The Essential Brand Book: Over 100 Techniques to Increase Brand Value Iain Ellwood KOGAN PAGE LIMITED THE ESSENTIAL BRAND BOOK over 100 techniques to increase brand value To my parents, Rob and Jan, for their encouragement and support throughout all the years. THE ESSENTIAL BRAND BOOK over 100 techniques to increase brand value 2nd edition IAIN ELLWOOD First published in 2000 Reprinted 2001 Second edition 2002 Apart from any fair dealing for the purposes of research or private study, or criti- cism 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 address: Kogan Page Limited 120 Pentonville Road London N1 9JN www.kogan-page.co.uk © Iain P Ellwood, 2000, 2002 The right of Iain P Ellwood to be identified as the author of this work has been asserted by him in accordance with the Copyright, Designs and Patents Act 1988. British Library Cataloguing in Publication Data A CIP record for this book is available from the British Library. ISBN 0 7494 3863 0 Cover design by Richard Crighton Typeset by Saxon Graphics Ltd, Derby Printed and bound in Great Britain by Biddles Ltd, Guildford and King’s Lynn www.biddles.co.uk CONTENTS The author ix Acknowledgements xi Introduction 1 Brand communication 1 Contemporary branding 9 Branding, marketing and the business environment 2 Brand configuration 19 Structuring the brand and the organization 3 Service, retail and trade branding 42 Effective strategies for different sectors 4 Brand media 64 Established communication channels and techniques 5 New media brandsites 98 Strategies for the digital economy Brand definition 6 Brand positioning 121 Creating a strong core DNA for a brand 7 Cognitive brand dimensions 147 Defining the rational benefits of a brand 8 Emotional brand dimensions 163 Defining the emotional benefits of a brand v Contents Brand equity 9 Legal protection 181 Protecting the brand and its expression 10 Financial assets 198 Valuing the brand as a business asset Brand strategy 11 Brand planning 217 Strategies for brand revitalization, brand extension and new brand creation 12 Researching consumer behaviour 241 Evaluating the research process and methodologies 13 Corporate brand management 266 The CEO as brand manager and how to inspire every employee to take responsibility for the brand 14 The future 284 New rules for the new economy Glossary 302 Bibliography 310 Index 317 vi Contents Introduction Contemporary branding The future 1 Brand configuration 14 2 Corporate brand Service, retail management 13 3 and trade branding Brand Brand strategy communication Researching consumer 12 4 Brand media behaviour Brand New media 11 5 planning $ brandsites Brand Brand Financial 10 equity definition 6 assets Brand positioning Legal protection 9 7 Cognitive 8 brand dimensions Emotional brand dimensions Figure 0.1 Book navigation guide vii This Page Intentionally Left Blank THE AUTHOR Iain has over 10 years’ international experience living and working in Japan, Hong Kong, the Netherlands and the United States as a brand marketing strategist for blue-chip companies. He is a leading strategist at the consulting firm Prophet. He has led award-winning international projects for clients including BT, Vodafone, Swiss Airlines, Guinness World Records, Philips and the LE Group. His extensive psychological and sociological knowledge have shaped corporate strategy and customer-focused propositions that increase revenue. This approach has proved equally effective for delivering internal brand campaigns that motivate and educate employees. Iain is a regular press commentator on strategic marketing and branding issues for The Economist, the BBC and numerous trade magazines. He is a frequent speaker on marketing, innovation and communications. He also occasionally lectures on the MBA courses at the London Business School (LBS). Iain is a Member of the Chartered Institute of Marketing (MCIM), a Member of the Marketing Society and a Fellow of the Royal Society of Arts (FRSA). Prophet is a strategic professional services firm committed to building and growing great brands and businesses. If you would like to hear more about how it can help your business, please contact Iain at [email protected]. ix This Page Intentionally Left Blank ACKNOWLEDGEMENTS The author would like to personally thank the following marke- teers, business owners, colleagues, clients and friends for their insightful ideas and for their constant encouragement: Liza Bingley, James Cockerille, Charles Colquhoun, David Cox, Richard Crighton, Alastair Kingsland, Graham Moore, Jeremy Myerson, Ian Woodhouse, Grant Usmar, Madelijne Vermeij. Thanks are also due to those who were kind enough to be inter- viewed for this project and are quoted in the text: Michael Abrahams, Abrahams Design Anneke Elwes, brand planner Gary Lockton, North Creative Consultancy Celia Lury, Goldsmiths College, University of London Will Maskell, PI3 Ltd Jane Merriman, William Grant & Sons Joanne Wallace, McVities Simon Waterfall, Poke Consultancy Professor James Woudhuysen Peter York, SRU Ltd Thanks to Victoria Groom at Kogan Page for those interesting lunchtime discussions and patient waiting for the final draft. Finally, many thanks to my family – Rob, Jan, Andrew and Peter – for all their care and encouragement. xi This Page Intentionally Left Blank INTRODUCTION The brand is one of the most valuable assets that any business possesses: • Branding provides the key communication with customers. • Branding creates critical differentiators in the marketplace. • Branding shapes internal company culture. • Branding leverages the intellectual assets of the business. • Branding generates increased business performance. Yet despite all these benefits, branding is still too often seen as a mere tactical tool rather than a business strategy. There is a huge financial potential for businesses that can maximize their brand equity. The excellent Return On Investment (ROI) of any branding programme can be seen with brands such as Orange (mobile phones), Unilever, Jaguar and Disney. Brand creation and brand management are essential for success and profitability in the business process. This book provides a holistic overview of the essential leading methods of brand analysis, brand creation, brand development and brand management. It is a hands-on guide for marketing and business professionals and those in higher education. Readers gain an insight into all the components of brand manage- ment including a wide range of business models and techniques that help to build strong and effective brands in the marketplace. Illustrated with specific examples, it provides a toolbox of proven techniques on how to analyse and choose the most successful combi- nation of brand dimensions on which to develop brands. It is a com- panion resource for the management of all brand issues. The terms ‘brand’ and ‘branding’ have become over-used during the last few years and have become devalued as a result. This book 1 The essential brand book revalues all the management concepts of branding by dealing with each in a distinctive chapter. The book therefore covers all the essential components of brand management but ensures that they are described and illustrated with clarity. Who the book is aimed at This book is aimed at everyone who comes into daily contact with brands, products and services. It is for use by those within industry and business responsible for the marketing, visual communication and management of brands and their expression through all media types. The CEO is the ultimate brand manager but everyone in the organization is responsible for delivering the brand vision. The task of managing brands is as important to niche entrepreneurs as it is for small business owners and large corporate businesses. The increasing professionalization of charity work means that it is equally pertinent to non-profit organizations as those who are quoted on the stock markets around the world. Any group of people who provide a product or service to others need to communicate the availability and benefit of that proposition to all stakeholders. A strong brand acts as the source and the medium for that communication process. How to use the book The book is divided into four key components to make it easier to find the material you need. Each component is easy to locate by the titles at the top of the pages. Each chapter within the four compo- nents relates strongly to each other but is also interrelated to all the other chapters. Those with less knowledge may wish to start at the beginning, while those more advanced will proceed directly to the relevant chapter first. The glossary at the end of the book will help to define all the terms that are used in the book and the industry. Brand communication Chapter 1 introduces the concepts of brands and brand manage- ment and explains why they are so important for a business. It demonstrates the connection between the current business model 2 Introduction of a market and an approach to brand management. This chapter illustrates the role of a brand as the key communication tool between the business and all its stakeholders. Chapter 2 describes the methods of brand management in the context