Love Thy Neighbor

The last thing any company wants to do is help its competition. Right? I submit a seemingly counterintuitive business practice: benevolent market leadership. At its simplest, benevolent market leadership is about leveraging a leadership position in an industry and working in a non-competitive manner to expand the marketplace for all involved. Not that Quiksilver doesn't compete against other brands—we do, and we do hard. But we have also created programs and initiatives designed to serve the greater good of the industry and a lifestyle we believe in.There are numerous benefits to integrating benevolent market leadership into your corporate strategy. In the information age, every product represents a brand, and every brand represents a lifestyle—in our case, boardriding (surf, skate, snowboard). Lifestyles are susceptible to trends and fads. Benevolent market leadership helps to insulate an industry from fickle tastes by expanding to new audiences and solidifying a core base of consumers. It also engenders goodwill among competitors—which is a nice, albeit not necessary, consequence. On the more necessary side, benevolent market leadership provides a means for contributing to areas one believes in and increasing a brand's mind-share and relevance, which also leads to increased sales. Intel is a great example. In 1991 it created a co-op fund, where it applied a percentage of revenue for advertising in the PC category. Partial funding for marketing initiatives was made available to all PC makers, and by the end of 1991, 300 PC OEMs (original equipment manufacturers) had signed on. The program grew and evolved, and 1995 saw the introduction of the now-familiar "Intel inside" branded jingle. Intel's objective wasn't immediately to boost chip sales or promote any single manufacturer, but to stimulate long-term demand and expand the industry. It is evident today that its investment bore fruit and then some. Quiksilver Entertainment's track record bears out the strategy, as well. We worked with MTV to create Surf Girls, which provided a glimpse into the surf lifestyle, especially for young women. We could have called the show Roxy Girls and limited the apparel to our labels, but we broadened the message and let in manufacturers of all kinds. We also teamed with Fox Sports Net to create 54321, the first TV news show devoted entirely to action sports. As with Surf Girls, it gave everyone in the industry a chance to get noticed. Both shows served to expand awareness beyond core enthusiasts. We also worked with France's Studio Canal on the film Riding Giants, which follows the pioneers of big-wave surfing. Most recently, we created the "Union*" brand, a worldwide initiative designed to promote the overall action-sports industry by creating a mainstream distribution platform upon which all endemic companies can participate in a non-competitive manner. It includes profit-sharing among some 15-20 companies, many of which are our direct competitors. The brand will broadcast action-sports content through DVDs, VOD (video on demand) technology, Internet streaming media and a national theater tour.What is the actual result? A study by Sports Business News Network shows that board-sports participation almost doubled from 1999 to 2003. Nearly one in five women and girls in California now say they surf, up from one in 20 in the mid-1990s, according to statistics published in Outside magazine. The result is a larger pool of consumers interested in boardriding brands of all kinds. Any business can create similar programs and get similar results. First, identify the specific lifestyle behind the product or industry. Next, determine possible allies and stage open-ended brainstorming sessions that encourage creativity and innovation. Decide which channels or approaches would accomplish your goals, and determine how to fit these initiatives into your business plan. Then it becomes a matter of making a tough decision and taking a calculated risk. Benevolent market leadership really does work. To borrow an old cliché, a rising tide lifts all boats.

Brand Marketing

Love Thy Neighbor

Adweek Staff

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