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Strategic
Brand Management
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MAKING
OF FOREVER BRANDS
Sampa
Chakrabarty Lahiri
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The
bond arising from the customer’s entire experience
with the brand leads to a relationship that can last
forever. As the alignment grows stronger, so does
the brand. People love it. And they buy it. For example,
the European telecommunication major Orange, is among
the great brands that left its competitors flat-footed
in the last century
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The
small square Cartier watch with the black strap was
the only jewellery she wore; it caught the golden hue
of the sun on her tanned wrist...’ Ian Fleming, the
creator of James Bond, the laconic, cruel hero of the
British Secret Service, had a penchant for Cartier watches.
James Bond became an icon for people seeking a personal
style. And even today Cartier continues to remain an
ode to beauty and workmanship.
Thus, born in corporate boardrooms, some brands like
Coca-Cola, Kodak, Colgate, IBM, BMW, Cadillac, Mercedes,
Barbie, Disney etc have become social artifacts, having
stolen their way into the popular lexicon and created
history. These forever brands have continued to survive
in spite of the changes taking place all around them.
And the passage of time has failed to tarnish their
glory. Take Coke, for instance. Who cares what Coke
is made of? What matters is only that its tangy flavour
has quenched the thirst of millions, its swoosh of effervescence
has soothed parched souls since the 1890s and its scarlet
hue has painted the world red. Haagen-Dazs continues
to have a significant impact in the growing super-premium
ice cream segment. Toyota’s Lexus sports-utility vehicle
sells well despite its $60,000 price tag and the availability
of many fine alternatives at half the price. And Waterman’s
newest entry, the Edison line, including a $400 ball-point
pen and a $700 fountain pen, are enjoying a brisk sale.
Growth codes of forever brands While on the one hand
we have a marketing meltdown that is flagellating at
least 50 per cent of all brands, on the other we have
a very select group of super brands that have continued
to achieve meteoric growth despite all odds. This begs
one question: what makes the forever brands different?
The search for the right answer is what has driven an
extensive research effort over the past few years to
extract the essence of the success and to study the
core ideas that have clicked so well with the consumers.
In the campaigns of the forever brands-campaigns that
have helped them survive the onslaught of time-researchers
have identified five ways to the consumers’ heart: self-statement,
emotion, perception, virtual benefit, pride and values.
1. Self-statement Consumers prefer your brand because
it expresses their (desired) character and identity.
This is all about the brand’s power to tell a sharp,
crisp and precise story about you. Brands help their
consumers define their identity and express it. Within
a split second, a brand can draw a complete picture
of the consumer character, personality and identity.
The forever brands are found to express precisely that
personality or character trait aspired to by the consumer.
To make the brand the ‘megaphone’ for what the consumer
wants to express, these brands are powered by a provocative
ideology that the consumers want to proclaim. Rolls-Royce
with its double R logo was born in 1937 and has remained
the target of the prestige market that demands performance
and luxury ever since. Mercedes and BMW, for instance,
have stood for opulence, prestige and efficiency for
decades and Cadillac—which will soon turn 100—has remained
very much in demand for its sleek beauty and stark dignity.
Similarly, Baume & Mercier, with its origin in the Swiss
Jura, the heart of Switzerland’s watch industry in 1918,
has earned its success down the decades with its delicate
balance between tradition and modernity. The sober,
casual elegance of Baume & Mercier watches has remained
a craze with the rich and the famous, and its core concept
continues to find its statement in its constantly updated
collections. Smokers buy Marlboro because it makes them
feel independent and free like a cowboy. Likewise, the
liquid gold of Chivas Regal Scotch and the orange flame
of the Dunhill lighter have forever made one feel ‘on
top of the world’.
2. Emotion Consumers prefer a product or service because
they love the brand. To generate feelings so powerful
that consumers will buy the brand out of love, brands
were positioned as an ally to the consumers on an important
emotional stance, which the marketers failed to notice.
The bond arising from the customer’s entire experience
with the brand leads to a relationship that can last
forever. As the alignment grows stronger, so does the
brand. People love it. And they buy it. For example,
the European telecommunication major Orange, which is
among the great brands that left its competitors flat-footed
in the last century. Even though Orange delivers a tangible
service, its message has always wandered away from the
stereotype. Loaded with emotion, Orange’s brand message
is actually all about life. Orange is a brand with a
beating heart, a brand that lives. Barbie, another case
in point, has been smiling in our homes for several
decades now and also has become a part of our family.
Her beautiful versions, dressed up as pilots, astronauts,
nurses, fashion models, rock singers and presidential
candidates, have been shaping the dreams of little girls
for several decades now. De Beers, for years, have not
merely dealt with diamonds; they have been dealing with
something as intangible as love.
3. Perception The way we perceive things is the result
of programmes deeply ingrained in our minds. Consumers
prefer the brand because perception and behaviour programmes
point to it as the only logical choice. To transform
them in the consumer’s perception, brands have been
positioned as an asset that will catapult them into
a higher league-leaving all the other ‘functional’ competitive
products and services way behind. Incorporated in the
state of New York on June 15, 1911, IBM offered the
masses “solutions for a small planet” and was trusted
by all; there was even a saying, “Nobody ever got fired
for buying IBM.” Similarly, 120-year-old GE became the
market leader with its trustworthiness, intelligence
and a promise to “bring good things to life”. Colgate,
which came into being in 1806, made its first toothpaste
in 1873 and is shouldering the onus of maintaining dental
hygiene ever since. The values Colgate stands for are
reliability and assurance. While Amul, born in the villages
of India, went on to create ‘The taste of India’, Gucci
remains the prestige and fashion of Italy and Louis
Jadot wine is revered globally as an asset of France.
4. Virtual benefit Consumers prefer the brand because
it offers a compelling (virtual) benefit. To shape a
virtual edge over competitors, brands were linked to
a mind-movie that projects those specific values that
are relevant to the purchase decision. With the unique
flavour of its whipped frozen cream, Haagen-Dazs, an
American ice cream brand with a Scandinavian name, reminds
one of clean, pure mountain air, crystal-clear ice,
an azure sky and the virgin beauty of Scandinavia. Kodak,
born more than a century ago, has since its inception
shouldered the onus of freezing moments into eternity
through photography and has been doing so with utmost
dexterity till today.
5. Pride and values Consumers prefer a brand because
it resolves an inner conflict (with their norms and
values). The brand can, for instance,
* Eliminate existing feelings of guilt l Challenge,
and satisfy, a consumer’s pride
* Neutralise taboos connected with your product.
To appeal to the consumer’s sense of pride and values,
some brands have challenged the pride of the consumers
and have positioned themselves as means of satisfying
it.
When Mercedes Benz decided to build its new M Class
off-road vehicle, it started by sending to a section
of its prospective customers a personally addressed
letter from its head asking them to help the company
design a brand new off-road car. This was followed by
a series of questionnaires for guidance on design issues.
Customers felt honoured. And Mercedes created history.
Launched in 1923 with the first Mickey Mouse cartoon,
Disney reinforced the ‘childhood at any age’ theme and
encouraged people of all age groups (from eight to 80)
to bolster their relationship with the brand. Revlon’s
Charlie, a fragrance designed for and aimed at the new
woman, showed a self-aware beauty more comfortable in
the corporate boardrooms. It has remained a success
ever since its birth. Harley Davidson, the 100-year-old
motorcycle-maker, has always reflected the cult of iconoclastic
freedom. Levi’s has always made its wearers perceive
the spirit of youth, rebellion and independence.
Evolution of branding of forever brands The success
of these forever brands reflects the growing realisation
that as consumers and competitors have changed in fundamental
ways, so must the nature of the brands. The role of
brands with respect to consumers’ goals has evolved,
as have the goals themselves. And the stages have been
sketched below:
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After
the Second World War, consumers turned their
attention to their personal lives. They were
anxious to achieve and also to belong. This
era produced many ‘classic’ brands. These brands
were typically linked to a single buyer goal,
which was largely defined by the product function
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Stage 1: Brand linked to a single buyer goal
After the Second World War, consumers turned their attention
to their personal lives. While many factors, including
mass production and television, facilitated the building
of mass-market brands, the general concept of branding
succeeded because it was compatible with goals that
were widely shared at that time. Consumers were anxious
to achieve and also to belong. This era produced many
‘classic’ brands. These brands were typically linked
to a single buyer goal, which was largely defined by
the product function. Buying Tide or Ariel ensured that
homemakers would achieve their goal of clean laundry.
Eating at McDonald’s guaranteed a delicious meal without
any hassle.
Stage 2: Brand tailored to meet wider range of goals
With basic functional needs met, buyers turned to a
wider range of goals. While all consumers expect detergents
to clean clothes, some value detergents that can wash
delicate clothes or those that can offer an environment-friendly
solution. Recognising this development, brand managers
segmented markets according to the benefits buyers sought.
Benefit segmentation produced remarkably successful
‘contemporary’ brands. These brands, broader than classic
brands, are built around functionality and associated
benefits. Volvo cars, for example, most certainly serve
the basic transportation function associated with motor
vehicles. But the Volvo brand does not just stand for
reliable transportation. It is the car for that segment
of consumers for whom the protection of self and family
is a primary concern. The link between the brand of
Volvo and its goal of safety has been carefully built
over time. Consumers have been taught about the reinforced
steel beams in the car’s roof and side panels that protect
the driver and passengers. Advertisements feature crash
survivors who testify to their belief that their Volvos
saved their lives. Customers for whom safety is a salient
goal are likely to buy a Volvo. And those who seek high
performance and status are likely to be drawn to a BMW.
Stage 3: Brand tailored to woo the post-modern consumers
The ‘post-modern’ buyer presents a serious challenge
to classic and contemporary brands. Volvo’s US sales
suffered in the later years as safety features have
become standard in most cars. While some companies such
as Gillette continue to grow by constantly raising the
standard of product performance with respect to a single
benefit (for example, ever-closer shaves), it is obvious
that the contemporary approach to brand building offers
no guarantee of success with post-modern buyers. The
emergence of the post-modern buyers creates opportunities
for building brands that will meet their goals. Brands
have evolved from serving specific, functional goals
to playing a central role in customers’ efforts in goal
management. The new mindset suggests a variety of new
strategies for building brands of which three are found
to be successful:
To satiate neglected goals
Today’s time famine often results in consumers focusing
on goals such as financial security, social responsibility
and social acceptance instead of more internal, self-oriented
goals. Brands may forge strong bonds with consumers
by focusing on intense, concentrated satisfaction of
these neglected goals. Professionals who are bogged
down with work during the week encourage their neglected
individuality and rebel spirit by riding Harleys. And
this has been facilitated by Harley-Davidson’s clever
brand extensions. Everything from black leather, spike-studded
jackets to stick-on tattoos can be bought to complete
the transformation from cold, severe executives to Hell’s
Angels.
To meet multiple goals
As buyers seek to achieve an increasingly large number
of goals, brands help by enabling the consumer to satisfy
several goals at once. Volvo is, for instance, expanding
its traditional safety-focused positioning to encompass
goals of individuality and self-statement. Volvo cars,
we are now told, not only protect the physical person,
they also contribute to one’s psychological well-being
by enabling escape to remote, pristine settings. Waterman’s
Edison line pens are not only linked with the single
goal of status but are also potential heirlooms and
can be treated as family assets to be passed down to
future generations.
To reconcile with conflicting goals
An alternative strategy for post-modern brands is to
reconcile seemingly conflicting goals. Levi’s Dockers
brand illustrates this point. Levi’s actively encouraged
and helped some companies implement the concept of ‘casual
Fridays’, on which workers could forgo suits and wear
more casual attire. Levi’s motivation for this strategy
is obvious: on casual Fridays, men would wear the Levi’s
Dockers that they normally wore only on weekends and
sales of Dockers would increase dramatically.
To focus or to diversify?
Some of the legendary brands have used the initial brand
platform to move into other opportunities (diversified
brands) while others maintained a focused link between
the brand and its core product line (focused brand).
Studies indicate that the focused forever brands (such
as Gillette) earn 0.9 per cent more than the average,
while the diversified ones (like Disney, GE) earn no
less than five per cent.
Game plan of focused brands
Two main strategic imperatives have helped focused forever
brands succeed.
1) Owning and broadening the category
They have strived hard to ‘own’ the category by making
their brand’s personality thoroughly distinct and then
tried to broaden the way consumers think about the category
and the brand. Focused forever brands have performed
remarkably better using six primary personality traits
viz. youthful, fun, adventurous, exclusive, outdoorsy
and romantic. Redefining categories opens the playing
field for a category brand. Coca-Cola managed to redefine
its category from cola to carbonated soft drink to liquid
refreshment. Gillette moved from a tight focus on razor
blades into shaving cream and after-shave, effectively
redefining its (still narrow) category as men’s grooming
products. Then it added women’s shaving and grooming
products to make the business fit into the personal
care category.
2) Capturing all occasions
The brands were then made truly pervasive by seeking
out every possible sales opportunity by crowding sales
channels and locales to maximise penetration and by
using alliances to build presence quickly. Coca-Cola
is one of the best examples of a company that swarms
sales channels and locales-not only vending machines,
fountain service, supermarkets and convenience stores,
but also movie theatres, video stores and even taxis,
where the company places coolers.
Game plan of diversified brands
At the other end of the spectrum, diversified forever
brands pursue three strategies:
1) Creating the golden thread
The ‘golden thread’ is the core of the brand personality
that ensures that customers always experience the brand
in a consistent way. For instance, Disney’s golden thread
is the concept of wholesome fun.
2) Building high-credibility personalities
All forever brands have characteristics that enhance
their credibility and inspire trust in consumers. But
broadly, diversified brands seem to distinguish themselves
most in the areas of trustworthiness, leadership and
intelligence. IBM and GE, both of whom are significantly
stronger in such elements than their competitors, illustrate
this point well. The two companies communicate confidence.
Consumers feel that if they buy these brands, they will
not go wrong. For a few years, when IBM forfeited its
leadership of the computer industry, this percept may
have seemed untrue. But it is a measure of the brand’s
underlying strength that after a few years the company
is again back on top.
3) Leveraging aggressively
Having found the golden thread and having built a personality
around it, diversified brands move to cross-sell and
then to claim as their own new industries where brand
intensity is low-and where their brand thus enjoys a
competitive advantage. Sears, for instance, has been
successful in developing new businesses outside its
core retail activities. About 75 per cent of the company’s
growth over the past 10 years has come from non-retail
sources. Many strong companies have used their brands
to move quickly into industries with low brand intensity.
Disney, for example, has made a foray into cruise lines,
tourism and movies.
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Consumers
cross the threshold from a mere brand relationship
into emotional loyalty when they ‘animate’ the
brand, giving it quasi-human qualities and relating
to it in the same way they relate to human beings.
This was, perhaps, the reason why Coke consumers
felt betrayed by the formula change of the New
Coke
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Five essential factors for brand success
The success of the forever brands has largely depended
on the following five basic factors of branding:
1) Awareness
Awareness is necessary for a brand’s success. But it
is not sufficient in itself. One might know about Morgan,
Britain’s 88-year-old racing car, but might not get
anywhere close to buying it. It is, however, surely
the first cut.
2) Equity
Awareness, however, needs to be converted into a relevant,
positive set of attitudes otherwise known as brand equity
to begin to add value. Brand equity distinguishes brands
that generate awareness but few customers, from brands
that are relevant and positive in the minds of a customer
base. Moet & Chandon may have a high awareness image
worldwide but lack relevance to anyone whose household
income falls below a certain level. On the other hand,
Union Carbide has high relevance but lacks a positive
brand image due to the ongoing controversy.
3) Share
Brand equity leads to active purchasing, which in turn
creates brand share. If the active purchaser continues
to support the same brand, that leads to brand loyalty.
To capture mind share, marketers need to look at loyalty
in a robust way.
4) Loyalty
Emotional loyalty occurs on one of two pathways, each
with its own threshold.
* On the first pathway, emotional loyalty is born out
of a consumer’s personal relationship with the brand
which may have very well started through the satisfaction
of a functional need (for example, reliability of Mercedes)
or an expressiveness need (for example, Gucci). Consumers
cross the threshold from a mere brand relationship into
emotional loyalty when they ‘animate’ the brand, giving
it quasi-human qualities and relating to it in the same
way they relate to human beings. This was, perhaps,
the reason why Coke consumers felt betrayed by the formula
change of the New Coke.
* The second pathway to emotional loyalty is the formulation
of a strong user community around the brand. On this
pathway, the consumer crosses the threshold to emotional
loyalty when membership in the brand’s user community
becomes an end in itself. Thus, the brand becomes a
nexus for people for whom fulfilling similar aspirations
is a major life theme, as is the case in Harley-Davidson
motorcycle clubs. 5) Value
When brand loyalty starts working, it delivers a robust
earning stream and generates shareholder value. Strong
branding can generate enormous shareholder value. A
large share of Coca-Cola market capitalization is accounted
for by its intangible assets, mainly its brand. When
Coca-Cola’s market capitalization was $165 billion,
its book value excluding goodwill was $16.2 billion-less
than 10 per cent of the total. This means that as much
as 90 per cent of Coca-Cola’s value is intangible, much
of which is derived from the brand. When Sony is rated
at $15 billion, Budweiser at $12 billion and Kellogg’s
at $11 billion, they are all talking about the companies
behind those brands.
Conclusion The world around us is changing beyond
recognition. And so is the temperament of the custodians
of civilization. In order to keep pace with the times,
the legendary brands went ahead to make small compromises
with the fascinating changes around them while their
core identity remained as unaltered as a genetic code.
On the other hand, in order to give a better statement
to their inner-selves, men, in their crazy pursuit of
mundane goals, kept falling back time and again on these
evergreen brands which have, down the years, enhanced
their credibility, commanded trust, captured mind shares,
earned loyalty and generated enormous shareholder value.
Like an ode to the very event called life, these eternal
brands are marching ahead in step with time, thereby
ensuring their success for many more years to come.
References:
1. What Makes The Winning Brands Different, Buchholz,
Andreas and Wordemann, Wolfram, John Wiley and Sons,
2000
2. If Nike can ‘just do it’, why can’t we? Court, David
C., Freeling, Anthony, Leiter, Mark C. and Parsons,
Andrew J., The McKinsey Quarterly, 1997, Number 3
3. World’s Most Valuable Brands: A Closer Look at Measuring
Brands, Rusch, Robin D., www.brandchannel.com
4. Brand Zealots: Realizing The Full Value of Emotional
Brand Loyalty, Rozanski, Horacio D., Baum, Allen G.
and Wolfsen, Bradley T., Strategy-Business, Fourth Quarter,
1999
5. Uncovering the value of brands, Court, David C.,
Freeling, Anthony, Leiter, Mark C. and Parsons, Andrew
J., The McKinsey Quarterly, 1996, Number 4
6. What makes a brand great, Grimaldi, Vincent, www.brandchannel.com
7. Brand leverage, Court, David C., Leiter, Mark C.,
Loch, Mark A., The McKinsey Quarterly, 1999, Number
2
8. Meeting the challenge of the postmodern consumer,
Tybout, Alice M., Carpenter, Gregory S., Master Marketing,
Business Standard, November 2001 .
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