Brand Relevance


The only way to achieve real growth is to engage in brand relevance competition, using innovation to create new categories or subcategories for which competitors are irrelevant and build barriers to keep them out of the game. The alternative — fighting the brand preference battle with "my brand is better than your brands" strategy based on incremental innovation and expensive marketing — virtually never changes the marketplace. There is too much inertia. Customers simply lack the motivation to change habitual brand purchases even in the face of brilliant market programs that ask them to do just that.

In virtually every industry the only meaningful change in market share patterns occurs when one brand succeeds in changing the game by establishing a new category or subcategory


Hyatt is currently seeking to carve out subcategory in an established arena with its Hyatt House concept which aims to provide a "home" experience for travelers. There will be a central lounge within an oversized social area, chairs with gadget resting spots, and an "H Bar:" an island that serves as a breakfast bar, a cocktail bar, and a gathering place. A glass-enclosed game room with a home entertainment system and a backyard with a fire pit also elevate the social life style. The Suites will also have residence-like touches like a multi-task island, a variant of the familiar kitchen island, where you can not only prepare meals but also watch TV and use your laptop. The fact that a relatively small player such as Hyatt is the innovator is a common occurrence. The larger firms generally suffer from the curse of success and are reluctant to take risks.

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