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Brands were originally developed
as labels of ownership: name, term, design, symbol. However, today it is what
they do for people that matters much more, how they reflect and engage them, how
they define their aspiration and enable them to do more. Powerful brands can drive
success in competitive and financial markets, and indeed become the organisation’s
most valuable assets.
great brand is one you want to live your life by, one you trust and hang on to
while everything around you is changing, one that articulates the type of person
you are or want to be, one that enables you to do what you couldn’t otherwise
achieve. Brand type is divided into four categories.
* ‘Being’ brands: emotionally confirms you are somebody
brands: aspirationally defines what you want to be
* ‘Doing’ brands:
functionally enables you to do something
* ‘Belonging’ brands:
connects you with other people like you
along with many modern-language lexemes such as English burn and brandy, German
brennen, and those in many European languages based on the root therm-, are all
ultimately related to the ideas of warmth, heat, burning, etc., and descend from
an Indo-European root that has been reconstructed as /gwher/.
the Old English language, the noun brond is first attested from the epic poem
Beowulf (circa 1000) meaning "destruction by fire."
the ages, brand had been used in figurative and transferred senses to mean "a
person delivered from imminent danger," "the torches of Cupid and the
Furies," and "Jove's or God's or Phoebus' brand."
had also been figuratively applied since the late 16th century to criminalize
people (as in disgrace, a stigma, or mark of infamy) and in the sense of firebrand
since the 17th century.
idea of marking things, people, or animals by burning identifying marks onto them
is clearly an ancient one.
described as a physical impression of ownership on livestock by way of hot-iron
branding since the mid-17th century, modern senses of brand as used in business
began to arise in the early 19th century when the term was figuratively extended
to trademarks and logos. During this time, brands were imprinted on casks of wine,
timber, and other goods except textile fabrics.
the 19th century in primarily the United States, hot irons used for marking livestock
and cauterizing wounds were called brands, and later cattle and other livestock
were also referred to as brands. A brand blotter was a thief who stole, and removed
marks of ownership from, cattle.
the early 17th century in biology, a brand had been called "a species of
blight in plants, causing the leaves and young shoots to look [burnt]." The
word was also used to refer to swords and other blades from the 11th to 19th centuries.
the field of marketing, brands originated in the nineteenth century with the advent
of packaged goods. According to Unilever records, Pears Soap was the world's first
registered commercial brand. Industrialization moved the production of household
items, such as soap, from local communities to centralized factories. When shipping
their items, the factories would brand their logotype insignia on the shipping
barrels. These factories, generating mass-produced goods, needed to sell their
products to a wider range of customers, to a customer base familiar only with
local goods, and it turned out that a generic package of soap had difficulty competing
with familiar, local products.
fortunes of many of that era's brands, such as Uncle Ben's rice and Kellogg's
breakfast cereal, illustrate the problem. The packaged goods manufacturers needed
to convince buyers that they could trust in the non-local, factory product. Campbell
soup, Coca-Cola, Juicy Fruit gum, Aunt Jemima, and Quaker Oats, were the first
American products to be branded to increase the customer's familiarity with the
1900, James Walter Thompson published a house advert explaining trademark advertising,
in an early commercial description of what now is known as 'branding'. Soon, companies
adopted slogans, mascots, and jingles that were heard on radio and seen in early
television. By the 1940s, Mildred Pierce manufacturers recognized how customers
were developing relationships with their brands in the social, psychological,
and anthropological senses. From that, manufacturers quickly learned to associate
other kinds of brand values, such as youthfulness, fun, and luxury, with their
products. Thus began the practice of 'branding', wherein the customer buys the
brand rather than the product. This trend arose in the 1980s 'brand equity mania'.
In 1988, Phillip Morris bought Kraft for six times its paper worth. It is believed
the purchase was made because the Phillip Morris company actually wanted the Kraft
brand rather than the company and its products.
2, 1993, labelled Marlboro Friday, is described by Klein (2000) as the death day
of the brand. On that day, Phillip Morris declared a 20 per cent price cut of
Marlboro cigarettes in order to compete with cheaper price cigarettes. At the
time, Marlboro cigarettes were notorious for their heavy advertising campaigns,
and nuanced brand image. On that day, the prices of many branded companies Wall
street stocks fell: Heinz, Coca Cola, Quaker Oats, PepsiCo;
seemingly the signal of the beginning 'brand blindness'(Klein 13).
engaged in branding seek to develop or align the expectations behind the brand
experience, creating the impression that a brand associated with a product or
service has certain qualities or characteristics that make it special or unique.
A brand image may be developed by attributing a "personality" to or
associating an "image" with a product or service, whereby the personality
or image is "branded" into the consciousness of consumers. A brand is
therefore one of the most valuable elements in an advertising theme. The art of
creating and maintaining a brand is called brand management.
brand which is widely known in the marketplace acquires brand recognition. When
brand recognition builds up to a point where a brand enjoys a critical mass of
positive sentiment in the marketplace, it is said to have achieved brand franchise.
One goal in brand recognition is the identification of a brand without the name
of the company present. For example, Disney has been
successful at branding with their particular script font (originally created for
Walt Disney's "signature" logo), which it used in the logo for go.com.
refers to the unique attributes, essence, purpose, or profile of a brand and,
therefore, a company. The term is borrowed from the biological DNA, the molecular
"blueprint" or genetic profile of an organism which determines its unique
act of associating a product or service with a brand has become part of pop culture.
Most products have some kind of brand identity, from common table salt to designer
clothes. In non-commercial contexts, the marketing of entities which supply ideas
or promises rather than product and services (e.g. political parties or religious
organizations) may also be known as "branding".
equity measures the total value of the brand to the brand owner, and reflects
the extent of brand franchise. The term brand name is often used interchangeably
with "brand", although it is more correctly used to specifically denote
written or spoken linguistic elements of a brand. In this context a "brand
name" constitutes a type of trademark, if the brand name exclusively identifies
the brand owner as the commercial source of products or services. A brand owner
may seek to protect proprietary rights in relation to a brand name through trademark
branding is the choice to represent a feeling, which is not necessarily connected
with the product or consumption of the product at all. Marketing labeled as attitude
branding includes that of Apple, Nike, Safeway, Starbucks, and The Body Shop.
economic terms the "brand" is a device to create a monopoly—or
at least some form of "imperfect competition"—so that the brand
owner can obtain some of the benefits which accrue to a monopoly, particularly
those related to decreased price competition. For example, the Coca Cola corporation
can never have a monopoly on cola-flavored soda pop, but it can have a monopoly
on its own brand of cola-flavored soda pop. In this context, most "branding"
is established by promotional means. There is also a legal dimension, for it is
essential that the brand names and trademarks are protected by all means available.
The monopoly may also be extended, or even created, by patent, copyright, trade
secret (e.g. secret recipe), and other sui generis intellectual property regimes
(e.g.: Plant Varieties Act, Design Act).
all these contexts, retailers' "own label" brands can be just as powerful.
The "brand", whatever its derivation, is a very important investment
for any organization. RHM (Rank Hovis McDougall), for example, have valued their
international brands at anything up to twenty times their annual earnings. Often,
especially in the industrial sector, it is just the company's name which is promoted
(leading to one of the most powerful statements of "branding"; the saying,
before the company's downgrading, "No-one ever got fired for buying IBM").
existing strong brand name can be used as a vehicle for new or modified products;
for example, many fashion and designer companies extended brands into fragrances,
shoes and accessories, home textile, home decor, luggage, (sun-) glasses, furniture,
hotels, etc. Mars extended its brand to ice cream, Caterpillar to shoes and watches,
Michelin to a restaurant guide, Adidas and Puma to personal
is a difference between brand extension and line extension. When Coca-Cola launched
"Diet Coke" and "Cherry Coke" they stayed within the originating
product category: non-alcoholic carbonated beverages. Procter & Gamble (P&G)
did likewise extending its strong lines (such as Fairy Soap) into neighboring
products (Fairy Liquid and Fairy Automatic) within the same category, dish washing
detergents. These are examples of line, not brand extensions.
a market fragmented with many brands, a supplier can choose to launch new brands
apparently competing with its own, extant strong brand (and often with an identical
product), simply to obtain a greater share of the market that would go to minor
brands. The rationale is that having 3 out of 12 brands in such a market will
give garner a greater, overall share than having 1 out of 10 (even if much of
the share of these new brands is taken from the existing one). In its most extreme
manifestation, a supplier pioneering a new market which it believes will be particularly
attractive may choose immediately to launch a second brand in competition with
its first, in order to pre-empt others entering the market.
brand names naturally allow greater flexibility by permitting a variety of different
products, of differing quality, to be sold without confusing the consumer's perception
of what business the company is in or diluting higher quality products.
again, Procter & Gamble is a leading exponent of this philosophy, running
as many as ten detergent brands in the US market. This also increases the total
number of "facings" it receives on supermarket shelves. Sara Lee, on
the other hand, uses it to keep the very different parts of the business separate—from
Sara Lee cakes through Kiwi polishes to L'Eggs pantyhose. In the hotel business,
Marriott uses the name Fairfield Inns for its budget chain (and Ramada uses Rodeway
for its own cheaper hotels).
is a particular problem of a "multibrand" approach, in which the new
brand takes business away from an established one which the organization also
owns. This may be acceptable (indeed to be expected) if there is a net gain overall.
Alternatively, it may be the price the organization is willing to pay for shifting
its position in the market; the new product being one stage in this process.
& Fitch is a multi-brands company, rolling out Lifestyle Brands and the phony
competitor Hollister Co.
Generic and private-label brands
the emergence of strong retailers, the "own brand", the retailer's own
branded product (or service), emerged as a major factor in the marketplace. Where
the retailer has a particularly strong identity, such as, in the UK, Marks &
Spencer in clothing, this "own brand" may be able to compete against
even the strongest brand leaders, and may dominate those markets which are not
otherwise strongly branded. There was a fear that such "own brands"
might displace all other brands (as they have done in Marks & Spencer outlets),
but the evidence is that—at least in supermarkets and department stores—consumers
generally expect to see on display something over 50 per cent (and preferably
over 60 per cent) of brands other than those of the retailer. Indeed, even the
strongest own brands in the United Kingdom rarely achieve better than third place
in the overall market. In the US, Target has "own" brands of "Market
Pantry" and "Archer Farms" each with unique packaging and placement.
strength of the retailers has, perhaps, been seen more in the pressure they have
been able to exert on the owners of even the strongest brands (and in particular
on the owners of the weaker third and fourth brands). Relationship marketing has
been applied most often to meet the wishes of such large customers (and indeed
has been demanded by them as recognition of their buying power). Some of the more
active marketers have now also switched to 'category marketing'—in which
they take into account all the needs of a retailer in a product category rather
than more narrowly focusing on their own brand.
the same time, generic (that is, effectively unbranded goods) have also emerged.
These made a positive virtue of saving the cost of almost all marketing activities;
emphasizing the lack of advertising and, especially, the plain packaging (which
was, however, often simply a vehicle for a different kind of image). It would
appear that the penetration of such generic products peaked in the early 1980s,
and most consumers still seem to be looking for the qualities that the conventional
brand provides. (Credit: Wikipedia).