How to Establish Brand Values Establishing the values your company believes in is essential in building an authentic, trustworthy brand.

Your values should reinforce the vision of the business. Good values create an enduring belief that will guide your decision making process in every part of your business that impacts on your brand. When consumers understand the values of your brand they will be influenced to interact with your business in a certain way. Writing the company values down is one thing, living by them is what makes the difference. Staff should be encouraged to read and understand the company values, which will help guide their conduct and create consistency within the brand. Customers choose brands with values that relate to what they value. Consider these guidelines as to what your values should include: Originality Is your business unique in the eyes of your staff and consumers? Inspirational Does your business inspire employees and customers to interact with the brand in a certain way? Commitment Does your business have the courage to stay true to its values? Consumers buy brands with values that are similar to theirs. Employees like to work in companies that have values that are similar to their own value systems. Brai nstorm your business values then refine them as much as possible so they are clear and direct. Three values are usually ideal; for some businesses it may be more. Too many values makes it hard for employees to remember and put into practice.

10 Ways to Create Brand Value Consumers love brands because they offer an extra valuethat is, one in addition to the core product or service. That value becomes the major motivation for consumers to buy or use the product. So what's the secret to a successful brand?

three common approaches to brand development used by many marketerswith help from their advertising agencies, consultants, branding companies and design firms. Although widespread, those approaches are not well founded theoretically; and, in my view, they have not yet yielded truly strong brands. The three approaches are the "decoration" approach, the "gluing" approach, and the "Golem" approach (of Prague, London or New York). The decoration approach sees differentiation as a matter of appearance. "We branded ourselves," say the practitioners, meaning that a special name, logo and look have been created in a seemingly
Akramindia@live.in Page 1

sophisticated development process. "Since they look different from our competitors', consumers conceive of us as different." This approach is naive. For more credibility, it is usually spliced with elements from the other two approaches. The "gluing" approach attaches so-called brand values and other desirable associations to the name, the logo and the look from the previous approach. The rationale goes like this: the consumer sees the values she or he holds dear portrayed in our messages and immediately feels that this is a brand that suits him or her. Enthusiasts of the "emotional branding" approach claim that they attach emotions to the brand in virtually the same manner (e.g., stir or model these target emotions in advertising). In the third approach, the "Golem" approach, marketers seek to create a human-like entity with personality (even charisma) that is capable of having a relationship with the consumers. Emotions cannot be glued to them. They arouse emotions when they are perceived as a source of something beneficial. The positive emotions are direct outcomes of these anticipations. Their various symbolizations (name, logo, font, e mblem and so on) have little impact on their own; their importance is mainly as identifiers of sources of already attributed and anticipated benefits. The act of branding has 10 different meanings, which translate into 10 different ways to create instrumentality or usefulness beyond the tangible benefits of a product/service: 1. Creating a Conceived Linkage to a Tangible Benefit The most basic level of branding is creating a conceived linkage between the brand name and other identifiers and a tangible benefit (a result in the physical world or an experience). That benefit is provided by the product itself or any component of the marketing mix. Don't dismiss this basic tenet. Successful brands, like Pantene shampoo (which promises to amend the six symptoms of unhealthy hair), work at this level. The added value here is minimal, but important. 2. Forming a Mental Context A "mental context" is a concept or an organizing principle that allows the consumer to connect unrelated facts (such as the various marketing activities of a company) by guiding intent or by some other common factor. In these cases, the main benefit of the brand to its customers originates in the mental context. For example: should you stumble into a hotel like the "Hudson" or the "Royalton" in the heart of Manhattan, you are promised pleasure on different levels, but if you know you're in a "Boutique Hotel" your stay becomes a very different experience altogether. 3. Directing an Experience This is essentially a hypnotic effect, in some cases related to placebo. The branding here is the creation of an expectation that allows an experience richer than what the product alone can offer. For instance, Red Bull will make the consumer feel a wave of energy beyond the physical effect of the drink. 4. Creating a Means of Self-Presentation Here the branding creates a symbol with a meaning that is well known to everybody in a relevant group. It enables the consumer to characterize himself and is used by him for inner communication (to gather motivation for an effort or to strengthen self-image), for interpersonal communication (to create a certain impression) and for public communication (to signal status or affiliation). 5. Creating a Means to Deliver a Message The branding role in this approach is to create a symbol of another kind, its meaning widely known as well. That kind of symbol enables the consumer to make a very specific statement and/or express a very specific emotion.In September 2003, De Beers started creating a new means to deliver a message, this time targeted at women: the right-hand Ring as a symbol of independence (as
Akramindia@live.in Page 2

apposed to the ring on the left hand, which is often a symbol of commitment). 6. Building a Social/Cultural Authority The next branding approach is the creation of an authority that the consumers can use as a guide. That guide helps them to understand what's happening around them and informs them which behavioral ways are normative, what will make them happier and so on. Apple proclaimed itself to be such an authority when it offered the personal computer not only as a working tool but also as a device for self-expression and creativity. 7. Creating 'a Long Hand' The branding creates means for the consumer and empowering him or her to act for noble objectives and high purposes that she can't achieve by herself. The Body Shop made buying a way for contributing to the preservation of the environment and helping people in need all around the globe. 8. Creating an Alter Ego The brand is a way for the consumer to behave (at least on a fantasy level) in a manner he would like to but doesn't dare, or isn't willing to pay the price for. The provocation of the fashion brand Diesel is made as if "in the name of" the brand customers. They can feel as if they are provocative themselves every time the brand launches one of its outrageous advertising campaigns. 9. Building an Emotional Gym Opting for our civilized and protected lifestyle, we compromise a lot of our possibilities as humans. We go to the gym to prevent the degeneration of our bodies, which because of our lifestyles don't get to face the challenges they are otherwise capable of confronting. Similarly, we watch movies to exercise emotional skills that aren't legitimate or acceptable in our lifestyles. Brands, like Sicily from Dolce & Gabbana, allow us too to experience such emotional possibilities. 10. Facilitating Fantasies Similar to the previous one, this branding approach helps the consumer to fantasize an alternative reality. Consumers fantasize about irresistible sex appeal, omnipotence and dominance, importance, success, fatal love, murder and so on. The brand Timberland was designed as a way for consumers to fantasize about courageous adventures against the forces of nature.

Akramindia@live.in

Page 3

The Six Forces of Brand Value

Michael Porters 5 Forces is an industry and market assessment framework first introduced in 1979 to help companies better understand the nature and extent of the competition arrayed against it. The problem it tries to solve is competition how to manage it, how to deflect it, where to fight it and where to walk away because as we know, the greater the competition, the more likely profit will be squeezed. But at the root, competition is ultimately based on value models. Without sustainable customer value there can be no sustainable shareholder value. To get us there we first have to come to accept that a consumers perception of a brands value is shaped by up to six forces of value. Each (I.S.P.I.E.D) dimension works in concert with the others strategically and tactically to help support the price zone the brand seeks to compete in. After we have neatly positioned our brand on some graph, the how and how often we communicate the brands value proposition (as well as its price proposition) will define the way the brands value is judged. CRM offer push efficiency driven by gains in data capture, pattern extraction and the ease by which offers can be pushed out puts us at one of the most perplexing cross roads. Therefore one of the most critical (and telling) questions you can ask is when your volume is down, how are you going to stimulate sales. That answer will define your brands reality more clearly than anything else you say or do.

Akramindia@live.in

Page 4

The Six Forces of Brand Value Iconic value is simply how desired the brand is. Not all brands can have iconic value; some categories simply do not lend t hemselves to this as they arent on the leading, creative or aspirational edge. But just to prove that one can never say never seemingly non-descript un-brands (Converse canvas running shoe, DocMartins) succeed by rocketing into the iconosphere. Creating and sustaining a brands iconic value is typically accomplished in two steps. The first, a key brand dimension is selected where its hoped that it can be elevated above the category to achieve some level of brand envy among a particular brand constituency. The second, harder step involves creating an aspirational loop that reinforces the brands rise in popular desire, yet avoids crossing the line and becoming common. This can be managed by evoking fresh imagery (preferably some lifestyle affirmation by a role model) to reinforce the brands dynamic and elevated leading edge status. But the true test of sustaining iconic value comes with a strict adherence to pricing integrity and retail channel distribution. The cult of desired belonging will tolerate some level of inevitable wannabe-ism from the onlooker fringe, but the brand must remain true to its economic pact else it be seen as having sold out its original cachet and become less valued. Frequently a brands iconic value will be intertwined and reinforced by its Design value (see below) since both are critical to defining the brand as a sought after category trailblazer. Therein lies the truth of iconic brands, they are the trailblazers, they push the envelope, take the risks, define the category which the rest then scramble to copy. The challenge is finding a group that will support the brand and help evangelize it to its maximum profit potential. Societal value encompass the benefits the brand enables/supports in the community For some consumers, the allure of self-centric gratification evolves to a higher level to include the world/community around them. For these people the brands societal value will define a deeper evolution in the relationship and responsibilities consumers and organizations come to expect from each other. For example, Edelmanns annual global study of good works reveals that 76% of consumers like to buy from brands that make a donation to worthy causes and also that when choosing between two brands of a similar quality and price, a social purpose has the greatest impact on consumer decisions (42%) ahead of design/innovation (30%) and brand loyalty (27%). While these are reported intentions and not necessarily behavioral actions, clearly there is a substantial core belief among consumers that the economic value they bestow upon brands comes with a required reciprocity in good corporate citizenship. Enlightened corporations have long viewed this as an inherent responsibility separate from any payback expectations, but indeed an ROI of GOOD is emerging enabling brands to craft a benevolence program that has a calculated strategic competitive advantage. Whatever the motivation moral or mindful, consumers are driving the change and placing an increasing importance on the societal value the brand supports. Failure to acknowledge and accommodate this will likely decrease brand value and increase brand risk over time. R eliability value reflects the brands value of enhanced up-time and the mitigation of downtime. This force, refers to those aspects which can extend a brands utility, be it from ensuring performance reliability (and the fall back support) through to performance utility/efficiency. Its an exciting dimension that can either establish unshakable value, help the brand recover from a past indiscretion or if mismanaged, totally eviscerate the brand.
Akramindia@live.in Page 5

The spectre of downtime risk (insurance/warranty extensions/service plans) is typically seen by consumers as a way brands try to recoup profit margins given up in the heat of competition. And while everyone recognizes the utility of managing downside risk, the challenge lies in its pricing. Brands therefore need to come to better consumer pricing terms in light of the long-term (strategic) value of establishing a deeper level of customer engagement. (A combined model that allows for a retainer plus a pay-per-use might be worthy of consideration.) For example, in a past life as brand manager of Lysol, I had initiated work to complete a Lysol-centric cleaning tips knowledge base. The intent was to become the go to place for consumers with any cleaning problems. In so doing, it was envisaged, consumers would come to view Lysol as the cleaning expert, begin to use the product more frequently, with greater confidence and share their triumphs with friends and relatives, thereby extending the brands franchise-building impact. Integration value refers to how the brand contributes to creating greater value by being part of a larger system. The idea of ecosystems was first developed in the B2B/IT world where the host product is often a conduit for enhanced customization by external providers. The larger, more powerful the ecosystem, the stronger the brand becomes in the market place and the more entrenched with the customer/user. In B2C, a growing number of categories (hair care, personal care, fabric care, oral care) have thrived by creating system approaches where different tasks are solved by specific sub-products. The more interesting development will be when the integrated products unleash a catalysis t hat creates a total solution superior to that which can be achieved individually perhaps a development for the future. Food products face a more difficult challenge as they fight for share of stomach against a vastly wider competitive set. Hence they try to achieve integration value by taking ownership of specific recipes to gain prominence at key consumption moments. Those moments then become the value added link to the customer. For example Kraft Cheez Whiz gained ownership of microwave nacho cheese sauce which it rode to double digit gains for several years on the rising popularity of Mexican food. However given the long tail of recipes, the greater strategic imperative is taking ownership of a class of recipe ideas, to be the go to place for healthful menus, microwave ideas, kids food ideas, BBQ ideas, ideas.ideas.ideas Experiential value relates to how the brand enhances a shared experience This is a higher order value dimension that community -based brands (pop, beer, alcoholic beverages and digital products (cameras, videos, games)) tend to adopt. This value dimension refers not to the consumption of the brand, but in the community experience of that consumption reminiscent of Kodaks Share the Moment communications. Just as playing/competing with friends is often times more pleasurable than a solitary experience, this higher dimension allows the brand to establish superior value. The all important consumer connection is of primary importance, from which the brand consumption will naturally follow. Design consumption value links to how well the brand functions in solving the primary problem This dimension refers to both the design of the product, its attractiveness and ease of use as well as how the product itself delivers against the core problem. Not many companies give enough consideration to the design aspect of their brands. Design tends to be something that is done once for the product launch, and then refresh package graphics every 3 years or so, to get some new buzz in the market place. Other companies embrace design as a core brand differentiator and seek to evolve their design continuously. Apple is famous for its relentless pursuit of elegance and simplicity which gives it a tangible and substantial premium market
Akramindia@live.in Page 6

differentiation. A brand with a strong design ethic also tends to be more successful because it considers the consumers use of the brand from a holistic perspective, sometimes uncovering indirect value it can come to own. Tide Cold Water detergent for example, gains value by its ability to perform without the additional energy cost of warm water cleaning. (Tide wasnt the first, All Tempra Cheer owned that positioning in the 1960s) In fact P&G (The Game-Changer) feel so strongly about design and its power to help unleash disruptive changes that elevate brand value in the market place, they routinely conduct internal and external design reviews. Additionally regular ethnographic field studies are plumbed to ensure all sources of inspiration are tapped, that the brand promise is understood in its entirety and managed proactively. Conclusion: Years ago, Michael Porter introduced the 5 Forces model to help companies understand and manage the shaping of value in an industry, their competitors and themselves. Today we have come to view the consumer value dynamic as a win-win, co-creational model based on a pull versus push based perspective of marketing from which we have come to recognize the 6 forcesof value acting on/with/through the brand and its constituents. Managing those value dimensions is not a task to be divorced from the day-to-day duties of a marketer. In fact they are perhaps the most important things a marketer can do for the brand as the successes here come to define all other metrics.

Akramindia@live.in

Page 7