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

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

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

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

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

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

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

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

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

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

Hugh MacLeod, Gapingvoid.com

Brands . . are ..
.. . MAGIC MAKING

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

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

You can only fool people
for a while.

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

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

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

On to the BRAND ®
Building > > >

What will this presentation cover?
1. Why firms should establish a brand. 2. The steps in establishing a new brand. 3. A short list of recommended branding books.

1. Why establish a brand?

Consumers face a dizzying array
of choices.

Products drift towards
commoditization.

A brand differentiates the product
from similar offerings.

A brand reduces the need
to compete on price alone.

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

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

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

2. Steps in establishing a
new brand.

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

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

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

Point of View? Who is
the Enemy?

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

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

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

Your brand needs to .
. . Stand for something

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

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

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

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

You can build a brand
portfolio organically

Or through acquisition

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

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

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

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

Final thought: . . .
we all think everyone else’s shopping quirks are weird and irrational - but that our own make perfect sense. Rob Walker, New York Times Magazine (2009)

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

I’m very interested in business
training and course design for e-learning Feel free to get in touch! Thanks! Gordon@westportwire.com © Gordon Graham 2007