Building a Brand Leader

Building a brand leader

INTRODUCTION We’ve come a long way 1993-4 1999 2003 that Sky will have 7 million digital “we want to be at the heart of 21st cen- Over the next two years Sky continued Interactivity came to Sky in 1999 with the satellite households (18.9 million indi- tury living and to make every day extra- In a few years, British Sky Broadcasting has transformed the First, a little bit of history… to increase what was on offer to its sub- launch of Open and Sky Sports Active. viduals) - fully a third of all TV homes ordinary for every one of our customers” way people in Britain watch and use their television. Before scribers. In 1993 it added a multichan- Using Sky digital technology, Open in Britain. It has secured the main live 1989 nel package, offering a selection of allowed customers to shop, bank, play rights to FA Premier League Football This is backed up by a statement of Sky people could never have imagined ordering a pizza or When Sky began broadcasting via the themed channels that complemented the games and email directly from their tele- until the end of 2003-04 season. And it how that will be achieved, a brand sending an email from their set. Today it’s an accepted thing. Astra satellite back in February 1989 it existing movies, news and sports ser- vision. Sky Sports Active, available has firmly established itself as a leading promise: offered four channels – Sky Channel, vices. A further expansion occurred in during major live sports broadcasts on innovator and pioneer in broadcasting. Part of Sky’s success has been in its brand. In defining what “we’ll achieve our ambition by: Sky News, Sky Movies and Eurosport. 1994 with the launch of Sky Sports 2. Sky Sports Extra, gave customers a choice makes Sky special and in expressing that difference visually, in It was Britain’s first satellite broadcast- of alternative camera angles, access to in- creating and acquiring the best 1995-7 er and overnight it doubled the number depth statistics and match highlights on The Sky brand entertainment and information products and in the actions of people in the company. And that 1995 was a big year for BSkyB. 17.5% of channels available to the public. demand via their Sky digital handset. brand has become one of the company’s greatest assets. of the company was floated on the UK Sky’s achievements in its short life so far keeping our customers at the emphasise that the company has always 1990 and US stock exchanges and BSkyB 2000 onwards forefront of entertainment and Brands help companies build a relationship with a customer. A Today, Sky digital has 4.1 million cus- had a common ambition and a common By 1990 Sky had sold one million entered the FTSE 100 index. Also that information technology good brand not only helps differentiate a company, it also helps decoders and had established a growing year the company secured the second tomers and it is anticipated by the end of the customer feel something as a result. A pair of Nike trainers customer base. But in April of that year term of the FA Premier League contract. giving our customers the best pos- sible experience might make a person feel more fashionable. A Sony minidisc a rival service was launched by British The company continued to innovate, making use of new technology. It pio- player might make a person feel they are at the cutting edge of Satellite Broadcasting. It offered five and by continuing to be inventive, cre- channels from the Marco Polo satellite, neered domestic pay-per-view in the UK ative, entertaining and challenging”. miniature technology. A Rolls Royce might make a person feel but had an uphill struggle getting in 1996 with the Bruno v Tyson heavy- that they have reached the top. established. It was not long before weight boxing championship. And in the And to help make Sky staff understand BSB and Sky agreed on a merger, creat- following year launched Sky Box Office how it affects them in their day to day Some brands even go beyond that and become so well known ing British Sky Broadcasting (BSkyB) – an ordering system that allowed cus- work, there’s a statement about com- that they become generic. This means they’re used as a gener- al term for that type of product, even if it’s a competitor’s product. Walkmans and Hoovers are a good example. People Hoover the carpet, even if they’re really using an Electrolux. A brand helps customer recognition, and enables recognition to be spread by word of mouth as well as by advertising. A brand also adds value. It can allow a company to offer its products at a premium, without reducing the customers’ perception of value for money. It also allows a company to extend what they and a five channel line up of Sky One, tomers to order movies on a pay-as-you- way of doing things. It has always been offer to the customer - if a customer trusts one product from Sky News, Sky Movies, the Movie view basis. about innovation, always been about that company, they are more likely to trust (and buy) another Channel and Sky Sports. The merger giving customers new things and a better BROWSE THE WEB FOR 1998 information on the organisation product from the same company. was driven by a shared aim – to give choice, always been about making Sky an On October 1st 1998, Sky digital was viewers more choice. essential part of people’s homes. And this That is why Sky has invested so much in its brand. As the first launched - Britain’s first digital televi- idea is at the heart of the Sky brand. It’s www.sky.com entrant 11 years ago in the field of multichannel television, it had 1992 sion service. It has achieved the fastest the single most important thing that makes Sky different from its competitors. the opportunity to build strong recognition and to even establish In 1992 BSkyB secured the exclusive roll out of any digital television plat- rights to live FA Premier League foot- form in Europe. It meant that Sky itself as the generic brand for multichannel television. Sky sums up this idea in a single sen- ball coverage – a major coup for the could dramatically extend the choice it tence – something other companies may company. It also announced its first gave its customers – with some 140 call a mission statement, but something operational break-even. channels on offer. Sky calls ‘our shared ambition’: GLOSSARY OF KEYWORDS munication and behaviour. We aim to the whole business and is used on most feel. This is because channel brands Colours What next for Sky? be personal, clear, entertaining, engag- material. This logo is often supported by need to appeal to specific audiences – Brand: A product’s identity that dis- Icon: An object or person chosen or ing and confident. a descriptor – a short statement for the sports fanatic, the classic movie buff, The use of a colour is an important part It’s not only a visual consistency that’s tinguishes it from the competition. regarded as a symbol. customers that describes Sky’s offer in the 30 somethings. They also appear on of the visual brand. Many companies are needed to keep Sky a strong brand – Successful branding adds value to a These statements help staff within Sky more detail. This is ‘a digital vision for competitor platforms, where overt Sky product and can ensure brand loyalty. Logo: A visual symbol of an organi- already recognised solely by the colours it’s also about really understanding sation or brand. focus on what is most important to the branding may not be appropriate. These everyone’. BreakÐeven: The point at which total they use. Orange and black for Orange. and sharing the ambition of the compa- company. They also remind staff of brands are used on screen and when costs of production are covered by Mission Statement: Details the aims what is expected of them in terms of To help people apply the logo consis- communicating about a specific channel. Red for Virgin and for Coca Cola. Sky ny and about behaving in a Sky way. total revenue. and provides the sense of common purpose to focus and motivate the behaviour. They are essential in making tently Sky has established detailed rules uses one primary colour – a specific dark The creation of brands such as these is Floated: The launch of a company on company. sure that customers get the same experi- about its use. These include guidelines strictly controlled, as too many brands blue (Pantone 2758c). This appears on New projects – such as the next stage to the stock market by the offer of its ence from Sky whenever they come into on the colours in which it can be used, will only confuse the customer and almost every communication produced in the development of Sky.com, will shares to the public. Vision: The purpose and ambition of the company. contact with the company. the sizes and the minimum areas that weaken the recognition of Sky itself. by Sky. But one colour is not enough – all need to be on brand. New staff will FTSE 100 index: A widely quoted should be left around it to ensure that it particularly when producing longer doc- need to be introduced and immersed index showing the average price level of the 100 largest public companies in always stands out. in the brand, so they really understand Visual branding uments. So Sky has a small number of the UK Icons supporting colours that can be used to what it means to Sky and to them. But Sky is a complex company - largely Generic Brands: Those that are so To support the shared ambition Sky also because it offers such a wide variety of add contrast or visual interest. totally associated with the product that The logos are supported by a set of icons Sky’s brand gives the company focus, consumers treat the brand name as if it has to look consistent wherever cus- content and commerce services across – graphics that represent some of the so Sky’s energies are channelled in was a product category. tomers come across it – whether in multiple devices including interactive features and benefits of the company. a single direction, and so Sky print, on screen, on a van, or anywhere TV, mobile internet, ADSL (asymmetric Other elements else. This consistency in appearance digital suscriber line) and the web. There These icons are used to emphasise a continues to lead the way in multichan- Other guidelines cover the use of type – helps build consumer recognition of the are physical things like the dish and digi- specific benefit being described in text, nel television. including the use of Sky type, the company and helps to build a demand box. There are services – such as the but more often are simply used to add specially created font in which the Sky for the company and its products. subscription for Sky channels, or the interest to a piece of design. By using As Tony Ball, Sky’s Chief Executive logo appears – and the use of images. says “one thing’s for certain; the only installation service. And there’s the con- these icons across all Sky communica- tent – channels like Sky Sports 1, Sky way Sky will stay first is to keep tions, the icons add another element that Together all these elements add up to Logos One and Sky MovieMax. looking beyond the horizon and think- people will recognise and associate with build a strong visual brand for Sky, ing outside the box”. The most visible part of this branding is Products and services use the Sky brand, Sky. In time it’s likely that they will one that’s clear, confident and the Sky logo, which is used to represent but channels have their own look and become as important as the logo itself. consistent.

QUESTIONS BROWSE THE WEB FOR information on the organisation 1 Give examples of other generic 2 Evaluate the importance of a 3 Explain the reasons why a com- 4 Analyse whether you believe 5 Research and evaluate a brands. mission statement for a compa- pany may ‘float’ on the stock Sky is a market or product ori- company’s brand image. www.sky.com ny. exchange. entated firm. Use the issues discussed in the case study to guide your work. How successful do you feel the company’s image is? Make suggestions for improving the brand image of the company.