Month: February 2011

Subaru – Love on four wheels


At the outset, I should admit that I live in the Pacific Northwest and that may be one of the reasons I’m taken by this buy, use, love story. I love our Subaru (technically it’s my wife’s car so I don’t use it as much as I’d like to). When we bought it, it was the lightest, most fuel efficient (for an AWD), tightest-turning little SUV we could find. Even though all cars eventually lose their new smell and sheen, we keep recommending the Subaru to our friends and family.

There is no doubt that Subarus shine in parts of the country that have harsh winters or tons of outdoor enthusiasts. Lately, however, it seems like its core group of self-appointed brand advocates have slowly started turning the rest of the country on to Subaru vehicles. In 2009, the year we bought ours, Subaru saw remarkable success while the rest of the industry was being bailed out or bought up. In fact, they’ve kept up the blistering pace of growth throughout the Great Recession.

It's what makes a Subaru, a Subaru

All car companies have hits and misses and Subaru is no exception; it is also much smaller than some other companies so growth rates alone might not be the correct measure of its success. What is clear, however, is the loyalty of Subaru owners… everyone we know who owns one, loves their Subaru. As you might expect, the Product Manager in me was compelled to investigate the strategies that fuel this (sometimes unhealthy) devotion.

Create a unique identity and stay true to it
Subarus are quirky, all the way from their exterior design and mechanical underpinnings to the way they are produced and marketed. This quirkiness, which aligns the company’s values with those of its customers, makes Subaru’s story and value proposition authentic and sticky. The ubiquitous all-wheel-drive (safety), the smooth, fuel sipping boxer engines (fuel efficiency) and the industry-leading zero-landfill auto plant (eco-consciousness) all make the company’s identity inseparable from the values held dearly by its customers. As a Product Manager, it seems obvious that one would build a marketable value proposition around the customers’ deeply held values (not just near-term needs and desires) but Subaru’s example highlights how uncommon it is to create and maintain this commitment to authenticity.

Focus on customer experience and outcomes
According to their CMO, Subaru recognizes that its core customers (I’m paraphrasing) are the types of people who buy experiences instead of things. These are well-heeled, educated and financially savvy customers who buy Subarus to fulfill their desire to beat the elements, burn rubber (in the case of the WRX drivers) or explore the wild outdoors. Consequently, Subaru’s product strategy focuses on enabling these experiences instead of outdoing their competition with muscle, chrome and technology. All good Product Managers realize that customers care more about dead (or trapped) mice than a better mousetrap… it’s essential to focus on the experience and the outcome not just the product.

Turn sales into relationships
The key reason for its recession-proof financial performance is Subaru’s ability to inspire devoted loyalty and return business amongst its customers. Even though typical Subaru customers are frugal enough to keep their cars for a long time, they keep coming back to buy more Subarus (apparently on average every 7.3 years). The company invests heavily in these relationships by making product improvements to address customer feedback and training dealership personnel to excel at everyday service. They’ve even started a program to let customers adorn their cars with badges to profess their love (free marketing, anyone?). Even with the possibility of occasional harsh criticism, creating a true relationship and dialog with customers is the most valuable and gratifying investment a company and a Product Manager can make.

As I read this post, I keep wondering if I’m describing a company’s product strategy or the secrets to individual success. Creating an authentic identity, focusing on positive outcomes and building rich relationships can definitely make us the best versions of ourselves; as it turns out, these principles also help make the best products.

Harley Davidson – Born to be HOG wild


I can’t think of any other brand that generates as much buy, use, love passion as Harley Davidson. In a time when ‘American manufacturing’ is becoming an oxymoron, Harley Davidson is proudly carrying the banner of American innovation, industry and irreverence. Regardless of all the well-heeled Harley owners who just tootle around on weekends, Harley Davidson represents the irrepressible American spirit of legend that has captured the world’s imagination.

Over the years, Harley Davidson bikes have been vilified, glorified and caricatured in American popular culture but the sheer resilience of their iconic image is the envy of corporate America. Since opening it’s doors in 1903, the company has seen many highs and lows and even some near-death experiences. The juxtaposition of this chequered past and the utter devotion of its customers intrigues me.

Some would credit Harley Davidson’s survival and success to the collective nostalgia among American bikers or the protectionist tariffs on imported motorcycles in the 80s. However, I was convinced that some counter-intuitive product strategy must have played a part in reviving this American icon. Inquisitive as ever, I went looking and here’s what my sleuthing uncovered…

Don’t play your competitor’s game
When Harley Davidson was emerging from near bankruptcy in the early 80s they made a clear decision to ignore the competition and chart their own course to success. At the time, there was no doubt that Japanese manufacturers held the advantage in the mainstream market so Harley decided to focus solely on heavier premium motorcycles and retro designs. In fact, during the latest economic downturn, Harley Davidson decided to forgo market share to maintain their premium status while their competition was lowering prices and offering aggressive incentives. Product Managers are often under pressure to beat competitors and take market share by out-executing on the same tactics as everyone else. Harley Davidson’s example shows that success may not lie in beating competitors at their own game. Let’s all take the time to proactively define success instead of reacting to someone else’s.

It’s OK to be conspicuous
Early in my career, I worked for a company that helped Harley Davidson engineer new models that produced a perfect rendition of the legendary Harley growl. Much like the first iPod’s white headphones or the Toyota Prius’ odd shape, Harleys are designed to stand apart from every other player in the market (even though the competition is constantly trying to catch up). For better or for worse, Harleys grab everybody’s attention and fuel the aspirations of future riders. Of course, not all Product Managers get to manage aspirational consumer products but it always pays to design in ways to amplify your product’s differentiators. If your product is truly better than the competition then don’t be shy… be conspicuous. The good thing is, you’ll hear from the market very quickly if you’re all swagger and no spine.

Enable customers to innovate and learn from them
From the early days, Harley Davidson enthusiasts have refashioned their stock motorcycles to reflect their very own personal style. The company has supported and stayed close to these outside innovations and adopted some of the ideas to create new lines of products. All good Product Managers recognize that innovation can come from anywhere but only a few build platforms that enable innovation outside their own company. Whether it’s building choppers around your ‘Big Twin’ engine or services on top of your API, enabling customers and partners to innovate could be the best R&D investment your company ever makes.

As I was writing this post, the reasons behind the Harley loyalist’s passion became crystal clear to me.  The Harley Davidson spirit of individuality and rebellion is more than just slick marketing; the motorcycle itself embodies the spirit. Here’s hoping we can all create products that are physical manifestations of our ideals.