Matt Haig Brand ROYALTY HOW the WORLD’S TOP 100 BRANDS THRIVE & SURVIVE Brand Royalty TP 30/11/2004 12:35 Page 1 Brand ROYALTY
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Brand Royalty 30/11/2004 12:36 Page 1 "An essential who's who... well researched, pithy and insightful" Terry Hunt, Chairman, EHSBRANN matt haig brand ROYALTY HOW THE WORLD’S TOP 100 BRANDS THRIVE & SURVIVE Brand Royalty TP 30/11/2004 12:35 Page 1 brand ROYALTY HOW THE WORLD’S TOP 100 BRANDS THRIVE & SURVIVE matt haig London and Sterling, VA 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 author 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 the author. First published in Great Britain and the United States in 2004 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 publication 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 reproduction 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 22883 Quicksilver Drive London N1 9JN Sterling VA 20166-2012 United Kingdom USA www.kogan-page.co.uk © Matt Haig, 2004 The right of Matt Haig to be identified as the author of this work has been asserted by him in accordance with the Copyright, Designs and Patents Act 1988. ISBN 0 7494 4257 3 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 Haig, Matt. Brand royalty : how the world’s top 100 brands thrive and survive / Matt Haig. p. cm. Includes bibliographical references and index. ISBN 0-7494-4257-3 1. Brand name products--Management. I. Title. HD69.B7H346 2004 658.8'27--dc22 2004015322 Typeset by JS Typesetting Ltd, Wellingborough, Northants Printed and bound in Great Britain by Bell & Bain, Glasgow Contents Introduction 1 The brand as religion 2 The 100 choices 3 1. Innovation brands 5 1 Adidas: the performance brand 7 2 Sony: the pioneer brand 11 3 Hoover: the synonymous brand 13 4 Xerox: the research brand 15 5 American Express: the integrity brand 17 6L’Oréal: the individuality brand 19 7 Durex: the safe brand 23 8 Mercedes-Benz: the prestige brand 25 9 Nescafé: the instant brand 27 10 Toyota: the big-picture brand 29 2. Pioneer brands 31 11 Heinz: the trust brand 33 12 Kellogg’s: the familiarity brand 35 13 Colgate: the total brand 37 14 Ford: the volume brand 39 15 Goodyear: the leadership brand 41 16 Gillette: the shaving brand 43 17 Kleenex: the disposable brand 45 18 Wrigley: the new thinking brand 47 3. Distraction brands 51 19 MTV: the youth brand 53 20 Harry Potter: the story brand 55 21 Barbie: the escapist brand 59 22 Disney: the nostalgic brand 62 iv Contents 4. Streamlined brands 67 23 Cosmopolitan: the revolutionary brand 69 24 Nokia: the streamlined brand 71 25 Toys ‘R’ Us: the contraction brand 73 26 Subway: the focus brand 75 5. Muscle brands 77 27 IBM: the solution brand 79 28 Wal-Mart: the scale brand 83 29 McDonald’s: the service brand 85 30 Nike: the sports brand 90 31 Starbucks: the postmodern brand 96 32 Microsoft: the dominance brand 100 6. Distinction brands 105 33 Pepsi: the differentiation brand 107 34 Hush Puppies: the casual brand 110 35 Timex: the durability brand 112 36 Evian: the purity brand 114 37 Duracell: the longer-lasting brand 117 38 Danone: the health brand 119 39 Heineken: the export brand 121 7. Status brands 123 40 Rolex: the superior brand 125 41 Courvoisier: the mystery brand 127 42 Louis Vuitton: the desirable brand 130 43 Moët & Chandon: the vintage brand 133 44 Burberry: the heritage brand 135 45 BMW: the defining brand 137 46 Gucci: the exclusive brand 139 47 Tiffany & Co: the sparkling brand 141 8. People brands 145 48 Oprah Winfrey: the saviour brand 147 49 Jennifer Lopez: the superstar brand 150 50 David Beckham: the icon brand 153 Contents v 9. Responsibility brands 155 51 Johnson & Johnson: the crisis management brand 157 52 Ben & Jerry’s: the caring brand 160 53 Seeds of Change: the goodness brand 165 54 Cafédirect: the fair-trade brand 168 55 MAC: the cause brand 171 56 Hewlett-Packard: the employees’ brand 174 10. Broad brands 177 57 Yamaha: the ignored brand 179 58 Caterpillar: the rugged brand 181 59 Virgin: the elastic brand 183 11. Emotion brands 187 60 Apple: the cult brand 189 61 Harley-Davidson: the masculine brand 192 62 Zippo: the longevity brand 194 63 Jack Daniel’s: the personality brand 196 64 Chrysler: the romance brand 199 65 Guinness: the timeless brand 201 12. Design brands 205 66 IKEA: the democratic brand 207 67 Audi: the advancement brand 211 68 Bang & Olufsen: the improvement brand 213 69 Muji: the minimal brand 215 70 Vespa: the beautiful brand 218 71 Converse: the heritage brand 220 72 Volkswagen: the longevity brand 222 13. Consistent brands 225 73 Coca-Cola: the ultimate brand 227 74 Nivea: the continuity brand 231 75 Hard Rock Café: the memorabilia brand 233 76 Clarins: the expertise brand 235 77 Campbell’s soup: the uniformity brand 237 78 Budweiser: the targeted brand 239 vi Contents 14. Advertiser brands 243 79 Kraft: the household brand 245 80 Absolut Vodka: the advertising brand 247 81 Benetton: the colour brand 250 82 Calvin Klein: the sex brand 254 83 The Gap: the easy brand 256 84 Diesel: the ironic brand 259 15. Distribution brands 263 85 Avon: the resilient brand 265 86 Hertz: the credibility brand 267 87 Domino’s Pizza: the home-delivery brand 269 88 Dell: the direct sales brand 273 89 Amazon: the e-shopping brand 275 16. Speed brands 279 90 Reuters: the objective brand 281 91 FedEx: the ‘first’ brand 283 92 Zara: the speed-to-market brand 285 93 Hello Kitty: the cute brand 287 94 Google: the search brand 289 95 CNN: the information brand 292 96 Hotmail: the viral brand 294 17. Evolution brands 297 97 Bacardi: the Caribbean brand 299 98 HSBC: the acquisition brand 301 99 Intel: the educating brand 303 100 Samsung: the rising brand 305 The last word 307 References 309 Index 311 Introduction Being good in business is the most fascinating kind of art. (Andy Warhol) Branding is now the most important aspect of business. Whether the business is a bank or a toy shop, it is the brand itself that will dictate whether it succeeds or fails. Brand success equals business success. That may seem a simple equation, but identifying what exactly makes a brand work is pretty tricky, as no two brands are the same. In fact, the whole point of branding is to make a product or a business look distinct from its competition. Therefore, looking for a single magic brand formula that encompasses all successful brands seems like a bad idea. By focusing on 100 of the most successful brands, the difference between them becomes astoundingly clear. The simple ready-made solutions of the brand gurus start to unravel. You look at Hoover or Gillette or Coca-Cola and you think ‘Ah yes, of course, the secret to a successful brand is to invent a completely new type of product.’ And then you look at Mercedes-Benz or Nike or Pepsi and realize you can build a successful brand around someone else’s invention. You then think that maybe the secret to a successful brand is to be associated with one type of product or service. You look at brands such as Rolex, Kleenex, Wrigley’s, Colgate, Moët & Chandon, Hertz and Bacardi and you think: ‘At last! That’s it! That’s the secret! One type of product per brand!’ And then your heart sinks as you think of Yamaha and Caterpillar and Virgin, all of which produce widely different types of products. Ultimately, the examples in this book are successful not because they conform to a neat little set of laws that apply to all brands but because they follow their own individual path with confidence. Successful brands are similar in that they all have a clear vision, but that vision is never the same. It is precisely this lack of universal conformity that turns branding, and the business it generates, into the ‘fascinating kind of art’ Andy Warhol once spoke about. 2 Brand royalty The brand as religion While branding may be an ‘art’, it also owes a debt to religion. Indeed, you could easily be fooled into thinking that many brands want to be mini-religions in themselves. Looking at 100 brands therefore starts to feel like looking at 100 very different religious cults. Consider the following characteristics: l Faith. Like religions, brands want people to have faith in what they have to offer. This faith ideally leads to life-long devotion and belief in the brand’s authenticity. Think of the attempts to position brands as ‘the real thing’ (Coca-Cola) or the ‘truth’ (Budweiser’s ‘true’ slogan). l Omnipresence. Successful brands want to be everywhere, and many have already achieved this aim.