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.