Session 7 Laws of Branding presentations

it defines laws of branding

1. Laws of Branding by Al & Laura Ries “Nothing happens until somebody brands something” Examples from your side as we go along!

2. 1. The Law of Expansion The power of a brand is inversely proportional to its scope When you put your name on everything, that name loses its power ( Alokozay / Patanjali) ‘Name the variants/ collections’ (Titan, Edge, Xylyz , Nebula) Clear, identifiable names – not long sentences or phrases Think long term Firms indulge in line extension, mega branding, variable pricing to milk the brand rather than build the brand Examples – Chevrolet (USA), AmEx (No longer premium with 15 new card types a year), Levi’s multiple styles All losing market share

3. 2. The Law of Contraction Keep a Narrow focus Starbucks – promise to offer great coffee Narrow focus does not mean limited line All types of food v/s Subway sandwiches Toys R Us – sold toys & furniture. Instead of expanding categories such as school bags and bicycle, they threw away furniture. Kept only toys. 10000 toys – compared to 3000 elsewhere -dominate the category

4. 3. The Law of Publicity The birth of a brand is achieved with publicity – not advertising Body Shop – Anita Roddick Be first – let the world know – by publicity Publicity happens when you conceive the brand Advertising happens after the product is born and ready to market Band-aid, the first adhesive bandage Xerox- the first plain paper copier Domino’s – the first pizza home delivery chain Intel - the first microprocessor Jell-o - the first gelatin dessert And so on…. Indian examples? Bisleri – the first bottled water? Thums up – the first cola?

5. 4. The Law of Advertising Once born, a brand needs advertising to stay healthy Helps establish leadership Creates awareness Advertising is a reminder Can’t stop advertising once the brand is strong Brand leaders advertise their premium position Heinz – America’s favorite ketch up Barilla – Italy’s no. 1 pasta

6. 5. The Law of the Word Own a specific word ‘Overnight’ service by FedEx Google it! German – reliable engineering Volvo – safety Mercedes – prestige Kleenex, Xerox, Bislery ? They own the category More examples…

7. 6. The Law of Credentials When you are known to be the best in the category A claim that elevates the brand above the competitors It’s the real thing – Coca-Cola Computer software - Microsoft Car rental – Hertz E Commerce – Amazon Streaming services – Netflix Dominos – best pizza delivery

8. 7. The Law of Quality Quality is important. But most of the time, quality is a customer’s perception. When a brand has a narrow focus, specializing in something, there is a perception of quality around it Price is also an indicator of quality Quality is not the only thing that builds a brand Emotional and Ego-centric needs also matter Rolex made its watches bigger & heavier with unique wristband Chivas Regal lets its scotch age longer Montblanc made its pens fatter

9. 8. The Law of the Category Create a new category Narrow the focus to nothing and create a new category Domino’s with pizza delivery (they pride in delivery – not in pizza) Launch the brand in a way that creates a perception that it was the first, the leader, the pioneer… iPhone in smartphone category Preempt the category and then promote the category Uber – ride sharing; Air BnB, Food delivery The question A. G. Bell was asked when he invented the telephone Competition makes things better for companies and customers What if there was just iPhone? Would we have so many apps? Would the smartphone category develop as much? Would an ecosystem develop around it?

10. 9. The Law of the Name Japanese Korean companies have too many products under the same name Hyundai microprocessors, telco satellites, cars, commercial vehicles, high-speed trains, turnkey engineering & construction projects Samsung – home appliances, consumer electronics They make many things, but not a lot of profit There is a low focus on branding, but a higher focus on the company Individual product lines might suffer due to this practice

11. 10. The Law of Extension Easiest way to destroy a brand is to get into multiple line extensions Retailers are the bosses. They control premium locations in the store Beer industry: In mid 70s had three major brands Now they each have extended lines with light, draft, reserve, regular, strong, extra strong, etc Much like shampoos, right? Brand line extensions don’t always increase market share or profits Build the brand, not just extend the line

12. 11. The Law of Fellowship In order to build the category, brand should welcome other brands Competition keeps you on the edge Choice stimulates demand Name competing brands Emirates – Qatar Airways iPhone – Samsung Coke – Pepsi These are only the top names in category Category expansion helps the companies and the customers

13. 12. The Law of the Generic In the past, several good brands had generic names General Motors, General Electrics (Now GM and GE) Standard oil, Standard brands American Airlines, American Motors, American Nightmare (Ok, that’s on Netflix) Becomes difficult to differentiate Many have moved to ‘fresher’ names National Biscuit Co. is now Nabisco General Electrics – GE IBM was earlier …. Just for Men hair color brand. What brand is it?

14. 13. The Law of the company The name of the company need not be the name of the brand Tide (not P&G detergent) Titan (not Tata watches) Microsoft – Google everything? Helpful sometimes. Not always. Consumers care about brands, not companies Once the brand is built, the company name should take a back seat

15. 14. The Law of Sub Brands Line extension or sub-brand – that’s the question Can end up diluting the main brand Edge – Sonata story Well-known main brand moving into a new territory Give an identity to the sub-brand Think of names – George Bush Sr., George Bush Jr.

16. 15. The Law of Siblings Creating a family of brands to control the market for a long time Time and place to launch a second brand When to launch a new brand and how Can it cannibalize the primary brand? Titan, Raga, Fastrack, Sonata – Titan Eye Plus Some go for separate strategic business units and not a line extension Lexus – Toyota Focus on a common product area (Cars, Watches, tea, magazine) Select a single attribute to segment (Price/ Gender/ Interest/age) Set up rigid distinctions – avoid overlaps Create different brand names (Not Kingfisher & Kingfisher Red) Launch a new sibling only when you create a new category Keep control of the siblings at highest level

17. 16. The Law of Shape Brand’s logotype should be designed to fit both eyes So, ideally horizontal Fonts – readable – modern, classic, masculine, feminine Symbol can represent a name – Swoosh – Nike Yellow frame - NatGeo

18. 17 The Law of Color Use of distinct colors to create an image To establish mood or tone Tiffany Post It UPS Loubotin etc…

19. 18. The Law of Borders Value of brand increases when it is ‘imported’ into another country Starbucks in India (How people feel about having it) French wine Swiss watches German cars Japanese electronics (?) Indian Yoga

20. 19. The Low of Consistency In product In service In advertising Think Amul Think Fevicol Think Titan, Tanishq No, not Hidesign !

21. 20. The Law of Change Brands can be changed But not too frequently (certainly not like the stations of Dubai Metro) And very carefully Titan – Sonata to Tata Sonata Citi Corp to Citi Bank Fair & Lovely to Glow & Lovely What customers think of your brand matters When should you change the brand? When it is Weak or Non-existent in the mind When you want to move the brand down the food chain When the brand is in a slow-moving field, and the change will take place over an extended period of time – CitiCorp to Citibank

22. 21. The Law of Mortality No brand lives forever… Think about how well-known the brand is Think what the brand stands for Think of how to preserve the legacy And let it go if it must… Kodak, Blackberry, Liril …

23. 22. The Law of Singularity Clear, singular purpose Else burnout Do not offer everything to everybody in various segments under the same brand name Examples? Do you ask for a safe car? Or Volvo? Do you ask for mineral water? Or…

24. See you in Season 2 of this limited series