Brand Architecture The Role of Branding and Corporate Identity. What is a Brand? Visual, emotional, rational and cultural image that you associate with a company or product. When you think Nike, you might think of Michael Jordan or "Just Do It." When you think IBM, you might think "Big Blue." The fact that you remember the brand name and have positive associations with that brand makes your product selection easier and enhances the value and satisfaction you get from the product. While Brand X cola or even Pepsi-Cola may win blind taste tests over Coca Cola, the fact is that more people buy Coke than any other cola and, most importantly, they enjoy the experience of buying and drinking Coca Cola. The fond memories of childhood and refreshment that people have when they drink Coke is often more important than a little bit better cola taste. It is this emotional relationship with brands that make them so powerful. Today.. Examining how Brands are ‘designed to compete Summary. What makes up a Brand ID? A brand can instantly communicate a lot of information – especially if you have had personal experiences related to the brand. A brand identity includes names, logos, brand associations, and brand personality. A good brand evokes a positive association. A positioning statement tells you, in a sentence, what business the company is in! What makes up a Brand ID? Imagine you're in an elevator and you have 30 seconds to answer the question, "What business are you in?" Brand personality adds emotion, culture and myth to the brand identity In this case - by the use of a famous spokesperson (David Beckham), a character (Scooby-Doo), an animal (Dog’s play ball) or an image (In this case the Addidas brand). What makes up a Brand ID? Brand associations are the attributes that customers think of when they hear or see the brand name. McDonalds television commercials are a series of one brand association after another, starting with the yellow arches in the lower right corner of the screen and following with associations of Big Mac, Ronald McDonald, kids, Happy Meal, consistent food quality, etc. But have recently been changing in response to poor associations – more about that later. How do you determine Brand ID? A ‘Brand’ has been called the most powerful idea in the commercial world, yet few companies consciously create a brand identity. Develop an unique visual identity that reflects what your company stands for, then pound that message home in every ad, in every news release, in communications with employees and in every sales call and media interview. By consistent repetition of the most persuasive selling messages, customers will think of you and buy from you when they are deciding on whether to buy from you or your competitor. What’s in a brand.. Brands use powerful tools to elicit emotional responses Colours and images are obvious, but what a brand creates is an attitude and this is the most important tool – like Nike’s current adverts (insert advert) Attitude is often associated with strong recognition and strong memory.. When you laugh, cry, get annoyed... ‘oh that bloody annoying advert!’ U.K. Anti-Piracy Advert - Parody of this annoying trailer! Its all about experience! Nike associating with competitive man vs. Woman idea! Annoying Video! Gimmicks work too! Brand Engagement Brand engagement between a brand and its consumers/potential consumers is a key objective of a brand marketing effort. In general, the ways a brand connects to its consumer is via a range of "touchpoints“, that is; a sequence or list of potential ways the brand makes contact with the individual. Examples include retail environments, advertising, word of mouth, online, and the product/service itself. Famous Brands.. Let’s Have a Look! Coke has invested in Diet Coke advertising as it hasn’t sold as well. McDonalds Proof that impressions last! McDonalds have had huge problems in terms of their brand and associated emotions and experiences. What else has happened? How have McDonalds reacted? McDonald’s Health/Quality of food, localised sourcing low fat/salt etc – the predominant message in all recent ads.. McDonald’s Strategic relationships – unpopular products, promoted by price. What hasn’t helped Powerful influences.. Controlling societal attitudes. Powerful.. Influencing.. But being powerful and ethical.. Skoda Bouncing back and beginning to obtain a good reputation from old brand associations! Famous Brands.. 1. 2. 3. Coca-Cola is the biggest global brand, worth $72.5billion Microsoft is the second largest global brand, worth $70.2billion IBM is the third biggest global brand, worth $53.2billion Relationship Marketing.. Companies are interested in having a solid customer base that prefer their products. They use their brand reputation to do this – brand association. This is called relationship marketing and involves the creating, maintaining and enhancement of customer relationships for mutual benefit. Lots of things influence us.. Customer.. Service Quality User Experience Communication Maintenance Cost – perceived value Reputation.. Company.. Initial and repeat sales. Repeat sales, higher profits. Repeat Sales - feedback Larger customer base. Linked to service- feedback Good rep, higher price. PEST considerations.. Become better at giving customers what they want! Designing your image The first thing to remember is that if your business already exists then so does your company image. The impression that you and your staff have left with customers, suppliers and employees has already created it for you. This image is both visual and nonvisual. The first point of contact with your company your reception, receptionist, your shop or how you answer the phone - can formulate an image of your company in a customer's mind. It's often the visual image that determines the first impression others have of the company. You can positively influence others through effective design of your logo how it is developed in branding, and how it is applied to packaging, advertising, brochures, newsletters, and stationery. Designing your image Successful enterprises manage their company image very closely and benefit from the impact of this positive image in many areas, such as recruitment and sales. You can use design to improve your business through the products and services you offer, and you can double its effectiveness by planning for and using design strategically. By thinking of the big design picture, rather than focussing on one single product or service, you can link together all of the parts of your company that benefit from design and create a powerful business response that is irresistible to your customers. Remember Apple last week – fantastic lifestyle brand and coherent design strategy! Designing your image The marketing of your new product/service must communicate its benefits to your target market and this inevitably leads back to the design of consistent communication materials. The benefits that you wish to draw attention to could be related to the image rather than the function of your product/service, and may rely heavily on the successful communication of your brand values. Lets have a look at some examples of how companies use literature to give you the right impression… Designing your image A brand presents and represents the personality, values and culture of an organisation to all its audiences, both internal (its managers and staff) and external (its customers, suppliers and the public). A brand represents all of you, in the sense that it stands for what you do as a company, who you are, and the principles that you stand for. When people see your brand, they know what to expect from it - and from you as a company. The Body Shop Very strong brand associated with specific and popular environmental and ethical considerations. Excellent brand associations, and even setup a charitable foundation based on the product implications.. Fair trade etc. http://www.thebodyshopfoundation.org/ The Body Shop.. Designing your image.. You must be clear on what it is that you need to do to develop your company, so that it embodies these brand values. But remember that in the future, as your business changes, so will your brand. This process must then be managed properly. In the end, this is what will give your company the chance to compete, on the basis of what makes it special. You can use design to improve your business through the products and services you offer, and you can double its effectiveness by planning for and using design strategically. IMC.. Integrated Marketing Communications.. During the 1980’s companies began to see the need for better planning of promotion as more and more media developed: E.g.. Internet, large screen TV adverts other technological advances and ever diversifying literature. IMC.. They decided to begin a process called integrated marketing communications that involves co-ordinating the various promotional elements and other marketing activities that communicate with a firms customer’s. IMC Definition.. A concept of marketing communications planning that recognises the added value of a comprehensive plan that evaluates the strategic roles of a variety of communication disciplines – e.g.. General advertising, sales promotion and PR and combines them to provide clarity, consistency and maximum communications impact.. So what does that do then? Well by co-ordinating all the companies promotional activity you get a unified image, be it local or worldwide. Your message have a common theme and positioning. Provides clear communication channels Brings together elements that used to be separate functions. Allows for improved relationships with customers, suppliers, investors etc. ‘like talking to one person instead of a audience’ Areas of promotion: Advertising Packaging Personal selling Sponsorship Public Relations Exhibitions Sales promotion Advertising Newspapers, relevant magazines or journals. Television, Cinema, Product Placement, Internet, Telesales, radio, SMS. Bill board, Large screen, posters, bus stops, taxi’s buses, exhibitions, packaging. PR events, sponsorship, merchandising and endorsement. Packaging: One of the lowest cost and highest leverage areas in marketing. Operates at point of purchase.. Highly effective. ‘silent salesman’ Four main purposes, protect contents, consumer convenience, trade appeal, consumer appeal. Packaging.. Adds value again, just like a brand.. E.g. Merchandising – E.g. Friends Coffee Mugs, clocks etc. Characterising product ranges – e.g. Heinz Secondary use – Coffee Jars, McDonalds Happy Meal Cartons, PG Tips ‘Pyramid’ Design. Sponsorship.. Cornhill insurance cricket test series.. Vodaphone and Manchester United. Inspiring customers through personal interests. Boosting trade at major events. Exhibiting and looking after high level customers. More complex.. Managing Brand Association Spending.. How much do companies spend on promotion? Spending 2001.. Rank Advertiser Ad spending ($m) 1 General Motors 3,374 2 Proctor and Gamble 2,540 3 Ford Motor Co. 2,408 4 Pepsi Co. 2,210 5 Pfizer 2,189 6 DaimlerChrysler 1,985 7 AOL Time Warner 1,885 8 Phillip Morris Cos. 1,815 9 Walt Disney 1,757 Tannoy: A Case Study Glasgow based company Tannoy, used design to re-connect with their customers. Tannoy were losing ground to the rivals and to compete the company needed to upgrade their brand identity and its associated attributes. Tannoy: A Case Study Tannoy’s products were still selling and their acoustic technology was highly regarded – but the brand appeared ‘dated’. Top of the range products cost between £30-40k a pair. But visual ‘banality’ remained a problem as perceived by the marketplace. Tannoy: A Case Study By the mid 1990’s – several of Tannoy’s competitors began to use product design and update their brand identities. 1998 Tannoy were forced to invest in design to remain in business. Tannoy: A Case Study The arrival of Dutch managing Director Henry Groenendijk changed the company’s outlook on and the way they use design. Developed an in-house product design facility to use design strategically. Moving away from technology led company. Tannoy: A Case Study Had to tread a delicate path, main bulk of their existing customers were quite conservative - so product design had to be incremental as opposed to radical, and stylistic. The New Dimension range was launched in Autumn 2000 (price range was between 2-6k). Mid market core of Tannoy. Tannoy: A Case Study New Dimension range placed greater emphasis on design detailing. “…for example, we’ve rationalised the form of the connector block at the back of the speaker into a five pointed star form which works really well as a cable management system.” Tannoy: A Case Study The character of the products has slowly begun to evolve over the past 3 years – each range featuring little touches: materials and finishes; attention to detail. All reinforce the character of the brand as well as increasing the products’ appeal. Now very updated! Tannoy: A Case Study Through design sales have been steady, but the new product ranges have been achieving quiet acclaim. “…People really notice the look of Tannoy products now; that’s far better than having products which are viewed with indifference.” Tannoy: A Case Study Summary A brand is a visual, rational and cultural image that you associate with a company or product. A brand can instantly communicate a lot of information about a business and must be carefully managed. Companies that effectively use brands are generally more successful then those that don’t! Brands are, physiologically, very powerful and can be used to influence or control society. A combination of design led activity, such as product and graphic design and careful marketing and brand management, can make for a very successful company – or revive one which is failing.