Immutable laws of branding


Published on

Published in: Marketing
  • Be the first to comment

No Downloads
Total views
On SlideShare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide
  • Amity Business School
  • Immutable laws of branding

    1. 1. The 22 Immutable laws of Branding 1
    2. 2. 1. The law of Expansion• The power of a brand is inversely proportional to its scope• Marketers constantly run branding programs in conflict with people’s perception of their brands. Customers want brands that are narrow in scope and are distinguishable by a single word, the shorter the better." 2
    3. 3. • Chevrolet used to be the largest selling brand in the US with 1,718,839 cars sold in 1986. But trying to be all things to everyone undermined the brand and today Chevy sells less than a million cars and is no longer the market leader. 3
    4. 4. 2. The law of Contraction• A brand becomes stronger when you narrow its focus 4
    5. 5. • In a few short years Starbucks has become one of US’s best known and most popular brands. Narrowing one’s focus is not same as carrying a limited line. Starbucks offers thirty different types of coffees. 5
    6. 6. 3. The law of Publicity• The birth of a brand is achieved with publicity, not advertising• Advertising is best used to maintain a brand, but it is very difficult and expensive to launch a new brand through advertising alone• The best way is to be first in a new product or service category, and reap the attendant publicity 6
    7. 7. • Anita Roddick created the concept of Body Shop in 1976 around the concept of natural cosmetics made of pure ingredients, no animal testing and kind to environment and indigenous people. With no advertising but massive amounts of publicity, it is today a powerful global brand. 7
    8. 8. 4. The law of Advertising• Once born, a brand needs advertising to stay healthy 8
    9. 9. • A consistent theme of Goodyear advertising over the years has been #1 in tires. So who makes the best tires? It must be Goodyear thinks the customer. It’s the leader. 9
    10. 10. 5. The law of the Word• A brand should strive to own a word in the mind of the consumer• If you want to build a brand, you must focus your branding efforts on owning a word in the prospects mind. A word that nobody else owns.• Examples: Mercedes = prestige; Volvo = safety; Kleenex = tissue; Xerox = copier; . 10
    11. 11. • Federal Express became successful by becoming the first air cargo carrier to narrow its focus on overnight delivery thereby owning the word overnight in customers minds. FedEx has become synonymous with overnight delivery. 11
    12. 12. 6. The law of Credentials• The crucial ingredient in the success of any brand is its claim to authenticity. The best claim is being the leading product or service in your category, because consumers assume that if it is a leading seller, it must be good• Never forget leadership. No matter how small the market, dont get duped into simply selling the benefits of the category• There are also the long-term benefits of leadership. Once you get on top, its hard to lose your spot. 12
    13. 13. • In 1942, Coca Cola launched an Ad Campaign “ The only things that tastes like Coca Cola is Coca Cola Itself. It’s the real thing.” It has used the real thing slogan over the years to claim its authenticity. 13
    14. 14. 7. The law of Quality• Quality is important, but brands are not built by quality alone• In fact, most people have no idea as to the "real" quality of a product or service.• Is a Rolex really better at keeping time than a Timex? How do you know? 14
    15. 15. • Rolex has become the world’s best known and best selling brand of luxury watches. Does quality have anything to do with its success? Probably not. Does Rolex make high quality watches? Probably. Does it matter? Probably Not. 15
    16. 16. 8. The law of the Category• A leading brand should promote the product or service category, not the brand.• This may seen counter-intuitive, but the best way for the brand leader to build sales is to promote the category, not their specific brand. 16
    17. 17. • Eatzi’s is the first brand in the new category it calls the meal market. Jointly owned by Brinker international and Phil Romano, Eatzi’s focuses on restaurant quality food primarily for take out consumption. 17
    18. 18. 9. The law of the Name• In the long run, a brand is nothing more than a name 18
    19. 19. • One of the world’ most powerful brands, Xerox demonstrates many of the important laws of branding, including being the first in its category with a short unique name , so much to become generic for copying. How ever when it put its name to computers the result was huge losses 19
    20. 20. 10. The law of Extensions• The easiest way to destroy a brand is to put its name on everything 20
    21. 21. • With a powerful marketing program, Miller high Life was rapidly gaining on market leader Budweiser. ( It got within 20% of King of Beers) Then it introduced a bevy of line extensions and stopped Miller High Life cold. 21
    22. 22. 11. The law of Fellowship• In order to build the category, a brand should welcome other brands 22
    23. 23. • One of the best locations for a number two brand is across the street from the leader. The best place for a Planet Hollywood is right across the street from its biggest competitor, Hard Rock Café. Both brands will benefit. 23
    24. 24. 12. The law of the Generic• One of the fastest routes to failure is giving a brand a generic name• Generic names (i.e. names describing the product or service category, such as "Wine Coolerz"), do not strongly position the product or service within the category, and are thus liable to confuse potential customers. 24
    25. 25. • Blockbuster Video is a good brand name for a video rental store while General Video Rental is not. Brands should Avoid generic names like the plague. Yet you see a large number of such generic names especially in the retail area. 25
    26. 26. 13. The law of the Company• Brands are brands. Companies are companies. There is a difference.• Brand names should always take precedence over company names. Consumers buy brands, they dont buy companies. So when a company name is used alone as a brand name like GE, Xerox, Intel customers see these names as brands. 26
    27. 27. • Does Tide need the corporate endorsement of company name Procter & Gamble? Probably Not. Will the endorsement hurt the brand? Probably not. But Corporate endorsements are for the trade , not for customer’s enlightenment. 27
    28. 28. 14. The law of Sub brands• What branding builds, sub branding (i.e. brand extensions) can destroy. 28
    29. 29. • Holiday Inn has become a mega brand with the launch of sub brands like Holiday Inn Express, Holiday Inn Select, Holiday Inn Garden Court etc. This sub branding is eroding the power of core brand. 29
    30. 30. 15. The law of Siblings• There is a time and a place to launch a second brand.• The key to a family approach is to make each sibling a unique individual brand with its own identity.• Resist the urge to give the brands a family look or identity. You want to make each brand a different and distinct as possible. 30
    31. 31. • When Honda wanted to introduce an expensive car, it didn’t call the brand Honda Plus or Honda Ultra. It developed a new brand called Acura which became a huge success. As a matter of fact , it became the largest selling imported luxury car in US. 31
    32. 32. 16. The law of Shape• A brands logotype should be designed to fit both the eye.• The ideal shape for a logotype or brand symbol is two and a quarter units wide and one unit high. 32
    33. 33. • A customer sees the world through 2 eyes peering out of his head like looking out windshield of an automobile. For Maximum Visual Impact a logotype should be same shape as a windshield. Avis is almost perfect while Arby’s is too vertical. 33
    34. 34. 17. The law of Color• A brand should use a color that is the opposite of its major competitors. 34
    35. 35. • What color is a Tiffany’s box . It’s a distinctive Robin’s egg blue. All tiffany boxes are blue. If Tiffany had used a variety of colors for its boxes ,it would have lost a marvelous opportunity for brand name reinforcement with a distinctive color. 35
    36. 36. 18. The law of Borders• There are no barriers to global branding. A brand should know no borders. 36
    37. 37. • Heineken exports it beer to some 170 different countries. In most of these countries, it is the largest selling high priced beer. It locally brews its beer in 50 countries. 37
    38. 38. 19. The law of Consistency• A brand is not built overnight. Success is measured in decades, not years 38
    39. 39. • BMW has been ultimate driving machine for 25 years. Whats more remarkable is the fact that it retained its strategy even while changing 3 advertising agencies. Change of agencies usually signals end of a brand’s consistency. 39
    40. 40. 20. The law of Change• Brands can be changed, but only infrequently and very carefully. 40
    41. 41. • Citibank changed from a corporate bank to a consumer bank with plans of becoming the first global consumer bank. It took a while but was done. But a merger with Travelers Group threatened the entire branding process. 41
    42. 42. 21. The law of Mortality• No brand will live forever. Euthanasia is often the best solution. 42
    43. 43. • Film Photography is slowly being replaced by digital photography. But Kodak refuses to face that reality. Instead it is trying to save its brand by using Kodak name on its Digital products. 43
    44. 44. 22. The law of Singularity• The most important aspect of a brand is its single-mindedness. 44
    45. 45. • Volvo has been selling safety for over 35 years. In the process it has become the largest selling European luxury car. In the past decade, it has sold 849,348 cars in the US, outselling BMW and Mercedes Benz. 45
    46. 46. Thank You 46