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The Fundamentals of Branding - Melissa Davis19
The Fundamentals of Branding - Melissa Davis19
F
Best practice Brand associations
Melissa Davis
ISBN 978-2-940373-98-7
10 9 8 7 6 5 4 3 2 1
6 12 40 70
How to get the most out Defining branding Brand structures Understanding the
of this book brand audience
16 46
8 Brand history Brand families 74
Introduction Audience attitudes and
24 48 social shifts
The marketing The brand development
matrix methodology 78
Developing brands for
26 50 audience ‘types’
The basic brand Brand positioning
development process 82
52 Brands, ethics and
28 Brand values responsibility
Teamwork and
talent 56 86
Developing the The digital audience
30 ‘creative’
The agency 92
playing field 60 Employee audiences
Communicating the
34 brand
The client/agency
relationship 64
Maintaining the
brand
1 2 3
4–5
162
Moving the brand
forward
4 5 6 +
2 Deconstructing How to get the most 1 What is a brand?
brands out of this book
The Fundamentals of Branding is intended Case studies and images of brands are
to give the reader an overview of branding used throughout the book to demonstrate
and brand structures in an easily digestible different approaches to brands and
way. It is based on insight from branding branding. Exercises are also included in
professionals and from working within the every chapter to help the reader reflect on
industry. This book can be used by both what they have learnt; these also offer an
students and people in business who seek opportunity to be creative.
to gain practical knowledge and theoretical
insights about the discipline of branding.
2
Introduction
Deconstructing 1 What is a brand? 2 Deconstructing brands Brand history The marketing matrix The basic brand 24–25
brands development process
2
Introduction
Deconstructing 1 What is a brand? 2 Deconstructing brands The basic brand Teamwork and The agency 28–29
brands development process talent playing field
1 What is a brand? 2 Deconstructing brands 3 The changing brand The brand development Brand positioning Brand values 50–51
audience methodology
Brand positioning
A brand’s position represents the brand’s Mobile phone brands Distinguishing the brand
place in the market. It comes from
developing the product or service image so
that it occupies a distinct and valued place
Mobile phone companies have become
strong brands within the past five years as
In markets where product and service
differentiation is increasingly difficult, a
Box-outs
brand proposition should encompass both
in the mind of the customer. The positioning
will present a distinct proposition to the
technology capabilities have increased and
large brands continue to expand by buying
up local operators in emerging markets.
the functional and emotional connection
for the customer. Consumers, after all,
A more in-depth insight into
market that is in line with the brand’s values
and the needs and desires of the customer. Yet mobile phone brands provide similar
services to their customers. So how can a
increasingly expect brands to give them
more than just a product or service, so a particular area of branding
To determine a brand’s position, it is brand stand out beyond competing on price connecting at both the functional and
essential to understand what the brand
means to the customer as well as having a
or deals to get customers on board? emotional level is important. that is related to that chapter.
knowledge of the brand strategy. This then In the UK, various mobile brands have This means that products and features-led
forms the brand’s proposition – this is the taken a different brand position and vie for marketing strategies are only one element
central brand offer. The market proposition different parts of the market. For example, of what the brand has to offer. Brand values
will be a combination of desired perceptions
of quality, price and performance, coupled
the 3 brand and T-Mobile have strong
associations with the youth audience,
Orange pushes its creative attributes while
that are expressed through the brand
experience bring in another dimension.
In many cases, the customer will buy into
Images
with an emotional connection to the style
and tone of the brand, how people engage
with it and why.
Vodafone tends to project a more functional
image. O2, owned by Spain’s Telefonica,
brands that they associate with their own
personal values. Benetton’s advertisements
Images come from a range
associates itself with music – it transformed still manage to provoke
It is the strength and clarity of the
proposition that drives the marketing
London’s Millennium Dome building into
a music venue called The O2, promotes
Therefore, just as with human beings, the
‘personality’ of the brand matters! People
and carry a social message.
The ‘victims’ ad (above)
shows a Tibetan monk with
of local and international
will associate the brand with particular a member of the Chinese
strategy. This strategy will include ways
in which to reach the audience, including
where and how the brand is promoted
special entry to events for its customers and
also hosts the O2 Wireless Festival in
the UK.
characteristics, such as a tone or a style,
that may (or may not) resonate with their
military – in surprising
harmony. brands to highlight points or
The ‘Africa works’ ad (left)
and to whom. It will drive the brand
experience. The brand may differentiate Any savvy brand has to look at all
own personal tastes and desires.
Expressing innovation is also key to any
highlights entrepreneurial
Africa to defy the general
perception of Africa as
concepts in the text.
itself by a particular attribute – it may be the touch points where the audience brand – whether a consumer or business a nation dependent on
international aid money.
fun or aspirational; it may differentiate interacts with the brand – the total brand one. Clothing brand Benetton does this It also flags up the Birima
itself by age group, location (such as the experience. In O2’s case, the brand through provocative and, often, political microcredit programme,
which offers micro loans
Internet) or means of access (exclusivity or stands for being fresh and innovative and advertising. Brands also now need visibility to enable people to set up
membership). its goal is to always provide an enhanced Mobile phone brand, O2,
in the social networking space, rather than small businesses.
has successfully positioned
experience for its audience – whether itself as a brand linked to simply through traditional media forums
that’s improving the packaging design, music since its purchase
(such as advertising).
and rebrand of London’s
in-store experience or providing priority Millennium Dome – now
tickets to see a band at The O2. called The O2 (above).
Adrian Burton
Creative director / Lambie-Nairn
2 Deconstructing brands 3 The changing brand 4 Branding techniques The digital audience Employee audiences Techniques to diversify 92–93
audience the brand
Employees are a core part of any brand. Internal branding Internal brands can be used as a device
They are a central expression of the brand
because they connect the company to
the outside world, as representatives of
An important audience for brands – and
just as critical as its customers – is its
to communicate a campaign or particular
part of the organisation. For example, mail
and express company TNT created a brand
Case studies
the company. Brand agencies will often
work on projects to help communicate any
employees. These employees are not
only representatives of the brand but can
be avid promoters – or critics – of the
called ‘Moving the World’ for its partnership
with the World Food Programme (WFP) – Offer extra analysis on
changes or develop the brand to employees. a partnership that played a role in uniting
‘Employee engagement’ has also become
a growth area as bosses seek new ways in
company that they work for. Branding
inside organisations – particularly within
TNT’s global employees around volunteering
and fundraising for the WFP.
a particular brand to
companies – runs wide and deep. Over the
which to motivate and engage employees,
to inspire them and make them more
productive.
past decade, organisations have become
more sophisticated at internal branding as
People within TNT can volunteer to work
for three months with WFP and become
demonstrate an evolving
Strong employee values within a company
are key to internal branding. Companies
a way to inspire and engage employees,
unite people across the company and
attract ‘talent’.
‘storytellers’ for the partnership. Employees
also fundraise for WFP. TNT has since been
recognised as a top European employer
area of branding.
often talk about employees ‘living the brand’ by Fortune magazine and the partnership
to create a consistent experience of the The growth in internal branding is significant has huge awareness within the company.
brand. The reality is that a company’s values as an increasing number of companies The branding of corporate responsibility
should be embedded in the company’s offer services rather than ‘things’. The initiatives as separate brand identities within
culture and company employees are the quality of that service can differentiate a companies is a current trend.
clearest expression of the brand values. This company from its competitors, and that
is evident in companies with strong cultures requires employee commitment and belief
– from big brands such as Microsoft and in the brand. After all, contact with an
Google to eco-brands like Patagonia. employee is often the first experience of a
brand (for example, in a shop or hotel). Yet,
communicating effectively to employees TNT volunteers work with
is quite different from communicating to WFP’s School Feeding
Programme (above). TNT
customers, as employees have different also runs a ‘Colour the
needs and expectations of the brand from World’ competition for school
children to raise awareness
customers. of global child poverty
and the work of the WFP
Leadership is a starting point for an (below).
organisation’s branding. Strong leadership
can help turn a brand around, changing
perceptions both within and outside the
company: Steve Jobs at Apple or Richard
Branson at Virgin offer examples of strong
characters at the helm. Leadership, however,
should not just come from the top of the
company: brand culture is also created
by employees and internal branding must
involve people at all levels of the company.
5 Assessing the brand 6 Brand futures Appendix Industry perspectives: Industry perspectives: Industry perspectives: 158–159
impact digital brand strategy innovation
Industry perspectives:
brand strategy
Introduction
The Fundamentals of Branding offers brands are those that are dynamic and These logos (right) represent
the identity of some of the
an introduction to the building blocks of adaptable, that are able to evolve as markets world’s leading brands.
creating and developing brands. Branding change and audiences segment. A brand is Technology brands such
as Google and Facebook
has now moved into everyday life in Western not simply about looking good. have reached global status
societies, affecting more sectors than within a few years. Others,
ever before as competition for audiences This book draws on the theory and practice such as Coca-Cola, Hoover,
P&G or Philips started over
intensifies. It is no longer a practice limited that sits behind brand creation. It discusses a century ago and remain
to companies: universities, charities and the aspects of branding such as brand leading brands despite
changing markets and tough
arts now use branding techniques, while architecture, brand values, strategy and competition.
branding is also applied to countries, cities, measurement and then demonstrates these
celebrities and individuals who want to academic principles. The book also offers
‘rebrand’ themselves. practical insights for students about agency
and in-house workings, by covering the
Branding is set for further transformation, as diverse roles within branding practice and
emerging markets become key markets for exploring the client and agency relationship;
Western brands. Many brands, from IKEA it explains the brand team’s individual and
to Gucci, have already placed themselves collective roles and draws on industry
among the new middle classes in China, expertise and recent campaigns. It also
India, Brazil and central and Eastern discusses the trends and developments that
Europe. At the same time, these emerging are impacting on branding today.
markets are pushing the growth of their
own homegrown brands and entering Branding continues to evolve within a
international markets. More informed context of significant global shifts, such as
audiences, increasing global consumption the collapse of the financial markets, as well
and new technologies that have enhanced as pressing issues such as climate change
global communications, have driven this – all of which fundamentally affect business
progress in branding and brand awareness. structures and behaviour. The marketing
The shift in both the importance of branding sector is also adapting to new technologies,
and the multi-directionality of market flows is cross-cultural influences and shifts in
unprecedented within our global society. consumer behaviour. Today’s students must
first understand and apply the fundamentals
However, as branding becomes a of branding and then go on to use that
mainstream practice and concept, it knowledge as the basis for developing and
also risks being widely misunderstood. progressing a brand. These theoretical and
Branding is not simply about creating a practical foundations will equip students
logo, strapline and graphics to ‘paste’ with the knowledge and insight with which
onto a company, country or person. A to build their own branding expertise.
‘rebrand’ will not instantly change the way
that an organisation or entity is perceived Brands may now be ever-present but
or behaves. A brand encompasses the reaching a leadership position and staying
perception of it and its reputation, as well there takes a lot of investment, hard work
as its tangible ‘look and feel’. It relates to and talent. Branding as a service sector
the behaviour of a company as well as to has grown significantly in the last decade
the customer experience of it. Its impact is to include a range of specialist branding,
quantifiable. The brand itself applies both communications and innovation agencies.
within and outside of an organisation –
to customers and employees. Successful
8–9
2
Introduction
Deconstructing 1 What is a brand? 2 Deconstructing brands
brands
What is a brand?
1
10–11
12
Defining branding
16
Brand history
24
The marketing
matrix
26
The basic brand
development process
28
Teamwork and
talent
30
The agency
playing field
34
The client/agency
relationship
Introduction
2 Deconstructing 1 What is a brand? 2 Deconstructing brands
brands
Defining branding
The terms brand and branding are now Brand and business
commonly used in everyday vocabulary;
yet, they are also terms that are often The term ‘branding’ is often used as a catch-
misinterpreted. In recent years, branding has all to define many things, from the general
become a fundamental part of companies, marketing of a product to a name change
organisations and even individuals. It is or logo creation. Developing a brand that is
now so closely linked to the workings of a sustainable requires a deep understanding
company, that if a brand suffers damage, so of how that business, organisation or person
too does the company. On the other hand, operates. The branding process offers a
a strong brand will boost the value of backbone to the business by helping to
the company. define the company’s position in its market
(including its place among its competitors),
But what exactly is a brand? It is much more and a direction and vision for the business.
than a logo or a name. A brand represents Once this is established, a brand strategy
the full ‘personality’ of the company and is can be formulated which acts as a blueprint
the interface between a company and its for the business and further defines areas
audience. A brand may come into contact such as audiences and brand values. In
with its audience in various ways: from essence, a brand is the encapsulation
what we see and hear, through to our of a company’s core value as well as
physical experiences with the brand and representing its aspirations and aims. It
general feelings or perceptions we have must be an accurate and authentic reflection
about a company. A brand encapsulates of the business and should be visible to
both the tangible and the intangible and employees as well as to customers.
can be applied to almost anything – a
person (like David Beckham), a business Brand and society
(Apple, Coca-Cola, Microsoft), a country,
or even a nebulous idea (George Bush’s Flexibility and adaptability are key attributes
‘War on Terror’ or Britain’s short-lived ‘Cool for any brand that wants to survive in a
Britannia’ in the 1990s). The products, constantly changing society and global
services and people of an organisation or marketplace. This does not mean that
entity are all part of the brand and affect a company must rebrand within a new
the way that audiences both perceive and economic climate or when entering a new
interact with a given brand. national market. However, a company will
often adjust the way it positions itself to
new audiences, particularly if entering new
markets. For example, Korean electronics
company, Samsung, was initially perceived
in Europe throughout the 1990s as a
lower-end brand because its products
were cheaper. In Moscow, meanwhile, it
was viewed as an elite brand. Samsung
now rivals Sony as a high-quality, consumer
electronics brand.
Defining branding Brand history 12–13
Case study
Google
Case study
McDonald’s
Brand history
As brands and branding as a discipline As brands emerge and develop – and many
has matured, so too has the relationship do not survive – it is critical that they stay
with brand audiences. Brand approaches ahead of their audience and reflect the
constantly evolve to engage audiences at society in which they exist. Brands often
different levels. Branding has shifted from reinvent themselves to do this. However, a
being simply about ‘identity creation’ – reinvention does not necessarily require a
that is, designing a logo, name and ‘look full ‘rebrand’ or changing of a logo and name
and feel’ for the brand – to a period of but can, instead, be done by ‘repositioning’
attempting to emotionally connect with the brand. For example, Nike’s ‘Just Do It’
audiences (for example, McDonald’s ‘I’m strapline was an addition to the brand mark
lovin’ it’ strapline; Nike’s ‘Just Do It’ and and became synonymous with the Nike
Apple’s ‘Think Different’). But today’s brand and its focus on athletes, rather
audience still expects more. than product.
The brand experience Other brands, such as the charity, Action for
Children, opted for a new name and image
Audience sophistication led to the in 2008 when its old name eventually failed
concept of the ‘brand experience’, which to create standout from other children’s
brings together both the tangible and charities. The old name, National Children’s
intangible elements of the brand through Homes (NCH), also related to its origins as
various ‘touchpoints’. A brand experience a children’s orphanage, which was no longer
endeavours to engage people with the relevant to the brand as it exists today.
brand at a level that captures the audience’s
senses. This idea also helps competing
brands stand out from one another –
airlines, for example, may offer similar prices
on a route but promise different flying
experiences.
The brand experience still matters,
particularly where service is a differentiator.
But branding now is moving into a phase
where brands need to demonstrate
their ability to deliver in addition to
emphasising their values. Areas such as
a brand response to environmental and
social causes, or great design, can help
differentiate a brand. In a leaner economic
climate, the functional attributes of a brand,
such as its quality, service and ability to
deliver on its ‘brand promise’ will also
stand out.
Defining branding Brand history The marketing matrix 20–21
Case study
Mini brand heritage
Case study
Coca-Cola
The role of marketing for companies is The diagram on the facing page offers a
now an established part of most company basic overview of the marketing process.
processes. It is as important to a company’s Brand development tends to involve a
development and long-term existence as is number of different agencies, including
the financial and legal arm of the business. a brand, advertising, digital and public
This is because many industries are now relations agency. Other specialist agencies
service-based rather than manufacturing- may be involved in campaign execution
based and competitors often differentiate such as an affinity marketing agency (for
themselves through services. So the partnership opportunities), social marketing
way that a company communicates to its (for online networking presence) or a
internal and external audiences is critical. corporate responsibility agency (to help
This applies not just to companies that communicate a ‘sustainability’ campaign).
own consumer brands but also to those Sometimes the client will appoint a ‘lead’
playing within the business-to-business agency to work with the other agencies
(B2B) market – where companies buy and to ensure that the brand ‘look and feel’
sell services to one another. Marketing, is consistent.
therefore, requires a long-term investment
and commitment.
Over the past decade, the role of the
marketing teams raised the status of
marketing on the business agenda.
Many companies now have a marketing
representative at board level, often as
a marketing, brand or communications
director. For major global companies
such as Virgin or Nike, it is the company’s
marketing and message that has
differentiated the brand over other
companies that may offer a similar product.
For example, Virgin has always positioned
itself as the ‘consumer champion’ – the
brand that protects the ‘little guy’ – when
entering a competitive new market.
This recognition of the importance of
branding means that brand agencies often
forge a direct relationship with the head
of the company (often the Chief Executive
Officer, or CEO) who may also input into
the brand’s development.
Brand history The marketing matrix The basic brand 24–25
development process
The marketing
process
This diagram outlines the
different stages of brand
development. It starts with
the briefing process with the
brief
client through to developing Branding
the brand strategy. There
are various roles that fit (client)
: market
Research
within the creative execution
stages, including advertising
es
and naming. An ongoing & audienc
communications strategy
is needed to maintain the
brand in the market.
ategy
Brand str
Social &
ental
environm
n s id e ra tions
co
execution
Creative
idelines
Brand gu
nce
Dig ital prese
g&
Advertisin
lo go o ti o n
Naming & prom
ardianship
Brand gu
, online
Websites edia
, s o c ia lm
ads
look &
Design (‘ of
e l’) & to ne
fe
voice
ication
Commun
strategy
Introduction
2 Deconstructing 1 What is a brand? 2 Deconstructing brands
brands
Large brands have complex management The following stages outline the different
systems but tend to be tightly managed, skills involved when developing brands. This
with small close teams from the company applies to creating new brands as well as to
and selected agencies working together. refreshing or updating brands.
Any brand development is an investment for
companies and will involve a step-by-step Formulating a brand strategy
process. The level of depth of the process
is also dependent on the project and the A brand strategy is critical to determine
allocated budget. the direction for the brand. This may be
managed ‘in-house’ (within the company
Understanding the market in which the itself) or done in tandem with an agency
brand will operate, as well as the audience, or brand consultants. As a general guide,
is obviously critical for any brand. Market it is often the branding agency, or lead
research and analysis is often applied marketing agency, that helps to create a
at the outset of any brand project, and brand strategy. A strategy should detail
can be carried out through focus groups areas such as understanding the brand’s
(offline or online) and market testing. The audience, its market (including competitors)
objective of most research is to support and should also integrate with the vision
strategic decisions and provide a thorough of the company. A company may also
understanding of the market. commission research into audience needs
and experiences of the brand.
Research offers raw information that
should lead to insights about audience Creative execution: naming and logo
tastes and reactions to products, services,
names and logos, for example, depending The strategy will feed into the brand
on the brief from the client. The results development stage, which involves creating
should feed into brand planning, the brand a look and feel for the brand, including
proposition and also into the creative the brand language (often referred to as
development of the brand. Any final creative its ‘tone of voice’) as well as the logo and
output should be checked against the name. An entire rebrand such as a name
original research to ensure that the brand or logo change may not be necessary, but
is delivering to the audience. changing the visual aspects of the brand
can reinvigorate or modernise it. This stage
of the branding process tends to be carried
out by the branding agency, which will have
designers and writers as part of the team.
The marketing matrix The basic brand Teamwork and 26–27
development process talent
Creative implementation:
advertising and digital presence
Case study
Interbrand
Case study
Saatchi & Saatchi
The client/agency
relationship
Case study
02 & Lambie-Nairn
Deconstructing brands
2
38–39
40
Brand structures
46
Brand families
48
The brand development
methodology
50
Brand positioning
52
Brand values
56
Developing the
‘creative’
60
Communicating the
brand
64
Maintaining the
brand
1 What is a brand? 2 Deconstructing brands 3 The changing brand
audience
Brand structures
Some brands now invest in making the Brands are often added to and dumped
‘parent’ brand visible to the consumer, from portfolios to extend a product range or
where previously the corporate brand was make it more targeted. However, acquiring
only relevant to the investor community and brands can potentially backfire when a
employees. Drinks brand owner, Diageo, for large multinational corporation purchases a
example, has become a well-known brand, smaller, niche brand. If it is going to work,
even though its product brands are more the audience must view the association as
relevant to the consumer. credible, or the niche brand must be allowed
to retain its identity.
The parent brand can carry distinct
associations and attributes – such as L’Oréal acquired The Body Shop in
promoting a key message or identity. In 2006, when its brand reputation as an
Diageo’s case, the brand has been used environmentally conscious, pro fair trade
to carry a message to consumers of company (set up and formerly owned by
‘responsible drinking’. This message the entrepreneur and social activist Dame
has also been carried throughout the Anita Roddick) was firmly established.
sub-brands. The parent brand may also However, there was concern amongst
be identified with an overall ‘promise’ and some customers that its strong ethical
values to customers, to provide a consistent stance against animal testing, its vocal
experience and performance that runs promotion of human rights and support for
through the brands. This forms the basis of local communities would not continue to
a trusted relationship with the stakeholders. be adopted by L’Oréal, the world's largest
cosmetics brand. Years later, it is clear
Types of portfolios that The Body Shop has stayed true to
its heritage, remaining the original ethical
Brand structures differ a lot among the beauty brand.
global brands. Older, larger brands such as
the consumer goods companies, Unilever Pret A Manger – a UK sandwich chain –
and P&G, have a complex relationship was partly (and temporarily) acquired by
among the brands within the company. This McDonald's in 2001. This led to some
may present a confused picture to their negative associations with the Pret brand,
audiences but generally people will buy into even though there was no tangible evidence
a particular product. of McDonald's presence within the shops.
Decisions will be made among the portfolio In reality, many corporations acquire
as to whether to ‘sell off’ excess or non- smaller, niche brands to both invest in them
aligned brands, integrate them, rebrand and expand their presence, but no longer
them or keep them as they are. In some dabble with the core values and brand
cases, brands may be bought to boost an ingredients of the smaller brand. This way,
overall portfolio – such as adding an ‘ethical’ they can retain an existing, core audience
brand to a mainstream portfolio. In this case, and also bring in new customers by injecting
the acquired brand may have an incredibly some energy into the brand and making it
strong identity in its own right and its core more visible.
brand values and attributes left untouched.
The client/agency Brand structures Brand families 44–45
relationship
Community Trade,
the unique fair trade
programme established by
The Body Shop in 1987, has
continued to grow under
L’Oréal and today
benefits over 25,000
people worldwide.
1 What is a brand? 2 Deconstructing brands 3 The changing brand
audience
Brand families
Individual brand
Here the brand may sit within the family with
no obvious link to any of its siblings. For
example, Ariel laundry products are owned
by P&G but they have a strong, clearly
identifiable, standalone presence within the
brand family.
Brand structures Brand families The brand development 46–47
methodology
Ways to extend
the brand
Brands are becoming
more innovative in the way
that they extend products
and services to enter new
markets and attract new
audiences. ension
Brand ext s
ili ti e
This diagram offers a basic possib
idea of the way that a brand
may traditionally move
beyond its core presence
into new areas. New forms of
media, emerging consumer
tastes and diverse kinds of
partnerships also open up through
further possibilities for brand Extension on such
ti
extensions. ng
Use existi nter a collabora ding or
n
ension brand to t or
e as co-bra e.g.
Brand ext the e ip
partnersh uzuki
to to prote fromc t new mark tomer S
Extension ss of d deliv e r c u s Rizla and
la
existing c . a new core bran n e.g. . Tesco’s clothing
.g p e ti ti o needs e.g rvices
product e bar co m
brand financia l s e
o c o la te premium n phones
c h
added to a and mobile
brand,
economy airline
u c h a s a n
s
economy
premium
serv ic e
Brands do not come out of nowhere. The brand framework and strategy
They are meticulously researched,
planned, strategised and marketed. Brand The brand strategy outlines a framework
development should include business and and direction for the brand. It is key in the
product management as well as creative brand development process and feeds into
and marketing people. every part of the brand – into the creative
process as well as into product and service
The first step is to create a brand strategy. development. Developing a brand strategy is
This should be detailed for any type of brand usually supported by research. The strategy
creation, whether refreshing an existing will detail the goals and rationale for the
brand or extending the brand. It offers a brand, providing both information about the
central document to get people (including market and its place in the market, including
employees) to understand and buy into competitor insights. It will also cover
the direction of the brand, its values and audience insights and brand values and,
purpose. from here, key messages about the brand
can be developed. A strategy will identify
where a brand will differentiate and feed into
the creative development process.
Brand positioning
Adrian Burton
Creative director / Lambie-Nairn
The brand development Brand positioning Brand values 50–51
methodology
Brand values
Case study
Pret A Manger
The creative teams are generally under the The creative brief
direction of the creative director or creative
head. They will also work with a project Any creative work should start with a good
director or account manager whose role it brief that details the objective of the work
is to ensure that the project is delivered on and the desired output. A brief aims to give
time and to budget. Within a creative team, the creative team direction, but not be so
designers and copywriters are responsible detailed as to constrain creativity. It will
for working together to develop creative include information on the project such as
concepts. Any strategy work and research the client’s objective, what the campaign or
that has been carried out should also be fed brand development needs to achieve, and
into the creative process and form part of the current perceptions and performance of
the brief to the creative team. the brand. It should also detail the brand’s
audience, channels of delivery and timings.
A strong creative interpretation can sell a
brand, giving it an identity that becomes The brief should provide enough detail to
inherent to the brand experience. Some create some initial design concepts – this
brands prefer to have a consistent, creative is usually pre-empted by a brainstorm with
experience across the different mediums relevant members of the team, including
– although it is always more exciting designers and writers. It is also helpful to
when brands allow for more creative develop a narrative that can be a framework
experimentation, particularly in areas such for a creative concept. At this stage,
as online design. some agencies like to develop three initial
conceptual routes to present to the client.
One or two may then be later selected to
take forward to full design.
Brand values Developing the Communicating the 56–57
‘creative’ brand
The strongest brand concepts always The creative team will need to consider
develop visuals and words simultaneously, the channels for communicating the brand.
with designers, writers and other team Each channel has its own constraints – for
members working together. Some branding example, colours that work in print do not
agencies have a tendency to focus more on necessarily translate onto the web.
the visual design and brand ‘look and feel’ – Also, the style of language needs to be
with words inserted into allocated spaces. adapted for different mediums – people
This is not ideal and is now an outdated way read in a different way online from how
of working. they do in print. Each channel offers
opportunities to use different styles of
The best way to approach concept creation communication and messaging.
is to keep things flexible, allowing anyone
to contribute to the creative process and For print executions, the creative team has
so to come up with a great idea. In doing to consider the context for the brand’s
so, it is worth considering how people will use to understand how it needs to be
be interacting with and experiencing the reproduced at different sizes and colours.
brand – this is the ‘human factors’ or 'human For video or online, screen resolutions,
behaviours’ approach which is often used animation and audio components need
in web and product design. You can also to be factored in. Each medium also
test this out on an audience. Ideas may requires different skills from the creative
then be translated into a mix of words and team – stretching from technical abilities
images, storyboards or scenarios – the to specialist writing (such as scriptwriting)
form it takes is flexible. A ‘tone of voice’ and and design. These skills may be provided by
‘look and feel’ will underpin the visual and freelancers.
verbal interpretation of the brand and are
fundamental to the overall brand experience.
The tone of voice will set the degree of
sophistication and accessibility, as well as
the tonal flavour of the brand (for example,
whether it is light-hearted or serious). It is
also used as a guideline for writing copy for
ongoing brand executions. The ‘look and
feel’ will include colours, imagery and the
visual expression of the brand, such as font,
layout and textures. Both the tone of voice
and look and feel are likely to be updated if
the brand changes (for example, if the brand
undergoes a revamp or ‘refresh’). It is also
documented in brand guidelines to ensure
some degree of consistency (discussed
at the end of this chapter in ‘Maintaining
the brand’). Any creative development
should always be checked against the
creative brief.
1 What is a brand? 2 Deconstructing brands 3 The changing brand
audience
Communicating ‘across’
Various tactics can be used to engage
employees in new brand-related work.
People need to feel involved and so
communications must be two-way and
not just from ‘above’, where bosses tell
employees what is happening. There
is scope for using various forms of
communication, including poster campaigns,
co-created campaigns, intranets, online
radio and podcasts. Internal brand
communications is a huge area of growth
as companies realise the importance of
employees to the brand.
miCoach is a console in
adidas stores that invites
customers to test their
core athletic skills through
interactive touch-screen
kiosk systems. Its aim is to
help customers understand
sport and improve personal
fitness levels.
3
68–69
70
Understanding the
brand audience
74
Audience attitudes and
social shifts
78
Developing brands for
audience ‘types’
82
Brands, ethics and
responsibility
86
The digital audience
92
Employee audiences
2 Deconstructing brands 3 The changing brand 4 Branding techniques
audience
Some decades later, the world has moved The challenges lie in trying to understand
on. Audiences have changed, diversified and how audiences now interact with
segmented, just as the means and mediums brands in rapidly evolving environments.
to reach them have broadened. People are Customisation through technology is
no longer necessarily loyal to one brand helping brands to target communications
– they may be willing to try many – but at an individual level. The style of brand
they will buy into those brands that they communication is also changing as brands
identify with and associate as matching their shift from a one-sided ‘us-to-them’ delivery,
own values. New channels and methods to a two-way conversation with their
of communication mean that people now audiences. This is sometimes taken further
engage with brands in a different way – with with companies asking for active input and
less time, higher expectations and more participation from customers, particularly
knowledge. These shifts have blurred the in the online space. This can range from
boundaries of audience behaviour, making it encouraging feedback on services to co-
simpler to define a brand’s audience by their creating products.
attitudes, values and needs rather than their
age or social class.
Brands as a barometer of
personal beliefs
Case study
Monocle
The buying power of individuals has Emergent markets and the creation of
increased as parts of society have new audiences
become more affluent. Couple this with an
increasingly fragmented media, spanning New lucrative, segmented markets include
endless TV channels, magazines, online the ‘mass exclusive’ audience, which
media and forms of advertising, and it is has been created to offer services for an
easy to see how brand audiences have increasingly affluent group of people. The
become much more segmented, forming boutique hotel, private members’ clubs and
their own individual communities premium economy on airlines all cater for
and associations. this market. Another example is the ‘Mums’
market – particularly featuring older and
Dividing audiences into segments can more affluent mums – that in recent years
help identify a larger group of people with has driven up the sales of organic food
similar tastes. It has spawned a range of for children.
distinct audience ‘types’. A brand may offer
a key service or product for that audience ‘Tween’ brands are another growth segment,
and then extend the range. This audience targeting young girls aged 8–12 years old,
segmentation may lead brands to adopt a who do not consider themselves children
variety of means to catch the customer’s anymore and who may share similar
attention – from mainstream advertising interests in celebrities, fashion and make-up.
to forms of digital advertising and ambient It was popularised by the success of the
media. Olsen twins and the younger Britney Spears
in the late 1990s. In the US, it is estimated
that ‘tweens’ spend over US $10 billion
every year on themselves, with their parents
spending over US $175 billion. The market
is estimated to grow at 15 per cent each
year (according to figures supplied by the
Kellogg School of Management).
Targeting segmented audiences may sound
simpler than trying to be a large brand
serving different markets. This segmentation
can bring a deeper brand experience to a
given particular audience by serving only
that audience – and so people are prepared
to experiment with that brand if it introduces
other products and services.
Audience attitudes and Developing brands for Brands, ethics and 78–79
social shifts audience ‘types’ responsibility
Case study
Stardoll
Case study
Gaydar
American Apparel is a
growing casual brand with
an ethical bent, that has
moved into the mainstream,
expanding its shops outside
of the US (far right and
below).
Technology has changed the ways in which Digital immigrants and digital natives
we live and has changed the way that
brands now develop and communicate. There is no doubt that recent shifts in
Greater use of home broadbrand and mobile technology and communications are
access has opened up huge potential for changing the way that brands interact
brands and businesses in both developed with audiences. The accessibility of
and developing countries, including areas broadband in the home, more sophisticated
such as online shopping and services such technology integration into products such
as banking via the mobile phone. as high-quality video on mobiles, and faster
communications have pushed technology
As technologies continue to become more this century. The digital audience is critical
sophisticated and audiences expect to be for brands, but many brands still struggle to
able to interact with brands through any provide a ‘seamless’ experience between
medium, brand managers need to ensure the online and offline worlds.
that the brand now does more online than
simply offering a website. For many brands, Yet, technology can also divide audiences.
the digital format is fast becoming its core Technology marketers refer to ‘digital
means of communication. natives’ as those born after 1980 for whom
technology is an integral part of everyday
life, compared to those born before 1980
– the ‘digital immigrants’. There is also the
‘digital divide’ between affluent countries
– where technology is ubiquitous – and
people in developing countries who may
have no computer or Internet access. This
divide is also evident within societies.
Brands, ethics and The digital audience Employee audiences 86–87
responsibility
One of the largest societal shifts for brands Whether actively participating or not, the
has been the evolution of global technology digital space can be hugely advantageous
communities or ‘social media’, such as to brands. It offers a means of discovering
Facebook, YouTube, MySpace and Twitter. what people say and want from the brand
Blogs, chatrooms and ‘wiki’ technology, and can be used for product and service
where users participate in the creation development – some brands, such as
process of products or information, have Peugeot cars, have created new products or
also changed the way we communicate. services online with users. The digital space
may also be used to effect by activist groups
Social media and digital developments and NGOs.
pose both challenges and opportunities
for brands. Brand managers – who are Brands need to be in tune with the online
more than likely to be digital immigrants – world – to both listen and be prepared
may be reluctant to fully engage with new to respond. A ‘groundswell’ online can
technologies such as social networks, partly potentially damage a company’s reputation if
because it may feel like a loss of control for ignored. But those that have good relations
the brand – even though many politicians with their audiences, and are transparent in
have a presence on Facebook or YouTube to their responses, should be able to mitigate
engage the mainstream, young voters. any long-term reputation damage. Any
active online engagement from a brand must
In reality, tactics such as blogging or being remain authentic – so if a company chooses
on Twitter offers another way in which to enter an online debate, they should be
brands can engage audiences (particularly clearly visible, rather than disguised as a
younger audiences); but they need to be contributor.
used appropriately – a good company
blog will often depend on the personality
of the company leader who is speaking or
the brand in question. However, it can also
provide a useful B2B (business-to-business)
tool to share knowledge, keep people
informed, or build a product or
service profile.
2 Deconstructing brands 3 The changing brand 4 Branding techniques
audience
Case study
Peugeot
Case study
Avaaz
Case study
Wikipedia
Employee audiences
Case study
TNT
Branding techniques
4
94–95
96
Techniques to diversify
the brand
100
Forms of collaboration
106
Affinity marketing
110
Charity-based
partnerships
114
The future of
partnerships
3 The changing brand 4 Branding techniques 5 Assessing the brand
audience impact
Techniques to diversify
the brand
Cigarette rolling-paper
brand, Rizla, teams up with
car manufacturer, Suzuki,
for the MotoGP (above).
The partnership adds a new
dimension to both brands,
through joint credibility and
by offering new products and
services to the public, such
as a range of biker clothing.
Employee audiences Techniques to diversify Forms of collaboration 96–97
the brand
Case study
Apple and Nike iPod
In 2006, Apple and Nike teamed up This could potentially have had a negative
to produce the Nike + iPod Sport Kit. impact on Apple’s brand, which represents
The partnership has been clever from creative expression.
a marketing collaboration stance: the
companies took two technologies with a The partnership succeeded where others
common audience – that of runners – and have failed (for example, Nike’s former
used their skills to combine shoe design collaboration with Philips Electronics was
with a mobile music experience. The Nike not generally considered a success). It
+ iPod is a sensor that is promoted as a also emphasises each individual brand
personal trainer, tracking statistics such as proposition – of ease of use as well as
distance, pace and calories from a Nike+ of technical and design leadership. And
running shoe and onto an iPod nano screen sales have been high: within months, Nike
via wireless technology and through the had reported an increase in its profits due
iPod’s computational abilities. to sales of the joint product as well as
converting runners from other shoe brands.
The product is a simple but brilliant idea The product can easily be replicated across
for runners and gym-goers who were other areas of sport – a fairly easy step for
already using the two products – and for both companies.
others who may be encouraged to buy the
product for its technological capabilities.
For Apple, it shows that the iPod is more
than a music machine; for Nike, it enhances
the running experience and therefore their
brand. One of the strengths of the product
has been the NikePlus social networking
community which connects Nike + iPod
runners. The aim is to better the individual’s
performance by setting goals and creating
an international network of runners who
challenge and compete with each other. For
Nike, the product can also be developed
based on their own customer input.
The partnership represents a mutual
endorsement of each other’s brands; the
premier brand position of each partner
ensured instant profile and credibility for
the product. However, from a reputational
standpoint, Nike seems to have had a
head start. Some of Apple’s loyal fanbase
questioned the partnership in terms of the
values that each company is commonly
associated with. While both are innovative
leading brands, Nike’s image is still
tarnished by its child labour scandals in the
mid-1990s (although the company now
leads its sector in supply chain standards).
Employee audiences Techniques to diversify Forms of collaboration 98–99
the brand
Forms of collaboration
Ingredient brands
Alliances
Another form of collaboration is alliances,
where companies connect under a new
brand to provide incentives to customers
through joint offers or by acquiring reward
points. This is very typical of loyalty schemes
and became popular when airlines joined in
various networks to encourage customers GORE-TEX® fabric is a
to align themselves with their brands. These technical product that
provides dryness and
alliances then branched out to include other warmth in outdoor wear (top
associations within the travel sector, such and left). It was first created
in 1978 and has since been
as tying in with car hire brands and hotels. extended for outdoor leisure
The important thing to note here is that use, as well as workwear for
emergency services through
the group of companies under the alliance to military use.
brand will associate itself with like-minded
The fabric is used by many
brands. So, for instance, an airline network brands, such as those which
may also choose to offer services from produce skiwear clothing,
as an ‘ingredient’ with any
a five-star range of hotels to effectively purchase accompanied by
promote a five-star experience. the promise: ‘Guaranteed
to Keep You Dry® – if it
doesn’t, GORE-TEX® fabric
will remedy the problem’.
3 The changing brand 4 Branding techniques 5 Assessing the brand
audience impact
Affinity marketing
Affinity benefits
Behind the scenes, an affinity partnership
can also mean that resources are shared,
so that operational costs (for example, of
marketing) are lowered. The brands also
benefit from joint marketing muscle – from
their own brand, from the partner brands
and through the affinity brand. Consumer
benefits can include loyalty points that may
open up other purchasing opportunities and
discounts, or link to the personal values of
the consumer.
Forms of collaboration Affinity marketing Charity-based partnerships 106–107
The affinity brand’s marketing as a group Affinity groups can be defined by objectives
should reflect the consumer behaviour that and their motivation is to increase brand
the group requires. This could be: strength. They can be structured in different
ways – for example, Saga is relevant to a
Self-interest particular demographic, by offering good
rates for products such as insurance for
The desire for personal benefit, such as the over-50s. Financial services are another
serendipitous upgrades for travel or hotels, common area for affinity partnership,
discounts on services, or added-value particularly around payment cards. VISA,
services. MasterCard and American Express all
operate around affinity networks.
Relational
On the other hand, airline affinity networks
A sense of belonging, where the consumer such as Star, Skyteam and OneWorld
demonstrates an affiliation with the group, bring together groups of airlines into
such as a specific hobby or breed of pet. collaborative marketing and code-sharing
agreements, that also offer customer
Aspirational benefits through reward points (for free
Links to desire to be part of a group flights and other travel benefits, such as
because of its social implications. For car hire). For charities, affinity marketing
example, many of the members of the Ferrari can offer a revenue stream. Charities tend
Club of Great Britain don’t own a Ferrari but to apply strict criteria to partnerships and
have a love for the brand and aspire to be a associations with corporations, taking their
part of it. membership base into account as well as
their charitable status.
Cause-related
Affinity as loyalty schemes
A link to the consumer’s personal values or
empathy with a deserving cause or mission, Loyalty networks use affinity marketing to
such as Product (RED) and its goal to help build broad and interchangeable benefits.
women and children with HIV in Africa. The idea is that the link to an affinity
programme will influence buyer behaviour
when choosing a product or service. But
these kinds of schemes have become less
attractive among consumers where rewards
may be difficult to redeem or require a
volume of purchases before any benefit
is felt. It is also debatable as to whether
consumers will pay more for a brand to gain
loyalty points or whether points are simply
accumulated when the opportunity arises.
3 The changing brand 4 Branding techniques 5 Assessing the brand
audience impact
Case study
PRODUCT (RED)
Case study
Everyclick
Everyclick offers a
technology platform where
charities can ‘wrap’ their
brand around a search
engine or donation page
to raise money (above).
Charity-based partnerships
Case study
BA/UNICEF
Multi-stakeholder partnerships
Opportunities to innovate
Most importantly, partnerships can
encourage learning and experimentation
among companies, governments and
NGOs where each brings their own core
competency to the relationship. This can
lead to new, exciting forms of innovation or
simply provide more effective solutions in
areas such as societal needs.
For example, companies and government
or local bodies can unite to come up with
solutions around issues such as water
scarcity or education. Some companies
refer to these kinds of social partnerships as
‘tribal collaboration’; and if governments are
involved, progress can be made in line with
social policy.
Online media also offers a platform to bring
parties together where they may not connect
in traditional environments, by linking talent
between companies and individuals.
Charity-based partnerships The future of partnerships Why measure the brand? 114–115
To do Partnership innovation
Partnerships can be used as a source of
innovation for brands. But it can be difficult
to achieve the right ingredients for a
successful partnership.
Think about which brand collaborations you
like. These may be co-branding ventures,
alliances or affinity marketing partnerships.
Then consider the following to determine
successful criteria for a partnership:
´ What do you like about the partnership?
´ How does it make things better for the
consumer or other target audiences?
For example, does it offer a new
product or service? Does it improve the
performance of an existing product or
service?
´ How does it enhance the brands of
the individual partners? Is one brand
benefiting more than the other? If
so, what is the motivation of the
partnership?
´ What criteria make a good partnership?
´ Can you suggest a new product
or service based on an innovative
partnership?
4 Branding techniques 5 Assessing the brand 6 Brand futures
impact
5
116–117
118
Why measure the
brand?
122
Brand equity
128
How to measure the
brand impact
132
Brand measurement
models
136
Measurement in the
business and marketing
process
4 Branding techniques 5 Assessing the brand 6 Brand futures
impact
Brand equity
BP is a well-known global
brand, although it is still
sometimes referred to
as Amoco in the US. It
continues to promote an
environmental image and
is also a key partner of the
London 2012 Olympic and
Paralympic Games.
A brand may seem to be a nebulous thing Determining the value of a brand is also
compared to the physical business assets, important in business deals where the brand
such as cash, products or property, that the is licensed. What is a brand worth when one
business may own. However, less tangible company may licence the brand of another,
attributes such as intellectual property, particularly if the ‘host’ company is providing
talent (that is, the people a company other benefits rather than the brand itself?
employs), and the company brand have now Fashion and interior designers have long
been recognised as both important and played on the equity of their own brands.
real assets to a business. What is more, a It is a common tactic for top designers to
brand is as important for consumer-facing lend their name, and specific designs, to
companies as for service brands, such as department stores or retail brands. When
law firms or management consultancies, international supermodel, Kate Moss,
as it is often the brand that will differentiate teamed up with the iconic fashion retail
the leaders. shop, Topshop, she effectively licensed her
image, as her audience buys into her ‘look’
From a consumer standpoint, some people – her design skills are less important than
will be prepared to pay more for a ‘branded’ her image. Moss signed a £3 million deal
product over another that may have exactly to design her own collection and, since its
the same functionality or may even be an launch, her ranges have immediately sold
identical product beneath the brand; this out. Designer, or supermodel, collaborations
has been proven to apply to products from may be expensive but can greatly boost the
cars to face creams. A popular brand can image of the host brand.
therefore carry a premium price tag and so
substantially increase the overall valuation The Virgin Group forms many of its
of its company. businesses through joint ventures and
brand licensing arrangements; where other
companies may provide the technological
set-up and capabilities and Virgin ‘lends’
its brand to be licensed. Virgin itself carries
the weight of a great name and message
that people recognise; therefore, another
company may gain significant market and
audience access by working under the
brand. Virgin Media formed in 2006 to offer
Internet, landline, mobile and TV services
as one package to the UK consumer; the
result of a venture formed with ntl:Telewest,
with Virgin licensing its brand to the existing
TV service. At the same time, Virgin Media
has opened up a new market for the Virgin
Group. Virgin Mobile, a pay-as-you-go
service in the US, is a joint venture with US
telecoms company, Sprint, which operates
under the Virgin Mobile brand.
Why measure the brand? Brand equity How to measure the 124–125
brand impact
Brand as monetary
value
The monetary value of a
brand – or its equity – is a total
measure of the brand’s impact
on both the company and its
market. This measurement is
represented by its constituent
elements in the diagram
(right).
Propriety
brand
assets
Brand lue
ns Market Va
associatio
uity
Brand eq
Quality usiness
ns Value to b
perceptio
ous
Spontane
a w a reness
brand
Loyalty
Why measure the brand? Brand equity How to measure the 126–127
brand impact
There are many ways in which brand equity A brand can also be held up as a ‘poster
can gain or lose value, often (but not always) child’ if there is particular sensitivity around
impacting upon the company’s share price. an issue – such as child labour. In 2008, the
Negative impacts are usually associated BBC’s Panorama programme ran a story
with a loss of trust in the brand. This may be on low-end retailer, Primark, using child
due to negative press, a high-profile court labour in its supply chain within the UK. This
case (for example, if related to human rights coverage led to further negative press, yet
abuses) or the loss of a key figurehead Primark continued to post record profits Financial firm, UBS (above),
suffered both reputational
within the business, like the announcement after the incident. A reason for the limited damage in its home country
in early 2009 that Steve Jobs would be damage is that companies are now swift of Switzerland as well as
financial damage during
taking a break from Apple’s leadership. A to act to address any negative press. Also, the ‘credit crunch’ crisis of
drop in share price can also relate to unmet Primark is a low-end retailer and many of its 2008. UBS is the world’s
biggest money manager and
expectations – for example, if people were customers prioritise price over issues about reported heavy losses and
expecting a new product announcement the origins of the clothes. ‘write-downs’.
from the company that never appears or
is delayed. Alternatively, the public may have awareness
that many mid- to high-end retailers similarly
Of course, some brands are routinely employ child labour to produce their clothing
targeted by NGOs, website or guerrilla and thus feel that their options to find and
online campaigns for their unethical buy ethically manufactured clothes are
business practices or unsavoury limited: Gap, for instance, admitted to child
associations. However, the degree of this labour violations in thousands of outsource
impact on the overall brand status can vary. factories around the world in 2004; a story
A strong brand can often withstand negative which resurfaced in 2007 with further
incidents or even turn them to its advantage. reports of child labour in its production
For example, the doyenne of US home living, processes in India despite its rigorous social
Martha Stewart, encouraged her supporters auditing systems launched after the first
to keep on buying from her stores while she exposé.
was serving a prison term for insider trading.
Her share price actually increased while she However, it can still take years to rebuild
was in prison. trust in a brand where poor business
practice has been exposed, as many banks
have discovered in the wake of the financial
crisis. Banks such as Swiss-owned bank
UBS seemed to suffer more anecdotal
reputational damage in its parent country
because of its associations with Swiss
national pride, than in the UK, where it had a
strong financial presence.
4 Branding techniques 5 Assessing the brand 6 Brand futures
impact
Differentiation Online
Can people recall the brand over competitors? How Does the brand have a strong online presence? Does
do people view the brand compared to its direct it have any online communities that may support it? Are
competitors? Does it stand out? Do people confuse there any negative online campaigns?
the brand with the competition?
Online tools
can gauge a company’s reputation or track online
banter and so gain an understanding of people’s
perceptions of the brand; e.g. Technorati, Talkdigger,
Google blog search or Yahoo Pipes. Some manual
searching can determine whether the brand has
a strong online presence, the support of online
communities or any negative online campaigns.
A feedback facility
particularly on the company website is a useful tool to
gather feedback and monitor factors such as service
levels. People tend to use these kinds of facilities (that
email directly to the company) for complaints rather
than positive input. However, by doing so, any negative
feedback is channelled down one route and can be
acted upon.
Brand equity How to measure the Brand measurement 130–131
brand impact models
Brand measurement
models
There are a number of different models for Quantifying the value of a brand:
measuring brand value, from the esoteric Interbrand
to the analytical to the simplistic. Online
measurement tools are also now popular Interbrand has a well-recognised brand
as a way to gauge what people are saying valuation approach that has been
about your brand by tracking the websites. established for a number of years. It
This section highlights two of the key brand attempts to apply quantitative and objective
measurement methodologies – one from the measures to rank the world’s top brands.
global branding agency, Interbrand, which However, certain criteria must be met for the
publishes an annual brand ranking survey brand to be included: its internationality and
with BusinessWeek, called ‘Best Global turnover (Interbrand only considers large
Brands’; the other is a methodology created global brands), its audience and the data
by advertising agency, Young & Rubicam. available – and so some well-known global
brands (such as the BBC) will therefore
inevitably be left out.
Interbrand looks at three key areas in their
brand analysis:
Financial forecasting
The revenue that is generated from products
and services. Interbrand analyses both
the tangible and intangible assets of the
business to determine their Economic Value
Added (EVA). In Interbrand’s ‘Best Global
Brands’ report of 2008, EVA is described
as a ‘value-based management concept’.
It determines the ability of the (branded)
business to generate returns above what
is invested into the business. To calculate
this, Interbrand identifies the ‘branded
revenue’ that is generated from products
and services. It then deducts the brand’s
invested capital – such as its operating
cost, employment bill and taxes – to get the
economic value of the branded business.
How to measure the Brand measurement Measurement in the 132–133
brand impact models business and marketing
process
Brand strength
This assesses the risk profile of the current
brand value. A risk profile may look at a
brand’s future vulnerability in its particular
sector (for example, retail banking brands
are particularly vulnerable during the ‘credit
crunch’ period as people have lost trust in
these brands). This risk factor is discounted
from the brand’s current value.
BMW consistently ranks
There are a number of factors that are as one of the world's
accounted for in the measurement process: leading brands – in 2009,
it was ranked as No. 13 in
the brand’s leadership, stability, market Interbrand's ‘Best Global
dynamics, internationality, trends, support Brands’ survey.
and protection. In 2008, Interbrand’s top The car manufacturer is one
five brands were (in descending order) of the few car brands that
appeal to many different
Coca-Cola, IBM, Microsoft, GE and Nokia kinds of drivers – from
respectively. the sports car enthusiast
to being a popular fleet
company car for its reliability.
It is now pushing the
low-emission message
and technology without
compromising the luxury
that is associated with its
range of cars (above).
Brand development
Increasing value in a brand is an evolutionary
process rather than existing in a static Second Stage
relationship to its market. Therefore, brand At the second stage, there should be clear and
strategies should be modified as knowledge measurable market awareness of the brand as it
and experience of the market and of a becomes established. Actions to stimulate brand
brand’s customer base increases. The brand growth will focus on product or service evaluation as
should also adapt to any significant changes well as marketing. At this stage, attention must be
in consumer behaviour and the purchasing paid to customer satisfaction to encourage customer
environment (such as a recession). At each loyalty and repeat purchases. Growth strategies for the
stage, market feedback, proactive research brand will tend to focus on assessing quality, brand
and measurement analysis may lead to a image, customer commitment and trust in the brand.
(healthy) review of brand strategy to ensure Awareness of the brand will also need to
that the brand goes from strength be maintained.
to strength.
Brand futures
6
138–139
140
Understanding brand
trends
146
The evolution of brands
150
Key future trends
156
Industry perspectives:
digital
158
Industry perspectives:
brand strategy
160
Industry perspectives:
innovation
162
Moving the brand
forward
5 Assessing the brand 6 Brand futures Appendix
impact
Trends expertise
The unpredictable
Case study
Philips Design – the future society /
breaking down the trends
Brands in a downturn
Creative evolution
Case study
Unilever
A social conscience
Internationalisation
Industry perspectives:
digital
Industry perspectives:
brand strategy
Industry perspectives:
innovation
Appendix
+
164–165
166
Conclusion
168
Student resources
169
Bibliography
170
Glossary
173
Acknowledgements
174
Credits
177
Working with ethics
6 Brand futures Appendix
Conclusion
This book has examined the key principles about following a trend or particular way of A leap into the future with
the brand, Howies (right) –
that make up the fundamentals of branding. speaking. It is about innovation, translating a clothing brand now owned
By exploring marketing concepts and ideas, understanding your audience, and by Timberland. It carries the
ethics and image of freedom,
trends, it aims to equip the reader with communicating in the most effective nature and sustainability.
an understanding of how to apply these way possible.
principles to the ongoing management of
a brand. Take the time to build up your knowledge
and experience of brands, no matter which
The process of creating and developing area you choose to specialise in. Stay on
brands is not necessarily a linear one. top of the trends by staying informed of
It requires good teamwork and an social and cultural influences, and of trends
understanding of the many skills and among the brands you see. Don’t limit
disciplines that play a part in creating and yourself to working with one client or one
maintaining a brand. For example, the company – the best experience is gained by
designer needs to understand the writing working across different brands and across
and narrative process; the strategist must different sectors. And seek inspiration for
understand how the creative teams work; ideas from unusual places.
the creative team needs to understand
the business vision and reasoning. Brand Branding is an exciting area to work in.
projects work well when each skill is Enjoy it.
translated to the other and there is a sharing
of ideas and cross-working. Good teamwork
also makes the process fun.
Essentially, however, branding is about
communicating on many different levels. The
brand must communicate to the audience in
a relevant and effective way. There must also
be clear communication from those who
manage the brand, to its stakeholders. There
must be good communication between
the client and agency. And there must be
effective communication within the brand
creation team. A strong brand will also
encourage its audience to communicate
positively about it.
Any sustainable organisation needs
ongoing brand management as part of its
business. Branding is not a short-term,
quick-hit process – a brand must be
managed from its inception and throughout
its lifetime. The launch is only the start. It
is an area that is still evolving within many
organisations, but is increasingly being
understood as a fundamental part of any
organisation. However, branding is not
Moving the brand Conclusion Student resources 166–167
forward Bibliography
6 Brand futures Appendix
Student resources
www.brandblog.net www.ministryoftype.co.uk
A blog dedicated to branding and marketing. Good commentary on design and branding
from the UK, covering a range of topics and
www.brandchannel.com examples of work.
A weekly branding newsletter produced by
Interbrand. www.palgrave-journals.com/bm
The Journal of Brand Management,
www.brandrepublic.com Palgrave Macmillan, leading academic
News and features on everything brand and journal on brand management with articles
marketing. contributed by industry practitioners.
www.cidoc.net www.pgconnectdevelop.com
A site about corporate identity. A website designed to invite consumers
to submit ideas or components for new
www.collings.co.za products or services.
The ‘brand architect’ blog written by brand
strategist and journalist, Patrick Collings. www.saatchikevin.com
The ‘inside’ from Saatchi & Saatchi and
www.coolhunting.com a link to the blog from the author of
For the insight into things that the ‘Lovemarks’.
‘coolhunters’ like, crossing products, art,
culture, technology and design. The site www.superbrands.com
covers a range of categories including luxury Creator of the annual ‘Superbrands’ and
brands, hotels, clothing, fashion and the ‘CoolBrands’ lists.
handmade.
www.trendwatching.com
www.identityworks.com A monthly trends briefing on consumer
Provides comments, reviews and insight on trends produced in Amsterdam.
corporate identities.
www.wgsn.com
www.ilovetypography.com An industry trends resource for the fashion
For those interested in design and and style sectors.
typography.
www.innocentive.com
Example of an open innovation website.
Conclusion Student resources Glossary 168–169
Bibliography
Bibliography
Robert Jones
The Big Idea
2000, HarperCollins Business
6 Brand futures Appendix
Glossary
Co-branding Equity
When two or more brands appear together The value of a brand and its worth.
in marketing communications. Brand equity is based on the sum of all
distinguishing qualities of a brand. It forms
Communications part of the company’s balance sheet.
In the context of branding, the
communications is the work which supports Freelance
the brand campaign to inform people of A person who works as a contractor, either
developments to the brand, its values directly for a brand or for an agency.
and messages.
Guardianship
Consumer The agency role of looking after the creative
A buyer of the brand product or service. implementation of the brand.
Pitch Strategy
A presentation by an agency to a potential The direction for the brand, which aligns
client to win a new account. This usually with the goals of the business.
involves competing against other agencies
and is, generally, a team effort. Sub-brand
A brand within a brand, for example, the
Portfolio iPod is a sub-brand of Apple.
The mix of brands within a company’s brand
architecture. Tone of voice
The ‘vocabulary’ and style for a brand, which
Positioning also plays into the brand’s style.
Where a brand sits in relation to its
competitors. Touch-points
The points and interfaces where people
Product come into contact with the brand.
A tangible, marketable item that is often the
basis for the brand. Twitter
A social media network where people send
Proposition online updates up to 140 characters long.
The way a brand projects itself or what it
says about itself. Visual identity
What a brand looks like including, among
other things, its logo, typography and
packaging.
Glossary Acknowledgements Credits 172–173
Acknowledgements
Credits
The subject of ethics is not new, yet its Ethics is a complex subject that interlaces
consideration within the applied visual the idea of responsibilities to society
arts is perhaps not as prevalent as it with a wide range of considerations
might be. Our aim here is to help a new relevant to the character and happiness
generation of students, educators and of the individual. It concerns virtues of
practitioners find a methodology for compassion, loyalty and strength, but
structuring their thoughts and reflections also of confidence, imagination, humour
in this vital area. and optimism. As introduced in ancient
Greek philosophy, the fundamental ethical
AVA Publishing hopes that these question is what should I do? How we might
Working with ethics pages provide pursue a ‘good’ life not only raises moral
a platform for consideration and a flexible concerns about the effects of our actions
method for incorporating ethical concerns on others, but also personal concerns
in the work of educators, students and about our own integrity.
professionals. Our approach consists
of four parts: In modern times the most important
and controversial questions in ethics
The introduction is intended to be have been the moral ones. With growing
an accessible snapshot of the ethical populations and improvements in mobility
landscape, both in terms of historical and communications, it is not surprising
development and current dominant that considerations about how to structure
themes. our lives together on the planet should
The framework positions ethical come to the forefront. For visual artists and
consideration into four areas and poses communicators it should be no surprise
questions about the practical implications that these considerations will enter into
that might occur. Marking your response the creative process.
to each of these questions on the scale
shown will allow your reactions to be
further explored by comparison.
The case study sets out a real project
and then poses some ethical questions for
further consideration. This is a focus point
for a debate rather than a critical analysis
so there are no predetermined right or
wrong answers.
A selection of further reading for you
to consider areas of particular interest in
more detail.
178–179
Some ethical considerations are already As we enter into ethical debate and engage
enshrined in government laws and with these dilemmas on a personal and
regulations or in professional codes professional level, we may change our views
of conduct. For example, plagiarism or change our view of others. The real test
and breaches of confidentiality can be though is whether, as we reflect on these
punishable offences. Legislation in various matters, we change the way we act as well
nations makes it unlawful to exclude as the way we think. Socrates, the ‘father’
people with disabilities from accessing of philosophy, proposed that people will
information or spaces. The trade of ivory naturally do ‘good’ if they know what is
as a material has been banned in many right. But this point might only lead us to yet
countries. In these cases, a clear line has another question: how do we know what
been drawn under what is unacceptable. is right?
But most ethical matters remain open to
debate, among experts and lay-people alike,
and in the end we have to make our own
choices on the basis of our own guiding
principles or values. Is it more ethical to
work for a charity than for a commercial
company? Is it unethical to create
something that others find ugly
or offensive?
Specific questions such as these may
lead to other questions that are more
abstract. For example, is it only effects on
humans (and what they care about) that are
important, or might effects on the natural
world require attention too? Is promoting
ethical consequences justified even when
it requires ethical sacrifices along the way?
Must there be a single unifying theory of
ethics (such as the Utilitarian thesis that
the right course of action is always the one
that leads to the greatest happiness of the
greatest number), or might there always
be many different ethical values that pull
a person in various directions?
A framework for ethics
01 02 03 04 05 06 07 08 09 10 01 02 03 04 05 06 07 08 09 10
180–181
01 02 03 04 05 06 07 08 09 10 01 02 03 04 05 06 07 08 09 10
Case study General Electric
One aspect of branding that raises an ethical Major corporations expanded dramatically
dilemma is the trustworthiness of the brand at the end of the nineteenth century through
messages. Are they an honest representation mergers, consolidation and other forms
or an attempt to mislead and manipulate? of integration. The sheer size of these
If brand promises are broken or destroyed companies – the numbers of employees, the
through scandal, hypocrisy or wrongdoing, scale of their production, their resources and
trust is lost and a brand reputation can be capacity for political influence – transformed
ruined. Successful brands are built on truths; society. The family, the church and the local
but do they, and should they, reflect the community was suddenly dwarfed by these
whole truth? A way that brands can become new giants, which required them to carve an
more ethical is by trusted brands using their acceptable place in people’s minds.
relationships with consumers as a channel
to raise public awareness. For example, a One such company began in 1892, when
product brand may promote a charitable Thomas Edison, inventor of the electric light
cause with an on-pack promotion. In some bulb, merged various businesses to form the
surveys, people have been found more likely Edison General Electric Company. Charles
to trust brands than governments, so there is Coffin, the first President of the company
potential to use that influence for good. But declared, ‘The new merged company
there is also certain scepticism that brands considers the public it serves first and the
only exploit this route purely for commercial success of the company second’; and the
gain. Is it the responsibility of the branding first advertisement for ‘the company’ (rather
agency to direct a client company toward than for one of its products) in 1916 was
a particular route or should this always be a declaration of its commitment to use
driven by existing company values? electricity to improve people’s lives.
Opening the doors by providing a ‘factory
tour’ was one method that allowed the
company to show itself at its best and could
be used to promote a particular quality,
such as the scientific sophistication of
the production process. In 1919, Charles
M. Ripley, who had previously written
two classic works of welfare capitalism,
travelled widely across America to deliver an
illustrated lecture entitled ‘The Romance of
Power’. The tour, which continued for several
years, invited people to witness the wonder
of production that was the General
Electric plant.
182–183
AIGA
Design business and ethics
2007, AIGA
Eaton, Marcia Muelder
Aesthetics and the good life
1989, Associated University Press
Ellison, David
Ethics and aesthetics in European modernist literature
2001, Cambridge University Press
Fenner, David EW (Ed.)
Ethics and the arts: an anthology
1995, Garland Reference Library of Social Science
Gini, Al (Ed.)
Case studies in business ethics
2005, Prentice Hall
McDonough, William and Braungart, Michael
‘Cradle to Cradle: Remaking the Way We Make Things’
2002
Papanek, Victor
‘Design for the Real World: Making to Measure’
1971
United Nations
Global Compact the Ten Principles www.unglobalcompact.org/
AboutTheGC/TheTenPrinciples/index.html
Acquisition Agencies Audit
Best practice Brand associations
The Fundamentals of Branding
offers an overview for both students and
The book will take you through the branding
process step-by-step and provide you with
Co-branding Communications
as brand structures and brand architecture.
The book also explores the relationship
between branding and other disciplines,
of brands in new and emergent markets.
The book’s friendly, informative style ensures
that it will always be a useful and relevant
Consumer Consumer-facing
and the key client/agency interface.
Branding is a discipline that has emerged
companion for the branding student.