The Difference Between Products and Brands

Products are made in the factory, but brands are created in the mind. Even though we consider ourselves logical and modern human beings, the majority of our decisions are driven by the ancient, instinctive, subconscious part of our brains, sometimes referred to as the reptilian brain. Let’s explore an example of this phenomenon in the field of marketing.

Nestlé’s Challenge in Japan

In the 1970s, Japan’s economy was booming, and Nestlé was eager to capitalize on this by introducing their coffee to the market. However, they faced a significant challenge: Japanese consumers were deeply in love with tea. Nestlé cautiously tested the market by conducting several focus groups across different age groups. To their surprise, the feedback was overwhelmingly positive—Japanese consumers really liked the taste of Nestlé coffee.

The Unexpected Sales Decline

Excited by the positive feedback, Nestlé executives launched a massive marketing and distribution campaign to ensure their coffee was available on every shelf in Japan. However, the results were disappointing. Despite the positive feedback, Nestlé coffee wasn’t selling. Japanese consumers, who liked the taste of coffee, still chose to stick with tea. This unexpected outcome puzzled Nestlé, as all the studies had indicated that their coffee would be a success.

Enter Clotaire Rapaille: The Marketing Genius

Facing this challenging situation, Nestlé decided to bring in Clotaire Rapaille, a renowned marketing expert. Unlike traditional marketers, Rapaille was a former child psychiatrist who had worked with autistic children. His unique experience led him to believe that people often don’t know what they really want, as their true desires are driven by unconscious instincts. Rapaille referred to this as the “reptilian instinct.”

A Jeep Story: Understanding Consumer Psychology

One of Rapaille’s most famous successes was with Jeep. The company’s latest models were not selling well, and they couldn’t figure out why. Rapaille’s solution was surprisingly simple: revert to using round headlights. He understood that for American consumers, a Jeep symbolized freedom and adventure, akin to a modern-day horse. When Jeep had changed the headlights from round to square, they inadvertently broke this symbolic connection. Once Jeep reverted to round headlights, their sales skyrocketed.

Nestlé’s Sweet Solution for Japan

Returning to the issue with Nestlé in Japan, Rapaille quickly realized that Japanese consumers had no emotional connection to coffee. Unlike tea, coffee wasn’t a part of their childhood memories. Japanese kids grew up watching their parents drink tea, smelling tea in the air, and eating tea-flavored snacks. Naturally, as adults, they chose tea over coffee.

Rapaille’s solution was to introduce coffee-flavored candies. Suddenly, Japanese children began to discover the taste of coffee through these sweets. From there, they transitioned to cold, sugary coffee-flavored drinks, then to lattes, and finally to big, steamy mugs of Nescafé coffee.

The Takeaway: Make the Buyer the Hero

Not bad for a market that initially wouldn’t buy coffee just 40 years ago. The key takeaway from this story is that no matter what story you tell, make the buyer the hero.