Pro Logo Brands as a factor of progress Michel Chevalier and Gérald Mazzalovo PRO LOGO General Advisor to Palgrave: Professor Christian Pinson, INSEAD Translation:Joe LaCour Pro Logo Brands as a factor of progress Michel Chevalier and Gérald Mazzalovo © Michel Chevalier and Gérald Mazzalovo 2004 Softcover reprint of the hardcover 1st edition 2004 978-1-4039-1825-3 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 W1T 4LP. 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. First published 2003 in France by Éditions d’Organisation asPro Logo:Plaidoyer pour les marques This edition published 2004 by PALGRAVEMACMILLAN Houndmills,Basingstoke,Hampshire RG21 6XS and 175 Fifth Avenue,New York,N.Y.10010 Companies and representatives throughout the world PALGRAVE MACMILLAN is the global academic imprint of the Palgrave Macmillan division of St.Martin’s Press,LLC and of Palgrave Macmillan Ltd.Macmillan®is a registered trademark in the United States,United Kingdom and other countries. Palgrave is a registered trademark in the European Union and other countries. ISBN 978-1-349-51411-3 ISBN 978-0-230-50889-7 (eBook) DOI 10.1057/9780230508897 This book is printed on paper suitable for recycling and made from fully managed and sustained forest sources. A catalogue record for this book is available from the British Library. A catalog record for this book is available from the Library of Congress. Editing and origination by Curran Publishing Services,Norwich 10 9 8 7 6 5 4 3 2 1 13 12 11 10 09 08 07 06 05 04 Contents List of figures viii List of plates x Acknowledgments xiii Introduction 1 Part I The world of brands 7 1 What is a brand? 11 The brand as contract 12 Brands and time 15 Brands and industrial sectors 21 Brands and society 26 The brand and its signs 27 2 Anti-brand communication 41 Models under protest 43 Yelling to be heard 47 Arrogant brands 56 Conclusion 68 3 From value to progress 70 The generation of wealth 72 Promotion of the process of innovation and creation 74 Perfecting markets 77 Promotion of multiculturalism 82 Progress engendered by consumers 83 Conclusion 87 v vi CONTENTS Part II Brand management 89 4 Brand identity 93 A still too unfamiliar concept 94 Tools for analyzing brand identity 97 Brand identity and consumer identity 125 The limits of the concept of identity:strategic and operational implications 130 The responsibilities of the company 135 5 The brand life cycle and the global dimension 138 Measuring a brand’s strength 142 The birth of a brand 143 Growth of a brand 145 Conclusion 154 A brand’s maturity 155 Decline,relaunching,and death of a brand 156 Global brands,local brands 161 Conditions and advantages of a global strategy 161 6 The brand audit 165 The chain of communication 166 The brand audit 175 The limits of the audit 188 Criteria of good brand management 190 Part III The role of the consumer 201 7 Consumers’behavior 205 Towards a formalization of purchasing behaviors 206 Personality and values 209 The notion of perception 210 Attitudes and preferences 213 The purchase decision 214 The influence of the group on individual behaviors 216 Conclusion 219 8 Consumers’power 221 An ethical counterbalance 222 Virtues of the act of purchase 225 The limits of consumer power 227 CONTENTS vii The rational consumer 233 The responsible consumer 236 Conclusion 237 9 Structured consumer action 239 The emergence of consumer law 240 The power and scope of consumer movements 248 Boycotts and their effectiveness 251 An assessment of boycotts and the true means of consumer advocacy 259 Part IV Conclusion 263 10 Brands and globalization 265 Global brand,or “global”as a brand? 266 Brands and multinationals 269 Brands and cultures 273 To conclude 280 Postscript 282 Index 284 List of figures 1.1 Estimation of the financial value of brands by Interbrand, in US$ billion 9 2.1 Impact of the 1991 Benetton campaign (percentage by 53 age group) 54 2.2 Impact of the 1991 Benetton campaign (percentage by income level) 54 2.3 Comparison of the 1991 Benetton campaign with the Ipsos standard 55 4.1 The dimensions of brand image 99 4.2 The brand identity prism 101 4.3 The brand identity prism applied to Chanel (early 2000) 102 4.4 The brand identity prism applied to Hermès (early 2000) 103 4.5 Levels of analysis or definition of a brand universe 106 4.6 Levels of definition of the Taurus universe (effective status in 1997) 108 4.7 Levels of definition of the Taurus universe:recommendations 109 4.8 Semiotic square of consumption values 111 4.9 Analysis of Ferragamo’s positioning in 1992 112 4.10 Main values related to egg consumption 114 4.11 Analysis of communication for Calvin Klein perfumes with the introduction of CK One 114 4.12 Two major categories of brands 115 4.13 Two major categories of brands:a few examples 116 4.14 National spirits 118 4.15 Semiotic mapping of consumer values 119 4.16 Semiotic mapping of consumer values:specificities of the four quadrants 120 viii LIST OF FIGURES ix 4.17 Semiotic mapping of consumer values:a few examples of brand positioning 121 4.18 The narrative schema applied to brands 122 4.19 The narrative schema applied to Taurus 123 4.20 The semiotician’s place in the organizational chart 125 4.21 Brand identity project:operational implications (actual example) 131 4.22 The place of the brand identity study in relation to other projects (example) 132 4.23 Place of brand identity in company strategies 134 4.24 Phases of brand identity definition project (actual example) 135 5.1 Life cycle of brands:the different phases and examples of positioning 139 5.2 Sales of Gucci products 140 5.3 Life cycle of brands:relaunching 140 5.4 Bulgari sales 141 5.5 Hermès sales 142 5.6 Ferragamo sales 142 5.7 Ericsson sales 146 5.8 Nokia sales 147 5.9 Kodak sales 157 5.10 Strategies of geographical extension,as a function of the potential for universalization of the brand identity 161 6.1 The chain of communication:the three critical transitions 167 6.2 Taurus:brand identity:what it is and what it isn’t 168 6.3 Taurus:advertising brief 169 6.4 Taurus:preliminary brief for a new store architectural concept 170 6.5 Taurus:brief for product development 171 6.6 Chains of communication:the competition for consumers’attention 176 6.7 Brand audit methodology 177 6.8 Synthetic flow chart of factors of brand success 198 7.1 Acts of purchase by type of resolution 215 7.2 Purchase acts by degree of consumer involvement 216 7.3 Consumers’purchasing behavior 217 8.1 Price elasticity as a function of income 229 10.1 The cultural pyramid 274