As the world becomes more interconnected and globalization continues to expand, companies have more access to tools, platforms, and resources that make it easier to enter markets and create new businesses. This also means more competition. Because of this, one aspect that becomes increasingly important is top-of-mind awareness. Familiarity can help brands stand out when consumers are surrounded by many alternatives. Galoni, Carpenter, and Rao found that consumers disproportionately favored brands and products they already knew, particularly in situations of uncertainty.
Luxury cars are a good example. Porsche has developed a very recognizable design language and brand identity, making it one of the brands that easily comes to mind when consumers think about luxury and performance vehicles. When someone is making a high-investment purchase such as a luxury car, familiarity may influence the decision because the consumer is not only buying transportation, but also prestige, recognition, and the meaning associated with the brand. This shows why focus is important: rather than constantly changing what makes the brand recognizable, Porsche needs to innovate while protecting the elements consumers already associate with it.
In particular, as Porsche expands further into electric vehicles, the challenge is not only to introduce new technology, but also to make sure the vehicle still feels recognizable as a Porsche. Of course, as marketers, we do not want a brand to become obsolete. We want to innovate, evolve, and introduce something different. However, there are certain elements a company should protect, such as its brand heritage, performance character, and recognizable identity, while other elements can evolve, including technology, materials, and sustainability features. The fine line between innovation and brand dilution is knowing what can change without changing what makes the brand recognizable in the first place.
Bibliography
Galoni, C., Carpenter., G., & Rao, H. (2020). In a Pandemic, We Buy What We Know. Harvard Business Review. From In a Pandemic, We Buy What We Know.