actually quite easy to see and measure.”
This is something that rings espe-
cially true for Tripp Baird, founding
principal of Partnership Capital
Growth, an investment advisor focused
on the healthy, active and sustainable
living marketplace. Baird explained
that it is critical for entrepreneurs to
have “unwavering commitment to what
we call ‘Value and Values‘—basically
never sacrificing the core values/mis-
sion of the business regardless of the
circumstances. We tend to say that
value creation has to go hand in hand
with the commitment to core values or
it won’t last.”
Jatar notes that many brands may
find a road to success without having a
higher purpose, but that success may
not last. Half of the companies that
were in the Fortune 500 list in the
1970s don’t exist today, he comments.
“Just being big isn’t really fun. It takes
much more effort and costs more in re-
source and human terms to maintain
profit margins and leadership.” For ex-
ample, P&G sold its Folgers brand be-
cause margin growth began to depend
on cost and pricing and customer man-
agement, which ultimately meant deal-
ing with retail customers who
increasingly wield the power. “Iconic
brands enjoy greater margins for
longer with less effort, less resources
and less risk, as crazy as that might
seem,” he says. “Think about Star-
bucks. How much did they spend on
mass advertising in the first 10 to 15
years? Zero.” What Starbucks did was
build real relationships with their cus-
tomers and communicate to them in a
way that was meaningful and lasting,
creating a sense of community that
continues to go beyond a cup of cof-
fee. From their innovative strategic
partnerships with organizations like
Barnes and Noble, pioneering retail
models, to calling out customers by
name, Starbucks is centered in build-
ing long-term relationships with cus-
tomers.
Taking the Iconic Freeway Versus the Typical Route
to Market
When Jatar started studying the early histories of iconic brands, he was faced
with the classic chicken and egg question: did the brand become compelling before it secured mass distribution or did distribution allow it to become a draw?
Since most iconic brands were started by small entrepreneurs who did not have
the muscle to achieve mass distribution, it was a consequence of, not the cause of,
their iconic status. In fact, mass distribution too early in the life of a new brand is
often the primary reason why many successful product launches don’t result in
