Many dominant brand and eponymous businesses have disappeared over the years.
Remember Compaq? Kodak? Nokia?
Each a market dominant brand, global in scope, led by sharp business experts. What happened?
Each day a monolithic brand encounters a disaster – be it an oil spill, politically incorrect posture, exploitative labour practices, poor communication, service failure or failing engines!
Brand equity and appeal is a precious competitive asset. The power of a brand lies in its intangibility as well as its assumption of various tangible forms as products or brick and mortar.
The role of technology, innovations and brands has risen in relevance as businesses moved farther and wider. Globalisation and the unfettered movement of massive capital, goods and services across borders has made it important to manage brands, technology and talent on a worldwide basis.
As the convulsions of old world capitalism shake up the world order, the value of knowledge and branding has risen sharply relative to natural resources and physical equipment. This has reshaped corporate fortunes and national economies.
Rupert Murdoch’s News Corp bought the venerable Wall Street Journal, in 2007, for a total consideration of $5.6 billion. Google purchased Double Click the same time for $3.1 billion. DoubleClick was then 11 years into its existence. Then , soon to follow, Microsoft bought the even more fledgling aQuantive (started in 1997) for $6.3 billion. Now digest this – The hallowed establishment of WSJ with all its paraphernalia and clout sold for half the price of a couple of online ad serving firms.
When Kodak filed for bankruptcy, Instagram – a company with 12 employees and zero revenue – was purchased by Facebook for $ 1 billion. At the time , for that valuation, Facebook could have chosen to buy the New York Times.
In each case the duality is seen – Either the brand took a tumble and never recovered or the underlying business model or product began to fail and the brand tanked with it.
Active brand management teaches one business sensibility even more perhaps than it teaches one about consumers and creative communications. I was schooled in marketing On The Job at Hindustan Lever , where the business was run at a brand-portfolio –category level by brand marketers.
The stencil to lay on top of any business decision making jumble is that of the brand framework . What is the brand’s business and what is the business –brand interaction ? This question clarifies the next steps to take.
- What unique reason for the brand to be in existence ? What does it make happen that would be missed in the world were it to fail or disappear ? What territory emotionally and/or in the value chain does it own ? e.g. Rolls Royce – Regal Luxury.
- Who is the brand for ? e.g. Schweppes is for catering to refinement, Body Shop – for those who care about the environment and fair trade
- A brand for what stage of life? Like Red Bull is hardly a post retirement beverage just as Dove would not be an entry brand for young consumers.
The examples and facets can be extended endlessly. The important thing to recognize is that positioning is , at first, a crucial business planning concept. It establishes the business imperatives and clarifies the brand territory. Since brands have voice and personality they engage with consumers and grow their market. They build a raison d’être for themselves in comparison to others. Be clear : Brand language and the business need are not on some parallel non intersecting planes as many award winning creative honchos will want us to believe. They are indeed in one continuum.
A brand serves a business. Its commitment is its external face and a voice of its soul. A brand builds an identity for itself. It gains coherence and character over time.
Brand management, like sound business management, plans for the long term. It is not about gimmicks , fickle or opportunistic moves. Often agency changeovers combined with plainly career minded brand stewardship have neglected this crucial aspect.
In focusing too much on advertising messages, brand management builds personality but not culture.
What is the Mercedes Benz Tri Star representative of ? Luxury , Status, German engineering ? It is all this and more. Likewise Coca Cola stands for America whilst Perrier offers a sip of France.
A brand can also sit in the same functional and performance quadrant and yet acquire very different cultural significance. A Visa credit card of mass issuance is utilitarian whereas an American Express corporate card is a perquisite, assurance and privilege of rank.
German and Automotive as criteria would qualify Volkswagon, Mercedes, BMW, Porsche – all obviously very different brands.
IBM cues rock solid assurance whereas Apple has California alternative culture and creativity attached to it.
Function, Form, Self-Image and Personality are independent and escalating elements of what constitutes a brand.
To list the basic stencil as a sign off. The brand gives the following (and more!) business benefits
Recognition and Ubiquity – I know this brand, it is larger than life. I have made a good choice
Pragmatism and Value – You can’t go wrong with brand X.
Assurance and Security – The brand will deliver. It will make your purpose come true.
Continuity and Familiarity – the brand helps me meet my needs and wants in a facile manner.
Pleasure and Satisfaction – It gives me sensorial and emotional gratification
Ascribed Status and Belongingness – People who own brand X are a breed apart.
One or more of these benefits and brand attributes may go into a downward spiral. If no genuine innovation, course correction, value re-equation or brand renovation is then forthcoming to rescue it the business and brand both erode.
Mind your business to take care of your brand and Mind your brand to grow your business.