The Hindu Business Line : Brands seen as baskets of values

How does one increase the financial value of brands? Kartikeya Kompella has the answer, in `Building Brands Building Meaning,' from Viva (www.vivagroupindia.com) . "Strong brands derive more than just the business benefits of higher sales, but also a lot of hidden savings through employee and associate loyalty, better quality manpower availability, trade support and so on," states the preface, highlighting the importance of brands.

`Intent' finds early place in the contents, for it's the raison d'etre of brands." Intent directs the energies of the brand in the direction of the brand promise. It ensures that all systems and processes are directed towards making the brand perform what it promises."

Next comes `differentiation,' the Holy Grail, because "it is impossible for a brand that is unnoticed to go and build a relationship with its prospects and customers." So, be different and build a place in the customers' minds; but what's more important is `to remain different.'

What about `values'? They enhance brand's meaning, reminds the author. "Customers look at brands as baskets of values." Primary values are what drive the relationship, such as `safety' in Volvo. "Fun, youth, wanting more are primary values depicted by Pepsi," while `fewer calories than other colas' may be a secondary value.

Who are the greatest allies of brand? The endorser or the ambassador? Neither, it's the people in the organisation, because they are the ones who run brands. That's why successful brands focus on people by having teams `with a common attitude and sense of mission.' According to a study cited in the book, "25 per cent of a company's employees stay on because they relate to the brand mission."

In a chapter titled `Staying in Shape' the author narrates the tale of Harley Davidson. In the 1980s the company was bankrupt and was up for sale. No one wanted to buy it. Thirteen managers of the company bought it, revived the brand, and restored its reputation. In contrast, a demotivated team can send out "a lot of wrong signals to external audiences."

Have you ever thought of documenting the heritage of your brand? Kompella says that such an effort can tell you things that consumer research may not. "A brand's heritage could reveal some of the brand's intrinsic strengths, and this knowledge could be reassuring and morale boosting during lean times when the brand is under attack."

Every experience counts, insists the author. For instance, "WorldSpace's customers find the clarity of reception and variety of content so rich that not only are they loyal to the brand, but they are strong advocates too." You can even `pre-sell' your offerings `to make the consumer look forward to an enjoyable experience.'

Audit the experiences at each touchpoint, advises Kompella. Create more touchpoints if cost-benefit analysis works in favour of such a move. Don't forget to identify key experience drivers, and support the same organisationally.

Watch out for arrogance. It's one of the most disadvantageous traits that a brand can develop, cautions the author. "Arrogance often develops when the brand's management feels that either the brand does not have significant competition, or the brand's equity is so overwhelming that nothing will shake the brand's position of strength."

You may find such arrogant companies bullying the employees, "by using a combination of high salaries and job insecurity to push them as far as possible." What's the result? Erosion of brand value. Moral, therefore, is not to take brand equity for granted.

Insightful read.

http://BookPeek.blogspot.com

D. Murali