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The 22 Immutable Laws of Branding
The 22 Immutable Laws of Branding
Introduction
Marketing is building a brand in the mind of the prospect: If you can build a
powerful brand, you will have a powerful marketing program
Today most products are no longer bought and sold ie: in a supermarket
there is no selling just buying. The consumer makes a choice based on the
products available with minimal assistance or prompting from staff
A brand name is nothing more than a word in the mind, albeit a special
kind of word
Aim high, you can never achieve more than you aspire to
Branding creates the perception in the mind of the consumer that there is
no product on the market quite like your product
When you put your brand name on everything, that brand name loses its
power
Case study: American Express used to have a very strong brand and
membership used to have its privileges, it used to be prestigious to own one
etc. Then it broadened its product line with new products and services. The
result was that its share of the card market fell from 27% to 18%
Consumers want short and simple names that they can identify with the
product. Marketers tend to go a bit far in the opposite direction and give
products ling names that they think will make the consumers identify their
brand as different
If the competition is week, you can expand your product in the market and
this may result in increased sales. But this only serves to show that the
competition is weak, not that you are strong
Narrowing ones focus is not the same as carrying a limited line. Starbucks
offers thirty different types of coffee.
Good things happen when you contract your brand rather than expand it
it is focused
When you only make one thing, you get pretty good at making that thing
The best way to generate publicity is by being the first brand in a new
category media wants to report what is new, not what is best
What others say about your brand is far more powerful that what you can
say about it yourself
Publicity is an essential tool for a product in its initial stages, but the
product will eventually outlive the publicity you cant rely on publicity forever
After the product has been written about and spoken about in the media,
get the media to concentrate on the company and how innovative the
company is etc. Once that avenue of publicity has been exhausted, then you
must turn to advertising
ie: First publicity, then advertising
You should look at your advertising budget as insurance that protects the
brand against losses caused by competitive attacks
When you say that the product is better consumers think that is what
they all say, but when you advertise that your product is the leader, they
think that it must be better
To build a brand you must focus your branding efforts on owning a word in
the prospects mind. A word that nobody else owns (eg: Volvo owns the word
safety)
In the same way that Kleenex owns tissue (Can you pass me a Kleenex
really means, can you pass me that box of tissues even though it may not
be Kleenex), Coca Cola owns cola, Band Aid owns adhesive bandages and
Rollerblade owns in-line skates you know when your brand owns the
category name when people use your brand name generically
You can only become a generic brand by being the first (Pepsi will never
own the word cola even if it outsells Coke
If you were not the first in your category, you can become the first by
creating a new category by narrowing your focus eg: FedEx overtook Emery
because Emery offered all different types of services. FedEx concentrated
only on overnight deliveries and soon became famous for being able to
deliver packages overnight, while Emery was not seen to be able to deliver
that quickly
The product itself might have a visual reality, but its the brand name and
its associations that give the product meaning in the mind of the consumers
Dont expand the brand, expand the market make your product the inthing in your industry eg: Hey, this data must be important because it was
analysed using ICRFS
Leadership is the most direct way to guarantee credentials for your brand
Everywhere that the brand name is used, so are the credentials (The
Real Thing was used in the 70s every time Coca Cola was mentioned
When you contract your lines and focus on one thing you become a
specialist rather than a generalist a specialist doctor is better qualified than
a general practitioner
Having a high price also gives consumers the impression of quality can
a Rolex keep better time than a Casio watch? No, but it is better quality
because it is more expensive (does your waiter suggest a $20 bottle of wine
when you ordered an $80 bottle, even if the cheaper one tastes better? No,
because the price tag determines the quality)
Having a quality product will save you time and money on service costs
later on, but quality alone will not build a brand
When you narrow the focus to such a degree that there is no longer any
market for the brand, create a new category
Create a new category and become the first and thus, the leading brand
To build something out of nothing you have to launch the brand in such a
way that there is a perception that you were the first and you have to promote
the new category
When Apple launched the Newton, they forgot to categorise it. They called
it a PDA, but a notebook computer, mobile phone or electronic organisers can
all be classified as Personal Digital Assistants. You knew that Apple was in
trouble when they launched an advertising campaign What is it?
In the long term, the unique idea or concept disappears and what is left is
the company name
Xerox built the first plain paper copier. Today all copiers are plain paper,
but what distinguishes Xerox from the rest of the market is their name
What is important is the perception that the name creates (eg: A Rolls
Royce may not really be a better car than a Jaguar or a Bentleigh, but the
name suggests that it is and you have to believe it because it is the Rolls
Royce of automobiles
The most valuable asset of the Xerox corporation is its name it is short,
unique and connotes high technology
Product A is released and is doing well (Lets call it Acme Beer) so then we
extend the product line to attract more customers Acme Light, Acme Bitter,
Acme Extra Taste. You dont attract more customers, but you shift customers
from Acme Beer to the extended lines isnt an Acme Beer drinker more
likely to try Acme Light than a Budweiser drinker?
If you extend your product you may be suggesting that the original wasnt
the best. That is why New Coke failed wasnt the Real Thing really the
Real Thing? Should Evian launch Sulfate Free Water wasnt the original
water good for you?
Management often measures the extension rather than the new product.
So just because Kellogs Fruit Loops is successful, it doesnt mean that
Kellogs Healthy Style Fruit Loops will also do well IT MAY ERODE YOUR
ORIGINAL LINE but
What will customers of the current brand think when they see your
extended brand?
If the market is moving out from under you, stay where you are and launch
a completely second brand (ie: not ICRF-Plus2 but ABCDE brand)
One of the best locations from a number two brand is right across the road
from the leader both brands will benefit
But when there is too much choice, consumers get confused eg: in
California there are 1,000 wineries and 5,000 brands but no brand leader
Two major brands work well eg: Coke and Pepsi, Kodak and Fuji, Duracell
and Energiser
There are many successful companies that have generic names (eg:
General motors, American Airlines, International Business Machines).
The success of these companies are probably due to the fact that they
were the first in the marketplace, not their names eg: National Biscuit
Company was the first national biscuit company; General Electric was the first
General Electric company etc
National Biscuit Company now calls itself Nabisco (there are many
biscuit companies, but only one Nabisco)
General Electric now calls itself GE (There are many general
electric companies, but only one GE)
National Broadcasting Corporation calls itself NBC (There are many
national broadcasting corporations, but only one NBC)
Try to find a regular word taken out of context and used to connote the
primary attribute of the brand eg: Blockbuster for Blockbuster Video
If you cut a generic name in half, you can come up with a good name eg:
Intelligent Chip Company is too long and too generic but everybody knows
and remembers Intel Intel is a powerful brand because it reminds
consumers of the word intelligent without actually saying it
Line extensions fare poorly. This is often caused by combining the brand
name with the generic name eg: Fosters Light can be perceived in the mind
as Fosters light a watered down version of Fosters
Should the brand name dominate the company name or should the
company name dominate the brand name should they be given equal
weight.
The brand name is the word that the customers use to describe the
product eg: Do you want some Coca Cola? I bought a Cadillac today. Put it in
an Excel Spreadsheet
Microsoft Word this is a generic name because there are other word
processors that use Word as part of their name (Wordstar, WordPerfect etc)
So consumers tend to refer to it as Microsoft Word (or MS Word). This can be
bad for the company because the name is too long (eg: people dont say,
Can I have the chunky soup? they are forced to say, Can I have the
Campbells Chunky Soup)
Your company name should not dominate your brand if you make the
company name too small consumers might get suspicious that you are trying
to hide something. If it is too large then the company overshadows the brand
and CONSUMERS BUY BRANDS, NOT COMPANIES
Holiday Inn has many subbrands Holiday Inn Express, Holiday Inn
Select, Holiday Inn Sun Spree Resorts, Holiday Inn Garden Court. When you
went into a Holiday Inn, you knew what to expect. Because of all of these
subbrands, you dont know what to expect
Ford is not a brand. The brands are Laser, Falcon and Fairlane Ford is a
Megabrand, but consumers dont understand this concept.
There does come a time when there is a need to launch a second brand
but not so that it detracts from the original brand
Some managers want to take advantage of the equity that they have in
their brand, but they are mistaken if they use the existing brand to support the
new one as it could damage the original brand
Siblings are not associated as being in the same category as the other
members of the family
The siblings can all be controlled by the same parent. Upper management
has to be more involved to ensure that there is no mixing of the siblings so
that they remain separate
Do not tag the company name onto every sibling do Lexus buyers buy a
Lexus because it is made by Toyota? Or in spite of the fact that it is made by
Toyota
A sibling strategy can be used to dominate a category over the long term
A logo:
- should be horizontal
- should be legible
It is best to stick to the five basic colours of red, blue, green, yellow and
orange rather than a mixed colour or combination of colours
- Red is the colour of energy and excitement (Coca Cola)
- Blue is a tranquil colour but also a corporate/leadership colour
(IBM)
- Orange is an in-between colour which is like Red,
- Green is the colour of the environment (eg: Vitamins, Health Foods)
- Yellow is a neutral colour that also is associated with caution (road
signs)
Focus on the identity that the brand should create, not just the mood
Choose the best colour possible, but if there is another brand with that
colour, choose the opposite colour
The colours that you choose will determine whether consumers can
visualise your logo or not eg: Coke is easy to visualise (lots of red) but
Pepsi has two colours and it is difficult to picture
Sometimes, but rarely, a case can be made for multiple colours eg: FedEx
chose two colours that would be sure to stand out on someones desk
orange and purple
Building a global brand means: keeping the brands narrow focus in its
home country and going global
Coca Cola is one of the only brands that can be classified as being the
closest to a truly International brand but it must stay with its American
heritage because every brand must originate from somewhere
It doesnt matter where the brand originated, is produced etc, the name
and the associated connotations determine its geographic perception eg:
Hagen-Dazs ice cream sounds Scandinavian, but it was developed in New
Jersey
The use of English words in promoting a brand and in the brand name is
important because English has become an international language (Red Bull
energy drink is Austrian, but they dont call it Roter Stier!)
The name of your product doesnt have to be an English word but must
sound like one.
A brand cannot get into the mind unless it stands for something. BMW has
been the ultimate driving machine for 25 years
Brands should never change they can be bent slightly or given a new
slant but not changed
If the market moves, stick with the brand and the cycle will come back to
you (just because the trend is towards white alcohol (gin, vodka etc) Jack
Daniels would destroy its whiskey line if they introduced Jack Daniels Vodka)
Limiting the brand is the essence of branding. Limiting the brand and
being consistent (over decades) is the key to successful branding
Brand changing occurs in the mind of the consumer, not inside the
company
There are 3 feasible situations for changing a brand:
1. Your brand is weak or non-existent in the mind of consumers (eg: not
many realised that Intel was originally a producer of RAM but moved into
processors nobody but those directly involved even noticed! If they
were to try to move back to manufacturing RAM, they would fail because
their product is strong in the minds of consumers)
2. You want to move the brand down the food chain. Lower the price of your
product over time and make it cheaper. This often helps a company to
gain market share (Marlborough did it). Moving up is far more difficult
3. The brand is in a slow moving field and change will take place over a
period of time. Eg: Citicorp is slowly changing its brands focus from
corporate business to consumer business
Brands have a life cycle they are born, prosper and die.
Companies spend millions trying to change an old brand (Kodak uses the
Kodak name on all digital products to try to change with the market)
Opportunities for new markets are always being created with the birth of
new categories
A well known brand that doesnt stand for anything has no value and a
brand that stands for something but is not well known has value because
there is the opportunity to create a powerful brand
Brand new brands make the impact, not rehashed old brands (eg:
Blockbuster video became a market leader in video rentals even though it
was up against established companies who were too generic and not exciting
enough in the new category
Your brand must be a single idea or concept that you own inside of a
prospect if it is too many things at once, it is confusing and becomes
worthless
What is an Atari? It used to be the most popular games console but then it
became a computer and now it is nothing because it lost its singularity
Volvo sells more cars in the US than BMW or Mercedes because over 35
years it has stuck to its concept of burning into the minds of consumers that it
is the safest car on the road