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The Sun King gets a licence to gild his ... Gold plummets as Switzerland jumps ship... Stals comes out smelling of rose... Stealing the show with icons of the mode... British investors give SA airship compan... |
Stealing the show with icons of the modern age
Brands seek to capture the hearts and minds of consumers and are central to the concept of the global company, writes JOHN WILLMAN
But global brands are about much more than logos and advertising campaigns, according to Brian Boylan, chairman of Wolff Olins, a consultancy specialising in branding and corporate identity. "There are too many businesses out there doing the same things," he says. "Global branding is a way of saying your company makes a difference, which moves you up the pecking order." Companies such as Coca-Cola, McDonald's, Walt Disney, Sony, Body-Shop and Mercedes-Benz have become world leaders through the strength of their brands. Others such as PepsiCo, Danone and Nestlé - powerful corporate brands in their own right - have done the same by branding particular products. Doritos tortilla chips, Evian mineral water and Nescafé instant coffee are household names. Strong brands bring other advantages, not least in cost -savings. A well-established brand name can broaden a company's ambition, allowing it to introduce new products or move into new markets. Walt Disney has stretched its brand well beyond films to cover books, clothing, toys and games. "People don't have to pay 30% more for a T-shirt from Disney," says Raymond Perrier, brand-evaluation director for Interbrand, the leading brand consultancy. "But they do so because the brand means more to them than just a T-shirt - it embodies the Disney magic." Most of the world's famous brands are in consumer goods and services. But branding is becoming important in supplying businesses, as corporate customers seek the assurance of a global brand for their IT services, audit and legal services. "With more choices between suppliers, business customers are looking for consistency and trust," says Perrier. "IBM fell into the trap of just selling computers. Now it realises it needs an ongoing relationship of trust with its customers which a single global brand can help build." Most large companies with diverse consumer products follow diverse branding strategies. Nestlé for example, has multiple layers of branding. Its dried milk is always sold under the company name and Nescafé is clearly of Nestlé provenance. But the group's Buitoni Italian food products make no mention of the ultimate owner. "Consumers outside Italy see it as a quintessentially Italian family brand," says Interbrand's Perrier. "They don't want to be reminded that it belongs to a giant Swiss conglomerate." Even in less diverse businesses where global branding makes sense, attention must be paid to local preferences. McDonald's, selling a US fast-food concept with an almost chilling consistency, serves wine and salads with its burgers in France. For the Indian market, where beef products are taboo, it created a mutton burger: the Maharaja Mac. But products must be differentiated still further, says Richard Block, global planning director for J Walter Thompson the advertising agency owned by WPP. "The world is going two ways. Technology and business are pushing globalisation, but at the same time the world is falling apart into smaller communities." Young urban professionals in London have more in common with their contemporaries in Singapore than with middle-class families in Berkshire. The latter have more in common with people living in the suburbs of Sydney. The challenge for marketing professionals is to link their product to individual needs. One way is product proliferation - so that Coco-Cola becomes Classic Coke, Diet Coke and Cherry Cola. Coca-Cola remains the brand, but is delivered by a variety of means. But establishing just what the big idea is needs to be taken seriously at the highest level in the company. The companies which have managed their brands best are those led by chief executives who take the keenest interest in branding: Roberto Goizueta at Coca-Cola, Michael Eisner at Disney and Lou Gerstner at IBM. "Brands are valuable assets which have a massive impact on the way you run your business," says Perrier. "No one would hand a $20-billion asset to a 23-year-old in the marketing department - but many companies that aspire to global reach do just that with their brands." - Financial Times
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