Establishing and Building a Brand in a Crowded Market © Gordon Graham 2007

Brands run deep: “ Mythological symbols touch and exhilarate centers of life beyond the reach of vocabularies and coercion.” - Joseph Campbell , Masks of God, Vol. 4

What is a brand? Multiple definitions. Multiple perspectives. Multiple roles.

What is a brand? “ . . . the promise, the big idea, and the expectations that reside inside the head of each customer’s mind about a product, service, or company . . .the brand is shorthand. It stands for something.” - Alina Wheeler (2006)

What is a brand? “ . . . a set of mental associations, held by the consumer, which add to the perceived value of a product or service.” - Kevin Lane Keller (1998)

What is a brand? “ . . . a brand is a concept . . . a brand shapes and reflects our quest for meaning.” “ Bobby J. Calder (2005) “ . . . a brand is a meaning system.” “ - Patrick Hanlon (2006)

What is a brand?

“ . . . a brand is a concept . . . a brand shapes and reflects our quest for meaning.” “

Bobby J. Calder (2005)

“ . . . a brand is a meaning system.” “

- Patrick Hanlon (2006)

Definitions will emphasize what a brand is (physical appearance) or what it does (role).

What do brands do? They remind us of a past product/service experience. They communicate how we see ourselves. Brands are fantasy. Escapism. A brand is often just an umbilical cord to a world elsewhere.

Brands represent the world as it ought to be not how it is. Romanticism. Brands represent values and ideals. They simplify our day.

Brands help satisfy a need to belong to something beyond ourselves. At the same time, they help us express our individuality. Thanks to Rob Walker (2008) for this.

Hugh MacLeod, Gapingvoid.com

M A G I C M A K I N G . . . . . . . Brands are

Brands amount to as much as 80% of a firm’s assets. - Economist (2008) But . . . hugely successful brands can also emerge simply as the result of an awesome product .

Brands amount to as much as 80% of a firm’s assets. - Economist (2008) So let’s not take this branding thing too far. Branding is no substitute for mediocre products or a lack of product innovation.

You can only fool people for a while.

Country of Origin & Stereotypes: Chinese brands. Now we’re talking values, trust and the relative attractiveness of cultures.

What is culture? “ . . . the sum of a set of shared values.” Bradley Hall (2008) “ . . . inherited ethical habit.” - Francis Fukuyama (1995)

What is culture?

“ . . . the sum of a set of shared values.”

Bradley Hall (2008)

“ . . . inherited ethical habit.”

- Francis Fukuyama (1995)

Individualism + Low Trust in China Small firms. Family run at core. Fragmented industries. Destructive, subsidized competition. Little cooperation. Few transnational firms. Short-term thinking. Emergent Strategy.

BRAND ® On to the Building > > >

What will this presentation cover? Why firms should establish a brand. The steps in establishing a new brand. A short list of recommended branding books.

What will this presentation cover?

Why firms should establish a brand.

The steps in establishing a new brand.

A short list of recommended branding books.

1. Why establish a brand ?

Consumers face a dizzying array of choices .

Products drift towards commoditization .

A brand differentiates the product from similar offerings.

A brand reduces the need to compete on price alone.

The goal of a brand is to establish a monopoly position for a non-core product attribute in the mind of an individual.

Meaning {Image/Reality} Identity {PR/Advertising} The firm Staff & Customers

Length of Time Brand Engages Market Firm Who controls a brand’s meaning? Market

2. Steps in establishing a new brand .

I: Establish the meaning of the brand “ The power of a brand is inversely proportional to its scope.” - Laura and Al Ries, The Origin of Brands

A good way to do this is by asking: What’s the brand’s Point of View ?

CVS : general drug store products Body Shop : body Broad Scope New Brand A hair care store? Narrow Scope

Point of View? Who is the Enemy?

Beauty doesn’t have to be at the expense of animals’ welfare.

Dig deep for a position within an existing category - or create a new category or, better yet, a new product!

“ Healthy” or “organic” are no longer brand positions or differentiators. These are now categories. Dig deeper if you want to differentiate.

Stand for something Your brand needs to . . .

General Motors Models in 1955: 25 General Motors Models in 2005: 325 Categories diverge not converge Source: The Machine That Changed the World (1990)

Range Rover: American Hummer: Chinese French’s Mustard: British Glenmorangie Scotch: French Trader Joe’s: German Brands and their Owners

Diffuse Ownership Brands are often part owned by sovereign funds and private equity groups from various countries.

Some points to remember: Brands cannot stretch very far Customers buy brands not companies Brand decisions are strategic

You can build a brand portfolio organically

Or through acquisition

II: Name Choose a name that’s: unique short easy to say easy to spell . . .

if possible, the name should suggest the product category : Captain Morgan Rum Lunesta Sleeping pills Samsonite Strong luggage

Alternatively, you can create meaning around a meaningless word. This is what Starbucks did with its brand.

III: Physical Elements of the Brand: Choose a logo or name mark Choose a colour(s) Choose a tagline

The Origin of Brands, Al and Laura Ries Brand Meaning, Mark Batey Designing Brand Identity: A complete guide to creating, building and sustaining strong brands, Alina Wheeler Brand Leadership, David Aacker and Eric Joachimsthaler The New Strategic Brand Management: Creating and sustaining brand equity long term, Jean-Noel Kapferer

I’m always interested in brand-related marketing/training projects in China/Taiwan/Connecticut/New York etc. Feel free to get in touch! Thanks! [email_address] © Gordon Graham 2007