Official Zappos Cult Brand Profile

Zappos-Cult-Brand-Profile

 

Certified Cult Brand
We have tracked businesses with unprecedented brand loyalty since 2001. A Certified Cult Brand is a designation we hold for brands that fulfill specific market criteria, including upholding the Seven Rules of Cult Brands.

Zappos Cult Brand Summary

Disenfranchised with the culture of the company he started, Tony Hsieh sold LinkExchange to Microsoft for $265 million. Using the clout acquired through skyrocketing LinkExchange to a profitable investment for its backers in two and a half years, Hsieh and his friend Alfred Lin started the venture capital fund Venture Frogs. Amidst the smaller successes and the forgettable businesses launched by Venture frogs was Zappos, the company that would eventually make Hsieh the quirky envy of the business world. By the time Zappos captured the attention of the public, guaranteed success seemed built into the DNA of the brand. After all, how else could a company soar to $1 billion in sales in just under 10 years, and captivate legions of diehard loyal fans? But, Zappos’s rise to profitability and admiration was far from an easy journey.

In 1999, Nick Swinmurn contacted Hsieh and Lin with a simple idea: become the Amazon of shoes. After Swimurn convinced them of the size of the potential market, Venture Frogs invested in the company, planning to turn it over to other companies for additional funding. But that funding never came.

Hiseh believed that the people at Zappos wanted to create something big, and invested a second round of funding. Hsieh joined the company full time, wanting to prove to the world that LinkExchange wasn’t his one-trick pony. Hsieh began dumping his own money into the company, housing employees, and eventually selling his large loft for 40% below what he paid for it just to add funding to a company that would have been defunct two weeks later.

Lacking money to invest into traditional advertising media to gain new clients, they focused on retaining their old ones and increasing the number of purchases their customers were making.

In 2003 seeing that the only reason the company made it this far was the direct result of customer satisfaction, through repeat business and word-of-mouth, Hsieh focused every aspect of the company on delivering great service and WOWing the current customers.

The same year, drop shipment direct from manufacturers accounted for an easy-to-make 25% of the business. But 5% of orders were wrong. The result: Zappos moved all of their shipping to their own warehouse. Although this move was more costly and less efficient, Hsieh wasn’t concerned with traditional business metrics. He wanted to maximize the customer experience rather than maximizing short-term profits.

This extreme attention to customer satisfaction has even led Zappos employees to help customers order shoes from competitors when they were out of stock.

Hsiesh’s long-term, customer-based strategy paid out, bringing Zappos to $1 billion in sales in 2008, two years ahead of schedule.

When the board of directors wanted an exit strategy, rather than risk destroying the culture and turning Zappos into LinkExchange 2.0, Hsieh looked for like-minded investors to buy out the current board. This eventually resulted in the heavily-publicized purchase by Amazon.com.

Zappos now operates as an independent entity and maintains its unique culture. Rather than focus on buzz and major marketing schemes, Zappos continues to focus their efforts on what made them successful and made their customers love them: building long term customer relationships by continuing to WOW them with every interaction.

Zappos Timeline

  • 1999 — Funded by Venture Frogs venture capital firm.
  • 2000 — Tony Hsieh joins as CEO.
  • 2002 — Zappos takes control of its shipping, opening a fulfillment center in Kentucky.
  • 2003 — Makes customer service key focus of the company.
  • 2004 — First publication of the Zappos Culture Book.
  • 2005 — Alfred Lin joins as CFO. 2007 – Adds new categories.
  • 2008 — Reaches $1 billion in sales.
  • 2009 — Purchased by Amazon for $1.2 billion.

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Official Harley Davidson Cult Brand Profile

Harley Davidson brand lovers

Contents

Certified Cult Brand
We have tracked businesses with unprecedented brand loyalty since 2001. A Certified Cult Brand is a designation we hold for brands that fulfill specific market criteria, including upholding the Seven Rules of Cult Brands.

Quick Stats

In 1901 William S. Harley, age 21, completes a blueprint drawing of an engine designed to fit into a bicycle.

In 1983, Harley formed a club for owners of its product using the acronym HOG., for Harley Owners Group.

On August 15, 2006, Harley-Davidson Inc. had its NYSE ticker symbol changed from HDI to HOG.

In 1991, HOG went international, with the first official European HOG Rally in Cheltenham, England. Today, more than one million members and more than 1400 chapters worldwide make HOG the largest factory-sponsored motorcycle organization in the world.

In 2008, HOG celebrated its 25th anniversary in conjunction with the Harley 105th in Milwaukee Wisconsin.

Henry Meyer of Milwaukee, a schoolyard pal of William S. Harley and Arthur Davidson, buys one of the 1903 models directly from the founders.

Licensing of the Harley-Davidson brand and logo accounted for $40 million of the company’s net revenue in 2010.

Harley-Davidson Cult Brand Summary

To say that Harley had fallen on hard times by 1981 would be a drastic understatement. Japanese companies were destroying the company on pricing and Harley-Davidson’s bikes had lost the quality that made them famous.

The executives risked their corporate lives with an $80 million buyout on a turnaround situation that looked almost impossible. But, they couldn’t afford to fail; the whole company’s back was against the wall. They had to make it. The choice was simple: drastically improve the quality of the motorcycles and develop strong customer ties or go out of business.

Harley started copying Japanese production techniques and quality control, and released the new “Evolution” engine in 1983 that put an end to oil leaks and other quality issues.

Given financial constraints, Harley couldn’t engage in a traditional advertising campaign to win over customers. In 1983 CEO Vaughn Beals announced the launch of the Harley Owners Group (H.O.G.), which he saw as a grassroots way to reconnect Harley’s brand and lifestyle with its most faithful customers.

Despite an initial lack of acceptance, within a few years H.O.G. chapters started appearing around the country. The spread of these groups was gorilla marketing at its best: membership was generated primarily from inexpensive promotions at dealerships and word-of-mouth. H.O.G. groups gave enthusiasts a structured way to meet, swap stories, and schedule rides with other evangelists.

Harley made a wise move in requiring every H.O.G. chapter to have a dealership sponsor. The result of this stipulation was a tighter relationship between Harley dealers and the customers, as well as an increase in parts and merchandise sales.

They didn’t stop with creating members groups. They started sponsoring rallies around the country. In doing so, not only did they solidify their communities, but they also used the rallies as a killer sales tool. They bring motorcycles to the rallies for people to tryout. This concept reaches its apex each year at Bike Week in Daytona Beach and the Sturgis Rally and Races in South Dakota. Collectively, the events attract over half a million Harley enthusiasts. Harley takes feedback its employees receive at these events very seriously. Opinions they receive from customers affect what is produced in product lines and the way they run their rallies. This desire to appeal to the customer has been extended to the point that Harley offers the option of customizing their motorcycles. This allows Harley to rack up higher-margin sales, while allowing consumers who buy a custom Harley feel like they are not only joining the “Harley nation,” but that they are also exercising their own individuality.

In creating these events, and paying attention to its customers, what Harley is ultimately selling through its motorcycles is the opportunity to experience the feelings of raw freedom and empowerment that one receives from strapping on some leather and riding a bike down the open road. These are feelings common to Americans of all ages, races, and backgrounds.

Harley-Davidson Timeline

1901- William S. Harley, age 21, completes a blueprint drawing of an engine designed to fit into a bicycle.

1903- William S. Harley and Arthur Davidson make available to the public the first production Harley-Davidson® motorcycle. The bike was built to be a racer, with a 3-1/8 inch bore and 3-1/2 inch stroke. The factory in which they worked was a 10 x 15-foot wooden shed with the words “Harley-Davidson Motor Company” crudely scrawled on the door. Arthur’s brother Walter later joins their efforts.

Henry Meyer of Milwaukee, a schoolyard pal of William S. Harley and Arthur Davidson, buys one of the 1903 models directly from the founders.

1904- The first Harley-Davidson Dealer, C.H. Lang of Chicago, IL, opens for business and sells one of the first three production Harley-Davidson motorcycles ever made.

1905- On July 4th, a H-D motorcycle wins a 15 mile race in Chicago with a time of 19:02. In Milwaukee, the first full-time employee is hired.

1906 – A new factory, measuring 28 x 80 feet, is built on the Chestnut St. site, later renamed Juneau Avenue. Staff size is increased to six full-time employees. Also, the first motorcycle catalog is produced by the Company and the nickname “Silent Gray Fellow” is used for the first time.

1907 – William A. Davidson, brother to Arthur and Walter Davidson, quits his job as tool foreman for the Milwaukee Road railroad and joins the Motor Company.

Harley-Davidson Motor Company is incorporated on September 17th. The stock is split four ways between the four founders, and staff size has more than doubled from the previous year to eighteen employees. Factory size is doubled as well. Dealer recruitment begins, targeting the New England region.

1908 – Walter Davidson scores a perfect 1,000 points at the 7th Annual Federation of American Motorcyclists Endurance and Reliability Contest. Three days after the contest, Walter sets the FAM economy record at 188.234 miles per gallon. Word of Harley-Davidson’s extremely tough motorcycle spreads rapidly.

The first motorcycle sold for police duty is delivered to the Detroit, MI, Police Department.

1909 – The six-year-old Harley-Davidson Motor Company introduces its first V-twin powered motorcycle. With a displacement of 49.5 cubic inches, the bike produces seven horsepower. The image of two cylinders in a 45-degree configuration would fast become one of the most enduring icons of Harley-Davidson history. Also available for the first time from the Motor Company are spare parts for motorcycles.

1910 – The famed “Bar & Shield” logo is used for the first time. It is trademarked at the U.S. Patent office one year later.

At least seven different first place finishes are captured at races, endurance contests and hillclimbs across America. All seven winners are riding Harley-Davidson® motorcycles.

1911 – The “F-head” engine becomes a workhorse of the Harley-Davidson motorcycle until 1929.

1912 – Construction begins on what will become the six story headquarters and main factory building at Juneau Ave. in Milwaukee. A separate Parts and Accessories Department is formed.

H-D exports motorcycles to Japan, marking the first ever sales outside of the U.S. Dealer network grows to over 200 nationwide.

1913 – The Racing Department is formed, with William Ottaway as its first Assistant Engineer to racing engineer William S. Harley. Also, the Forecar delivery van is offered for the first time.

1914 – Sidecars are made available to Harley-Davidson buyers. Clutch and brake pedals now available on F-head singles and twins.

The Motor Company formally enters motorcycle racing this year. The first Racing Engineer is William S. Harley. Within a few short years, team Harley-Davidson is referred to informally as the “Wrecking Crew” because of their incredible dominance of the sport.
The Two-Speed rear hub transmission is introduced for two years only in the Model 10F. Patented by William S. Harley, it was effective but discontinued in order to further improve drivetrain function in 1915 with a three-speed design.

1915 – Harley-Davidson motorcycles are now available with three speed sliding-gear transmissions with final and primary drive on the same side.

1916 – The Enthusiast begins its reign as the longest continuously published motorcycle magazine in the world.

1917 – During this year, roughly one-third of all Harley-Davidson motorcycles produced are sold to the U.S. military. The Quartermasters School, a department of Harley-Davidson devoted to training military mechanics on Harley-Davidson motorcycles, opens for business in July. It will later become the Service School.

The sale of Harley-Davidson bicycles begins. Individual components are made by the Davis Sewing Machine Co. of Dayton, Ohio. The bicycles are sold through the H-D dealer network.

1918 – Almost half of all Harley-Davidson motorcycles produced are sold for use by the U.S. military in World War I. At War’s end, it is estimated that the Army used some 20,000 motorcycles in their efforts, most of which were Harley-Davidsons. One day after the signing of the Armistice, Corporal Roy Holtz of Chippewa Falls, Wis., is the first American to enter Germany. He is riding a Harley-Davidson.

1919 – The 37 cubic inch opposed twin cylinder Sport model is introduced and gains great popularity overseas. Unique not only for the cylinder configuration, which was directly opposed and flat, the Sport quickly earns a reputation for being uncommonly quiet.

1920 – By 1920, Harley-Davidson is the largest motorcycle manufacturer in the world. New Harley-Davidson® motorcycles can be purchased from over 2,000 dealers in 67 countries worldwide.

Leslie “Red” Parkhurst breaks 23 speed records on a Harley-Davidson 61 cubic inch racing motorcycle. Also, the “hog” association starts when the racing team’s mascot, a pig, is carried on a victory lap after each race won by the team.

1922 – The first 74 cubic inch V-twin engine is introduced on the JD and FD models. Harley-Davidson dealerships are now found in sixty-seven countries.

Harley-Davidson riders sweep all eight National Championship races.

1925 – Gas tanks on all models now have a distinct teardrop shape. This basic appearance is set for all subsequent Harley-Davidson motorcycles.

Joe Petrali begins racing for Harley-Davidson. He would become one of the most successful dirt-track racers for Harley-Davidson, and one of the most successful racers of all time.

1926 – Single-cylinder motorcycles are again sold by Harley-Davidson for the first time since 1918. Models A, AA, B, and BA are available in side-valve and overhead-valve engine configurations.

1928 – The first Harley-Davidson two cam engine is made available to the public on the JD series motorcycles. The bike is capable of top speeds between 85 – 100 mph.

Front wheel brakes are now available on all Harley-Davidson motorcycles.

1929 – The 45 cubic inch V-twin engine (later to be known as the “flathead”) is introduced on the D model. The engine proves to be so reliable that variations of it are available on Harley-Davidson motorcycles as late as 1973.

1930 – Bill Davidson, Jr. wins the Jack Pine endurance contest with 997 points of 1,000. All individual class winners are riding Harley-Davidson® motorcycles.

1931 – All of Harley-Davidson’s remaining American competition is now gone except Indian (Hendee Manufacturing). Indian and Harley-Davidson are the only two American motorcycle manufacturers until 1953.

1932 – The 45 cubic inch-driven, three-wheeled Servi-car begins its 41 year run as a popular commercial and police vehicle.

In dirt track racing, Harley-Davidson racer Joe Petrali begins a five-year consecutive streak of winning the AMA Grand National Championship. Petrali also wins the National Hill-Climb Championships for 1932 to 1935.

1933 – An art-deco “eagle” design is painted on all gas tanks. This marks the beginning of graphic designs on Harley-Davidson motorcycles (with the exception of previously special order-only paint schemes). This styling decision was made in part to stimulate the low sales numbers caused by the Great Depression.

1935 – The Japanese motorcycle industry is founded as a result of Harley-Davidson licensing blueprints, tools, dies and machinery to the Sankyo Company of Japan. The result is the Rikuo motorcycle.

Joe Petrali and his Harley-Davidson peashooter win all thirteen of the American Motorcycle Association National Championship dirt track races. Petrali breaks four records in the process.

1936 – Harley-Davidson introduces the EL, an overhead valve, 61 cubic inch powered bike. With increased horsepower and bold styling changes, the motorcycle quickly earns the nickname of “Knucklehead,” due to the shape of its rocker boxes. The same year, the Motor Company introduces a 80 cubic inch side valve engine.

1937 – The first WL models are produced. Joe Petrali sets a new land speed record of 136.183 mph on a modified Harley-Davidson 61 cubic inch overhead valve-driven motorcycle. . The same day, he also breaks the record for 45 cubic inch engine motorcycles.

1938 – The Jack Pine Gypsies Motorcycle Club holds the first Black Hills Rally in Sturgis, SD.

On the 3.2 mile beach course at Daytona, FL, Ben Campanale wins the first of two consecutive victories at the Daytona 200 on a Harley-Davidson WLDR.

1940 – Babe Tancrede is the winner at the Daytona 200, riding a WLDR model.

1941 – America is plunged into World War II. Production of civilian motorcycles is almost entirely suspended in favor of military production. The Service School is converted back to the Quartermasters School for the training of military mechanics.

The FL series premieres.

1942 – Among other motorcycles made for the Army, H-D produces the unique XA 750, a motorcycle with horizontally opposed cylinders and shaft drive, designed for desert use. The contract is cancelled early due to war combat moving out of North Africa. Only 1,011 XA’s are built.

1943 – Harley-Davidson receives the first of its four Army-Navy “E” Awards for excellence in wartime production. Overseas, many American servicemen get their first exposure to Harley-Davidson motorcycles, something they would not forget when they would return stateside.

1945 – Harley-Davidson produces almost 60,000 WLA models during the war for military use. World War II ends. Wasting no time, production of civilian motorcycles resumes in November.

1946 – Harley-Davidson introduces the 45 cubic inch flathead WR racing motorcycle. It proves to be one of the best racing motorcycles ever built.

1947 – Attendees at the year’s Dealers Convention in Milwaukee are given a train ride to a “secret destination,” which turns out to be the newly purchased plant on Capitol Drive. The plant was formerly the A.O. Smith Propeller Plant, created during the war. Harley-Davidson uses the plant as a large machine shop, shipping the new parts to Juneau Ave. for final assembly.

Harley-Davidson begins selling what will become the classic black leather motorcycle jacket.

Harley-Davidson dirt track racer Jimmy Chann wins the first of three consecutive AMA Grand National Championships.

1948 – New features are added to the 61 and 74 overhead valve engines, including aluminum heads and hydraulic valve lifters. Also new are the one piece, chrome plated rocker covers shaped like cake pans. The nickname “Panhead” only seemed logical.

Production of American-made lightweight motorcycles begins with the model S. Various versions will be sold until 1966.

1949 – Hydraulic front forks first appear on the new Hydra-Glide models.

1950 – Larry Headrick wins the AMA Grand National Championship for Harley-Davidson in dirt track racing.

Harley-Davidson riders win 18 of 24 National Championships and set six new racing records.

1952 – The side-valve K model is introduced with an integrated engine & transmission to compete with smaller, sportier motorcycles coming mainly from Great Britain. The K will eventually evolve into the Sportster.

1953 – Harley-Davidson celebrates its 50th Anniversary in style. An attractive logo is created, depicting a “V” in honor of the engine which had brought the Company so far, with a bar overlaid reading “Harley-Davidson” and the words, above and below, “50 years–American made.” A medallion version of this logo is placed on the front fenders of the 1954 models.

Hendee Manufacturing, the creator of the Indian motorcycle, goes out of business. Harley-Davidson would be the sole U.S. motorcycle manufacturer for the next 46 years.

1954 – Dirt track racer Joe Leonard wins the AMA Grand National Championship. Over the next eight years, the Grand National Championship will be won by Harley-Davidson racers.

1955 – This year begins a seven-year consecutive run of victories at the Daytona 200. The victories will be shared by racers Brad Andres, Johnny Gibson, Joe Leonard and Roger Reiman. All ride Harley-Davidson KR models. Reiman’s victory in 1961 is on the new speedway course.

1956 – The new young star Elvis Presley poses for the cover of the MayEnthusiast sitting on a 1956 model KH.

1957 – The motorcycling public met a new motorcycle called the Sportster®. It premiers as a 55 cubic inch overhead valve engine, and within one year of its debut, becomes known as the first of the “Superbikes.” Another Harley-Davidson tradition and legend is born.

1958 – The first rear brakes and hydraulic rear suspensions appear on the Duo-Glide.

Racer Carroll Resweber wins the first of four AMA Grand National Championships.

1960 – The Harley-Davidson Topper motor scooter is introduced and is the only scooter platform the Motor Company ever produced.

Harley-Davidson purchases a half interest in Aeronatica-Macchi, forming Aermacchi Harley-Davidson, a European division that will produce small, single cylinder motorcycles.

In this year of Brad Andres’ 1st place finish at the Daytona 200, the top 14 finishers are also riding Harley-Davidson 750 KR models.

1961 – Introduction of the Sprint model.

1962 – Harley-Davidson purchases 60 percent of the stock in the Tomahawk Boat Manufacturing Company. H-D recognizes the rising relevance of fiberglass in motorcycle production, and begins manufacturing its own components. As a result, the Tomahawk Division is established and is operational as a Harley-Davidson facility by 1963.

1963 – Ralph White resumes the winning of the Daytona 200 for Harley-Davidson, again on a 750 KR motorcycle.

1964 – Roger Reiman wins the AMA Grand National Championship for Harley-Davidson. Reiman also scores the first of back-to-back Daytona 200 victories on a 750 KR.

The three-wheeled Servi-Car becomes the very first Harley-Davidson motorcycle to receive an electric starter.

1965 –The Electra-Glide® replaces the Duo-Glide and is updated with electric starter. The Electra-Glide is the first FL available with electric start, and the Sportster® line would receive electric starters soon after.

In a Streamliner powered by a 250cc Sprint CR racing engine, George Roeder shatters the speed records for Class A and Class C runs, averaging 177 miles per hour.

Harley-Davidson dirt track racer Bart Markel wins the AMA Grand National Championship in 1965 and 1966.

1966 – The first of the “Shovelhead” engines is introduced on the Electra-Glide models, replacing the Panhead.

1968 – Cal Rayborn wins the first of back-to-back victories at the Daytona 200 on a 750 KR model.

1969 – Harley-Davidson merges with the American Machine and Foundry Company (AMF), a longtime producer of leisure products.

Mert Lawill wins the AMA Grand National Championship for team Harley-Davidson in dirt track racing.

1970 – In consideration of new AMA rules for Class C racing, a new Sportster®-based motorcycle, the XR-750 racer is introduced.

1971 – In response to the customizing craze, Harley-Davidson introduces the FX 1200 Super Glide®, which combined a sporty front end (similar to that of the XL series) with the frame and powertrain of the FL series. A new class of motorcycle, the cruiser, is born.

First year of Harley-Davidson snowmobile production.

1972 – The new, more powerful, more reliable aluminum alloy XR-750 debuts. It becomes the dominant dirt track racer through the next three decades. Dirt track racer Mark Brelsford wins the AMA Grand National Championship on the XR-750 this year.

1973 – Motorcycle production is upgraded when all assembly operations are moved to a modern 400,000 square foot plant in York, Penn. All other production operations remain in Milwaukee and Tomahawk. The Capitol Drive plant in Milwaukee begins production of engines.

1975 – The first of four more consecutive years of Harley-Davidson AMA Grand National Championships in dirt track racing. Gary Scott wins in 1975. The following three years are won by racing legend Jay Springsteen.

1977 – Harley-Davidson introduces the FXS Low Rider® to the public in Daytona Beach. With drag style handlebars, unique engine and paint treatments, the Low Rider lives up to its name by placing the rider in a lowered seating position than was typical. Later in the same year, Willie G. Davidson’s dynamic version of the Sportster, the Cafe Racer, is released.

1979 – Introduction of the FXEF Fat Bob, “Fat” because of the dual gas tanks, “Bob” for the bobbed fenders.

1980 – Harley-Davidson debuts the FLT with its vibration dampening, rubber-isolated drivetrain and unique trailing front fork. The FLT also debutes an engine and five-speed transmission that are hard bolted together.

A kevlar belt replaces the chain as the final drive. The belt is cleaner running, and needs less adjustments and maintenance. It isn’t long before belt final drive is standard on all Harley-Davidson® motorcycles.

The AMA Grand National Championship in dirt track racing goes to yet another Harley-Davidson racer, Randy Goss.

In honor of the historic Sturgis motorcycle rally, Harley-Davidson releases the FXB Sturgis model, employing belt drive, black chrome appointments and 80 cubic inch engine.

The FXWG Wide Glide is introduced for the 1980 model year.

1981 – On February 26, thirteen Harley-Davidson senior executives sign a letter of intent to purchase Harley-Davidson Motor Company from AMF. By mid-June, the buyback is official, and the phrase “The Eagle Soars Alone” becomes a rallying cry.

Scott Parker begins racing for team Harley-Davidson on the AMA dirt track circuit. He will become the most successful racer in Harley-Davidson history, accumulating 93 career victories and, more incredibly, winning 9 Grand National Champion titles in a 10 year period.

1982 – More innovations demonstrate a new commitment to quality, such as the FXR/FXRS Super Glide® II with its rubber-isolated, five-speed powertrain and the welded and stamped frame for the new Sportster® models.

The top three finishers in the AMA Grand National Championship are Ricky Graham, Jay Springsteen and Randy Goss. This begins a two year run of dirt track Championship wins for Harley-Davidson. Goss takes the Championship in 1983.

The Materials As Needed (MAN) application is introduced to production. Generally, this means that parts and raw materials are purchased and built only as they are required. This dramatically lowers production costs and improves quality.

1983 – Harley-Davidson successfully petitions the International Trade Commission (ITC) for tariff relief, which is granted April 1, 1983. The tariff, scheduled to end five years later, is placed on all imported Japanese motorcycles 700cc or larger as a response to Japanese motorcycle manufacturers stockpiling inventories of unsold motorcycles in the United States.

One of Harley-Davidson’s most unique endeavors begins: Harley Owners Group®. Fondly referred to as H.O.G.®, the Group immediately becomes the largest factory-sponsored motorcycle club in the world. Within six years, H.O.G. membership soars to more than 90,000. By the year 2000, it exceeds 500,000 members.
Dirt track racer Randy Goss wins the AMA Grand National Championship this year.

1984 – Harley-Davidson unveils the 1340cc V²® Evolution® engine on five models including the all-new Softail®. The result of seven years of development, the Evolution engine produces more power at every speed, runs cooler, cleaner and is oil-tight. Also witnessed is the debut of the Softail design and its trend-setting method of “hiding” the motorcycle’s rear shock absorbers.

1986 – In another bold styling and engineering move, Harley-Davidson releases the Heritage Softail®.

The Motor Company is listed on the American Stock Exchange, the first time Harley-Davidson is publicly traded since 1969, the year of the AMF merger.

The Sportster® motorcycle line receives the Evolution V-twin engine.

To diversify its holdings, Harley-Davidson purchases Holiday Rambler Corporation, producer of quality motor homes.

1987 – Harley-Davidson is listed on the New York Stock Exchange.

Harley-Davidson makes both business and American history. H-D petitions the International Trade Commission for early termination of the five-year tariffs on heavyweight motorcycles. In effect, the move demonstrated confidence in H-D’s ability to compete in the marketplace.

Harley-Davidson begins the “Buy Back Program,” for the XLH 883 Sportster, which offers full trade-in value within two years on either a model FL or FX.

1988 – The springer front end returns in the FXSTS Springer® Softail®. Also introduced is the Sportster 1200. Harley-Davidson celebrates its 85th Anniversary with a Homecoming in Milwaukee, attended by over 60,000 enthusiasts.

The Harley-Davidson Traveling Museum hits the road, displaying memorabilia, classic Harley-Davidson motorcycles and the rich history of the Harley-Davidson rider.

Scott Parker wins the first of his nine AMA Grand National Championships. His total domination is unprecedented in the history of the sport of dirt track motorcycle racing.

1990 – Upon its introduction, the FLSTF Fat Boy® almost instantaneously becomes a modern legend of motorcycle design.

1991 – Installation of a $31 million state of the art paint facility begins at the York, PA, factory. It becomes fully operational in 1992.

The Dyna line of motorcycles debuts with the 1991 FXDB Dyna Glide Sturgis®.

1993 – Harley-Davidson celebrates its 90th Anniversary in Milwaukee with a Family Reunion. An estimated 100,000 people ride in a parade of motorcycles.

Harley-Davidson buys a minority interest in the Buell Motorcycle Company. Erik Buell created the Company to manufacture American sport motorcycles using Harley-Davidson® XL 883 and 1200 engines.

1994 – Harley-Davidson enters Superbike racing with the introduction of the VR1000, a dual overhead cam, liquid-cooled motorcycle.

The classically-styled FLHR Road King® is introduced.

1995 – The 30th Anniversary Ultra Classic® Electra Glide® becomes the first production Harley-Davidson motorcycle to include sequential port electronic fuel injection.
1996 – A new, state-of-the-art Parts and Accessories Distribution Center opens in Franklin, WI. By the beginning of 1997, all inventory is moved from the original warehouse at Juneau Avenue to the new 250,000-sq.-ft. facility.

1997 – A new 217,000-sq.-ft. Product Development Center opens next to the Capitol Drive plant in Milwaukee. The building is dedicated to Willie G. Davidson.

Powertrain Operations at Capitol Drive expanded its capacity by moving FL engine and transmission production to a newly purchased plant located in Menomonee Falls. XL engines and transmissions, as well as Genuine Parts Manufacturing, remain at Capitol Drive.

A new 330,000-sq.-ft. plant in Kansas City produces its first Sportster.

1998 – Harley-Davidson celebrates its 95th Anniversary. 140,000 plus riders are warmly received by Milwaukee to help with the celebration.

A new assembly facility opens in Manaus, Brazil, the first operations outside of the U.S.

Harley-Davidson buys a remaining 49% interest in Buell Motorcycle Company. Erik Buell is named Chairman of Buell operations.

1999 – The Touring and Dyna motorcycle families receive the new Twin Cam 88® engine.

2000 – The FXSTD Softail® Deuce™ is introduced to the immediate delight of riders and the motorcycle media.

The 2000 model year Softail® models are outfitted with the Twin Cam 88B™ engine, a counter-balanced version of the Twin Cam 88.

Fuel injection is unveiled as a feature new to the Softail line of motorcycles for the 2001 model year.

Buell introduces the Blast®, a single-cylinder motorcycle, for the 2000 model year. The Blast receives excellent reviews. It’s introduced in tandem with the Rider’s Edge® Academy of Motorcycling, a beginner’s rider course available through Harley-Davidson and Buell dealerships.

2001 – The VRSCA V-Rod® is introduced for the 2002 model year. Inspired by the VR-1000 racing motorcycle, the V-Rod is Harley-Davidson’s first motorcycle to combine fuel injection, overhead cams and liquid cooling, and delivers 115 horsepower.

Harley-Davidson Racing announces the latest addition to the team: 17 year old Jennifer Snyder, the first woman to win a national event in the Formula USA National Dirt Track Series.

Harley-Davidson announces expansions at the Product Development Center (Milwaukee), as well as Tomahawk, WI, and York, PA, facilities.

2002 – The all-new Buell® Firebolt® storms onto the scene.

The Open Road Tour debuts in Atlanta, GA, in July to celebrate the upcoming Harley-Davidson 100th Anniversary.

2003 – Buell Motorcycle Company unleashes the Lightning® XB9S.

More than 250,000 people come to Milwaukee for the final stop of the Open Road Tour and the Harley-Davidson 100th Anniversary Celebration and Party.

2004 – For the 2004 model year, the Sportster® family models receive rubber engine mounting, a new frame, and a wider rear tire. Some Sportster® models receive a redesigned gas tank.

The FLHRSI Road King® Custom is introduced. With its low rear suspension and wide handlebars, the FLHRSI brings a beach look to a classic Harley-Davidson motorcycle.

Andrew Hines of the Screamin’ Eagle®/Vance & Hines Harley-Davidson drag racing team clinches his first NHRA Powerade Pro Stock Motorcycle Championship at age 21, the youngest champion in NHRA history.

2005 – The XL 883L Sportster® 883 Low brings a lowered seating position to the Sportster® line.

The FLSTNI Softail® Deluxe adds a sleek look to the Softail® line and a paint scheme reminiscent of 1939 Harley-Davidson motorcycles. Also, the FLSTSC/I Softail® Springer® Classic revives looks from the late 1940s.

Andrew Hines wins his second straight NHRA Powerade Pro Stock Motorcycle Championship. G.T. Tonglet, also of the Screamin’ Eagle®/Vance & Hines Harley-Davidson team, places second.

Harley-Davidson and the Muscular Dystrophy Association (MDA) mark the 25th anniversary of their partnership.

2006 – The first of the 6-speed transmissions are made available on 2006 model year Dyna™ motorcycles. Also joining the Dyna™ family is the FXDB/I Street Bob™.

The 2006 model year includes the all-new FLHX/I Street Glide™, a lower profile touring motorcycle.

Harley-Davidson unveils plans for an all-new museum in Milwaukee, scheduled for opening in 2008.

Harley-Davidson appoints Beijing Feng Huo Lun (FHL) as the first authorized Harley-Davidson dealer on mainland China.

2007 – Eddie Krawiec joins the Screamin’ Eagle/Vance & Hines Harley-Davidson NHRA Pro Stock Team.

Kenny Coolbeth wins his second consecutive AMA Flat Track Twins Championship.

The XL 1200N Nightster arrives on the scene with black rims, fork gaiters, and side mount license plate holder.

Announced for the 2008 model year, the new FXCWC Rocker introduces Harley-Davidson’s first swingarm-mounted rear fender and 2-into-1 Trick seat.

2008 – The Touring family now has an all new frame, providing longer wheelbase, lower seating position and better maneuverability.

The all new Harley-Davidson Museum opens in Milwaukee on July 12. Located at 6th and Canal streets, the Museum showcases hundreds of classic and custom motorcycles, interactive exhibits and never-before-seen films and photographs.

In keeping with tradition, hundreds of thousands of riders from around the world converge on Milwaukee to celebrate Harley-Davidson’s 105th Anniversary. Riders and dealers raise more than $6.7 million for MDA. Entertainment includes the Foo Fighters and Bruce Springsteen. That same weekend, HOG marks 25 years with its own party.

Kenny Coolbeth clinches his third consecutive Grand National Championship. On the drag strip, Eddie Krawiec wins the fourth NHRA Pro Stock title for Harley-Davidson in five years.

2009 – Harley-Davidson announces expansion into India.

The AMA Flat Track team wins yet another Grand National Championship, this time with Jared Mees at the top.

The 2009 model year brings the first three-wheeler for public purchase in the new FLHTCUTG Tri Glide Ultra Classic. Also new is the history-inspired Cross Bones, a bobbed factory custom.

2010 – The XL Forty-Eight is introduced, recalling the raw, custom Sportsters of earlier days.

Seth Enslow on a Harley-Davidson XR1200 breaks the world record for a long distance motorcycle jump on a Harley-Davidson at 183.7 feet. Previously, the record was proudly held by Bubba Blackwell (1999) and Evel Kneivel (1975).

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Official Linux Cult Brand Profile

Linux brand lovers

Contents

Certified Cult Brand
We have tracked businesses with unprecedented brand loyalty since 2001. A Certified Cult Brand is a designation we hold for brands that fulfill specific market criteria, including upholding the Seven Rules of Cult Brands.

Linux Quick Stats

Linux is a leading server operating system, and runs the 10 fastest supercomputers in the world.

Linux powers 446 of the world’s top 500 supercomputers.

Google runs its web servers on Linux.

Any person or group distributing the Linux kernel must make the source code available to the recipient of the package.

$7.37 billion: projected cost to produce that amount of code in a commercial environment.

The federal government of Brazil favors Linux operating systems over all others in its PCs.

Interactive Data Corporation projects that Linux support sales will top $1 billion by 2012.

Linux Cult Brand Summary

As far back as the 1960s and the very beginning of the Internet, a sense of cooperation and brotherhood has always existed among computer programmers. However, as of 1990, computer geeks were still without a reliable and affordable operating system to “call their own.”

UNIX, widely used by engineers in universities and large corporations, was expensive to run and wasn’t intended for low-powered desktop machines. What were these frustrated programmers to do when they went home at night? In 1991, Linus Torvalds, a twenty-one-year-old college student, set out to change this picture and develop a “cheap alternative” to UNIX. In the summer of 1991, Torvalds posted version 0.01 of the kernel for a new, free, powerful operating system that he called Linux. Within very little time, programmers around the world started sending Torvalds snippets of code. Torvalds posted the source code in public view, and the programming community liked what they saw.

Today, Linux has millions of users around the world, and Torvalds is treated as a near-religious figure responsible for freeing a nation of engineers from their chains to sub-par operating systems.

The open source development process doesn’t discriminate. The best code always wins in the Linux nation, whether it comes from a fourteen-year-old kid in Buenos Aires or a fifty-year-old verteran programmer working for a major corporation. They know they will be judged by their peers by the quality of their work and their ideas, and not by their age, job title, background, or work experience.

In making Linux open source, Torvalds allowed its brand evangelists not only to make helpful suggestions, but to actually build it. They could see their thoughts and dreams in the form of lines of computer code being intertwined into the core of Linux. Piece by piece, they really were building an alternative to Windows.

Microsoft played right into the Linux movement’s hands, becoming the most visible representation of “the dark side.” In 2001, Microsoft CEO Steve Balmer stated that, “Linux is a cancer.” These types of public comments from the world’s largest software company only furthered the fervor and resolve of many open-source devotees. Every revolution needs a villain, and Microsoft’s critical public comments have only helped to unify the Linux brand.

By 1996, lively discussion had begun among open-source developers that the new operating system clearly needed to have its own mascot and logo. Ferocious animals like sharks, eagles, hawks, and foxes came up, but Torvalds hopped into the discussion and casually said to the open source community that he was rather fond of penguins.

A fun-loving penguin was the antithesis of the logos of other tech products: they were cold and corporate. The penguin screamed: We’re different! But Torvalds didn’t want just any penguin for the logo, he wanted one that “looked happy, as if it had just polished off a pitcher of beer and then had the best sex of its life.”

After Torvalds spoke his mind, and the Linux community agreed, an informal contest was held to select the exact penguin logo that Linux developers could rally behind. The eventual choice was a fun painting of a plump by content sitting penguin submitted by graphic artist Larry Ewing.

Today, the Linux Penguin appears in everything from IBM’s high profile campaigns to Linux T-Shirts, toys, and product packaging. The open source community has given the plump penguin its own name, Tux. The imaginary penguin is truly a star.

Linux Timeline

provided by http://www.linuxjournal.com/article/6000 and http://en.wikipedia.org/wiki/History_of_Linux

1983
The GNU Project, started by Richard Stallman, had the goal of creating a “complete Unix-compatible software system” composed entirely of free software.

April 1991
Linus Torvalds, a 21-year-old student at the University of Helsinki, Finland started working on some simple ideas for an operating system.

August 1991
“Hello everybody out there using minix – I’m doing a (free) operating system (just a hobby, won’t be big and professional like gnu) for 386(486) AT clones. This has been brewing since april, and is starting to get ready. I’d like any feedback on things people like/dislike in minix, as my OS resembles it somewhat (same physical layout of the file-system (due to practical reasons) among other things).I’ve currently ported bash(1.08) and gcc(1.40), and things seem to work. This implies that I’ll get something practical within a few months, and I’d like to know what features most people would want. Any suggestions are welcome, but I won’t promise I’ll implement them 🙂 Linus (PS. Yes – it’s free of any minix code, and it has a multi-threaded fs. It is NOT protable (uses 386 task switching etc), and it probably never will support anything other than AT-harddisks, as that’s all I have :-(.”

September 1991
Linux version 0.01 is released and put on the Net.

April 1992
The first Linux newsgroup, comp.os.linux, is proposed and started by Ari Lemmke.

October 1992
Peter MacDonald announces SLS, the first standalone Linux install. At least 10MB of space on disk was recommended.

June 1993
Slackware, by Patrick Volkerding, becomes the first commercial standalone distribution and quickly becomes popular within the Linux community.

August 1993
Matt Welsh’s Linux Installation and Getting Started, version 1 is released. This is the first book on Linux.

March 1994
The first issue of Linux Journal is published. This issue featured an interview with Linus Torvalds and articles written by Phil Hughes, Robert “Bob” Young, Michael K. Johnson, Arnold Robbins, Matt Welsh, Ian A. Murdock, Frank B. Brokken, K. Kubat, Micahel Kraehe and Bernie Thompson. Advertisers in the premier issue include Algorithms Inc., Amtec Engineering, Basmark, Fintronic (later became VA Research, VA Linux Systems, then…), Infomagic, Prime Time Freeware, Promox, Signum Support, SSC, Trans Ameritech, USENIX, Windsor Tech and Yggdrasil.

Linux 1.0 is released.

June 1994
While at a conference in New Orleans, Jon “maddog” Hall persuades Linus to port Linux to DEC’s 64-bit Alpha computer processor chip. Less than two weeks later, maddog had also persuaded DEC to fund the project. An Alpha workstation was immediately sent to Linus. “Digital [DEC] and the Linux community formed the first truly successful venture of suits and Linux geeks working together”, said maddog.

Linux International, a nonprofit vendor organization, is founded by Jon “maddog” Hall. Linux International goes on to become a major contributor to the success of Linux, helping corporations and others work toward the promotion of the Linux operating system.

August 1994
Linux trademark dispute: is Linux trademarked? William R. Della Croce, Jr. files for the trademark “Linux” on August 15, 1994, and it is registered in September. Della Croce has no known involvement in the Linux community yet sends letters out to prominent Linux companies demanding money for use of the trademark “Linux”. A lawsuit is filed in 1996 against Della Croce. Plai.pngfs in the suit include Linus Torvalds; Specialized Systems Consultants, Inc. (publishers of Linux Journal); Yggdrasil Computing, Inc.; Linux International; and WorkGroup Solutions (also known as LinuxMall). The plaintiffs prevail, and in 1997 announce the matter as settled by the assignment of the mark to Linus Torvalds on behalf of all Petitioners and Linux users.

September 1994
Linux is first mentioned in the mainstream press. Wiredmagazine features an article titled “Kernel Kid”, by Seth Rosenthal. He writes: “So, is Linus going to become the Bill Gates of Finland? Maybe not. He claims to be ‘by no means a good student’ and is in no hurry to graduate since ‘Linux has taken a lot of time from my studies, and I like the work I have at the University which keeps me alive.”’

Randolph Bentson reports on the world’s first vendor-supported Linux device driver in Linux Journal. Cyclades gave him a multiport serial card in exchange for developing a Linux driver for it.

December 1994
A major tradeshow and conference take notice of Linux. Open Systems World features a Linux track, hosted by Linux Journal. Two days of seminars include Eric Youngdale, Donald Becker, Dirk Hohndel, Phil Hughes, Michael K. Johnson and David Wexelblat as speakers.

April 1995
Linux Expo, the first Linux-specific tradeshow and conference series, launches, thanks to the folks at North Carolina State University and in particular, Donnie Barnes. Speakers include Marc Ewing, Rik Faith and Michael K. Johnson, among others. Linux Expo snowballs and becomes the most popular and well-attended annual Linux show for the next several years (after three years Red Hat takes over organization and becomes the major sponsor). The price for entry into the exhibit hall and a pass to the conferences? $4.

January 1997
First “Linux virus” discovered. Called Bliss, it actually works on any UNIX-like OS and offers a helpful—“bliss-uninfect-files-please” command-line option. Alan Cox points out that Bliss “does not circumvent the security of the system, it relies on people with privilege to do something dumb” and reminds users to install digitally signed software from trustworthy sites only and to check signatures before installing.

“In fact it’s probably easier to write a virus for Linux because it’s open source and the code is available. So we will be seeing more Linux viruses as the OS becomes more common and popular.” —Wishful thinking from McAfee

January 1998
Linux Weekly News begins publication with Jonathan Corbet and Elizabeth Coolbaugh as founders. The very first issue, dated January 22, was just a tiny hint of what LWN was to become.

Netscape announces that they will release the source to their browser under a free software license. This almost certainly remains one of the most important events of the year; it opened a lot of eyes to what Linux and free software could provide.

Red Hat Advanced Development Labs (RHAD) is founded. It has since become one of the higher-profile places where people are paid to develop free software and an important component of the GNOME Project. RHAD is able to attract developers like “Rasterman” (although only for a short time) and Federico Mena-Quintero.

February 1998
The Cobalt Qube is announced and immediately becomes a favorite in the trade press due to its high performance, low price and cute form factor. Cobalt’s Linux engineering is done by none other than David Miller, the source of much that is good in the Linux kernel.

The Linux user community wins InfoWorld’s technical support award; Red Hat 5.0 also won their Operating System award. But it was the tech support award that truly opened some eyes; everybody had been saying that Linux had no support. This was the beginning of the end of the “no support” argument.

Eric Raymond and friends come up with the term “open source”. They apply for trademark status and put up the opensource.org web site. Thus begins the formal effort to push Linux for corporate use.

March 1998
Consumer advocate Ralph Nader asks the large PC vendors (Dell, Gateway, Micron, etc.) to offer non-Microsoft systems, including systems with Linux installed.

April 1998
Linux is covered by the US National Public Radio news, marking one of its first appearances in the mainstream, nontechnical press.

O’Reilly holds the “first ever” Free Software Summit, featuring Larry Wall, Brian Behlendorf, Linus Torvalds, Guido van Rossum, Eric Allman, Phil Zimmermann, Eric Raymond and Paul Vixie.

May 1998
The Google search engine pops up. Not only is it one of the best search engines around, but it’s based on Linux and features a Linux-specific search page.

Big databases start to arrive. Support for Linux is announced by Computer Associates for their Ingres system and by Ardent Software for their O2 object database.

June 1998
“Like a lot of products that are free, you get a loyal following even though it’s small. I’ve never had a customer mention Linux to me.” —Bill Gates, PC Week, June 25, 1998
“…these operating systems will not find widespread use in mainstream commercial applications in the next three years, nor will there be broad third-party application support.” —The Gartner Group says there is little hope for free software.

A Datapro study comes out showing that Linux has the highest user satisfaction of any system; it also shows Linux to be the only system other than Microsoft Windows NT that is increasing its market share.

IBM announces that it will distribute and support the Apache web server after working a deal with the Apache team.

July 1998
The desktop wars rage as KDE and GNOME advocates hurl flames at each other. Linus gets in on the act, saying that KDE is okay with him. In this context, KDE 1.0 is released. The first stable release of the K Desktop Environment proves to be popular, despite the complaints from those who do not like the licensing of the Qt library.

Informix quietly releases software for Linux. Meanwhile, Oracle beats Informix to the punch PR-wise and makes a Linux-friendly announcement first, suggesting that they would soon be supporting Linux. Oracle promises to make a trial version available by the end of 1998, a deadline they beat by months. This, seemingly, was one of the acid tests for the potential of long-term success for Linux; a great deal of attention resulted from both Informix’s and Oracle’s announcements.

Informix announces support for Linux effectively moments after Oracle does so. Sybase later announces their support for Linux also.

Linus appears on the cover of Forbes magazine. A lengthy story presents Linux in a highly positive manner and brings the system to the attention of many who had never heard of it before. Linux begins to become a household word.

September 1998
LinuxToday.com is launched by Dave Whitinger and Dwight Johnson. The site, later acquired by Internet.com, arguably becomes the most well-read and visited Linux portal of all time.
Microsoft’s Steve Ballmer admits that they are “worried” about free software and suggests that some of the Windows NT source code may be made available to developers. The same month Microsoft goes on to list Linux as a competitive threat in its annual SEC (US Securities and Exchange Commission) filing. Speculation abounds that their real purpose is to influence the upcoming antitrust trial.

October 1998
“For the moment, however, the company from Redmond, Washington, seems almost grateful for the rising profile of Linux, seeing it as an easy way of demonstrating that Windows is not a monopoly, ahead of its antitrust trial, scheduled to begin on October 15. That may be short-sighted. In the long run, Linux and other open-source programs could cause Mr. Gates much grief.” —The Economist, October 3, 1998

Intel and Netscape (and two venture capital firms) announce minority investments in Red Hat Software. The money is to be used to build an “enterprise support division” within Red Hat. An unbelievable amount of press is generated by this event, which is seen as a big-business endorsement of Linux.

Corel announces that WordPerfect 8 for Linux will be downloadable for free for “personal use”. They also announce a partnership with Red Hat to supply Linux for the Netwinder.

December 1998
A report from IDC says that Linux shipments rose by more than 200% in 1998, and its market share rose by more than 150%. Linux has a 17% market share and a growth rate unmatched by any other system on the market.

January 1999
“Microsoft Corp. will shout it out to the world when Windows 2000 finally ships. Linux creator Linus Torvalds announced the arrival of the next generation of Linux, version 2.2, with a simple note to the Linux-kernel mailing list.” —Steven J. Vaughan-Nichols, Sm@rt Reseller
Samba 2.0 is released. It contains a reverse-engineered implementation of the Microsoft domain controller protocols, allowing Linux servers to provide complete services to Windows networks.
Hewlett-Packard and Compaq announce plans to offer Linux-based systems. Later, Dell also announces plans to begin selling Linux-installed systems. SGI contents itself with providing information on how to bring up Linux on its systems.

Loki Entertainment Software announces that it will port Civilization: Call to Powerto Linux.

February 1999
Linux and BSD users unite for “Windows Refund Day”. They visit Microsoft, hoping to return the unused Windows licenses that they were forced to acquire when they purchased a computer system bundled with the OS.

March 1999
“Like a Russian revolutionary erased from a photograph, he is being written out of history. Stallman is the originator of the Free Software movement and the GNU/Linux operating system. But you wouldn’t know it from reading about LinuxWorld (Expo). Linus Torvalds got all the ink.” —Leander Kahney, Wired magazine, March 1999

The first LinuxWorld Conference and Expo is held in San Jose, California. As the first big commercial “tradeshow” event for Linux, it serves notice to the world that Linux has arrived; 12,000 people are said to have attended.

Linux Magazine debuts, bringing some additional competition to the Linux print business. Later, other magazines rise and fall including Open, Journal of Linux Technology (JOLT) and Maximum Linux.

VA Research buys the Linux.com domain for $1,000,000 and announces plans to turn it into a Linux portal. Microsoft’s rumored bid for the domain is frustrated.

April 1999
“…please imagine what it is like to see an idealistic project stymied and made ineffective because people don’t usually give it the credit for what it has done. If you’re an idealist like me, that can ruin your whole decade.” —Richard Stallman on GNU/Linux

Al Gore’s presidential campaign web site claims to be open source. That claim is gone, but the site still claims: “In the spirit of the Open Source movement, we have established the Gore 2000 Volunteer Source Code Project;www.algore2000.com is an ‘open site’.“

HP announces 24/7 support services for the Caldera, Turbolinux, Red Hat and SuSE distributions. They also release OpenMail for Linux.

The Linux FreeS/WAN Project releases a free IPSec implementation, allowing Linux to function as a VPN gateway using what is now the industry standard.

“But the mere fact that there is now an official SEC document that includes the text of the GPL serves as fairly astonishing proof that the rules of the software business really are being rewritten.” —Andrew Leonard, Salon

May 1999
“Those two little words—open source—have become a magical incantation, like portal in 1998 or push in 1997. Just whisper them and all will be yours: media attention, consumer interest and, of course, venture capital.” —Andrew Leonard,Wired

August 1999
First Intel IA-64 “Merced” silicon. Although Intel had given simulators to several OS vendors, Linux is the only OS to run on the new architecture on its first day. The Register headline: “Merced silicon happens: Linux runs, NT doesn’t”.

SGI announces the 1400L—a Linux-based server system. SGI also announces a partnership with Red Hat and begins contributing to kernel development in a big way.

Red Hat’s initial public offering happens; a last-minute repricing helps to create difficulties for people participating in the community offering. The stock price immediately rises to $50; a value that seems high at the time.

“For the umpteenth time, someone paved paradise, put up a parking lot. For the thousands of Linux coders who’ve built the utopian open-source movement—offering free help to create a free operating system—the IPO of Red Hat Software was a sure sign of Wall Street cutting the ribbon on the new Linux mall.” —The Industry Standard

Motorola jumps into Linux announcements of embedded systems products, support and training services, and a partnership with Lineo.

Sun acquires StarDivision; it announces plans to release StarOffice under the Sun Community Source License and to make a web-enabled version of the office suite.

September 1999
“’Burlington Coat Factory Warehouse Corp. in Burlington, New Jersey is spending $1 million or so to buy 1,250 Linux-equipped PCs from Dell, but it won’t pay Red Hat a dime for support’, says Michael Prince, chief information officer. ‘I suppose Red Hat’s business model makes sense to somebody, but it makes no sense to us’, he says.” —Daniel Lyons, Forbes, May 31, 1999. Then in September, Burlington ended up purchasing support from Red Hat.

The first big Linux stock rush happens. Shares in Applix more than double in volume, reaching nearly 27 million shares—three times the 9 million shares that are actually on the market.
SCO trashes Linux in a brochure distributed in Northern Europe: “Linux at this moment can be considered more a plaything for IT students rather than a serious operating system in which to place the functioning, security and future of a business. Because Linux is basically a free-for-all it means that no individual person/company is accountable should anything go wrong, plus there is no way to predict which way Linux will evolve.”

Stock in Red Hat hits $135/share. The price seems unbelievably high at the time.

October 1999
Sun Microsystems announces that it will release the source to Solaris under the Sun Community Source License. The actual release drew criticism: “In a move aimed at Linux, Sun said it will announce Wednesday that it is making the source code for its new Solaris 8 operating system ‘open’. Webster’s has lots of definitions for the word, including ‘not sealed, fastened, or locked’. But when you dig into the details of Sun’s announcement, you’ll find that what it is offering doesn’t come close to meeting the dictionary’s definition, let alone that of the Open Source movement.” —Lawrence Aragon, Redherring.com, January 26, 2000

November 1999
“…if there’s one thing about Linux users, they’re do-ers, not whiners.” —Andy Patrizio,
Red Hat buys Cygnus for almost $700 million in stock. Rumors of other acquisitions by Red Hat begin to circulate and show no signs of stopping.

December 1999
VA Linux Systems goes public after two repricings (originally priced at $11-$13/share). The final IPO price is $30/share; that price rises immediately to $300 before closing around $250. It sets the record for the biggest IPO rise in the history of the NASDAQ.
“Gee. Remember when the big question was ‘How do we make money at this?”’ —Eric Raymond

January 2000
VA Linux Systems announces SourceForge (although the site had actually been up and running since November 1999). SourceForge also makes the code for its operation available under the GPL. By the end of the year, SourceForge hosted over 12,000 projects and 92,000 registered developers.

Version 1.0 of Red Flag Linux is released in the People’s Republic of China.
Transmeta breaks its long silence and tells the world what it has been up to—the Crusoe chip, of course.

The Linux Professional Institute announces the availability of its first Linux professional certification exam.

Linux wannabe press releases flow from companies trying to ride on the success of Linux stocks. Vitamins.com, for example, posts the following: “Vitamins.com has further distinguished itself in the competitive Internet health industry race by being one of the first to integrate the Linux Operating System, produced by Red Hat, the leading developer and provider of open-source software solutions.”

February 2000
The latest IDC report suggests that Linux now ranks as the “second-most-popular operating system for server computers”, with 25% of the server operating system sales in 1999. Windows NT is first with 38% and NetWare ranks third with 19%. IDC previously predicted that Linux would get up to the number two position—in 2002 or 2003. The revolution appears to be well ahead of schedule.

VA Linux Systems acquisition of Andover.net in a high-profile purchase that values Andover shares at 0.425 of VA’s, or roughly $50/share. Andover.net is the owner of the popular web sites Slashdot.org and Freshmeat.org.

LinuxMall.com and Frank Kaspar and Associates also have made plans to merge. LinuxMall.com has been at the top of the retail side of Linux almost since the very beginning; Kaspar is one of the largest distribution channels.

Red Hat wins InfoWorld’s “Product of the Year” award for the fourth time in a row.

March 2000
“The law in open code means that no actor can gain ultimate control over open-source code. Even the kings can’t get ultimate control over the code. For example, if Linus Torvalds, father of the Linux kernel, tried to steer GNU/Linux in a way that others in the community rejected, then others in the community could always have removed the offending part and gone in a different way. This threat constrains the kings; they can only lead where they know the people will follow.” —“Innovation, Regulation, and the Internet” by Lawrence Lessig for The American Prospect.

A new version of LILO is posted that is able to get past the 1024-cylinder boot limit that has plagued PC systems for years.

The latest Netcraft survey shows Apache running on just over 60% of the Web.
Caldera Systems goes public after a short delay, on March 21. The stock, which was offered at $14/share, began trading at $26 and closed at $29.44. It thus registered a 110% gain on its first day.

“Caldera knows of no company that has built a profitable business based in whole or in part on open-source software.” —Caldera SEC filing

Walnut Creek (the parent company for Slackware) and BSDi announce their merger. Yahoo! will be taking an equity investment in the new company.

Motorola Computer Group announces the release of its HA Linux distribution. This distribution is aimed at telecommunications applications that require very high amounts of uptime; it includes hot-swap capability and is available for the i386 and PowerPC architectures.

The Embedded Linux Consortium is announced. Its goal is “to amplify the depth, breadth and speed of Linux adoption in the enormous embedded computer market”. The initial leader will be Rick Lehrbaum, the man behind the LinuxDevices.com and DesktopLinux.com web sites, among other things.

Ericsson announces its “Screen Phone HS210” product—a Linux-based telephone with a touchscreen that can be used for e-mail, web browsing, etc. Ericsson and Opera Software also announce that Ericsson’s (Linux-based) HS210 Screen Phone will incorporate the Opera web browser.

April 2000
Code is ruled to be speech. On April 4, 2000, the United States Court of Appeals for the Sixth Circuit published its decision regarding Peter Junger’s challenge to the Export Administration Regulations that prevented him from posting information on the Internet that contained cryptographic example code. Most critical in the ruling: “Because computer source code is an expressive means for the exchange of information and ideas about computer programming, we hold that it is protected by the First Amendment.”

Andy Tanenbaum releases the the Minix operating system under the BSD license. Had Minix been open source from the beginning, Linux may never have happened.

May 2000
SuSE releases the first supported Linux distribution for the IBM S/390 mainframe.

“Approximately 140 distribution companies exist across the globe. We believe all but the top five will be bought, will go out of business or will be relegated to insignificance. Market-share leaders are currently defined around geographic boundaries. Red Hat has the largest global brand recognition and leading North American market share; SuSE leads in Europe, Turbolinux leads in Asia, and Conectiva leads in South America.” —Keith Bachman, an analyst for WR Hambrecht, predicting in The Red Herring

June 2000
Commercial considerations help prompt the relicensing of MySQL under the GPL. Now the two freely available databases that are widely used in the Linux and Free Software communities, PostgreSQL and MySQL, meet the Debian Free Software Guidelines and the Open Source Guidelines. In addition, Progress Software forms a new company, NuSphere, just for the purpose of supporting MySQL.

July 2000
“In a world of NDA-bound business agreements, Debian is an open book. In a world of mission statements, Debian has a social contract. At a time when commercial distributors are striving to see how much proprietary software they can pack into a box of Linux, Debian remains the bastion of software freedom—living proof that you can have a fully functional and usable operating system without needing any proprietary code.” —Evan Leibovitch, ZDNet
Sun announces that StarOffice is to be released under the GPL. The code is going to be reworked, integrated with Bonobo and GTK, and released as a set of reusable components. StarOffice will also be reworked to use a set of open XML-based file formats.

Oracle’s Linux-based internet appliance system hits the shelves. The “New Internet Computer” (NIC) is the latest result of Larry Ellison’s long personal crusade to make non-Microsoft systems available to the world. It’s aimed at people who only want access to the Net; as such, it’s essentially a $199 (without monitor) X terminal.

Reports first appear that SCO may be purchased by Caldera. Later in 2000 Caldera and SCO announce their intent for Caldera International to be formed from Caldera’s existing operation and two of SCO’s three divisions.

Ted Ts’o steps forward to become the new 2.4 status list maintainer. Alan Cox was doing the job until he said that it was time to “find someone else to maintain it”. Ted Ts’o responded to Linus’ subsequent call for a new status list maintainer.

August 2000
HP, Intel, IBM and NEC announce the “Open Source Development Lab”, which makes large hardware available to Linux developers for benchmarking and testing.

September 2000
“I’m a bastard. I have absolutely no clue why people can ever think otherwise. Yet they do. People think I’m a nice guy, and the fact is that I’m a scheming, conniving bastard who doesn’t care for any hurt feelings or lost hours of work if it just results in what I consider to be a better system.” —Linus Torvalds trying to change his image.

The RSA patent expires, allowing for secure web transactions without proprietary software.
Trolltech releases the Qt library under the GPL, putting a definitive end to a long-running and unpleasant license flame war.

The CueCat fiasco begins. Digital Convergence attempts to shut down programmers who have written Linux drivers for its CueCat bar code scanner. The company has given out large numbers of these scanners for free, expecting people to use them with its proprietary software and web site. The threats cause the drivers to become marginally harder to find for a short period, after which the company declares victory and moves on.

October 2000
Microsoft says that penguins can mutate in a European print ad that quickly becomes famous.

December 2000
“I was dumbfounded to discover that installing Linux was easy. Why? Well, the world has changed. No more do you have to understand everything about Linux before you install it, downloading the many chunks of code necessary to run a complete system and getting them all to work together. That was BSW—before shrink-wrap. With companies such as Red Hat and Corel putting all the software you need in a box, the pain is (nearly) gone.” —John Schwartz, Washington Post

IBM announces plans to invest $1 billion in Linux in 2001.

January 2001
The long-awaited 2.4.0 kernel was released on January 4.

The US National Security Agency (NSA) releases SELinux under the GPL. SELinux offers an additional layer of security checks in addition to the standard UNIX-like permissions system.

March 2001
The Linux 2.5 kernel summit is held in San Jose, California; it is, perhaps, the most complete gathering of Linux kernel hackers in history.

April 2001
IBM gets into trouble over its “Peace, Love and Linux” graffiti in several cities.
“Slackware has always made money (who else producing a commercial distribution can say that?), but with BSDi we ended up strapped to a sinking ship.” —Patrick Volkerding

May 2001
Sony’s PlayStation Linux kit, shipped in Japan, sells out in eight minutes despite a doubling of the available stock.

June 2001
Sharp announces its upcoming Linux PDA based on Lineo’s Embedix system.
VA Linux Systems exits the hardware business, choosing to focus on SourceForge instead. Later VA drops the word “Linux” from its name altogether, relaunching as VA Software Corporation.

“In a press release issued Wednesday afternoon, VA Linux CEO Larry M. Augustin called the shift in strategy a logical move. ‘Our differentiating strength has always been our software expertise’, Augustin said”. —Wired. You only thought VA was a hardware company.

July 2001
Free Dmitry! Dmitry Sklyarov is arrested in Las Vegas after Adobe complains about the Advanced eBook Processor. The following month he is charged with DMCA violations and conspiracy: the potential penalties add up to 25 years in prison. Dmitry’s defense is based on constitutional challenges to the DMCA, on free speech and jurisdictional issues. Later in the year, charges are dropped, conditional on one year of good behavior and testimony in the ElcomSoft trial.

“Although Adobe withdrew its support for the criminal complaint against Dmitry Sklyarov, we respect the grand jury and federal government’s decision to prosecute the company, ElcomSoft, and as a law-abiding corporate citizen, Adobe intends to cooperate fully with the government as required by law.” —Adobe’s position

November 2001
Sharp Electronics Corporation begins a special Linux developer prerelease of the Zaurus PDA to attract free software developers to the hot new platform.

February 2002
Avaya, the former PBX and enterprise systems division of Lucent, announces Linux-based PBX systems.

“So there are some—and I’d list myself among them—who believe that the return to Earth is a good thing. There’s nothing wrong with making a buck, but Linux doesn’t benefit from being elevated beyond reality on a shaky foundation.” —Evan Leibovitch takes a look at the post-rush world of Linux.

2005:
The project openSUSE begins a free distribution from Novell’s community. Also the project OpenOffice.org introduces version 2.0 that now supports OASIS OpenDocument standards in October.

2006:
Oracle releases its own distribution of Red Hat. Novell and Microsoft announce a cooperation for a better interoperability.

2007: Dell starts distributing laptops with Ubuntu pre-installed in them.

July 2011
Linus Torvalds announced the release of Linux 3.0: Gone are the 2.6. days .The version bump is not about major technological changes comparing to Linux 2.6.39, it marks kernel 20 years anniversary.

Related Linux Videos

History of linux by the linux foundation.

Why Linux is awesome

Linux Sets You Free

Images by Linux Brand Lovers

Linux-Tattoo-10 Linux-Tattoo-9 Linux-Tattoo-8 Linux-Body-Paint Linux-Tattoo-7 Linux-Tattoo-5 Linux-Tattoo-4 Linux-Tattoo-3 Linux-Tattoo-2 Linux-Tattoo-6 Linux-Tattoo-1

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http://www.linux.com/
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http://www.marksanborn.net/linux/50-reasons-why-i-love-linux/

Browse Cult Brands

Official Vans Cult Brand Profile

Vans Cult Brand Profile Header

 

Certified Cult Brand
We have tracked businesses with unprecedented brand loyalty since 2001. A Certified Cult Brand is a designation we hold for brands that fulfill specific market criteria, including upholding the Seven Rules of Cult Brands.

Vans Cult Brand Summary

While Vans is today known as a symbol of alternative sports like skateboarding and snowboarding, the company didn’t start out this way. The original dream of Paul Van Doren and his family was simply to manufacture shoes and sell them directly to the public, which he did when the Vans opened its first small shop in 1966.

Then in the mid-seventies, Southern California skateboarders started wearing Vans shoes. Unlike any other shoe manufacturer at the time, Vans accepted these customers and began catering to the desires and needs of the, then, renegade skateboarding crowd. In fact, Vans was the first shoe company to start paying well-known skateboarders to wear its shoes.

Vans took skateboarders—consumers that in the seventies were treated like lepers by the rest of corporate America—and celebrated them as champions. Vans preached to the choir and listened to the response. They understood that skaters not only wanted shoes that looked “one of a kind” but that actually were one of a kind. Vans collaborated with its customers by going into the custom shoe business after receiving numerous requests for funky-looking custom shoes from Southern California skaters.

Today, Vans continues to stick to its inclusive message by actively seeking out and implementing new product ideas from the dozens of “core sports” athletes the company sponsors.

Even though Vans was embraced by skaters, it wasn’t easy growing and rewarding its customers on the shoestring budget they had when they opened. Vans put together a team of skateboarders that traveled around the schools in Southern California, putting on safety shows about skateboarding. At the time, parents were rightly concerned about the apparent safety risks involved with the new sport. Vans put on the safety shows for two reasons: to give back to its community and to prime its young customer base and their parents for future Vans’ shoe sales.

It’s no accident that Vans sponsors and organizes dozens of extreme sports events each year. It knows that this is the best way to connect with customers. For many teenagers and young adults, an activity like skateboarding is their passion. After all, what is more liberating for a teenager than hopping onto a skateboard and riding for a few minutes each day without having to worry about chores, homework, or even parental control?

For a teenager, a skateboard is temporary escapism and self-fulfillment on four wheels and some wood. With this in mind, Vans has gone out of its way to sponsor and promote activities like concerts and sport events that appeal to the extreme sports and skateboarding set. As Vans CEO Gary Schoenfeld told Inc. magazine, “Kids don’t relate to direct hard-sell advertising. They see through a company that’s just spending a lot of money to attract their attention. Our strategy is to ingratiate ourselves more into their lifestyle.”.

In addition to developing high-profile events for its customers like the Vans Triple Crown and the Vans Warped Tour, Vans has also begun building and operating its own skateboard parks, each filled with thousands of square feet of space for both skateboards and BMX bikers of all skill levels. Vans uses the parks to continue to build an environment of collaboration and openness: Vans takes input from its customers about what it’s doing right, what it’s doing wrong, and how it can improve.

Of course, each Vans-branded park also includes a retail shop with Vans shoes and merchandise. These parks give the people at Vans a unique way to weave their products into the regular activities of their customers.

Vans Timeline

  • 1966 — Paul Van Doren and three partners open up the first Vans shoe store
  • 1970 — Skateboarders all around South California can be seen sporting Vans shoes
  • 1975- Vans creates the #95, known as the Era today
  • 1979 — Vans introduce the #45 shoe, with the help of BMX riders and skaters the slip-on shoe’s become incredibly popular in South California
  • 1980 — By the end of the 1970’s, Vans had over 70 stores across the state of California
  • 1980- Paul Van Doren begins to take a lesser role in the companies activities
  • 1982 — Vans slip-on shoe’s gain national appeal when they are worn by the iconic actor Sean Penn in the film “Fast times at Ridgemont High”
  • 1983 — Despite wild popularity and excellent sales, the wide range of shoes being sold depleted their resources and the debt forced Vans into bankruptcy.
  • 1986 — Vans pays back all of its creditors and emerges from bankruptcy
  • 1988 — Vans sells out to an investment banking firm (since then vans has been sold several times the most recent time being for $356 million in 2004 to Greensboro, N.C.-based VF Corp.)
  • 1994 — Vans closes their main factory in Orange, California and begin manufacturing over seas
  • 1994- Vans sponsors the Inaugural Triple Crowns Series which will eventually form into the Vans Triple Crowns Series
  • 1998 — Vans opens a 48,000 square foot indoor/outdoor skate park at the block in Orange County
  • 2000/2001 — Forbes magazine recognizes Vans as “America’s best small companies”
  • 2002 — Vans opens a indoor skate park in Festival Bay mall in Orlando Florida
  • 2004 — Vans creates Vans Customs allowing people log on to their website and create their own custom Vans shoe.

Presentations about Vans as a Brand

Archetypal Branding: Cult Branding 2.0

The Power of Your Brand Lover

An Introduction to Cult Branding – the truth behind customer loyalty!

Browse Cult Brands

Cult Brand Profiles

Which companies have “Cult Brand” status?

There are many weak brands and Average Joe brands out there. There are even numerous iconic brands in the world, which most other companies aspire to.

But few brands ever develop a deep, penetrating relationship with their customers. Few brands truly win the hearts of their customers, which breeds authentic customer loyalty. Few brands ever adhere to the Seven Rules that define Cult Brands.

We present you with profiles of eleven of the world’s greatest Cult Brands.


Apple Cult Brand ProfileApple Cult Brand Profile

Apple Computers is the epitome of self-empowerment and self-fulfillment combined in one brand. How else to describe a Cult Brand whose original slogan for the Macintosh was, “the computer for the rest of us”?

Oprah Cult Brand ProfileOprah Cult Brand Profile

It’s hardly an accident that Oprah Winfrey has maintained such a fervently steadfast and devoted fan base during her career. She has used her talk show as a daily platform for holding heart-to-heart discussions with her audience.

Harley Davidson Cult Brand ProfileHarley Davidson Cult Brand Profile

To say that Harley had fallen on hard times by 1981 would be a drastic understatement. Japanese companies were destroying the company on pricing and Harley-Davidson’s bikes had lost the quality that made them famous.

Jimmy Buffett Cult Brand ProfileJimmy Buffett Cult Brand Profile

When an unknown Jimmy Buffett moved to Nashville in 1969 to take his shot at making it in the music business, he was not embraced with open arms.

IKEA Cult Brand ProfileIKEA Cult Brand Profile

People are camping outside. Traffic jams are so severe that highway exits must be shut down. Traffic lights are rendered useless requiring police to direct traffic. Is it a new Star Wars film? No, it’s the opening of a new Ikea store.

Linux Cult Brand ProfileLinux Cult Brand Profile

In 1991, Linus Torvalds, a twenty-one-year-old college student, set out to change this picture and develop a “cheap alternative” to UNIX.

Southwest Airlines Cult Brand ProfileSouthwest Airlines Cult Brand Profile

In the wake of September 11th, airlines suffered a major setback. Even after a $15 dollar attempt by the government to save airlines, American, Delta, and United collectively lost $4 billion; the major airlines laid off 16% of their workforce.

Star Trek Cult Brand ProfileStar Trek Cult Brand Profile

Star Trek creator Gene Roddenberry couldn’t have been further away from fitting the mold of the typical Hollywood director. He wasn’t born into a Hollywood family, and he didn’t have any connections in the film industry.

Vans Cult Brand ProfileVans Cult Brand Profile

While Vans is today known as a symbol of alternative sports like skateboarding and snowboarding, the company didn’t start out this way.

The Volkswagen Beetle Cult Brand ProfileVolkswagen Beetle Cult Brand Profile

Today the Beetle is regarded as arguably the best-selling car of all time, but back in 1948 it was unknown in the U.S., and many sales types believed no one would ever buy, partly because of its association with Nazi Germany.

World Wrestling Entertainment Cult Brand ProfileWorld Wrestling Entertainment Cult Brand Profile

World Wrestling Entertainment’s (WWE) Vince and Linda McMahon are both masters at challenging and shattering conventional wisdom. They prove that anyone can build a Cult Brand.

MINI Cult Brand ProfileMINI Cult Brand Profile

The Mini became an icon of the 1960s, and its space-saving front-wheel-drive layout influenced a generation of car-makers. The vehicle was produced in many limited edition designs and was easily customizable making it a fun car to make your own.

Zappos Cult Brand ProfileZappos Cult Brand Profile

Founded in 1999, Zappos.com was the product of Internet entrepreneur Tony Hsieh’s Venture Frogs venture capital firm. Focusing on being the best in customer service propelled Zappos to $1 billion in gross sales in 2008, 2 years ahead of schedule.

Success by the Slice: Does Being “Flawsome” Work For Domino’s?

PhotobucketPerfection isn’t all it’s cracked up to be.

Just ask the folks at Domino’s Pizza.  In 2009, the company’s pizza came in last in a national taste test—tying with Chuck E. Cheese, an eatery known more for the presence of video games and children’s amusements than anything on the menu.  At that point, (and after bringing on a new CEO, Patrick Doyle) Domino’s launched a new marketing campaign, admitting that they weren’t perfect.

In fact, they were pretty far from perfect.  This campaign featured images of horrendous looking pizzas and consumer panels admitting, on camera, that they didn’t think there was any actual real cheese to be found on a Domino’s pie.  The company vowed to improve, and made a very public spectacle of their efforts to fix things.  They even posted a live feed of customer Tweets in Times Square: a highly visible, real-time response to their improvements for all the world to see.

As a result, Domino’s has seen their sales numbers improving steadily. Investor confidence in the brand has skyrocketed. In 2011, Domino’s stock prices rose 110%. Being “Flawsome” appears to be a smart strategic decision for Domino’s.  But why did it work?

Understanding the Brand Lover

The relationship between a consumer and a brand is a complex and nuanced one.  There are many, many factors that lead a person to order pizza from one restaurant rather than another. When we start delving into what the underlying appeal of what a marketing message of “We weren’t very good, really, but we’re trying to get better!” might be, we have to examine not only how the customer views the pizza restaurant in question, but how they view the world in general, and their place in it.

We are dealing right now with a consumer base that has been trained to be skeptical about everything. Having faith or trust in an institution is viewed as a nostalgic form of naivete; we’re sure that there’s going to be a fly in our bowl of soup. Reaching this market with a message of perfection or idealism isn’t going to work. This audience is not capable of believing such things. They know nothing in this world is perfect and they prefer to do business with a company that is honest about their imperfections.

Organizations that can acknowledge their own shortcomings, while putting forward a reasonable plan to remedy the solution with a sense of humor and maturity, appeal to these customers. The customer can identify with the brand—after all, they know they’re not perfect people. They’ve screwed up themselves, once or twice, over the years.  They may have had to go through their own process of rebuilding. There are common points of experience between Domino’s and the legions of customers driving the brand’s turnaround. The brands that are the easiest for customers to bond with are the brands that are most human—and haven’t we been told that to err is human?

There’s a lot to learn from Domino’s. Organizations that move in a more humanistic fashion, understanding and embracing those traits that bring them closer into alignment with their Brand Lover’s experiences and world view, are those that are going to dominate, even in a crowded marketplace. There is value in being “flawsome.”

Rotten at the Core? Apple’s Alignment Problem

Work hard on the job today or work hard to find a job tomorrow.

That isn’t the message most of Apple’s Brand Lovers would expect to find hanging on the wall of their favorite tech company’s manufacturing facility. It seems a little too Dickensian in sentiment, a world removed from the sleek gadgets tailor made to empower and encourage the creative spirit.

But there it is, right in the middle of a NY Times investigative report: In China, Human Costs are Built into an iPad.  Reading this, we learn how Apple’s supply chain is fraught with difficulties. Safety and environmental concerns top the list. People have died. There have been multiple explosions at manufacturing facilities—blasts, experts say, that were completely avoidable. Toxic materials were used in the production of iPhones, driven by what Supply Chain Digest calls “aggressive procurement practices.” Allegations of child labor, punitive practices in the workplace, and high rates of suicide round out the list.

There is a culture of secrecy and silence around Apple’s manufacturing practices; vendors sign confidentially agreements so sweeping that they’re barred from disclosing they’re working for Apple at all.

Customers First: Understanding the Pillars of Belief

Of all of the challenges that Apple has faced over the years, this situation holds the most potential to break the brand.  There is an obvious and fundamental disconnect between the way Apple is conducting business and the way that Apple’s Brand Lovers would expect Apple to do business.

Now, until this point, it’s probably fair to say that the vast majority of people who use and enjoy Apple products never once thought about how all of that iTech was actually made.  But if those same people were asked asked about how they thought their iPhone or iPad was made, we’d hear a range of responses based on the beliefs and assumptions that those customers have about Apple as an organization.

The Pillars of Belief articulate the beliefs that our best customers have about our company. This can be a simple but all important question, such as “Are they honest and fair? Are they the type of company I want to do business with?” Questions like these can help uncover the beliefs customers hold about your company that influences their buying decisions.

Brand Lovers strongly prefer to do business with companies whom they believe reflect their own personal belief system. They’re seeking those points of familiarity, of personal resonance, where their perception of your brand meshes closely with the cultural stories they hold most dear.

Problems arise when an organization’s performance, in any sphere of operations, gets out of alignment with the Pillars of Belief.  The Apple Brand Lover has expectations based upon their belief that Apple is a company that empowers and elevates people’s existence. The discovery that this product is made in a nightmarish sweatshop environment is out of alignment with that belief.  This disconnect introduces a tension into the customer-brand relationship; a tension that customers may resolve by abandoning their once-beloved iGear.

Apple has been making moves to remedy the supply chain issue, but as both the NY Times and Supply Chain Journal have noted, those efforts have been perceived as lacking and entirely secondary to the need to produce the new iGear as quickly and profitably as possible. Bringing Apple back into alignment with their Brand Lover’s expectations will require greater efforts to remedy existing problems, as well as increased visibility and transparency.  Only then will Apple be acting in a fashion that their Brand Lovers expect. That’s what it means to put Customers First.

Driving Into the Future: Rolls Royce, China, and Brand Lover Expectations

The Rolls Royce Special Edition Year of the Dragon Phantom comes in a distinct maroon color.  There are ornate golden dragon details. You can, if you can foot the bill, have your Phantom fully customized, with special embroidery on the upholstery, drinks cabinet, and on an optional picnic basket.

The price for the Year of the Dragon Phantom? $1.2 million.

Don’t bother saving your pennies, though. You can’t get one of these beautiful cars to park in your driveway.  They’ve all been sold—Rolls Royce’s entire production run—in less than 2 months.

Connecting with the Chinese Market: The Rolls Royce Approach

The success of the ultra-luxe Rolls Royce is only one of the many signs that the Chinese market should no longer be considered emerging.  It has emerged, flush with the power that relative economic stability conveys in this turbulent world.  Luxury brands are actively pursuing this market. We see Estee Lauder, Harrods, British Airways, and Hilton going to tremendous lengths to court the Chinese consumer.

What are the determinants of success here? Is there a way to tell which brands will be welcomed with open arms by the Chinese? We’re going to see these questions dominating our national discourse now, and for years to come.  To find the answers, we must begin by deconstructing the myth that there is a monolithic Chinese market.

The Chinese market is vast.  There’s no doubting that. We’re talking about 1.3 billion people, who have recently transitioned from a largely rural existence to a more urban way of life.  This has been a significant period of cultural change within China, with a tremendous impact on how individual Chinese people view themselves, each other, and the world beyond their borders.

With this change comes a great curiosity.  The Chinese, it seems, are fantastic travelers.  In the first six months of 2011, Chinese people made over 30 million overseas trips—approximately twice the number Americans are likely to make. While on these trips, the Chinese tourist is spending.  Research tells us that a Chinese tourist will spend up to 8% of their annual disposable income while on a vacation. It’s important to note what types of products, and more importantly, what types of experiences, the Chinese are buying.

This data will reveal that there is no one-size-fits-all approach to the Chinese market. Instead, the companies that will be most successful in China are those that do what dominant organizations have always done: identify the pivotal emotional and psychological factors that choose the brand’s best customers (Brand Lovers)  to favor one brand over all others, and deliver products, services, and especially experiences that satisfy the consumer’s emotional and psychological needs. Doing this allows an organization to connect quickly and meaningfully with their customer base, enhancing overall profitability and increasing market share.

This is a challenging endeavor when we attempt it with consumers who have a common cultural background with ourselves.  When you consider a consumer base that has been raised with markedly different experiences, iconography, cultural narratives, values, and mores, it becomes more complex.

Context matters.  Rolls Royce did an admirable job connecting with the Chinese marketplace, but that doesn’t mean that Toyota can start painting golden dragons on all of their Highlanders and see sales go through the roof. We need more than a surface level understanding if we’re going to reach and compete in China effectively. This will be one of the greatest challenges—and the greatest opportunities—that we ever face.

Are you ready?

The Sound of One Hand Clapping: Applause and Your Brand Lovers

During the Florida Republican Primary Debate, moderator Brian Williams asked the audience to refrain from applauding or booing anything they hear the candidates say. While this is the norm for presidential debates, the request drew mixed reaction in this instance.

There are those who praised the silent format, claiming that it reduces the theatrical aspect of the debate, forcing the focus onto the actual content of the discussion. There are those who criticized the move, claiming that the audience’s free speech was being stifled.  Additionally, these critics asked, isn’t the theatrical aspect of the debate part of the point?

This conversation raises larger questions. They transcend politics. The question of applause is relevant to every sphere of life, but most especially in the area of the relationship we have with our customers. We need to talk about the power of applause, the many roles applause can take, and the impact applause has on several parties: the person (or organization) being applauded, the person clapping their hands, and perhaps most important of all, those who observe the applause.

Why We Talk: Applause As Social Currency

To understand why applause is powerful, we have to take a look at the underlying psychological motivation forces that guide our behavior.  We’re all influenced by these forces whether we’re aware of them or not.  The need to belong to a group is very strong. Just belonging isn’t enough, however; we need to have a comfortable position in the group, one in which we understand our role, feel we receive an acceptable amount of support and validation, a place where we’re respected.

Part of the way we gain position in a group is by the exchange of what social scientists call social currency. Applause is a form of social currency.  When you clap for someone, you’re signalling your approval and admiration.

This has benefits for the person being applauded. They feel better, obviously, fulfilling the esteem needs. Applause attracts attention: other people want to see what’s so interesting. Increased attention boosts social status, which can result in an extension of influence.

Clapping has its own reward. Applause can be used to declare elements of identity: you can tell who a man is by paying attention to what he claps for. To find people who like the same things you do, follow the clapping.  You can gain social status by being among the first to applaud: there’s always been a special cachet associated with being in the know.

Applause strengthens the relationship between both parties. There are many benefits and expectations woven into the nuanced dance of the celebrated and the celebrator. It’s only when those expectations are understood and met that you see the applause continuing on an ongoing basis. Do a superlative job, and the applause grows in volume and intensity. It’s a cyclical pattern that begins with that first tentative clap.

Applause takes many forms. There’s hand clapping, but there’s also reviews and ratings. Any grading system is a specialized form of applause: if you meet these standards, we’re going to applaud your performance with an “A.” (Good to know if you’re in the restaurant business!) It’s important to be aware of how your best customers are likely to applaud you, as well as what type of applause they pay attention to.  That awareness is fundamental to forming deep, meaningful connections with your customers.

And that’s a fact no one will debate!

Beyond Question: Are There Things Your Brand Should Never Ask?

Arthur Brisbane has been having a rough week. On January 12th, the NY Times‘ public editor (a position created, you may remember, in the wake of the Jayson Blair scandal) used his high-profile soap box to ask the most amazing question: Should the Times be a truth vigilante? Was it incumbent on reporters, he went on to ask, to challenge public figures when their statements were less than accurate?

In itself, it’s not a particularly difficult question.  Most NY Times readers answered it quickly and succinctly. No duh, the collective wisdom went.  Of course it’s the NY Times‘ job to verify that the facts they print are actually facts—not politically-motivated spin, egregious falsehoods, or just plain old nonsense.

NY Times executive editor Jill Abramson joined the conversation, pointing out that fact checking is central to what journalists—and by extension, the NY Times—do.

The conversation quickly moved from there into a more complicated inquiry.  NY Times readers wanted to know why Brisbane was asking the question at all. It’s impossible to get even approximately accurate numbers on reader response, as the paper closed comments within hours of the editorial posting, but it’s not hard to discern the emotional tone of the conversation. Extremely high levels of anger, hostility, and frustration are easy to see.

Where is this emotion coming from?

It’s important to note that Brisbane did more than write an uncomfortable editorial.  That in itself would not have been so noteworthy.  Instead, he did something far more disruptive: he questioned a fundamental aspect of the NY Times‘ mythos.  The mythos is the shared cultural narrative, composed of beliefs held often unconsciously, in common by the NY Times, the NY Times readership, and the community at large.

The Mythos of the NY Times

As a legacy brand, the NY Times has a long and storied history.  The “Old Gray Lady” built a reputation as the paper of record. The NY Times brand was more than credible; it was strong enough to serve an editorial role in the national conversation simply by deciding what was included in “All the news that’s fit to print.”

The NY Times has a personality, a history, a known editorial slant and, despite some very well publicized mishaps, a reputation for adhering to rigorous journalistic standards. All of these elements combine in the brand’s mythos, and all of these elements are essential. For any organization, the mythos plays a strong role in defining the brand’s appeal. When an organization’s mythos is as strong and robust as the NY Times, you play with it at your peril.

So Mr. Brisbane has learned. By questioning one of the fundamental aspects of the paper’s mythos—the story that the NY Times is a dependable source of reliable information—he has introduced a tension into the customer/brand relationship. Doubts have crept into a space reserved for certainty.

This isn’t the first time there’s been mayhem in the NY Times‘ mythos, but it’s one of the most troubling.  If the leadership at the NY Times can’t believe in and articulate the fundamental aspects that define the paper as something different, special, and remarkable in the media, why should anyone else?