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The puresttreasure
Ilr.ands are among a companyrs most valuable
assets.Thir
nlanagement page looks at why they are
so rarely treatet
Ri(A N D S a r e i n s u b s t a n tia It} r in g s,m e r e o r d in a r yb r a n d m a n agers.S uchas.r,stemi s
I J s lrn h o l s , n ; r m e s , a sso cia tio n s.So - m e r im e s M ANA GE ME N T tri ed at C ol gate-P al mol i ve anri (' anada
I FOC IIS I f.i "g
. h. )s i g n . r l r e a | d i f f e r e n ce s5 ..' t...n *..Dr y:

ll''sot rr b e s t -
are abandoning-brand-building .Etiuiti..'. S ellin Sb
)srtr^) ra ndd\Va
Dran . n) School shorvsth"t suih promorions have no ;
such as- advertlsing,in. favoui of tacrics; las-tingeffectonsaleso.tr".,dloyalty.
Some j;.
rt;:,'ff:"H,:r#.l"
^,i'!.'.';irr Uj
A I l:\*h/ffi_
,,'r;ilIj:'i,"ij:.1y,".T1"'il';
t,
>Y(_f;ffh
promotions accountedfor about'athird of ai -\ ' '
;
'--*-\fttiJ
ends, almost all of them go back io th. o1e
ii-,
*rtt' .a'..ti,in! rrurrr:
l) t, lt l: th.r;iiailtyp.5tJ.
:l:,,ldl.c
:i :1.r-.lk.l.'c, l._^
lV / '*":ll )t)lo' -p.".n.':,i.',thatmerely a discountili
';, 'ip ;.';.',:-N;i, ;:;..'ffil:'il:
propot ti o n s h a v e r e v e r s e d. /
I 13(l
- l -l -
/l
),: offe,.
or a rebatq-can cheapen.a brand' s i mage.
^. . \ ,
o-":i-lr
A lorthcoming book*
" ,,,il",jt]g David
by David Aaker,
Aaker, (/ \\[ ''o Sinceprice is often a signalto cons,r-e.s oif
"' ,i
.,ll:::t'-"-::-q
professorat tJre University of"1 f\ .,"\*
C\ ,- \ l::::,H-*^iI:] -l:rry"r,:1".""i'1'1.',".',r" "
Product'squalirl'(rvitnessluxurydrinkslike ,.
,',

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:l \'4 Y, _,-<\.\ \
::lltJ:l;',f,'lfi:;ii.;,,';,T: '
;T;i.?:',"i|:.:,$"#.$1ff1':
Aaker, to iry promotit'n, thrt ,einio.Je th.
ro,,*n, s..- downmarket. '
L:,11r,,TA{;.",1;, *H}:.T:::j
.cadirac,st- "niu,i,,yf"
with its cheapercimarron
::'j,:T:;;*,",.r,'"?J u"'r.,,g
;FJl"1:".1;:J'm:n";.Jt*T_T:
i" *. .'".iv
i.
i'imit".ly, thoughtful brand-srretching
I 980s' Dilu[ins cadillac's-"a.r
*"b ,p;;"i;i', rss."n io. onty help
7soff image-conicious a nerv product break into I
buvers wlio' might *"r"i;i';r;'k"l;;;'"#
normally have been kJ.n JJ'enhance the ,t:.
on ,h.-";".;. ioi.'i..na', r.alue. Frozen-juice bars and il.
Undisciplineduse of the Gucci
name almost ritamin_C tablets have reinforced Sunkist,s :. ,
brought the companyto ruin;^-at
one point .."r!.-Egljmage ofgood rr."r*. gri;"" , ,
*ol::',J:'" some
14'000
different
iuccil4o:...:?."r* '
", ;Til1,#::i,n-iJr*i
uith all things M. A.ke. says the
compan)'rvould -uopicall
be srretchingthings too lar
lt it opened a Fopical_travelservice. l{is
45adviceio brand
echoesthe words
of Darid Ogilvy,,
-rr,.g.r,
a le-gendaryadmzu1l-.,,The
consumer is no moron; slg-g;y-o-,1!.]gjfe_"
r Brand EquiN. By Darid A. Aaker, Free press,
Thefailureof challengers
to.overcome -.\lan-aging
ss the resilienceof "n"mes iilSi;l}f.f,.t'_i,,X**:1i"",1"":.;J,T-ll;l'"11
,,,
familiar has led to e Business slhoorp..ri-,,".y,.po*,
mt"igl,:."t"n ;..:

@Th Economist