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  • 1. “Like human beings, all brands are born equal. The trick is to prove one isn’t. Branding is the art and science of identifying and fulfilling human physical and emotional needs by capturing attention, imagination and emotion long enough to make money from it.”– Idris Mootee1 2
  • 2. Copyright © 2003, 2005, 2008, 2009Idris MooteeAll rights reserved. Published byIdea Couture Inc. No part of this publicationmay be reproduced, stored in a retrievalsystem, or transmitted in any form or by anymeans, electronic, mechanical, photo-copying, scanning, or otherwise, except aspermitted under Section 107, 108 of the1976 United States Copyright Act, withouteither the prior written permission ofthe Publisher. Request to the Publisherfor permission should be addressedto the Permission Department atpermission@ideacouture.com. Limit of Liability/Disclaimer of Warranty:While the publisher and author haveused their best efforts in preparing thisbook, they make no representationsor warranties with respect to the accuracyor completeness of the contents of thisbook and specifically disclaim any impliedwarranties of merchantability or fitnessfor a particular purpose. The advice andstrategies contained herein may notbe suitable for your situation. You shouldconsult with a professional whereappropriate. Neither the publisher norauthor shall be liable for any loss ofprofit or any commercial damages, includingbut not limited to special, incidental,consequential, or other damages. A number of brand names and trademarksare mentioned and used in this bookare protected under copyright laws andinternational treaty provisions. Alltrademarks, services marks, trade names,logos and icons are proprietary to theirrespective owner. Their inclusion in thisbook is for the purpose of criticismand illustration only.60-Minute Brand Strategist –Limited EditionBook and cover design:Sali Tabacchi3 1
  • 3. Contents:Introduction 4All About Brands 7Branding in a Postmodern Culture 39Strategic Perspectives of Branding 49Managing Brand Meaning 79Brand Leadership 119Luxury Brand Marketing 1332 3
  • 4. IntroductionThis book is about only one thing: brands,branding and the only sustainable form ofleadership in an economy ruled by ideas –brand innovation and leadership. Its been 8 years since 60-minute BrandStrategist was first published as a book.Adapted from slides I used in my AdvancedBranding Seminar, the first edition wastranslated and published in several languages,including Japanese, Chinese and German.Dr. Morgan Gerard collaborates with me todevelop this limited edition, updatedand abridged version by popular demand.We decided to select a few of the book’schapters that deliver the essence of theconcepts. These concepts and techniquesare used by the world’s most successfuland valuable brands. But you’ll rarely, if ever,read much about these concepts inbusiness magazines. Why? Simply put,they’re trade secrets. Well-wieldedbranding tools and techniques are powerful,competitive weapons used to win thehearts and minds of customers. Time andagain, they help defeat the competition.Consider what follows a battle plan designedto inspire, act as a reminder, function asa tool kit and be drawn upon as a referencethat should sit on every marketing andbrand executive’s desk.Idris Mootee, CEOIdea Couture Inc.4 5
  • 5. all about brands6 7
  • 6. LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOUWhat is a brand? I I I I I I I I I I I I LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVEIn a world where brands rule, products YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOUare no longer bundles of functionalcharacteristics but rather means to provideand enhance customer experiences.Thanks to the internet and wireless tech- I I I I I I I I I I I Inologies, information is so abundant LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOUthat consumers are overloaded. They havemore information than they can digest,use, need or even want. Product proliferation creates so many I I I I I I I I I I I Ichoices that it diminishes our ability to LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVEdifferentiate or choose what we truly value. YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOUBrands help us choose. They are invaluabletools that help us break through clutter tomake choices based on our experience ofand satisfaction with products or services. I I I I I I I I I I I I LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU I I I I I I I I I I I I LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU I I I I I I I I I I I I LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU I I I I I I I I I I I I LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU I I I I I I I I I I I I LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU I I I I I I I I I I I I LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU I I I I I I I I I I I I LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU I I I I I I I I I I I I LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU I I I I I I I I I I I I LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU I I I I I I I I I I I I LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU8 9 I I I I I I I I I I I I LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE
  • 7. OVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVEYOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU I I I I I I I I I I I I I I I I I I I I I I I OVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVEYOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU I I I I I I I I I I I I I I I I I I I I I I I OVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVEYOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU I I I I I I I I I I I I I I I I I I I I I I I OVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVEYOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU I I I I I I I I I I I I I I I I I I I I I I I OVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVEYOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU I I I I I I I I I I I I I I I I I I I I I I I OVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVEYOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU I I I I I I I I I I I I I I I I I I I I I I I OVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVEYOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU I I I I I I I I I I I I I I I I I I I I I I I OVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVEYOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU I I I I I I I I I I I I I I I I I I I I I I I OVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVEYOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU I I I I I I I I I I I I I I I I I I I I I I I OVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVEYOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU I I I I I I I I I I I I I I I I I I I I I I I OVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVEYOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU I I I I I I I I I I I I I I I I I I YOU I I I I OVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVEYOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU ME YOU YOU YOU YOU I I I I I I I I I I I I I I I I I I I I I I I OVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVEYOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU I I I I I I I I I I I I I I I I I I I I I I I OVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVEYOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU 10 11 I I I I I I I I I I I I I I I I I I I I I I IOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE
  • 8. OVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVEYOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU I OVE I LOVE I LOVE I LOVE I LOVE I LOVE I LOVE I LOVE I LOVE I LOVE I LOVE I LOVE “ There will be aYOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU time using a “In technocratic and colorless logo will be the worst thing I YOU times, brands bring warmth, I I I I I I I I OVE LOVE ME, LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE familiarity and trust.”YOU TOO YOU YOU YOU YOU YOU YOU YOU YOU – Peter Brabeck, Nestle in the world.” I I I I I I I I I I I I OVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE – Bill Bernbach,YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU Founder DDB We’re a long long way from that day. I I I I I I I I I I I I The truth is that people like brands. They OVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE not only simplify choices and guaranteeYOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU quality, but they also add fun and interest, provide aspirations and dreams. Some people love them like children, which might explain why I personally know of a 4-year I I I I I I I I I I I I OVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE old boy named Nike, an 8-year old namedYOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU Ferrari and a 12-year old girl named Hermès. I I I I I I I I I I I I OVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVEYOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU I I I I I I I I I I I I OVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVEYOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU I I I I I I I I I I I I OVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVEYOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU LOGO I I I I I I I I I I I I OVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVEYOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU I I I I I I I I I I I I OVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVEYOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU I I I I I I I I I I I I OVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVEYOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU I I I I I I I I I I I I OVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVEYOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU I I I I I I I I I I I I OVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVEYOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU YOU 12 13 I I I I I I I I I I I IOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE LOVE
  • 9. a BRAND IS NOT… a BRAND IS…A Trade Mark point of view(These are legal properties.) Branding is a strategic point of view, not a select set of marketing activities.A Mission Statement(This is a reminder.) customer value Branding is central to creating customerA Logo or Slogan value, not just sound bites and images.(These are your signatures.) competitive advantageA Product or Service Branding is a key tool for creating and(These are just the tangibles.) sustaining competitive advantages.Advertising engineered(They deliver your messages.) Brand strategies must be “engineered” into the strategic planning process. alive Brands get their identity from meanings. Products and services are the blood of a brand. Your organizational culture and standards for action are the heartbeat. logic and emotion Branding is part science and part art. ITEM WORKING ITEM WORKING IN ISOLATION IN ISOLATION A BRAND IS MORE THAN THE SUM OF ITS PARTS. ITEM WORKING ITEM WORKING IN ISOLATION IN ISOLATION14 15
  • 10. Brandshave almostbecomeideologies.16 17
  • 11. “The art of marketing is the art of brand building. If you are not a brand, you are a commodity. Then price is everything and the low-cost producer is the only winner.” – Philip Kotler, Kellogg18 19
  • 12. What is a Brand? To plan for one year,“A brand is the ‘personification of a product, service, or even entire company.’ grow sales. Like any person, a brand has a physical To plan for three years,‘body’: in P&G’s case, the products and/or services it provides. Also, like a person, a brand has a name, a personality, character and a reputation. Like a person, you can respect, like grow channel. and even love a brand. You can think of it as a deep personal friend, or merely an acquaintance. You can view it as dependable To plan for decades, or undependable; principled or opportunistic; caring or capricious. Just as grow a brand. you like to be around certain people and not others, so also do you like to be with certain brands and not others. Also, like a person, a brand must mature and change its product over time. But its character, and core beliefs shouldn’t change. Neither should its fundamental personality and outlook on life. People have character…so do brands. A persons character flows from his/her integrity: the ability to deliver under pressure, the willingness to do what is right rather than what is expedient. You judge a person’s character by his/her past performance and the way he/she thinks and acts in both good times, and especially bad. The same are true of brands.”– Robert Blanchard, former P&G executive BRAND CHANNEL SALES VALUE 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 YEARS20 21
  • 13. 1. 2. The Customer SatisfactionWhat is the What is our core Treadmilldeep need that competence? Daniel Kahneman of Princeton describes the Customer Satisfaction Treadmill.we satisfy? What are we The more we make, the more we spend, the more we want. The faster we get it, the faster we want it. The more convenientWhat is our really good at? it becomes, the more we realize just how convenient it could be. The moreraison d’être? our unreasonable demands are met, the more unreasonable they become. METAPHYSICAL NEEDS EXPERIENTAL NEEDS SYMBOLIC NEEDS FUNCTIONAL NEEDS22 23
  • 14. Brand In a world predisposed to sameness, theretaxonomies are few things in life more satisfying than building brands that disrupt predisposition. Brands move market share. Brands move advertising award judges. Brands move culture. Some do all. Brand has meaning beyond functionality that exists in peoples minds. Part art, part science, brand is the difference between a bottle of soda and a bottle of Coke, a computer and an iMac, a cup of coffee and a cup of Starbucks, a car and a Mercedes, a designer’s hand bag and a Hermès Birkin. Brand is the intangible yet visceral impact of a persons subjective experience with the product, the personal memories and cultural associations that orbit around it. Brands are also about messages – strong, exciting, distinct, authentic messages that tell people who you are, what you think and why you do what you do. Brands that focus on their meanings and values rather than functions. Brands that Brands that are tightly identified have almost become with the product product- product or range of products independent Brands that focus largely on their core functions and purposes24 25
  • 15. Too much THE Most commonadvertising with too issues with brandinglittle meaning? Cannot justify the cost for brand re-positioning. Where’s the ROI? Management doesCUSTOMER VALUE not understand why we need to haveBRAND MEANING a brand strategy.BRAND ADVERTISINGCUSTOMER VALUEBRAND MEANINGBRAND ADVERTISING Management thinks branding is just another logo with a Sales and marketing new tag line. aren’t reading the same book, let alone the same page. Brand vision and company reality do not match.26 27
  • 16. Why brands are in What is a Brand?trouble? Don’t make the mistake of letting brand image take over and become brand identity. It’s only part of the equation, not the answer. Brands are being Brands struggle mass-produced to find their in brand factories own identities There’s a movement of Too many me-too conservatism in brands and too brand investment. Many much me-too advertising.have gone from inspirational Many brands and daring to cautionary have lost their souls. and risk averse. CORPORATE INTERNAL STRATEGY BRANDING Everyone is looking for a save formula. Brand Strategy Brand Image BRAND CUSTOMER IDENTITY ENGAGEMENT Brands have lost Brands are worn their mystique from overuse Consumers understand As brand manuals gets how marketing works thicker and heavier, and they are brand savvy. you know you’re in trouble. Brand Be careful not to Instructional menus Attributes over-market a brand. replace imagination. Brand Associations28 29
  • 17. What is a Brand? What is a brand?A brand is an intangible asset that resides in Today you may have a name and a The trust-based, value-producingpeople’s hearts and minds. It’s defined by trademark, but it will take time (and much relationship called a brand is proof that thethe expectations people have about tangible more) before you have a brand. Brand company is organizationally aligned toand intangible benefits that are developed building is the creation and management of repeat the process and sustain the values.over time by communications and, more inward cash flow with brand equity as the Find and establish your niche. Clarify yourimportantly, by actions! To build a successful savings account. Managing brand is about distinct ability to make an impact.brand means doing the following four things: how marketers and consumers collaborate Determine the desired relationship to create meanings. Brand building is not an between your customers/prospects and1. Making a promise option. ROI is only relevant when considering your product.2. Communicating your promise Create intangible, emotional bonds alternative marketing programs. Brand3. Keeping your promise4. Strengthening your promise equity is a big elephant: looking at financial through every customer interaction. returns alone is unacceptable. You must Like people, brand requires a name, aThe tangible aspect of your brand is a understand the whole beast. personality, a character and a reputation.promise. What do you do best? What’s the Brand management is a crucial elementpayoff? What can your consumer count of corporate strategy rather than solelyon? This promise becomes an intrinsic part a marketing function. It helps a companyof your marketing message. In order break away from the pack in creatingfor you to own it, you must communicate shareholder value. Brand strategy is thestrategically and creatively across a viable expression of business strategy.broad media mix. Both your internal andexternal audiences must be true believersof the promise. And the only way tomake them truly believe is to be true aboutthe promise. 1. Making a promise 2. Communicating your promise BRAND STRATEGY CORPORATE STRATEGY 3. Keeping your promise 4. Strengthening your promise30 31
  • 18. Mind over matter Advantages built on emotional values and brand meanings (e.g. Levis, Nike, Starbucks,Psychological differences may seem Coca-Cola, Harley-Davison, Apple, Sony)insubstantial, but in terms of sustainability, are often the most durable.they are often more resilient thanfunctional differences. Intangible emotional associations aredifficult to copy:Once an emotional territoryis occupied by a well knownbrand, it is more difficultto displace than a brand witha functional claim. Personality Trust Timeless Unique32 33
  • 19. products vs.brands A product is built in a factory. A brand is built of trust and relationships A product is an object. A brand is a personality. A product is sold by a merchant. A brand is bought by a customer. A product is easily copied by a competitor. A brand is unique. A product is quickly A great brand is timeless. outdated.34 35
  • 20. Mind over matter Building strong brandsWithout the brand, Apple would havebeen dead. The power of the brand kept Branding is often confused with anthem alive during the mid-1990s when advertising campaign or a corporate identity.their products were lackluster. The brand Companies are still turning to brandingbought them time until they came out as a panacea. Equally problematic are thewith the next runaway hit – the iMac. self-proclaimed branding experts happy For Apple, the brand is always bigger than to sell you pricey snake oil. In novice hands,the product. It is an ideology, a value set. branding becomes a way to obfuscateApple is about imagination, innovation and relative sameness or make promises thatindividualism. can’t be fulfilled, instead of communicating It’s not just about advertising or visual relevant uniqueness and building trustidentity. Brands must be built 360 degrees. and credibility.Branding means that collateral information,meaning, association and value has beenspiced into the very DNA of the brand. Thishas two core components: label and fable.Label refers to all visual elements, packagingand taglines. Fables are the extrinsic aspectof branding attached from the outsideand most often from customer experiences,advertising, corporate trust and customerrelationships. The brand is the totality of whatthe customer experiences: the look andfeel of your office, your community reputation,your awning and signage, your sales andcustomer service people, the way you handlebusiness conflicts and customer complaints. INNOVATION Three key requirements for building strong brands: IMAGINATION 1. Trust between brand and consumer 2. Common identity between brand and consumer 3. Point of difference between brands in a set INDIVIDUALISM36 37
  • 21. branding in a postmodern culture38 39
  • 22. Branding In The Age TransformationOf Brand is a process,Transformation a performanceBrands are transforming themselves. As content is increasingly delivered via To make the story of a brand completeBeyond mere ads and products, they are personalized and self-scheduled social webs, and meaningful, it requires that all offinding new ways to get inside your viewers – not broadcasters – will decide the actors – customers and companies alikehome and be a part of your life as branded when, how, why and what is consumed. – successfully complete transitions fromcontent, branded entertainment, branded And they will dictate who they share that scene to scene and stage to stage. In today’sutilities and branded space. L’Equipe, the consumption with. script, those transitions read like this:Parisian based daily sports newspaper, The question is, What role should brandinvented the Tour de France for one simple play in this age of transformation?reason: to sell more newspapers, brandedcontent with a pinch of engagement. But customers are transforming brands,too. New cultural modes of performanceare emerging from new network-based socialbehaviors and conversations. With over50 million people able to share ideas, opinionsand experiences in a single online space– and generate billions of web pageimpressions every month – these behaviorsand conversations are creating a seismic Interruption is the stage Intrusion is the stage Engagement is the curtain call of thisshift in the traditional balance of power that where old scripts get between what was and what performance. A celebration of theonce existed between customers and shredded, rules get tossed will be. A wild zone of new new reality and the ideas and ritualscompanies. out the window and the ideas and new rituals, it is alive that brought it to life, brands that paradigms we lived by with uncertainty, excitement will occupy centre stage are those are revealed as obsolete. and expectation. This gestative that contribute the new ideas, help The Internet is our Inter- space where customers and facilitate the new rituals, meet the new ruption. It has forever companies create and explore needs and, ultimately, tell the best ruptured the old system brand futures is where we stories. Those who ignore this new of brand control and are right now. reality do so at their own peril. communication. INTERRUPTION INTRUSION ENGAGEMENT40 41
  • 23. distribution is nothing content is everythingWhen distribution is trivial, unlimited and Great content – the kind that truly engagesavailable to all, marketing to a captive – helps customers tell a story, performaudience sitting on a couch in front of a box a part of their life, communicate meaning tois a thing of the past. In fact, this kind of others and be all that they can be. It is,old-world marketing has become adversarial quite simply, cultural.to customers. Having adapted to the In the past, the clearest demonstration ofmedia-fragmented and always-on new content (and brands) as cultural was inreality, they seek value by searching, the subculture. Punks, mods, ravers, skaters,discovering and sharing their very personal church-goers, artists, bikers and othersbrand caches with peers – not waiting made commodities come to life throughfor you to interrupt them with unwanted performances like no other consumersmessaging. on earth. Today, because of the scope and Broadcasting is in trouble, and user- reach of social media, we are in an age ofgenerated videos are just the beginning. the post-subcultural. The Hipster, a mash-upThe social-casting of YouTube will of subcultural traditions, has become theevolve and, in the process, so too will emblem of insider-ness made accessible toconsumer behavior. Instead of passivity, all with the Internet.the experience flow of tomorrow will Just as subculturalists were the creativebe characterized by immediacy, flexibility, class of brand dissemination, modification,portability, permeability, fluidity, alteration and transformation, so now areinteractivity, mashability and ownerability. the millions of people around the world who, With the emergence and convergence through social media, have access to insiderof the mobile phone, the Internet and knowledges, practices, experiences,location-based-systems, consumers also performances and collaborative communities.have immediate access to co-workers, This occurs through YouTube, Flickr,friends and family members. Between Twitter, Facebook and the thousands of online contentgetting used to and being born into advice, support, co-creation and retaila connected age, they are naturally and portals. The relentless virtualization of socialincreasingly drawing on participation life, the marketing of niche-interactions,in various networks for information, the sharing of experiences and the out-assistance, support and recommendations. sourcing of work means that less and less of Creating great products, services and our daily lives are produced and consumedcontent is paramount. Content? Yes, at home. Rather, we are performingcontent. An integral part of any product or ourselves more in public, more collabor-service and their related experiences, atively and more than every throughcustomers will consume only what’s relevant the kinds of very social networks that onceto them, what best serves them, and what existed solely in subcultures.truly entertains them – not what is marketedto them by you through repetition. Engagingthem will require branded experiencesrich in content that strengthen contextualinvolvement and consumer connection.Within such experiences, the density andintensity of polysemic, multi-origin,co-created and fragmented communicationwill make Baudrillard’s hyper-reality seemas antiquated as TV.42 43
  • 24. the personal brand What is the problem? “We spent eightIn the age of the Personal Brand, “We hired a brand consultant Many companies are simply not ready tocommoditization is permeating every aspect and developed a great deal with or anticipate identity obsolescenceof daily life. Style, taste, identity and like they anticipate the obsolescence of months and a brand strategy. Our adindividuality have become central to what agency went on to create products or business models. Despite thewe expect from our experiences in and produce an ad best efforts of management teams, manyhealth care, learning, dating, news, clothing,food, travel, home furnishings, com- lot of money on campaign that far exceeded our capability to deliver can’t adapt to shifts in the competitive environment because the required brand-munication, sports, entertainment, sexuality,spirituality, birth, marriage, babies and a brand strategy the brand promise. We ended up with disappointed driven adaptive response is inconsistent with the company’s core identity. Any brandburials. Twenty years ago, in the socialmainstream, this wasn’t the case. Sub- and all that’s customers, internal conflicts and brand credibility exercise will only widen the gap between the brand and the corporate core identity.culturalists were particularly picky abouttheir purchases, but the average changed is the erosion.” – CEO, Telco logo and tagline.”consumer had a less refined sense ofassembling their self through productsand services. Today, instant communication has – CEO, Financial Services Companyblown the doors clear off of the old-worldmedia and advertising industry. Tastegurus, micro-brands, blogs, chatters,Friends, Tweeters, citizen journalists andthe searchability of style have foreverchanged the how, what, where, whenand why of consumption. In the newfree-for-all of ideas, opinions, reviews andexperiences, individuals with greateraccess to information strive to define anddisplay their Personal Brand, niche isthe norm, cool is hyper-commoditized andbranding becomes as much a bottom-upphenomenon for customers as a top-downpriority for companies One result is that we have becomedesperate to socialize the profane. Distracted Brandsby the pace of change, unfulfilled in ourpersonal lives and feeling disempowered byour work, many of us turn to celebrities,rock stars, designers and brands to cultivatemore meaning in life. But when work isempowering and life is meaningful, interestand engagement in high-consumptionlifestyles will wane. De-marketing will happen.Until then, a brand’s role is to help tocreate meanings in everyday life through “I want to be cool.”commodities. Consumers44 45
  • 25. Saving Your Many B-school case studies have chronicled Can social mediaZombie Brands brands brought back from the dead. But save the for every success, there are hundreds of Zombie Brands?Zombie Brands, Dinosaurs Brands, Ghost failures: companies that tried to revitalizeBrands or Graveyard Brands are what old brands by hiring new agencies and The Social Media Generation haspeople used to call brands that customers throwing endless amounts of money into phenomenal influence over the fate ofhave either completely abandoned or advertising in hopes of rebuilding, even brands. Active, mobile and vocal,that are simply hanging on by a thread, when there wasnt a relevant product, service they share the joys, angers and frustrationsusually at a Dollar Store or at Costco or sound strategy behind the initial move. of their daily experiences with anybodyin a totally unrelated product category. How bad is your situation? Here are the three and everybody. In doing so, their digitalSome have gone through unsuccessful most common scenarios: connectivity becomes the web that weavesrevitalization efforts, others exist only in Brand Communities. Separated byemerging markets, a few have simply their geography but bound by their lovelost relevance in their core market place(Xerox, Oldsmobile) to be used casually My brand is sick. of a particular brand, citizens of these communities can be identified by fouron products totally outside their product Market changes direction and the brand core markers:category (Teac, RCA, Polaroid etc.). become irrelevant. Everyone (advertising, • Shared interests product design, promotions) used to • Shared valuesIf you happen to own a Zombie Brand, understand what the brand means and they • Shared ritualswhat can you do? all stick to it, believing it connects to • Shared purposes something larger and more enduring. But1. Invest and attempt to revitalize it2. Milk it one day they woke up and realized there The commercial, mass‐mediated ethos in3. Position it for the emerging market was a big disconnect. Your brand is stuck in which Brand Communities are situated4. Sell it for whatever it’s worth the past. Your brand is IRREVELANT. affects their character and structure and5. Dump it gives rise to their particularities. From a brand and marketing perspective, this is theConsumers with special relationships toZombie Brands often have sentimental My brand is most disruptive trend. It means that Social Media, not advertising, has become dying.reasons for continuing to make purchases the conduit for communication and thator for giving them a second chance. But customers are the collective source of truththe cost and risk of bringing a brand back for brands. Given the right new content,to life is enormous. If this is your choice, The brand is becoming boring. It doesn’t the Brand Community is a possible cure formake sure the decision to do so is based create excitement for customers or even the Zombie Brand.on sound logic. If you run a large portfolio, employees anymore. Younger consumersthe questions will be: Which brands are think of it as their parents’ brand. Thisworth the revitalization effort? And Why? is common with brands that have been successful and achieved market leadership. In fact, it’s often the result of being too successful. Your successful past has made you lazy. Your brand lacks customer ENGAGEMENT. My Brand Has No Vital Signs. You’ve ignore your brand for too long or simply let it ride to expiry. Every drop of energy and goodwill has been squeezed out. It has lost its power to capture your customers (or even your own) imagination. Your brand is a shell of existence. It has been reduced to nothing more than a LOGO.46 47
  • 26. strategic perspectives of branding48 49
  • 27. “We have a surplus “We also have a surplus The average consumer is exposed to as many as 30,000 messages per day, of of similar companies, of similar brands, which more than 3,000 are branded. Many studies indicate that less than 10% of prime time ads have clear positioning. employing similar having similar attributes, Between 1999 and 2000, the number of new packaged goods introduced people, with similar with similar marketing increased by more than 20%, the largest increase in a decade. Most of these educational back- messages and were “me-too” products destined to be lost in the crowd and to reduce some grounds, working slogans, coming up brands to a near-commodity status. In a world where brands abound, in similar jobs, coming with similar brand competition is increasingly intense and the speed of competitive responses is ever shorter. The race is on to rise above the up with similar ideas, claims, with similar throng of brands and secure customer loyalty. But all too often, companies fall into producing similar quality, selling at similar the trap of thinking short-term, being overly ambitious or lacking a brand strategy. things, with similar prices. Welcome to prices and similar the Surplus Economy!” quality.” – Idris Mootee– Kjell Nordstrom and Jonas Ridderstrale, Funky Business best practices + strategic outsourcing + Enterprise Resource Management =? Not only are brands similar, even the companies are now more or less the same or nearly identical50 51
  • 28. Branding and Economic evolutionMcDonaldization In the Surplus Economy, the marketingMcDonaldization is everywhere. Individualism technology is often oriented towards battle is a battle of the brands – aand diversity are replaced by efficiency greater control and more consistent quality. competition for brand dominance.and social control. It is the process by which The great source of uncertainty and Companies will recognize that brands arethe principles of the fast food restaurant unpredictability in a rationalizing system is a company’s most valuable assetsdominate more and more sectors of our people — either the people who work and recognize that it is more importantsociety throughout the world. within those systems or the people who are to own markets than factories. McDonald’s has 30,000 restaurants in served. Branding advertising is used to The only way to own markets is to own121 countries, 60% of which are outside the put the human elements back. The warm market-dominant brands. The brandUSA. Shopping centers are everywhere and smiling faces in TV commercials battlefields expand beyond advertisingand the shops and merchandize are mostly are intended to convince customers about media and be fought on many grounds.the same. This trend is visible in many “calculability” over “individuality”.other businesses from toys, auto-repair, “(calculability) involves an emphasis on things that canconvenient stores, consumer electronics to be calculated, counted, quantified. Quantification refers tobooks and general merchandize. The a tendency to emphasize quantity rather than quality. This leads to a sense that quality is equal to a certain, usually“control” and “system” components are key. (but not always) large quantity of things.”Replacement of human by non-human The Battle of Brands SURPLUS ECONOMY INFORMATION ECONOMY SERVICE ECONOMY INDUSTRIAL ECONOMY AGRICULTURAL ECONOMY VALUE TIME52 53
  • 29. Customer Fournier’s Customerrelationships approach: relationshipsMost businesses have a relationship with their customers Meet with consumers (hundreds of people over several Managing Customer Relationships hasthat is based solely on price. That is why so many years) to listen to their life stories, discover their interests become Managing Software Vendorcompanies are having difficulties maintaining their margins. and goals, and hear about the ups & downs of their Relationships. So, what went wrong?The challenge is to figure out how to extend those daily lives. Then ask each person to describe his/her Shouldn’t companies be putting their moneytransaction-based relationships to emotional-based “brand portfolio” and to explain why they choose the back into developing the “R” of “CRM”?relationships. Professor Susan Fournier at Harvard products they do. Marketers and “CRM” vendors setBusiness School has classified the relationships consumers Fournier drew out seven essential attributes of good unrealistically high expectations when theyhave with their brands into fifteen types ranging across brand relationship quality: talk about “relationships”. Shouldthe whole spectrum. They include: they be using a different word instead? “Traditionally, tactical marketing decisions –Committed Partnership Enslavement Interdependence Love and passion regarding packaging and advertising, forUsually long-term and Involuntary relationship Brand is inextricably Consumers feel affection/ instance – are made by different people orvoluntary relationship: a governed exclusively by the woven into consumers’ passion for the products departments. A holistic understandingman is so involved with partner’s wishes or desires: daily life and routine. and may experience of the relationship that consumers have withhis brand of bicycle that he a consumer is unhappy with separation anxiety if it’s a brand can give direction to a company’sbecomes an advocate the local cable provider but not available. marketing activities and result in a strongerof it, singing its praises to has no alternative source for bond between consumer and brand”his friends. the service. – Susan Fournier Harvard Business School Commitment Self-concept connection “A good relationship is an asset. We can Consumers stick with Using the brand helps invest in relationships, and we can borrow the product through good consumers address a from them. We all do it but almost never or bad times either in life issue, such as a need manage it. Yet a company’s most precious his or her life style or in the to belong or a fear of asset is its relationship with customers.” product’s life cycle. growing old. – Theodore Levitt Harvard Business School Intimacy Partner quality Consumers describe a Consumers seek certain sense of deep familiarity positive traits in the brand with the product and such as dependability, an understanding of its trust, worthiness, and attributes. accountability – the same qualities as one would look for in a best friend. Nostalgic attachment brand brings back memories either because it was used at an earlier time in life or because it was associated with loved ones54 55
  • 30. Rise and riseof the brandThe very technologies that make it faster,easier and cheaper to innovate alsohelp us to imitate. The game switched frominnovation to imitation. The increasingdifficulty in differentiating between products,services and the speed with whichcompetitors take up innovations will onlyassist in the rise and rise of the brand.Many of our dreams and desires for a betterworld are no longer articulated by JohnKennedys or Martin Luther Kings, norgenerated through personal epiphanies –they are now the intellectual currency ofbrands. When brands connect to inspirationand epiphany – personal, collective orconjured by leaders – they enter into a realmimmune to imitation.56 57
  • 31. Decision map for Decision map forbrand choices brand leveraging Does the brand currently serve strategically (size and profitability) important or attractive segments? Brand Leveraging Strategies Yes No Does the Are there brand qualify as any other strategic a Leadership reasons to retain Brand? the brand? Yes Yes No No Line Brand Extensions Extensions Does the brand have the Does it add Can the brand potential value to other be leveraged in to become a existing brands or new markets? Leadership businesses? Brand? Yes No No Yes Is there Horizontal Vertical Another Product Brand Are we willing Does it add Co-Branding a reason to keep Extension Extension Class Licensing or can we afford value to other or further develop to invest in existing brands or a brand in this the brand? businesses? category? No No Yes Yes No Yes Can the brand be extended as a product line? Yes No Yes Up from Down from Core Brand Core Brand NO DEVELOP BRAND KEEP LEADERSHIP INTO SPIN-OFF PRODUCT- ROLL-UP AS NICHE BRAND LEADERSHIP OR DIVEST LINE BRAnd BRAND58 59
  • 32. Branding challenges Why invest Branding rationale Strategic in brands considerationsThe challenge for brand management The traditional thinking around brandingis finding ways of connecting with was to endow a product or service with If consumers are not prepared to pay forcustomers that provide value, substance,significance, meaning and usefulness Companies unique characteristics through the creative use of name, slogan, packaging and differentiating activity by way of perceiving or appreciating any unique qualitiesbeyond their current product and servicedefinition and those offered competitively. investing in brand advertising. In a world where there is a muddle of images and messages, between brands there would be no economic justification for branding exercises. In anyThis requires deep understanding ofpeople’s lives. It means being smarter at building basically however, it is increasingly difficult for a brand to rise above the noise to be product category, if differences are not valued buyers tend to discriminate between brandsdeveloping real relationships. It alsomust be a dynamic process in keeping up have three simple noticed and remembered. A more sophist- icated and strategic concept of branding on the sole basis of price and availability. reasons for doingwith changes in ever changing customer is needed. The rationale behind branding is The question is:wants and needs. One of the real keys to all about creating differentiation.long term brand success is investing socustomers like us, trust us, value us, keep so: to drive Differentiation leads to positive discrim- ination, and large or at least profitable brand Does it reallycoming back to us, are willing to pay apremium for us, and choose to take us into customer loyalty, share. Brand marketers must deliver tangibles and/or intangibles that differentiate make sense totheir lives. For the most part, however, today’s to maintain a brand. This differentiation not only needs to be perceived but also valued. invest in buildingorganizations work against this type ofbrand success. The designs of most price premium, or It is logical to assume that the main objective of branding is to create high invol- brands in low involvementbusiness organization are disaggregated. vement situations. If the branding exerciseCustomers don’t think or act in organ-izational silos, but organizations do. This to increase fails to deliver a relevant and valued differentiation to its targeted involvementoften blocks true understanding. Howcan we ever hope to understand customers revenue growth. segments, then are its efforts are unsuccessful? markets?when we only concern ourselves with The real challenge Or, is it even possible to generatea small part of their lives, attitudes and high brand involvement in the face of lowbehaviors (that are defined by our category involvement?organizational role and responsibilities)?Brands are greater than the sum of is not just buildingtheir parts – and so too are customers. great brands that drive revenue growth and loyalty, but building them at a lower cost and faster than your competition!60 61
  • 33. CategoriestransformationA good branding strategist is capable ofcompletely transforming categories tocreate new categories or sub-categories. Personal diaries were probably notconsidered “expressive” until the advent ofthe Filofax brand. Similarly, owning a TVmight be considered low in self-expression,but an iPhone makes a statement. Otherexamples include Apple’s iMac, HermanMiller’s Aeron chair, a Burberry raincoat,Louis Vuitton bag or an Aston Martin. Whilecredit cards and fine writing instrumentswere once status symbols, “expressive”items are now replaced by personal electronicgadgets like iPhone and Blackberries. Says nothing about me Says a lot about me now Says a lot about me Says less about me now A CHAIR A PEN A TELEVISION A CREDIT CARD A CELL PHONE A LAPTOP62 63
  • 34. Brand and consumer The involvement gridpersonalityBrand personalities help firms differentiatetheir products from the competition andbuild brand equity (value).“Stand for something or you’ll fall for anything!”Consumers don’t buy products, they buythe personalities associated with thoseproducts. Big K cola and Coke are equal intaste tests … but not in market share. Consumers don’t buy on taste alone. Brandpersonalities help consumers define theirown self concepts and express their identitiesto others. People find meaning onlythrough those brands with personalities,not from products. HIGH INVOLVEMENT SUV Designer Hand Bag Mini Van Personal Computer Plasma TV Cigars INFORMATIVE AFFECTIVE Digital Camera Skateboard Perfume Spaghetti Sneakers DVD Player THINK FEEL Air Conditioner Tea Bags Toaster habitual SATISFACTION Milk Diapers Detergent Paint Pencil Bottled Water Salt LOW INVOLVEMENT64 65
  • 35. Advertising and What more canbranding be branded?Brand management has been taking Companies have been successful inplace for years without a unified theory. branding bricks, paper, chickens, diamonds,Common sense branding is widely milk, salt, sugar, oranges, bananas,practiced. There are fundamental questions microprocessors and even air, water andabout its underlying principles. Many sand. Universities, cities, charities andequate great creative ideas and advertising celebrities have been successful in brandingcampaigns to successful brand building. their cultures, causes, streets and styles. The romanticized view of advertising is And while the no-brand or anti-brandthat it can change what people think about movement has successfully made it’s point,your brand. Advertising does not change we all know that no logo is still some brand.what people think about your brand (which So how much is too much? Is there ais always difficult). It only has them think saturation point where we’re sopping wetabout your brand. from too much branding, a tipping point Despite a recent boom in articles and where we fall into the abyss of advertisingbooks on the subject, branding remains an and product identification.art. There are unrealistic expectations Maybe. Probably not. Actually, only ifthat methodologies or approaches are out and when the best brands cease to engagethere that can consistently, repetitively or consumers on levels of symbolic andsystematically create great brands. We have social interaction.solved only one third of the brand puzzle. WHAT WE KNOW WHAT WE DON’T KNOW66
  • 36. The brand as a sign Brand Customer Interactions and RelationshipsSocial and symbolic interaction beginsat the level of the sign. Like a sign, a brand This is the business case for brands. It’s both limited and limiting. It suggests “The brand Matrix is a setdoesn’t exist within the global system that brands exist in a closed systemof brands except by opposition to and inhabited only by products, their creatorsdifference from other brands: you need and managers. For an anthropologist,your own signifier (Swoosh) and signified(victory) to make your brand (Nike) part the brand is a set of relations between people in time and space. Like the of relationsof the consumer lexicon. Without differen-tiation, you’re not communicating anything sign, it is a communicative tool that helps people choreograph consumption, betweenof substance to consumers. Withoutsubstance, they won’t have any reason facilitate the flow of social relations and identify the value and appropriateness products into care about you, anything to sayabout you and, most importantly, any of our relationships with each other. time.”reason to make your brand come tolife between themselves. – Celia Lury, Brands: The Logos of the Global Economy Frequent Brand Customer COMPETITION Interaction ATHLETICISM Brand maintenance Brand building consists mainly VICTORY efforts are required to sustain of mass media advertising, the overall brand presence. point-of-sale and packaging. Event-driven interactions occur Customer seldom needs only during a short and to have contact with brand intense period of time. owner. Channel partners Examples: Real Estate Agents, control most of the customer Car Dealers, Funeral Homes, experience. Most fast Private Bankers, moving consumer products Cosmetic Surgeons etc. belong to this quadrant. Close distant Brand-Customer Brand-Customer Relationship Relationship Brand building is mostly driven Brand building impact is vastly by customer experience. influenced by the frequent Internal branding is vital and interactions with customers by operationalization of the PERFORMANCE front line employees. brand will need to be allocated A lot of marketing automation is with considerable resource. done through call center The resulting impact can and the internet due to be sustaining and build strong economic reasons. Examples: competitive barriers. Credit Cards, Utilities, Examples: Hotels, Airlines, Mail Order Merchants, Retail Banking, Retailing, NIKE Cable TV etc. STREET STYLE Restaurants etc. INFrequent Brand Customer Interaction68 69
  • 37. Is there a theory?Why do we need a theory for strategicbrand management? Because theory iseminently practical. Managers arethe world’s most voracious consumer oftheories. Every time a brand marketingdecision is made, it is usually based on Branding by Branding bysome implicit understanding of whatcauses what and why. The real problem is Planning Customer Experiencethat they often use a one-size-fits-all Procter & Gamble Starbuckstheory. There are many ways to build greatbrands. Here are the four basicapproaches:1. Planning Coca Cola Bodyshop Nestle Southwest Airline2. Imagery3. Customer Experience4. Self-Expression Intel Hertz Gillette Disney Kodak Marriott GM Google Branding by Branding by Imagery Self-Expression Abercrombie & Fitch Louis Vuitton Calvin Klein Gap American Apperal Prada BMW Swatch Absolut Apple Milk VW Beetle Tag Heuer Allsteel70 71
  • 38. Branding by Branding byplanning imageryHere branding is approached as part of Here branding is approached in a morea formal strategic planning process. Most of functional manner. Usually advertisingthe time this occurs in the context of agencies take a leading role and advertisingstrategic marketing planning. The typical is linked to branding. The levers of brandapproach uses portfolio and product life building consist mainly of TV commercials,cycle concepts together with overall market posters and print advertisements.overviews and competitive intelligence. In some cases, a first showing of aThe information is distilled and analyzed 60-second TV spot during the Super Bowl isthrough each individual brand’s performance a milestone of the brand building effort.in terms of market share and margin Visually stunning posters and magazines incontribution. The heart of the exercise is national magazines such as Vogue orpositioning to ensure that products cover Vanity Fair are also used. Marketers andall necessary profitable or emerging agencies closely link the brand to creativesegments and use brand to achieve these advertising execution.objectives. Usually, multi-brand organ- Sometimes the burden is given to aizations and category managers assume the celebrated photographer. The Calvin Kleinownership role of the brand portfolio and success is hugely indebted to Bruce Webermanage the brand architecture. The key is and Benetton to Oliver Toscani. Theseto articulate the overall brand strategy photographers gave those brands meaning.and approach (e.g., a master brand approach The risk here is that advertising failureusing targeted sub-brands). This entails means brand failure. But a great campaignfar more than just organizing the brands as produces a very desirable brand and manyindividual performers. To truly optimize products and advertising agencies came totheir value requires a dynamic framework fame with just one highly memorablethat makes the most of their inter-rela- campaign. The marketer continues to enjoytionships under a system of brands working the benefits for years.together to drive clarity in the marketplaceand increase synergy and leverage within thecompany’s portfolio.72 73
  • 39. Branding by Branding bycustomer experience self-expressionCompanies see customers taking functional Here companies put the role of brandbenefits, product quality and a positive building partially into the hands ofbrand image as a given. What they want customers. This has long been practicedis products, services and marketing by the luxury and sporting goodscommunications that dazzle their senses, industries as well as the fashion industry,touch their hearts and stimulate their where there’s never enough time tominds. Here the customer becomes the build a relevant and meaningful brandmost important part of the brand. Over that keeps pace with fast-changingthe years many brands have transformed customer needs. Consumers in thesethemselves into experience brands by categories do not want to use thecreating a compelling customer experience. brand to endorse or reflect his or her Starbucks and Body Shop did not use personality; rather it contributes tomass advertising to build brands. Instead, building a personal or individual brand.they put their resources into designing In other words, strong brand identitiesand delivering unique experiences. The deter customers because they dominate.Tiffany & Co. experience consists not The consumer uses the brand as a toolonly of the purchase experience, but also or status symbol, then adds in his or herthe whole experience of giving and receiving own hallmark to express who they are,something special. The Tiffany & Co. who they want others to think they are andtrademark is inseparably linked to the ageless how they see the world and things. Theelegance and quality that define the brand. brand only requires some associatedThe blue box serves as an identifier and meaning so customers can pick, mix andsensory reminder of this, as does the Hermès match with other values or uses he ororange box and ribbons. Yahoo and she identifies with as part of building hisAmazon.com set the standard for online or her “Me” brand. Consumers activelyexperience by relentlessly improving participate in creating meanings for brands.user experiences.74 75
  • 40. Sometimes, they do more than actively Brand success is a case of More Than Of these, Desirability is where brandingparticipate. By transforming basic products Meets The Eye. That Pabst Blue Ribbon has usually enters the picture. But in the caseinto complex signifiers of identity, perfor- enjoyed increasing sales in a dwindling of Pabst Blue Ribbon, Nike’s Air Force 1mance and social membership, consumers beer market since 2002, Nike’s Air Force and Levi’s jeans, branding didn’t enter theoften oversee some of the finer details of 1 has been re-mastered and sold out picture until well into the success curvehow a brand is ‘managed’ in the real world. in more design manifestations than any of these brands. One day, maybe after With help from Marlon Brando to Dee Dee product maybe ever and, although the fumbling through sales reports, someone inRamone to the kids they stood for, work last few years haven’t been kind, Levi’s 501s an office woke up to the fact that kids onwear first sewn up in 19th Century San have been a fashion staple for over the street made these brands hot, not BrandFrancisco and then ripped around the world 50 years is testament to what it is that Managers or media buys.became the global signifier of youth culture. transforms products into brands: Thanks to early B-boys in Baltimore,Philadelphia and New York City, a 1982basketball sneaker with no advertising Usability Does it work for me, work well and fit Does that mean I can’tor marketing budget became an enduring into my life?icon of global hip hop culture. Consumability architect And with Portland bike messengers latchingon to its underdog status and bar discounts, Does it taste good? Look good? Feel good?a down-and-out beer became a celebrationof American low-brow culture. Performativity Does it help do/say/be/show something consumer important? Desirability attraction Is there a social, cultural or personal need it fulfills? to my brand? No. What it means is that consumer cultures and communities are often best left to their own devices to build themselves from the ground up with their own rules and regulations. With a little field exploration to determine the boundaries that these cultures and communities wish to keep, permeate or dissolve between you and them – and with a healthy respect for those boundaries should you want to maintain your most loyal consumer base - you might collaborate, nurture or simply help perpetuate the conditions under which they will continue to thrive.76 77
  • 41. managing brand meaning78 79
  • 42. Most common Where to start?confusions If a company wants to be regarded in aPeople often confuse a new name or logo People often confuse corporate Identity certain way (brand identity), everything mustwith branding. Many companies have with corporate branding. The “corporate support that desired identity.been led to believe that if they get a new identity” approach is preferred by design Does the corporate/business strategy andbrand name, logo and marketing materials, firms in the business of logo and brand name the company’s execution against it supportthey’ve solved the branding problem. This development, letterhead design, stationery that desired identity? If so, then the desiredis the number one mistake most companies and business forms, uniforms, shop interiors, brand identity may be appropriate (obviously,make when it comes to branding. This etc. However, brand name and logo are there are a lot of other considerations).is a costly proposition, and the end result not the most important part of corporate If not, the brand identity will not be attainablemay not produce meaningful changes branding. What really matters is what the until alignment is achieved.to the bottom line. brand name and logo stand for, the trust they Alternately, it’s appropriate to use the have earned (and will earn) with customers. desired brand identity as an “end state” for We should all aspire to build trusted brands company management and employees because they retain loyal customers for to visualize, to drive change and support the years – or even a lifetime. corporate strategy. Establish a strategic According to Wharton Professor process to allow your company to realize that J. Reibstein, the actual name of a company vision over time. The company strategy doesn’t make much of a difference. and brand strategy grow together towards a What companies end up doing is a significant common direction. amount of advertising and creating an image around the name. Start with Brand Strategy or Business Strategy? Start with Brand Identity Everything a company does should come from this Brand Identity as a final goal Everything a company does should work towards this80 81
  • 43. Managing brand Brands with lower brand meaning simplymeaning cannot support many extensions. For brand extensions, answer these questions:If a brand does not have vital consumer (based on past performance), Nestlé’s 1988 companies aggressively expand their Is the extension consistent with your longermeaning, then it is not worthwhile investing acquisition of Rowntree was about the product range targeting different segments. term brand vision?financially and organizationally in its future advantages that could be conjured Mercedes owns the word engineering,leadership. It is not worth the time and from the latent essences and meanings BMW performance, and Volvo safety. Does the extension actually add value toresources to push it or to make it a of its brands. Yet when Mercedes launched the C-series your brand?rallying point for the skills of the company’s Al Ries and Jack Trout wrote that “owning to appeal to younger segments, BMW Are you able to deliver on the brandedpeople; nor is it worthwhile living the a word in the prospect’s mind” is the launched the 7 series for those who customer experience?value relationships that emerge from the most powerful concept. This occurs when appreciate state-of-the-art engineering andbranding process. the association is so strong that any word Volvo revamped its product range with Is the benefit consistent with your Conversely, if a brand does have vital is immediately linked to a brand. They a sportier look to suggest speed, those positioning?(and self-perpetuating) consumer meaning, insisted that “no matter how complicated associations quickly became meaningless. If this extension fails, is it a major or minorcompanies discover that there are more the product, no matter how complicated setback for your brand?significant similarities than differences among the needs of the market, it’s always better toconsumers in their sphere of business focus on one word or benefit rather twoas they market a brand’s essence around or three.”the world. This is often true of any single product Rowntree failed to recognize that an or category brand, but today’s brands haveimpulse-grabbing concept like “have a break, become very sophisticated. Owninghave a Kit Kat” could capture consumer category words and benefit-related wordsimagination and establish a global and local are not enough. Competitors will try to‘time-out’ place in consumer lives. Nestlé undermine this association. Instead, owndidn’t. Appreciating that Rowntree’s leading values beyond the narrow focus ofbrands had enough meaning invested in functional benefits. Benefit-related wordthem to be worthwhile, they purchased the association is less powerful when quality,company. More than just a US$4.5 value service and design are at par and HIGH Most meaningful and most difficult to imitate, but hardest to create, deliver and sustain Beliefs and Values Level of Brand Meaning Benefits Bottled Water Regular Jeans Attributes Easiest to deliver, but least meaningful and very easily imitated Regular Coffee LOW LOW HIGH Degree of Product Differentiation82 83
  • 44. BrandBrands and customervalueWhat is the difference between a Value’s elusive meaning AwarenessBrand Promise and a Mission Statement? Value is a simple word with a complexThe basic difference is one of perspective. meaning. Value is defined in the mind ofA mission statement generally articulates the customer. Yet, value is neither a is NOTan organization’s internal perspective constant nor even a consistent impression.regarding direction and objectives. On the Value depends both on situation andother hand, the Brand Promise is written context. A customer’s perception of valueprimarily from the customers’ perspective, can and usually does change with time the same asarticulating the essence of the brand’s and circumstances, often unpredictably.benefits (functional and emotional) Certain attributes of a product or serviceexperienced through a brand’s products may be valued while others are not –and services. some features may be valued negatively. Brand Alternatives affect value perceptions, and choices are constantly expanding. Changing needs affect value perceptions, but those needs constantly change too. Differentiation In spite of the volatility of value’s meaning, most of the time people form relatively stable perceptions of a brand’s image, reputation and value promise. Brand marketing’s role is to bring the two together. brand promise mission statement from a client’s from the external organization’s perspective internal perspective84 85
  • 45. When to invest in Is it pricebrands or is it brands?Despite the lip service paid to developingbrand strategies and investing in brandingefforts, many brands are sill moving towardscommoditization. They are becoming muchmore well-known and yet less differentiatedin the minds of consumers. You must askyourself these questions before you investheavily in building your brand:1. What is the level of achievable brand differentiation in your category or industry?2. Do you have a sound growth plan as well Price is More as a growth mind-set in place to capitalize on your brand equity as a result Important than Brand of your brand investment?3. How will your existing customers respond to your increased commoditization? Online Bookstore Rental Car Office Supply Store Brand is More Important than Price Bookstore Beer Bottled water Liquor Gas Station Automobile = ? Long Distance Telephone Provider Cola Cellular Phone Personal Computer Provider Brokerage Major Household Appliance Motor Oil Source: Market Facts – Copernicus 200086
  • 46. Rethinking loyalty brand metricsMany consumers tell researchers that they Metrics provide direction, not control.are perfectly happy with the brands they They monitor progress to successare using, yet jump at the next opportunity to prevent firms from driving blindfold.to switch brands. Brand awareness andsatisfaction are poor predictors of humanbehavior and we should not be puttingtoo much emphasis on them. Loyalty has two different meanings:Loyalty due to a lack of choice orpure convenience vs. loyalty as a resultof commitment Metric Measured by Relative Consumer preference or Satisfaction satisfaction as % average for market or competitors Salience Relative market awareness Commitment Index of switchability (or similar measure of retention, loyalty, purchase intent or relationship bonding) Relative Perceived Perceived quality satisfaction Quality as average % of market or against competitors Relative Price Market share (value) or I am with you I am with you Market share (volume) because I really because you are love you. convenient. Availability Distribution (e.g. weighted (you are the only one) (there was no one else) % of retail outlets carrying the brand)88
  • 47. The brand loyalty who’s winning?myth: Does MarketLeadership =Loyalty Leadership?If not, then you need to decide which oneis your Prime Branding Objective. In a recent worldwide survey, Young &Rubicam surveyed 30,000 consumers and6,000 brands and found that the way tobuild brand equity was to focus on differen-tiation, not awareness. Their researchfound that the traditional F.R.E.D. (familiarity,relevance, esteem, and differentiation)approach to marketing was not as effectiveas a strategy that emphasized developingproduct differentiation over awareness. market leader consumer consumer Market Leader = Loyalty Leader? Product Market Leader’s Brand Loyalty Category Loyalty Rate Leader Rate loyalty leader consumer High Loyalty Rates Cigarettes Marlboro (42) Tareyton (74) Cold Remedies Contac (38) Bayer DCT (50) Source: Don Johnson ‘A Re-examination of the Process of Branding’ Harvard Business School Headache Remedies Bayer (33) Tylenol (45) Medium Loyalty Rates Toothpaste Crest (38) Ultrabrite (39) Cooking Oil Crisco (36) Mazola (39) Cola Coca Cola (29) Tab (43) Low Loyalty Rates consumer Facial Tissues Kleenex (18) Puffs (28) Paper Towels Bounty (17) Brawny (22) Aluminum Reynolds (17) No-name (17)90
  • 48. “You can’t survive floating on the tide, assessing the competition, conducting surveys to find out what your customers want right now. What do you want? What do believe in your ‘it’ you want to tell the world in the future? What does your company have that will enrich the world? You must believe in that ‘it’ strongly enough to become unique at what you do.”– Jesper Kunde, A Unique Moment92 93
  • 49. PRoducts vs.marketsAs product spaces become modularized,componentized and compartmentalized toaddress the individual, customized targetedneeds of markets, the correspondentmarket space and the value chains in thembecome more integrated. In a sense, products disintegrate whilemarkets become integrated. This is forcedonto ever more expansive value chains. Individual Products Integrated Markets94 95
  • 50. The colonization of physical spaceis now extending to the mentalspace and happening at an evenfaster pace. Companies used to be product producers Courtesy of Apple Computer, Inc. Now they must become meaning brokers96 97
  • 51. earless unexpected bold radicaeamer resolute poetic undaunt assy daring adventurous gent“WHO ARE YOU [these days] ?” and WHAT can youuristic individual power unwave do for me? – Tom Peters, Management Guru vocative idyllic visionary wild sndaunted soulful caring dynamthentic brave unorthodox dari tful kind innovative curious hu guing active uncommon irrever ool absolute passionate joyfuusual technological fun sensib 98 99
  • 52. The real innovators’dilemma “The idea that businessInnovation alone does not create value. is just a numbers affair hasIt simply offers design and engineeringfeats, not things that excite real people. The always struck me as preposterous. For one thing,true innovator’s dilemma is how to buildbrands that create barriers for competitionas innovative products or technologiesbecome commoditized. Innovation alone isnot the answer. I’ve never been particularly You must get beyond innovation.You must make the connection between good at numbers, but I thinkinnovation and customer value. Theconnection is made through the brand. I’ve done a reasonable job with feelings. And I’m convinced that it is feelings – and feelings alone – that account for the success of the Virgin brand in all of its myriad forms.” – Sir Richard Branson, Virgin Group BRAND competition Innovation customer value the brand the brand as a as a barrier to connection competition to customer value100 101
  • 53. If you want to build a company “As chairman and CEO, my job is to provide a corporate structure and culture thatthat sustains growth and enables our cast members to perpetuate the values and traditions that fuel the Disney magic … I am, in effect, the chiefshareholder value, would you brand manager.” “I take my responsibility as a steward ofrather your CEO was a the brand very seriously: to protect it, enhance it and try to ensure that it is evenChief Emotions Officer or a more valuable and beloved in the 21st century than it was in the 20th. It’s aChief Numbers Officer? responsibility I share with all 120,000 Disney cast members around the world. We all know that the Disney brand is our most valuable asset.” – Michael Eisner, Disney Value – + =102 103
  • 54. Companieswillthrive “We are in the twilight of a society based on data. As information and intelligence become the domain of computers, society will place more value on the one human ability that cannot be automated: emotion. Imagination, myth, ritual – the rich language of emotion – will affecton everything from our purchasing decisions to how we work with others. Companies will thrive on the basis of their stories and myths. Companies will need to understand that their products are less important than their stories.”the – Rolf Jensen, Copenhagen Institute for Future Studiesbasisoftheirstoriesandmyths
  • 55. TrueLoyaltyIs “Most people can’t understand what would drive someone to profess his or her loyalty for our brand by tattooing our logo onto his or her body – or heart. My fellow employees and I understand completely. We also understand very clearly that this indescribable passion isAbout a big part of what has driven and will continue to drive our growth.” – Richard Teerlink, Harley-DavisonCommitment
  • 56. emotional branding“A great brand taps into emotions. Emotions drive most, if not all, of our decisions. A brand reaches out with a powerful connecting experience. It’s an emotional connecting point that transcends the product.”– Scott Bedbury Nike, Starbucks 1. meaning 3. connectivity 2. authenticity 4. relevancy108 109
  • 57. “A great brand is a story that’s never completely told. A brand is a metaphorical story that connects with something very deep – a fundamental appreciation of mythology. Stories create the emotional context people need to locate themselves in a larger experience.”– Scott Bedbury Nike, StarbucksOnce upon a time… very important: the story never ends110 111
  • 58. “Most executives have no idea how to add value to a market in the metaphysical world. But that is what the market will cry out for in the future. There is no lack of ‘physical’ products to choose between.” – Jesper Kunde, A Unique Moment [on the excellence of Nokia, Nike, Lego, Virgin et al.] products in the metaphysical world products in the physical world 112 113
  • 59. Marketer as healer what’s your healing benefit?What more can you do to today’sconsumers’ already battered brain? More The new reality for marketers is that onlynew products, more new services, those offerings that go beyond the need formore out-bound direct marketing phone superior product quality, competitivecalls during dinner time and more stress? pricing and emotional driven image-buildingIf others are selling stress, then the communications to deliver some healingmarket is need of products that heal. benefit beyond the functional purpose of the product itself will have enough consumerHow about the marketer appeal to break through the defense. This will be a new competitive dimension.as Meta-Physician and From recycled to sustainable to CSR and beyond, doing good unto ourselves, our consumers and others will differentiatethe Brand as Prescription? the past from the new present, the leaders from the followers. IO R Q U ALIT Y SUPER PETITIVE PRICING COM AL C O M M U N IC A O TI O N TIO EM N G BENEF ALIN II T HE customer appeal114 115
  • 60. The challenge The solutionHow can you address and fulfill the In the space between brands and consumersconsumer’s deepest needs and wants – exists a complex web of personal, socialparticularly if you’re not in the pharma, and cultural relationships, perceptions,cosmetics or entertainment industry? meanings, actions, reactions and interactions. It involves the deepest understanding of Understanding that web and, morewhat the consumer cares most about importantly, appreciating and celebrating itand what state of mind they’re in and after. for its complexity – and for how everyAt the heart of an effective brand strategy little vibration across it could signal impendingphilosophy is the belief that nothing is so doom for your brand – is absolutely keypowerful as an insight into human nature, to cultivating the kinds of authentic, dynamicwhat compulsions drive consumers, what relationships with consumers. So howinstincts their actions and how they do you do that? By nurturing a brand cultureperform – even though language so often that is intensely critical, introspectivecamouflages what real motivations. and research centric. Here are five ways to get that culture started. 1. If your thinking is locked in a database, break out of it! Numbers can be a prison. They reveal patterns, not people. Instead, develop a culture with an insatiable appetite for qualitative research. 2. Turn your focus groups into fieldwork. No amount of coffee, donuts and cash-on-completion to taste chocolate bars or describe shopping patterns will mine the kind of critical, deep insights you need. Stop creating and controlling the context in which you learn about your consumer. 3. Prioritize what people DO over what they SAY. Interviews are good, but the most valuable answers are Brands consUmers Brands consUmers in the consumer’s actions. How they reflect, refute or reveal layers of articulated and unarticulated need and desire lead to the deepest insights. 4. Mash up your staff. Send Brand Managers out into the field with Consumer Insights, Designers with Usability and Strategists with Marketing. When a culture of collaborative research is part of every job description, every job will contribute to furthering that culture. 5. Stop believing your own hype. No amount of office mythology or self-congratulations can disguise what you ARE NOT. If consumers are saying it, it’s probably true. Now is the time to start engaging them on their terms and in their language to discover the path forward.116 117
  • 61. brand leadership118 119
  • 62. Brand management vs. The five brandbrand leadership leadership benchmarksThere are basically two different orientations Brand management is tactical, visual andtowards brand: as images and as promises. reactive. It’s preoccupied with the 3 Ls of As you look at these five brand stages,It’s not surprising that there are two funda- branding: look, letterhead and logo. Brand note how they are tiered. You need to firmlymentally different approaches to brand leadership is visionary and promise-driven. establish one before you can move on todevelopment as well. These two approaches, It concentrates on building brand value that the next.brand management and brand leadership, translates into loyalty and market power.are codified by David Aaker and differ in a Metrics are in place to measure progress. Thevariety of ways. goal is brand equity. Brand management focuses on the short- Brand management and brand leadershipterm. Its primary tool is promotion. Brand represent two ends of a vast continuum.managers never have enough money and For many marketers, brand leadership mightseldom have true control over the dollars initially be out of reach and exists only onthey do have. Brand leadership is about the the company’s annual report. Their quickestlong-term. Brand leaders understand gains might actually be generated by athat building brand equity takes time, money, consistent brand management strategy. Toand talent. They know that a successful build a brand promise that consumersbrand is not built in one budget year or one will value and, in doing so, help build brandproduct launch. Brand leadership is based equity, it is essential for everyone in thaton the premise that brand building not only continuum to understand the progression ofcreates brand equity, but is also necessary branding from management to leadership.for institutional success. With brand leader-ship, the institution’s most senior leadersrecognize that building the brand results in acompetitive advantage that pays financially. 5. BEHAVIOR 4. EXPERIENCES Your brand is successful if the perceptions you create motivate positive 3. VISION customer behavior. Your brand is working In other words, if these experiences do people category Brand Brand create the desired follow through? Management Leadership perceptions in the minds 2. CONSISTENCY and hearts of your You manage your customers. Remember, Focus Limited Broad brand to ensure that the brand perceptions these experiences and relationships Product‑market scope Single Products-Markets Multiple products and markets conform to your brand you want to own are 1. TOUCH-POINTS vision and brand those of relevance. Brand structures Simple Complex brand architectures Your brand is promise. At this level, consistent and you branding is strategic, Number of brands Focus on Single brands Category focus‑multiple brands ensure that the not tactical. experiences all Country scope Single country Global or national perspective communicate the Your brand is the sum same thing to Communication focus External customer only Internal as well as external of the experiences your customers and that your customers have prospects. whenever they are exposed to your product, service or message. It is this breadth across all touch-points and functions that gives a brand depth and endurance.120 121
  • 63. Understanding brand Brand architecture is the logical, strategicarchitecture and relational structure for all of the brands in the organization’s brand portfolio. The objective is to maximize clarity, synergy andCreating a clear brand architecture to help leverage to maximize customer value andstructure position for today and tomorrow internal efficiencies.helps build that brand by ensuring everyonewithin an organization works to a commonand clearly understood goal. GM has 33 brand names, P&G hashundreds, BMW has three, IBM has 2 andStarbucks has one. Between mergers andacquisitions, aggressive brand extensions,the increasingly complexities of sub-brands,endorsed brands and co-brands, it getsmore and more complicated. Often the taskincludes a periodic regrouping of multipleproduct groups and brand families, reposi-tioning them to reflect their role in the marketand to create a structure for immediatesuccess. Establishing a clear and coherentbrand architecture creates structure within masterwhich vital day-to-day tactical decisions can brandbe made. Without this brand architecturein place, these tactical decisions becomestrategic and long-winded in nature. stand- stand- stand- sub- sub- sub- sub- sub- alone alone alone Brand Brand Brand Brand Brand brand brand brand product product product product product brand brand brand brand brand product product product product product brand brand brand brand brand product product product product product brand brand brand brand brand product product product product product brand brand brand brand brand product product product product product brand brand brand brand brand product product product product product brand brand brand brand brand122 123
  • 64. Understanding brand architecture andarchitecture positioningAdvantages of developing a brand P&G’s brand architecture effectivelyarchitecture: manages the relationships between product, brands and market segments. Head &1. It helps everyone in the organization Shoulders dominates the dandruff control see and understand all the connections shampoo category and Pert Plus targets between corporate brands, sub-brands the market for combined shampoo and and master brands. conditioner. Pantene is positioned as a brand2. It simplifies decision making when it with a technological heritage and the comes to allocating and sharing marketing power to enhance hair vitality. The three resources such as advertising and brands optimize their brand coverage promotions. by not being merchandised under a P&G product brand name. The lesson? Avoid3. It protects brands from becoming a brand association that is incompatible over-leveraged and diluted by over- with another offering and may adversely extending communications messages affect its performance. and graphic design options. visible connections between brands simplified keeps decision- brands making pure124 125
  • 65. Understanding brand case study:architecture branded house vs. house of brandsIt is very difficult to offer a generalization on The needs usually consist of one or morehow to put a vast number of brands in of the following:categories and wed sets of them and their 1. Create and own a different set ofrelationships into a composite brand associationsarchitecture. Each industry and categorycontext is different, as are corporate 2. Develop a totally new product offeringviews. The tendency is towards having a or a categorymaster brand. Only when there is a 3. Avoid conflict in brand associationcompelling need (and a budget) should a and identitiesseparate brand be considered. The bigquestion is: can the business support a 4. Avoid channel conflictnew brand? 5. Create a price-driven label for competitive reasons 6. Fulfill needs for new geographies or unique customer segments Branded House House of Brands general electric: proctor & Gamble: Branded House a House of Brands126 127
  • 66. brand separationspectrum Branded House of Endorsed House House House Sub-Brands of Brands of Brands = / Same Identity Different Umbrella Co-Drivers Strong Linked token Shadow Not Identity as Driver Endorsement Name Endorsement Endorser Connected BMW Gillette Sensor GE Capital Buick LeSabre Courtyard DKNY Grape-Nuts Tide Thomson Sony GE Appliance Sony Trinitron by Marriott from Post (P&G) (GE) HP DeskJet McMuffin Virgin Club Med DuPont Stainmaster Obsession Sony Lexus Saturn Singles vs. Couples VW Beetle byCalvin Klein Nestea PlayStation (Toyota) (GM) Levi – Europe Friends & Family Docker’s Touchtone NutraSweet Levi – U.S.A. by MCI LS&Co. (Disney) (G.D.Searle)
  • 67. case study:Sony BrandArchitectureSony chooses a single-minded, powerfuland yet flexible architecture andleverages their corporate brand in manydifferent ways. corporate umbrella as driver endorser brand ingredient brand shadow endorser co-brand
  • 68. Luxury brand marketing132 133
  • 69. What is a luxury Luxury used to belong to a few privileged few.brand? Not any more. It’s no longer about simply fashion goods, wine, jewelry, handbags and accessories. Luxury is transforming scoresWhat qualifies a brand as a luxury brand? of markets. It comes in many forms, at manyIn economic terms, luxury products are price levels and through a variety of channels,those whose price/quality/service relationship no longer confined to a few upscale shopsis the highest on the market or a product on Rodeo Drive, Fifth Avenue or Bond Street.that can consistently command and justify a Almost every marketer needs to considerhigher price than those with comparable The Luxury Brand whether or not they have a luxury brandfunctions and similar quality. There is always Pure Artist, Creator and strategy in place.an argument for why some brands qualifyas luxury and others are simply well known. Unique Creation. Not Scalable Business The question is: McKinsey defines luxury brands as thosewhich “have constantly been able to justifya high price, i.e. significantly higher than the Who will beprice of products with comparable tangiblefunctions”. This strict economic explanation the first one to effectivelydoes not help explain how well-knownbrands are differentiated from luxury brands.A Jaguar is considered less expensivethan a Porsche, but in terms of comparabletangible functions it has a much stronger The Leading Brand capture thisluxury brand image than Porsche. For somereason, Porsche is fast and expensive, just Pure Artist, Creator and Unique Creation. segment in yournot luxury. A Breitling watch is generally moreexpensive than a watch from Tiffany, Not Scalable Business category?Hermès or Gucci, yet it is often perceivedas prestigious, not luxurious. Luxury hasn’t changed. What’s changing is its definition. Once closely associated with high price, prestige and ostentation, Massification of Luxury Brand as large segments of consumers move upscale and luxury goods move downscale, we’re seeing an explosive growth in The Quality Brand what is being called the “massification of Exclusive, luxury goods”. value Prestige Image, The massification of luxury has been the Highest Quality single most important marketing phenom- and Service enon of modern times. It goes beyond what we see today: marketers connecting luxury to products that were never in that league. Advertising and packaging common products with words such as gourmet, premium, classic, gold and platinum means that all consumers, whether they can afford true luxury or not, get a taste of the The Better Brand tantalizing. And thanks to eBay, more Mass Produced, Good and more people have access to the finer, Overall Price/Value/Image once out-of-reach things in life at an Equation affordable price. If anyone can afford it does it cease to be luxury? The answer is, Definitely Not. It only makes such items that much more desirable. Social philosophers like Pierre Bourdieu have shown the relationship between consumption, class and identity. the Hermès Birkin handbag the coach bag is luxurious is not In creating one’s identity and place in The Brand the world, few things in life proclaim status Constantly Under and superiority than purchasing, owning Cost Pressures, Unable to and displaying luxury goods. Build Brand Equity, Usually Outside of the Top Three in Market Share Leadership134 135
  • 70. The Old Luxury The New Luxury Slaves to brands Wants quality Buys them through and service multiple channels, at all price points at multiple price points A very small Only for the segment very rich Less about conspicuous Fiercely local, Superb craftsmanship, Only available consumption and always look high quality in selective more about self-respect for a brand’s and high service up-scale shops and fulfilling personal heritage emotional needs136 137
  • 71. The alternative viewof marketing LivingMarketing is the ultimate social practice of is morepostmodern consumer culture. It playsa key role in giving meaning to life throughconsumption. So is marketing too important to be left tomarketers alone? of a question of what one spends than what one makes. – Marcel Duchamp MANOLO BL AHNIK 138 139
  • 72. Fit in. Be cool. The New Value AddThe standard of judgment becomes the of Advertisingability to interact effectively with others, towin their affection and admiration – to As a brand marketer, your job is tomerge with others of the same lifestyle. construct, maintain and communicate What is important: Can you consume the identity and social meanings to others.right brands? FIT IN BE COOL FIT IN BE COOL FIT IN BE COOL FIT IN BE COOL VERY HIP BE COOL FIT IN BE COOL FIT IN BE COOL FIT IN BE COOL FIT IN140
  • 73. In the old culture, the limited production What you buy is now more importantcapacity of the economy sharply reduced than what you make. Luxury is not a goalaspirations to material comfort. Today, anymore, for many it is a necessity.much greater material satisfaction lies within It starts with a need and an anxiety tothe reach of even those of modest means. resolve it. The experience ends, if successful, with a feeling of relaxation or satisfaction.Thus a producer culture If it does not satisfy the need, the process is repeated. We judge the act by the experience. We have gone from product to process,becomes a from problem resolution to emotion seeking, from object to experience.consumer culture. PRODUCER CULTURE LUXURY ITEMS CONSUMER CULTURE PRODUCER CULTURE CONSUMER CULTURE Only a few could consume Many can consume luxury brands luxury brands WHAT YOU BUY WHAT YOU MAKE what you buy PROCESS product process EMOTION SEEKING problem resolution emotion seeking EXPERIENCE object experience142 143
  • 74. “Any kind of possession We now live in Consumption really functions, in a sense, Communities as an extension of our We are no longer divided by wealth, birth or political eminence but by consumption. personal power. It serves to For marketers, brands and products need to be positioned to be bought, not made. make us feel stronger… When you watch a small child cling to a piece of cloth or a doll with all its power you may begin to understand the power of ownership.” – Ernest Dichter, The Soul of Things consumer 144 145
  • 75. Themassificationanddemocratizationofluxuryhasbeenthesinglemostimportantmarketingphenomenonofmoderntime.146 147
  • 76. The Real vs. Luxury shoppers are led by rational desire Ask this important question: to purchase items of high value andthe Imaginary craftsmanship. Eight of the 10 top purchase motivators are emotionally driven. Marketers What areConsumption sometimes operates at a levelof the imaginary, but it can also have must tap into consumers’ desires for well-being, self-concept and indulgence. your key target segments’“real” effects in facilitating the construction The consumption of symbolic meaning,of self-identity. reinforced through advertising, provides the individual with the opportunity to construct, maintain and communicate identity and wildest social meanings. Victoria’s Secret is a great example of using the unobtainable, imaginations? imaginary dreams of its consumers to drive sales. When beautiful and perfectly proportioned models strut down the runway and grace glossy catalog pages, they say that the company’s products can enhance or even instill such glamour. If Victoria’s Secret products are worn by the beautiful, does the inverse also hold true? Will wearing them make one beautiful? 8 of the top 10 purchase motivators are emotionally driven148 149
  • 77. The Material vs.The SymbolicJust as a product fulfills its ability to satisfya mere physical need it must satisfy asymbolic need to create our meanings of ourselves. We become consumers of illusions. De Beers’ slogan, “A diamond is forever,”has been so successful in creating theillusion of eternal love that a diamond is thatillusion’s material symbol. Now marketersare trying to do the same with platinum. We become consumersAsk this important question:What illusions does your product help of illusions.consumers to create or maintain? = = XXX = = 24hrs brand = Illusion =  = $$$ = 150 151
  • 78. The social vs.The selfThe symbolic meanings of products operatein two directions: outward in constructingthe social world, and inward towards con-structing our self-identity. Products help usto become our Possible Selves. Most SUVs and sports brand images arebuilt on the very powerful concept ofbecoming ourselves, just better. SUVs speakto ‘sporty’, ‘powerful’, ‘tough’ and ‘rugged’.They appeal to men (and some women) whomay not travel anywhere more treacherousthan the local supermarket. The Hummersold to civilians is radically different from theone used by the military, yet the brand’simage, as an enduring, robust all-terrainvehicle remains intact. Expensive and ‘cool’,SUVs hold a carpool full of kids and theirhockey equipment without saddling theirupscale owners with a minivan.Ask this important question:What are your target luxury segments’ idealpossible selves? Products help us to become our Possible Selves.
  • 79. Desire vs.SatisfactionAdvertising often provides gratification andrecodes a commodity as a desirablepsycho-ideological ideal. In fact, it feedsthe desire to achieve the often unobtainableunity of the self, using destabilizedmeanings and images that separate productsfrom their original intended use andoffer the opportunity to reconstruct a self bypurchasing meanings in a do-it-yourselffashion. Desire exists in the gap betweenvisual languages and the unconscious. Desire does not want satisfaction. To thecontrary, desire desires desire. Imagesare often so appealing that things cannotsatisfy. Some people desire desirelessnesswith such a passion that it actuallyincreases their ability to desire. What wedo we become stronger in, and these UNOBTAINABLEpeople yearn so much and so often to have commodityno more yearning that their ability to as a desirable CONSUMER psycho-yearn becomes astronomical. Postmodern ideologicalconsumption is inextricably linked with sign DESIREaspects of sexuality, both conscious and DOES NOTsubconscious. Desires are constructed WANTthrough linkages between consumption and SATISFACTIONthe human body. Visuals continue to bethe most powerful tool because they neversatisfy. Calvin Klein, Gucci and Abercrombieand Fitch built and maintain their brandsbased entirely on this concept. Meaning iscreated through a continuous search forlinks between identity (social) and the self.Ask this important question:What are the unobtainable that your brandsare based on? CONSUMER DESIRE DESIRES DESIRE154 155
  • 80. Rationality vs.IrrationalityThe expansion of “wants” reduces ourchoice to “want not” and sometimesmakes the very idea of rational choicebecome meaningless. We’re in theera of the “empty-self” in which alienationcan be solved by the “lifestyle” solutionin which we construct a “self” bypurchasing even of limited rationality.156
  • 81. Materialism vs.SpiritualismWe use all kinds of tools everyday.We are tool users and tools are notthe end but the means. So materialismdoes not crowd out spiritualism;spiritualism is more likely a substitutewhen objects are scarce. When wehave fewer things, we make the nextworld luxurious. When we haveplenty, we enchant those objectsaround us.158 159
  • 82. Quotes from participants ofIdris Mootee’s AdvancedBranding Masterclass 2008 If this is the case, then the current weak version of experience co-creation (which is “Luxury comes from exclusivity Individualism still more like mass configuration at this point, despite its own protestations to the contrary) may give way to what I have been calling “deep co-creation,” in which customers not only co-create the equals exclusivity. experience and some of the value, but the business itself (and, by extension So by definition, every the brand). And they will of course do this as a large, interconnected community. time a brand gives So in this changed world, a big part of people’s meaning might come from room to consumers to express their indi- co-creating a business and seeing it thrive. – Christian Briggs vidualism, it becomes an exclusive, luxurious “‘What constitutes good. This will luxury becomes a lead to a future of wholly individual and consumers using emotional decision.’ their self-expression Clearly the rules to get the luxury of luxury are not set into pretty much any exclusively by a brand in their few educated minds brandsphere.” anymore. Experience – Bart Suichies is luxury. Silence is luxury. To some, As “Jacques Lacan pointed out, human- beings need to learn how and what to not mentioning the desire. ‘Desire is the Desire of the Other.’ It is on the basis of this fundamental word luxury is luxury. understanding of identity that Lacan maintained throughout his career that desire Very human. Not is the desire of the Other. What is meant by him in this formulation is not the triviality so engineer-friendly.” that humans desire others, when they sexually desire (an observation which is not universally true). – Flavio Azeved – André Galhardo160 161
  • 83. About the authorIdris MooteeCEO, Idea CoutureIdris is an authority and expert in businessand brand strategy and operatesat the intersection of business strategy,experience design and emergingtechnologies. Idris provides C-levelexecutive and board-level strategiccounsel, innovation and strategic guidancefor multiple industries that often involveleading growth initiatives and innovationmanagement. Prior to co-foundingIdea Couture, Idris was Senior VP, ChiefStrategist with Blast Radius, wherehe was responsible globally for strategicoutputs including clients such as Nike,Nintendo, Intrawest, BMW and AOL andprior to that he was global head ofstrategy with Organic with clients suchas HP, Bell, Macy’s and Daimler Chrysler.His other experiences included andPresident, Chief Strategy Officer withLive Lowe and Partners with clientssuch as HSBC and MasterCard. He is the author of four books, dozensof published articles and has been quotedin national media including the New YorkTimes and Wall Street Journal. Hereceived his business education from theLondon Business School, HarvardBusiness School and London BrunelGraduate School. An accomplishedspeaker and thought leader, Idris oftenspeaks at international conferencesand has a gift for astute observationsand a lively, humorous style thatengages a broad range of audiences.www.ideacouture.comblog: http://mootee.typepad.com162 163