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What Great Brands Do

11 min

The Seven Brand-Building Principles That Separate the Best from the Rest

Introduction

Narrator: In 1996, Kodak was one of the most valuable brands on the planet. With its memorable slogan, "Kodak, for the times of your life," it was more than a company; it was America's storyteller. Yet, by 2012, the giant had fallen, filing for bankruptcy and losing $30 billion in market value. The common explanation is simple: digital disruption. Kodak, the king of film, was killed by the digital camera. But this explanation is incomplete. After all, a Kodak engineer invented the first digital camera back in 1975, and the company invested billions in digital imaging research. The real failure was not one of technology, but of brand. Kodak failed to understand that its brand wasn't about film; it was about preserving life's precious moments. It failed to translate that core promise into the digital age.

This catastrophic failure raises a critical question: What separates the brands that thrive from those that fade away? In her book, What Great Brands Do, author and brand strategist Denise Lee Yohn argues that the answer lies not in bigger advertising budgets or trendier marketing campaigns, but in a disciplined, internal-first approach. She reveals that the world's most iconic brands don't just do branding; they use their brand as the central organizing principle for their entire business.

Great Brands Start Inside

Key Insight 1

Narrator: Many companies treat their brand as a coat of paint—an external layer of marketing and advertising applied to the finished product. Yohn argues this is backward. Great brands are built from the inside out, starting with a strong, intentional corporate culture. The brand can't just be a promise made to customers; it must be a promise delivered, and that delivery depends entirely on the people inside the organization.

A powerful example of this principle in action is IBM's cultural transformation under CEO Sam Palmisano. In 2002, Palmisano inherited a company that felt stagnant and irrelevant. He recognized that to strengthen the IBM brand, he first had to strengthen its culture. Instead of imposing new values from the top down, he launched a "ValuesJam," a 72-hour online discussion that invited all 300,000 IBM employees to debate and redefine the company's core beliefs. Over 50,000 employees participated, generating a million messages. This massive, collaborative effort resulted in three clear, modern values: dedication to every client's success, innovation that matters, and trust and personal responsibility in all relationships. By starting inside and co-creating the culture with employees, Palmisano ensured that the brand wasn't just a slogan; it was a lived reality that guided every decision and action within the company.

They Sell Emotions, Not Products

Key Insight 2

Narrator: Great brands understand a fundamental truth about human behavior: people make decisions based on how things make them feel. While product features and quality are important, they are rarely the primary driver of loyalty. The most successful brands avoid simply selling products; they focus on forging deep emotional connections with their customers.

Perhaps no brand illustrates this better than Nike. In the late 1980s, Nike was facing stiff competition. An early ad celebrating the company's role in the jogging craze fell flat because it was about Nike, not the customer. The marketing team went back to the drawing board and returned with three simple words: "Just Do It." The campaign that followed was revolutionary. It wasn't about sneakers or technical specs. It was about the feeling of achievement, the struggle of perseverance, and the universal drive for greatness. The ads showed athletes of all kinds—sweating, straining, and pushing their limits. Nike created a brand ethos that resonated so deeply it became a cultural phenomenon, inspiring people to change their lives. By selling an emotion—empowerment—instead of a product, Nike built a bond with its customers that transcended footwear.

They Ignore Trends to Lead Cultural Movements

Key Insight 3

Narrator: In a world of fast-moving trends, the temptation to chase what's popular is immense. However, Yohn explains that trend-following is a dangerous game. It leads to "me-too" products and a constant, exhausting cycle of trying to keep up. Great brands do the opposite: they ignore fleeting trends and instead anticipate, interpret, and advance larger cultural movements.

Consider the rise of Chipotle. When founder Steve Ells opened his first restaurant, the fast-food industry was dominated by trends like dollar menus, drive-thrus, and highly processed ingredients. Ells ignored all of it. He challenged the industry's norms by focusing on high-quality ingredients, a simple menu, and a commitment to what he called "Food with Integrity." He wasn't chasing the fast-food trend; he was tapping into a burgeoning cultural movement toward sustainable, natural food and affordable luxuries. While McDonald's, an early investor, pushed Chipotle to add breakfast and drive-thrus, Ells refused, staying committed to his vision. By ignoring the industry's trends and aligning with a deeper cultural shift, Chipotle didn't just build a successful restaurant chain; it created an entirely new category: fast-casual.

They Don't Chase Customers; They Attract Them

Key Insight 4

Narrator: The conventional wisdom in marketing is to cast a wide net and try to appeal to as many people as possible. Yohn argues that great brands reject this approach. Instead of chasing every potential customer, they cultivate a strong, unapologetic identity that acts like a magnet, attracting the right customers—those who share the brand's values.

The athletic apparel retailer Lululemon exemplifies this strategy. The company is famous for its premium prices, its refusal to offer discounts on core products, and a strict 14-day return policy. These practices seem to defy modern retail logic. Yet, Lululemon has become one of the world's fastest-growing retailers. The reason is that the company is not for everyone, and it doesn't try to be. Its focus on high-quality, innovative fabrics and its deep connection to the yoga community attract a specific type of customer who values performance and is willing to pay for it. As one analyst noted, Lululemon's model isn't "come here and be cool if you buy our product." It's "you're pretty cool, we'll be your partner in being your best possible self." By having the confidence to be exclusive, Lululemon attracts a fiercely loyal following.

They Sweat the Small Stuff

Key Insight 5

Narrator: A brand is the sum of all its touchpoints, and great brands are obsessed with getting every detail right. They understand that every single interaction—from the product's packaging to the hold music on a customer service line—is an opportunity to either enhance or undermine the brand's value.

Procter & Gamble's focus on what it calls the "First Moment of Truth" (FMOT) demonstrates this principle. The FMOT is the three to seven seconds when a shopper notices a product on a retail shelf. P&G realized this tiny window of time was a critical battleground for the brand. The company created a dedicated FMOT department to obsess over packaging design. For its Pantene hair care line, research showed that customers were confused by categories like "normal" or "dry." P&G redesigned the packaging to focus on the desired emotional outcome, such as "volume" or "curly," using high-gloss, metallic lettering that stood out on the shelf. This meticulous attention to the small detail of packaging design made the product easier to find, understand, and use, turning a mundane shopping moment into a seamless brand experience.

They Create Shared Value, Not Just Give Back

Key Insight 6

Narrator: Corporate Social Responsibility (CSR) is often treated as an afterthought—a donation made or a volunteer day organized to generate good PR. Great brands, however, don't simply "give back." They integrate social and cultural contributions into the very core of their business model, a concept known as Creating Shared Value (CSV).

The outdoor retailer Patagonia is a master of this approach. On Black Friday, the biggest shopping day of the year, the company ran a full-page ad in the New York Times with a shocking headline: "DON'T BUY THIS JACKET." The ad urged consumers to consider the environmental cost of their purchases and to buy less. This wasn't a marketing stunt; it was a direct expression of the company's core mission to protect the planet. Patagonia backs this up by offering to repair its products, helping customers resell used gear, and using sustainable materials. By building its environmental values directly into its business operations, Patagonia creates shared value for all its stakeholders and forges an unbreakable bond with customers who share its commitment.

Conclusion

Narrator: Ultimately, the seven principles detailed in What Great Brands Do are knitted together by a single, powerful idea that Yohn calls the eighth principle: Great Brands Do Brand-as-Business. This is the book's most critical takeaway. A brand is not a logo, a marketing campaign, or a department. It is the company's central organizing idea—the operational blueprint for everything from hiring and product development to customer service and strategy. The world's most enduring companies don't just express their brand; they execute it in every action they take.

The challenge this book leaves us with is to look at our own organizations and ask a hard question: Is our brand simply what we say we are, or is it a true reflection of what we do? For the companies that get this right, the brand becomes more than a source of competitive advantage; it becomes the engine of sustainable growth and lasting impact.

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