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22 Immutable Laws of Branding - Al Ries, Laura Ries
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22 Immutable Laws of Branding - Al Ries, Laura Ries

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22 Immutable Laws of Branding - Al Ries, Laura Ries

22 Immutable Laws of Branding - Al Ries, Laura Ries

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22 Immutable Laws of Branding - Al Ries, Laura Ries 22 Immutable Laws of Branding - Al Ries, Laura Ries Presentation Transcript

  • BOOK SUMMARY AND KEY INSIGHTS: 22 Immutable Laws of Branding by Al Ries and Laura Ries PREPARED BY Sameer Mathur Ph.D. (Carnegie Mellon University) Assistant Professor (Marketing) www.BuddingMarkets.com OVER 700,000 VIEWS From 99+ Countries as of 2013
  • 1: The Law of Expansion “The Power of Brand is Inversely Proportional to its Scope” Prof. Sameer Mathur, Ph.D. www.BuddingMarkets.com
  • 1: The Law of Expansion If we want to build a powerful brand, we should contract it, not expand it. Consumers want a brand that is narrow in scope and distinguishable by a single word, the shorter the better. Prof. Sameer Mathur, Ph.D. www.BuddingMarkets.com
  • 1: The Law of Expansion EXAMPLE: American Express suffered the adverse consequences of the Law of Expansion. They had a handful of cards and ~25% market share in 1988. Their market share plunged to under ~20% after they launched a blizzard of new cards. Prof. Sameer Mathur, Ph.D. www.BuddingMarkets.com
  • 2: The Law of Contraction “A Brand Becomes Stronger When It Narrows Its Focus.” Prof. Sameer Mathur, Ph.D. www.BuddingMarkets.com
  • 2: The Law of Contraction A brand should narrow its focus, contracting the category. Narrowing focus is not the same as carrying a limited line. The objective should be to dominate a narrower category. Prof. Sameer Mathur, Ph.D. www.BuddingMarkets.com
  • 2: The Law of Contraction EXAMPLE: Fred De Luca implemented the Law of Contraction. He narrowed focus to one type of sandwich, the submarine sandwich. He called his restaurant Subway Prof. Sameer Mathur, Ph.D. www.BuddingMarkets.com
  • 3: The Law of Publicity “The Birth Of A Brand Is Achieved By Publicity (Not Advertising)” Prof. Sameer Mathur, Ph.D. www.BuddingMarkets.com
  • 3: The Law of Publicity A new brand must be capable of generating favorable publicity in the media. A new brand needs to be “born” not “made”. The best way of generating publicity is by being the first in some important, credible way for e.g. the first in a new category. Prof. Sameer Mathur, Ph.D. www.BuddingMarkets.com
  • 3: The Law of Publicity EXAMPLES: Band-Aid = first adhesive bandage Jell-O = first gelatin dessert Prof. Sameer Mathur, Ph.D. www.BuddingMarkets.com
  • 4: The Law of Advertising “Once Born, A Brand Needs Advertising To Stay Healthy” Prof. Sameer Mathur, Ph.D. www.BuddingMarkets.com
  • 4: The Law of Advertising First Publicity, Then Advertising should be the general rule. Advertising “raises the price of admission” for competitors. A brand’s advertising budget serves as insurance against losses caused by competitive attacks. Advertising is useful for maintaining brand leadership, but not to obtain it. Prof. Sameer Mathur, Ph.D. www.BuddingMarkets.com
  • 4: The Law of Advertising EXAMPLE: The first iPad was released by Apple on April 3, 2010. It received tremendous publicity and media coverage. Subsequently, Apple launched its advertising campaign. Prof. Sameer Mathur, Ph.D. www.BuddingMarkets.com
  • 5: The Law of The Word “A Brand Should Strive To Own A Word In The Mind Of The Consumer” Prof. Sameer Mathur, Ph.D. www.BuddingMarkets.com
  • 5: The Law of The Word A company must focus its branding efforts on “owning a word” in the minds of its target customers. This should be a word that nobody else owns. One way this occurs is when the brand name gets used as a verb. Prof. Sameer Mathur, Ph.D. www.BuddingMarkets.com
  • 5: The Law of The Word EXAMPLES: “To Xerox” = To Make a photocopy “To Google” = To Search the Internet Prof. Sameer Mathur, Ph.D. www.BuddingMarkets.com
  • 6: The Law of Credentials “The Crucial Ingredient In The Success Of Any Brand Is Its Claim To Authenticity” Prof. Sameer Mathur, Ph.D. www.BuddingMarkets.com
  • 6: The Law of Credentials A brand’s credentials in a category as authentic, real, original or the leader make it very powerful. Credentials serve as collateral put up to guarantee the performance of a brand. A product’s perceived benefits are higher, if they are structured around the company’s credentials. Prof. Sameer Mathur, Ph.D. www.BuddingMarkets.com
  • 6: The Law of Credentials EXAMPLES: Volvo = “safety” FedEx = “overnight” Prof. Sameer Mathur, Ph.D. www.BuddingMarkets.com
  • 7: The Law of Quality “Quality Is important but brands are not built by quality alone” Prof. Sameer Mathur, Ph.D. www.BuddingMarkets.com
  • 7: The Law of Quality Perception of quality is in the mind of the consumer. Having a high price signals high quality to consumers. There is often little correlation between the popularity of a product and the quality of the product. Prof. Sameer Mathur, Ph.D. www.BuddingMarkets.com
  • 7: The Law of Quality EXAMPLE: Does a Rolex keep better time than a Casio watch? Yet, it is perceived as a better quality watch. Prof. Sameer Mathur, Ph.D. www.BuddingMarkets.com
  • 8: The Law of The Category “A Leading Brand Should Promote The Category, Not The Brand” Prof. Sameer Mathur, Ph.D. www.BuddingMarkets.com
  • 8: The Law of The Category A brand should narrow the focus, create a new category, become the first and thus the leading brand in the new category. Once competition arrives, the brand should promote the category and increase the size of the pie, rather than increasing their slice of the pie. Prof. Sameer Mathur, Ph.D. www.BuddingMarkets.com
  • 8: The Law of The Category EXAMPLE: Customers care more about a new category (eating fresh pizza within 30 minutes) than a new brand (Domino’s) Prof. Sameer Mathur, Ph.D. www.BuddingMarkets.com
  • 9: The Law of The Name “In The Long Run, A Brand Is Nothing More Than A Name” Prof. Sameer Mathur, Ph.D. www.BuddingMarkets.com
  • 9: The Law of The Name In the long term, the unique idea or concept behind the brand goes away, leaving behind just the name. Shorter, unique, memorable names are better than longer, vague, generic names. Prof. Sameer Mathur, Ph.D. www.BuddingMarkets.com
  • 9: The Law of The Name EXAMPLES: “To Xerox” = To Make a photocopy “To Google” = To Search the Internet Prof. Sameer Mathur, Ph.D. www.BuddingMarkets.com
  • 10: The Law of Extensions “The Easiest Way To Destroy A Brand Is To Put Its Name On Everything” Prof. Sameer Mathur, Ph.D. www.BuddingMarkets.com
  • 10: The Law of Extensions Brand extensions destroy brand value, felt by a reduction in the market share of the parent brand; a loss of brand identity. The company should either continue to invest in the parent brand, or launch a new brand. Prof. Sameer Mathur, Ph.D. www.BuddingMarkets.com
  • 10: The Law of Extensions EXAMPLE: Does Extra-Strength Tylenol imply that regular Tylenol is not good enough? Prof. Sameer Mathur, Ph.D. www.BuddingMarkets.com
  • 11: The Law of Fellowship “In Order To Build The Category, A Brand Should Welcome Other Brands” Prof. Sameer Mathur, Ph.D. www.BuddingMarkets.com
  • 11: The Law of Fellowship Choice stimulates demand! (although too much choice can confuse consumers) Competition broadens the category, allowing the brands to focus. Similar businesses located close together attract more customers; consumers can comparison shop; competitors can keep an eye on each other. Prof. Sameer Mathur, Ph.D. www.BuddingMarkets.com
  • 11: The Law of Fellowship EXAMPLE: The competition between Coke and Pepsi makes consumers more cola conscious. The best location for Burger King is often across the street from McDonalds. Prof. Sameer Mathur, Ph.D. www.BuddingMarkets.com
  • 12: The Law of The Generic “One Of The Fastest Routes To Failure Is Giving A Brand A Generic Name” Prof. Sameer Mathur, Ph.D. www.BuddingMarkets.com
  • 12: The Law of The Generic A generic name makes it tough for a brand to differentiate from its competitors. It lacks Brand Identity. Many brands have transformed from a generic name (e.g. General Electric) to a specific name (GE). Sometimes cutting a generic name can create a good specific name. Prof. Sameer Mathur, Ph.D. www.BuddingMarkets.com
  • 12: The Law of The Generic EXAMPLE: “Intelligent Chip Company” is too long and too generic a name. Everyone knows and remembers “Intel”. Prof. Sameer Mathur, Ph.D. www.BuddingMarkets.com
  • 13: The Law of The Company “Brands are brands. Companies are companies. There is a difference.” Prof. Sameer Mathur, Ph.D. www.BuddingMarkets.com
  • 13: The Law of The Company Customers think about and buy brands (e.g. Tide), not the parent company (Proctor & Gamble). The brand name should get greater focus than the company name (unless they are the same). Customers use the brand name to describe the product (e.g. Do you want to drink Pepsi?) Prof. Sameer Mathur, Ph.D. www.BuddingMarkets.com
  • 13: The Law of The Company EXAMPLE: Customers think about and buy Tide (the brand), not the P&G (the parent company) Prof. Sameer Mathur, Ph.D. www.BuddingMarkets.com
  • 14: The Law of Sub brands “What Branding Builds, Sub-Branding Can Destroy” Prof. Sameer Mathur, Ph.D. www.BuddingMarkets.com
  • 14: The Law of Sub-brands Sub-brands can erode the power of the brand by creating confusion. They can adversely impact the positioning of the brand in the minds of the target consumers. For example, Waterford is the leading Irish crystal maker. Introducing “cheap” Waterford as “Marquis by Waterford” dilutes the Waterford brand. Prof. Sameer Mathur, Ph.D. www.BuddingMarkets.com
  • 14: The Law of Sub-brands EXAMPLE: Consumers could get confused about the different Holiday Inn sub-brands and how they are positioned. Prof. Sameer Mathur, Ph.D. www.BuddingMarkets.com
  • 15: The Law of Siblings “There Is A Time And Place To Launch A Second Brand” Prof. Sameer Mathur, Ph.D. www.BuddingMarkets.com
  • 15: The Law of Siblings Sometimes it is good to create a family of brands – sibling brands. The second brand should not detract from the parent brand. It could focus on a new subcategory within the same product family. Each sibling should be different and distinct in its own right. Prof. Sameer Mathur, Ph.D. www.BuddingMarkets.com
  • 15: The Law of Siblings EXAMPLE: Time Inc., the world’s largest magazine publisher has many separate, sibling publications: Time, Life, SI, Money, People Prof. Sameer Mathur, Ph.D. www.BuddingMarkets.com
  • 16: The Law of Shape “A Brand’s Logo Type Should Be Designed To Fit The Eyes. Both Eyes.” Prof. Sameer Mathur, Ph.D. www.BuddingMarkets.com
  • 16: The Law of Shape A logo should be a combination of a trademark and the name of the brand, set in distinctive type. A logo should be horizontal; legible; need not be accompanied by a symbol. Prof. Sameer Mathur, Ph.D. www.BuddingMarkets.com
  • 16: The Law of Shape EXAMPLES: Some of the world’s best logos Prof. Sameer Mathur, Ph.D. www.BuddingMarkets.com
  • 17: The Law of Color “A Brand Should Use A Color That Is The Opposite Of Its Major Competitor” Prof. Sameer Mathur, Ph.D. www.BuddingMarkets.com
  • 17: The Law of Color Color can help to make a brand distinctive. Focus on the identity and mood that the brand should create. Accordingly, choose the best color possible, but if there is another brand with that color, choose the opposite color. Usually, having one, basic color (red, blue, green, yellow) is better than a mixed color or a combination of colors. Prof. Sameer Mathur, Ph.D. www.BuddingMarkets.com
  • 17: The Law of Color EXAMPLE: Coke is primarily red, while Pepsi is primarily blue. Prof. Sameer Mathur, Ph.D. www.BuddingMarkets.com
  • 18: The Law of Borders “There Are No Barriers To Global Branding. A Brand Should Know No Borders” Prof. Sameer Mathur, Ph.D. www.BuddingMarkets.com
  • 18: The Law of Borders A global brand should have a narrow focus and consistent message, but account for the perceptions of its country of origin. Regardless of where a brand originated or is produced, the name and the associated connotations determine its geographic perception. Prof. Sameer Mathur, Ph.D. www.BuddingMarkets.com
  • 18: The Law of Borders or EXAMPLE: Honda is perceived as Japanese; Microsoft is perceived as American; Haagen-Dazs is perceived as Scandinavian (although it is American) Prof. Sameer Mathur, Ph.D. www.BuddingMarkets.com
  • 19: The Law of Consistency “A Brand Is Not Built Over Night. Success Is Measured In Decades, Not Years” Prof. Sameer Mathur, Ph.D. www.BuddingMarkets.com
  • 19: The Law of Consistency Being consistent over time and limiting the scope of the brand is the key to successful branding. A brand cannot get into the mind unless it stands for something. Markets may change, but brands should not be changed. Prof. Sameer Mathur, Ph.D. www.BuddingMarkets.com
  • 19: The Law of Consistency EXAMPLE: BMW has been “The Ultimate Driving Machine” for 30 years. Prof. Sameer Mathur, Ph.D. www.BuddingMarkets.com
  • 20: The Law of Change “Brands Can Be Changed, But Only Infrequently And Only Very Carefully” Prof. Sameer Mathur, Ph.D. www.BuddingMarkets.com
  • 20: The Law of Change Brands should be changed infrequently and cautiously. There are three situations in which brands should be changed: - When a brand is non-existent in the minds of consumers - When a brand needs to be moved to a lower price and perception - When a brand is in a category where change occurs slowly Prof. Sameer Mathur, Ph.D. www.BuddingMarkets.com
  • 20: The Law of Change EXAMPLE: Marlboro lowered the price of its cigarettes over time to gain market share Prof. Sameer Mathur, Ph.D. www.BuddingMarkets.com
  • 21: The Law of Mortality “No Brand Will Live Forever. Euthanasia Is Often The Best Solution” Prof. Sameer Mathur, Ph.D. www.BuddingMarkets.com
  • 21: The Law of Mortality Brands have a life cycle. They are born, grow up, mature and eventually die. Companies sometimes waste millions trying to save a dying brand. A well-known brand that doesn’t stand for anything has limited value. A brand that stands for something but is not well-known has value because there is the opportunity to create a powerful brand. Prof. Sameer Mathur, Ph.D. www.BuddingMarkets.com
  • 21: The Law of Mortality EXAMPLE: Blockbuster became a leader in video rentals. Subsequently, with the rise of Video on Demand, Netflix and poor management, its revenues declined. Finally, it filed for bankruptsy in Sept 2010 and was acquired by Dish Network. Prof. Sameer Mathur, Ph.D. www.BuddingMarkets.com
  • 22: The Law of Singularity “The Most Important Aspect Of A Brand Is Its SingleMindedness” Prof. Sameer Mathur, Ph.D. www.BuddingMarkets.com
  • 22: The Law of Singularity The most important aspect of a brand is its singularity. What is a brand? A singular idea or concept owned inside the mind of the prospect. If it is too many things at once, it is confusing and can become worthless. Prof. Sameer Mathur, Ph.D. www.BuddingMarkets.com
  • 22: The Law of Singularity EXAMPLE: Volvo has stuck to the singular concept of burning into the minds of consumers that it is the safest car on the road. Prof. Sameer Mathur, Ph.D. www.BuddingMarkets.com