More and more brands are seeing value in being more than just the function of their products. For instance, Lululemon employs only the most evangelical of brand stewards to run their retail outlets, creating a tribe-like mentality among consumers. Running Room, with its 114 locations, has become far more than a store that sells sporting apparel and equipment; it is a running club with a highly engaged and fiercely loyal consumer base. More recently, brands such as the Art of Shaving and Clif Bar have both demonstrated the need to provide brand experiences, lest they become commodities in their respective product categories. The following white paper explores these brands, and the strategic tactics that have enabled them to carry and benefit from the moniker “experience brand.”

1. Experience brands
How commoditized products redefined their categories

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Shikatani Lacroix is a leading branding and design firm
located in Toronto, Canada. The company wins
commissions from all around the world, across CPG, retail
and service industries, helping clients achieve success
within their operating markets. It does this by enabling its
clients’ brands to better connect with consumers through a
variety of core services including corporate identity, naming
and communication, brand experience, packaging, retail,
wayfinding and product design.
About the author
Adam Mintz, Strategic Planner at Shikatani Lacroix
Adam is an experienced brand strategist specializing in
market positioning and consumer engagement. His career
spans multiple industries and numerous segments within
the product cycle, from manufacturing to retailing.
He began his work in the world of fashion as a brand
manager for Diesel Clothing Canada, after which he spent
time working in mass merchandising for some of the
world’s largest CPG companies and big box retailers across
Canada. Adam recently spent a year as a brand strategist
with FutureBrand Australia before returning to Canada
where he has since held a senior planning position at
Shikatani Lacroix.
Adam holds a BA in Communications from Concordia
University and a Masters in Global Marketing
Communications from Emerson College.

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Growth through experience
In 1986, Nestle created the Nespresso Group and alongside
it its first single-serve coffee capsule. For 11 years the brand
grew at a moderate pace, and by 1997 had amassed
approximately 220,000 club members. Then over the
subsequent 14 years, Nespresso grew its club to a
whopping 10 million members. Notably, between 2000 and
2003, Nespresso grew its annual revenue by 28%, 34%, and
42% respectively. As of August 2013, Nespresso is now the
Nestle Group’s fastest growing division with annual revenue
topping $4.3 billion.
While casual observers have attributed these numbers to
the George Clooney ad (which did not air until 2006), it
was in fact a number of strategic, non-advertising related
marketing activities that lead to the brand’s swift ascent. In
2001, Nespresso refined its corporate identity, created the
first Nespresso boutique in Paris, and designed luxury style
packaging for its machines, capsules and shopping bags.
Ultimately, what lead to such astonishing growth was the
ways in which consumers experienced the brand.
Nespresso became more than the product it was selling – it
became an experience. It created unforeseen value beyond
its product’s function that consumers could connect with.

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A new norm
Taking cues from the likes of Nespresso, more and more
brands are seeing value in being more than just the function
of their products. For instance, Lululemon employs only the
most evangelical of brand stewards to run their retail
outlets, creating a tribe-like mentality among consumers.
Running Room, with its 114 locations, has become far more
than a store that sells sporting apparel and equipment; it is
a running club with a highly engaged and fiercely loyal
consumer base. More recently, brands such as the Art of
Shaving and Clif Bar have both demonstrated the need to
provide brand experiences, lest they become commodities
in their respective product categories. The following white
paper explores these brands, and the strategic tactics that
have enabled them to carry and benefit from the moniker
“experience brand.”
Five strategies to an experience brand
Becoming an experience brand requires the implementation
of one or more of the following strategies:
1.
2.
3.
4.
5.
Strategic distribution
Unique product and package design
Telling a “different” story
Living the brand
Creating communities in the
physical world

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For a
commodity,
becoming an
experience
brand means
making
strategic
distribution an
important part
of the
marketing mix
Experience brand tactic #1 - Strategic distribution
For commodity products such as snack foods and
beverages where low cost, high volume and mass
distribution are the name of the game, the path to
becoming an experience brand is a road that goes through
event sponsorship. They immerse their brands within a
particular lifestyle or culture, thus creating an association
between their products and a particular way of living. As an
example, Red Bull uses sponsorship as a means of
associating itself with extreme sports culture through its
sponsorship of everything from Motocross bikers to space
jumpers. A less costly means by which to immerse a brand
within a lifestyle or culture, however, is through strategic
retail distribution.
Position through distribution
Unlike most bars found in the snack aisle of a grocery store,
Clif Bar carries the moniker of experience brand through its
association with the outdoor enthusiast culture. You won’t
find people consuming Clif Bars as a means to satiate their
hunger while watching TV. To Clif Bar brand evangelists,
the product is seen as an important energy source to be
used during a hike, a bike ride, or on a camping trip. This
association was made possible at its inception, when Clif
Bar was sold primarily through bike shops and outdoor
enthusiast stores, thus creating an association with those
activities. While Clif can now be found in major grocery
retailers and convenience stores, they continue to create
their association with outdoor lifestyle through freestanding
displays at outdoor enthusiast stores such as Mountain
Equipment Co-op in Canada and EMS in the United States.
For commodity food and beverage products such as Clif
Bar, becoming an experience brand means making strategic
distribution an important part of the marketing mix.

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Experience brand tactic #2 - Unique product and
package design
Unless your product comes in multiple colours, special
editions, or your packaging is too beautiful to throw away,
your brand’s experience is limited only to the times your
customer uses your product. Despite what your mother
told you, what’s on the outside matters almost as much as
what’s on the inside.
In recent years, the advent of single serve coffee has
brought with it a multitude of competitors to market, yet
few, if any, have made design as high a priority as
Nespresso. Dubbed “The Apple of Coffee” due to its
attention to detail, not only to the simplistic functionality of
its products, but also the design of every aspect of its
brand – from the retail stores to the espresso capsule. For
starters, Nespresso coffee machines come in a dizzying
array of sizes and colours to suit design preferences and
spatial needs of various kitchen sizes. Look and feel,
however, goes well beyond the machine; it is in the
packaging details where the full branded experience comes
to life.
Nespresso capsules are treated as a luxury item, and similar
to a protective case you would expect to accompany the
purchase of an expensive pair of sunglasses, capsules are
housed in thin, long, black-matte-finished sleeves. At retail,
these purchased sleeves are then placed into an equally
beautiful shopping bag similar to what you might expect to
receive after purchasing an item from Holt Renfrew.
In a commoditized coffee market, brands need to look
beyond product function to find a unique point of
difference. Nespresso has done so by elevating the
category beyond taste; through a unique and luxurious look
and feel.

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When every
brand is going
one way, it never
hurts to go the
other.
Consumers pay
attention to the
other
Experience brand tactic #3 - Telling a different kind
of story
“My razor has two blades.” “Mine has three.” “Mine has
four.” “Mine has a vibrating handle.” “Interesting, mine has
one blade, requires pre-shave oil, a brush made from rabbit
hair, and shaving cream that must be lathered and spread
evenly across my face, followed by a soothing post shave
moisturizer.”
When every brand in a given product category is going one
way, it never hurts to go the other. Consumers pay
attention to the other.
A change in perspective
In 1901, Gillette introduced the first safety razor, eliminating
the cumbersome task of having to sharpen and shave with
a straight edge blade. In 1949, Carte Wallace produced the
first aerosol shaving cream, rendering the need for shaving
brushes and lather cups obsolete. Speed and ease of use
became top priority above quality and precision, and the
commoditization of male shaving was born. That was until
1996, when Eric Malka‘s sensitive skin compelled him to
formulate a “protective pre-shave oil” to alleviate the
discomfort he felt from shaving, and reintroduce a lost art:
“The Art of Shaving.”
Beyond the tale of the comfortable close shave, The Art of
Shaving defines the morning ritual as a process not to be
sped up, but slowed down through a four-stage process: a
pre shave oil, a rich lather of shaving cream with a brush, a
close shave, and finally the application of a soothing
moisturizing balm. The essence of the story is that shaving
should be a daily experience to be enjoyed, rather than
simply exist as part of a man’s morning to-do list.

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Living the brand
breeds
authenticity...
authenticity
breeds loyalty
Telling a story your competitors are not invariably leads
consumers to think differently about your product category
and, in turn, your brand. This inherently provides them with
a new experience – your brands experience.
Experience brand tactic #4 - Living the brand
Brands do not live exclusively through the product that
bare their name; each has its own distinct personality, and
at retail, and in particularly for clothing manufacturers,
those promoting and selling the brand must first and
foremost exemplify the brands persona. Visit any of
Lululemon’s 200-plus stores and you’ll not only find
employees dressed head to toe in company apparel, but
also a company lifestyle, attitude and personality imbedded
in each and every employee.
An investment, not a cost
Lululemon creates brand ambassadors who sell the lifestyle
with conviction, due in large part to the fact that they live
and breathe the brand. The process of cultivating these
ambassadors begins at the interview stage. Prospective
employees sit in a group on floor pillows and share different
aspects about their life and personality. Once hired, they
are given motivational books to read by authors such as
Malcolm Gladwell and Starbucks’ CEO Howard Schultz.
Fitness and dance classes can be expensed, and employees
spend time getting to know each other outside of work at
company sanctioned hikes, conferences, and fitness classes.
Unlike many retailers, Lululemon does not see its store staff
as a cost of doing business, but rather as a marketing
investment that produces sales results. As one former
employee puts it, “You were supposed to take ownership of
the store. When you left (work,) it was clear you were
representing the company. If we went to fitness classes, we
were supposed to tell others where we worked and maybe
invite them to events. It was a lifestyle.”

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“While others may
mimic parts of the
business, it’s
impossible to
copy a
personality.”
The absence of mass advertising within Lululemon’s
marketing mix means it relies on a hyper-local marketing
strategy: hosting yoga events, half marathons, and inviting
local fitness instructors to become brand ambassadors who
sport the brand’s apparel while teaching their classes. The
most essential aspect of Lululemon’s success, however,
continues to be its store staff who participate and promote
events and the brand at every turn. Laura Klauberg,
Lululemon SVP of Global Brand, says, “While others may
mimic parts of the business, it’s impossible to copy a
personality.” It’s this personality that creates a loyal
customer base and encourages them to continue to live the
brand.
When employees live the brand, the brand becomes
authentic. If employees don’t believe in what they’re selling,
authenticity ceases to exist. Living the brand breeds
authenticity, and authenticity breeds loyalty.
Experience brand tactic #5 - Creating communities in
the real world
There’s no doubt brands with extensive online communities
can garner fierce brand loyalty among its customers, in
particular for product categories that exist online, such as
gaming, electronics, and telecommunications. But when it
comes to brands whose products exist offline (sporting
equipment and apparel for instance), communities should
exist not only online, but in the real world where products
are consumed.
Along Yonge Street in midtown Toronto, within a five-block
radius of one another, exists three major sporting retailers,
all of which sell running apparel, shoes and accessories.
Only one, however, offers a free, biweekly running club,
running clinics, and online training tools that enable you to
track your training progress. It’s called Running Room.

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Now with 114 locations across North America, Running
Room has built its business on catering to every aspect of
the customer experience, both online and offline.
Online, consumers can take advantage of the runner’s
forum, map out local routes, read the company’s online
magazine, and create training
programs with ongoing training logs.
Offline, Running Room holds, sponsors,
and participates in hundreds of running
events each year, in addition to its
biweekly running club. In doing so, the
brand has become more akin to a
health club with a retail store than the
other way around. As founder John
Stanton puts it, “It’s an environment
that’s like a clubhouse where people
meet other runners.” Running Room
views the community aspect of its
stores as more than a tertiary “nice-tohave service,” it sees it as one of its
core business tools that helps foster
brand loyalty among its customers.
When a brand’s products are sold and consumed in the real
world, it’s important that its communities live there as well.
Online communities have a virtual life, offline communities
have a real one.

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A deeper meaning for consumers
When a brand becomes an experience brand, the products
become important to the consumer beyond the functions
they serve, which is why people don’t just like experience
brands, they love them. During a man’s morning routine,
The Art of Shaving isn’t just a brand used to shave their
face, it’s a luxurious, ritualistic way for him to start his day
and rejuvenate his skin. A post-dinner coffee enjoyed in the
comfort of your home isn’t just a nice way to end a meal.
More than a kitchen appliance, the Nespresso system is a
nightly café experience. These are not merely things people
do, rather they are rituals by which consumers live their
lives, enabled through the brands they consume and
experience on a daily basis.
In a market filled with seemingly endless choices in
consumer products, it is no longer sufficient to have a
unique product. A brand must also deliver a unique
experience if it hopes to become a category leader with
droves of brand loyalists.

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Reference materials
Business Insider - You Really Do Have To ‘Drink the KoolAid’ To Succeed At Lululemon
http://www.businessinsider.com/what-its-like-to-work-atlululemon-2013-2?op=1
Strategy - Brands of the Year: Lululemon takes local to the
next level
http://strategyonline.ca/2012/09/28/brands-of-the-yearlululemon-takes-local-to-the-next-level/
Clifbar.com - The Clif Bar and Company Story
http://www.clifbar.com/uploads/press_downloads/CBCOCompany-Story.pdf
Nestle-nespresso.com - Our History
http://www.nestle-nespresso.com/about-us/our-history
Interpack - Nespresso: successful design capsules
http://www.interpack.com/cipp/md_interpack/custom/
pub/content,oid,13560/lang,2/ticket,g_u_e_s_t/mcat_id,
3776/~/Nespresso_Successful_design_capsules.html
Bloomberg - Nestle’s Nepresso Growth Hit by Swiss
Contender Migros: Retail
http://www.bloomberg.com/news/2013-04-21/nestle-snespresso-growth-hit-by-swiss-contender-migrosretail.html
Fast Company - Triggering Demand: How Coffee Maker
Nespresso Turned Drips Into Gushers
http://www.fastcompany.com/1781304/triggering-demandhow-coffee-maker-nespresso-turned-drips-gushers

13. White Paper | September 2013 | Experience Brands | 12
The Art Of Shaving - Brand Story
http://www.theartofshaving.com/article-brandstory/articlebrandstory,default,pg.html
http://www.runningroom.com/hm/
For more information contact:
Adam Mintz
Strategic Planner
Shikatani Lacroix
387 Richmond Street East
Toronto, Ontario
M5A 1P6
Telephone: 416-367-1999
Email: amintz@sld.com