10 RULES of BRANDING

C O N S U L T I N G G R O U P

Branding takes place not in the real world but in the minds of consumers. And whatever the mind perceives to be true is true. You can object, but that is the

way it is : perception is reality. Branding is not a battle of who can manufacture the better product. It is the battle of who can create the better perception.

Ruleno.01

PERCEPTION is REALITY

Rule no.

02 FORTUNE FAVOURS THE FIRST

It is better to be first than to be better. Being first is no guarantee of success, but being first is important because it gives you the licence to establish your brand in the minds of consumers before the competitors start showing up. If you do not exploit this licence, you will loose that first-mover advantage.

Ruleno.03CREATE NEW

CATEGORY

If you are not the first brand on the market, or the second, there is still a chance for you to get into the mind first if you can set up a new category that you can be first in. You will need to promote it aggressively. But when that new category grows, your brand will grow along with it. And because you promote that category, you will naturally be seen as its leading brand.

Ruleno.04FOCUS

When you focus, your brand becomes strong as it can stand for one thing in the mind. But this requires sacrifice. A focus brand is one driven by a vision to be no. 1 in something. It is willing to give up 9 out of 10 things it could have done, just to become the best in one. However, focused brand tend to make more money in the long run, compared to diversified brands.

Ruleno.05

DIFFERENTIATE or SELL CHEAP

It is impossible to build strong brand in the absence of differentiation. If your customers cannot perceive any difference between you and your competitors,

they will buy from whomever is cheaper, and that may not be you. If you are not differentiate, you will have to compete on price, and you may find that you

cannot sustain that price advantage in the long run.

Rule no.06USE of PUBLIC RELATIONS for BRAND BUILDINGAdvertising is what you say about yourself and, of course, you will tend to say good things. So, it has very little credibility. Public relations is what the media says about you, and since the media is third party, what it says will seem to have a ring of truth about it. Public relations has credibility that advertising lacks, but advertising is needed to maintain the brand after it has been built.

Rule no.07FIND a GREAT NAMEBusiness is tough enough without your product being saddled with a forgettable brand name. Having a bad name is half the battle already lost, so work hard to ensure that you have a unique brand name that is simple and easy to remember.

Rule no.08ABSOLUTELY

BE CONSISTENTNobody likes to hang around people with multiple personalities. These people are often labeled as crazy. By the same measure, nobody likes to be around schizophrenic brands either. That is why your brand needs to be absolutely consistent in how it behaves. If it is erratic, consumers will be confused and start defecting to the opposition’s camp.

Rule no.09MAKE ENEMIES not FRIENDSTo build a strong brand, you need to supply a reason for its existence and justify why it deserves to live. That is why you need to make enemies. When you have a powerful enemy to fight, it gives your brand a reason to be accepted by the world..

Rule no.

10KNOW

WHEN to LAUNCH a

SECOND BRAND

Your brand cannot stand for everything. When the time comes for your business to enter a new category, launch a second brand

instead of line-extending your first and diluting what it stands for. It is advisable, however to launch a new brand only when your

existing one is leading player in its category. If you are struggling to increase sales in a category you know well, what are the

chances of you doing well in a category you know nothing about ?

In OMG(od) We Trust

sumardy@octovate.com

Thank You