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.

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)

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

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 be part of
something beyond ourselves. At the same
time, they help us express our
individuality.

.
.
..
..
.
MAGIC MAKING

They are dream
catalysts.

Hugh MacLeod, Gapingvoid.com

But this isn’t airy-fairy
stuff.

Brands amount to as much as
80% of a firm’s assets.
- Economist (2008)

Country of Origin & Stereotypes:
Chinese brands. Now we’re talking values
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)

Beyond Nationalism:
Chinese consumers are drawn to
Western (foreign) brands. From cars to
education to investing to health care, at
the microeconomic level, nationalism
disappears fast in China.

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

“Harmonious Society”
= Consumer Society

low-probability, high-impact events
?

Black Swan Questions:
Could a hitherto-unknown figure
emerge and reassert communism?

Black Swan Questions:
On Tienamen protests:

“To the extent that the protests were
directed at abuses of an existing system
by an emerging elite, they were
motivated more by outrage at the
betrayal of socialist ideals than by
aspirations for a new system. The mood
in the square was at least as much
conservative as it was activist.”
James Krynge, FT, June 2009

On to the
BRAND ®
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.

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.

Importantly, a strong brand
gives employees focus and a
sense of purpose.
Why are we here?

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

Identity Meaning
{PR/Advertising} {Image/Reality}

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

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

Point of View?

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

You have to articulate ONE
idea or position. This is very
difficult. It’s tempting to try
and include too much.
Communicate ONE idea.
Let the market fill the gaps.

We know CVS is a “drug store”
in the mind. Yet, we know we
can also buy a soda, a
chocolate bar or a book there.
CVS is a drug store brand.
Barnes and Noble is a
traditional bookstore brand.
Amazon is . . .

All these brands mean different
things. Yet the stores to which
they are attached sell the same
products: books. These stores
all drive the consumption of
books. They expand the
category.

Standing for one idea
doesn’t have to be
exclusionary. At the same
time, we cannot overextend
the brand. Getting the
balance right is probably
the challenge in brand
building today.

Consumers (that’s us) need
a hook.
Volvos are the “safe” car,
but they are still fast. BMWs
are “drivable” . . . Of
course: they are safe, too.

You can explore these areas for a position
relative to other offerings:
Speed
Safety
Sophistication
Health
Indulgence
Slow and Personal
Convenience
Value for money etc.

Dig deep for a position within an
existing category - or create a new
category.

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

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

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

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. Also a
student of China and its culture. Feel
free to get in touch! Thanks!
Gordon@westportwire.com
© Gordon Graham 2007