Building powerful brands not like building castles in the air
Building powerful brands not like building castles in the air
Agus W. Soehadi, Contributor/Jakarta
"If you can build a powerful brand, you will have a powerful
marketing program. If you can't, then all the advertising, fancy
packaging, sales promotion and public relations in the world
won't help you achieve your objective," Al Ries and Laura Ries
wrote in their best-seller World Class Brands way back in 1999.
Visit any of the world's shopping malls and right away you
will notice similarities between them, particularly in terms of
architecture. The same goes for those that have sprung up here in
Jakarta and most of the country's major cities -- they are as
alike as two peas in a pod.
Inside are boutiques, cafes, restaurants and leading-brand
stores, which are much the same as those found in any other mall.
Most famous brands are now available in Indonesia, partly due to
globalization, but mostly to highly innovative and aggressive
marketing strategies, with brand-building being one of the most
vital ones.
Generally speaking, while most international brands are
quickly identified, according to the way in which they were
advertised, some local brands have also worked their way up to
international recognition.
Today, the availability of ten national, and a number of
regional television channels, hundreds of newspapers and
magazines as well as radio stations here -- this being only one
of various marketing tools -- makes it easier for a marketer to
communicate his or her brand's plus points.
Research conducted by Scott M Davis in 2000 revealed that
about 72 percent of consumers do not mind paying 20 percent more
for a well-established brand, compared to a budding or lesser-
known brand. Almost 25 percent of them said that a lower price
tag would not encourage them to pick an unknown over an
established brand, while 70 percent opted for world-famous
brands.
Meanwhile, Kevin L. Keller, also in 2000, said that a brand's
pulling power is based on how much consumers know about it. The
more knowledge a consumer has on a particular brand, the more
likely they will be to purchase the product. For handycams, for
example, Sony quickly comes to mind as it already enjoys a
positive public perception of its audio and picture quality,
including its worldwide sales and after-sales network.
Three basic elements of brand building are the brand itself
(in the total sense of the word), aggressive marketing and brand
association in consumers' minds (or leveraging secondary
association, in marketing jargon).
A brand comprises the name given to a product, its logo,
packaging and slogan -- or tag line, as ad copywriters refer to
it. Naturally, all these are created to make it easier for
consumers not only to remember the brand prior to their purchase,
but also to produce a positive perception of the brand.
Some Indonesian companies go for brands that use foreign -- or
mostly English -- language, as they think that such names create
a better impact or image. An electronic producer belonging to
Djarum group (one of the country's largest cigarette
manufacturers) use Polytron for its products, for example. A
number of cigarettes produced in the country also use English
names for their brands, like LA Lights, Country, A Mild and so
forth.
Changing brands and logos with new ones is also a
brand-building method. Naturally, other elements, like tag lines,
advertising themes, endorsers and the rest are also revamped.
The marketing of a brand is generally defined as choosing the
right values of the product (which now has a brand) for the
targeted segment, providing both tangible and intangible values
inherent in the brand and effectively communicating the values.
All these are carried out with a well-defined target, as,
otherwise, with the high costs of marketing communications, money
would not be well spent.
The tangible benefits of a product or service should be
accurately reflected in all promotional activities, including the
tag line. Ultimately, the tangible and intangible plus points
somehow merge into a brand's personality that is durable. At one
point, advertisements of BMW cars carried the tag line: a sheer
driving experience, which illustrates the success of a believable
message. Believed by BMW's customers, because the products
delivered the promise.
To enhance the values mentioned earlier, it naturally follows
that all marketing efforts -- right from planning down to
distribution, sales, customer relations service, after-sales
service, pricing and the rest -- should be geared toward
producing the intended effect.
In marketing communications that, among other things, comprise
conventional advertising through the media, outdoor billboards,
exhibitions and public relations, carefully laid out plans should
be translated into highly effective messages through a diversity
of media. The bottom line here is to leave consumers with an
indelible impression of a brand's characteristics and qualities.
Secondary association is another way of directing consumers to
believe in a brand. A company with a reputable name, a country
well known for certain products, celebrities, popular figures,
sports competitions are some examples.
Among various indicators to determine a brand's strength is
the level of brand awareness that consumers exhibit. When a large
number of consumers can easily recall a brand, the campaign to
promote it is regarded as successful. For example, when asked
about his favorite headache pill -- aspirin springs to a man's
mind, for example. This is also known as the recall rate of a
brand, which increases sales as the brand has become the
consumers' first choice or preference.
Undoubtedly major world-class companies can afford huge
budgets for the entire exercise of marketing communications and
activities in building their brands. Acknowledged experience in a
particular field also contributes much to the success of a brand.
Swiss watches, French perfumes, German cars, Italian dresses,
American jeans are just some of numerous examples that clearly
show how brands are sold based on where they are from. The high
quality of similar products from the country concerned, as well
as the origin of the product itself and the image of the country
as a whole, make selling the product a piece of cake.
One recent example is Bread talk, the reputation of which
preceded its opening here. On day one, the bread shop had
customers queuing for its comparatively more expensive products.
Building brands is no easy task. Promises made have to be
delivered. In order for a brand to endure, it must exhibit all
the qualities that it was promoted for. Or, better, surprise the
customer with something more. Pampering is a sure way to persuade
a customer to be loyal, or turn them into your "salesperson". Win
a customer's loyalty and ultimately you have won it all. --- The
writer is program director of master degree studies in marketing
at Prasetya Mulya Business School