one to watch. It’s the Ford versus Chevy of the age.

    When I first heard of the Samsung Experience Shops that Best Buy plans to roll out in May, the easy judgment was that it’s yet another “me too” move on Samsung’s part. The comparisons are inevitable and differences will likely vary by degree. That this is a great move for Samsung and a possible shot of adrenalin for Best Buy is also undeniable.

    Brands benefit when they can become experiences and retailers benefit when they get an exclusive leg-up with hot brands. the interconnectivity of mobile devices, TVs and content to a brand like Samsung could be further leveraged, and consumer experiences of aspects of what the brand offers today’s consumer broadened. An immersive experience with trained consultants is fast becoming a necessity to demonstrate innovation.

    But is the bigger story the implication for Best Buy and how consumer electronics brands and retailers thrive together in the future?

    Best Buy began as a category killer for electronics and an antidote for the hard sell commissioned sales experience of the day. When the rest of the electronics retail landscape was literally “showrooming” products, Best Buy was allowing shoppers to buy from inventory on the floor at great prices, with a helpful unbiased staff. There were no three-part invoices, no pick up counters and no salespeople who made you feel stupid. It was refreshing, lots of brands at great prices.

    Bill ChidleyInterbrand Design Forum actually designed the second generation stores with Best Buy and it was an objective to communicate a breadth of brands, because selection was king. Best Buy was a hot concept and well capitalized, opening many stores to cover the market, so manufacturers clamored to get slotted on the shelves. In fact, Best Buy was the retailer where Samsung came into preeminence and ultimately stole Sony’s thunder in the consumer electronics category.

    Brands were merchandised shoulder-to-shoulder and competed on price and features. It was a brand party that Best Buy hosted where the bulk of shoppers decided who was cool and who was not.

    In 10 years local Best Buy stores could look like mini Consumer Electronics Shows. With the advent of Apple Shops, Samsung Experience Shops and likely more shops to come from other brands, what is Best Buy’s role now? The current (old) model provided a shopper experience like a grocery store where shoppers navigate from store, to category, to subcategory, to brand. With the proliferation of branded shops, the shopper experience is shaken up.

    The implication is that shoppers must navigate by brand first and foremost. This means that the role of Brand in the shopper decision is amplified and brands will need to aggressively clarify what they offer and their propositions. Brands will need to divert marketing dollars to retail experiences and Best Buy, likely led by consumer insights, will need to arbitrate and define which brands make sense to have experiences and which do not.

    Ultimately Best Buy could evolve into a confederation of branded experiences with fewer and fewer opportunities to define their own value proposition in the mix, like a convention center for branded product experiences. Traditional retailers too have been playing with the in-store individual brand experience, including Macy’s, JC Penny and Target, featuring celebrity brands such as Martha Stewart and large branded displays for brands such as Starbucks, a retail giant in its own right.

    Best Buy may likely be held hostage by the needs of the brands to use their venue to tell their stories as much as close sales. The implications could be huge for Best Buy and retail. Demand creation will change, shopper experiences will change, business models will change, marketing budgets will be reallocated and retailers will redesign their organizations around this new Brand Experience focus. That is how I see what appears to be a benign rivalry massively influencing the bigger consumer electronics landscape.

    Bill Chidley is SVP, Executive Consultant, Interbrand Design Forum.

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  • Posted by: Amy Edel-Vaughn on Thursday, April 4 2013 01:53 PM | Comments (0)
    Martin Cooper with 1973 Cell & Facebook Home

    Pictured: Martin Cooper (from ArrayComm) & Facebook Home

    Yesterday the world celebrated the 40th anniversary of Motorola's demonstration of its portable telephone, the DYNA TAC system. Martin Cooper, then Vice President of Motorola, Inc., is said to have called a rival at AT&T's Bell Labs from the streets of New York City. According to an April 3, 1973 press release from Motorola, the new portable phone was expected to be available for public use as soon as 1976. The cell phone took a bit longer to take off with the public, but four decades later smartphones have become part of our daily lives and today president and CEO, AT&T Mobility, Ralph de la Vega was on hand at Facebook's big unveiling of Facebook Home.

    As David Vales, Senior Systems Engineer for Interbrand, noted in his recent blog post, Smart Phone Sector Heats Up With Big Launches, with BlackBerry's Z10 now available in the US and Samsung's release of the S4, which Vales describes as "very impressive," the smartphone race is intensifying. Today's Facebook unveiling was the introduction of Home, software designed to "turn your Android phone into a great, living, social phone," according to Tom Alison and Adam Mosseri in Facebook's newsroom. The first phone to come with Home pre-installed will be the HTC First, available exclusively from AT&T on April 12. Home will be downloadable on other Android devices, but won't have all of the features of HTC First.

    "Apps aren't at the center, but people are at the center and we bought into that" said de la Vega at the event. The new Home-ready HTC First phone will run on AT&T's 4G LTE network and will cost $99.99. Tech writer Chris Taylor who heads Mashable's editorial team commented, "Great coup for HTC and AT&T -- probably the largest captive audience they've had for a phone announcement." Mark Zuckerberg noted, "By putting people first, and then apps, it's one of many small, but meaningful changes in our relationship with technology over time."

     Ralph de la Vega

    Facebook Home brings its News Feed experience to users' mobile home screen. The new Home experience includes Cover Feed, Notifications, App Launcher, Instagram and Chat Heads. The latter, a mobile messenger that allows users to reply directly to friends instantly or move a floating head image of a friend when not ready to respond, inspired strong reactions in the comments section of Mashable's live streaming of the event. Chris Taylor reacted,"'Chatheads.' -- really?" and "'Chathead.' it really is going to take a while to get used to that word." 

    Chat Heads reactions

    Caitlin Barrett, Associate Director of Verbal Identity for Interbrand and the creative lead for Naming, responds to the name Chat Heads, "It's hard to say whether Chat Heads will change behaviors and expectations the way the 'Like' button did, but the name is just as absurdly simple—and perfectly aligns with the new chat experience." 

    Barrett adds, "Is it awkward? A bit, as it doesn't seem necessary to specify the parts of your friends with which you're chatting. And it doesn't fall naturally into everyday conversation: Will we talk about it like a platform? 'We talked on Chat Heads earlier today…' Or an activity? 'Let's Chat Heads later tonight.' This might very well be the point. If Facebook wants this to simply be the way we chat on Facebook, perhaps it doesn't want to take the hit by trying to brand what could easily become a generic term for this new style of chat. So is it a bad name? Certainly not. We all giggled at the iPad when it was first launched too, but as long as the functionality proves to be differentiated and useful, the name will cease to be part of the story."

    Jez Frampton and Colin Gillis on CNBCWhat does Facebook Home for Android mean for Apple? Several commenters in Mashable's chat and on Twitter expressed new shifting interest from Apple phones to Android. 

    As discussed on CNBC recently, concerns about Apple are growing. Colin Gillis of BGC Financial, CNBC's Jon Fortt and Interbrand's Jez Frampton discussed the slowdown in orders at China's Foxconn and if this is a sign of problems for Apple. Frampton observed, "In terms of the brand, there's no doubt about the fact that Apple still is one of the pacesetters in the market, Samsung are giving them a good run for their money, but this lack of innovation is a concern. To be honest we've been taught as consumers to expect the next new thing every other week almost, and now they're slow on the iPhone 5S. And what's next? Where's Apple TV?"

    Gillis added, "The market is still valuing [Apple] well north of $400 billion, but the market is changing. What we're seeing is lower cost competitors are getting traction. ...For Apple to maintain their margins and to maintain the volume units, they need to keep innovating and that's an issue for the company right now."

    What does it mean for Google? Commentor Lance Ulanoff asked Chris Taylor during the live chat today, "Has anyone asked specifically about Google+? Chris Taylor responded, "Nope, but this really does seem like another nail in Google+'s coffin." JoeyMartin91 commented, "If I'm Google, I'm nervous. Facebook just took my niche market and rewrapped it." Robert Stephens, founder of The Geek Squad and former CTO of Best Buy, tweeted:

    The reveal today raises a number of questions about privacy concerns, battery life and, of course, consumer interest. Understanding consumers will have many questions, Facebook has planned for trials of Home before users commit to downloading it or purchasing the HTC First pre-loaded with Home, a smart move. We'll also be following this initial post with more on Home and what it means for the marketplace in blogs to come.

    Amy Edel-Vaughn is Interbrand's Community Manager.


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  • Posted by: David Vales on Friday, March 22 2013 07:18 PM | Comments (0)

    Samsung S4

    Apple earned the number two spot on Interbrand's Best Global Brands 2012 report and the power of Apple's brand value has made the iPhone the top-selling smartphone in the world. The iPhone 5 is facing some competition this week, though.

    Today the BlackBerry Z10 is officially available in the US from AT&T. The new phone, garnering positive reviews, becomes available from T-Mobile and Verizon next week. 

    Samsung's S4 promises to be a competitor in the smartphone space. Shortly after Samsung's recent launch event for the new phone, Apple responded with marketing on its website claiming, "There's iPhone. And then there's everything else."

    I had the pleasure of attending the S4 launch event at Radio City Music Hall in New York, which started with a Broadway-inspired performance demonstrating how the phone's features relate to everyday life. Some in attendance panned the performance as "cheesy," but I found the actual phone to be very impressive.

    SamsungThe screen size is a bit larger than any phone currently on the market with a great resolution at 1920 x 1080, making it a great HD streaming handheld device. The event's emcee, Will Chase, noted there is less to hold on the new phone, but much more to see, a great way to justify the large size of the screen.

    Adding "group" features such as group play is a smart move. Group play allows multiple phones that are within a reasonable distance to share and stream music simultaneously in different speaker arrangements depending on how many phones are linked up. 

    What I find so cool about this feature is that it does not require any kind of Wifi or hotspot; this can be done anywhere at any time as long as you have your phone charged. I can see this feature being a hit with the youth market. 

    Another great feature, but also raises some questions, is the Samsung smart pause. This feature pauses the phone when you aren’t looking at it and then unpauses when you are looking again, all automated. Is it just tracking eye movement or does it look for a full head turning motion?

    One of the coolest features presented at the event was "Air Gesture." The name truly expresses what it does. Move your finger in front of the screen and it recognizes this as a swipe on the screen. 

    This feature utilizes an infra-red heat sensor. This device can measure temperature changes and act off of heat movements. I believe this is the first phone for consumers to have this type of sensor in it and it will be interesting to see what the hacker community comes up with for this handy sensor. 

    Samsung S4 Launch

    The built-in rear camera has 13 megapixels, which is also the highest megapixels on any phone released to date. The associated features with the camera are quite useful and unique.  When recording video you can use both cameras on the front and back, enabling you to add the camera man to the video. This dual camera feature is also available for video chat. 

    On the business side, the phone supports Microsoft Active Sync and in addition to supporting the widely used business mail systems, Samsung has added a very useful application called Samsung KNOX. This KNOX software can separate your applications securely so they can only be accessed via password. 

    The Samsung software truly makes this device capable of supporting business and personal use at the same time with one smartphone. The hardware is superior to any other phone on the market right now and the camera features invite all kinds of creativeness to the table. The group features add a new dimension to social networking, allowing connectivity without requiring an internet connection. 

    The "7 sensor innovation" is only the beginning for Samsung. These sensors can be applied to many facets for many industries. 

    The smartphone sector is definitely heating up.

    David Vales is a Senior Systems Engineer for Interbrand.

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  • Posted by: Karla Aspiras on Monday, October 15 2012 04:44 PM | Comments (1)

     Apple

    Apple recently commemorated the first anniversary of the passing of its former CEO. On their website was a video of Steve Jobs’ memorable speeches, beginning with a classic photo of him with an old Macintosh computer. Now a year later without their visionary leader, many are wondering how the company has done and will do.

    Apple is one of the top risers in Interbrand's Best Global Brands 2012. The brand saw a 129% rise in brand value and now ranked #2 from #8 in 2011.

    Steve Jobs left us with an impressive array of iDevices, which are arguably his biggest contribution to this generation and the next. But products cannot exist without the brands that represent them. So let us look at Apple’s primary offerings and their trademarks. Everyone is aware that the first leg of Apple’s patent battle against Samsung is behind them, but how many trademark disputes has Apple had to endure?

    First, Apple unveiled the iPod® in October 2001. Steve Jobs called it a hard drive that could put a thousand songs in your pocket. Mr. Joseph Grasso, sole proprietor of a company called Web Pods, Inc., for “public internet kiosk containing computer hardware,” initially owned the iPod mark. Mr. Grasso assigned the mark, for an undisclosed amount, to Apple in March 2005.

    Six years later, Apple launched the iPhone®. Jobs said that with the iPhone, Apple is going to reinvent the phone. Apple sought to obtain a trademark for their iPhone, but the US trademark office refused their application because of possible confusion because of an existing registration for the same name.

    The existing registration belonged to Cisco Technology, Inc., for “computer hardware and software for providing integrated telephone communication with computerized global information networks.” Cisco’s iPhone is a line of VoIP telephone handsets. Cisco’s use of their iPhone mark before Apple launched its iPhone was sporadic. They did file a Section 8 affidavit meaning they still want to keep the registration, but did not file a Section 15 affidavit, meaning they cannot show continuous use for five years.

    Some called Apple a “trademark bully” as ownership of the mark remained unsure. Sometime in 2008, Cisco and Apple “contracted” out the confusion issue raised by the trademark office. Through a consent agreement signed in June 2009, Apple overcame the potential confusion with Cisco’s iPhone.

    They agreed that their “respective uses of the mark IPHONE are not likely to cause confusion, mistake or deception.” This consent agreement was approved by the trademark office, which led to successful registration of “iPhone” by Apple. To date, the amount Apple paid Cisco remains undisclosed, and other terms of the agreement remain confidential. Both companies’ websites state that either can freely use the iPhone mark on their products throughout the world.

    Before he died, Steve Jobs announced the iPad®. There was a pending application for registration of the iPad mark by Fujitsu Transaction Solutions, Inc. for a “handheld computing device for wireless networking in a retail environment.” Fujitsu failed to respond to the trademark office’s office action within six months, and it was considered abandoned, thus making it free for Apple’s registration.

    Let’s not forget the infamous trademark battle Apple went through two decades before the first iPhone. Apple Computer (Apple Corporation’s former name) battled with Apple Corps (parent company of Apple Records, the Beatles’ recording company) for the Apple mark until they settled with the condition that Apple Computer cannot enter the music business while Apple Corps cannot enter the computer business. Apple Corps sued Apple Computer again in 2003 when iTunes was launched for breach of that settlement agreement, but the Court ruled in Apple Computer’s favor.

    Icloud Communications sued Apple when Apple launched the iCloud service in June 2011, but the former voluntarily dropped the lawsuit and renamed its company Clear Digital Communications. The dispute between Apple and Amazon over use of “Appstore” is still pending, as is the application for registration of the Appstore mark by Apple, which in turn was opposed by Microsoft that claimed the term is “generic.”

    Indeed, Apple has a very colorful trademark prosecution and litigation history and that might strike some as a habit of “name now, worry about trademarks later.” But perhaps the underlying thrust by Apple here is that when creating such iconic, innovative products, you also want the perfect name and brand for it: one that embodies the passion in its creation; the genius in its design and development; and the enjoyment and awe that every user experiences with the iDevices.

    Interbrand's Best Global Brands 2012 report said it best: “Jobs understood that a brand is more than a logo…He also recognized that a brand is what connects a business with the hearts and minds of consumers. Simply put, Steve Jobs understood that a brand is uniquely capable of humanizing a business — and that is precisely why so many of us are Apple ambassadors today.”

    Karla Aspiras is a Trademark Analyst at Interbrand NY.

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