History and growth of Brands – how they rule our lives.

There is no doubt that today brands have taken over as a language to decipher how people think and feel, what they aspire to and what they want. Brands have become the singly greatest gift that commerce has ever given culture to the point where they closely intertwined and interleaved within the very fabric our society.

Whenever we think or speak about brands, it is useful to understand the history of how brands came into being and why they are important. That way, everyone is on the same page, using the same terminology and thinking within the organisation. And we can begin to discover the emotional, rational and environmental trigger points that have allowed brands to become almost a religion in some quarters and in others a store of value.

The History

Once upon a time in America…travelling salesmen were selling questionable products like snake oil, selling image rather than product. One remembers the old black and white westerns on TV, whenever the wagon rolled into town the odd-looking salesman would announce the latest potion to cure all ills.

In the 1870’s, with the arrival of newspapers, goods, transportation and distribution, the rise of the branded products began as all these technologies came together. Brands were household goods - soap, tea, washing, powder - the brand was a symbol of consistency standing for a standard quality and price. That was when a lot of the F.M.C.G (fast moving consumer goods) companies were born (Rowntree, Cadbury, Nestle, Heinz, Kelloggs). They took branding out of the world of the medicine chest and into the kitchen.

The genius was not so much in inventing a product or manufacturing it, or distributing it - but in communicating it, again and again and again.

In 1874, a grocer in London called Lever sold a soap called Lever’s pure honey. Other grocers copied him and started calling their soap honey. Lever was clear he needed a soap whose quality was distinctive and unique; which could be distinguished by a trademark as memorable as the product itself. That’s when “Sunlight” was created, followed in 1894 by “Lifebuoy” and in 1924 “Lux,” the soap of the stars

Feminists please note here – this is true of the advertising of the 40’s and 50’s and even 60’s, but then with the rise of feminism….but that’s a whole other story!.

Brands developed from household products to retail, services, corporations. And the media, always chasing the “NEW,” developed with them, so that now brands have become part of the very air we breathe.

Recently, there’s been a shift in the power balance from manufacturer to retailer, especially with the rise of “own label”. Here large retailers, especially the likes of Wal-Mart and Tesco realised that they owned the relationship with the customer and a certain trust was built up, over time.
Retailers realised that if they owned this trust, then the customer could be sold all manner of product and or service – even if it was not necessarily a core component of the retailer’s offer.

Today

In brief below, I have outlined the major structural shifts taking place in our society which have allowed brands and branding to take centre stage in our thinking and indeed our life.

Is it…a name?

Is it…a symbol?

A character?

Is it packaging?

A strapline?

Advertising?

A uniform?

A brand is all of these…but none of these alone

A brand is all of these when they work together as ONE clear, consistent communication, attitude and behaviour

It’s a way of working.

When you walk the talk… mean what you say… clearly and consistently… …and behave accordingly!

Coca-Cola
The “real thing” was invented. In 1886. Coca-Cola is the world’s most recognized trademark,with a 94% global recognition factor. Coca-Cola products are served more than 705 million times every day, quenching the thirsts of consumers in more than 195 countries in every climate

IBM
The “Big Blue” is the best known American computer maker. IBM offers products ranging from laptops to mainframes. Facing stiff competition, IBM has kept its market share by evolving
from a manufacturer of computer products into the IT solutions provider for all businesses

Burberry
Traditionally known for good quality clothes, Burberry periodically reinvents its signature plaid pattern to reflect current trends. Now, Burberry is enjoying the position as the epitome of British cool and cashing in on celebrity endorsements

Red Bull
Invented a new beverage category “energy drinks”. Used guerrilla marketing methods and sponsored edgy music talent and events (extreme sports) to promote the brand. Last year, Red Bull had global sales of US$1.5 billion, 70% of the worldwide market.

Apple
The computer-of-choice for the design community. Founded in 1976, Apple computers were the first to be designed for the everyday user. The company continues the pursuit of the digital lifestyle with the introduction of affordable, innovative products that challenge us to “Think Creatively”

Tommy Hilfiger
Merging music and fashion, Tommy Hilfiger has achieved unparalleled success with the ‘hip-hop’ community by bridging the gap between urban cool and classic preppy. His clothing has been worn by a virtual “who’s who” in the world of ‘hip-hop’ and adopted by mainstream USA as their aspirational clothing range.

Brands succeed by building competitive advantage through strong positioning and differentiation. The “BIG IDEA” or story distilled to its essence and expressed creatively.

HP (“invent”)
“Invent” sums up what Hewlett Packard is all about. HP employees believe that invention is what they do and HP customers believe invention is what they get

BP (“beyond petroleum”)
In 2000, British Petroleum unveiled its new identity and announced that it was going to stand for “beyond petroleum.” This now demonstrates its commitment to environmental awareness while continuing its search for new and renewable energy sources

Walt Disney (“fun”)
With his signature as the logo, Walt Disney built a company that was all about “fun” and family values. A simple but powerful idea that filters through all the divisions of the modern global conglomerate that includes Walt Disney Pictures, Parks and Resorts and Internet Group.

Brands go wrong when…

they deceive…

Hardee’s introduced the Monster Thickburger, with the concept of “more is better”. Consumers found out it contained 1,420 calories and 107 grams of fat (1.5 times the daily allowance).

Coca Cola launched Dasani which was positioned as a pure, clean mineral water. Consumers then discovered it was tap water bottled not far from London.

The brand was taken off the shelves a few months after launch to great public and media outcry
Naturally, this did not help Coca Cola’s brand image!

they fail to keep up…

From the late 70’s to the late 90’s, Sony created an empire in personal portable entertainment with the launch of the Walkman, CD Walkman and MD Walkman.

In 2001, Apple introduced the iPod to take advantage of the new MPEG technology (music that can be downloaded from the internet). Sony failed to acknowledge this new trend and lost market share.

In 2005, Sony announced the cutback of 10,000 employees worldwide

they lose their focus…

Toys “R” Us was one of the world’s most successful retailers of toys until it started spinning off into clothing with Kids “R” Us stores and baby goods with Babies “R” Us. In 2003, most of the Kids “R” Us stores were shut down. Currently, Toys “R” Us is planning to get out of the toy retailing business altogether and just spin off Babies “R” Us

they behave inconsistently…

Abbey National changed its identity three times in less than two years causing confusion in their customers and diluting its image

So where do we grow from here?

Companies need to clearly define who they are, what they do, how they do what they do and what they stand for by way of values. And it has to be believable and true.