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Brand Immortality: How Brands Can Live Long and Prosper

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Brand Immortality: How Brands Can Live Long and Prosper i Praise for Brand Immortality “This unique book rightly shifts attention from myopia, so often the scourge of advertising, to the long-term. Brand equity drives the bottom line, is the message, so prolong its active life. Supported by the brilliant IPA Effectiveness Database, Pringle and Field provide grounds for debate but, more importantly, a feast for thought.” Tim Ambler, Senior Fellow, London Business School and co-editor of The SAGE Handbook of Advertising “Hamish Pringle and Peter Field deserve our thanks for this challenging and convincing book. It makes a uniquely valuable contribution, combining both practical brand-building advice based on hundreds of case histories together with revealing analyses of the main theoretical branding frameworks. I am sure it will be widely read and closely studied in Asia: today’s manufacturing power, tomorrow’s brand power. If Western brand owners don’t learn from it too – look out!” Tim Broadbent, Regional Planning Director, Ogilvy & Mather Asia Pacific “For many companies, their brands have greater value than their people. This is an uncomfortable truth for people to accept. But people have to die and brands don’t. Brand Immortality uses solid case evidence to show how we mere mortals can achieve a sort of proxy immortality by investing our brands with the gift of eternal life.” Jeremy Bullmore, WPP “Extending a brand’s profitable life is of critical importance to marketers and Brand Immortality should serve as an antidote to those who think that infinite profitability is an impossibility.” Hugh Burkitt, Chief Executive, The Marketing Society “New complexities and subtleties constantly surround that iconically simple entity: the brand. Field and Pringle have disentangled the complexities, using hard data to identify those strategies which can make brands thrive forever – and those which can kill them off.” Winston Fletcher, Chairman, Advertising Standards Board of Finance and author of Powers of Persuasion: The Inside Story of British Advertising “Truly understanding and managing brands towards immortal status is a poorly understood art and science. In Brand Immortality, the wise insights provided by Hamish and Peter help to unlock some of the key secrets to long-term success.” Gillian Graham, CEO, Institute of Communication Agencies (ICA) ii “Unlike in life, brand death is merely an option – not an inevitable conclusion. Brand Immortality proves this point with impressive clarity and confidence.” Sir John Hegarty, Chairman and Worldwide Creative Director, Bartle Bogle Hegarty Ltd “The Institute of Practitioners in Advertising has assembled 880 case studies which demonstrate – with the use of the most advanced measurement techniques – the value of advertising to business. This collection is unique; it is the most important battery of robust data on advertising effectiveness available anywhere in the world. In this book the cases have been synthesized and lessons have been drawn that are of direct operational value to advertisers of all types of goods and services in all countries. We have been waiting a long time for this work to be written and published.” John Philip Jones, Professor Emeritus, Syracuse University “Pringle and Field expertly use theory and cases to demonstrate that brands can remain alive and healthy indefinitely if handled with competence and imagination.” Philip Kotler, S C Johnson Distinguished Professor of International Marketing, Kellogg School of Management, Northwestern University “Marketing plays a vital role in the economy and society at large, and, of course, longevity is an issue for both our investors and our brands. So the concept of immortality is both relevant and intriguing for marketing practitioners.” Professor John Quelch, Senior Associate Dean, Harvard Business School and co-author of Greater Good: How Good Marketing Makes for Better Democracy “A must-read for novice and expert alike; this book brings to life good old ideas and fresh new ones, with brilliantly chosen case studies and up to date facts and figures from the IPA dataBANK.” Professor Robert Shaw, Founder, Demand Chain Partners “It will be impossible from now on for any brand manager to blame his brand’s terminal illness on natural causes and hope to get away with it. Brand Immortality puts the responsibility for managing a brand’s longevity squarely back where it belongs: with its owners. And then helpfully shows them how to do it.” Sir Martin Sorrell, CEO, WPP “According to Brand Finance, 12 per cent of all shareholder value globally resides in brands, so ensuring they last as long as possible, and profitably so, must be paramount to investors. This book should be a City must-read!” Lorna Tilbian, Executive Director, Numis Securities Ltd “Hamish Pringle and Peter Field prove beyond peradventure that death is optional for brands, if not for the rest of us, in this brilliantly argued book.” Peter York, Co-Founder, Stragetic Research Unit iii BRAND Immortality How brands can live long and prosper Hamish Pringle Peter Field London and Philadelphia iv Publisher’s note Every possible effort has been made to ensure that the information contained in this book is accurate at the time of going to press, and the publishers and authors cannot accept responsibility for any errors or omissions, however caused. No responsibility for loss or damage occasioned to any person acting, or refraining from action, as a result of the material in this publication can be accepted by the editor, the publisher or any of the authors. First published in Great Britain and the United States in 2008 by Kogan Page Limited Apart from any fair dealing for the purposes of research or private study, or criticism or review, as permitted under the Copyright, Designs and Patents Act 1988, this publica- tion may only be reproduced, stored or transmitted, in any form or by any means, with the prior permission in writing of the publishers, or in the case of reprographic repro- duction in accordance with the terms and licences issued by the CLA. Enquiries concerning reproduction outside these terms should be sent to the publishers at the undermentioned addresses: 120 Pentonville Road 525 South 4th Street, #241 London N1 9JN Philadelphia PA 19147 United Kingdom USA www.koganpage.com © Institute of Practitioners in Advertising (IPA), 2008 The right of Hamish Pringle and Peter Field to be identified as the authors of this work has been asserted by them in accordance with the Copyright, Designs and Patents Act 1988. ISBN 978 0 7494 4928 5 Cover design concept by Hamish Pringle and Peter Field. British Library Cataloguing-in-Publication Data A CIP record for this book is available from the British Library. Library of Congress Cataloging-in-Publication Data Pringle, Hamish. Brand immortality : how brands can live long and prosper / Hamish Pringle and Peter Field. p. cm. Includes bibliographical references and index. ISBN 978–0–7494–4928–5 1. Brand name products. 2. Branding (Marketing) I. Field, Peter. II. Title. HD69.B7.P749 2008 658.8Ј27--dc22 2008022897 Typeset by Saxon Graphics Ltd, Derby Printed and bound in Great Britain by MPG Books Ltd, Bodmin, Cornwall v To all the authors of IPA Effectiveness Awards cases, whose intellect, diligence and accountability have created such a great source of learning about brands, their successful advertising and communication strategies, and their proven return on marketing investment for clients. Hamish Pringle To the late Simon Broadbent, father of the IPA Effectiveness Awards, without whose foresight this book would not have been possible. Peter Field ‘I don’t want to achieve immortality through my work. I want to achieve it through not dying.’ Woody Allen (1935–) ‘Immortality lies not in the things you leave behind, but in the people your life has touched.’ Anon vi THIS PAGE IS INTENTIONALLY LEFT BLANK vii Contents About the authors x Institute of Practitioners in Advertising (IPA) xii Foreword xiii Preface xiv Acknowledgements xv Introduction 1 Part 1 – Brands as shareholder assets to be managed 3 1 Why immortality should matter to investors 5 2 Is death inevitable? 12 3 How the changing nature of brands affects brand resilience 21 4 How brand architecture affects brand resilience 26 House of brands 26 Endorsed brands 27 Sub-brands 28 Branded house 28 Part 2 – Common business models: meaningful or menacing to brands? 31 5 Introduction to the dangers of some strategic thinking models 33 6 The Ansoff Matrix 35 Market penetration 35 Market development 38 Product development 40 Diversification 42 viii Contents 7 The Boston Matrix 45 ‘Dogs’ 47 ‘Cash Cows’ 51 ‘Stars’ 55 ‘Question Marks’ 55 8 Porter’s Five Forces 59 Competitive rivalry 60 Supplier power 62 Buyer power 62 Threat of substitution 65 9 The 4 Ps 71 Product 73 Price 75 Place 79 Promotion 82 Part 3 – The evolution of advertising industry models 87 10 The FCB grid 89 11 Maslow’s Hierarchy of Needs 92 The unique selling proposition 94 The emotional selling proposition 96 The credo selling proposition 98 The subscription selling proposition 101 The brand promise system 103 Part 4 – The customer context for brands 111 12 The influence of customer life stage 113 13 The influence of customer mindset 126 Low (and high) attention processing 127 Selective perception 130 Cognitive dissonance 135 Herd instinct 136 Customer commitment 138 Part 5 – The broad rules for longevity – insights from the IPA Effectiveness Awards 141 14 Broad rules for longevity – introduction 143 15 The ‘law of returns’ 146 Contents ix 16 The use and abuse of brand
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