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Lecture No. 02 | by Faheem Bukhari | 09.02.2013

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The Law of Expansion The power of the brand is inversely proportional to its scope

When you put your brand name on everything, that brandname loses its power

American Express used to have a very strong brand and

membership used to have its privileges, it used to beprestigious to own one etc. Then it broadened its product linewith new products and services. The result was that its shareof the card market fell from 27% to 18%

Kodak is known for making high quality film. If you want tocapture a good picture on film the majority of people wouldsay to use Kodak. If you were to ask those same people whomake a great printer I bet that none of them would say Kodak.

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The Law of Contraction

A brand becomes stronger when you narrow its focus

Narrowing ones focus is not the same as carrying a limitedline. Starbucks offers thirty different types of coffee.

Good things happen when you contract your brand ratherthan expand it it is focused

When you only make one thing, you get pretty good atmaking that thing

When you dominate a category you become extremelypowerful. In order to dominate your category you mustnarrow your brand focus

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The Law of Publicity The birth of a brand is achieved with publicity, not advertising

With virtually no advertising, but with massive amounts of publicity,The Body Shop has become a powerful global brand it was theendless torrent of newspaper and magazine articles, plus radio andtelevision interviews that literally created The Body Shop

Advertising generally wont get a new brand off the ground

A new brand must be capable of generating favourable publicity inthe media or it wont have a chance in the market place

The best way to generate publicity is by being the first brand in anew category media wants to report what is new, not what is best

Companies such as Microsoft, Dell, Intel, Gateway, Oracle, Compaqetc are companies that were first created by the Wall Street Journal,

Business Week, Forbes and Fortune Magazine publicity, notadvertising

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The Law of Advertising Once born, a brand needs advertising to stay health

Publicity is an essential tool for a product in its initial stages, butthe product will eventually outlive the publicity you cant relyon publicity forever

After the product has been written about and spoken about inthe media, get the media to concentrate on the company andhow innovative the company is etc. Once that avenue of publicityhas been exhausted, then you must turn to advertising

ie: First publicity, then advertising

You should look at your advertising budget as insurance thatprotects the brand against losses caused by competitive attacks

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The Law of the Word

A brand should strive to own a word in the mind of the

consumer

FedEx has become synonymous with overnightdelivery

To build a brand you must focus your branding effortson owning a word in the prospects mind. A word thatnobody else owns (eg: Volvo owns the word safety)

A common mistake in branding is when once thecompany owns a word it then moves on to broadenits base and enter into other markets

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The Law of Credential

The crucial ingredient in the success of any

brand is its claim to authenticity

Credentials are the collateral that you put up to

guarantee performance of your brand

Everywhere that the brand name is used, so are

the credentials (The Real Thing was used in

the 70s every time Coca Cola was mentioned

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The Law of Quality

Quality is important, but brands are not built by

quality alone

Brands are not built by quality alone

Having a high price also gives consumers theimpression of quality can a Rolex keep better timethan a Casio watch? No, but it is better quality

because it is more expensive (does your waitersuggest a $20 bottle of wine when you ordered an$80 bottle, even if the cheaper one tastes better?No, because the price tag determines the quality)

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The Law of the Category

A leading brand should promote the category,but not the brand

When you narrow the focus to such a degreethat there is no longer any market for the

brand, create a new category

Create a new category and become the first

and thus, the leading brand

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The Law of the Name

In the long run a brand is nothing more than aname

In the long term, the unique idea or concept

disappears and what is left is the company name Xerox built the first plain paper copier. Today all

copiers are plain paper, but what distinguishes

Xerox from the rest of the market is their name

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The Law of Extensions

The easiest way to destroy a brand is to put its

name on everything

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The Law of Fellowship

In order to build the category, a brand should

welcome other brands

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The Law of the Generic

One of the fastest routes to failure is giving a

brand a generic name

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The Law of the Company

Brands are brands. Companies are companies.

There is a difference

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The Law of Subbrands

What branding builds, sub branding candestroy

Holiday Inn has many subbrands Holiday InnExpress, Holiday Inn Select, Holiday Inn SunSpree Resorts, Holiday Inn Garden Court.

When you went into a Holiday Inn, you knewwhat to expect. Because of all of thesesubbrands, you dont know what to expect

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The Law of Siblings

There is a time and place to launch a second

brand

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The Law of Shape

A brands logo should be designed to fit the

eyes. Both eyes.

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The Law of Colour

A brand should use a colour that is the

opposite of its major competitors

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The Law of Borders

There are no barriers to global branding. A

brand should know no borders

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The Law of Consistency

A brand is not built overnight. Success is

measured in decades, not years

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The Law of Change

Brands can be changed, but only infrequently

and only very carefully

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The Law of Mortality

No brand will live forever.

Brands have a life cycle they are born,prosper and die.

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The Law of Singularity

The most important aspect of a brand is its

single-mindedness

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Thank you