The new Coke debacle taught Coca-Cola a very important, albeit painful and public, lesson about its brand. Coke’s brand image certainly has emotional components, and consumers have a great deal of strong feelings for the brand. Coca-Cola’s biggest slip was losing sight of what the brand meant to consumers in its totality. The psychological response to a brand can be as important as the physiological response to the product.
BRANDING BRIEF 1-2
BRANDING COMMODITIES
A commodity is a product so basic that it cannot be physically differentiated from competitors in the minds of consumers. Over the years, a number of products that at one time were seen as essentially commodities have become highly differentiated as strong brands have emerged in the category. These products became branded in various ways. Consumers became convinced that all the product offerings in the category were not the same and that meaningful differences existed.
Some notable examples are coffee (Maxwell House), bath soap (Ivory), flour (Gold Medal), beer (Budweiser), salt (Morton), oatmeal (Quaker), pickles (Vlasic), bananas (Chiquita), chickens (Perdue), pineapples (Dole), and even water (Perrier).
BRANDING BRIEF 1-3
PLACE BRANDING
Branding is not limited to vacation destinations. Countries, states, and cities large and small are beginning to brand their respective images as they try to draw visitors or encourage relocation. Some notable early examples of place branding include “Virginia Is for Lovers” and “Shrimp on the Barbie” (Australia). Branding countries to increase appeal to tourists is also a growing phenomenon. Some recent success stories include Spain’s use of a logo designed by Spanish artist Joan Miró, the “Incredible India” campaign, and New Zealand’s marketing of itself in relation to the Lord of the Rings movie franchise.
Brand Focus
BRAND FOCUS 1.0
HISTORY OF BRANDING
The development of branding and brand management has been divided into six distinct phases:
- Early Origins: Before 1860
An English law passed in 1266 required bakers to put their mark on every loaf of bread sold, “to the end that if any bread bu faultie in weight, it may bee then knowne in whom the fault is.” Goldsmiths and silversmiths were also required to mark their goods, both with their signature or personal symbol and with a sign of the quality of the metal. When Europeans began to settle in North America, they brought the convention and practice of branding with them. The makers of patent medicines and tobacco manufacturers were early U.S. branding pioneers.
Attractive-looking packages were seen as important, and picture labels, decorations, and symbols were designed as a result. This was applied even by the tobacco manufacturers.
- Emergence of National Manufacturer Brands: 1860 to 1914
Mass-produced merchandise in packages largely replaced locally produced merchandise sold from bulk containers, which brought about the widespread use of trademarks. The development and management of brands was largely driven by the owners of the firm and their top-level management.
National manufacturers employed sustained “push” and “pull” efforts to keep both consumers and retailers happy and accepting of national brands. Consumers were attracted through the use of sampling, premiums, product education brochures, and heavy advertising. Retailers were lured by in-store sampling and promotional programs and shelf maintenance assistance.
As the practice of imitation and counterfeiting spread, firms sought protection by sending their trademarks and labels to district courts for registration. By 1890, most countries had trademark acts, establishing brand names, labels, and designs as legally protectable assets.