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were originally developed as labels of ownership:
name, term, design, symbol. However, today it is what
they do for people that matters much more, how they
reflect and engage them, how they define their aspiration
and enable them to do more. Powerful brands can drive
success in competitive and financial markets, and
indeed become the organisation’s most valuable
great brand is one you want to live your life by,
one you trust and hang on to while everything around
you is changing, one that articulates the type of
person you are or want to be, one that enables you
to do what you couldn’t otherwise achieve. Brand
type is divided into four categories.
* ‘Being’ brands: emotionally confirms
you are somebody
* ‘Becoming’ brands: aspirationally defines
what you want to be
* ‘Doing’ brands: functionally enables
you to do something
* ‘Belonging’ brands: connects you with
other people like you
along with many modern-language lexemes such as English
burn and brandy, German brennen, and those in many
European languages based on the root therm-, are all
ultimately related to the ideas of warmth, heat, burning,
etc., and descend from an Indo-European root that
has been reconstructed as /gwher/.
the Old English language, the noun brond is first
attested from the epic poem Beowulf (circa 1000) meaning
"destruction by fire."
the ages, brand had been used in figurative and transferred
senses to mean "a person delivered from imminent
danger," "the torches of Cupid and the Furies,"
and "Jove's or God's or Phoebus' brand."
had also been figuratively applied since the late
16th century to criminalize people (as in disgrace,
a stigma, or mark of infamy) and in the sense of firebrand
since the 17th century.
idea of marking things, people, or animals by burning
identifying marks onto them is clearly an ancient
described as a physical impression of ownership on
livestock by way of hot-iron branding since the mid-17th
century, modern senses of brand as used in business
began to arise in the early 19th century when the
term was figuratively extended to trademarks and logos.
During this time, brands were imprinted on casks of
wine, timber, and other goods except textile fabrics.
the 19th century in primarily the United States, hot
irons used for marking livestock and cauterizing wounds
were called brands, and later cattle and other livestock
were also referred to as brands. A brand blotter was
a thief who stole, and removed marks of ownership
the early 17th century in biology, a brand had been
called "a species of blight in plants, causing
the leaves and young shoots to look [burnt]."
The word was also used to refer to swords and other
blades from the 11th to 19th centuries.
the field of marketing, brands originated in the nineteenth
century with the advent of packaged goods. According
to Unilever records, Pears Soap was the world's first
registered commercial brand. Industrialization moved
the production of household items, such as soap, from
local communities to centralized factories. When shipping
their items, the factories would brand their logotype
insignia on the shipping barrels. These factories,
generating mass-produced goods, needed to sell their
products to a wider range of customers, to a customer
base familiar only with local goods, and it turned
out that a generic package of soap had difficulty
competing with familiar, local products.
fortunes of many of that era's brands, such as Uncle
Ben's rice and Kellogg's breakfast cereal, illustrate
the problem. The packaged goods manufacturers needed
to convince buyers that they could trust in the non-local,
factory product. Campbell soup, Coca-Cola, Juicy Fruit
gum, Aunt Jemima, and Quaker Oats, were the first
American products to be branded to increase the customer's
familiarity with the products.
1900, James Walter Thompson published a house advert
explaining trademark advertising, in an early commercial
description of what now is known as 'branding'. Soon,
companies adopted slogans, mascots, and jingles that
were heard on radio and seen in early television.
By the 1940s, Mildred Pierce manufacturers recognized
how customers were developing relationships with their
brands in the social, psychological, and anthropological
senses. From that, manufacturers quickly learned to
associate other kinds of brand values, such as youthfulness,
fun, and luxury, with their products. Thus began the
practice of 'branding', wherein the customer buys
the brand rather than the product. This trend arose
in the 1980s 'brand equity mania'. In 1988, Phillip
Morris bought Kraft for six times its paper worth.
It is believed the purchase was made because the Phillip
Morris company actually wanted the Kraft brand rather
than the company and its products.
2, 1993, labelled Marlboro Friday, is described by
Klein (2000) as the death day of the brand. On that
day, Phillip Morris declared a 20 per cent price cut
of Marlboro cigarettes in order to compete with cheaper
price cigarettes. At the time, Marlboro cigarettes
were notorious for their heavy advertising campaigns,
and nuanced brand image. On that day, the prices of
many branded companies Wall street stocks fell: Heinz,
Coca Cola, Quaker Oats, PepsiCo;
seemingly the signal of the beginning 'brand blindness'(Klein
engaged in branding seek to develop or align the expectations
behind the brand experience, creating the impression
that a brand associated with a product or service
has certain qualities or characteristics that make
it special or unique. A brand image may be developed
by attributing a "personality" to or associating
an "image" with a product or service, whereby
the personality or image is "branded" into
the consciousness of consumers. A brand is therefore
one of the most valuable elements in an advertising
theme. The art of creating and maintaining a brand
is called brand management.
brand which is widely known in the marketplace acquires
brand recognition. When brand recognition builds up
to a point where a brand enjoys a critical mass of
positive sentiment in the marketplace, it is said
to have achieved brand franchise. One goal in brand
recognition is the identification of a brand without
the name of the company present. For example, Disney
has been successful at branding with their particular
script font (originally created for Walt Disney's
"signature" logo), which it used in the
logo for go.com.
refers to the unique attributes, essence, purpose,
or profile of a brand and, therefore, a company. The
term is borrowed from the biological DNA, the molecular
"blueprint" or genetic profile of an organism
which determines its unique characteristics.
act of associating a product or service with a brand
has become part of pop culture. Most products have
some kind of brand identity, from common table salt
to designer clothes. In non-commercial contexts, the
marketing of entities which supply ideas or promises
rather than product and services (e.g. political parties
or religious organizations) may also be known as "branding".
equity measures the total value of the brand to the
brand owner, and reflects the extent of brand franchise.
The term brand name is often used interchangeably
with "brand", although it is more correctly
used to specifically denote written or spoken linguistic
elements of a brand. In this context a "brand
name" constitutes a type of trademark, if the
brand name exclusively identifies the brand owner
as the commercial source of products or services.
A brand owner may seek to protect proprietary rights
in relation to a brand name through trademark registration.
branding is the choice to represent a feeling, which
is not necessarily connected with the product or consumption
of the product at all. Marketing labeled as attitude
branding includes that of Apple, Nike, Safeway, Starbucks,
and The Body Shop.
economic terms the "brand" is a device to
create a monopoly—or at least some form of "imperfect
competition"—so that the brand owner can
obtain some of the benefits which accrue to a monopoly,
particularly those related to decreased price competition.
For example, the Coca Cola corporation can never have
a monopoly on cola-flavored soda pop, but it can have
a monopoly on its own brand of cola-flavored soda
pop. In this context, most "branding" is
established by promotional means. There is also a
legal dimension, for it is essential that the brand
names and trademarks are protected by all means available.
The monopoly may also be extended, or even created,
by patent, copyright, trade secret (e.g. secret recipe),
and other sui generis intellectual property regimes
(e.g.: Plant Varieties Act, Design Act).
all these contexts, retailers' "own label"
brands can be just as powerful. The "brand",
whatever its derivation, is a very important investment
for any organization. RHM (Rank Hovis McDougall),
for example, have valued their international brands
at anything up to twenty times their annual earnings.
Often, especially in the industrial sector, it is
just the company's name which is promoted (leading
to one of the most powerful statements of "branding";
the saying, before the company's downgrading, "No-one
ever got fired for buying IBM").
existing strong brand name can be used as a vehicle
for new or modified products; for example, many fashion
and designer companies extended brands into fragrances,
shoes and accessories, home textile, home decor, luggage,
(sun-) glasses, furniture, hotels, etc. Mars extended
its brand to ice cream, Caterpillar to shoes and watches,
Michelin to a restaurant guide, Adidas
and Puma to personal hygiene.
is a difference between brand extension and line extension.
When Coca-Cola launched "Diet Coke" and
"Cherry Coke" they stayed within the originating
product category: non-alcoholic carbonated beverages.
Procter & Gamble (P&G) did likewise extending
its strong lines (such as Fairy Soap) into neighboring
products (Fairy Liquid and Fairy Automatic) within
the same category, dish washing detergents. These
are examples of line, not brand extensions.
a market fragmented with many brands, a supplier can
choose to launch new brands apparently competing with
its own, extant strong brand (and often with an identical
product), simply to obtain a greater share of the
market that would go to minor brands. The rationale
is that having 3 out of 12 brands in such a market
will give garner a greater, overall share than having
1 out of 10 (even if much of the share of these new
brands is taken from the existing one). In its most
extreme manifestation, a supplier pioneering a new
market which it believes will be particularly attractive
may choose immediately to launch a second brand in
competition with its first, in order to pre-empt others
entering the market.
brand names naturally allow greater flexibility by
permitting a variety of different products, of differing
quality, to be sold without confusing the consumer's
perception of what business the company is in or diluting
higher quality products.
again, Procter & Gamble is a leading exponent
of this philosophy, running as many as ten detergent
brands in the US market. This also increases the total
number of "facings" it receives on supermarket
shelves. Sara Lee, on the other hand, uses it to keep
the very different parts of the business separate—from
Sara Lee cakes through Kiwi polishes to L'Eggs pantyhose.
In the hotel business, Marriott uses the name Fairfield
Inns for its budget chain (and Ramada uses Rodeway
for its own cheaper hotels).
is a particular problem of a "multibrand"
approach, in which the new brand takes business away
from an established one which the organization also
owns. This may be acceptable (indeed to be expected)
if there is a net gain overall. Alternatively, it
may be the price the organization is willing to pay
for shifting its position in the market; the new product
being one stage in this process.
& Fitch is a multi-brands company, rolling out
Lifestyle Brands and the phony competitor Hollister
Generic and private-label brands
the emergence of strong retailers, the "own brand",
the retailer's own branded product (or service), emerged
as a major factor in the marketplace. Where the retailer
has a particularly strong identity, such as, in the
UK, Marks & Spencer in clothing, this "own
brand" may be able to compete against even the
strongest brand leaders, and may dominate those markets
which are not otherwise strongly branded. There was
a fear that such "own brands" might displace
all other brands (as they have done in Marks &
Spencer outlets), but the evidence is that—at
least in supermarkets and department stores—consumers
generally expect to see on display something over
50 per cent (and preferably over 60 per cent) of brands
other than those of the retailer. Indeed, even the
strongest own brands in the United Kingdom rarely
achieve better than third place in the overall market.
In the US, Target has "own" brands of "Market
Pantry" and "Archer Farms" each with
unique packaging and placement.
strength of the retailers has, perhaps, been seen
more in the pressure they have been able to exert
on the owners of even the strongest brands (and in
particular on the owners of the weaker third and fourth
brands). Relationship marketing has been applied most
often to meet the wishes of such large customers (and
indeed has been demanded by them as recognition of
their buying power). Some of the more active marketers
have now also switched to 'category marketing'—in
which they take into account all the needs of a retailer
in a product category rather than more narrowly focusing
on their own brand.
the same time, generic (that is, effectively unbranded
goods) have also emerged. These made a positive virtue
of saving the cost of almost all marketing activities;
emphasizing the lack of advertising and, especially,
the plain packaging (which was, however, often simply
a vehicle for a different kind of image). It would
appear that the penetration of such generic products
peaked in the early 1980s, and most consumers still
seem to be looking for the qualities that the conventional
brand provides. (Credit: