Showing posts with label branding. Show all posts
Showing posts with label branding. Show all posts

June 13, 2010

Intangitoia picks - Sounds like branding at TEDxTokyo

Following up on yesterday's post with this short and condensed video where Jakob Lusensky explains in 12 minutes what the music branding is all about. Highly recommended.





Johan Orneblad
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June 12, 2010

Sounds like branding

To use music in connection with branding is not a new thing and everyone will instantly recognize the jingles or sound logos of Coca-Cola or McDonalds. However this is only a small portion of the great opportunities that music has to offer to brands and that brands have to offer to music.





The recent book “Sounds like branding” by Jakob Lusensky, a Swedish DJ and executive at the branding agency Heartbeats International, focuses in on the opportunities and potential value creating prospects in the intersection of music and brand identity.

He looks at this from two ways, both that the brands by for instance through offering music CDs in the stores, as Starbucks, increases the distribution channels and for some even cuts out the record labels fully. The other aspect, which I find much more intriguing, is how brands can tap in to the credibility value built up by the artists, both directly to their fans and also more generally in society.

The four Es
Music is of course only one of the ways in which a brand can take a more strategic approach to its brand image, and as Jakob puts it:

“Music is something that people connect with, enjoy discussing and sharing with others. Music preference relates to and can reveal a person’s personality. Brands are becoming aware of the possibility to emerge as an ambassador of this social media, the positive effect it can have on their brand image, and how it can attract the attention of people in product and brand marketing.”

He bring in the concept of the four “Es”; Emotions, Experiences, Engagement and Exclusivity to position a brand and guide it in their efforts to collaborate and connect with fans and customers. A concept he uses to guide us through the book.





Consumers become fans
The interesting transition where the consumer more and more becomes a fan to a brand, is something that we already have seen with for instance Apple. The computer hardware company has since the launch of iPod, [video pres with Steve J] become more of a movement with dedicated fans being both advocates of the brand but even more so committed followers of a lifestyle where the white headphones just are one of the style signifiers.

Package a feeling
One of the things that I find especially interesting with this book is how a brand can capture and communicate the core values or feelings that is connected to the brand identity. Jacob Luensky exemplifies with the hotel chain Clarion Hotels which put together a soundtrack to be played in the lobbies and also via the internal sound system in the hotels. A representation of this soundtrack was then sold on a CD for the customers to bring back home.

One other example of a customized music and branding experience is Absolute’s “Sound of Ice” radio channel that Absolut Ice Bars are playing, irrespectively where in the world you are. It was created to give the bar goes a consistent and enhanced experience in all their locations.

The book
To say something more specific about this book which was sent to me for review, I find it interesting but slightly too focused on the processes that a brand should use when thinking about introducing music in to the branding mix. This is however not that surprising since I understand it as a way for Heartbeats international to inform about their services.

As a brand owner or artist, either thinking about these issues on a daily basis will find the book highly useful For the rest of us, more generally interest in the concept, the two white papers on the book’s homepage will bring you far along the way.

White paper 1 - Social music revolution
White paper 2 - Sounds like branding


Johan Orneblad
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July 13, 2009

Intangitopia Picks - Brandinavia: Why Nordic Brands Rule

brandchannel.com, a part of Interbrand the brand managing firm, has a weekly newsletter that features different articles about branding. The latest issue dropped in to my mailbox early this morning with a lead story called Brandinavia: Why Nordic Brands Rule.

The story features why Scandinavia has nurtured such a strong branding culture. The writer, Barry Silverstein, finds arguments in such disparate phenomenon as vikings and social democracy. Even though there might still be more to explore about why the Scandinavians are good at design and branding, the article makes a good read.

Johan Örneblad
Follow me on Twitter.

March 17, 2009

Ethics in IA/IP management - the Corporate Profile

My exploration in IP and ethics today takes me to IPM strategies that may be associated to the corporate profile. In my last blog post, I touched upon some of the complexities in managing innovation in an ethical manner, which may be seen as layers that are much more focused on technology whereas today’s post will target brand management.

Brand Management Deconstructed
Firstly, it is important to recognize that branding encompasses so much more than trademarking a name / logotype, registering a slogan or claiming a certain design scheme / trade dress as proprietary. Branding is the whole communicative relationship between a company and 1) its customers, 2) its collaborators, 3) its employees, 4) its end-users (if separate from customers) 5) any entity or person that the venture will communicate with.
A “strong” brand is often quoted to;
* attract new customers / retain existing customers
* enable price premiums / drive sale volumes
* decrease sensitivity / volatility of revenue streams
* secure future revenue streams
* enable clear product differentiation and positioning
* reduce marketing costs
This is all true but in knowledge-based business (more?) important aspects are also how the brand is used to 1) block competitors, 2) control value propositions, 3) control relational networks / technology platforms, standardization efforts and markets, 4) control the creation of a strong IA/IP portfolio, 5) establish incentive structures and control human resources, 6) controlling the identity and perception of the venture, 6) extract value (monetary or non-monetary).

Branding and Ethics
It is quite clear from the brand elements above that the “control” that branding enables, there is more than one path to go where there will be more than one opinion about what “the right thing to do” is. Using semantics to describe the identity of the venture or the utilities of a product can create the perception of something that is of far more value than the original object. Below follows some examples where IP and ethics can be tricky;

Functional utility:
The debate whether diagnostic tests are ethical is an interesting example of branding where descriptive terms could be used as a way to inform the patient about the uncertainty of the test or unethically to provide a false comfort. A genetic test may confirm a clinical diagnosis only if the disease is a known, described, monogenic or chromosomal disorder with evidence-based association to a disease causing mutation. Conversely, genetic tests for polygenic complex disorders only assess an individual’s risk of susceptibility slight-moderate-strong to certain diseases, providing for more room for interpretation (and external influence).

Another example of a balancing act in what utilities that are rightly or wrongly claimed is in relation to the placebo effect. If you go to the doctor to cure an ailment, he prescribes a medicine, and you feel better afterwards - you are cured. Would you feel the same in case if it later turns out that the pill he gave you was Cebocap (a known sugar pill) - or would you rather be inclined to sue him for malpractice? I guess the answer he will always be “it depends”, but this is also why it is important as a company to control the communicative relationship.
Product identity: It is often easier to argue that something is unethical when it involves human health, but a similar discussion can be had for consumer goods as well. One of Procter & Gamble’s washing-up liquids (known as Yes, or, Fairy) is rumored to have gotten a boost in sales after the introduction of a minimal addition of eucalyptus, much owing to the success of branding the liquid using the ‘natural’ ingredient.

Corporate identity: We can all relate to how we perceive company brands as having distinct personalities (traditional examples include: Volvo - safety, Apple - design, etc.). Conscious IA/IP strategies have the ability to create these identities. There are many large corporations that have their scientists writing periodical reviews about markets, current technology and future predictions. Product placements in these could be part of the branding strategy to create a demand which may justified in some cases and could be destructive to society in some cases (e.g. tobacco industry denying lung cancer).

Co-branding: A value creating strategy that may both be used for the better or for the worse. Few customers reflect over the moral values in Ferrari lending their logotypes to Acer computers, but what if Walt Disney was to co-brand with Marlboro? In this bizarre example, many would think that it would be easy to point to whom would be the ‘winner’ and to whom that would diminish their brand, but there are examples where the boundaries are more fuzzy.

Claiming ethics to create an advantage: This may not be one of the most common strategies, but I thought that it was an interesting case. In the March issue of Nature Biotech the article “a balancing act” discusses Genentech’s petition for the FDA to immediately pull many of the in vitro diagnostic “home-brew tests” from the market. Genentech’s claim is that there is not adequate “scientific evidence of their validity” and that they pose “potential risk to patient safety”. This is seemingly an altruistic move, but the Nature article states what Genentech would like for the FDA to examine closely are home brew tests to assess patient suitability for Herceptin treatment. Uses, not mentioned in the petition, that erode Genentech’s royalties from sales of ‘official’ companion diagnostic kits, not to mention potential lost sales in the future from Rituxan, Avastin and Tarceva. This could obviously be argued to be immoral, while it could also be considered a win-win situation (tougher regulation of diagnostics + more sales for Genentech) depending on who is the judge.

My exploration in ethics and IP will continue in later posts where I will investigate market considerations, and value extraction among other things.

Tobias Thornblad


January 5, 2009

A Horizontal Acquisition in the PC Industry: How to Handle Branding for Long Term Value?

Intangitopia presents it's first Guest Blogger, Jonas Nilsson.

In December 2004, Lenovo finalized the block buster acquisition of the IBM Personal Systems division. Lenovo, barely existing outside China and more known for low cost products than having a premium focus, was to nourish the world’s most premium connoted PC brands – IBM and its Think series computers. An unholy alliance according to some, but Lenovo were determined to create a pioneering collaboration between the East and the West to ultimately form a global industry giant.

My focal point on this topic is how Lenovo chose to leverage the extremely valuable IBM brand on their acquired ThinkPad and ThinkCentre computers. Lenovo were given the right to physically put the IBM brand name on the computers for up to five years after the acquisition. But in the end of 2007, Lenovo decided to drop the IBM brand – ranked among the most valuable in the world - two years before schedule. My hypothesis is that dropping the IBM brand from the Think PCs was good for Lenovo in building long term value for Lenovo from a brand perspective. The analysis is conducted from three starting points that I have determined relevant in this case.


Customers’ Trust in the Ability for Lenovo to Sustain the IBM Think Brand Value Proposition
Customers initially worried that the values that IBM and the IBM Think series represented and delivered, such as quality, innovation and support, would be lost when Lenovo took over. Lenovo had aligned the corporate culture and vision to achieve the value propositions of the Think PCs, but did it correspond to the image of the brand?

First of all, the IBM PS operation basically still existed in the new organization, why little was to actually change for the customer, which was steadily communicated by Lenovo. Also, with the IBM brand physically on the PCs, the customers could be assured that IBM endorsed the new structure. I found three main aspects that diminish the risk of customers losing trust in the IBM Think brand’s value proposition.

  1. Lenovo’s steadily increased revenues and profits indicate that the customers have trusted the new structure and shows that customers’ believe in sustained value proposition from the Think PCs.
  2. IBM PC customers have traditionally been loyal to the brand. After almost three years of having Lenovo in the picture, many of these will have gone through a computer purchase cycle under Lenovo and have therefore already acknowledged the new structure.
  3. The brand is much more than the IBM name and Lenovo have been extremely careful with capitalizing on the perception of how a Think PC should operate, look and feel but also how it should be serviced and supported. This has ensured trust in the value proposition.
These arguments in sum, suggests that sustaining the brand of IBM on the Think PCs for two additional years would not significantly have helped in preserving the consumers trust in the value proposition, since the name still have needed to disappear in two more years. The arguments would likely not have been considerably affected during that time.

Long Term Brand Building

The early removal of the IBM brand from the Think PCs was a step in leveraging the Lenovo brand in the vision of being one of the largest actors in the PC market with aggressive growth ambitions. Despite the values the IBM brand brings, it diminishes the Lenovo brand. It could also confuse the less familiar customers; “what is actually what here?”.


I have used Google Trends as a tool to illustrate how frequently “IBM ThinkPad” vs. “Lenovo ThinkPad” have been searched for on Google historically and how commonly referred the terms are in Google News (which basically summarizes news from a large pool of media channels).



First of all, it is obvious that Lenovo is in a positive and IBM in a negative spiral in terms of people’s awareness and the media attention of the brands (similar trends in search volume index is seen when comparing “IBM” and “Lenovo”). This suggests that leveraging from the IBM brand is of decreasing importance and the possibility to keep growing with the Lenovo brand is likely good. Also, after the brand change in 2007/2008, the number of news references did increase vastly compared to the previous years (even if we add the IBM ThinkPad references) creating a lot of attention of the ThinkPad, which is good for the brand building and suggests that the brand change decision was good.


Strengthening the Lenovo brand two years earlier than initially planned was likely positive, since it speeds up the process of creating a long term brand value for Lenovo.


Aligning Corporate Vision and Culture

Though the top managers all the way might have been consistent in their thinking of Lenovo as the company, it is not unlikely that the employees with such different backgrounds rather indentified themselves with their previous brands. Exclusive Lenovo branding should in the long perspective help unifying the company. Lenovo’s vision has been to communicate the beginning of something new, a pioneering collaboration between the West and the East to create “a unified global PC leader with growing market positions in developed and emerging markets”. A distinct action in order to bridge the gap between the vision and the culture is definitely to make sure that the new company operates under one name. The symbolism is great, in my view.

Conclusion

From the three starting points that I have analyzed, Lenovo’s decision of dropping the IBM brand earlier than initially decided, likely was the better move looking at the long term value creation from a brand perspective.

Managing the brand is of utmost importance to the technology intensive firm. In dynamic markets with rapidly changing technologies and conditions, the customers want to know that their supplier has a vision of their desires beyond the traditional price/performance aspects. The customer wants a company they can trust and the company wants recurring customers.

Jonas Nilsson

November 16, 2008

Is McDonalds McDonalds without McDonalds?

McDonalds are launching two new concept stores in Japan, featuring the Quarter Pounder, without any direct brand connection to McDonalds.

I have tried to understand if this is only a new type of viral marketin
g to create a buzz around the fast food chain or if it really is a new concept, perhaps to be launched somewhere else as well.

The choice in the stores consist of two set menus featuring either the Quarter Pounder or the Quarter Pounder with cheese.

This could as I see it be a way to strengthen their brand offering in the
"real" restaurants as well. Having a clear focus on parts of their products and clearly define the concept at the new store can add value to the more diversified core offering.

McDonalds in Sweden have long had a focus on trying to rebrand themselves in the direction of being more healthy than what typically is expected from a fast food chain. This is why I could see a development in the same direction in Sweden as i Japan, with concept stores. The difference could however be that the Swedish restaurants would focus on healthy food.

For McDonalds to open this type of "healthy restaurants" would strengthen their brand as a healthy company (which I do not say that they are) since it will focus the attention to what they want you to perceive.

So, when will we see the new McSalad restaurants in Sweden?

Johan Örneblad


Here, here, here and here are more posts on the topic.
The picture were taken from here.

 
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