INDEX
Please note that index links point to page beginnings from the print edition. Locations are approximate in e-readers, and you may need to page down one or more times after clicking a link to get to the indexed material.
Adjacent businesses, 19
Advertising, 104
Advertising and point-of-sale promotion, 59–60
Advocacy score, 228. See also BCG Brand Advocacy Index
Air of excitement, 40
Airbnb, 143–149
business-model innovation, 144
dreams, 148–149
graphic designers/photographers, 149
hosts, 147
millennial generation, 145
operating model, 147–148
ransackgate, 146
two-way conversation between hosts/guests, 146
typical host/guest (Dom and Peter), 146–147
Al-Waleed bin Talal, 127
Allen, Paul, 207
Allen, Woody, 138
Amazon rain forest, 155–157, 159, 161
Amazon.com, 136–143
apostle customer, 141
apostle interview, 141–142
customer-obsessed culture, 140
Darwinian petri dish, 138
decentralized distribution of invention, 139
escalations, 140
Fire smartphone, 139–140
frugality, 143
fulfillment centers, 139
Kindle, 137
lessons learned, 142–143
operations team, 139
Prime/Prime Instant Video, 141
Quidsi, 138
razor-thin margins, 143
setbacks, 139–140
underlying characteristics, 136
video-streaming service, 137–138
Amazonian woman, 158–159
Ambrosetti, Silvano, 184
American football. See National Football League (NFL)
Amy’s Kitchen, 51
Analytics, 56
Ancestral Brazilian traditions, 160
Apostle model, 43
Apple Experience, The (Gallo), 122
Asian tsunami crisis, 119–120
Aurelius, Marcus, 89
Avalanche, 7
Avon, 162
Barreiros Passos, Pedro Luiz, 157
Bath & Body Works, 4
BCG Brand Advocacy Index, 168, 182, 226–299
BCG Consumer Sentiment Index, 135
BCG demand spaces survey, 223
“Bed-in for peace” protest (Lennon/Ono), 65
Benefit attributes, 222
Benefit layers, 13
Benetton, 85
Bezos, Jeff. See Amazon.com
Big brand revolution, 6
Bigger and better, 18
Blair Motion Pictures, 211
Boone, Garrett, 37
Bowden, Bobby, 207
Brand Advocacy Index, 168, 182, 226–229
Brand core, 12
Brand funnel, 198
Brand “personality,” 71
Brazilian cosmetic company. See Natura Cosmetics
Bread and Circus, 25
Brunello Cucinelli, 83–93
advertising, 87
apostle interview, 90–92
artisan partners, 90
cashmere thread, 86
customer advocacy, 87
employees (salespeople), 88–90, 92
ethics committee, 89
headquarters (castle), 83
humanistic capitalism, 88–90
in-store presentations, 93
IPO (2012), 88
lessons learned, 92–93
Levitt’s four principles, 84
lifestyle Italian company, 93
pricing, 85
quality surveillance, 87
visual merchandising, 86
work hours, 90
Business-model innovation, 144
Business-speak, 49
Cadabra, 136
Campaini, Turiddo, 184
Cannibalization, 57
Car dealers, 201
Caramel Popcorn, 181
CARE (Create A Rewarding Experience), 74
Carey, Al, 53
Carlucci, Alessandro, 161, 163
Carter, Bob, 194, 198, 199, 201, 202
Carvajal, Gaspar, 158
Category expert, 42
Change mindset, 169
Change muscle, 4
Chesky, Brian, 143. See also Airbnb
Chief digital officer, 150
Community meeting rooms, 28
Community nonprofit partnerships, 28
Company culture and company brand/two sides of same coin, 118
Complex adaptive system, 118
Compliment, 43
Conscious capitalism, 23
Conscious Capitalism: Liberating the Heroic Spirit of Business (Mackey), 26
Consistency, 74
Consumer. See Customer
Consumer segments
families under siege, 230, 234
overview, 229–230
rich, happy, and balanced, 229–230, 230–232
rocket in the pocket, 230, 233
so cheap, shoes squeak, 230, 232
weight of the world, 230, 234–235
Consumers hang on your every word, 186
Container Store. See The Container Store
Continuous evolution/continuous investment, 4
Coop Italia (cooperative), 183–185
Costa, Iguatemi, 159
Courage, 17
Crer para Ver program, 162–163
Crisis management, 188–189. See also National Football League (NFL); Toyota
Critics, 43
Cuban, Mark, 215
Cucinelli, Brunello, 84, 88, 89. See also Brunello Cucinelli
Curiosity, 5–6
Curious mind, 6
Custom manufacturing, 39
Customer
consistent, understandable, predictable, 53–54
loyalty, 4
wheel of consumer emotions, 3
Customer advocacy, 87
Customer-as-boss, 174, 178, 185, 251
Customer choice, 77
Customer-obsessed culture, 140
Daring, 154
Darwinian petri dish, 138
D’Avenza, 92
Decentralized distribution of invention, 139
Decentralized print programs, 60
Deliplus Chica Fashion for Girls, 173
Deliplus olive oil body cream, 173
Delivering Happiness (Hsieh), 106
Demand-centric growth approach
BCG demand spaces survey, 223
benefit attributes, 222
encore (do it again), 226–227
integrated commercial plan, 225–226
MindDiscovery sessions, 222
overview, 221
pairwise comparison, 223
strategic review, 224–225
Demand-centric growth transformation, 53
Demand chain, 19
Demand space, 48, 49, 54–56, 67, 79, 249. See also Frito-Lay; Hilton Worldwide
Demand-space map, 54, 64, 80, 223
Demand spaces survey, 223
Demographics, 70
Despair, 220
Determination, 154
Dialogue, 18
Different outcome/different inputs, 18
Digital age, 150–151. See also Airbnb; Amazon.com
Discounters, 5
Disney, Walt, 93, 94. See also Walt Disney Company
Disney Institute, 95
Disruption, 8
Do Us a Flavor contest, 59
Doritos Loaded, 58
Doritos taco (Taco Bell), 62
Double markups, 13
Downmarket, 80
Dramatic market-share shifts, 154
Dropbox, 143
E-commerce, 6
eBay, 136
Economic anomaly, 19
Eight-word story, 20
Eisner, Michael, 94
Elizabeth II, 65
Embassy Suites, 66
Emotional intelligence, 31
Mercadona, 175–176
passionate, 105. See also Four Seasons; Zappos
The Container Store, 38–39, 40
Whole Foods Market, 31–32
Endnotes, 253–268
Engine 2 Diet philosophy, 29
Enrico, Roger, 50
Entrepreneurs, 250
Ethics committee, 89
Everything store, 136, 137. See also Amazon.com
Expand relentlessly, 44, 102, 131
“Experience your brand” category, 100–101
Experiences worth sharing, 76
Experiential innovation, 94
Express, 4
Facebook, 59
Fair pricing, 71–72
Families under siege, 230, 234
Fay, Bill, 199
Featured companies. See also individual company names
Airbnb, 143–149
Amazon.com, 136–143
Brunello Cucinelli, 83–93
Four Seasons, 119–129
Frito-Lay, 49–64
Hilton Worldwide, 64–78
Mercadona, 168–183
National Football League, 204–218
Natura Cosmetics, 155–168
The Container Store, 36–43
Toyota, 189–204
Victoria’s Secret. See Victoria’s Secret
Walt Disney Company, 93–101
Whole Foods Market, 24–36
Zappos, 105–119
Fire smartphone, 139–140
First impressions, 82
Fixed-cost promotions, 19
Floor mat problem, 201
Ford, Martha, 207
Four Seasons, 119–128
apostle interview, 126–127
Golden Rule, 123
hotel managers, 125
lessons learned, 127–128
loyalty program (recognition program), 127–128
Maldives tsunami crisis, 119–120
on-site mentor, 124
on-the-job training, 124
proximity management, 125
Reagan, Ronald and Nancy, 125–126
recruitment, 123–124
sanctity of the brand, 128
Fragmentation of taste, 51
Fresh Fields, 25
Friction, 225
Friedman, Thomas, 150
Frito-Lay, 49–64
10 different demand spaces, 57
advertising and point-of-sale promotion, 59–60
decentralized print programs, 60
demand-centric approach, 55–56
Do Us a Flavor contest, 59
Doritos Loaded, 58
Doritos taco (Taco Bell), 62
“Fun Times Together” demand space, 57, 58, 63
“I’d Eat That” button (Facebook), 59
Lay’s potato chips, 58–59
macro snack market, 56–57
Mukherjee interview, 61–63
new map, new battle plan, 57–59
Nooyi, Indra, 63
overlapping brands/cannibalization, 57
store-distribution system, 50
survey of consumer in different regions, 56
Tostitos Cantina, 58
“Young & Hungry” demand space, 62
Frugality, 143
“Fun Times Together” demand space, 57, 58, 63
Functional and technical cues (little details), 73, 78
Gates, Bill, 127
Gebbia, Joe, 143. See also Airbnb
Genchi genbutsu, 192
General Motors (GM), 202
Golden Rule, 113, 123, 130, 249
Goodell, Roger, 217
Greco, Tom, 50, 53. See also Frito-Lay
Hampton Inn, 66
Hashiba, Luciana, 163
Head injuries (concussions), 205, 216, 217
Health-conscious grocery store. See Whole Foods Market
Heat map, 223
Hilton, Conrad, 64
Hilton Worldwide, 64–78
apostles, 74
brand “personality,” 71
CARE (Create A Rewarding Experience), 74
connectivity station, 71
demand spaces, 67
experiences worth sharing, 76
fair pricing, 71–72
forecasted future growth, 77
founder’s motto, 71
IPO (2013), 77
lessons learned, 78
loyalty program (HHonors), 74–76, 78
market research (interviews, etc.), 67, 70, 75
overlapping brands/cannibalization, 66
“personal connection” space, 68, 72
positioning, 68
“recharge and refresh” space, 68, 70–71
sacred cows, 71
signature cookie, 72–74
technical cues (little details), 73, 78
unique delighters, 71
values, 71
Hollis, Jack, 202
Holmes, Santonio, 207–208
Holthouser, Jim, 67, 70, 74, 76
HomeAway, 144
Hsieh, Tony, 105–106, 111–112. See also Zappos
Humanistic capitalism, 88–90
Humanity, 226
Hydrogen vehicle, 203
“I’d Eat That” button (Facebook), 59
Implement, implement, implement, 79
In-store “laboratories,” 181
In-store presentations, 93, 102
Innovation centers, 180–181
Integrated commercial plan, 225–226
International expansion, 102
Interproveedores, 172, 176–177
Inventiveness, 18
iPhone, 227–228
Jackson, Michael, 65
Jones, Jerry, 207
Just-in-time, 139
Kan, Justin, 143
Key points. See Takeaways
Kim, Jenny, 14–15
KIND, 51
Kindle, 137
Know when to get out, 19
Know your consumer, 251
Knowledge advantage, 251
Lavernia & Cienfuegos, 173
Lay, Herman, 50
Lay’s potato chips, 58–59
Leader/leadership
characteristics, 17
continuous evolution/continuous investment, 4
first giant leap, 186
meeting of leaders (questions to answer), 219
references in history, 17
strength of character, 138
successful entrepreneurs, 250
talking and engaging, 39
Leal, Guilherme, 157
Lennon, John, 65
Leslie’s Limited, 5
Lessons learned
Amazon.com, 142–143
Brunello Cucinelli, 92–93
Frito-Lay, 64
Hilton Worldwide, 78
Natura Cosmetics, 167–168
NFL, 218
The Container Store, 42–43
Toyota, 203–204
Victoria’s Secret, 17–18
Walt Disney Company, 100–101
Whole Food Market, 35–36
Zappos, 117–119
Levitt, Ted, 84
Li, Jet, 120
Life cycle, 47
Lifestyle Italian company, 93
Lingerie. See Victoria’s Secret
List of featured companies. See Featured companies
Locational disadvantage, 239–240
Low-prices strategy, 170
Loyalty program (HHonors), 74–76, 78
Luxury fashions. See Brunello Cucinelli
Luxury hotel chain. See Four Seasons
MacArthur, Douglas, 16
Mackey, John, 23, 28–29, 31. See also Whole Foods Market
Maldives tsunami crisis, 119–120
Marrero, Ramon “Monchito,” 65
Marx, Karl, 88
Materiality matrix, 163
Mature business, 79
McCain’s, 58
Mercadona, 168–183
advocacy, 174
apostle interview, 182–183
change mindset, 169
customer-as-boss, 174, 178, 185
digital transformation plan (2012-2018), 178
distribution, 177–178
employees, 175–176
family-owned business, 171
“fresh” initiative, 181–182
in-store demonstrations (5,000 women), 183
in-store “laboratories,” 181
innovation centers, 180–181
interproveedores, 172, 176–177
low-prices strategy, 170
monitors, 179–180
“pinching pennies,” 177
product line, 174–175
radical innovation, 179
reciprocity, 173–174
Roig interview, 178–179
suppliers, 171–172
supply chain automation, 177–178
“surprise” the consumer, 172, 180
training, 176
underlying activities, 168–169
Meritocracy, 31
Millennial generation
25-year-old male living just outside Manhattan (Mark), 237–242
25-year-old male raised in Raleigh, North Carolina (Erik), 244–247
27-year-old female with $90,000 income (Andrea), 242–244
Airbnb, 145
in-depth interviews, 236–247
overview, 235–236
MindDiscovery, 222
Modell, Art, 209
Moehringer, J. R., 206
Moms Clinics, 217
Monitors, 179–180
Monroe doctrine, 151
Monster, 51
Mrs. Gooch’s, 25
Muck City, 207–208
Nassetta, Chris, 64, 66, 70. See also Hilton Worldwide
National Football League (NFL), 204–218
beleaguered league, 215–216
common mission, 209–210
crossroads, 216–217
customer emotional spaces, 208–209
female fans, 214
head injuries (concussions), 205, 216, 217
league think, 209
lessons learned, 218
Madison Avenue, 207
Moms Clinics, 217
moral issue, 205
Muck City, 207–208
NFL Films, 211–212
NFL FLAG Football, 214
NFL Properties, 210
NFL RedZone, 213
Pahokee, Florida, 207–208
Punt, Pass & Kick program, 214
revenues, 210
stakeholder equilibrium, 215, 218
superfans, 212–214
National stocking policies, 45
Natura Cosmetics, 155–168
Amazon rain forest, 155–157, 159, 161
ancestral Brazilian traditions, 160
apostle interview, 163–164
Crer para Ver program, 162–163
education initiative, 162
employee wages, 167
founding triumvirate, 157
giant leaps, 157
guiding principles, 165–166, 168
internal checklist, 164–165
lessons learned, 167–168
materiality matrix, 163
product lines, 159
sales consultants, 161–162, 185
sustainable development, 163
triple bottom line, 158
“well-being, being well” philosophy, 158
Negative advocacy, 229
Never rest on your laurels, 43
NFL. See National Football League (NFL)
NFL Films, 211–212
NFL Properties, 210
NFL RedZone, 213
Niche attack, 31
9 Ps of retail branding, 12
Notes (endnotes), 253–268
Obama, Barack, 205
Oliva, 172–173
Omni channel, 16
On-site mentor, 124
On-the-job training
Four Seasons, 124
The Container Store, 40
Zappos, 107
Online private lodgings business. See Airbnb
Online shoe and clothing retailer. See Zappos
Ono, Yoko, 65
Organizational tension, 118
Overlapping brands/cannibalization, 57, 66, 78
Own one idea, 20
Pahokee, Florida, 207–208
Pairwise comparison, 223
Palmer, Janay, 216
Patience, 154
Patterning, 12
Pedroni, Marco, 185
Pegula, Terry, 207
Pei, I. M., 123
People, 12
Pepsi, 210
PepsiCo, 50. See also Frito-Lay
Persistence, 154
“Personal connection” space, 68, 72
Personal emotional connection (PEC), 106–107
Philanthropy, 11
Piña Colada, 65
“Pinching pennies,” 177
Pitanga bush, 159
Place, 12
Plank, Kevin, 222
Portfolio allocation, 79
Positive advocacy, 228–229
Presley, Elvis, 65
Price, 12
Pricing premiums for superior products, 44
Prime/Prime Instant Video, 141
Prioritize your opportunities, 79
Private labels, 28
Product, 12
Profit performance, 12
Projection, 12
Promotion, 12
Promotional investments, 14
Promus Hotel Corporation, 65
Proximity management, 125
Punt, Pass & Kick program, 214
Quality surveillance, 87
Quidsi, 138
Radical innovation, 179
Razek, Ed, 14
Razor-thin margins, 143
Reagan, Ronald and Nancy, 125–126
“Recharge and refresh” space, 68, 70–71
Reciprocity, 173–174
Recruitment, 110–111, 123–124, 131
REI, 183
Reinvention, 5–8
Repeat customers, 115, 122, 129
Retail scale, 18
Rich, happy, and balanced, 229–230, 230–232
RNB Cosmetics, 172–173
Road to the Super Bowl (film), 211
Robb, Walter, 34
Rocket in the pocket, 230, 233
Roig, Juan, 169, 170, 178–179. See also Mercadona
Ruiz, Vicente, 172
Rules of ubiquity, 240
SaferWay, 25
Saint Benedict, 90
Salary cap, 31
Seabra, Antonio Luiz, 157, 158
Seau, Junior, 217
“Seeing around the corner,” 4, 250
Seibel, Michael, 143
Sequoia Capital, 144
Serial invention, 18
Service-oriented brands, 229
Sexy, glamorous, and comfortable, 12, 15, 16
Shakespeare, William, 251
Share economy, 146
Sharp, Isadore, 119, 121. See also Four Seasons
Signature cookie, 72–74
Siro Group, 172
Small-company universe, 52
Snack foods. See Frito-Lay
Snapchat, 143
So cheap, shoes squeak, 230, 232
Social media, 28
Social responsibility, 33
Solution-based form of retail, 40
SpaceX, 143
Spanish grocery retailer. See Mercadona
Specialty knowledge, 45
Stakeholder equilibrium, 215, 218
Star Wars venture, 96
Status quo, 101
Storage and organization solutions. See The Container Store
Store design, 29
Strategic review, 224–225
Suggestions from the selling floor, 104
Suppliers, 39
Supply chain automation, 177–178
“Surprise” the consumer, 172, 180
Sustainable development, 163
apostle consumers, 102
bold investments, 186
brand instability, 219
consumers hang on your every word, 186
core consumer, 44
demand spaces, 79
despair, 220
digital age, 150–151
expand relentlessly, 44
Golden Rule, 130
implement, implement, implement, 79
inventiveness, 18
know when to get out, 19
passionate employees, 129–130
pricing premiums for superior products, 44
prioritize your opportunities, 79
scale, 18
visual merchandising, 102
visually stunning, 102
Target consumer, 186
Technical cues (little details), 73, 78
Telematics, 194
Tesla, 203
The Container Store, 36–43
air of excitement, 40
big-ticket initial sale, 42
closet price points, 41
“Contained Home” consultation, 41
custom manufacturing, 39
on-the-job training, 40
origins, 37
seven foundation principles, 38–40
solution-based form of retail, 40
suppliers, 39
target customer, 42
turnkey solutions, 41
typical customer, 41
underlying principles, 43
value proposition, 42
Their culture drives their brand, 129
Theme parks. See Walt Disney Company
They Call It Pro Football (film), 211
“Think like an owner,” 45
365 Everyday Value, 28
Tindell, Kip, 23
Tindell, Sharon, 37
Tostitos Cantina, 58
Totaler, 169
Toyoda, Akio, 196–198
Toyoda Precepts, 191
Toyopet, 189
Toyota, 189–204
Akio Toyoda’s reaction to recall crisis, 196–198
brand funnel, 198
car dealers, 201
crises (2008-2011), 192
crisis management, 194–200
floor mat problem, 201
genchi genbutsu, 192
General Motors, compared, 202
historical overview, 189–191
hydrogen vehicle, 203
lessons learned, 203–204
one-page strategy answering four key questions, 200
QDR advantage (quality, dependability, reliability), 202
Toyoda Precepts, 191
Toyota Way (basic principles), 192
unintended acceleration problem (recall crisis), 192–194
U.S. headquarters (Plano, Texas), 203
value proposition, 220
Toyota Way, 192
Transparency, 114–115
Transparent, 137
Triple bottom line, 158
Trouble, telltale signs of, 222
Truman, Harry S., 203
Trust
Amazon.com, 140
Turnkey solutions, 41
Twitch, 143
Uber, 143
Ullman, Samuel, 16
Ulukaya, Hamdi, 52
Umbrella store, 19
Under Armour, 222
Unintended acceleration problem (recall crisis), 192–194
Upmarket, 80
Vacations Rentals By Owner, 144
Valentine, Don, 144
Value proposition, 110
Verizon, 210
Vick, Michael, 205
Victoria’s Secret. See also Wexner, Les
apostle interview, 14–15
benefit layers, 13
bras, 13
category growth, 13
customer wants, 9
double markups, 13
emotional position, 13
fashion show, 14
founder, 12
gross margins, 13
lessons learned, 17–18
manufacturing cycle, 13
Omni channel, 16
positioning, 12
pricing, 13
sexy, glamorous, and comfortable, 12, 15, 16
store openings in international markets, 16
Victoria’s Secret Fashion Show, 14
Virtual relationships. See Airbnb; Amazon.com
Volkswagen, 203
Walt Disney Company, 93–101
apostle interview, 97–100
cast members, 94
Disney Institute, 95
“experience your brand” category, 100
experiential innovation, 94
financial factoids, 100
how consumers see Disney brand, 96–97
imagineers, 95–96
lessons learned, 100–101
Star Wars venture, 96
storytelling (escape from reality), 94
theme parks, 94–95
weddings, 98–99
Weight of the world, 230, 234–235
“Well-being, being well” philosophy, 158
Wellspring Grocery, 25
Wexner, Les, 1–20. See also Victoria’s Secret
advice giving, 17
“best at,” 14
curiosity, 5–6
disruption, 8
e-commerce, 6
family, 11
foreign stores, 5
in-depth consumer profiles, 3
know when to get out, 19
leave a legacy, 17
Leslie’s Limited, 5
“long gun,” 8
market research, 8
philanthropy, 11
promotional investments, 14
refreshing his brands, 17
reinvention, 5–8
retail invention factory, 12
scale, 14
“seeing around the corner,” 4
serial retail entrepreneur, 2, 4, 10
tough, 17
vibrant/active hand in running business, 17
wheel of consumer emotions, 3
youthfulness of spirit, 17
Wheel of consumer emotions, 3
Whole Foods Market, 24–36
12-region structure, 25
acquisitions, 25
“beauty” of store design, 29
community meeting rooms, 28
competitors, 35
cooking schools, 28
core values, 25–26
employees, 31–32
flagship store, 29
“fresh” strategy, 30
healthy discount incentive program, 32
“holy foods” philosophy, 25, 27
lower-income communities, 34–35
meritocracy, 31
niche attack, 31
operating margin, 36
perishables, 30
relationships with customers, 25
salary cap, 31
sales per square foot, 36
same-store sales growth, 36
social responsibility, 33
Twitter followers, 28
types of customers, 36
typical customer, 34
underlying principles, 43
Wild Oats Markets, 25
Winfrey, Oprah, 122
Witching hour, 54
Women’s underwear market. See Victoria’s Secret
Wonderful, 51
Xiaomi, 143
Y Combinator, 144
You don’t need to be first--just better, 17, 18
“Young & Hungry” demand space, 62
Zappos, 105–119
apostle interview, 115–116
CEO (Hsieh), 111–112
company culture and company brand/two sides of same coin, 118
complex adaptive system, 118
corporate headquarters, 108–109
Culture Book, 109–110
employee values, 113–114
Golden Rule, 113
lessons learned, 117–119
motto, 111
on-the-job training, 107
organizational tension, 118
personal emotional connection (PEC), 106–107
price premium for premium service, 117
recruitment, 110–111
repeat customers, 115
transparency, 114–115
value proposition, 110
what customers really value, 112
word-of-mouth messaging, 117
Zappos family core values, 113