Brands: The New Wealth Creators

249 Pages·1998·25.474 MB·English

by  Susannah Hart, John Murphy (eds.)

BRANDS
THE NEW WEALTH CREATORS
Edited by
Susannah Hart
and
John Murphy
Foreword by Tom Blackett
palgrave
Interbtand
macmillan
Selection and editorial matter © Susannah Hart and john Murphy 1998
Individual chapters (in order) © john Murphy. Adrian Room. Pamela
Robertson. Susannah Hart. Chris Lightfoot. Katriona Campbell. Simon
Mottram. janet Fogg. Vincent Carratu. Alex Batchelor. Raymond Perrier.
Andrew Taylor. Bill Tragos. john Murray. Michael jary and Andrew Wileman.
joe Pope. Andy Milligan. David Andrew. Andrew Seth. Susannah Hart 1998
Foreword © Tom Blackett 1998
All rights reserved. No reproduction. copy or transmission of
this publication may be made without written permission.
No paragraph of this publication may be reproduced. copied or
transmitted save with written permission or in accordance with
the provisions of the Copyright. Designs and Patents Act 1988.
or under the terms of any licence permitting limited copying
issued by the Copyright Licensing Agency. 90 Tottenham Court
Road. london W1P OlP.
Any person who does any unauthorised act in relation to this
publication may be liable to criminal prosecution and civil
claims for damages.
The authors have asserted their rights to be identified as the authors
of this work in accordance with the Copyright. Designs and Patents
Act 1988.
Published by
PAlGRAVE
Houndmills. Basingstoke. Hampshire RG21 6XS and
175 Fifth Avenue. New York, N. Y. 10010
Companies and representatives throughout the world
PAlGRAVE is the new global academic imprint of
St. Martin's Press llC Scholarly and Reference Division and
Palgrave Publishers ltd (formerly Macmillan Press ltd).
ISBN 978-0-333-65909-0 ISBN 978-1-349-26070-6 (eBook)
DOI 10.1007/978-1-349-26070-6
This book is printed on paper suitable for recycling and made from fully
managed and sustained forest sources. Logging. pulping and manufacturing
processes are expected to conform to the environmental regulations of the
country of origin.
A catalogue record for this book is available
from the British Library.
10 9 8 7
07 06 05 04 03 02 01
Copy-edited and typeset by
Povey-Edmondson. Tavistock and Rochdale. England
I
Contents
List of Figures, Tables and Plates IX
Foreword Tom Blackett XI
Notes on the Contributors Xli
1 What Is Branding? 1
John Murphy, Interbrand
Introduction 1
Branding Today 2
Power Brands 2
The Importance of Brands 3
Maintaining Brand Values 4
Brand Extension 5
Own Label 7
The Lifecycle of a Brand 8
International Branding 8
Developing New Brands 9
Conclusion 11
2 The History of Branding 13
Adrian Room, The Names Society
Beginnings 13
The Growth of Branding 14
The Development of Leading Brands 18
The Death of a Brand 21
Some Well-Known Brands 21
The Uniqueness of Brand Names 22
3 New Brand Development 24
Pamela Robertson, Interbrand
Why Develop New Products at All? 24
Risks 25
What makes a Success? 26
The Need for Differentiation 26
The Process 27
Setting Objectives 28
III
IV Contents
Understanding the Market Dynamics 29
Understanding Consumer~/Customers 30
Creating the Idea 31
Launching the New Brand 32
4 Developing New Brand Names 34
Susannah Hart, Interbrand
What's In a Name? 34
Strategic Considerations 34
Developing a Brand Name Strategy 36
Developing Creative Themes 38
Name Creation 38
Computer Name Generation 39
Name Development Specialists 39
Selecting the Name 39
Testing Names 40
Trade Mark Availability Screening 40
Is It Worth It? 41
The Good, The Bad, The Ugly 42
The Brand Name Spectrum 42
Conclusions 43
5 Brand Packaging 46
Chris Lightfoot, Interbrand and Richard Gerstman,
Gerstman & Meyers
The Importance of a Brand's Visual Identity 46
A Short History 47
Modern Packaging Design 48
Creating Great Packaging Design 49
Commissioning Packaging Design 50
Briefing an Agency 50
Bringing It to Life 51
The Graphic Elements 53
Repositioning Strategy 53
An Eye Towards the Future 54
Summary and Conclusions 55
6 Researching Brands 56
Katriona Campbell, Interbrand
Introduction 56
How Healthy Is My Brand? 56
The Role of Research in New Brand Launches 58
Researching Specific Brand Components 59
Summary 61
Contents v
7 Branding the Corporation 63
Simon Mottram, Interbrand
The Rise of Corporate Branding 63
Brand Architecture and Endorsement Strategy 65
Corporate Brand Identity 66
Corporate Brand Management 67
Branding the Corporation of Tomorrow 68
Corporate Vision and Purpose 70
New Organisations 71
8 Brands as Intellectual Property 72
Janet Fogg, Markforce Associates
What is a Trade Mark? 72
What Can Be Registered? 72
Selecting New Trade Marks 73
The Trade Mark Searching Process 73
Registering Trade Marks and the Importance of Registration 75
The Registration Procedure 75
Protecting and Monitoring Trade Marks 76
Correct Use of Trade Marks 77
Policing of Trade Marks 77
The Effect of the UK Trade Marks Act 1994 78
Developments in Europe 78
Conclusion 81
9 Commercial Counterfeiting 82
Vincent Carratu, Carratu International
Introduction 82
Historical Background 83
Pseudo-Counterfeits 84
Overruns 84
Economic Damage Caused by Commercial Counterfeiting 85
The Legal Situation 85
The Current Situation 86
The Counterfeiters' Products 86
Hazardous Products 87
Non-Hazardous Products 88
Video Piracy 89
Computer Piracy 90
Legal Remedies 90
Practical Steps 93
Mutual-Aid Groups 93
Conclusions 94
VI Contents
10 Brands as Financial Assets 95
Alex Batchelor, Interbrand. UK
Introduction 95
Assets and Financial Statements 95
Mergers and Brand Value 97
Brands and Wealth 98
How Much Wealth? 99
Conclusion 102
11 Brand Licensing 104
Raymond Perrier, Interbrand
The Commercial Reality of Brand Value 104
Licensing of Intellectual Property 104
Trade Mark Licensing 106
Internal Licensing 107
Centralising Trade Marks 108
Role of Internal Licensing 108
The Fiscal Advantages of Internal Licensing 110
Comparable Transaction Methods 112
Conclusion 113
12 Brand Franchising 114
Andrew Taylor, Executive Vice President and Chief Operating
Officer, McDonald's UK
Introduction 114
The Franchise Industry 114
What Is Franchising? 114
The McDonald's Approach - How It All Began 115
'Enthusiasm and Commitment' 116
Developing a Global Franchising Business 118
Working Together 119
'Acting Local' 120
Shared Understanding 120
Franchising and the Future 121
13 International Branding 123
William G. Tragos, Chairman and CEO, TBW A International
The Growth of International and Regional Brands 124
Advantages of International Branding 126
Advantages of Regional Branding 127
The Secret of International Branding: ABSOLUT Success 128
Managing a Diverse Portfolio 130
Seagram: A Case History 131
Nissan: A Case History 132
Which Approach is Right For You? 133
Conclusions 134
Contents VB
14 Branding in the European Union 135
John Murray, Mars
The Extent and Limitation of the Single Market 135
The Branding Framework and Its Applicability Across the EU 144
Case Studies 148
Conclusion 151
15 Managing Retail Brands 152
Michael Jary and Andrew Wileman, OC&C Strategy Consultants
'The Real Thing' - Are Retail Businesses Really 'Brands'? 152
'Just Do It!' - Organising for Brand Management 157
In Summary 160
16 Commodity Branding 161
Joe Pope, ENZA, David Cull wick, Ernst & Young and
Jo Kennelly, Ernst & Young
Introduction 161
Can Commodities Be Branded? 162
Why Brand Commodities? 164
Elements of Commodity Branding 165
The ENZA Experience 170
Is Commodity Branding Worth It? 174
17 Branding In the Pharmaceutical Industry 176
Andy Milligan, Interbrand
Introduction 176
The Importance of Strong Brand Names 177
International Brand Names 178
Stages of Naming a New Drug 179
Creating and Developing New Brand Names 179
The Importance of Strong Brand Identities 180
Key Issues for Pharmaceutical Brand Identities 181
Branding the Delivery System 182
18 Brand Revitalisation and Extension 184
David Andrew, Interbrand
Introduction 184
Know Thyself 184
Stretch the Thinking 185
Recognise the Changes 187
Identify and Manage Core Values 188
Leverage the Assets 192
Image Transfer 193
Conclusion 194
Vlll Contents
19 Managing the Brand 196
Andrew Seth, The Added Value Company
The Principles of Managing Brands 196
The Brand Management System 197
The Changing Global and National Environment 197
Brand Responsibility: Who Owns the Brand? 198
Best Practice in Brand Management 201
The Search for Competitive Advantage 202
The Role of Top Management 202
Culture and Vision - Crucial Determinants 203
The Brand - A Continuing Source of Advantage 205
20 The Future for Brands 206
Susannah Hart, Interbrand
The Changing Brandscape 206
What has Happened to Consumer Goods Brands? 207
From Products to People 208
Service Brands 209
High-Tech Brands 209
The Growth of Non-traditional Brands 210
Global Brands 211
New Brand Launches 212
Brand Risk and Reputation 212
Brands and Society 213
Index 215
I
List of Figures, Tables and
Plates
• Figures
2.1 A Roman sign found at Pompeii 13
2.2 Seventeenth-century English inn signs 14
2.3 First telephone advertisement 17
2.4 Early promotion of Camp coffee 17
2.5 The punning 'lance' logo of Lancia 19
2.6 The 'Viking' Rover logo 19
2.7 The post-war Volkswagen logo 19
2.8 The first Coca-Cola advertisement 19
4.1 Naming spectrum 44
7.1 Microsoft 67
9.1 Vuitton 84
13.1 ABSOLUT 129
14.1 Lee 150
15.1 Relative volume and price, strong vs. weak brands 153
15.2 Retail brand premium: volume more than price 156
16.1 New Zealand Wool 167
16.2 Cervena 168
18.1 Consumer values hierarchy 190
18.2 Brand values hierarchy 190
18.3 Brand platform structure 191
18.4 Brand leverage strategies 195
20.1 Nike 211
• Tables
11.1 Example of internal licensing 111
12.1 European Franchise Federation statistics 1993 115
14.1 Annual per capita sweetener consumption in Europe 137
14.2 Changing households 138
14.3 Annual per capita chocolate confectionery consumption in
Europe 139
14.4 Per capital expenditure (ECU) - 1992 140
14.5 The consumer, affluent and poor 140
14.6 Market leaders in chocolate confectionery 141
lX