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Compared to other aspects of business, such as esoteric technologies, sophisticated manufacturing practices, and integrated distribution and inventory management systems, branding is a relatively simple subject. On the other hand, it’s incredibly powerful in its ability to build a great franchise, or destroy a franchise if the branding is mismanaged. What people typically mis-manage are the simple principles that drive great branding.
Consider Porsche. During the 1950’s and 1960’s it established itself as “the thoroughbred luxury sports car.” The classic Porsche 911 epitomized that positioning, and the branding was sensational. Porsche promised, and delivered via the 911, the benefits of high-performance, luxury, and significant prestige in the sports car segment of the auto industry. Then, in the 1980’s they committed all kinds of branding sins. They launched a model that was joint with Volkswagen (the 914 model was manufactured by Volkswagen and everyone knew it). Then, they launched the 924 model which was a joint effort with Audi. The question on everyone’s mind was why does the thoroughbred luxury sports car have to associate with any other brand, particularly low/medium tier brands. They then introduced the 928 model powered by a V8 engine, which walked away from the vintage Porsche 6-cyclinder engine and was the engine design used by the most cars from Detroit! By 1992 and 1993 Porsche was selling less than 12,000 cars per year and was on the verge of bankruptcy. They had systematically destroyed “the thoroughbred luxury sports car” image that they had earned via the vintage 911 Porsche. Fortunately, new management was put in place and saved the franchise.
Consider McDonalds. They basically invented fast food and grew tremendously behind the fabulous slogan “you deserve a break today” used in their wholesome, family-oriented advertising campaign, while offering tasty and very inexpensive food. They became an American icon in the 1980’s and 1990’s, clearly becoming a well respected member of America’s busy families. By the year 2002, the brand was floundering. They had changed advertising campaigns multiple times in the prior few years, and people no longer remembered the jingle. Also, while the healthy food trend was emerging, they stuck with the basic Big Mac and french fry offerings. Soon their reputation was clearly tied to obesity and this culminated in the movie called “Super Size Me” which was nominated for an Academy Award in 2004. This movie was all about a person who ate at McDonald’s three meals a day for thirty days, always getting the “Super Size,” and ended up in the hospital while also gaining 25 pounds. Fortunately they finally acknowledged the crisis, once the financial results got bad enough, and completely turned the situation around.
What is a brand? A brand is a relationship. It’s frankly no different than having a friend. You know the characteristics of that person and you generally know their skills and interests. This is not complex stuff. Take BMW. The general perception today worldwide is this is all about superior engineering and performance. It’s a high-priced, high-performing car that keeps its styling fresh and unique. Most people know that BMW is “the ultimate driving machine.” They believe it, and carry around a very specific image of BMW.
Diet Coke has emerged as the number one item for Coca-Cola. It has terrific taste but also a great reputation of being a no-calorie drink that tastes good and is very refreshing. Its image is kept very contemporary with fresh advertising campaigns that are energetic and contemporary.
Great brands have physical properties that are well known to its customers and potential customers as well as emotional properties. We see that with both BMW and Diet Coke.
Defining and Managing a Brand – There are three elements to a brand that should be treated absolutely sacred. Changing any aspects of these three elements should be a major, well thought out decision and changes should be made very seldom.
# 1 - The Benefit Statement – This is one sentence that describes the unique benefit this brand brings to consumers. It is not a paragraph It is not two sentences. It is one sentence. When I was at Procter & Gamble, each of the nationally advertised brands had a benefit statement that was the most treasured element in that brand group. It could only be changed by taking your argument all the way up the organizational ranks to the CEO. For example, the Tide detergent benefit statement was: the superior cleaning detergent. That was it. Quite simple. But the implication is huge. The product development team needed to constantly keep the Tide product superior versus competition, even if the differences were technical in nature and possibly not observable in standard laundry conditions. Every piece of advertising had to convey that unique benefit of superior cleaning versus the competition. In a recent conversation with A.G. Lafley, the CEO of P&G, he indicated that the Tide benefit statement was broadened a bit in the late 1990’s to: the superior cleaning and fabric care detergent.
#2 – The Character Statement – This again is one sentence and it describes the character of the brand. Assume for a moment that your brand is a person. What is that person like? This character statement should describe the character of that person which is your brand. For Tide detergent, the character was: Tide is a hard-working, tough, trusted member of the family. This has big implications for each piece of advertising as well as the Tide package.
#3 – Graphics and Colors – The graphics that you use to portray the brand via a logo, its package and its advertising should be consistent and should be carefully guarded and diligently enforced. Every time the brand name appears, the same graphical treatment and colors should be used. Too often a variety of people are involved with a specific brand and they want to get creative and make subtle twists with respect to these graphics and color decisions.
By the way, for decades Tide (which is called Ariel in Europe and some other parts of the world) has been the global leader in detergents and remains in that position today.
What is Essential in the Ongoing Management of a Brand? While the benefit statement, character statement, and the graphics and colors should rarely be changed, there are two aspects that need constant on-going attention:
Uniqueness and Distinctiveness - Your brand needs to always be unique and always be distinctive while being true to the three elements above. Consider BMW. For decades it has owned the unique positioning of superior engineering and performance and it has protected its uniqueness via constant innovation in engineering and in styling/design. Their launch of the “6 Series” a few years ago, consisting of a superbly performing convertible and coupe, is a perfect example. Rolex watches have maintained a reputation of being of superior quality and highly prestigious, but they are constantly launching new models and associating the brand with up-to-date activities. Their recent launch of the Rolex Yacht-Master II model in white gold, incorporating all the dials and buttons of a Brietling, is a good example.
Contemporariness - While not changing the fundamental benefit, character and graphics/colors, the brand does need to remain contemporary. If you are McDonalds, you will suffer if you miss an important change in the marketplace such has health food trends. If you are Kodak, you will suffer if you don’t quickly notice the move to digital photography in the 1990’s and get way out in front of it and basically redesign the category before someone redesigns it for you (something Kodak has not done). If you are Rolex, and all of a sudden complicated watches with all kinds of dials become popular, you need to quickly move and get out there and participate in that segment of the industry while still retaining your core brand franchise of having the benefit of superior time-pieces with a high prestige image and time-less value.
The Tools for Managing the Brand - Here are the elements that need constant attention when managing a brand:
Advertising - You need a series of campaigns over the years that constantly are true to the benefit and character, which are not changing, while helping the brand remain contemporary.
Media Selection - You need to have your message delivered to your target audience, so you need careful selection of media elements that uniquely reach that target. Also, you need to be sensitive to changes in your customer’s habits regarding media. For example, as television ratings decline and internet advertising becomes popular, you need to ask what that means to your brand’s media plan.
Public Relations - You need to ask the question of where news occurs with respect to your brands and how can you influence that news and become a part of that news flow.
The Customer Experience - The process by which the consumer purchases the brand, and their resulting experience with the use of the brand, needs to match the benefit and character statements of the brand. You need on-going tracking research in these areas.
In summary, brand management is not complex. We are talking about common sense and sticking to basic principles. It requires both discipline and creativity. Discipline with respect to defining the benefit longer term and the character of that brand as well as sticking true to the graphics and colors of that brand. You need creativity in regard to keeping that brand competitive, contemporary and alive in the eyes of the consumer.
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Florentine Design Group