BRANDS
22 Immutable laws of BrandingRhys & Rhys
Law of expansionThe power of a brand is inversely proportional to its scopeWhen you put a brand on everything, that name loses its power
Law of contractionA brand becomes stronger when you narrow its focusNarrow focusStock in depthBuy cheapSell cheapDominate the category
Law of publicityBrands are build with publicity and maintained with advertisingBest way to make news is to advertise a new category, not just a new productEg- Lotus notes – the 1st successful groupware product
Law of advertisingKicks in when a brand outlives its publicity potentialBrand leaders must advertise leadership. Leadership indicates the product is better.Keeps away the competition
Law of the wordFocus on owning a word in the prospects’ mind. A word nobody else owns.Your brand owns the category name when people use the brand generically.(is that good?)Premium productMake it expensiveFind a subtle way to communicate exclusivity
Law of credentialsCustomers are suspicious and they tend to disbelieve your claims.When you have the right credentials, the prospect is likely to believe youHave a good track record and communicate it.
Law of qualityBuild a powerful ‘perception’ of quality in the customers’ mindHigh priceNarrow focusUse the word ‘quality’Build as much quality as you can affordDifferentiate looks
Law of the categoryLeading brand should promote the category, not the brandUse words like leader, pioneer, original, firstRise of competitors stimulates consumer interestThe ‘rightful’ share of a leader is not more than 50%
Law of the nameIn the long run, a brand is nothing more than a nameGeneric names are no goodThe leader is not necessarily a high quality product but a high quality name
Law of extensionsThe easiest way to destroy a brand is to put the name on everythingIf the market is moving, stay where you are and launch a second brandIf not, stay where you are and build your brand
Law of fellowshipNot only should the dominant brand tolerate competitors, it should welcome themChoice stimulates demandMarket share is based on the brand in the mind, not on merit of the product
Law of the genericOne of the fastest way of failure is to give a brand a generic name????GE, IBM, 3M, GM
Law of the companyBrands are brands. Companies are companies. There is a differenceShould the company name dominate or the brand name?The brand should be the focus of attention.If you have to use the company name, do it in a decidedly secondary way.
Law of subbrandsWhat branding builds, subbranding can destroy.Subbranding, masterbranding and megabranding are not customer driven concepts
Law of siblingsThere is time and space to launch a second brandThe key is to make each brand a unique individual with its own identity
Law of siblingsFocus on common product areaSelect a single attribute to segmentSet up rigid distinctions among brandsCreate different, not similar brand namesLaunch to create a new category, not to fight with competitionKeep control at the highest level
Law of shapeBrand’s logotype should be designed to fit the eyes. Horizontal1:2.25LegibleAdvantages of using the symbol alone are slim and occur in certain situations.
Law of colourA brand should use a colour that is opposite of its major competitor’s.Focus on the mood you want to createColour consistency is important
Law of bordersThere are no barriers to global brandingKeep the brand’s narrow focusBe the firstProduct needs to fit the perception of its country of originChanges must be made to accommodate local languages and cultures
Law of consistencyMarkets may change, but brands shouldn’tPersist
Law of changeBrands can be changed, but only infrequently and very carefully.Brand is weak or nonexistent in the mindMoving the brand downChange takes place slowly to take advantage of a slow moving trend
Law of moralityNo brand will live foreverEuthanasia is often the best solution
Law of singularityThe most important aspect of a brand is its single-mindedness
Brand Asset ValuatorDifferentiationRelevance – Breadth of a brand’s appealEsteem Knowledge
Aaker’s ModelBrand loyaltyBrand awarenessPerceived qualityBrand associationsOther IP
BRANDZPresence – Do I know about it?Relevance – Does it offer me something?Performance – Can it deliver?Advantage – Is it better than othersBonding – Nothing else beats it
Intangible Asset MonitorExternal StructureInternal structureCompetenceKarl – Erik Sveiby
External MeasuresMarket to book valueTobin’s Q: replacement cost of assetsValuation of free cash flows*Calculated Intangibles Value ROA Value/Sales
Brand Management at Unilever India
UI has over 100 brandsCautious in creating new brandsLocates positioning opportunitiesEvery brand has to be viable on its ownConstant brand rejuvenation
Umbrella brandingFood: Brooke Bond, Lipton, Kissan, Dalda and Kwality WallsExpanding Kissan even to basic food itemsBrooke Bond and Lipton in beverages
Power brandsIdentified 30 power brandsIncludes future stars like Axe And niche leaders like PearsCriteriaCurrent performanceCompetitive differentiationFuture potential
Other 80+ brands treated differentlyRegional brands - HamamUnprofitable brands – Aim, RevelOverlapping brands – Breeze and Jai
Case of SavlonGermicide segment of soap market was growing fastDettol was the leaderLifebuoy was not expected to succeed
Competitive Positioning
Market leadersExpand the marketNew customers (new markets)More usageExpand market share
Defend market sharePosition defenseFlank defensePreemptiveCounteroffensiveMobileContraction
Market challengerMarket leaderOther firms its sizeSmall firmsFrontalFlankingEncirclementBypassGuerrilla
Price discountsProduct improvementsProduct proliferationDistribution innovationPromotion intensificationCost reduction
Market followerCounterfeiterClonerImitatorAdapterMARKET NICHER

Brand Management

  • 1.
  • 2.
    22 Immutable lawsof BrandingRhys & Rhys
  • 3.
    Law of expansionThepower of a brand is inversely proportional to its scopeWhen you put a brand on everything, that name loses its power
  • 4.
    Law of contractionAbrand becomes stronger when you narrow its focusNarrow focusStock in depthBuy cheapSell cheapDominate the category
  • 5.
    Law of publicityBrandsare build with publicity and maintained with advertisingBest way to make news is to advertise a new category, not just a new productEg- Lotus notes – the 1st successful groupware product
  • 6.
    Law of advertisingKicksin when a brand outlives its publicity potentialBrand leaders must advertise leadership. Leadership indicates the product is better.Keeps away the competition
  • 7.
    Law of thewordFocus on owning a word in the prospects’ mind. A word nobody else owns.Your brand owns the category name when people use the brand generically.(is that good?)Premium productMake it expensiveFind a subtle way to communicate exclusivity
  • 8.
    Law of credentialsCustomersare suspicious and they tend to disbelieve your claims.When you have the right credentials, the prospect is likely to believe youHave a good track record and communicate it.
  • 9.
    Law of qualityBuilda powerful ‘perception’ of quality in the customers’ mindHigh priceNarrow focusUse the word ‘quality’Build as much quality as you can affordDifferentiate looks
  • 10.
    Law of thecategoryLeading brand should promote the category, not the brandUse words like leader, pioneer, original, firstRise of competitors stimulates consumer interestThe ‘rightful’ share of a leader is not more than 50%
  • 11.
    Law of thenameIn the long run, a brand is nothing more than a nameGeneric names are no goodThe leader is not necessarily a high quality product but a high quality name
  • 12.
    Law of extensionsTheeasiest way to destroy a brand is to put the name on everythingIf the market is moving, stay where you are and launch a second brandIf not, stay where you are and build your brand
  • 13.
    Law of fellowshipNotonly should the dominant brand tolerate competitors, it should welcome themChoice stimulates demandMarket share is based on the brand in the mind, not on merit of the product
  • 14.
    Law of thegenericOne of the fastest way of failure is to give a brand a generic name????GE, IBM, 3M, GM
  • 15.
    Law of thecompanyBrands are brands. Companies are companies. There is a differenceShould the company name dominate or the brand name?The brand should be the focus of attention.If you have to use the company name, do it in a decidedly secondary way.
  • 16.
    Law of subbrandsWhatbranding builds, subbranding can destroy.Subbranding, masterbranding and megabranding are not customer driven concepts
  • 17.
    Law of siblingsThereis time and space to launch a second brandThe key is to make each brand a unique individual with its own identity
  • 18.
    Law of siblingsFocuson common product areaSelect a single attribute to segmentSet up rigid distinctions among brandsCreate different, not similar brand namesLaunch to create a new category, not to fight with competitionKeep control at the highest level
  • 19.
    Law of shapeBrand’slogotype should be designed to fit the eyes. Horizontal1:2.25LegibleAdvantages of using the symbol alone are slim and occur in certain situations.
  • 20.
    Law of colourAbrand should use a colour that is opposite of its major competitor’s.Focus on the mood you want to createColour consistency is important
  • 21.
    Law of bordersThereare no barriers to global brandingKeep the brand’s narrow focusBe the firstProduct needs to fit the perception of its country of originChanges must be made to accommodate local languages and cultures
  • 22.
    Law of consistencyMarketsmay change, but brands shouldn’tPersist
  • 23.
    Law of changeBrandscan be changed, but only infrequently and very carefully.Brand is weak or nonexistent in the mindMoving the brand downChange takes place slowly to take advantage of a slow moving trend
  • 24.
    Law of moralityNobrand will live foreverEuthanasia is often the best solution
  • 25.
    Law of singularityThemost important aspect of a brand is its single-mindedness
  • 26.
    Brand Asset ValuatorDifferentiationRelevance– Breadth of a brand’s appealEsteem Knowledge
  • 27.
    Aaker’s ModelBrand loyaltyBrandawarenessPerceived qualityBrand associationsOther IP
  • 28.
    BRANDZPresence – DoI know about it?Relevance – Does it offer me something?Performance – Can it deliver?Advantage – Is it better than othersBonding – Nothing else beats it
  • 29.
    Intangible Asset MonitorExternalStructureInternal structureCompetenceKarl – Erik Sveiby
  • 30.
    External MeasuresMarket tobook valueTobin’s Q: replacement cost of assetsValuation of free cash flows*Calculated Intangibles Value ROA Value/Sales
  • 31.
    Brand Management atUnilever India
  • 32.
    UI has over100 brandsCautious in creating new brandsLocates positioning opportunitiesEvery brand has to be viable on its ownConstant brand rejuvenation
  • 33.
    Umbrella brandingFood: BrookeBond, Lipton, Kissan, Dalda and Kwality WallsExpanding Kissan even to basic food itemsBrooke Bond and Lipton in beverages
  • 34.
    Power brandsIdentified 30power brandsIncludes future stars like Axe And niche leaders like PearsCriteriaCurrent performanceCompetitive differentiationFuture potential
  • 35.
    Other 80+ brandstreated differentlyRegional brands - HamamUnprofitable brands – Aim, RevelOverlapping brands – Breeze and Jai
  • 36.
    Case of SavlonGermicidesegment of soap market was growing fastDettol was the leaderLifebuoy was not expected to succeed
  • 37.
  • 38.
    Market leadersExpand themarketNew customers (new markets)More usageExpand market share
  • 39.
    Defend market sharePositiondefenseFlank defensePreemptiveCounteroffensiveMobileContraction
  • 40.
    Market challengerMarket leaderOtherfirms its sizeSmall firmsFrontalFlankingEncirclementBypassGuerrilla
  • 41.
    Price discountsProduct improvementsProductproliferationDistribution innovationPromotion intensificationCost reduction
  • 42.