Stand apart from the crowd and lead

Stand apart from the crowd and lead

By Daniel Surya

JAKARTA (JP): With today's increasing pace of social change,
driven by political impacts, globalization and other powerful
forces, consumers' needs and tastes are changing more and more
rapidly.

Public perceptions are shifting in this cluttered environment.
In the difficult times we face today, people are turning to those
they trust. When money is tight, people will spend more prudently
and avoid risking expenditure on unknown options. They will spend
on goods and services they know they can rely on. Some will lower
their standards and start buying lower priced goods and services.

A brand can be used to shape public perception. Of course, a
brand is not the only tool with which to shape public perception,
but it is effective in steering it in a desired direction.

What is a brand?

A brand is not a matter of graphic design or logo.

It creates, manages and even controls public perception. I
doubt that a brand can be made by the competition itself.

Why? The one who well-understands the value, vision and
mission of your company is yourself. A brand is like a human. It
is first conceived, and then nurtured and maintained until it
reaches maturity.

The founder of our company, Walter Landor, said "Products are
made in the factory, but brands are created in the mind". What he
means is that a brand is a lot more than just a product and
service. A brand is how a potential customer perceives that
product or service. Coca-Cola is not just a soft drink; in the
mind of a potential purchaser it's a promise of refreshment, of
fun, of good times; all the values instilled in the product built
up many years of strong and consistent branding. We call it a
"Breakaway Brand" which is one that stands apart from the crowd
of its competitors.

How to build brand power?

Twenty or 30 years ago building brand power was much easier.
Products were much more clearly differentiated in their
attributes and performance. There were single benefit products
with Unique Selling Propositions (USP's).

These days it's much, much harder to create a USP. Most
products are undifferentiated in performance, attributes and
other areas. The answer to this situation is to build a powerful
brand that creates preference in the minds of customers.

Landor believes there are five basic principles of building
brands. Three of these factors are functional and the other two
emotional:

1. The Power of One -- one word is always better than more in
creating a powerful brand. Disney, Levis, Coke, Microsoft; these
are just some of the power brands that confirm the principle of
the Power of One.

2. Simplicity -- simplify whenever possible.
We recommended to Federal Express that they simplify their
branding accordingly. As a result, the company has strengthened
its branding and leadership in a market in which it was a
pioneer.

3. Understandability -- in today's hectic world, customers don't
have the time or patience to try to figure out what you're
offering them. If the offer is confused and not immediately
understandable they won't waste their precious time trying to
find out. These are the three functional principles.

4. Differentiation -- powerful brands need an identity, which is
distinctly different from the competition; an identity that sets
them apart in the minds of customers but is still relevant to
customers' needs. We deliberately planned to clearly
differentiate Lucent Technologies from its competitor in the
telecommunications industry both in terms of the name and the
visual identity.

The Lucent case history is now being used by the Harvard
Business School as a classic study in successful branding.
5. Memorability -- Branding must be memorable.
There must be an emotional hook that anchors the brand firmly in
the minds of customers.

When?

The interesting question in today's fast changing world is:
"When is the right time to rebrand?" According to David Redhill
(one of the executive directors of Landor Associates), asking
that question is a little like asking "How long is a piece of
string?"

The answer, of course, is entirely dependent on market
circumstances, a company's situation, and its strategy for the
future. Companies rebrand themselves, their products and their
services for many different reasons. The only constant in the
equation is change: a change of strategic directions, a change in
the market, or a change in the overall position of the company, a
merger or acquisition for example.

Some indications of when a company should consider rebranding
are:

* A new leadership: with a new management and a new strategic
vision, a company needs to communicate change to all its
audiences.

* A merger or acquisition: merger or acquisition often develops a
new dimension of size, resources, capabilities or market
coverage. Rebranding is often the most effective way to
communicate added benefits, which is the growth offered.

* A change in product or service: Often companies outgrow their
identities. For example, a company selling radios may begin
selling televisions, computers and other electrical appliances.
If it kept its original brand name, however, it would continually
limit the perceptions of its offer, and could miss out on lots of
potential business.

* A change in the market: Sometimes the market moves on, a
company moves on with it, but the brand stays the same. For
instance, a brand which focuses on door-to-door delivery and
communicates this as its core message may suffer once the market
for electronic exchange of information grows. It will continue to
prosper, however, if it anticipates the market trend and offers
services for electronic information distribution. However, if its
brand name continues to communicate the physical delivery of
goods and information, it will limit its potential.

* A tired image: Just as consumer tastes and fashions change,
brands go out of fashion. Rebranding is an opportunity to keep
the brand contemporary and customer-responsive in the eyes of
consumers.

These kinds of indications could be a consideration for
rebranding. Of course, the implementations should be considered
for the proper strategy. However, the most crucial factor is not
when, but how the rebranding should be executed. Two good
examples in this case are PT Astra International and PT Jasa
Angkasa Semesta.

PT Astra International has unveiled a new corporate identity
while in the process of restructuring by the Indonesia Banking
Restructuring Agency. The reason is simple: rebranding should be
executed while a change in management and strategic vision takes
place. The restructuring is expected to pave the way for Astra to
add value and increase customer service through all of its
subsidiaries. The success of rebranding means the success of
controlling and managing of public perception.

Another interesting case is PT Jasa Angkasa Semesta, which
decided to change its corporate identity to signal its commitment
to its change to a company that is service-oriented, responsive,
proactive and responsible to both customers and staff. It used
the new millennium as a time to rebrand.

We must be aware of what we face today. A cluttered,
competitive environment still has opportunities, even bigger
opportunities for those who understand about branding. Take this
opportunity, build and leverage your brand not only to stand
apart from the crowd, but to LEAD it!

The writer is chief representative of Landor Indonesia.