Customer Reviews

Brand New: How Entrepreneurs Earned Consumers' Trust from Wedgwood to Dell

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Did you know that in 1859 Americans consumed about eight pounds of coffee per year, per capita? Or that by 1939 it was fourteen pounds? If this is your cup of tea, then I think you will like this book. This is not a criticism, I liked the book because it looks at the growth in demand which was supplied by the entrepreneurs who formed the brands described in the book. Indeed this demand-side view is part of the book that made the biggest impact on me.
Some of this is obvious, but somewhat in the backround of our knowledge - "between 1860 and 1920 the population of the US grew from 31.5 to 107 million" - and some of this is well extracted in this book - e.g. "in 1844 (when Henry J. Heinz was born)less than 10% of American's lived in towns of greater than 2,500 population, 75 years later (when he died) 50% were urban dwellers and 20% lived in cities of greater than 250,000 people". Koehn builds up this demand side very well in each of the six cases she uses to illustrate who entrepreneurs build up branded business - Wedgwood , Heinz, Marshall-Fields, Estee Lauder, Starbucks and Dell.
Koehn, a Harvard business historian, is also quite good at showing how developing technology is put to use to serve this demand (or does it create it?) - "In 1830 it took three weeks to get calico from New York to Chicago, in 1860 it took three days, by 1880 ... less than 24 hours"
Again we all knew the importance of the railroad, but here its phrased in a way that makes sense of the dynamic growth and gentrification of the Mid West. She illustrates well the need that urbanisation created for prepared food that could be trusted and describes very well the increasing sophistication of industrial level food preparation - " by the 1860;s the introduction of calcium chloride to boiling water cut sterilization times from five hours to 25 minutes". She can even make innovations in canning technology sound exciting.

So much for the good stuff, I did find the tone of the descriptions of each entrepreneurs a bit fawning. Each had the feel of a business case, with the usual tone of awe and deference to the wit and wisdom of the main characters. With the exception of the Starbucks case - where Howard Shultz openly tells of his mistakes and wrong turnings - each case seems to highlight the wisdom of the main character, whereas it seems to me its their determination that marks them out, more than anything else. Henry Heinz went bankrupt three times in food products, before he became successful, Michael Dell was still seen as a cloner into the late 1980's.
Koehn makes no judgements about the more unpleasant side of this determination - Estee Lauder staged a meeting with the Duke of Windsor, which she had photographed and publicised, in order to make it appear she had high-society connections, Josiah Wedgwood supplied free gifts to royalty in the certain knowledge that the aspirations of the middle classes to emulate royalty would drive demand for this his products.
There are good insights into how these individuals drove modern marketing techniques - Wedgwood emphasized showrooms, Estee Lauder the free gift. And all had tremendous energy for customer service and production detail. However in each of the early cases we are told that 20th Century techniques were unknown to the industry " Brand marketing was virtually unheard of in the 18th Century" [ Wedgwood]; " Between 1869 and 1899, real per capita income increased at an annual compound rate of 2.1%. Henry Heinz had no access to these statistics. These numbers are based on economic concepts developed in the 20th Century". This kind of clumsiness crops up in each case, ok we get the point that these pioneers instinctively did something which is now solidified into great theory, but surely this point could be illustrated with more deftness.

This apart, a very useful and interesting book, a book for anyone interested in the general history of business. Some excellent details, too much fawning and praise too little criticism of the central characters who built the brands. A fascinating story.
If you liked this book, check out books by Arthur Chandler and John Drewer.

One final fact, Charles Darwin had the time and money to devote to his famous voyage on the Beagle - which laid the basis for the theory of Evolution - because his wife's grandfather was Joshua Wedgwood. Was this financial evolution at work?

Koehn has produced a weighty and informative look at the way successful entrepreneurs have used brands to achieve a number of goals. These goals include long-term differentiation from competitors, internal quality control, profit margin protection, and facilitation of additional product introduciton.

To make her case, she chose three cases from the past (Wedgwood, Heinz, and Marshall Field) and three cases from the present (Estee Lauder, Starbucks, and Dell Computers). Finally, she concludes the book with a chapter which addresses the issue of historical forces and entrepreneurial agency.

I particularly found the cases from the past persuasive in their argumentation for a long-term differentiating factor in brand. The newer cases are obviously harder to make in that (particularly with Starbucks and Dell) how long-term the success will be remains to be seen. One of the best features of the book is the depth with which she treats each case-- she provides enough information to build her thesis (and often entertain with the anecdotes) but not so much that the book becomes bogged down. The excellent footnotes provide whatever's necessary to someone looking for further information.

One minor quarrel is that I would have liked to see the further reading pulled out into a better organized bibliography. There were obviously quite a few good sources scattered amongst the footnotes and if you were interested in a particular subject matter it required some patience to pull all of the citations out.

As she completed her research and then began to write this book, Nancy Koehn made several important decisions. First, she placed her primary objective in clear focus: to explain "how entrepreneurs earned customers' trust." Next, she limited her attention to only six. Finally, she then examined them within an historical context from the late-18th century until the present time. As Koehn observes, "Before 1750,...most Britons ate off wood or pewter plates. Then came Josiah Wedgwood. In antebellum America, the majority of women made their own pickles. Then came Henry Heinz. Until the Civil War, urban retailing was a specialized activity with a wide variety of small shops offering particular kinds of goods. Then came department store entrepreneurs such as Marshall Field." It is important to stress that Koehn is a biographer and cultural historian only to the extent that the material she provides helps to advance the narrative of her core themes: how six individual entrepreneurs dealt with the "imperatives" to quality goods at reasonable prices, communicate the virtues of her or his products to potential buyers in effective ways and thereby maintain and grow a viable customer base, and, how to develop organizational capabilities to learn about their respective customers and then earn their trust.

Before 1945, Koehn observes, "few American women wore premium lipstick or facial creams, and those who did [when they could] bought them in beauty shops along with elaborate treatments administered by trained cosmeticians. Then came Estee Lauder. Prior to the late 1970s, Americans bought ground coffee mostly in one-pound cans sold in supermarkets and supplied by large food processors. Then came [Howard Schultz and] Starbucks. Before 1980, most businesses used only typewriters and copy machines for paperwork. Large companies relied on mainframe and midsize computers to handle extensive calculations and data processing. Only a small number of households owned a personal computer or printer. Few if any of these users expected to be able to specify a particular computer's configuration. Then came Apple, IBM, Compaq, and Michael Dell." It is also important to stress that each of the six entrepreneurs whom Koehn discusses fully understood what rapid social and economic change in their respective era meant for consumers' needs and desires. Moreover, as she carefully explains, all six used their knowledge of both the supply and demand sides of the prevailing economy to create high-quality goods,, meaningful brands, and other connections with customers..." and they built elite organizations that worked to [in italics] satisfy and then [in italics] anticipate buyers' changing preferences."

In Chapter 1, Koehn provides a brilliant overview on "Entrepreneurs and Consumers," then devotes an entire chapter to each of the six entrepreneurs. In her final chapter, she shifts her attention to "Historical Forces and Entrepreneurial Agency," followed by 104 pages of notes. In that final chapter, Koehn points out that the six entrepreneurs "lived and worked in different contexts. Yet they all shared a powerful gift: the ability to discern how economic and social change affected consumer needs and wants. They also understood that these demand-side shifts presented critical business opportunities -- opportunities that each exploited by creating new, best-of-class goods and strong brands." She goes on to suggest that they were "institution builders who were not interested in riding the wave of a short-lived trend or forcing their young brands on buyers. They wanted to [in italics] earn consumers' trust and keep it."

It remains to seen which entrepreneurs emerge during the next few years but it seems certain that they will also encounter "economic and social change affected consumer needs and wants" and in a global marketplace yet to be developed. There is much that they -- and we -- can learn from Josiah Wedgwood, H.J. Heinz, Marshall Field, Estee Lauder, Howard Schultz, and Michael Dell. Thanks to Nancy Koehn, those "lessons" are provided in a single volume, one which will continue to be of interest and value for decades to come.

Those who share my high regard for this book are urged to read Wolf's The Entertainment Economy, Schmitt's Experiential Marketing, Gobe's Emotional Branding, Gilmore and Pine's The Experience Economy, and Brands: The New Wealth Creators co-edited by Hart and Murphy.

professor koehn presents the subject of branding in a fascinating historical perspective; a interesting, insightful and sometimes surprising read. a very useful book for anyone who is managing a brand, trying to understand the value of brands, or wants to understand how branding fits into the lore of business.

an excellent reference and clearly meticulously researched

Nancy Koehn's Brand New inspires the entrepreneur in us all. Her book gives readers a greater appreciation for the risk and rewards of entrepreneurship, and an admiration for those who made their enthusiasm for a product or idea work to their advantage.

The history and environment surrounding the advent of each of the entrepreneurs is especially enlightening, spotlighting how each person was able to see current trends and how they could capitalize upon them.

Though sometimes lengthy and repetitive, the book is an overall good read for anyone interested in business, marketing, strategy or history. I particularly liked the stories surrounding Heinz, Estee Lauder, and Starbucks.

Nancy Koehn's Brand New: How Entrepreneurs Earned Consumer's Trust from Wedgewook to Dell is a book for the summer reading lists of anyone about to begin business school, their friends and family, and everyone who is curious about what it takes to make dreams come true. Unlike most books on management, this one has universal appeal. History buffs will become immersed in the colorful, personal stories about the adventures of six entrepreneurs over the course of two centuries, and their great moments.

Whether women or men, immigrant or native, urban or rural, passionate about their product or driven by the pursuit of profits-the stars in Koehn's book offer invaluable lessons.

Josiah Wedgewood teaches us about product positioning and partnerships. After reading Brand New, who can forget this potter's hob-nobbing with English royalty, naming his pieces after Dukes and Duchesses, and branding them with his own signature-all in attempt to appeal to a rising middle class interested in purchasing items formerly just for the rich? In the book, readers also learn behind-the-scenes facts, such as Wedgewood's collaborations with Bentley, the unsung hero who provided the business acumen to perfectly complement Wedgewood's skills as a salesman and potter.

Koehn uses colorful examples to teach us about the woes of financial distress. The reader learns about Henry Heinz' ledger of accounts via sample journal entries entitled "Panic Times." And who can forget the headlines of a local newspaper: "Trio in a Pickle"-- used to describe Heinz and his business partners after the firm's bankrupcy when three executives were sentenced to jail time?

In Brand New, the stories of Estee Lauder and Michael Dell bring new meaning to the business term, "managing growth." The reader can empathize with the personal and physical impact business growth can have on people. We read about both Lauder and Dell working out of their small apartment and dorm-rooms, respectively, until sales for both companies go through the roof and necessitate major change.

Marshall Field and Howard Schultz exemplify "continuous learning and improvement." Field learns time and time again as fires destroy his Chicago department stores. For each inferno he learned a new lesson and turned problems to his advantage. Field capitalized on the fateful reminders of the importance of insurance, of inventory separation, and of learning strategic ways to design in-store floor patterns to maximize customer traffic and sales/square foot. As for Schultz, his business education was a bit more pleasant. He took time out early on in his career to visit Italy to learn as much as he could about Mediterranean coffee houses.

The lessons are numerous, and Koehn artfully uses her stories to teach us about business and life. Her stories are humbling. She reminds those who recently struck it big in the dotcom era of the true meaning of sweat equity. More important, she reminds entrepreneurs of all varieties, and those near to them, that we all are a part of something larger-that we are making history today.

Those who read Brand New are better for it, just as her students at Harvard Business School are better for taking her courses on business history and entrepreneurial management. Now, through her book, a larger audience has the good fortune to be students of the finishing school Koehn provides to polish her MBA students.

Koehn did an amazing job in conveying to the reader the challenges facing entrepreneurs in creating brands. While most people have heard of all 6 companies, most people do not know the extent to which these 6 individuals relied on their intuition, imagination, and their ability to listen diligently to customers in building their companies, thus leading them to build great brands.

In today's world, people are taught too much to be analytical in making business decisions. This can have the effect of taking business decisions too fay away from the everyday touch and feel of consumers' hopes and dreams, fears and fantasies. It's inspiring to see entrepreneurs succeed by making sound decisions based on common sense, such as Estee Lauder's packaging and sampling decisions (She pioneered the gift with purchase that we all take for granted today), instead of pure analytics.

Koehn clearly demonstrates the passion each entrepreneur has towards his/her brand; it was very apparent that these individuals lived and breathed their brands while nurturing a rich understanding of their customers. Many people talk about ways to build a sustainable brand but few have studied it it Koehn's fashion. Frameworks are good, but common sense in combination with empathy and organizational commitment are better, which is what Koehn delivers via the 6 entrepreneurs depicted in this book.

For someone who is curious about what it takes to build or manage a brand, Koehn's book is a must read.

This highly readable business book profiles six successful entrepreneurs from the eighteenth to the twentieth century. Each profile (Josiah Wedgwood, Henry Heinz, Marshall Field, Estee Lauder, Howard Schultz, and Michael Dell) details the milieu of the era and offers insight into the environmental business factors that each of these business builders faced.

It is this holistic approach to the subject of each profile that makes the stories so compelling. Using her command of history, Ms. Koehn outlines the period view of each of the products (pickles to perfume) and vividly draws the reader into the strategy of each of these entrepreneurs' approach to the market and building their brand. It is the power of these stories that gives the brand message such import. All of these people had a great number of competitors in their market niche but their focussed approach to the brand associated with their goods or services is what set them apart.

Ms. Koehn uses some excellent demographic and financial information (indexed to today's dollars) that provide the backdrop for the scale of the success each of these entrepreneurs' achieved. This provides just enough quantitative information to provide texture without clouding the real story in statistics.

As an executive in the software business today, I found a great deal of comfort in the fact that the challenges I face in today's competitive marketplace are not new. In fact, with great courage and resolve, they have been solved again and again in differing but similar ways over centuries.

Stories are the way that we all learn best. Professor Koehn has provided six meticulously detailed ones about brand development by 18th and 19th century entrepreneurs (Josiah Wedgwood, H.J. Heinz, Marshall Field) as well as 20th century ones (Estee Lauder, Howard Schultz, and Michael Dell). Almost any reader will learn details new to her or him from these cases. Each example focuses on how important brands got started on a shoestring. The book has a major weakness in that the financial details of the six businesses are too sketchy to really help understand the economics of what the entrepreneurs did.

Wedgwood improved the quality of earthenware, and changed the way that the products were used by the wealthy and the aspiring. He courted the visible elites and royalty to inspire emulation by those who could afford the products.

H.J. Heinz offered quality and convenience at a time when most preserved food products were shoddy and women did most of their own preserving.

Marshall Field courted the carriage trade who could afford to pay top dollar for top quality goods and service.

Estee Lauder provided high quality cosmetics at more affordable prices.

Howard Schultz introduced most Americans to the latte, taking coffee from being a source of caffeine to a tasteful experience.

Michael Dell changed the business model for how corporations got their computing equipment, customizing for each one just-in-time.

Having been educated in both history and in business, it is clear that Professor Koehn comes at the problem more from the historical discipline than from the business one. As a result, the book will be most appealing to those who are interested in the origins of one or more of these brands, companies, or entrepreneurs. At this level, the book is five-star entertainment.

Business readers will find that relevant details are often missing. For example, Wedgwood staged very expensive exhibitions of his wares. You wonder how he could afford to do this, and finally learn near the end of the study that the company had enormous profit margins. H.J. Heinz is described as being very successful in a predecessor company, yet he goes bankrupt. Some information about his margins would probably have revealed that he had low margins. The information is not included. There are bits and pieces of ratios and annual revenue numbers, but the financial side of these examples is clearly underdeveloped. That's a shame, since they all built up important enterprises on a shoestring.

The choice of cases seems flawed from a business perspective. Five of the six are consumer products and services. Of the five, all appealed initially to high income people when good products and services were largely unavailable. Forming brands in such an environment is no great trick. Readers would have learned more about brand building from cases where the competition was fierce from people who were providing exactly the same choices.

As a result, from a business perspective, this is a three star book. I averaged the five and the three star ratings out to reach my four star conclusion.

After you read this book, you should think about how you decide which brands to trust, and how you go about establishing the trustworthiness of brands that you represent. What else is important before trust can be earned? In particular, pay attention to the significance of establishing improved business models (something that all six entrepreneurs had in common).

Make your brand stand alone in its desirability in the eyes of all who see it!

Sick of reading books about branding in the new economy, ebrands, digital brands and every other thing that marketers try to sell you? Then read this book for inspiration, which is not only about branding, but poignantly illustrates the pleasures and the pain of entrepreneurship, and managing a growing business.

This book is very well written, with excellent observations and pointers for success. Although the majority of the book is case studies, these are not the usual 'filler' material that have become so common in business books. I highly recommend the studies of Wedgewood, Heinz and Marshall Field, and how they took advantage of new trends such as railroads and communications. These are not so far from the revolution that the Internet has placed many corporations in. The historical perspective is excellent, and for once this is not written by a big 5 consultant with something to prove, or a service to flog.