Passion, Lower Prices

What can corporate America do with the idea of listening to the fringe? In the late 1960s and early 1970s, Ron Castel, vice president of marketing at BankOne, spoke to national assemblies of bankers, recommending they attend protests (in jeans), listen to rock musicians, and visit campuses (where they would smell an aroma different from that of conventional tobacco products). It was controversial advice for the normally white shirted, blue suited bankers. Those who did break out of their suited environments and listened to the fringe went on to invent the automatic teller machine (ATM), point of sale processing of credit cards, electronic funds transfer, and a host of other innovations in banking products that eventually penetrated the majority culture.

Passion and Energy Create Brands People Want to Adopt Jagger struts; Madonna vogues; Tyler twirls; Diamond radiates; Simmons stomps; John pounds his keys. Attend a concert by any of these superstars and you’ll surmise that the commonality uniting them is the extraordinary degree of passion and energy they project. Night after night, city after city, these professionals take the stage and take charge of the tens of thousands of fans standing before them. They win their attention with the quality of the music they play; they captivate them, however, with the energy they emote. They never stop moving while on stage, leaving fans exhausted at the end of their two to three hour concerts. Leaving the venue, you’ll undoubtedly hear people talk about how energetic they are. Fans respect sweat.

Brands project energy and passion as well-some just project more than others. Victoria’s Secret emits an intimate form of passion, while Nike projects passion for exercise and life. Starbucks CEO Howard Schultz is passionate about coffee. Wal Mart is passionate about consumers and giving them the best possible value. When cost savings are achieved in most firms, the savings often flow to the bottom line as higher profit margins. When Wal Mart works with vendors to lower their costs-something it does with a passion-or works passionately to lower its own expenses, it returns those savings to consumers in the form of lower prices. In the long run, its passion for prices results in more consumers buying more items more of the time-one reason why Wal Mart’s revenues are now over onequarter trillion dollars. Some firms rely on high margins, but market dominance is often achieved with velocity or rapid asset turnover.