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The 22 Immutable laws of
        Branding



                           1
1. The law of Expansion
• The power of a brand is inversely proportional
  to its scope
• Marketers constantly run branding programs
  in conflict with people’s perception of their
  brands. Customers want brands that are
  narrow in scope and are distinguishable by a
  single word, the shorter the better."

                                                   2
• Chevrolet used to be the largest selling brand in
  the US with 1,718,839 cars sold in 1986. But trying
  to be all things to everyone undermined the brand
  and today Chevy sells less than a million cars and is
  no longer the market leader.
                                                          3
2. The law of Contraction
• A brand becomes stronger when you narrow
  its focus




                                             4
• In a few short years Starbucks has become one of
  US’s best known and most popular brands.
  Narrowing one’s focus is not same as carrying a
  limited line. Starbucks offers thirty different types of
  coffees.
                                                         5
3. The law of Publicity
• The birth of a brand is achieved with publicity, not
  advertising
• Advertising is best used to maintain a brand, but it is
  very difficult and expensive to launch a new brand
  through advertising alone
• The best way is to be first in a new product or service
  category, and reap the attendant publicity

                                                        6
• Anita Roddick created the concept of Body
  Shop in 1976 around the concept of natural
  cosmetics made of pure ingredients, no
  animal testing and kind to environment and
  indigenous people. With no advertising but
  massive amounts of publicity, it is today a
  powerful global brand.
                                                7
4. The law of Advertising



• Once born, a brand needs advertising to stay
  healthy

                                                 8
• A consistent theme of Goodyear advertising
  over the years has been #1 in tires. So who
  makes the best tires? It must be Goodyear
  thinks the customer. It’s the leader.


                                                9
5. The law of the Word
• A brand should strive to own a word in the mind of
  the consumer
• If you want to build a brand, you must focus your
  branding efforts on owning a word in the prospect's
  mind. A word that nobody else owns.
• Examples: Mercedes = prestige; Volvo = safety;
  Kleenex = tissue; Xerox = copier; .

                                                    10
• Federal Express became successful by
  becoming the first air cargo carrier to narrow
  its focus on overnight delivery thereby owning
  the word overnight in customers minds. FedEx
  has become synonymous with overnight
  delivery.
                                               11
6. The law of Credentials
• The crucial ingredient in the success of any brand is
  its claim to authenticity. The best claim is being the
  leading product or service in your category,
  because consumers assume that if it is a leading
  seller, it must be good
• Never forget leadership. No matter how small the
  market, don't get duped into simply selling the
  benefits of the category
• There are also the long-term benefits of leadership.
  Once you get on top, its hard to lose your spot.
                                                           12
• In 1942, Coca Cola launched an Ad Campaign “
  The only things that tastes like Coca Cola is
  Coca Cola Itself. It’s the real thing.” It has used
  the real thing slogan over the years to claim
  its authenticity.
                                                    13
7. The law of Quality

• Quality is important, but brands are not built
  by quality alone
• In fact, most people have no idea as to the
  "real" quality of a product or service.
• Is a Rolex really better at keeping time than a
  Timex? How do you know?

                                                    14
• Rolex has become the world’s best known and best
  selling brand of luxury watches. Does quality have
  anything to do with its success? Probably not. Does
  Rolex make high quality watches? Probably. Does it
  matter? Probably Not.

                                                        15
8. The law of the Category

• A leading brand should promote the product
  or service category, not the brand.
• This may seen counter-intuitive, but the
  best way for the brand leader to build sales
  is to promote the category, not their specific
  brand.

                                               16
• Eatzi’s is the first brand in the new category it
  calls the meal market. Jointly owned by
  Brinker international and Phil Romano, Eatzi’s
  focuses on restaurant quality food primarily
  for take out consumption.

                                                      17
9. The law of the Name


• In the long run, a brand is nothing more than a
  name


                                                18
• One of the world’ most powerful brands, Xerox
  demonstrates many of the important laws of
  branding, including being the first in its category with
  a short unique name , so much to become generic
  for copying. How ever when it put its name to
  computers the result was huge losses

                                                         19
10. The law of Extensions


• The easiest way to destroy a brand is to put its
  name on everything



                                                 20
• With a powerful marketing program, Miller
  high Life was rapidly gaining on market
  leader Budweiser. ( It got within 20% of King
  of Beers) Then it introduced a bevy of line
  extensions and stopped Miller High Life cold.
                                              21
11. The law of Fellowship


• In order to build the category, a brand should
  welcome other brands

                                                   22
• One of the best locations for a number two brand
  is across the street from the leader. The best place
  for a Planet Hollywood is right across the street
  from its biggest competitor, Hard Rock Café. Both
  brands will benefit.

                                                     23
12. The law of the Generic

• One of the fastest routes to failure is giving a brand a
  generic name
• Generic names (i.e. names describing the product or
  service category, such as "Wine Coolerz"), do not
  strongly position the product or service within the
  category, and are thus liable to confuse potential
  customers.

                                                        24
• Blockbuster Video is a good brand name for a
  video rental store while General Video Rental
  is not. Brands should Avoid generic names
  like the plague. Yet you see a large number of
  such generic names especially in the retail
  area.

                                              25
13. The law of the Company

• Brands are brands. Companies are companies. There
  is a difference.

• Brand names should always take precedence over
  company names. Consumers buy brands, they don't
  buy companies. So when a company name is used
  alone as a brand name like GE, Xerox, Intel
  customers see these names as brands.

                                                    26
• Does Tide need the corporate endorsement of
  company name Procter & Gamble? Probably Not.
  Will the endorsement hurt the brand? Probably
  not. But Corporate endorsements are for the
  trade , not for customer’s enlightenment.
                                                  27
14. The law of Sub brands


• What branding builds, sub branding (i.e.
  brand extensions) can destroy.


                                             28
• Holiday Inn has become a mega brand with
  the launch of sub brands like Holiday Inn
  Express, Holiday Inn Select, Holiday Inn
  Garden Court etc. This sub branding is
  eroding the power of core brand.

                                              29
15. The law of Siblings
• There is a time and a place to launch a
  second brand.
• The key to a family approach is to make
  each sibling a unique individual brand with
  its own identity.
• Resist the urge to give the brands a family
  look or identity. You want to make each
  brand a different and distinct as possible.
                                                30
• When Honda wanted to introduce an expensive car,
  it didn’t call the brand Honda Plus or Honda Ultra. It
  developed a new brand called Acura which became a
  huge success. As a matter of fact , it became the
  largest selling imported luxury car in US.

                                                       31
16. The law of Shape

• A brand's logotype should be designed to fit
  both the eye.
• The ideal shape for a logotype or brand
  symbol is two and a quarter units wide and
  one unit high.
                                                 32
• A customer sees the world through 2
  eyes peering out of his head like looking
  out windshield of an automobile. For
  Maximum Visual Impact a logotype
  should be same shape as a windshield.
  Avis is almost perfect while Arby’s is too
  vertical.
                                               33
17. The law of Color


• A brand should use a color that is the opposite
  of its major competitor's.


                                                34
• What color is a Tiffany’s box . It’s a distinctive
  Robin’s egg blue. All tiffany boxes are blue. If
  Tiffany had used a variety of colors for its
  boxes ,it would have lost a marvelous
  opportunity for brand name reinforcement
  with a distinctive color.

                                                       35
18. The law of Borders

• There are no barriers to global branding. A
  brand should know no borders.


                                                36
• Heineken exports it beer to some 170
  different countries. In most of these
  countries, it is the largest selling high priced
  beer. It locally brews its beer in 50 countries.

                                                     37
19. The law of Consistency


• A brand is not built overnight. Success is
  measured in decades, not years

                                               38
• BMW has been ultimate driving machine for 25
  years. What's more remarkable is the fact that it
  retained its strategy even while changing 3
  advertising agencies. Change of agencies usually
  signals end of a brand’s consistency.

                                                      39
20. The law of Change


• Brands can be changed, but only infrequently
  and very carefully.

                                             40
• Citibank changed from a corporate bank to a
  consumer bank with plans of becoming the first
  global consumer bank. It took a while but was done.
  But a merger with Travelers Group threatened the
  entire branding process.

                                                    41
21. The law of Mortality


• No brand will live forever. Euthanasia is often
  the best solution.

                                                42
• Film Photography is slowly being replaced by
  digital photography. But Kodak refuses to face
  that reality. Instead it is trying to save its
  brand by using Kodak name on its Digital
  products.
                                               43
22. The law of Singularity


• The most important aspect of a brand is its
  single-mindedness.


                                                44
• Volvo has been selling safety for over 35 years. In
  the process it has become the largest selling
  European luxury car. In the past decade, it has sold
  849,348 cars in the US, outselling BMW and
  Mercedes Benz.
                                                         45
Thank You

            46

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22 Immutable Laws of Branding

  • 1. The 22 Immutable laws of Branding 1
  • 2. 1. The law of Expansion • The power of a brand is inversely proportional to its scope • Marketers constantly run branding programs in conflict with people’s perception of their brands. Customers want brands that are narrow in scope and are distinguishable by a single word, the shorter the better." 2
  • 3. • Chevrolet used to be the largest selling brand in the US with 1,718,839 cars sold in 1986. But trying to be all things to everyone undermined the brand and today Chevy sells less than a million cars and is no longer the market leader. 3
  • 4. 2. The law of Contraction • A brand becomes stronger when you narrow its focus 4
  • 5. • In a few short years Starbucks has become one of US’s best known and most popular brands. Narrowing one’s focus is not same as carrying a limited line. Starbucks offers thirty different types of coffees. 5
  • 6. 3. The law of Publicity • The birth of a brand is achieved with publicity, not advertising • Advertising is best used to maintain a brand, but it is very difficult and expensive to launch a new brand through advertising alone • The best way is to be first in a new product or service category, and reap the attendant publicity 6
  • 7. • Anita Roddick created the concept of Body Shop in 1976 around the concept of natural cosmetics made of pure ingredients, no animal testing and kind to environment and indigenous people. With no advertising but massive amounts of publicity, it is today a powerful global brand. 7
  • 8. 4. The law of Advertising • Once born, a brand needs advertising to stay healthy 8
  • 9. • A consistent theme of Goodyear advertising over the years has been #1 in tires. So who makes the best tires? It must be Goodyear thinks the customer. It’s the leader. 9
  • 10. 5. The law of the Word • A brand should strive to own a word in the mind of the consumer • If you want to build a brand, you must focus your branding efforts on owning a word in the prospect's mind. A word that nobody else owns. • Examples: Mercedes = prestige; Volvo = safety; Kleenex = tissue; Xerox = copier; . 10
  • 11. • Federal Express became successful by becoming the first air cargo carrier to narrow its focus on overnight delivery thereby owning the word overnight in customers minds. FedEx has become synonymous with overnight delivery. 11
  • 12. 6. The law of Credentials • The crucial ingredient in the success of any brand is its claim to authenticity. The best claim is being the leading product or service in your category, because consumers assume that if it is a leading seller, it must be good • Never forget leadership. No matter how small the market, don't get duped into simply selling the benefits of the category • There are also the long-term benefits of leadership. Once you get on top, its hard to lose your spot. 12
  • 13. • In 1942, Coca Cola launched an Ad Campaign “ The only things that tastes like Coca Cola is Coca Cola Itself. It’s the real thing.” It has used the real thing slogan over the years to claim its authenticity. 13
  • 14. 7. The law of Quality • Quality is important, but brands are not built by quality alone • In fact, most people have no idea as to the "real" quality of a product or service. • Is a Rolex really better at keeping time than a Timex? How do you know? 14
  • 15. • Rolex has become the world’s best known and best selling brand of luxury watches. Does quality have anything to do with its success? Probably not. Does Rolex make high quality watches? Probably. Does it matter? Probably Not. 15
  • 16. 8. The law of the Category • A leading brand should promote the product or service category, not the brand. • This may seen counter-intuitive, but the best way for the brand leader to build sales is to promote the category, not their specific brand. 16
  • 17. • Eatzi’s is the first brand in the new category it calls the meal market. Jointly owned by Brinker international and Phil Romano, Eatzi’s focuses on restaurant quality food primarily for take out consumption. 17
  • 18. 9. The law of the Name • In the long run, a brand is nothing more than a name 18
  • 19. • One of the world’ most powerful brands, Xerox demonstrates many of the important laws of branding, including being the first in its category with a short unique name , so much to become generic for copying. How ever when it put its name to computers the result was huge losses 19
  • 20. 10. The law of Extensions • The easiest way to destroy a brand is to put its name on everything 20
  • 21. • With a powerful marketing program, Miller high Life was rapidly gaining on market leader Budweiser. ( It got within 20% of King of Beers) Then it introduced a bevy of line extensions and stopped Miller High Life cold. 21
  • 22. 11. The law of Fellowship • In order to build the category, a brand should welcome other brands 22
  • 23. • One of the best locations for a number two brand is across the street from the leader. The best place for a Planet Hollywood is right across the street from its biggest competitor, Hard Rock Café. Both brands will benefit. 23
  • 24. 12. The law of the Generic • One of the fastest routes to failure is giving a brand a generic name • Generic names (i.e. names describing the product or service category, such as "Wine Coolerz"), do not strongly position the product or service within the category, and are thus liable to confuse potential customers. 24
  • 25. • Blockbuster Video is a good brand name for a video rental store while General Video Rental is not. Brands should Avoid generic names like the plague. Yet you see a large number of such generic names especially in the retail area. 25
  • 26. 13. The law of the Company • Brands are brands. Companies are companies. There is a difference. • Brand names should always take precedence over company names. Consumers buy brands, they don't buy companies. So when a company name is used alone as a brand name like GE, Xerox, Intel customers see these names as brands. 26
  • 27. • Does Tide need the corporate endorsement of company name Procter & Gamble? Probably Not. Will the endorsement hurt the brand? Probably not. But Corporate endorsements are for the trade , not for customer’s enlightenment. 27
  • 28. 14. The law of Sub brands • What branding builds, sub branding (i.e. brand extensions) can destroy. 28
  • 29. • Holiday Inn has become a mega brand with the launch of sub brands like Holiday Inn Express, Holiday Inn Select, Holiday Inn Garden Court etc. This sub branding is eroding the power of core brand. 29
  • 30. 15. The law of Siblings • There is a time and a place to launch a second brand. • The key to a family approach is to make each sibling a unique individual brand with its own identity. • Resist the urge to give the brands a family look or identity. You want to make each brand a different and distinct as possible. 30
  • 31. • When Honda wanted to introduce an expensive car, it didn’t call the brand Honda Plus or Honda Ultra. It developed a new brand called Acura which became a huge success. As a matter of fact , it became the largest selling imported luxury car in US. 31
  • 32. 16. The law of Shape • A brand's logotype should be designed to fit both the eye. • The ideal shape for a logotype or brand symbol is two and a quarter units wide and one unit high. 32
  • 33. • A customer sees the world through 2 eyes peering out of his head like looking out windshield of an automobile. For Maximum Visual Impact a logotype should be same shape as a windshield. Avis is almost perfect while Arby’s is too vertical. 33
  • 34. 17. The law of Color • A brand should use a color that is the opposite of its major competitor's. 34
  • 35. • What color is a Tiffany’s box . It’s a distinctive Robin’s egg blue. All tiffany boxes are blue. If Tiffany had used a variety of colors for its boxes ,it would have lost a marvelous opportunity for brand name reinforcement with a distinctive color. 35
  • 36. 18. The law of Borders • There are no barriers to global branding. A brand should know no borders. 36
  • 37. • Heineken exports it beer to some 170 different countries. In most of these countries, it is the largest selling high priced beer. It locally brews its beer in 50 countries. 37
  • 38. 19. The law of Consistency • A brand is not built overnight. Success is measured in decades, not years 38
  • 39. • BMW has been ultimate driving machine for 25 years. What's more remarkable is the fact that it retained its strategy even while changing 3 advertising agencies. Change of agencies usually signals end of a brand’s consistency. 39
  • 40. 20. The law of Change • Brands can be changed, but only infrequently and very carefully. 40
  • 41. • Citibank changed from a corporate bank to a consumer bank with plans of becoming the first global consumer bank. It took a while but was done. But a merger with Travelers Group threatened the entire branding process. 41
  • 42. 21. The law of Mortality • No brand will live forever. Euthanasia is often the best solution. 42
  • 43. • Film Photography is slowly being replaced by digital photography. But Kodak refuses to face that reality. Instead it is trying to save its brand by using Kodak name on its Digital products. 43
  • 44. 22. The law of Singularity • The most important aspect of a brand is its single-mindedness. 44
  • 45. • Volvo has been selling safety for over 35 years. In the process it has become the largest selling European luxury car. In the past decade, it has sold 849,348 cars in the US, outselling BMW and Mercedes Benz. 45
  • 46. Thank You 46

Notas do Editor

  1. Amity Business School