Brand Management

An Introduction
through Storytelling
Em manuel Mogaji
Brand Management
Emmanuel Mogaji
Brand
Management
An Introduction through Storytelling
Emmanuel Mogaji
Department of Marketing, Events and Tourism
University of Greenwich
London
UK
ISBN 978-3-030-66118-2 ISBN 978-3-030-66119-9 (eBook)

https://doi.org/10.1007/978-3-030-66119-9
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V
To my wife, Temitope, and children, Praise, Precious and Hephzibah.

Thank you for your support, understanding and patience while I was
writing this book.
To my students at the University of Greenwich. Thank you for motivating

and challenging me to improve the quality of my teaching.
Preface
We are surrounded by brands. We engage with brands every day; how-

ever, the management of these brands is a different concept. It is my
pleasure to introduce you to the basics of brand management. Brand
management is not one of those subjects like art, science or mathemat-
ics that you may have studied in college or secondary school. Often stu-
dents first come across brand management as a subject in their first year
at university. In this case, many students do not have prior knowledge of
branding. Brand management, in marketing, actually has to do with
creating a perfect analysis and representation of how a particular brand
is being perceived vis-à-vis how it should be perceived by users, other
brands, investors and so on. Brand management also has to do with
planning how the brand should be perceived if it is to achieve its objec-
tives and then ensuring that the brand is perceived as planned by the
company. Managing the brand secures the objectives of the brand—it
ensures that the brand does not deviate in any way from the set goals.
At this level, students are exposed to textbooks that are sometimes
too complex for their understanding. This can have an impact on their
interest and motivation and on their views regarding the concept and
subject of brand management. Most of these textbooks offer insight
into strategic brand management, which is often too technical for stu-
dents with no prior knowledge. These textbooks are broad, advanced
and more suitable for postgraduate students, practitioners and research-
ers with prior knowledge of the fundamentals of brand management.
Taking into consideration how sophisticated branding can be and con-
sidering the student as a key stakeholder in this knowledge creation, this
book offers an introduction to brand management with a unique style,
structure and layout.
I have been teaching brand management in different universities for
many years. I have come to understand students’ struggles to grasp the
basic concepts of brand management, especially when an advanced-
level textbook is used. To ease this pressure, I came up with the Brand
Story. The story introduces brand management with a narrative that
aims to engage and resonate with the students. The Brand Story is a nar-
rative of three individuals in different industries, each facing brand
management challenges. This is a more practical approach to ensure a
better understanding of brand management for those with no prior
theoretical knowledge, without ignoring the theoretical foundations.
I must acknowledge there are many books on brand management out
there, written by individuals who may be more experienced. However, as
authors, we each have a unique perspective, experience, exposure and
background. These differences shape our understanding and the contri-
bution we make to the body of knowledge on the subject matter—brand
management. This brings a diverse form of expertise, disrupting the
norms and the curriculum and presenting cutting-edge trends in brand
management and pedagogy. To this end, I have identified five key fea-
tures that make this book unique and different from others:
VII
Preface
1. The Storyline—the book is written with a different approach. It

incorporates the story of three individuals with different branding
experience and management challenges. The storyline takes the jour-
ney of brand management through the experience of a charity/not-
for-profit organisation brand, an entrepreneur/small start-up brand
and a big multinational corporate brand. These storylines that run
through the book bring to light a wide range of brand management
challenges relevant to undergraduate studies.
2. The Style—the style is conversational yet theoretically and practi-
cally relevant. It is suitable for undergraduates studying marketing,
business management, advertising, and graphic design. and for mas-
ter’s students with no prior knowledge of branding. This means the
book can be easily understood by those who are studying brand
management for the first time.
3. The Structure—the book is structured over 12 chapters and there-
fore aligns with the 12 teaching weeks in a semester. There are com-
mon threads and lines of thought between each chapter. From my
teaching experience, I found that students are often daunted with the
rigid structure of the textbook. Most of the time they find it hard to
demystify the hegemony of brand management, making them see
the concept as something that is naturally difficult to understand.
The structure allows the students to peek into what is going to be
discussed in each chapter, topic and sub-topic. In addition to the
storyline that runs through the chapter, a key question is presented
at the beginning of each chapter. This key question highlights the
theme of the chapter and how it relates to the Brand Story. Learning
objectives of each chapter are also presented to show students what
they are expected to understand at every point. The book also
includes relevant case studies beyond international brands, showcas-
ing diversity through small, local brands across a range of countries.
Each chapter concludes with revision questions, keywords and key
points.
4. The Sample—the book covers cutting-edge trends in brand manage-
ment, such as brand ethics and branding in the digital era. We move
beyond the idea of a corporate brand and offer a holistic under-
standing of branding as a concept. Activities and examples include
charity brands and small- and medium-scale enterprises (SMSE).
This understanding is essential because it is quite possible that stu-
dents and other readers of this book may want to start their own
businesses or charities and so ideas around corporate branding may
not be applicable. This suggests the need to explore branding from
different domains, not just limiting it to global brands.
5. The Student—this book is specifically targeted towards YOU. The
focus here is not about presenting academic terms and theoretical
insights which you may not grasp at this early stage. The book is
aimed at helping you understand the essence of brand management
as a concept and its relevance to every business. Brand management
is comprehensive, with a lot of constructs, models and theories. You
may end up studying brand management as a master’s degree for
12 months, but before you start sprinting, let me support you to
VIII Preface
walk. In this text, I will be communicating with you on a personal

level as my student; we can both co-create this knowledge together.
Though you may not have prior academic understanding of brand-
ing, I am here to support you.
Thank you for your attention and interest, a lot of effort has been put
into this book, and I am sure you will find it worthwhile. Engage with
the content and consider yourself as a brand as you explore and increase
your knowledge. Always ask yourself: How am I managing my brand?
Get involved with the story, answer the questions and let us walk along
together.
Emmanuel Mogaji
London, UK

IX
Acknowledgements
Writing a book can be a daunting and lonely experience, yet the help of
numerous people along this solitary journey cannot be underestimated.
Upon reflection in writing this acknowledgement, it is surprising to see
how many people have contributed in one way or the other to making
this a success.
Firstly, I am most grateful to the Almighty God, the giver of life,
wisdom, knowledge and understanding. I acknowledge that God has
given me the skills, strength and expertise needed to complete this book.
It was never my doing. He surrounded me with people to make this
work a success; I appreciate his grace, mercy and kindness throughout
this process.
I want to acknowledge the immeasurable support of my wife—Temi-
tope—and children—Praise, Precious and Hephzibah—for their love
and care and for sharing my enthusiasm throughout this period of writ-
ing. I appreciate their understanding when I was running late to make
lunch, and they reassured me: “Daddy don’t worry, Mummy has fed
us.” Thank you for your sacrifice of love.
Special thanks to extended family and friends, for their support and
encouragement. Pastor Femi and Lady Evangelist Rodah Mogaji, Dr.
Ola and Mrs. Tobi Madamidola, Ebenezer and Vanessa Mogaji and
Elizabeth Mogaji. Thank you Pastor Christopher and Mrs. Sola Farin-
loye—you showed interest in my progress. I would also like to acknowl-
edge the moral support of Pastor Azeez Ayege, Mr. Damilola
Olowookere and Mr. Ayo and Omowunmi Ajanaku. Thank you for
your spiritual, virtual and physical support.
I acknowledge my students at the University of Greenwich for their
tenacity and motivation, especially my Personal Development Group in
the 2017/18 Session, MARK 1127 Brand Management Class of 2018/19
and 2019/20. You motivated me to develop myself, carve a niche for my
teaching style and improve my student engagement.
I would also like to acknowledge the scholars that have paved way
and provided shoulders for me to stand on while I write this book. I
acknowledge the producers of the existing body of knowledge. Special
mention to my academic colleagues and friends who have supported me
through this process. Thank you Professor Liz Warren, Professor Jillian
Farquhar, Professor Varsha Jain, Professor Robert Ebo Hinson, Profes-
sor Felix Maringe, Dr. Barbara Czarnecka, Dr. Annie Danbury, Dr.
Taiwo Soetan, Dr. Arinze Nwoba, Dr. Monique Charles, Dr. Nenadi
Adamu and Dr. Claudette Kika. I appreciate your feedback, insight and
advice.
Sincere appreciation goes to those who have assisted with the data,
images and information to enhance the students’ learning experience in
this book. Thank you Olalekan Akinyele of Xaine Ingenius, Gbenga
Bajepade of Divergent Studio, Allan Gomes, Lawrence Hall of Cazoo,
Audrey Migot-Adholla of Yala Jewellery, Tunji Ogunoye of Fourth-
Canvas, Rafael Salas of LUP, Ifeoluwa Sopeju of Onedabrand Design
Agency and Perez Tigidam of Arden & Newton.
X Acknowledgements
Finally, I acknowledge the staff at Palgrave, Liz Barlow, especially for

her support through this process. She believed in me, supported me and
always reassured me. Thank you Sam Stocker and Srishti Gupta; I
appreciate your prompt answers to my technical questions.
XI
Contents
1 Introduction to Brand Management . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
2 Ethical Branding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
3 Brand Philosophy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43
4 Brand Positioning . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63
5 Brand Identity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85
6 Brand Integration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 123
7 Brand in the Digital Era . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 145
8 Brand Equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 159
9 Brand Extension . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 181
10 Brand Mergers and Acquisitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 207
11 Brand Architecture . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 225
12 Contemporary Issues in Brand Management . . . . . . . . . . . . . . . . . 241
Supplementary Information
Book Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 258
Index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 261
List of Figures
Figure 1.1 The branded carrot into carrot juice. (Source: Author) �� 6
Figure 1.2 The brand management process �� 8
Figure 1.3 Proposed logo created for Jay-Jay Okocha.
(Images provided and used with permission
from Olalekan Akinyele)�� 15
Figure 2.1 Handmade jewellery from Yala.
(Used with permission from Yala. Photography
by Louis Nderi)�� 30
Figure 2.2 Sustainable toothpaste packaging design called
Coolpaste. (Source: Allan Gomes) �� 31
Figure 2.3 Logo of LUP. (Source: LUP)�� 39
Figure 2.4 Fibra LUP. (Image used with permission
from LUP. Photographed by Claudia Castro Vilugrón)�� 39
Figure 2.5 Another Fibra LUP. (Image used with permission
from LUP. Photographed by Claudia Castro Vilugrón)�� 39
Figure 2.6 Artisan making a basket with Fibra LUP.
(Image used with permission from LUP.
Photographed by LUP)�� 39
Figure 2.7 Finished products made from Fibra LUP.
(Image used with permission from LUP.
Photographed by LUP)�� 39
Figure 3.1 Brand personality framework.
(Adapted from Aaker (1997)) �� 48
Figure 4.1 Selected and preferred brand on pedestal
and other competing brands in the mind
of the consumer. (Source: Author) �� 67
Figure 4.2 Conceptualising brand positioning.
(Adapted from Keller, Sternthal & Tybout (2002))�� 69
Figure 4.3 University brand positioning and market
gap recognition. (Source: Author)�� 72
Figure 4.4 The changing brand positioning—Stage 1—no action.
(Source: Author) �� 74
Figure 4.5 The changing brand positioning—Stage 2—action
by brands. (Source: Author)�� 75
Figure 4.6 Brand owner and brand consumers with joint responsibility
towards brand positioning. (Source: Author)�� 79
Figure 5.1 Conceptualising the building structure of a brand.
Figure 5.2 Brand identity prism. (Adapted from Kapferer (2015))�� 91
Figure 5.3 Conceptualising sensory brand identity. (Source: Author)�� 96
Figure 5.4 Conceptualising visual brand identity across shape,
colour and font. (Source: Author)�� 97
Figure 5.5 Powerite Incorporated logo with the different components.
(Source: Ifeoluwa Sopeju)�� 97
Figure 5.6 The Samsung font—Linotype Univers 820 Condensed�� 97
Figure 5.7 Typology of logo arrangement�� 98
XIII
List of Figures
Figure 5.8 ardova logo indicating the serif font

(Neo Sans TR) and the letter case (lower case).
(Source: Arden & Newton) �� 100
Figure 5.9 Different colour shades (with Pantone Codes)
for ardova plc. (Source: Arden & Newton)�� 101
Figure 5.10 Proposed uniform for First Marina Trust Ltd.
(Source: Olalekan Akinyele) �� 101
Figure 5.11 Graphical illustration of bank building designs
in Nigeria. (Adapted from Bajepade et al. (2020))�� 102
Figure 5.12 Advertisement from Cazoo. (Source: Cazoo.
Used with permission from Cazoo)�� 103
Figure 5.13 Graphical illustration of benefits of brand identity.
Figure 5.14 Clear space around Powerite Incorporated logo.
(Source: Ifeoluwa Sopeju)�� 111
Figure 5.15 Clear space around Mainstreet Capital logo.
Figure 5.16 Logo use guide for ardova plc.
Figure 5.17 Mainstreet Capital brand colour as provided
in the brand guidelines. (Source: Arden & Newton)�� 113
Figure 5.18 The conceptualisation of Mainstreet
Capital brand identity. (Source: Arden & Newton) �� 115
Figure 5.19 The grid/construction system for Mainstreet Capital
brand identity. (Source: Arden & Newton)�� 116
Figure 5.20 The email signature template for Mainstreet Capital.
Figure 5.21 Grid lines for producing social media advert
for Mainstreet Capital. (Source: Arden & Newton)�� 117
Figure 6.1 Gambling companies’ corporate social responsibility.
Figure 6.2 Proposed redesign of Enyimba Football Club brand
identity on souvenirs. (Source: Olalekan Akinyele) �� 135
Figure 7.1 Conceptualising digital innovation
in brand management. (Source: Author)�� 149
Figure 7.2 Brand-consumer engagement in digital era.
Figure 8.1 Emotional and rational valuation of brand equity.
Figure 8.2 Five key assets that can be used to build brand equity.
(Adapted from Aaker (1996)) �� 164
Figure 8.3 BrandZ brand valuation methodology.
(Adapted from BrandZ (2020))�� 170
Figure 8.4 Interbrand brand valuation methodology.
(Adapted from Interbrand (2020)) �� 172
Figure 8.5 Brand asset valuator methodology.
(Adapted from Brand Asset Valuator (2020))�� 173
Figure 9.1 Flagship and extended brand. (Source: Author)�� 187
Figure 9.2 Co-created brands. (Source: Author)�� 193
XIV List of Figures
Figure 9.3 Brand licensing and franchising. (Source: Author)�� 194

Figure 9.4 White labelling brands. (Source: Author) �� 196
Figure 9.5 Acquired brands. (Source: Author)�� 197
Figure 9.6 Brand extension strategies of Luxottica.
Figure 9.7 Proposed branded shirts as a form of brand extension
for Jay-Jay Okocha. (Source: Olalekan Akinyele)�� 200
Figure 9.8 Proposed branded footwear as a form
of brand extension for Jay-Jay Okocha.
Figure 9.9 Proposed branded fashion and clothes lines as
a form of brand extension for Jay-Jay Okocha.
Figure 10.1 The acquiring and acquired brand. (Source: Author)�� 213
Figure 10.2 The fusion brand naming and identity. (Source: Author)�� 221
Figure 11.1 House of brands. (Source: Author)�� 231
Figure 11.2 Endorsed brands. (Source: Author)�� 232
Figure 11.3 Sub-brands. (Source: Author)�� 232
Figure 11.4 Branded house. (Source: Author) �� 232
Figure 11.5 Same brand family, different brand structure.
Figure 11.6 Conceptualising brand extension. (Source: Author)�� 234
Figure 12.1 Google Ngram Viewer showing
the growing use of the word “branding.”
(Source: Google Ngram Viewer)�� 243
Figure 12.2 Contemporary issues in brand management.
Figure 12.3 The brand goodness quadrant. (Source: Author)�� 249
XV
List of Tables
Table 2.1 Fairtrade products�� 27

Table 5.1 Examples of commercial fonts being used
for brand identity�� 99
Table 5.2 Typology of letter case in brand identity �� 100
Table 8.1 Interbrand’s brand strength factors�� 171
Table 8.2 Top ten brands on the three brand valuation lists �� 176
Table 9.1 Marriott Hotel brands�� 190
Table 9.2 Summary of different ways to extend brands�� 198
Table 10.1 Summary of the stakeholder brands in mergers
and acquisitions�� 218
1 1
Introduction to Brand
Management
Contents
1.1 Introduction – 4
1.2 Brand, Branding and Brand Management – 5

1.2.1 rand – 5
B
1.2.2 Branding – 5
1.2.3 Brand Management – 5
1.3 Branding, Advertising and Marketing – 8
1.4 (Mis)Conceptions About Brands

and Branding – 8
1.4.1 ot Just in the Mind – 8
N
1.4.2 Not Just a Product – 9
1.4.3 Not Just a Logo – 9
1.5 Stakeholders – 9
1.5.1 rand Owner – 9
B
1.5.2 Brand Users – 10
1.5.3 Brand Manager – 10
1.5.4 Brand Influencers – 11
1.5.5 Brand Valuers – 12
1.6 Brand Ownership – 12

1.6.1 harity and Non-profit Organisations – 13
C
1.6.2 Small- and Medium-Scale Enterprises (SMSE) – 13
1.6.3 Global Brands – 13
1.6.4 Human Brands – 14
Supplementary Information The online version of this chapter (https://doi.org/10.1007/

978-3-030-66119-9_1) contains supplementary material, which is available to authorized
users.
© The Author(s), under exclusive license to Springer Nature Switzerland AG 2021

E. Mogaji, Brand Management, https://doi.org/10.1007/978-3-030-66119-9_1
1.7 Why Is Branding Important? – 15
1.7.1 rand Owners – 15
B
1.7.2 Brand Users – 17
1.7.3 Brand Managers – 18
1.8 Prospective Brand Manager – 19

1.8.1 areer – 19
C
1.8.2 Creativity – 19
1.8.3 Critical Evaluation – 19
1.8.4 Communication – 20
1.8.5 Consumer Behaviour – 20
References – 20
Introduction to Brand Management
3 1
Three people, Alex, Code and Sam, join a owner and brand manager of a start-up
local gym programme in the hope of improv- (Code) or as an employed brand manager in a
ing their physical health and appearance. They multinational (Sam). Though they all have dif-
have a schedule of guided exercises and activi- ferent roles, in different organisations, they are
ties. When they meet on the first day, they all responsible for adding value to their brands
introduce themselves. They share pleasantries, through their brand management activities.
and talk about their will to commit for the Many of the concepts we discuss throughout
next 12 weeks. Alex has just finished postgrad- this book will be applicable to all three.
uate studies and is thinking of starting a char-
ity organisation that provides educational
support for children in developing countries. Overview
Code is an IT enthusiast running a small, fast- Brand management is multifaceted, com-
growing manufacturing company that pro- plicated and complex, but it is important to
vides consumer goods. The company is run start with the basics. Brands exist in the
together with friends from college. Sam, on subconscious of everyone who uses or
the other hand, is a brand manager for a mul- experiences them: employees, investors, the
tinational consumer goods manufacturer. The media and, perhaps most importantly,
headquarters is in South America; however, users. In this chapter we will explore basic
they have subsidiaries across the world. This misconceptions about brands; brands and
story sets the pace for this book. As we follow branding are not just in the minds of con-
Alex, Code and Sam we will see how different sumers, nor are they just products and they
individuals engage with brands and brand are more than logos. We will discuss the
management—either as a brand owner of a brand, branding and brand management
charity organisation (Alex), or as a brand
4 Chapter 1 · Introduction to Brand Management
those of competitors.” Keller (1993) describes

1 concepts. These are terms that can be con- branding as the creation of awareness, reputa-
fusing and easily misconstrued. We will also tion and prominence while Keller and
look at key stakeholders in the brand man- Lehmann (2006) define branding as the differ-
agement process: the brand owners, users, entiation from other products and services
managers, influencers and valuers. Different designed to satisfy the same need. Kotler et al.
branding ownership calls for a different (2020) further describe a brand as a name,
branding approach. For example, a charity term, symbol, or design, or a combination of
organisation hasbranding needs that differ them all, intended to signify the goods or ser-
from a global brand. We will conclude this vices of one seller or group of sellers and to
chapter with what you can expect as a pro- differentiate them from those of competitors.
spective brand manager, what you can do Likewise, in the business world, there are
with the knowledge you acquire and the many definitions and descriptions of brands
opportunities for career progression. and branding. The American Marketing
Association describes a brand as “a name,
term, design, symbol, or any other feature
? Key Question that identifies one seller’s good or service as
What are brands, branding and brand distinct from those of other sellers”; mean-
management? while, the Dictionary of Brand (Neumeier
2006) defines it as “a person’s perception of a
n Learning Outcomes product, service, experience, or organisation.”
At the conclusion of this chapter, you will Also, in The Brand Gap, Neumeier (2006)
be able to describes a brand as “a person’s gut feeling
55 describe the features of digital media about a product, service, or organisation.”
platforms; Jeff Bezos, the owner of Amazon marketplace
55 give examples of different misconcep- said, “Your brand is what other people say
tions about brands; about you when you’re not in the room.”
55 recognise the difference between brand, As we can see from these various defini-
branding and brand management; tions, branding may mean different things to
55 recognise the difference between brand different people. These different interpreta-
management, advertising and marketing; tions made me consider the need to explore
55 describe branding stakeholders; and branding as a holistic subject by separating
55 explain why branding is important. the different components into brand, brand-
ing and brand management. This ensures that
we see brands beyond the way an entity,
1.1 Introduction organisation or individual is perceived by
those who experience or use that entity. A
As we go about our daily activities, we engage brand is more than simply a name, logo, term,
and interact with brands. We wake up with symbol or design. A brand is also more than
brands, we travel in brands, we attend lectures the recognisable feeling a product or business
wearing brands, and we sleep on brands. The evokes or the total utility a user gains from
theme of brands is very common. Everyone using a product; the satisfaction a user derives
refers to brands. If you ask 100 people their from doing business with a company or indi-
understanding of brands, you are likely to get vidual which makes that user want to con-
100 different answers. In academia, there have tinue using same product. Brands not only
been many definitions provided for branding. live in the minds of users but exist as separate
Aaker (1991) defines brand as a “distinguish- entities.
ing name and/or symbol intended to identify Irrespective of the way you define brand-
the goods and services of one seller and to ing, it is the management process of brands
differentiate those goods and services from that makes them stand out.
1.2 · Brand, Branding and Brand Management
5 1
It is my pleasure to introduce you to brand have not created a social media page for it.
management. Brand management is not like Branding is the process whereby a brand
those subjects you studied in secondary school owner decides to take action to signify the
or college. Unlike maths, physics or chemistry, intention to build the brand and make it more
you may not have a theoretical background to valuable. It is a deliberate effort to make the
build on; however, you can build upon your brand users (consumers/clients) aware of the
knowledge of media, marketing and advertis- product and what a user stands to gain from
ing though you should be mindful not to con- using the product. This means that the brand
fuse these concepts. owners are consciously making their prod-
ucts/services appealing to the brand users.
Therefore, to brand my carrot I can decide
1.2 rand, Branding and Brand
B to package my carrot, give it a brand name
Management and start selling in the market where I believe
people will buy it. It is important to note that
1.2.1 Brand branding is more than just creating an identity
such as a name, symbol or design that can be
easily identifiable as belonging to the com-
Anything can be considered a brand. It is
pany, but also recognising that it is about an
important to recognise that. If I gave you a
experience. When you first see the carrot, it is
carrot I just uprooted from my garden, the
in my back garden, but the next time you see
carrot is a brand, and you have your own per-
it, it has a package, well-designed identity and
ception of the carrot. You see the orange
is being sold in a store.
colour, you think it is fresh, organic and it
The on hold music when you phone the
may taste different from other carrots. Like
store, the staff uniform and shop layout are all
the carrot, a mobile phone is a brand and a
branding strategies. A beautiful logo is part of
car is a brand. In this case, the brand is a
that experience, albeit just visual. Branding is
noun. It is something physically present—that
the act of shaping how a company, organisa-
can be recognised, touched and felt. Brands
tion or individual is perceived. It is the process
surround us. They have physical qualities, and
of making sure that the brands stand out, and
they have personalities and culture. There is a
there is a perceived value. Alina Wheeler, a
form of association with them that may have
branding expert, in her seminal book
been acquired through information (from the
Designing Brand Identity (2003), describes
media) or engagement.
branding as “a disciplined process used to
build awareness and extend customer loyalty.
It requires a mandate from the top and readi-
1.2.2 Branding
ness to invest in the future. Branding is about
seizing every opportunity to express why peo-
Branding, on the other hand, is a verb. It is a
ple should choose one brand over another. A
“doing” word—it describes an action taking
desire to lead, outpace the competition, and
place—branding. It is a process. Branding is a
give employees the best tools to reach custom-
marketing practice in which a brand owner
ers are the reasons why companies leverage
(not necessarily a company) takes responsibil-
branding.”
ity for enhancing the experience of those they
engage with. Remember the carrot I uprooted
from my garden? Now imagine a carrot from
the stores that has been well packaged with 1.2.3 Brand Management
attractive branded packaging.
The carrot from my garden does not have Brand management, on the other hand, is
a name because I have not decided to give my about managing the branding process. Brand
brand (the carrot) an identity of its own, and management is multifaceted, complicated and
I have not provided attractive packaging, I complex. Brand management is a creative and
conscious effort in branding, which makes which involves monitoring the brand regularly
1 brands acquire value and positive perception to understand how well it is doing compared
by the stakeholders. Brand management is a to competitors and measuring and evaluating
process which produces rewards over time. It’s the brand’s performance. Brand management
a long-term effort to make the brand stand identifies and establishes the brand position.
out and attract and retain loyal users. It recognises where the brand is and where
Brand management bridges the gap it wants to go. Brand management involves
between brands (the noun, the physical engaging with customers online or react-
thing) and branding (the verb, the process). It ing to a negative tweet. It involves working
ensures value is added to the brand through a with other marketing stakeholders to plan
creative process. Branding does not just hap- and implement the advertising campaign.
pen, there is a whole process and team behind Importantly, brand management ensures that
brand management. Following the example the branding strategy grows and sustains the
of my branded carrot, (See . Fig. 1.1) the brand value (. Fig. 1.1).
process of coordinating the packaging design, Brand management, however, depends on
sourcing a celebrity to endorse the brand and branding. For example, a country is a brand
creating a website are brand management. I (you have a perception of the United States).
am managing my brand from just a carrot to The leadership of a country may decide not
a branded carrot that is endorsed by a social to improve people’s perception of their coun-
media influencer and available online and in try or perhaps there are more pressing needs.
store. Brand management is a hands-on task, To illustrate this, for countries like Syria
.. Fig. 1.1 The branded carrot into carrot juice. (Source: Author)
1.2 · Brand, Branding and Brand Management
7 1
where there has been a civil war for the last Syria, as it is not a priority for the time being.
few years, with different groups trying to Hence, brand management is something that
seize control of the country, branding and is consciously done by the brand to enhance
changing perception of their country may positive image, change a certain perception
not be a pressing need. We recognise Syria as or overhaul the brand users’ total perception
a brand, but there is no branding and brand of the brand at a point in time. The key idea
management in place. This means Syria is not here is that brand management is done con-
so particular about their image and the coun- sciously by the brand to make the brand
try leadership is not ready to make concerted appeal to users and win over competitor
efforts to endear other foreign countries to brands’ users.
Rwanda, formerly Ruanda, officially the place to manage the brand and continually
Republic of Rwanda, is a landlocked country integrate it.
in East Africa. It is one of the smallest coun- Before the partnership was signed, 71% of
tries on the continent. Rwanda has made a the millions of Arsenal fans worldwide did not
huge effort to change people’s perception of the consider Rwanda a tourist destination. At the
country in just over two decades following a end of the first year of the partnership, half of
devastating civil war. In 2000, the country them considered Rwanda a “destination to
launched Vision 2020—an ambitious plan to visit,” said Belise Kariza, Head of RDB’s tour-
transform a broken nation into a middle- ism department. This shows that brand man-
income country. That was a consciously cre- agement helps a brand grow. It also endears a
ative branding initiative to reposition the brand brand to users who might not ordinarily con-
of the country. sider the brand in the first place.
In 2018, the Rwanda Development Board,
through their subsidiary, the Rwanda Reflective Questions
Convention Bureau, became the first official 55 Some may argue why would Rwanda pay
sleeve partner of English Premier League US$39 million to become an Arsenal part-
Arsenal Football Club as part of the country’s ner when that money could have been spent
drive to become a leading global tourist desti- on the people of Rwanda? Do you think the
nation, using “Visit Rwanda” messaging. This partnership with Arsenal makes commer-
association (with Arsenal) supports Rwanda’s cial sense?
ambition to improve their county’s brand value 5 What is the importance of country brand-
to build their tourism industry. The sleeve ing? What and how do you think the
sponsoring deal over a 3-year period cost the Rwandan government and people will ben-
country US$39 million. efit from this partnership?
Here we see a brand (the country, Rwanda) 55 Why football? Why the Arsenal Football
that has recognised the need for branding in Club? Why a sleeve partnership? There are
order to make sure there is an awareness and many sports out there, many football teams
positive perception of their country. It’s impor- and they could even have had the name on
tant to note that this does not mean everything the front of the shirt. What do you think
is going perfectly well, but measures are in may have influenced these decisions?
As illustrated in . Fig. 1.2, the brand man- be sold for $1 on the market but the branding
agement process recognises the need to adopt effort and how well it has been managed has
branding measures to make a brand more made the carrot more valuable in the form of
valuable. Like the case of the carrot, it could a juice, bottled and sold in the supermarket.
Carrot in the garden Carrot juice in the shop

1 Brand Branding Valued brand
Brand management
.. Fig. 1.2 The brand management process
This can also be applicable for countries, organisations to create engaging integrated
events, humans and may other brands. Brand marketing communication, develop market-
management requires effort to move from just ing campaigns and create agile brands. These
a brand to a valued brand. roles may often overlap; while some advertis-
ing agencies like MullenLowe, VMLY&R and
Grey can do branding activities, there are
1.3 Branding, Advertising standalone branding agencies like Landor,
and Marketing Pentagram and Lippincott.
These three terms can often be confused and

used interchangeably. It is, however, impor- 1.4 (Mis)Conceptions About
tant to know that there are differences even Brands and Branding
though they are closely related. Branding and
advertising are an offshoot of marketing. Brand management is a very complex and
Branding and advertising are closely related multifaceted topic to discuss because of the
to the 4Ps of marketing (see Kotler et al. various conceptions about what it stands for
2020). One of the 4Ps is promotion. Promotion and what it entails. As earlier indicated, there
involves creating awareness and advertising. is a difference, though they are related, between
This also aligns with branding. Brands can be the terms brand, branding and brand manage-
integrated through advertising. ment. This section aims to shed more light on
Big brands spend a huge amount of money some of these conceptions as we move towards
on their advertising, which integrates their a better understanding of what branding is all
brands in consumers’ minds and enhances about. However, before we go further, it is nec-
their perception of the brands. Examples are essary to be aware of some of the misconcep-
the Christmas advertisements often released tions about brands and branding.
by UK upmarket retail stores such as John
Lewis, the Coca-Cola Christmas Truck with
Santa and the Super Bowl advertisements. 1.4.1 Not Just in the Mind
Companies create these advertisements to
gain more awareness of their brands as, for There is a school of thought that suggests that
example, in the case of the Super Bowl, they a brand is not physical, but something that
are broadcast around the world. Advertising exists only in the minds of brand users. These
here is part of the marketing strategies to scholars consider branding to be an abstract
boost brand recognition, awareness and recall concept that can only be felt and experienced
at point of purchase. by the consumers (Keller 1998).
Likewise, there are advertising agencies Keller (1998) describes a brand as a set of
and brand consulting agencies that work with mental associations, held by the consumers,
1.5 · Stakeholders
9 1
which add to the perceived value of a product 1.4.3 Not Just a Logo
or services. However, the brand can be both
tangible (mobile phones) and intangible There is a conception that the brand is an
(Olympics). The brand can be felt and engaged identity or logo. Riezebos (2003) notes that a
with. The kind of conception of what a brand brand is “every sign that is capable of distin-
is, that is, a concept that only exists in the guishing the goods or services of a company
mind, is better described as brand perception. and that can have a certain meaning for con-
This is just one aspect of branding. To further sumers both in material and immaterial
reiterate this idea, you may want to consider a terms” (p. 63). The American Marketing
brand as a person. What are they like? What Association (AMA 2020) also considers a
comes to mind when you see them? What have brand as “a name, term, sign, symbol, or
you heard about them that will influence how design, or a combination of them, intended to
you engage with them when you finally meet? identify the goods and services of one seller or
This perception is a construct of those who group of sellers and to differentiate them from
have engaged with the brand. It is however up those of competitors.” While it is an impor-
to the brand to take responsibilities and pres- tant element of a brand, a logo is not a brand.
ent opportunities for engagement which could Instead, it is a visual identity of a brand. For
enhance the perception because this construct example, due to enormous brand integration,
is malleable. Branding (as a conscious pro- over time consumers began to associate the
cess) has the power to shape our perceptions; green colour and the symmetrical siren as the
our perceptions can be changed, modified and identity of Starbucks. That green mythologi-
enhanced. With the right brand integration cal creature is not a real person, but the com-
strategy, you may end up liking a brand you pany considers her as the biggest symbol of
never thought you would and likewise with a their brand (Flandreau 2016). However, it is
bad brand management initiative, a beloved not their brand. A brand is also not a name. A
and cherished brand may become hated and brand is not a trademark or slogan.
lose their loyal customers.
1.5 Stakeholders
1.4.2 Not Just a Product
Previously, brand management was consid-
Some scholars believe that a brand is a prod- ered to be the sole responsibility of brand
uct that can be felt—for example, mobile managers, however nowadays brands, brand-
phones, shoes and cars are brands. It is impor- ing and brand management are dynamic busi-
tant to note that while this is correct, there is ness functions which require synergies among
more to the brand than just its physical aspect. various stakeholders (Merz et al. 2009). In
The brand goes beyond just a product that this section we highlight different stakehold-
can be held by a brand user. It sometimes ers who are involved with the brand manage-
comes in the form of services that are experiment process and recognise their roles in
enced by brand users. Services providers are shaping the brand meanings and values, iden-
also brands that can be experienced. Users tity and reputation (Vallaster and Von
have perceptions of banks, barber shops and Wallpach 2013).
bakers; these are service providers that con-
sumers engage with, and they construct a per-
ception based on their experiences. Stores, 1.5.1 Brand Owner
events, organisations, humans are all brands.
A brand is not just limited to the product. The The brand owner is the entity or person that
brand owner will often take responsibility to has the legal and official possession of a
build a brand that is different and unique. brand. This can be an organisation, country,
individual, rights owners or groups that offi- from other brands (there is fierce competition).
1 cially take ownership of a brand. For instance, They must recognise that there are communi-
Apple (as a company) owns the iPhone brand, ties where they can engage brand users—the
FIFA owns the Word Cup Brand and UEFA brand evangelist/ambassador plays a very
owns the Champions League. The UK gov- important role here. Furthermore, brand man-
ernment, through its designated department, agers should recognise the unique features of
is responsible for the UK brand, especially each segment (customer behaviour).
with the impact of Brexit. Brand owners are
responsible for the strategic direction of the
brand, depending on the size of the organisa- 1.5.3 Brand Manager
tion, they may consult brand managers. The
brand owners could be the CEO or Chairman Brand managers are responsible for managing
of the company, responsible to the sharehold- the branding process of the brand. They can
ers, or they could be the founder of the char- come in different forms. It is their role to
ity. Likewise, the founder of a start-up ensure the positive image of a brand. To sus-
company can also be said to be the brand tain a brand, it is essential that the brand
owner. The responsibility to not only sustain managers package and continually manage a
the brand but also make it commercially brand in a way that it will continue to appeal
viable lies with the brand owner. to brand users.
1.5.3.1Brand Owner, Brand Manager

1.5.2 Brand Users This is when the brand owner is also a brand
manager. This is often possible for small and
Brand users are the people who use the medium enterprises where the founder or
product(s)/service(s) of a company. These are business owner is responsible for the day-to-
the consumers who have decided to use the day management of the brand. The founder
brand or subscribe to the services of a brand owns the business and takes responsibility for
instead of another. The brand users may the sustainability of the brand. The founder
remain loyal to the brand and even invite oth- may be the one who develops the idea, designs
ers through positive word of mouth, which the logo, chooses a brand colour and manages
could be described as the positive reviews of the brand social media accounts.
users. These brand users have a set of expecta-
tions from the brand, and the brand owners 1.5.3.2Employed Brand Manager
need these users in order to remain commer- This applies mostly to more established
cially viable. In essence, these brand users can brands that can employ an individual or a
shape the success of a brand. Therefore, it is team to manage them. Widely recognised
important that brand owners always fulfil the brands fall into this category as they have the
brand users’ expectations. With social media wherewithal to employ professional brand
and feedback channels at their disposal, the managers. It is even wise for such brands to
brand users have more opportunity to engage have an employed brand manager(s) within
with the brand, to demand more and make their staff as that will help the brands extend
them act. Brand users can decide to do away their reach and gain more brand users. The
with a brand that does not align with their val- employed brand manager reports to the brand
ues and switch their loyalty to another brand owner or marketing director (depending on
that meets their needs and expectations. the hierarchy of the company). These manag-
Therefore, for an effective brand management ers are employed by the brand owners to man-
strategy, it is important to research and engage age the brands and engage with the brand
with these stakeholders to understand their users (clients/customers). There may be many
behaviour and how best to meet their needs brand managers working on the same brand
continually. Brand managers must recognise depending on the size of the company. These
that their customers are being lured by offers managers may also change roles within the
1.5 · Stakeholders
11 1
organisation. They can switch from managing management consultants should not be con-
confectionary brands to managing food fused with advertising agencies. Though there
brands or they can change companies and be are many agencies that can do both advertis-
employed by another brand owner. ing and branding, it is important to recognise
that they are two different marketing concepts
1.5.3.3Brand Management that require a different level of expertise.
Consultants
These are agencies and consulting firms that
assist brand owners and employed brand man- 1.5.4 Brand Influencers
agers in their branding process. Global brands
often hire brand management consultants. Brand influencers are people who have
This can be on a retainer basis or to work on attained celebrity status in society. They com-
a project. They are also able to engage with mand huge followers on social media and in
the stakeholders, especially through research real life. Therefore, they can always help to
and data analytics. Brand management con- influence the acceptance of a brand and even-
sultants often have resources that in- house tually, its sales. They are mostly drawn from
employed brand managers may not have. different fields, such as art, entertainment, lit-
They are involved in developing and integrat- erature, sport, fashion and so on. It is impor-
ing the strategic directions of the brand. Often tant to recognise the contribution of these
for the big global brands, they are responsible stakeholders. Taking into consideration the
for designing brand identities. For example: role of social media and how consumers and
55 Interbrand is a renowned yet world- brands have taken on board this idea, brands
leading brand consultancy and for over recognise that these influencers have the power
40 years they have been a part of The to make or break brands. For example,
Brand Consulting Group of Omnicom mattress- maker Casper recognises social
Group Inc. media influencers as a stock market listing
55 Pentagram, another renowned brand man- risk factor as the brand may not have the abil-
agement consultant, is the world’s largest ity to control future messaging by such influ-
independently owned brand design studio. encers, and this may materially and adversely
They redesigned Warner Bros iconic WB affect their reputation (Aliaj 2020). Online
Shield. fashion brand, Revolve, which raised $212
55 Landor, a global leader in brand consult- million in an IPO giving it a $1.3 billion valu-
ing and design, is part of WPP plc. Landor ation in 2019, also listed its influencer market-
is also a creative transformation company. ing strategy as a risk in its offering documents.
They created new graphic elements for Brand users usually believe a brand is as good
British Airways and The British Petroleum as its brand influencer. Therefore, when a
Company plc (BP’s plc) visual identity. brand influencer does something unpopular,
55 Founded in 1943, Lippincott is a creative the brand users may withdraw their support
consultancy specialising in brand and and loyalty from the brand that the brand
innovation. They created the iconic blue influencer (celebrity) represents.
oval logo of Samsung, created the name While brand influencers can add value to
“Sprite” for the lemon-lime soft drink and the brand through their association, they can
created the name “Duracell” to highlight also damage the brand’s reputation. On a pos-
the battery’s long life. itive note, in 2018, Nike made Colin
Kaepernick the face of its latest ad campaign,
While a brand owner or brand manager may and this pushed Nike’s market value up to $6
decide to choose a name for the company, billion, to an all-time high (Reints 2018). The
brand management consultants can also take brand association between Nike and Colin
such responsibility for a big brand. Brand Kaepernick was beneficial to both parties.
1.5.5 Brand Valuers 1.6 Brand Ownership

1
Brand valuers are companies or individuals Brand ownership is a concept that centres on
responsible for estimating and calculating the responsibility for creating, developing and
financial worth of a company. They also do sustaining a brand. It basically identifies the
consider the future worth of a brand based on individual or organisation that own a brand.
some factors that could dictate the market. EleVen is a lifestyle brand founded and owned
These brand valuers are external stakeholders by Venus Williams. Victoria Beckham brand
that measure and evaluate the values of the is owned by Victoria Beckham while Kanye
brand. This valuation is often done yearly. The West owns the footwear and apparel brand
brand owns these values, and likewise, it serves Yeezy. These are individuals who own their
as a benchmark for brand managers to see how brand. They might have sold shares to differ-
well their brand is doing, compared to others. ent individuals and companies, but they are
Brands values can increase and decrease, and well recognised as the brand owner. Brand
these brands can move up and down the value ownership could also be in form of a com-
table. Technology brands, however, still domi- pany or shareholders, for example, Petrobras
nate the top of the value table; they are consid- (Petróleo Brasileiro S/A) in Brazil or Tata
ered some of the most valued brands by all the Group in India. Fédération Internationale de
valuers. There are many of these valuers, but Football Association (FIFA) also own many
the following are three key ones. event brands which includes the FIFA World
Forbes presents the World’s Most Valuable Cup Qatar 2022™, FIFA Women’s World
Brands, but these brands are required to have Cup Australia and New Zealand 2023™ and
a presence in the US, which knocks out some FIFA Futsal World Cup Lithuania 2021™.
big brands like China’s Alibaba and Tencent. You are a brand owner as well. You are respon-
Forbes values the brands on 3 years of reve- sible for your human brand. The ownership
nue and earnings before interest and taxes. of brands goes beyond big, global organisa-
This information is gathered from company tions. It encompasses individuals, charity
reports, Wall Street research and industry organisations and small businesses as well.
experts. Forbes applies the average price-to- Often, book, lectures and teachings on
earnings multiple over the past 3 years to brand management focus on the big global
these earnings to arrive at the final brand brands without recognising the unique chal-
value (Badenhausen 2018). lenges of the brand owners of many other
While Forbes requires brands to have more businesses. While studying the big global
than a token presence in the US, eliminating brands can help to offer an in-depth and
some big multinational brands, Interbrand detailed understanding with available case
does not require this. Interbrand pioneered studies and data to understand how branding
brand valuation in 1988 with their Best Global works, other forms of brand owners should be
Brands. Their valuation methodology involves considered as they have their unique features,
three key components: an analysis of the business struggles and challenges. Importantly,
financial performance of the branded prod- you may want to start your own business (as a
ucts or services; of the role the brand plays in small enterprise) or decide to work for a char-
purchase decisions, and of the brand’s com- ity organisation. Understanding branding
petitive strength (Interbrand 2020). implications from a different point of view is
SuperBrands provides an insight into some important.
of Britain’s strongest brands, recognising the Brand ownership can be in various forms,
achievements of some of the nation’s leading but for the sake of simplicity, we will examine
brands, showcasing why they are well-regarded four different groups in this book. Through
and providing valuable insights into each brand’s these groups we aim to give you a better grasp
strategy and proposition (Superbrands 2020). of the concepts.
1.6 · Brand Ownership
13 1
1.6.1 Charity and Non-profit make fast decisions about their branding
Organisations strategies. They can be very flexible in making
changes and open to opportunities. Their cus-
Going back to the Brand Story that featured tomers may be locally based, and this can
at the beginning of this chapter, you may influence their advertising and brand integra-
remember that Alex wants to start a charity. tion strategy, it can determine their purpose
Alex has the passion, they have made an effort and mission and even the type of influencer
to start a charity brand but it is important to they may want to work with.
understand the financial challenges in build-
ing a brand, especially for charity brand own-
ers that may not have much money to spend 1.6.3 Global Brands
on marketing and branding strategies. How
much would they have to budget for designing These are the established brands. They are the
a logo, creating a website, producing souve- likes of P&G, Coca-Cola, Apple and Google.
nirs or creating and placing advertisements in These companies have the resources to create
the media? They need to build loyalty and dif- awareness about the brand internationally,
ferentiate themselves to attract donations. sponsor global sporting events and have their
They have their struggles because they rely on brand name on the shirts of football teams
funds from people. These financial limita- around the world. These global brands can
tions, however, should not stop the brand hire branding agencies to redesign their logo,
owner making a little effort at a time to add they have the in-house team to manage global
value to the organisation. They might not social media accounts and engage with cus-
have the resources to employ the services of a tomers around the world. However, they also
brand consultant or compete with a global face challenges in terms of the decision-
brand, and they may need to look for alterna- making process, and the scale and schedule of
tive creative approaches in managing their work. Brand managers for global brands
brands. As a prospective brand manager for a know they are responsible for huge financial
charity organisation, you will need to think and human resources. For example, in the
about working with a small budget to build Brand Story, consider the role of Sam, who is
and sustain your brand. responsible for managing a multinational con-
sumer goods brand in the United Kingdom,
with headquarters in South America. There
are some decisions that Sam cannot make
1.6.2 Small- and Medium-Scale without consulting with different stakehold-
Enterprises (SMSE) ers within the organisation unlike Code who is
a co-founder and can make instant and fast
Unlike charity organisations, these brands set decisions.
out to make a profit but they have their limita- It can be a very time-consuming process to
tions in terms of their brand management work with global brands, as there are a lot of
strategies. While they may not be making a stakeholders involved. Take the example of
profit, they must position their brand as a suc- Lay’s, with some 25 different flavours in the
cessful and valuable brand to attract prospec- mix, it took 2 years to redesign all the packag-
tive customers and investors. Your typical ing (Klara 2019). Also, these global brands
start up agency or friend’s small business falls are more prone to social media outbursts and
into this category. The brand owner is the going viral. These brands are more likely to
founder and is likely to be the brand manager. pull an advertisement if people find it to be
In the Brand Story, Code is a co-founder but offensive. These global brands operate in dif-
also responsible as the brand manager, work- ferent countries, sometimes under different
ing on the brand management processes to names. One example is Lay’s Crips in the
ensure their brand increases in value. These United States, which is called Walkers in the
SMSE brand managers can be creative and United Kingdom; there is also Axe deodorant
in the United States which is Lynx in Australia, shops. Professional tennis players, football
1 while Burger King is called Hungry Jack’s in players and musicians have recognised them-
Australia. This is a different challenge for the selves as brands and taken the initiative to
management of a global brand. develop an identity they can commercialise.
Novak Djokovic’s, Venus Williams’ and Roger
Federer’s logo are formed by their initials
1.6.4 Human Brands while Rafael Nadal’s logo is rather a stylised
version of a bull. Cristiano Ronaldo has
Did you know humans are brands? It’s true, formed a brand out of his usual goal celebra-
but it is a pity that not all humans have taken tion, where he performs an air pirouette
responsibility for developing their brands. before exclaiming “si!” Also, remember it is
Just as I did with the carrots in my back gar- not just about sports players; TV presenters
den, it is necessary for every man and woman also have brands. Look at the moustache and
to turn their personality into a brand that is bald head of Steve Harvey. The David
distinct and unique from others. My branding Rubenstein Show logo also has a pair of
efforts turned the carrots from the ground glasses because the presenter (David
into Emmanuel’s Carrot Juice being sold in Rubenstein) wears glasses.
Jay-Jay Okocha is a Nigerian former profes- are a brand and making an effort to develop it,
sional footballer who played as an attacking manage it and importantly integrate it.
midfielder. He played in several professional Olalekan Akinyele, a creative director and
clubs around the world, including Eintracht brand enthusiast, designed a brand identity for
Frankfurt in Germany, Fenerbahçe in Turkey, Jay-Jay Okocha (. Fig. 1.3). The design was
Paris Saint-Germain in France, Bolton completed in 2016 and it reflects the double J
Wanderers and Hull City in England. While at of Jay-Jay and the number 10, which was
Eintracht Frankfurt in 1993, he scored a won- Okocha’s shirt number. This design is a brand
derful goal against Karlsruher SC, dribbling identity that could have been integrated on dif-
many players in the penalty box. The goal was ferent merchandise and further ensured the
voted Goal of the Season by many football commercial viability of the player. This design
magazines and voted as 1993 Goal of the Year however has not been adopted by Jay-Jay.
by sport viewers in Germany. Okocha, though
now retired, has earned many endorsement Reflective Questions
deals, including being the ambassador for the 5 Why do you think a professional player like
sports betting platform BetKing. Jay-Jay may not have considered building
Okocha is a human brand that is well loved and managing his brands?
by players and supporters, however, a search as 5 How best do you think a sports personality
of August 2020 revealed he does not have a like Jay-Jay can create and manage their
website or logo or any indication of an effort to brand?
brand himself. Many professional athletes and 5 Do you think female sports personalities
sports personalities have made efforts to build have additional challenges in building their
their brand; they have a logo, have created web- brands?
sites and have a managed and well-curated 55 What would you expect in the brand
social media account. However, this requires a identity of a sports personality?
conscious effort; it requires understanding you
1.7 · Why Is Branding Important?
15 1
. Fig. 1.3 Proposed logo created for Jay-Jay Okocha. (Images provided and used with permission from
Olalekan Akinyele)
1.7 Why Is Branding Important? something people pay to eat. Branding adds
value to an asset, and it makes an ordinary
In this section we will consider the importance brand become more valuable, meaning that
of brand management from different perspec- people want to associate with it. This increased
tives. Stakeholders have their reasons for tak- value gives the company more leverage in the
ing an interest in brands. This section industry; it makes capital investors invest in
specifically focuses on brand owners, users the start-up and makes people want to donate
and managers. to the charity.
A brand’s value can change over time. For
example, Tesla, the electric vehicle pioneer,
1.7.1 Brand Owners incorporated in July 2003, lost $2 billion (£1.5
billion) in market value overnight in 2018
1.7.1.1Valuable Assets when chief executive, Elon Musk, refused to
Well-managed brands are very valuable. They answer analysts’ questions and instead chose
become great assets for the owners. This can to speak to a YouTube channel after releasing
also translate as physical wealth for the own- first-quarter results (Morrison 2018). In
ers. Branding adds value to a brand, and the November 2019, Tesla’s share price dropped
more effort is put into brand management, the by 6% after the disastrous Cybertruck unveil-
greater the value. Like illustrated earlier with ing, pushing Musk’s net worth down by $768
my carrots, there is a difference between chips million in a single day, to $23.6 billion
you made from the potatoes in your garden (Cuccinello 2019). However, in January 2020,
and Walkers Crisps. The branding process has Tesla became the most valuable car company
increased the value of a typical potato into ever in the US.
1.7.1.2Command Higher Prices tomers share these experiences and patronage

1 Everyone might say they have a mobile phone increases. Here word of mouth, especially
which can make and receive calls, but some electronically on social media, becomes
people will not mind paying over a thousand important. Bang Bang, a New York-based
pounds to buy the latest iPhone. A well- tattoo artist, tells his stories of linking the
developed yet established brand has the capa- world’s biggest sports stars and celebrities.
bilities of commanding higher prices. At this The celebrities tell each other who did their
stage, consumers are not just buying a prod- tattoo and bring in more business for the art-
uct, they are buying the brand. They are will- ist. If the brand were not well valued, the
ing to pay a premium price for what they celebrities would not want to do this introduc-
consider special, superior or more luxurious. tion. People love to tell others about the
This, therefore, guarantees profitability for the brands they like. Strong brands come with a
brand owners and other stakeholders. positive impression and perception of the
Companies that invest in building their brand company amongst consumers; the consumer
reap the rewards of the investment from the sees a brand they can trust and recommend to
higher price they can charge their customers. others. You should also understand that what
Back to my example of a carrot in my garden, you offer must include outstanding service,
I may give you the carrot for free but upon which will draw more brand users to your
packaging and influencer endorsement on brand. It is part of the brand management
social media, I can charge a premium price for process to give the best service possible to
my organic carrot. brand users at all times.
1.7.1.3Differentiates 1.7.1.5Positive Association

from Competitors While strong brands may command more
Branding is important for identification and patronage, which offers an immediate finan-
distinguishing the brand from competitors. cial reward, it can also bring about a positive
The shop layout of Apple Store is different association. Stakeholders recognise how valu-
from the layout of Microsoft. These differ- able the brand has become, and they want to
ences are the result of conscious efforts made associate with it. More so, the brand is well
by the brand owners. Hence, the brand man- received when ideas of partnership, co-
ages offer the brand user something different creation and collaboration are brought for-
and unique. It makes the consumers recognise ward. Prospective job seekers will want to
the brand easily, leaves a memorable impres- work for the company, and present staff feel
sion and builds loyalty. Branding gives the positive about being associated with the com-
company more recognition, and they become pany, they will be more satisfied with their job
known to the consumers. In addition, it offers and be proud of the work they do. Influencers
legal protection of products’ unique traits/fea- will want to work with them. This is also the
tures and inhibits other brands using a known case for charity organisations, for example,
identity of another. A strong brand is also BBC Children in Need (with their first-ever
important for a competitive advantage. The children’s BBC radio appeal as far back as
creative effort to be different can also create 1927) is a valued brand in the United
trust within the marketplace. The consumer Kingdom, and it is not surprising to see may
recognises the brand identities, and if they see companies partnering with them.
something different from the usual profes-
sional appearance, they are very mindful. 1.7.1.6Drives Innovation
and Creativity
1.7.1.4More Patronage Branding drives innovation and creativity as
Strong brands can attract more patronage brands want to stay ahead of the competition,
based on the positive impression they have to offer something unique and leverage innova-
created for their existing customers. The cus- tion to make things better. Branding may make
1.7 · Why Is Branding Important?
17 1
brands extend their products line or extend ments they have seen. The ease of choosing is
into a different sector, area or country. The also further enhanced by the brand’s identity.
iPhone innovative design changed the smart- That is why, to avoid confusion, a brand will
phone industry when it was released back in not allow another brand to use its identity.
June 2007, and it became the first hugely suc- Everyone knows red is Coca-Cola, and blue is
cessful mass-market mobile to be operated for Pepsi. This colour difference is a branding
completely by a touch screen without a stylus. strategy to make sure consumers can
Brands which invest in their brand-building immediately recognise what they want, and
strategy can take advantage of the positive per- pay for it without spending their time looking
ception the consumers have of them, and be at various choices.
more creative, innovative and willing to develop
new products. Even though they might not 1.7.2.2Meeting Expectations
always be successful, like in the case of From engaging with the brands, consumers
Google+ which was shut down, there should are aware of the level of services, and consum-
always be the drive for more innovation. ers learn through experience with the brand.
They have an expectation, and they are always
pleased when these expectations are exceeded
1.7.2 Brand Users and angry when their expectations are not met
by the brand. They have the possibility to
There are also many benefits for brand users share their negative experiences on social
who engage with more developed brands. This media when their expectations are not duly
also highlights the challenges of growing met. So branding is not just about the logo
brands to compete with more of the estab- and design of the website, brands need to rec-
lished brands. Brand users are the entities that ognise that customers know exactly what to
make the brand exist. Without this set of indi- expect each time they encounter the brand. It
viduals, brands cannot advance or exist for a is, therefore, important to make sure that
long period. This is because with their prod- every staff member at every touchpoint is
ucts and services, brands fill a void in users’ aware of these expectations and does their
lives. When there is no brand user, there will best to exceed them. This will build credibility
not be any void to fill and, eventually, there and trust. Satisfied brand users will share pos-
will be no brand. Therefore, it is important to itive word of mouth and refer others to the
understand that the continuous existence of a brand.
brand solely depends on the brand users who
must be satisfied at all times. 1.7.2.3Making a Statement
Consumers also associate with the brand and
1.7.2.1Making Choices use the brand to make a statement: for exam-
When brands strive over many years to create ple, “I am a high achiever” and that is why I
and manage their brands, they can become use Rolls Royce and Rolex; “I cherish my chil-
very well recognised by the customers. This dren’s education”—I send them to universities
helps people to feel more at ease purchasing the abroad; “I care about the environment”—I
product or engaging with the brand. Consumers drive Toyota Prius and drink Fairtrade Coffee.
can evaluate two identical products and decide Consumers align with these brands that share
based on their packaging, the way they are their values, and they will not mind sharing
branded. Branding is important for simplifying this information with their friends and those
decision making and reducing risk. within their network. Consumers buy prod-
Someone who wants to donate to a charity ucts to construct and express themselves, to
may be more interested in donating to repu- identify and connect with many other people
table and renowned global charities instead of using that same product. This aligns with the
one that is not very well known in their city. idea of people buying a luxury product to
Brand users can identify and remember this make a statement about their status. It is not
brand because of the numerous advertise- surprising as well to see some people buy the
counterfeit luxury product because even managing the brand, brand managers of a
1 though they can’t afford the original product, bigger company might not be as invested
they would love to associate with the brand because they can change job, but they never-
that produces that luxury product and having theless also need to know that their business is
a replica of the original product/brand makes at stake if they do not remain innovative, cre-
them feel and look important in society. The ative and engage with changing consumer
brands give such individuals a sense of behaviour.
fulfilment.
1.7.3.2Sustaining the Account
Brand management consultants need to rec-
1.7.3 Brand Managers ognise the importance of branding in order to
sustain their account. They need to make sure
Branding as a marketing prospect is impor- brand owners see value in what they have to
tant for individuals who either work with the offer. Agencies need to be aware of the brand
brand as consultants or agencies, or who work needs and how best to make sure they remain
with the brand as employees or owners. The viable and vibrant in their market. In sustain-
success of the brand will also determine the ing the business, they may also see possibili-
success of their career. Brands that no longer ties to bring in a new account that may not
exist, like Kodak and Blackberry, once had have considered the need for a branding
brand managers and agencies working for agency. These are all efforts towards sustain-
them, but because of ineffective brand man- ing their account through the value of services
agement, their career was also impacted. they have provided to their established clients
or aim to provide to a prospective client.
1.7.3.1Sustaining the Business The importance of branding cannot be
Specifically, for brand owners, brand manag- overemphasised. Branding adds value. It
ers and employed brand managers who are increases the equity of a brand. The brand
working with the brands, their brand manage- owners, irrespective of their size, will want
ment strategy must be well under control in their brand to grow and expand, and they
other to sustain the businesses they own and need users to buy into their purpose and value.
work with. While the owner (of a start-up Brand managers need to be on board to make
company) might solely be responsible for sure there is alignment.
Case Study 1.3: Brunei
Brunei is a country located on the north coast there was a call for travellers to boycott Royal
of the island of Borneo in Southeast Asia. In Brunei Airlines. After just 1 month, Brunei
April 2019, the country planned to introduce backtracked on enforcing the law. This high-
harsh punishment for those convicted of gay lights how brand users (those who use the
sex. Considering that there is growing global hotels and airline) can transfer their negative
support for equal opportunity for gay couples, experience into boycott, which can affect the
there was a huge backlash against the country brand. One in five UK consumers boycott
(Brunei) and many of their brands. Celebrities brands. This highlights that brand users expect
such as George Clooney asked people to boy- a lot from their brand and if the brand is not
cott the Dorchester Collection, a chain of doing what is right, the users might walk away.
hotels owned by the Sultan of the country. This can present huge financial implications for
Companies like JP Morgan also told their staff the brand and importantly the brand reputa-
to avoid Brunei-owned hotels in the wake of tion may be damaged.
the new laws. You can read more on Twitter as Reflect on this. There is the country
many people voiced their concerns. Likewise, (Brunei), the Sultan (leader of the country—
1.8 · Prospective Brand Manager
19 1
Hassanal Bolkiah) and the brands of the coun- Reflective Questions

try (Dorchester Collection and Royal Brunei 55 Can you explain the relationship
Airlines). Many people were angry about the between the country as a brand
laws made by the country’s leader but this had (Brunei), the Sultan as a brand (leader
repercussions for the country’s brands. This of the country—Hassanal Bolkiah) and
demonstrates that the actions of the stakehold- the Dorchester Collection and Royal
ers can have a positive or negative effect on Brunei Airlines (brands owned/associ-
brands. Spare a thought for the Royal Brunei ated with the Sultan’s leadership)?
Airline brand manager who needed to manage 55 How do you think the boycott may have
their brand in the wake of the backlash. The affected the Dorchester Collection and
manager had no control over the laws in Brunei, Royal Brunei Airlines?
the manager might not have even been a citizen 55 Would you boycott a brand because of
of Brunei, yet it was paramount to position the the action of the brand owner?
brand in a positive light so they could compete
with British Airways (UK) or Etihad (UAE).
1.8 Prospective Brand Manager firm or company as assistant brand manager

(most likely to be the point of entry), knowl-
While you may be studying different modules edge and practical demonstration of skills are
and courses as part of your university degree, necessary.
it is important to consider the future career
prospects attached to this theoretical knowl-
edge and understanding. You might ask your- 1.8.2 Creativity
self, what am I going to do with this knowledge?
Well, what are your prospects as a brand This is doing things in an unusual way to
manager? You could run your own business, achieve outstanding results. Creativity can be
work with a friend or family to help them with in the form of managing the meagre resources
the brand or find employment within a com- of a company to achieve the intended goals
pany or agency. You need to be aware of some and objectives for the brand at a point in time.
key points as you consider your future. Here The brand manager needs the ability to think
are some insights for you to have an overview beyond the usual and find a way to engage
of some of the opportunities before you delve with innovative ideas to develop the brands.
further into the book. This is important for sustaining the brand you
are working for and your career progression!
1.8.1 Career
1.8.3 Critical Evaluation
A career as a brand manager is worth pursu-
ing, you get to work on brands, see them grow This is an important skill for a prospective
and engage with different stakeholders. You brand manager. You need to develop your
can easily see the rewards of your hard work. skills in critically analysing branding situa-
However, you need to be open-minded, eager tions, identify what the problem is and be able
to learn and be proactive. You need to recog- to address it. Decision-making is also impor-
nise that knowledge is important. Either as a tant, to recognise who to work with and when
freelance brand consultant or working with a to work with them.
1.8.4 Communication AMA. 2020. Branding. https://www.ama.org/topics/

1 branding/. Accessed 8 Aug 2020.
Badenhausen, K. 2018. The world’s most valuable
This is critical, especially as you will be work- brands 2018: By the numbers. https://www.forbes.
ing with different stakeholders. Team commu- com/sites/kurtbadenhausen/2018/05/23/the-worlds-
nication and interpersonal relationship skills most-v aluable-b rands-2 018-b y-t he-n umbers/#
are needed for a prospective brand manager. 3d393d4d2eed. Accessed 8 Aug 2020.
Cuccinello, H. 2019. Elon Musk’s net worth falls $770 mil-
You should be able to work with different lion after Tesla’s botched Cybertruck debut. https://
people and get your points across, either ver- www.forbes.com/sites/hayleycuccinello/2019/11/22/
bally or orally. You can develop these skills by elon-musk-n et-worth-c ybertruck/#33028c9573aa.
working in groups and engaging in-class tuto- Accessed 8 Aug 2020.
rials and live briefings. As a brand manager, Flandreau, M. 2016. Who is the Starbucks siren?
https://stories.s tarbucks.c om/stories/2016/who-i s-
you must communicate the goals of the brand starbucks-siren/. Accessed 8 Aug 2020.
to the staff and ensure they follow them. You Interbrand. 2020. Methodology. https://www.
must also be open to feedback and clear the interbrand.c om/best-b rands/best-g lobal-b rands/
air whenever there are misunderstandings. methodology/. Accessed 8 Aug 2020.
Keller, K. L. 1993. “Conceptualizing, Measuring, and
Managing Customer-Based Brand Equity”. Journal
of Marketing 57 (1): 1–22.
1.8.5 Consumer Behaviour Keller, L. 1998. Strategic brand management: Build-
ing, measuring, and managing brand equity. Hemel
Prospective brand managers must recognise Hempstead: Prentice-Hall International.
that consumer behaviour is changing, and Keller, K. L., & Lehmann, D. R. 2006. Brands and
branding: Research findings and future priorities.
they need to identify how best to engage with Marketing Science, 25(6), 740–759.
these customers. Branding strategies may no Klara, R. 2019. Why it took Lay’s 2 years to redesign a bag
longer work for some groups of the market. of potato chips. https://www.adweek.com/brand-
Consumers are getting more demanding of marketing/why-it-took-lays-2-years-to-redesign-a-
their brands; brand managers must recognise bag-of-potato-chips/. Accessed 2 Feb 2020.
Kotler, P., L. Keller, M. Goodman, M. Brady, and
these changes and strategise to meet the brand T. Hansen. 2020. Marketing management. 4th Euro-
users’/customers’ demands. You need to pean edition. New York: Pearson.
develop research and data analysis skills to Merz, M., Y. He, and S. Vargo. 2009. The evolving brand
understand these changing behaviours. logic: A service-dominant logic perspective. Journal
of the Academy of Marketing Science 37 (3): 328–344.
Morrison, C. 2018. Tesla loses $2bn in market value
►►Student Activities
after Elon Musk refuses to answer “dry” questions
1. Name some brands you know. What are on finances. https://www.independent.co.uk/news/
your perceptions of these brands? business/news/tesla-elon-musk-value-latest-profit-
2. How would you describe the difference finances-q uestions-forecast-s pending-a 8333931.
html. Accessed 8 Aug 2020.
between brand, branding and brand
Neumeier, M. 2006. The brand gap: How to Bridge the
management? Distance between Business Strategy and Design,
3. Would you consider yourself as a brand? If Berkeley, CA: New Riders.
so, describe yourself as a brand. Reints, R. 2018. Colin Kaepernick pushes Nike’s mar-
4. What is the importance of branding for a ket value up $6 billion, to an all-time high. https://
fortune.c om/2018/09/23/nike-m arket-value-c olin-
human brand?
kaepernick-ad/. Accessed 8 Aug 2020.
5. How can brands drive innovation and cre- Riezebos, R. 2003. Brand management: A theoretical and
ativity as part of their branding strategies? ◄ practical approach. Harlow: Pearson Education.
Superbrands. 2020. Superbrands 2020. https://uk.
superbrands.com/. Accessed 8 Aug 2020.
References Vallaster, C., and S. Von Wallpach. 2013. An online dis-
cursive inquiry into the social dynamics of multi-
Aaker, D. 1991. Managing brand equity. New York: Free stakeholder brand meaning co-creation. Journal of
Press. Business Research 66 (9): 1505–1515.
Aliaj, O. 2020. Social media influencers named as stock Wheeler, A., & Wheeler, A. R. 2003. Designing brand
market listing risk factor. https://www.ft.com/ identity: A complete guide to creating, building,
content/0dacea5c-3 402-1 1ea-9 703-e ea0cae3f0de. and maintaining strong brands. Hoboken, NJ: John
Accessed 8 Aug 2020. Wiley & Sons.
21 2
Ethical Branding
Contents
2.2 What Is Ethical Branding? – 25
2.3 Ethical Brands – 26

2.3.1 eneralised Brand—Certified B Corporations – 26
G
2.3.2 Specific Product—Fairtrade – 26
2.3.3 Specific Industry—Ethical Fashion Guide – 27
2.4 Misconceptions About Ethical Branding – 27

2.4.1 ot Just About Climate – 27
N
2.4.2 Not Just About Consumption – 27
2.4.3 Not Just About Corporate Social Responsibility – 28
2.4.4 Not Just About Charity Organisations – 28
2.5 Considerations for Ethical Branding – 28

2.5.1 T he Brand Values – 28
2.5.2 Sourcing – 29
2.5.3 Production – 30
2.5.4 Packaging – 31
2.5.6 Inclusivity – 32
2.6 Benefits of Ethical Branding – 33

2.6.1 ustomer Loyalty – 33
C
2.6.2 Brand Extension – 33
2.6.3 Brand Association – 33
2.6.4 Satisfied Workforce – 34
2.6.5 Corporate Reputation – 34

2.7 Challenges of Ethical Branding – 34
2.7.1 ultifaceted – 34
M
2.7.2 Traceability – 35
2.7.3 Difficult to Integrate – 35
2.7.4 Expensive – 35
2.7.5 Time-consuming – 35
2.8 How to Go About Ethical Branding – 36

2.8.1 ecognise What Is Ethical Branding – 36
R
2.8.2 Brand Audit – 36
2.8.3 Adjust – 36
2.8.5 Staff – 36
2.8.6 Consumers – 37
2.8.7 External Stakeholders – 37
2.8.8 Integration – 37
2.8.9 Monitoring – 37
2.8.10 Advocate – 38
2.8.11 Report – 38
2.8.12 Corporate Social Responsibility – 38
2.9 Conclusion – 40
References – 41
Ethical Branding
23 2
When we last saw Alex, Code and Sam, they Alex agrees with the others. Although their
had just joined a gym. A week later, the friends funds might be limited, they will only work
meet up. Alex shares the progress of their with ethical brands. They all agree that the
charity project with the other friends, telling higher financial cost is compensated by the
them how ethical and considerate ways to good they do in return. Ethical challenges and
raise money are an essential part of it, as well ethical engagement will be the focus of this
as how to spend the money prudently. Alex chapter. For a charity, an ethical dilemma
wants the charity to exude integrity, to be could be whether to accept a donation from
mindful and of a good character, earning the an individual or not. Alex may be starting out
trust of donors. Code shares these interests as as a charity and in need of money, but to what
well, highlighting a different challenge with extent will they go to get the money? Alex has
the suppliers for the manufacturing business. some personal principles which may be a
In their business they have decided to use rep- guide in making decisions, but that is not a
utable suppliers who do not use child labour guarantee that they will be the right decisions.
and who take care of their staff and the envi- Businesses want to make profit and this desire
ronment, as opposed to cheaper, unethical will make Code consider some actions, such
alternatives. Sam gives them the multinational as, should they save the environment through
perspective. That is, that it might be difficult sustainable packaging, even though it may be
for a bigger brand to monitor ethical prac- expensive? How about Sam: What is her com-
tices. Acknowledging that many businesses pany’s stance on corporate social responsibil-
consider ethical practices important, as a ity? Irrespective of your brand, there are
brand manager, Sam is working on making ethical dilemmas that need to be considered
sustainability an integral part of the business. and decisions that need to be made.
24 Chapter 2 · Ethical Branding
2.1 Introduction
Overview
Doing business the right way is important Increasing socio-cultural expectations, the
2 but often the question is: What is right? integration of social media in brand engage-
Ethics is not something that should be left ment and advocacy and consumers’ changing
and just considered as an afterthought. behaviour have given rise to more questions
Ethical actions should be integral, inherent about the role of ethics in an organisation.
and intentional. It should be fully inte- There is the continued growth of consump-
grated into the activities of the brand. This tion ethics and consumers’ ethical concerns
chapter will focus more on business ethics, (Carrington et al. 2020; Newholm et al. 2015).
which cover ethical branding, and less on While brands exist in society, they have their
consumption ethics, which explain how business goals and aligning both sets of values
consumers engage with products based on results in “changing views of the ‘proper’
their ethical values. This chapter further places for economic and social value creation”
explores what ethical branding is and what (Wilson and Post 2013, 718). Frankenberger
are the ethics of brands, and some miscon- et al. (2014) recognise a shift from the usual
ceptions will also be addressed. We will business model for brands towards more open
look at the key considerations of ethical business models that consider multiple stake-
branding and see how the importance holder concerns around the environment, sus-
brands place on being ethical in their activi- tainability and consumption.
ties is a justification for doing what is right, These ethical considerations reflect vari-
even though it might be expensive. This ous expressions, concerns and issues across
then leads to the exploration of the chal- individuals, groups and socio-spatial contexts
lenges brands may face as they aspire to be (Caruana et al. 2016; Chatzidakis et al. 2012).
more ethical. Importantly, this chapter will They pose questions around business ethics,
consider how to go about ethical branding, raising concerns about what companies are
recognising that it is a long-term strategy. doing and how they are doing it. From a
brand management perspective, there are
questions about the role of ethics in branding
and ethical brands as businesses seek to appeal
? Key Question to or avoid the gaze of the ethical consumer
What is the economic, social and environ- (Carrington et al. 2020).
mental impact of a brand? As brand managers, it is essential to have a
holistic view of the activities of the brand and
n Learning Outcomes explore how ethical the practice has become
At the conclusion of this chapter, you will (Mogaji et al. 2020). This is a contemporary
be able to issue in brand management that needs to be
55 describe ethical branding and ethical recognised and dealt with. Managers must
brands; begin to take responsibility for how ethical
55 give examples of different misconcep- their brand is. This is not just limited to the
tions about ethical branding; more established and global brands, but even
55 recognise the different considerations encompasses human brands; people need to
for ethical branding; take responsibility for their behaviour.
55 describe the prospects and challenges Ethics need to be a priority. Ethical actions
of ethical branding; and need to be integral, intentional and fully inte-
55 explain how to go about ethical grated into the activities of the brand. It’s
branding. such an important topic it should be no sur-
2.2 · What Is Ethical Branding?
25 2
prise that we are discussing this immediately This definition highlights the fact that eth-
after the Introduction to Brand Management. ical branding is a non-stop business practice.
Before going into detail about branding, it is No brand is perfect. Instead, there is a con-
essential to put ethics at the foundation of our tinuous strive towards perfection as an ethical
knowledge about branding and activities brand. Also, the process is conscious in the
around branding. sense that the brand knows what they must do
and deliberate because they are trying to do it.
Some brands may be aware of the need to be
2.2 What Is Ethical Branding? ethical; they have seen their competitors get-
ting recognition, but they are not ready to
As I have described branding as a process, a make that deliberate commitment.
conscious effort to make a brand, to build Morality may be relative for brands as
reputation, stand out from competitors and there may be some confusion between ethics
be recognised, ethical branding takes brand- and legality. In addition ethical values vary
ing to a different level. In the Cambridge between individuals and organisations, and
Dictionary, ethic is defined as “a system of between different cultures, and they change
accepted beliefs that control behaviour, espe- over time (Fan 2005). Notwithstanding this
cially such a system based on morals.” Ethics debate, it is essential to note that during the
deal with what is moral, deciding on what is process of ethical branding, brands must try
good and bad. Ethics are a guiding philoso- to be honest, accountable and committed.
phy on how to do things, recognised within a They should ensure they are not causing harm
group. to humans (avoid slavery, child labour), harm
It’s difficult to present a universal agree- to animals (killing for fur, animal testing) and
ment on what ethical branding is. Fan (2005) harm to the environment (sustainably sourc-
considered ethical branding as a subset of ing material and disposing of waste).
ethical marketing, which relates to certain The contribution to society is also crucial.
moral principles that define right and wrong Brands operate within society and therefore,
behaviour in branding decisions. they should make a positive impact. They
The definition of ethical branding is exam- should adopt the triple bottom line framework
ined in the context of that covers three dimensions of organisa-
1. morality, tional contribution—economic, environmen-
2. conscious and deliberate effort to be tal and social (Chabowski et al. 2011). This
moral, and also aligns with 17 Sustainable Development
3. economic, social and environmental Goals (SDGs), which were adopted by the
responsibilities. Member States of the United Nations in
September 2015 as part of the 2030 Agenda
This is vital in order to recognise how com- for Sustainable Development (UN 2020).
plex this topic may be and to help you to grasp These goals are designed to, among other
the different elements as we explore this topic. things, end all forms of poverty, fight inequal-
Ethical branding can be defined as a con- ities and injustice and tackle climate change.
tinuous, conscious and deliberate process Ethical branding is about delivering the
taken by a brand to do what is morally right, company’s responsibility and its moral obliga-
which includes not harming people, animals tion to society (Maignan et al. 2005). The
and the environment and making an environ- focus here is on brands making the conscious
mental, social and economic contribution to effort to be ethical. Shewan (2020) writes that
society. It also has to do with considering the it is a long-term strategy of continuing educa-
negative and positive impacts that the action tion, campaigning and activism. It is about
or inaction of a brand can exert on people, the helping consumers make better, more con-
environment, animals, society, race and so on. scious choices about the products they buy
and the stores they frequent. It is about chang- 2.3.1 Generalised Brand—Certified
ing the way we think about how goods are B Corporations
provided, the people who make and sell the
2 things we buy every day, and the communities Certified B Corporations are social enterprises
that rely on fair, ethical trade to survive. It is verified by B Lab, a non-profit organisation.
about cultivating brand loyalty by aligning B Lab certifies companies based on how they
your organisational values with those of your create value for non-shareholding stakehold-
ideal customers. ers, such as their employees, the local com-
munity and the environment. The brands
are given an Overall Impact Score based on
2.3 Ethical Brands their Governance, Workers, Community,
Environment and Customers. This body certi-
Ethical brands are brands that have been ethi- fies a generalised brand list across the world,
cal in their activities. Ying Fan explains that: with 3200 companies from 150 industries
“an ethical brand should not harm public across 64 countries.
good; instead, it should contribute to or help Certified B Corporations are businesses
promote public good” (Fan 2005). They are that meet the highest and rigorous standards
sometimes described as brands with a con- of verified social and environmental perfor-
science. An ethical brand is different from mance, public transparency and legal account-
ethical branding. An ethical brand is consid- ability to balance profit and purpose. B Corps
ered an entity, while ethical branding is a pro- are accelerating a global culture shift to rede-
cess (of becoming an ethical brand). It is an fine success in business and build a more
ongoing and long-term process. inclusive and sustainable economy. Identifying
The concept of ethical brands can be very as a B Corporation is a way to publicly claim
relative and subjective as the brand may want an identity as an organisation interested in
to claim they are ethical, often communicat- both shareholder and stakeholder success.
ing how ethical they are, albeit without exter- One key driver is the increasing effort of more
nal validation. Questions, therefore, remain: conventional profit-driven companies to be
What is an ethical brand? Who decides? seen as “green” and “good,” these brands
55 Is it the brand? Saying “we are ethical, we want to join the movement of creating a new
are doing the right thing (to the best of our economy with a new set of rules and redefine
knowledge and ability).” the way people perceive success in the business
55 Is it the customers? Saying “we see what world (Kim et al. 2016).
you are doing, and we say you are ethical,
and we will tell our friends about you.”
55 Is it a third party? Saying “we have col- 2.3.2 Specific Product—Fairtrade
lected evidence, spoken with staff, custom-
ers and other stakeholders and we certify The Fairtrade Mark is the symbol of the
you are an ethical brand.” international Fairtrade system—and the most
globally recognised ethical label. This mark
Below are three different third parties that is given for specific Fairtrade products listed
certify ethical brands. The first works with all in . Table 2.1. Fairtrade Standards ensure
brands provided they can demonstrate their fairer terms of trade between farmers and
impact. The second endorses selected prod- buyers, protect workers’ rights and provide
ucts which are used by the brands. It ensures the framework for producers to build thriving
the supply chain has been certified for fair farms and organisations.
trade between the brand and the producer. According to Fairtrade, their standards
The third specifically focuses on the fashion require the company to “bring social rights
industry, it offers consumers opportunities to and security to its workers. Some of the core
select ethical brands based on an ethical fash- elements are training opportunities, non-
ion guide. discriminatory employment practices, no child
2.4 · Misconceptions About Ethical Branding
27 2
.. Table 2.1 Fairtrade products
Bananas Cotton Honey Sugar

Carbon Flowers Nuts/oils Tea
Cocoa Fruit/juices Quinoa Textiles
Coffee Gold Rice Vegetables
Composites Herbs/spices Sports balls Wine
Source: Fairtrade (2020)
labour, no forced labour, access to collective well, should reduce the extent of worker
bargaining processes and freedom of associa- exploitation and environmental harm (Ethical
tion of the workforce, conditions of employ- Fashion Guide 2019).
ment exceeding minimum legal requirements,
adequate occupational safety and health
conditions, and sufficient facilities for the 2.4 isconceptions About Ethical
M
workforce to manage the Fairtrade Premium. Branding
Fairtrade standards include requirements for
environmentally sound agricultural practices. Brands are taking action towards being ethi-
The focus areas are minimised and safe use cal. Likewise, consumers recognise ethical
of agrochemicals, proper and safe manage- brands; however, here are some misconcep-
ment of waste, maintenance of soil fertility tions about ethical branding that need to be
and water resources, and no use of geneti- considered. Ethics covers quite a multitude of
cally modified organisms (GMOs)” (Fairtrade remits and cannot be limited to a business
2020). decision or social issues. Ethical branding
Products carrying the FAIRTRADE covers all brand activities, expecting all-round
Marks have been certified against the criteria goodness from the brand.
in the Fairtrade Standards. If the criteria are
not met, a producer organisation can face sus-
pension until remedial action can be under- 2.4.1 Not Just About Climate
taken and verified, or ultimately be decertified.
While protecting the environment is para-
mount, it is important to know that ethical
2.3.3 Specific Industry—Ethical branding is not just about sustainability, cli-
Fashion Guide mate change or the environment. Ethical
brands recognise the holistic approach and
The Ethical Fashion Guide is a companion to implications of their business activities, which
the Ethical Fashion Report. You can use it to may impact the environment, but they are not
help you make everyday ethical purchasing limited to just that.
decisions. The grades awarded by the Ethical
Fashion Report are a measure of the efforts
undertaken by each company to alleviate the 2.4.2 Not Just About Consumption
risks of forced labour, their effort to ensure
that workers are not exploited in their supply In addition, it is important to recognise that
chains. The guide also ensures that these ethi- ethical branding is not just about the con-
cal brands are not harming the environment. sumption of food (e.g. Fairtrade, organic,
Higher grades are given to companies with vegetarian and plant-based alternatives, and
ethical sourcing systems that, if implemented free-range eggs), fashion or travelling. While
these are all important, it can be seen as the Any brand that engages in, and with, society
consumers’ choice and responsibility to take needs to be ethical in their business activities.
action and decide not to consume brands they The big brands have their responsibilities and
2 feel are not ethical. This, however, may affect likewise, the growing brands. Any brand can
the brand and they may decide to take action. become a damaged brand if they act unethi-
Brands may recognise the increasing desire of cally. Now we have addressed these miscon-
consumers to buy ethical products and, as a ceptions, in the next section we will explore
consequence, decide to improve how products the key considerations for ethical branding.
are being sourced, staff are being treated and
information is being communicated.
2.5 Considerations for Ethical
Branding
2.4.3 ot Just About Corporate
N
Social Responsibility It is essential to reiterate that ethical branding
is a process which encompasses all the ele-
There is a relationship between business and ments that are essential to building and main-
society. Brands are expected to be socially taining the reputation and positive perception
responsible; they are expected to contribute to of the brand. Ethical brand management is,
society and make their impact known. therefore, considered across various sections
Theoretically, brands are expected to accept of the brand activities.
their social responsibilities as an ethical obli-
gation above any other consideration (Garriga
and Melé 2004), but there is more to ethical 2.5.1 The Brand Values
branding than corporate social responsibility
This is the inherent personality and philoso-
(CSR). Though essential, CSR does not nec-
phy of the brand. Ethical brands are not just
essarily demonstrate the brands’ stance
ethical for the sake of business, but deep
towards ethical branding. CSR could be vol-
down, ethics are inherent in their structure.
untary or mandatory, depending on the brand
This often comes from the founding princi-
and the industry in which they operate. Brands
ples, purpose and objectives of the brand.
that are polluting the environment from oil
Right from the beginning, the brand has
spillage or manufacturing their products using
decided always to do the right thing, to make
child labour may still be doing charity events
an impact and be responsible. These brand
and contributing to society. That does not
values are not just abstract, but they are dem-
make them ethical brands. CSR cannot be
onstrated in all business activities. Ethical
used to overshadow the unethical practices of
brands do not just say it, they do it. Patagonia
the brand. Clare Carlile, from Ethical
is a US clothing brand that sells outdoor
Consumer, noted that Shell Energy might be
clothing and is an “activist company.” The
touting renewables for the British public, but
brand recognises that earth is under threat of
it remains part of the largest oil company and
extinction through human activities.
the fourth biggest polluter in the world (Carlile
Patagonia has recognised the need to use the
2019).
resources they have—their business, invest-
ments, voice and imaginations—to do some-
thing about the threat of extinction facing the
2.4.4 Not Just About Charity earth. Their brand purpose is to build the best
Organisations product, cause no unnecessary harm, use
business to inspire and implement solutions to
Ethics in branding is not just about the non- the environmental crisis. This is a brand that
profit organisations. Ethics is not limited to wants to be evaluated and perceived by soci-
social enterprises or charity organisations. ety based on its moral grounds and not just its
2.5 · Considerations for Ethical Branding
29 2
economic value and financial contribution to Many animals are farmed and killed to
society. supply fur for the fashion industry, and many
people feel that their welfare is an integral
part of the Ethical Fashion debate (V&A
2.5.2 Sourcing 2020). There are also growing concerns, wide-
spread opposition and disgust about animal
This often applies to how service and product testing for cosmetic products. The European
components are being sourced. For those run- Union introduced a ban on the testing of
ning a cleaning business, how are they sourcing finished cosmetic products (shampoo, make-
their staff ? For those making chocolate, how up, toothpaste etc.) on animals in 2004.
are they sourcing their cocoa? There are con- Campaigners feel that brands should not
cerns about the way some of the big companies support the needless torture and killing of
are destroying the earth in search of palm oil. animals to produce cosmetics and household
For over 10 years, Greenpeace has been mak- products. Many brands have decided against
ing the palm oil industries clean up their act. animal testing. They include LUSH, Natures
They have exposed how big brands like Nestlé, Organics and The Body Shop. SAFEshopper,
Unilever and Mars are using “dirty palm oil from New Zealand and Beauty Without
from forest destroyers.” Greenpeace created an Bunnies from the United Kingdom have a
advertisement in 2018 to raise awareness about selection of cosmetic and household prod-
the threat to the survival of orangutans from ucts that have not been tested on animals and
palm oil plantations (Ibrahim 2018). deemed ethical. Fashion brands may want to
Likewise, the Niger Delta area of Nigeria consider that list, but it is essential to recog-
has suffered oil pollution and spillage as the nise that it is not the sole decision of a brand
oil companies are extracting crude oil from manager. The manager may want it, but the
these areas and thereby destroying their envi- production and testing of the brand may
ronment. The land has become un-farmable make it impossible.
and local drinking water supplies unusable Animals (e.g. orangutans in Indonesia)
following oil blowouts, spillages, oil slicks and and humans (e.g. those impacted by oil extrac-
other pollution. In 2012, members of the tion in Nigeria) are suffering due to the actions
Bodo community in Nigeria filed a lawsuit of these brands. Brands need to be mindful of
against Shell in London High Court. This how they source their raw material so as not
community have experienced loss of liveli- to harm the environment or humans. Fairtrade
hoods and land. The general wellbeing has and Oxfam are doing great work in this area
been affected by oil spillage. In 2015, Shell to ensure that products are responsibly
had to accept responsibility, agreed to a £55 sourced, the environment is not destroyed and
million out of court settlement and to assist in the local producers are well compensated for
cleaning up the spillage in the community. their effort.
Case Study 2.1: Yala
YALA was founded by Audrey Migot-Adholla Every element of Yala, from production to
in 2017. The brand manufactures jewellery. It packaging, connects back to the brand pur-
sources and produces its products in Kenya— pose, which is Modern · African · Ethical. Yala
in low-tech, environmentally friendly work- is built on social values; to improve the lives of
shops while their leather trinket trays are made others by creating financial opportunities for
in a Fairtrade certified workshop near the skilled artisans, demonstrating their talent,
Maasai Mara in Kenya. It was the first jewel- while maintaining a low environmental impact.
lery brand in the United Kingdom to achieve B Yala works with over 150 artisans in Kenya,
Corp Certification. ensuring they receive fair wages, operate in safe
and made from recycled materials, with soy-

based inks and acid-free FCS certified paper.
2 Every order contains a care card and a gen-
tle request for the recipient to recycle all pack-
aging except the jewellery box. Yala creates
jewellery that is designed to last; collections are
handmade in small batches to reduce environ-
mental impact and ensure quality (. Fig. 2.1).
YALA aims to operate as close to zero waste as
possible and do not want any of its products to
end up in a landfill site.
.. Fig. 2.1 Handmade jewellery from Yala. (Used
YALA also has a Reclamation Programme
with permission from Yala. Photography by Louis
Nderi) for any customer who decides that they have
enjoyed the product but no longer wish to keep
it. Most of the jewellery’s components can be
and healthy work environments, and get real
reused and recycled to make another beautiful
recognition for their talent. The additional
item.
income they earn there has a positive effect on
over 300 households in the area due to family Reflective Questions
dependencies. 55 Why do you think it is important for
Each piece is traceable, from design to YALA to declare how they source their
delivery, using raw materials that are sourced products?
ethically. Pieces are handcrafted in Kenya, 55 Why is it important for YALA to edu-
using recycled brass, reclaimed cow horn and cate their customers about recycling
surplus leather. The intricate designs also fea- their packaging?
ture glass beads, recycled threads and gold-fill 55 How important would you consider the
components. Yala’s packaging is plastic-free Reclamation Programme from YALA?
2.5.3 Production avoided if they are to ensure they duly observe

ethical branding and become an ethical brand.
Now we move away from the sourcing of the Likewise, for service providers, it is para-
raw material to the production of goods and mount to be mindful of those providing the
services. It is important to know that this is services, be it a car wash or a beauty salon,
not just limited to the production of a prod- slaves should not be used in providing these
uct but also recognising the workforce on the services; staff should be treated with respect
production line and how services are ren- and dignity. A brand cannot offer services
dered. Workers should not be exposed to haz- that have been subsidised by unpaid labour. In
ardous chemicals with dire environmental addition, the disposal of the waste product
impacts. There are concerns about the use of during and after production needs to be con-
child labour and sweatshops. In as much as sidered. Clothes manufacturing brands often
brands want to be affordable, it is not ethical use numerous chemicals that are then released
to exploit those working on the product, and into the water or air, seriously damaging the
brands need to avoid the use of these unethi- environment. Brands should ensure a reduc-
cal workforces. Anything that could make the tion in their waste product, try to recycle and
brand exploit a situation, people, environ- adopt a sustainable way of disposing of their
ment or consumers in order to produce at a waste product. This also includes CO2 emis-
lower rate and maximise their profit must be sions and other greenhouse gases. Brand
2.5 · Considerations for Ethical Branding
31 2
managers need to be aware of these details in
the business activities as a backlash from these
unethical practices will affect the brand.
2.5.4 Packaging
Some brands have decided not to use plastic

bags for their packaging. This is because they
want to be more environmentally friendly
and sustainable. Likewise, many brands are
considering changing their packaging with
.. Fig. 2.2 Sustainable toothpaste packaging design
knowledge about the implications. Some called Coolpaste. (Source: Allan Gomes)
brands like Amazon, Jumia, AliExpress, have
been accused of not being prudent with the
way they package the products they sell—the 2.5.5 Communication
excessive use of cardboard, paper and plastic
bags. Campaigners and consumers feel that Ethical branding requires that brands are
this packaging is not sustainable and harms moral and truthful in their communications.
the environment even though Amazon claims This starts with their marketing communica-
their packaging is recyclable. Packaging is a tions—ensuring that they are decent, honest
key element of branding, very important for and not misleading. Consumers should not be
integrating the brand identity and for recog- tricked into thinking they are getting great
nition. With ethical considerations in mind, discounts, when in fact they are not. It will be
brand managers need to find a more creative unethical for brands to create unrealistic per-
and yet sustainable way of packaging the sonal expectations (Quart 2008). This has
products. This will involve finding packaging implications on, for example, the choice to use
material that can be properly branded and airbrushed images of models for advertising
still protect the product. and a brands’ marketing communications.
McDonald’s has promised to use com- Brands should not lie in order to make sure
pletely renewable, recycled packaging by their brands stand out from others or to be
2025—to make changes the customers want considered in a more positive light.
and to use less packaging, sourced responsi- In addition, the use of celebrities and
bly and designed to be taken care of after use influencers as a means of communicating
(Economy 2020). On the other hand, Coca- should be considered ethically. The brand
Cola said it will not be ditching single-use manager should ensure that the influencer’s
plastic bottles because consumers still want values align with the value of the brand.
them (Thomas 2020), highlighting how chal- Likewise, the brand manager should ensure
lenging it can be for brands to understand and that the influencer is communicating without
implement changes based on consumer behav- misleading or hiding some information from
iour. Allan Gomes of the Federal University the consumers.
of Minas Gerais presented another example The challenges of some ethically con-
of sustainable packaging. Allan designed cerned brands such as tobacco, gambling or
sustainable toothpaste packaging called alcohol are recognised; they will have to adopt
Coolpaste (. Fig. 2.2). The sustainable pack- a different strategy in communicating their
aging does not affect its durability while being brand values and purpose. The wording on
transported or stacked on shelves. the packaging is also an ethical consideration.
It is required by law that tobacco brands indi- how they deal with their product design, prod-
cate the harm their brand may cause. For uct development, communication and engage-
those brands with no such legal obligation, it ment. It is not surprising to see Mars develop
2 is ethical to make sure the information about a billboard advertisement using Braille or
the brand is well communicated. If need be, Sign language for a TV advertisement. Brands
there should be disclaimers, providing enough are being criticised for not having accessible
information for the consumers to make an entrances and not allowing guide dogs into
informed decision. Brands need to ethically stores. In 2020, there was a report of a blind
consider how they communicate with children Paralympian who was considering suing M&S
and other vulnerable individuals. Consider for asking him to put his guide dog outside
Red Bull, does it give you wings? How are five times.
children being targeted to consider energy Brands have also been heavily criticised for
drinks as part of daily lives? These are some staff racially abusing customers. Gabbidon
of ethical challenges for companies as they and Higgins (2020) documented consumer
market their products. racial profiling in America which includes
Following on with ethical communication being excessively monitored in stores and, in
and truthfulness in marketing messages, the worst-case scenarios, falsely accused of
Brands that are not 100% natural should not shoplifting. In 2018, Starbucks had to close its
be presented as such. Brands should ensure coffee shops across the US for an anti-bias
that goods sold (co-created products) or ser- training session after a store manager called
vices provided (franchise for example) under the police on two black men accused of
their brand name are real and authentic. trespassing as they waited in the store.

Consumers should know what they are buy- Likewise in 2019, the beauty chain Sephora
ing, what it contains and perhaps any side had to close its US stores for diversity training
effects that could occur from using the prod- after a racial incident involving singer SZA. In
uct. Withholding this information can lead to 2020, Clicks, South African beauty and phar-
loss and damaged reputation. maceutical retailer had to close their stores in
the wake of violent protests and massive
backlash over a recent hair advert that por-
2.5.6 Inclusivity trayed black women’s hair as “dry and dam-
aged.” The brand manager may be tucked
This ethical consideration acknowledges and away in the office and not aware of how front-
respects the diversity within the society in line staff are engaging with customers.
which brands operate. Inclusivity in brand Therefore, it is important for the organisation
management has to do with how a brand pres- to recognise diversity, and train and support
ents its messages, products, people, communi- staff to deal with this.
cation processes, technologies, services and To further demonstrate inclusivity, brands
everything else that conveys the brand to the are changing their logo, modifying it with the
brand users and the whole of society. It has to LGBT rainbow colour for Pride Week. Brands
do with the way that such characteristics of a need to make sure the team is diverse, there is
brand (messages, products, technologies etc.) equal pay (no gender pay gap) and everyone is
allow underrepresented, marginalised or vul- treated equally (Mogaji 2015). Many brands
nerable groups to fully experience the brand’s have been sued because they have paid women
product and eventually connect with the less than men. This is of growing concern and
brand. Therefore, brands must recognise that brands must be aware of this. Brands are
they engage with different individuals with expected to constantly make the effort to
different expectations. They need to respect ensure everyone has an equal opportunity
this and as much as possible showcase this in regardless of colour, gender, religion or age.
2.6 · Benefits of Ethical Branding
33 2
2.6 Benefits of Ethical Branding brand has demonstrated to consumers that
it is an ethical brand; they have become loyal
2.6.1 Customer Loyalty and more likely to use other brand products.
There are possibilities for greater success for
Consumers are increasingly aware and mind- the brand. There are opportunities for diver-
ful of socially irresponsible behaviour by sification and future growth built on customer
some companies (Mulki and Jaramillo 2011); loyalty achieved through an ethical stand-
they are observing those who are behaving point. TOMS is known for donating pairs of
responsibly and supporting them with patron- shoes to children in need all over the world.
age. Ethical branding ensures that consumers Their ethical branding is well recognised,
are aware of the brand’s ethical practices and and that has helped the brand to extend and
builds the customer loyalty. When a company provide for more people. In 2011, the brand
behaves ethically, they can attract loyal con- launched TOMS Eyewear, partnering first
sumers who feel more passionate about what with the Seva Foundation to expand the one
they are buying. Even though the product for one model which means that for every pair
may be more expensive than another non- of shoes purchased, TOMS gives a free pair
ethical brand, these loyal consumers feel more to someone in need. They also extended with
associated, as they are contributing to improv- the launch of TOMS Roasting Co. in 2014.
ing the environment and doing what is right. In partnership with Water for People, TOMS
They believe the brand’s values align with coffee sales helped to provide safe living con-
theirs, and they become loyal to the brand, ditions and economic prosperity to develop-
ready to pay more to prove a point and key ing communities through sustainable water
into the brand views and sentiment. systems.
Research by Cone Communications (2017)
found that Americans are willing to buy or
boycott companies based on corporate values 2.6.3 Brand Association
as they believe that companies have an obliga-
tion to take actions to improve issues that may While brand extension presents possibilities
not be relevant to everyday business opera- for the brand, ethical branding also brings
tions. The research found that more than eight together brands to form a valuable brand
out of ten people will purchase a product association. Many brands that are mindful of
because the brand advocates for an issue they their ethical business practices will be willing
care about, and more than seven out of ten to partner together. This also includes inves-
people would refuse to purchase a product if tors who are willing to work with brands that
they found out a company supported an issue do good, with the assurance that their money
contrary to their beliefs. Consumers will more is being used in a responsible way. This also
likely align with the brand because of the brings financial benefits as share prices are
shared value. If the consumer feels the brand kept high, and the brands remain valuable. On
is doing right, they will become repeat cus- the other hand, unethical brands will often
tomers. These loyal customers become brand face challenges regarding who they associate
evangelists, giving positive word of mouth with. BP has been sponsoring the Annual
and contributing to the long-term business Portrait Award for London’s National Portrait
success of the brand. Gallery for almost 30 years, but now people
are protesting and asking the gallery to drop
BP’s sponsorship. There are accusations that
the gallery is helping to launder the oil indus-
2.6.2 Brand Extension try’s image through the sponsorship deal while
the oil company aggravates the climate crisis
Another benefit of building an ethical brand by extracting fossil fuels. Even with the best
is the possibility of using the acquired repu- intentions from brands seeking partnership,
tation towards extending the brand. The consumers can raise concerns about the part-
nership with a brand they feel is not doing face more reward than risk when adopting eth-
good for society. However, with an enhanced ical branding (Sprout 2020). Satisfied custom-
ethical practice, there are better chances of ers are willing to share their experience with the
2 finding brands willing to form partnerships. brand. Most of the consumers’ emotional reac-
tions to brands taking a stand on social issues
were positive, with intrigued, impressed and
2.6.4 Satisfied Workforce engaged emerging as the top three consumer
reactions. Likewise, when consumers’ personal
We saw above that ethical branding can lead beliefs align with what brands are saying, 28%
to brand association and there we focused on will publicly praise a company. When individu-
external stakeholders, but satisfied internal als disagree with the brand’s stance, 20% will
stakeholders are another benefit of ethical publicly criticise a company.
branding. Employees will feel more comfort- In addition, a company will avoid any legal
able and productive, and willingly contribute claims that can affect their brand reputation if
more with the knowledge that they are being the brand has taken appropriate care to ensure
treated well by the brands they work with. health and safety of workers; products have
Companies that are fair and open in their been well labelled to give information, and dis-
dealings with employees have a better chance claimers have been well communicated to ser-
of retaining the most talented people (Hill vices users. If supply chains do not use child
2019). This will boost productivity, improve labour and packaging is not dumped in the
customer experience and sales. According to ocean because it is recyclable, brands will be
research carried out by consultancy Global seen as doing the right thing. Such companies
Tolerance, which surveyed more than 2000 will gain integrity, honesty and accountability,
people in the United Kingdom, it was discov- which, in turn, could enhance a company’s
ered that almost half the workforce (42%) reputation and brand loyalty (Fan 2005).
now want to work for an organisation that has
a positive impact on the world (Jenkin 2015).
The satisfied workforce also includes the sup-
pliers, farmers and others within the supply 2.7 Challenges of Ethical Branding
chain working with a brand. They feel reas-
sured that they are being treated with respect 2.7.1 Multifaceted
and dignity as they get paid a good living
wage and ensure their activities do not harm Ethical branding is not just a one-stop shop
the environment. approach, and it is not a tick box or a project to
complete. It is a process which is multifaceted
and multi-layered. This makes it challenging
2.6.5 Corporate Reputation for brands which might want to be more ethi-
cal. There are many areas of the production
Ethical branding ensures a good corporate line and branding activities that need to be con-
reputation and a more positive image in the sidered. For a brand manager, it is essential to
marketplace. The brand will be well perceived understand every stakeholder within the sup-
and more easily attract prospective partners ply chain, to do a risk assessment to under-
and customers. Brands with ethical business stand how the actions of these stakeholders
practices stand out in the marketplace. These can affect or enhance the reputation of the
are recognised through the Fairtrade mark and brand. If it becomes public knowledge that a
the Certified B Corporations. Those who have brand’s supplier (even though supplying for
got these validations can be proud of their many other brands) is engaging in unethical
achievement and effort in building their reputa- practices such as child labour, it can affect the
tion. They retain and attract credibility through brand negatively. In addition, the brand man-
the perception of quality and reassurance that ager is also expected to work with in-house
the brand will always be responsible. Brands stakeholders, including staff and other depart-
2.7 · Challenges of Ethical Branding
35 2
ments, to ensure that the ethical business strat- work. If brand managers focus on the part of
egy reverberates across the organisation. the business chain that is traceable, at least
there will be a sense of control over those
areas. If a brand cannot trace the supplier,
2.7.2 Traceability they can try towards eco-friendly packaging.
The multifaceted nature of ethics branding

presents a challenge in terms of traceability. 2.7.4 Expensive
A brand manager needs to understand the
different stakeholders in the supply chain As brands want to be more affordable and
that may influence the brand. The Ethical save more money, it can be expensive to go the
Fashion Report (2019) found that while 69% route of ethical branding. Having factories
of companies could demonstrate tracing all in developing countries can reduce costs, but
final stage suppliers, only 18% had traced all this comes with the possibility of unethical
inputs suppliers, and just 8% had traced all practices such as child labour and low wages,
raw material suppliers. The report further which help to maximise profit, but are not
highlighted the challenges for brands to know aligned with the values of an ethical brand.
where their inputs and raw materials are being Some brands may decide not to pay attention
sourced. A coalition of civil society groups to what their suppliers are doing, as long as
has warned many of the western brands such they can get it cheaper, and sweatshops may be
as Adidas, Nike, Zara and Amazon of the used. Some brands may decide to use unethi-
“grave risk of forced labour” from the ethnic cal material just to cut costs. Responsibly dis-
Uighurs and other Muslim groups in China. posing of waste, instead of just dumping it
The United Nations has warned about this, in the sea, can also be an additional expense.
the United States has hit senior Chinese offi- Transport can also add to these costs as
cials with sanctions over alleged rights abuses brands may want to use a sustainable route. It
against the Uighurs and the consumers are could be more expensive for smaller brands to
watching, hoping that many brands will cut be ethical as they have a lower profit margin
ties with any suppliers in China that benefit compared to bigger brands.
from forced labour. It is therefore important
for brand managers to understand the mul-
tifaceted nature of this challenge and put 2.7.5 Time-consuming
measures in place to protect their brand. A
small enterprise, for example someone selling Ethical branding is a process, and it requires a
clothes in London, may not have the capacity deliberate effort to achieve it. However, it can
to monitor the supply chain and see how ethi- be time-consuming to do the audits, visit the
cal their suppliers are. It can be challenging to suppliers, change packaging and other com-
manage these multifaceted processes. munications. Ethical practices also need to be
updated, especially as laws are bound to
change, consumer behaviour is evolving, and
2.7.3 Difficult to Integrate with social media coverage, making changes
can be time-consuming. This can even be
Even with a good understanding of all parts more difficult for a brand that did not start
of the supply chain and the ability to trace dif- with ethical practices. The brand manager,
ferent touchpoints, it can be difficult to moni- depending on the size of the brand, may have
tor and integrate across the various supply to work with other consultants to get this
chains, communications and packaging. That done and implemented in time. Bear in mind
is why brand management becomes important though that it is a long process and that cus-
to understand these different multilayers and tomer, and indeed supplier, loyalty and the
this can be a step-by-step approach, making perception of values behind the brand will
at least a small effort at a time to make it develop over the years.
2.8 ow to Go About Ethical

H sure that the supply chain is revisited, prod-
Branding ucts are sourced more responsibility, waste is
properly disposed of, and information about
2 2.8.1 ecognise What Is Ethical
R the brand is communicated well.
Branding
2.8.4 Communication
For brand managers to consider ethical
branding, knowledge in this area is impor- As ethical branding is considered a deliberate
tant. The manager must know what ethical effort to increase the value of a brand and
branding entails, specifically in the industry in ensure a positive perception of the brand, it
which they operate. The manager must know is paramount that these changes and adjust-
which ethical practices need to be upheld. ments are communicated to the stakeholders.
Ethical considerations for a fashion brand In communicating, brands must be aware
will be different from the ethical consideration that some customers or groups of stakehold-
of an architectural firm. Before going in any ers may be more ethically conscious and dis-
strategic direction, it is necessary to have a cerning than others. There are the active
thorough understanding of the ethical stance ethical consumers who do due diligence to
and expectation. find out what the company is doing, and they
can start online petitions, get involved in pro-
testing and share their concerns on social
2.8.2 Brand Audit media. Brands need to understand these dif-
ferent groups as this may have implications
The manager needs to carry out an audit to on their communication strategy. The stake-
understand the different touchpoints for the holders to be communicated with include the
brands that need to be considered from an following.
ethical point of view. They could assess the
production, the supply chain, the packaging
or communication about the brand. The audit 2.8.5 Staff
presents a set of action plans and the direc-
tion for the brand manager to consider. Brand They must be made aware of the changes
managers should identify clear targets based within the organisation. There must be buy-in
on what they hope to achieve. It is vital to and a form of responsibility on the part of the
clearly define goals and measure outcomes as staff. They should demonstrate their under-
it will be relevant in the subsequent stage of standing that the brand is trying to become
monitoring. more ethical. Every department and team
must come on board. For a new brand or
emerging brands, the information needs to be
2.8.3 Adjust communicated and demonstrated by the
brand owner/founder so that the new team or
Awareness of the areas businesses need to new staff know what the brand stands for and
change is not enough. It is crucial to take are able to be a part of it. This should also
deliberate action and to make adjustments in include advertising agencies and brand con-
order to change. The audit reveals where the sultant teams working on/with the brand. For
brand is underperforming, and the manager a bigger brand, this will take much more
needs to act, liaise with those who are respon- effort. Internal communication (newsletters,
sible and get things going. This stage is about intranet and memo) becomes very important
DOING and can be considered the most to show staff the new direction. For a charity
important stage. Not just doing a publicity organisation, volunteers need to be made
campaign but putting actions in place to make aware of the new direction as well.
2.8 · How to Go About Ethical Branding
37 2
2.8.6 Consumers sider providing take-back and repair pro-
grammes, where customers can return their
As the brand is established to cater to the products when they are no longer interested in
needs of consumers, it is thus important that them instead of sending them to landfills. For
the brand engages with the consumers and example, Patagonia has the wornwear pro-
informs them about the changes they are gramme where they invite customers to repair,
making. This is about brand communication. share and recycle their clothes. They take
Consumers may not have noticed that a brand pride in the quality of their gear. Customers
is becoming more ethical without communi- can cut down on consumption and get more
cation. This is more about blowing your trum- use out of things they already own.
pet as a brand. Let the consumers know you
are adjusting, carry them along and engage
them with the developments. The pricing 2.8.9 Monitoring
might change, and that is another reason why
communication should be effective. Social It is not possible to become an ethical brand
media and direct mail will play a key role in over night; it is a continuous process of
communicating these values. rebranding and repositioning, incorporating
ethical and moral principles into the branding
business activities. It is necessary to constantly
2.8.7 External Stakeholders improve business practices and reduce the
impact on the stakeholders. The brand needs
The public, who may not necessarily be cus- to monitor how well they are doing over time.
tomers or users of the brand, must also be There should be audits and evaluations of the
engaged. Brands need to ensure the message business practices. This can also include revis-
reaches those who may be considering switch- iting the supply chain, trying towards reduc-
ing to more ethical brands. As well, brands ing CO2 emissions, evaluating how the brand
need to communicate to regulators, cam- is doing year after year to see if they are mak-
paigners and trade agencies. Brands should be ing any progress.
able to take responsibility and indicate While relying on testing and certifications,
whether they are on time with their plans to brands should be able to trace their ingredi-
improve. The suppliers and every other stake- ents and raw materials through their supply
holder working with the brand need to be chain back to an ethical supplier. Monitoring
informed. They should be made aware of the can be in the form of unannounced audits
brand’s zero tolerance for unfair and unsafe (which give a more accurate picture of every-
working conditions. They need to know about day operations in factories when factory man-
the changes and perhaps the brand will be agers, and others in positions of influence,
given recognition for the initiative. have less warning time to hide abuses), anony-
mous worker surveys or off-site worker inter-
views. Brands should give their suppliers
2.8.8 Integration guidelines to ensure that raw materials are
ethically sourced. Everlane noted that before
This moves beyond just communication but deciding to work with any factory, they always
integrating the revised brand into the minds issue a strict “compliance audit,” which evalu-
of consumers and prospective customers. This ates factors like employee happiness and envi-
involves a strategic approach which can ronmental standards. Brands should also take
include updating websites and product design, responsibility and be aware of touchpoints
running public relations and advertising cam- that can affect their brand’s reputation.
paigns, and using the endorsement of a recog- Brands need to declare their positioning, and
nised body. For this integration, brands, they are encouraged to present sustainability
especially fashion brands, may want to con- reports yearly.
2.8.10Advocate The Ethical Fashion Report (2019) found

that only 29% of companies shared data about
It is important for ethical brands to advocate their brand auditing results with the general
2 for changes, educate people and challenge public. The report noted that it is not a failure
other brands to be more responsible. By chal- if a brand is not fully complying but rather, an
lenging others, they strive to keep their own important step towards greater transparency
standards high and ensure that everyone is and accountability that will drive the improve-
made aware of the benefits of ethical brand- ment. Brands are encouraged to present the
ing. Alison Taylor, Managing Director of list of their suppliers. They are advised to
Business for Social Responsibility (BSR), always be accountable to the board of direc-
asked why American CEOs have been so quiet tors, staff, consumers, the public and the
about the issue of families being separated at workers in their supply chain. This transpar-
the US border, highlighting the need for ency gives the brand more credibility.
brands to take a stance and comment on While it is acknowledged that some brands
issues beyond their usual business operations. are more ethical than others, it is important to
This corroborates findings from a survey by note that this is an ongoing process. A new
the social media management and analytics brand does not become an ethical brand in a
company Sprout Social, titled “Championing day. Although some brands may have it
Change in the Age of Social Media.” The embedded in their DNA by the founder from
research established that the majority of con- day one, it still requires a conscious effort to
sumers want brands to weigh in on social and work on and monitor the process. Managers
political issues. Consumers want brands to get must recognise that this is a long-term pro-
real. The study noted that even though brands cess. With changing consumer behaviour and
cannot change minds, they can impact change environmental needs, the working principles
by getting involved in the conversation. of ethical branding will keep evolving, and
Ben & Jerry have acknowledged that time managers should stay in the loop and manage
is running out and there is an urgent need to their brands effectively.
protect the earth. They created a website to
share information about their campaign titled
“If It’s Melted, It’s Ruined”. They advocate 2.8.12Corporate Social
for sustainability and protection of the envi- Responsibility
ronment.
A physical demonstration of ethical branding
in the form of corporate social responsibility
2.8.11Report is important. Irrespective of the notion
around CSR for window dressing and oppor-
Ethical branding involves taking responsibil- tunity for brands to gain significant advan-
ity and being transparent. Brands should pro- tages (Camilleri 2017), it is still an important
vide an “Impact Report” or sustainability way of going about ethical branding. CSR is a
report, which should be readily available for form of corporate self-regulation integrated
any members of the public who may be inter- into a business model (McWilliams et al.
ested. This document should be made avail- 2006). Brands try to give back to communities
able on the brand’s website and highlight the where they operate. TOMS started giving
economic, social and environmental contribu- shoes in 2006 to children who needed them
tion of the brand. Without making this infor- and they found that a new pair of well-fitting,
mation known, it becomes impossible for the weather-appropriate shoes could raise chil-
public to know if the brand is doing anything dren’s confidence and help them realise their
ethical or otherwise. In addition, brands potential. Another example is brands that
should publish their progress reports, be contribute by supporting farmers who pro-
transparent about where they are struggling duce their raw material with training and
and the effort they are making to improve. business support.
2.8 · How to Go About Ethical Branding
39 2
Case Study 2.2: LUP Committed to Sustianably Maaging Pastic Waste
LUP, founded by Javiera Badilla, Rafael Salas

and Sebastián Santamaría is a design studio
that transforms plastic waste into design and
decoration objects (. Fig. 2.3). They make
flexible fibre from plastic waste, called Fibra
LUP, which is then used to manufacture objects
and design projects (. Figs. 2.4, 2.5, 2.6, and
2.7). They sought to extend the useful life of
plastic and revalue this type of waste. They
form commercial alliances with artisans and
.. Fig. 2.5 Another Fibra LUP. (Image used with

permission from LUP. Photographed by Claudia
Castro Vilugrón)
.. Fig. 2.3 Logo of LUP. (Source: LUP)
.. Fig. 2.6 Artisan making a basket with Fibra

LUP. (Image used with permission from LUP. Pho-
tographed by LUP)
.. Fig. 2.4 Fibra LUP. (Image used with permis- .. Fig. 2.7 Finished products made from Fibra
sion from LUP. Photographed by Claudia Castro LUP. (Image used with permission from LUP. Pho-
Vilugrón) tographed by LUP)
small producers interested in incorporating environmental awareness in our community,

recycled plastic into their production processes, aspiring to implement a zero-waste culture
2 supporting them in the opening of commer-
cialisation channels that do not compromise
gradually in our processes, products and
services.
their patrimonial activity. LUP believes in the We commit ourselves to meet the objectives
need for consumers to evaluate their consump- set in social and environmental matters, and
tion habits and develop an environmental with those entities and people with whom we
awareness that goes beyond recycling and reuse, interact: neighbours, customers, suppliers, arti-
a consciousness that helps everyone understand sans, organisations, and government authorities.
the value, materiality and complexity of things. This commitment is available to anyone
How products are made, who makes them and who requests it.
what happens to them when we do not have
them anymore. Reflective Questions
LUP has a zero-garbage commitment 55 What is the implication of LUP’s commer-
which they have made public and abide by: cial alliances with artisans and small pro-
We commit ourselves to prevent and ducers interested in incorporating recycled
sustainably manage the waste generated in our plastic into their production processes?
production processes, in our workshops and 55 Why should consumers be educated about
support the sustainable production of the com- their consumption habits?
munities that work with us; promoting, with 55 Why is it important for LUP to publicly
our example and with specific plans, socio- declare their Zero-Garbage Commitment?
2.9 Conclusion Brands must try to communicate their

position; they need to acknowledge what they
Ethical branding is important and essential have done and what they are doing; they need
for brands that want to increase their value to recognise and showcase their corporate
while doing good. It makes business sense. social responsibility. Brands must contribute
Though it may be expensive, it is worth it to to society, treat society well and ensure that
incorporate ethics into the activities of the consumers and stakeholders recognise new
brand. This is a process and a long-term strat- brands and their initiatives.
egy, not a one-day affair. Perfection may not It is important for brands to recognise that
be achievable, but the good thing is to work ethical branding is not just for the sake of
towards it. The main aim is to have a world building a loyal customer base or making a
where all brands adopt ethical values and profit. Ethical branding is not about publicity
demonstrate them in their business activities. but recognising the benefits and responsibility
Therefore, ethical branding should not be an they have not only to shareholders, but to
afterthought but an idea that is inherent and society as a whole and the future of the planet.
intentional, and an integral part of the brand. Prospective brand managers need to
Brands need to know that consumers are understand the multifaceted nature of brand
watching; they are watching which brand ethics. It is more than designing a brand iden-
aligns with their values. Competitors are tity or launching a new product. The manager
benchmarking to see how they are doing. must work towards innovation, including
Stakeholders are mindful of who they engage social intent, which ensures that the business
with. With this understanding, brands need to goals and social needs are met through cre-
recognise the possibilities and prospects that ative activities. The manager needs to under-
ethical branding offer. Among many other stand the whole business process, identify
benefits, it brings a loyal consumer base. different areas that can enhance or damage
References
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Chatzidakis, A., P. Maclaran, and A. Bradshaw. 2012.
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Economy, P. 2020. McDonald’s just made a stun-
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needs with their societal expectations to peter-e conomy/mcdonalds-j ust-m ade-a -s tunning-
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43 3
Brand Philosophy
Contents
3.2 What Is Brand Philosophy? – 46
3.3 Components of Brand Philosophy – 47

3.3.1 rand Ethics – 47
B
3.3.2 Brand Values – 47
3.3.3 Brand Heritage – 47
3.3.4 Brand Personality – 48
3.3.5 Brand Origin – 49
3.3.6 Customer Charter – 49
3.3.7 Vision Statement – 49
3.3.8 Mission Statement – 49
3.4 Who Develops Brand Philosophy? – 50

3.4.1 F ounder – 50
3.4.2 Consultant – 51
3.5 When Is Brand Philosophy Developed? – 51

3.5.1 t the Beginning – 51
A
3.5.2 During Growth – 51
3.5.3 Start-Up Growth – 51
3.5.4 Strategic Growth – 52
3.5.5 At Rebranding – 53
3.6 How Is Brand Philosophy Developed? – 53

3.6.1 L ooking Inward – 53
3.6.2 Research – 53
3.6.3 Documenting – 54
3.7 Who Needs Brand Philosophy? – 55

3.7.1 I nternal Stakeholders – 55
3.7.2 External Stakeholders – 55
3.7.3 Customers – 56

3.8 Features of Brand Philosophy – 56
3.8.1 S tatement – 56
3.8.2 Carefully Selected – 56
3.8.3 Actionable – 56
3.8.4 Accessible – 56
3.8.5 Memorable – 56
3.9 Benefits of Brand Philosophy – 57

3.9.1 uiding Principles – 57
G
3.9.2 Continuous Reminder – 57
3.9.3 Distinguished – 57
3.9.4 Positioning – 57
3.9.5 Enhances Credibility – 57
3.10 Considerations for Brand Philosophy – 58

3.10.1 ole of Founder – 58
R
3.10.2 Integration – 58
3.10.3 Recruitment – 58
3.10.5 Refreshing – 59
3.10.6 Reminder – 59
References – 60
Brand Philosophy
45 3
Sam checks her company email in the gym tant to note that that the way a philosophy is
locker room while waiting for the others to developed depends on the nature of the
arrive, and when they arrive, Alex briefly organisation. Having a guiding principle is
shares the new brand values for their organ- essential and relevant in a business, no matter
isation. Alex asks Sam to contribute to the what the business does. In the previous chap-
values. Alex assumes Sam has more experi- ter when the friends discussed ethical dilem-
ence, as a brand manager shaping the philos- mas, they made decisions to do what is right
ophy of a multinational. Sam answers that and they need to establish these decisions
the values were mostly discussed by the CEO now as guiding principles for everyone work-
and other senior management members, but ing on the brands. For Alex, this could be
that the outcome was satisfactory. Sam men- something like a promise to always be pru-
tions truly believing in those values. Alex rec- dent and serve the interest of children in
ognises that they have the power to drive and developing countries by providing educa-
shape the philosophy of their charity organ- tional support. This can be summed up as the
isation and fulfil their promise to assist chil- brand philosophy—a promise, often docu-
dren who lack education, and at the same mented, to stand up for what is right and do
time, stand apart from other organisations. what is right even if it might not be financially
Code, for their part, says it was the three co- rewarding. It’s more like a passion upon
founders who came together and discussed which the business has been built. Consumers
the way forward when the company started. see this passion and enthusiasm, and when
Their future business path was an integral brands fulfil promises, they are more likely to
part of their business. It is therefore impor- remain loyal to the brand.
46 Chapter 3 · Brand Philosophy
stand for something, to be unique and different

Overview even when everyone around you is moving in
This chapter explores brand values which the same direction. There is a need to be dis-
are the guiding principles of a brand. They tinct and avoid jumping on the bandwagon as
provide the strategic direction that staff it can make a person lose their brand. Your
must follow. This chapter will build on the choice of fashion or the type of food you eat
3 brand ethics that were previously discussed may be different from others, and you may
and describe the concept of brand philoso- decide not to engage on social media. That is
phy. The basic components of brand phi- who you are, and people must respect that.
losophy will also be discussed—core values, There are inherent factors that shape how
mission and vision statement of the brand, brands operate. They have their ways of doing
which serve as a promise and set the brand things, which may be right or wrong. That
apart from others. We will look at who aligns with the idea of brand ethics that has
develops it, when it is developed and how it been previously discussed. These guiding
is developed. It is important to recognise as principles could be the drive to make more
well that brand philosophy is industry- money and not take heed of any ethical impli-
specific, and therefore, it should be inter- cations. On the other hand, these principles
preted in that context; however, there are could lead brands to provide better service to
basic features which all brand philosophies assist many others in the form of a charity
should have. These will be relevant for a organisation, without putting profit at the
brand manager working on a new brand or forefront. These guiding principles make
on an existing brand. Finally, we will look brands very different and unique in their
at the benefits and various examples of engagement and offerings.
brand philosophy.
3.2 What Is Brand Philosophy?

? Key Question
What are the guiding principles and core Brand philosophy is taken generally as the
values of a brand? worldview, ethos, values, principles, set of
beliefs and code of ethics that regulates the
n Learning Outcomes overall performance, ambience and culture of
At the end of this chapter, you will be able to an organisation. It also comes into play while
55 describe the concept and components formulating the guiding ethics and business
of brand philosophy; practices of a brand. The brand philosophy is
55 give examples of different components often described as the “True North” of the
of brand philosophy; Brand (Lozano 2012). It points home. It never
55 recognise how brand philosophy is con- changes, and it guides the brand to do what is
ceptualised and developed; right. The brand philosophy is an inherent set
55 describe the benefits of brand philoso- of values that shapes every aspect of the
phy; and brand’s activities. These are the promises that
55 explain the key considerations for inte- the brands have made and always want to
grating brand philosophy. keep. It is the foundation of the brand before
engaging with stakeholders. These principles
are built into the product, expressed in behav-
3.1 Introduction iour and reflected in communication.
Brand philosophy answers the question:
Brands are facing a lot of challenges in a com- What do you stand for?
petitive market, and there is a need for them to For a business owner to answer this ques-
be different and stand out from others. tion, they need to articulates what the brands
Likewise, as previously stated, humans are stand for, what they aspire to be and what
brands, and there is an increasing desire to they hope their consumers will think of them.
3.3 · Components of Brand Philosophy
47 3
What would the consumer say when asked the company’s economic, social and environ-
about the brand? The answer should align mental contribution. Ethics should be at the
with the brand’s philosophy. base of any brand philosophy.
Brand philosophy may be considered as an
abstract form of a brand identity. Often, it is
not seen but experienced. Unlike Brand 3.3.2 Brand Values
Identities (logos) or products which are visual
and you can associate with a brand, the brand These are guiding principles that shape the
philosophy is inherent in the foundation. It way the organisation was founded. These are
cannot be seen but has a great impact on the what they set out to do. Everybody who comes
visible elements of the brand. If the brand in contact with the values of the brand needs
philosophy is weak, the brand is weak and to decide if they are aligned with these. As the
may likely fail. brand becomes bigger, these values need to be
cascaded to everyone in the team. Brand val-
ues move beyond the founder(s). The employ-
3.3 Components of Brand ers must recognise these values as they
Philosophy influence the way they interact with customers,
the way they raise money through their charity
As indicated, brand philosophy is the founda- organisation or the way they source for busi-
tion of a brand. Remember, when building a ness. It is important to differentiate brand val-
brand, the foundation must be well rooted ues from brand value. Brand values are often
and solid. A building foundation will have more than one, and they are guiding principles
stones, cement, sand and iron bars to hold it while the brand value is the financial worth of
tight and solidly in place. Likewise, brand phi- the company. Brand values may not necessar-
losophy has fortifying elements. ily mean a huge amount of money (brand
So, what are the components that make up value), but a good set of brand values will
the foundation of a brand? These components position the brand for an increased valuation.
may often be used interchangeably, and it is
important to understand the basic concepts
and their importance. Take for example the 3.3.3 Brand Heritage
different components of the Honda Group
philosophy, a Japanese company that produces This consists of the historical assets the brand
automobiles and motorcycles, consisting of builds on to shape their philosophy. Brand
435 affiliated companies in and outside Japan heritage is a dimension of a brand’s identity
(as of 31 March 2019), their philosophy con- found in its track record, longevity, core val-
tains their fundamental beliefs (including ues, use of symbols and particularly in an
“Respect for the Individual” and “The Three organisational belief that its history is impor-
Joys”), the company’s principles and manage- tant (Urde 2009). This is often for more estab-
ment policies. This philosophy is not only lished brands that have a long history, and
shared by all associates but also forms the they recognise that (using it in their marketing
basis for all company activities and sets the communications). Brands with heritage
standard for the conduct and decision-making believe they have something to protect, some-
of all associates throughout the Honda Group. thing they have been nurturing for many years,
and they are mindful of how they compose
themselves (Urde et al. 2007). This under-
3.3.1 Brand Ethics standing shapes their guiding principles and
becomes an integral part of their philosophy
As previously discussed, brand ethics are an as a brand.
integral part of the brand philosophy. It is Brand heritage should not be confused
important to recognise this as they shape the with corporate heritage. Corporate heritage is
moral activities of the company, highlighting a unique institutional trait acquired through
past, present and future performance of a Thomas Cook, one of Britain’s oldest travel
brand (Balmer 2013); while brand heritage companies with plenty of heritage, tracing its
relies more on the history, allowing brand origins back 178 years, and several of its asso-
managers and owners to utilise the hidden ciated UK entities, entered compulsory liqui-
potential in their valued past to protect their dation. Though brand heritage is an added
future (Urde et al. 2007) and this is often advantage, it could be a burden to maintain as
3 appreciated by brand users (Orth and Gal there is growing competition from more flexi-
2012; Mogaji 2018). The challenge however ble, risk-taking brands. Managers need to be
remains to make the historical values relevant mindful when building this heritage and using
and not appear outdated (Hakala et al. 2011). it to engage with the stakeholders.
Corporate heritage constitutes a potential
or actual corporate asset and strategic
resource that the brand can leverage on. It is 3.3.4 Brand Personality
associations or inherent values that differenti-
ate one brand from another, creating a unique Brand personality is how the brand behaves—
experience for the brand users (Keller and what it does and how it does it—so that the
Lehmann 2006). IBM has a brand heritage brand always acts consistent with its values.
because it has existed for a long time, but Aaker (1997) defines brand personality as the
Apple may have a better corporate heritage set of human characteristics associated with a
because of what they have done and their brand. Aaker developed the five dimensions
innovative possibilities. of brand personality—sincerity, competence,
This heritage gives the brand an added excitement, sophistication and ruggedness
advantage provided they can use it well. (see . Fig. 3.1). There have been counter
Merchant and Rose (2013), developed a scale arguments as other researchers have argued
for measuring brand heritage and highlighted that certain traits of human personality can-
the prospects of invoking vicarious nostalgia not be associated with brands (Bishnoi and
through advertisement and brand communi- Kumar 2016; Azoulay and Kapferer 2003).
cation, citing the example of Wells Fargo This aligns with misconceptions about the
adopting idyllic aspects of the old west in scope of branding, but notwithstanding the
their advertisement. Brands take pride in their debate, the essence is to understand the per-
heritage, but it’s often not a guarantee for suc- sonality of the brand as part of its philosophy
cess. It was not enough to save some brands and inherent values. So, if a brand was a
with heritage that had to close shop. Recently, human being, how would it be described?
Sincerity
Competence
Brand
personality Excitement
Sophistication
Ruggedness
.. Fig. 3.1 Brand personality framework. (Adapted from Aaker (1997))

3.3 · Components of Brand Philosophy
49 3
Energetic, friendly or distracting? As a brand its customers, as well as outlining what brands
manager, how would you want your brand to expect in return (Roberts and Alpert 2010).
be described? This is a promise that the brand has made,
and they will always aspire to fulfil it:
3.3.5 Brand Origin »» Holland & Barrett Customer Charter

To enhance the well-being of our cus-
tomers around the world by delivering the
Brand origin is the actual region, place, coun-
highest quality, best value nutritional sup-
try, nation or continent to which the brand
plements and wellness products, bringing
belongs based on its ideal target, brand users
wellness to the world one happy customer at
or clients. This is quite different from the
a time.
actual location where products with the brand
name are manufactured or are perceived by
consumers to be manufactured. Brand origin
can also be considered an important compo- 3.3.7 Vision Statement
nent of their philosophy and can influence the
way a brand operates. For example, as a These are affirmations that give guidance to
human brand, you may be from North the staff and stakeholders as to what direction
America and do things differently from some- the organisation is going and how they want
one from Eastern Europe even though you are to go about it (Vasudeva and Mogaji 2020).
both attending a university in Africa. Country They are reminders of the promise the brand
of origin is an integral component of the has made. The formation of this statement is
brand philosophy (Mohd Yasin et al. 2007). considered an integral part of strategic man-
There are brands that take pride in their agement (David 2001). A vision statement
origin, and they integrate this into their brand depicts what an organisation aspires to
philosophy and identity. Some countries are become and how it wants to be seen in a lon-
known for making outstanding engineering ger period (Behm and Bertold 2011). Collins
pieces, some are known for their fashion and and Porras (1991) mentioned that the vision
some are known for their quality food: statement depicts the thinking of an organisa-
55 IKEA furniture: Sweden tion in terms of its core values and views
55 Chanel perfume: France about itself.
55 Barilla pasta: Italy
55 BMW: Germany
55 Dewar’s whisky: Scotland 3.3.8 Mission Statement
55 Kikkoman soy sauce: Japan
55 Bertolli olive oil: Italy The mission statement complements the
55 Gucci shoes and handbags: Italy vision statement. While the vision statement
55 Rolex: Switzerland describes the desired future position of the
company, the mission statement describes the
present effort towards reaching a set objective
3.3.6 Customer Charter (Williams 2008). The primary difference
between a vision and mission statement is the
Some brands with a more consumer-facing timeline. The mission statement acts as an
engagement like retail stores and government indicator of organisational purpose and ori-
entities have a customer charter. A customer entation (Klemme et al. 1991; Bart and Hupfer
charter is a set of standards or code of prac- 2004). Campbell and Yeung (1991) have sug-
tice that sets out to the customer the standard gested that the organisational mission should
of service to expect, what to do if something be framed after considering four factors: pur-
goes wrong and how to make contact. They pose, behaviour, values and strategy.
relate to service standards. It details how the The mission statement should address five
brand will provide the service and support for key questions:
1. Who are we? depend on the founder, while a bigger brand

2. What do we do? may engage the services of a consultant.
3. How do we do it?
4. For whom do we do it?
5. How do we differentiate ourselves from 3.4.1 Founder
another brand?
3 For some brands, the philosophy is developed
This could also be a form of mantra, a three by the founder (or founders) of the company.
to five-word phrase that captures the irrefut- The founder knows the reason for setting up
able essence or spirit of the brand positioning the company, knows the vision and the mis-
(Keller 1999). So, we can say the mission sion, know the values to be embedded in the
statement is a form of tagline or watchword brand. The founder has the responsibility to
which continues to charge the company into identify and document what will make the
action. It is some sort of propeller that uncon- brand stand out and what principles and val-
sciously moves the brand into acting in cer- ues they will abide by. Documentation in a
tain ways. The brand also sees itself as its written form is essential. Something to always
mission statement; hence, its actions and inac- fall back on and see if those values are still
tions are guided by the words encapsulated in part of the business.
the statement.
3.4.1.1Management Team
Reflective Questions
For much larger brands with different organ-
55 To organise the world’s information and
isational structures which may exclude the
make it universally accessible and useful—
role of a founder, developing the brand phi-
whose mission is this?
losophy becomes the responsibility of the
55 Think of Nike—Just do it, think of Kit
management team, headed by a CEO, for
Kat—Have a break, Think of Tesco—
example. A new CEO comes on board and
Every little helps. What is the mantra for
may decide to change the strategic direction
your favourite brand? Can you recollect?
of the organisation. The CEO shares ideas
If they do not have a mantra, what would
and vision with the team, ensures buy-in and
you propose?
that the team can integrate this new direction.
55 Can you identify the philosophy of these
Under Steve Jobs’ leadership of Apple, the
brands—Google, Facebook, Microsoft
mission statement was “to make a contribu-
and Amazon? Are there any similarities?
tion to the world by making tools for the mind
that advance humankind”; however, the new
CEO Tim Cook created a new mission which
3.4 ho Develops Brand
W focus on innovation, believing in the simple,
Philosophy? not the complex, participating only in markets
where Apple can make a significant
The answer to this question depends on the contribution and focusing on the few innova-
brand and its structure. The development of a tions that are truly important and meaningful
philosophy for a small brand may solely to the brand.
Case Study 3.1: FIFA
Sepp Blatter was a Swiss football administrator 2015. However, after numerous allegations of
who was the eighth President of the Fédération corruption in the bidding processes for the
Internationale de Football Association (FIFA), awarding of FIFA tournaments and failing
the world football association governing body. over ethics breaches, he was impeached. This is
He was president for 17 years from 1998 to a man that had a great deal of influence on
3.5 · When Is Brand Philosophy Developed?
51 3
football around the world, and his values had Here is an example of new management
become integrated into FIFA. He was given coming on board and presenting a new direc-
a 6-year ban from participating in FIFA tion for an organisation. This is beyond the
activities. founder or owner, this is the leadership team
In 2016, a new president, Gianni Infantino taking responsibility and ensuring the organ-
was elected as the President. He was responsi- isation has a new guiding principle to shape the
ble for providing a new strategic direction for perception of the brand.
the organisation after a turbulent period of
scandals which brought the FIFA brand into
disrepute. The brand’s reputation had been
55 Why was it important for the new FIFA
affected, and it was time to revisit the guiding
president to develop a new strategic direc-
principles and philosophy of the brand.
tion for the organisation?
Gianni Infantino unveiled “FIFA 2.0: The
55 How do you think the new strategic direction
Vision for the Future” in October 2016, the first
will shape the brand perception of FIFA?
time in FIFA’s history that a strategic plan for
55 How important was the presentation to
building a stronger institution was published.
the public of the new strategic direction
The new president had presented a document
for the organisation?
highlighting his plans to make changes.
3.4.2 Consultant 3.5.1 At the Beginning
In some cases, Brand Agencies could also be The brand philosophy should be developed at
brought in to carry out research, consolidate the beginning of the brand conceptualisation.
brand values, direction and vision for the This is when the founder starts the business
future. These agencies have experience work- and comes up with ideas that will shape the
ing on many brands from different industries. brand’s activities. The brand’s philosophy
They can provide insights gleaned from cus- should be at the forefront of the company.
tomer feedback, give clarity on the brand to
both internal and external stakeholders and
give focus to the brand as they integrate the 3.5.2 During Growth
philosophy. This is more like having a helping
hand where ideas and directions are needed, Brand philosophy can be developed during the
especially within a diverse board of manage- growth stage of the brand. This can happen
ment. This is extra support in the form of a when the values have outlived the founder, and
third party to listen to every idea and come there is a new direction for the brand to go.
up with a strategic direction that will likely While they may consider their heritage and
appeal to all. country of origin, the changing aspect of the
business many necessitate the need to develop
a new philosophy and direction for the brand.
3.5 hen Is Brand Philosophy
W The growth can, however, be in two forms.
Developed?
Often when brand philosophy can be devel- 3.5.3 Start-Up Growth

oped depends on the type of brand, the struc-
ture of the organisation and how long the This is when the brand moves from just being
brand has existed. the idea of the founder to the brand of share-
holders. That is, when a brand goes public or “TOGETHER 2025+”—which stands for
accepts investment from capital ventures. This more speed, more focus and consistency. This
may relate more to start-up companies, as was expressed by the updated strategic vision
they need to change strategic direction for the entire group: “Shaping mobility—for
because they are becoming bigger and need to generations to come” and the purpose is to
protect the vested interests of many others. safeguard individual mobility for the long-
3 Apple’s mission statement has changed since term, thereby guaranteeing one of humanity’s
the company’s incorporation—as Apple fundamental needs and the desire for freedom.
Computer Inc.—by Steve Jobs and Steve Likewise, in 2017, during a rapid change in
Wozniak in 1977. The company is now in pub- the automobile business environment, Honda
lic ownership—a new direction has been formulated their 2030 Vision, which outlines
taken. Over the past decade, Facebook’s mis- new challenges they will take on towards the
sion has been to make the world more open next era. This will enable Honda, which was
and connected. However, in June 2017, Mark established in 1948, to continue to offer joy to
Zuckerberg announced that going forward, people and to be a company that society wants
Facebook’s goal is to “give people the power to exist beyond the 100-year mark in their
to build community and bring the world company history.
closer together.” This is a change in direction These car brands recognise they have
as the brand aspires to be something bigger brand values and philosophies, but there is a
than what the founder initially anticipated. need for these values to be redeveloped to rec-
ognise the competition from the green move-
ment, the changing business climate and
3.5.4 Strategic Growth customers’ expectations.
Developing a brand philosophy at the stra-
This applies more to established brands that tegic growth stage is not limited to the automo-
change strategic position as they grow and rec- bile industry. Likewise, universities are adopting
ognise the competition within their industry. new visions and values as they set strategic
These brands do not want to rest on their oars growth plans. The University of Kent has a
but to strategically position themselves as fore- strategy for Kent 2025 while Oxford University
runners in the industry. In 2016, the Volkswagen also has a strategic plan for 2018–2023. To
group charted a new course with their deliver these visions, these universities have to
TOGETHER 2025 strategy. In 2019, the plan re-state their ambitions, goals, objectives and
was sharpened and a new strategy evolved— values in relation to their core activities.
Case Study 3.2: John Lewis to Pull “Never Knowingly Undersold” Pledge
John Lewis is a brand of high-end department price than available elsewhere. There is growing
stores operating throughout the United competition from other retail stores which may
Kingdom. They are very confident about their be able to offer consumers cheaper products
pricing and made a promise to consumers that but may be not necessarily at the quality of
they will always get value for their money. John Lewis. There is the rise of online retail
“Never knowingly undersold” was their pricing stores and the coronavirus pandemic has fur-
promise which has been used since 1925. The ther accelerated shopping trends and changed
slogan guarantees that the store will refund consumer behaviour. It is becoming more
British shoppers the difference if they can find expensive for the brand to compete on price.
the same product for a lower price elsewhere. In February 2020, Dame Sharon White
Sustaining this price promise has, however, became the Chair of John Lewis and was given
posed a challenge. In 2017, the promise came the responsibility of reviving the struggling retail
into question when an investigation showed the brand. Six months after the appointment, John
retailer was selling certain products at a higher Lewis announced plans to replace its famous
3.6 · How Is Brand Philosophy Developed?
53 3
promise to match rivals’ prices. This change is Reflective Questions

considered a radical change to the business, an 55 What were the benefits of John Lewis
effort to improve financial performance. having a price promise?
The company had been incurring huge 55 Why was it important for John Lewis to
expenses for keeping this promise but as the revisit a promise that was made over
market dynamics had changed and become 95 years ago?
more competitive, it was imperative for the new 55 How has the decision by John Lewis
chairperson to take a decision and replace this been influenced by the changing
unsustainable promise. It was clearly better to business environment and change in

have a promise that could be kept than an leadership?
expensive promise that was sometimes broken.
3.5.5 At Rebranding 3.6.1 Looking Inward
When two businesses/brands merge or when Looking inward helps the brand to decide
another brand gets acquired, it is likely what they want to be known for and what they
because they operate in the same market and are hoping to achieve. The brand needs to rec-
there is a need for them to consolidate. ognise where they are and where they want to
However, there are possibilities that there may get to. Brands (at an early stage this could be
be a difference in values, philosophies and the founder) need to reflect on what makes
working principles. At the rebranding (upon their offering unique, what makes their ser-
merging) and possibly with support from vices different, what have they done before
branding agencies, the brand philosophy may that the customer liked, what have they done
have to be redeveloped for the new brand that caused problems, what do they really
moving ahead. The acquired company may stand for. This should be a critical reflection
lose its values as they get incorporated into of the brand, and the brand owners need to be
the culture of the new brand. very open to exploring the challenges and
prospects they have as a brand. It is essential
to note that this may be challenging but dig-
3.6 ow Is Brand Philosophy
H ging deep to understand the foundation of the
Developed? brand will be useful in developing and formu-
lating a philosophy. Each member of the team
Brand philosophy is needed for brands that can be asked to come up with a list of their
want to be strategic in their brand manage- own values and how they can be integrated
ment. The existing brand has worked on a prin- into the overall values of the company. This is
ciple, but it is important to recognise and about carrying everyone along.
document it. Some brands may not have con-
sidered their brand philosophy, or they have
not formalised it. It is important, therefore, to 3.6.2 Research
take the initiative to develop, adopt and inte-
grate a philosophy. This should not be an after- Brand research is fundamental. It is not, and
thought. Managers must ensure that the brand should never be, limited to understanding and
they work for has a philosophy, and if not, it developing a brand philosophy. It is an inte-
should be developed. This section presents gral part of brand management. Brand
basic insights into creating a brand philosophy. research will be covered as well in different
Remember, brand philosophy is a collec- sections of brand management as we progress.
tion of statements which include brand values, The research stage recognises the business
purpose, culture, vision and mission statement. domain (of the brand) and the guiding
rinciples that shape the industry and perhaps

p expression of a wider group of people along
what other competitors are doing. Brand prescribed dimensions” (Morris and Schmolze
research will uncover consumers’ perceptions 2006, 290). Within brand marketing, Mark
of the brand, attitude towards the brand and and Pearson (2001) identified 12 archetypes:
common words that can be used to describe The Innocent, The Explorer, The Sage, The
the brand. The research will help to under- Hero, The Outlaw, The Magician, The
3 stand the customers’ expectations and how Regular Guy/Gal, The Lover, The Jester, The
the brand has met those expectations. A Caregiver, The Creator and The Ruler. In
SWOT analysis can also be carried out during defining the archetypes for Mainstreet
this research stage to understand the pros- Capital, a leading investment banking firm in
pects and challenges for the brand in the busi- Nigeria, West Africa, Arden & Newton (the
ness domain in which they operate. Brand consulting agency) aligned the brand’s
aspiration with a combination of the Explorer
& Sage archetypes. These archetypes provided
3.6.3 Documenting the best fit to reflect the brand’s ambition and
mission to become a guiding financial services
The research findings and the founders’ reflec- partner for its clients and other stakeholders.
tions need to be documented and discussed to Mainstreet Capital has been positioned as an
identify the way forward. This stage will explorer, pushing boundaries, with a strong
require brainstorming, discussion with the desire to discover new territories and experi-
team and stakeholders, sharing the ideas and ences for their client. A sage, providing
finding something practical that the brand distinct insight and context to current occur-
can use to progress. This stage also requires rences in a way that is meaningful to its cli-
asking for input and feedback from custom- ents, audience and other stakeholders. Some
ers, staff and other stakeholders as you chart other examples are Skittles is the Jester, Dove
a new course for the brand. At this stage, is the Innocent, Apple is the Creator, Virgin is
words are crossed out, better phrases are the Rebel while Rolex is the Ruler. The North
adapted, long sentences are cut short. All this Face is another brand also considered as the
is done to make the philosophy memorable Explorer.
and actionable. Lists of words can be nar- It is important for brands to understand
rowed down to a few words that best fit the what they stand for and the values to envisage
business and brand. Then the best combina- providing for their customers. Based on the
tion of words and phrases are selected. gathered documentation and selection of
The developers may adopt an archetype. archetypes, the brand philosophy should be
An archetype is “the detailed description of a finalised and documented. The final version
single person who represents a particular should then be communicated.
Case Study 3.3: ExactHire
ExactHire is a small enterprise in Indianapolis, eters, they came up with a list of values repre-
USA. They offer HR Software-as-a-Service senting the company.
(SaaS) solutions for hiring and succession plan- After a few months of evaluating the val-
ning needs. Their philosophy is to provide great ues, and to ensure their credibility, they
software and exceptional client service. The announced the values at their monthly com-
company has been in business since 2007, but pany meeting and took time to explain the pro-
recently, they decided to make a change and cess and the reasons for involving a very small
embrace the value process by involving the group of employees. In the meeting, documents
founders and key long-time employees. They containing the new statement were shared with
brainstormed independently, and with param- staff which included bullet points clarifying
3.7 · Who Needs Brand Philosophy?
55 3
what each short phrase meant. Their values the website and PowerPoint presentations. This
were summarised in an acronym—G.E.C.U.S.P. ensures that everyone is reminded of them every
(Grow Responsibly, Empower with Autonomy, day and helps them to integrate them.
Communicate Candidly, Use Good Judgment,
Seek to Elevate, Prioritise Work and Personal Reflective Questions
Life Equally). 55 When would you expect a brand to
It was important to integrate the new values. redevelop their values?
This acronym makes the values more memorable 55 How important is the brand value to a
and easier to put into action. They made laptop small organisation?
stickers and t-shirts of the values and presented 55 How important is it for a brand to have
them to employees. They also put the values on their values summarised in an acronym?
3.7 Who Needs Brand Philosophy? there on the street raising money. Staff must
know what their brand stands for, and they
The question may arise about the need for a must be willing to represent those values at
brand philosophy and who really cares about any given point.
it. This question usually revolves around the
essence of brand philosophy and its impor-
tance for brand growth. As earlier indicated, 3.7.2 External Stakeholders
brand philosophy is an abstract identity which
many people might not even be aware of, but Unlike the staff, these do not have daily
it is important to note that it is a document engagement with the brand. These are con-
and statement of purpose which is relevant to tractors and suppliers who need to know the
stakeholders and brand customers. It is a values of the brand to decide if they want to
guiding principle that presents the brand’s work with them. They can come across these
promises to keep (for staff) and for those who values through their engagements with the
ask about it (customers). This section high- staff. For example, a supplier may offer differ-
lights three key groups of people that should ent companies different products. Perhaps
be aware of the brand’s philosophy. there is the knowledge that Brand A will
accept anything, but Brand B is very specific
about what they accept. The supplier has
3.7.1 Internal Stakeholders come to know the values of Brand B and
therefore is mindful of these when doing busi-
These are predominantly staff who are work- ness with the brand. Parastatals are an exam-
ing on the brand, engaging with customers ple of external stakeholders who need to
and taking responsibility for the brands’ know that the company they are awarding the
actions. These are staff that need to ensure contract has integrity and core values that
that the promises of the brand are delivered, ensure quick and effective delivery of service.
and therefore they need to know what the Well-integrated brand philosophy distin-
brand stands for and ensure they demon- guishes brands and shapes the working rela-
strate this at every engagement. Likewise, tionship with stakeholders. These stakeholders
new staff coming on board need to know may do their research to find out about the
about the brand philosophy and integrate it brand, and these documents could be submit-
into their business activities. This could be a ted during the tendering process. They can ask
sales manager trying to seal a deal with a cli- around, check social media and seek informa-
ent who needs to be mindful of the promises tion about the brand values on the company’s
of the brand or a charity worker who is out website.
3.7.3 Customers Overused works such as “integrity,” “out-

standing” and “excellent” should be excluded;
Consumers are becoming more interested in instead, short phrases should be considered.
the brands they engage with. They want to Here are some examples of short phrases
know what brands stand for and the values used by Macmillan Cancer Support to show-
they abide by. Consumers will want to know if case their values:
3 the brand’s values align with theirs. They 55 We are personal.
often discover these values through engage- 55 We are open.
ment with staff, and they form their percep- 55 We demand better.
tion of the brand through the media and 55 We inspire others.
communication by the company. Consumers 55 We are practical experts.
can do their research to know what a brand
stands for; activists and campaigners can
make enquires about a brand’s values. This 3.8.3 Actionable
information should, therefore, be readily
available on the website for those who need to The words should be actionable, and this
find out and demonstrated through the actions should reflect something that the staff can
of staff. take on board and put into action. The state-
ment should not say something vague or
impractical. It should make those engaging
3.8 Features of Brand Philosophy with it empowered, feel a part of the system
and be able to work with it.
As earlier indicated, brand philosophy can be
made up of different components, but there
are some key features that should be present. 3.8.4 Accessible
The statements should be made available and

3.8.1 Statement accessible for those who need it and those who
request them. Importantly, they should be on
The brand philosophy is a combination of the company’s website, in “about us,” “who we
many statements in the form of values, mis- are” or the “recruitment” page. The brand
sion and vision statements. It should be writ- purpose can also be integrated through inter-
ten out. This is not something abstract purely nal communications, appraisal reminders and
in the minds of the founder or the manage- as email signatures.
ment. Once developed, this should be made
available in a statement that is readily available
for staff, consumers and other stakeholders. 3.8.5 Memorable
The carefully selected words, simple and

3.8.2 Carefully Selected actionable, should be memorable. Even when
staff have access to these statements on the
This statement of purpose should be carefully website, they should know the brand purpose,
selected to convey the purpose of the com- it should be integrated in their actions. As we
pany. Stakeholders need to see this and pro- saw above, some brands have their values in
vide feedback. It should be analysed to ensure acronyms to make them memorable for the
people acknowledge it and want to be staff. The Values of St John Ambulance spell
associated with it. The words should be care- out HEART—people are at the heart of St
fully selected to convey the unique position of John Ambulance:
the brand and what they want to achieve. It 55 Humanity—treating others with compas-
should not contain jargon or words which are sion and respect.
too difficult or complicated to understand. 55 Excellence—taking pride in an excellent job.
3.9 · Benefits of Brand Philosophy
57 3
55 Accountability—delivering what we 3.9.3 Distinguished
promise.
55 Responsiveness—constantly learning and There are many brands out there, but their
improving. philosophies differentiate them and make
55 Teamwork—working together effectively. them unique. The philosophy shapes product
development and service delivery. One brand
philosophy may promise quality services and
3.9 Benefits of Brand Philosophy products made from ethically sourced mate-
rial. Another brand may assure customers
Highlighting the benefits can offer some justi- that their complaints will be treated on time.
fications for brand managers to consider their These promises distinguish a brand and bring
brand philosophy. loyal customers who see the promises being
kept and so will always want to come back.
3.9.1 Guiding Principles

3.9.4 Positioning
The brand philosophy is a guiding principle
that ensures everyone working on and with Once a brand has distinguished itself, it can
the brand has a sense of direction about where take an appropriate position. This position
to go. It unifies the staff’s efforts in pursuing a can reflect how the brand engages with issues,
common goal in the organisation. Company especially societal issues which may require it
goals, as earlier described, can be seen as the to respond and take actions. For example,
“True North” of the company. They provide during Pride month, does the brand want to
direction and ensure that everyone can sing be a part of the LGBT parade? Can the brand
from the same page, providing the same out- take a position on climate change? The brand
standing customer service irrespective of the philosophy serves as a guide for brands to
location of the brand or staff on duty. As a decide how they want to position their brand,
guide, the philosophy ensures that ethical especially in difficult and complicated situa-
principles are followed and adhered to. The tions. Appropriate positioning of the brand
brand philosophy informs the stakeholders builds loyalty, increases reputation and leads
about the organisation’s plans and goals. The to the forging of beneficial associations.
brand philosophy drives behaviours within
the organisation; every stakeholder knows the
value and principles of the brand. Every staff 3.9.5 Enhances Credibility
member is expected to behave in a manner
that aligns with those values. These guiding A promise fulfilled builds credibility. Brands
principles can dictate the type of business a that abide by the brand philosophy build their
brand engages in and the type of client it credibility and the ability to forge a partner-
works with. These ensure that their brand ship with other like-minded brands. This
value is not compromised by another brand brings about dynamic growth and increased
that has a different or unethical philosophy. profitability. The brand philosophy identifies
values that brands hold dearly, and this can
attract other brands to co-create values and
3.9.2 Continuous Reminder products for consumers. It can serve as an
effective public relations tool because the
For the brand and the internal stakeholders brand becomes more transparent about their
(staff), the brand philosophy, as a guiding promises and expect consumers to hold them
principle, offers a continuous reminder about accountable. Brands whose philosophies are
what the brand stands for and the promises not great, not well known or engaging enough
they have made. It serves as a form of quality might find it difficult to work with other
assurance. brands.
z Reflective Activity (via appraisals, internal memos, newsletters or

Think about two or three of your favourite even email signatures). Staff should be con-
retails stores: tinually trained so that the philosophy is an
55 Check their website to see if they have a integral part of their daily activity. The
customer charter. business must operate in alliance with these
55 Does it align with your experiences of the values.
3 brand?
55 If they do not have one, what would you
expect their charter to be? What would you 3.10.3Recruitment
want them to promise you?
When new staff join the team, it is important
to ensure that they are aware of the brand’s
3.10 Considerations for Brand guiding principles. As the brand becomes big-
ger, it is essential to incorporate the brand val-
Philosophy ues into the recruitment process. Prospective
employees should be able to see the brand’s
3.10.1Role of Founder values in the job description. It should be evi-
dent what the brand stands for. It is essential
The founder is a person(s) who creates or to hire people who recognise, understand and
establishes a company society or group and so match the values of the brand. This is not lim-
on. For the purpose of this book, the founder ited to charities looking for volunteers but
is someone who establishes a brand. The role includes all kinds of companies, even bigger
of the brand owner (founder most likely) in companies recruiting for shop assistants.
developing and integrating brand philosophy The human responsibility to present the
cannot be underestimated. The belief and val- values of a brand cannot be overestimated.
ues of individuals can be transferred to the Though the values are inherent within the
brand they create. If these values are not good brands, the staff is responsible for exhibiting
for the business, there may be a problem. In these values. The flight attendant who serves
1866, Thomas Barnardo promised to support you well; the helpful customer assistant on the
children in need of help—regardless of their phone or the cautious UBER Driver. The
circumstances, gender, race, disability or brand expects staff to abide by their values
behaviour and founded Barnardo’s, a charity and this should have an implication on the
organisation for children. Over 150 years later, recruitment process. This is because the wrong
the charity still exists and still aligns with the staff, working against the guiding principles
founder’s vision for the organisation. This of the brand, can affect the brand’s reputa-
highlights an example of a vision that has tion. Macmillan Cancer Support present their
outlived the founder and yet is still being
values and expected behaviour with the
referred to. Likewise, the personal values of recruitment process information on their web-
the CEO of the company may also affect the site. They invite people to work for them, but
philosophy of the company, especially in the they ensure those people are aware of the
case where the CEO cannot effectively convey charity’s values.
the values and bring everyone on board. In 2018, the DoubleTree Portland hotel
terminated the employment of two staff mem-
bers, after they were caught on video evicting
3.10.2Integration an African American guest who was using his
phone in the lobby. The hotel stated in a tweet
It is not just about having these statements that the actions of the two staff members were
written on the office walls or on the website, it inconsistent with the company’s standards
is important that stakeholders integrate these and values. Likewise, at Starbucks, a manager
values, especially the staff who needs to be had two black men arrested who were not
constantly reminded about the philosophy doing anything wrong. The CEO of Starbucks
3.11 · Conclusion
59 3
Co., Kevin Johnson, called the arrests a “rep- 3.10.6Reminder
rehensible outcome” and said he wanted to
personally apologise to the men, saying the Where the founder is no longer part of the
company “stands firmly against discrimina- brand, or those who developed the brand phi-
tion or racial profiling.” losophy are no longer part of the brand, the
These are just some examples that high- philosophy may be forgotten, no longer car-
light the need for further integrating stan- ried out or integrated across the board. It may
dards and values at recruitment. Anyone be necessary to make sure that the brand phi-
joining the company should know and be will- losophy is not forgotten and ignored. The
ing to abide by the company values. brand manager may have to understand if a
documented philosophy exists for the brand
and work towards revisiting the values,
3.10.4Communication towards seeing if they are still relevant and can
be integrated and shared with stakeholders.
Communicating brand values is essential.
Brands values should not just be available on
a website but communicated and shared with 3.11 Conclusion
stakeholders. The brands need to tell the peo-
ple they work with about the values they The brand philosophy is the guiding principle
uphold, and this will make these stakeholders of a brand, and importantly, should be built
mindful of how they engage with the brand. on ethical practices. The brand philosophy
Staff should take pride in these values and be includes values, purpose, mission and vision
able to communicate and demonstrate them statements. These are like the unseen founda-
effectively. They can be creatively made avail- tions of a house. They are not visibly recog-
able around the workplace for staff (the lap- nised and seen by consumers, but they can be
top sticker example above), customers and experienced.
visitors to see and hold the brands responsi- An outstanding philosophy offers a con-
ble. They should be integrated into internal tinuous reminder for the staff and increases
and external communications. the level of expectation of the consumers.
There is an opportunity to distinguish the
brand and makes it more credible (Mogaji
3.10.5Refreshing and Danbury 2017). In achieving this, the role
of the founder and brand owners cannot be
As a brand evolves, there may be a need to ignored. They take responsibility for the ini-
refresh the brand values and the promises the tial brand promised. Likewise, the integration
brand has made. The brand may have merged and communication of these brand values are
with another brand, and they may have important. While the philosophy may evolve
acquired a new brand or expanded to differ- as the brand grows, it is important not to for-
ent countries. This growth may warrant the get about it.
need for brands to refresh their values and The brand philosophy needs to be trans-
promises. They may build on initial brand val- ferred into something tangible in the form of
ues. Likewise, when a brand moves beyond the brand identity, which makes the brand more
founder and goes public, these values may recognisable. The brand philosophy leads to
need to be rehashed to reflect the changes in creating the brand identity. The brand philos-
the administration of the company. These val- ophy should come first before the identities. It
ues need to be appraised on a regular basis, is not surprising that some brands may come
carrying out interviews and surveys to see that up with an identity and then find a story/phi-
staff still recognise and embrace the values. losophy to back it up. IKEA uses yellow and
Staff may be rewarded on a regular basis for blue, the flag colours of its country of origin
working with, and demonstrating an under- (Sweden). This will be discussed further under
standing of, these values. Brand Identity.
Brand managers need to recognise these 3. Why do you think some brands may not
values and challenge stakeholders to align have their brand philosophy on their
with them (Rose et al. 2016). It is not just website? ◄
about having this philosophy but making sure
it becomes an integral part of the brand’s
business activities. For brands that do not References
3 have a guiding principle, it is never too late to
develop one. For brands that have a philoso- Aaker, J. 1997. Dimensions of brand personality. Journal
phy but have not documented it, it is essential of Marketing Research 34 (3): 347–356.
to officially present it and make it an available Azoulay, A., and J. Kapferer. 2003. Do brand personal-
ity scales really measure brand personality? Journal
document for the stakeholders and those who
of Brand Management 11 (2): 143–155.
need to know. For all brands, it is essential to Balmer, J. 2013. Corporate heritage, corporate heritage
integrate the philosophy continuously in the marketing, and total corporate heritage communi-
minds of stakeholders. The guiding principles cations: What are they? What of them? Corporate
should be memorable and simple enough for Communications: An International Journal 18 (3):
290–326.
staff to demonstrate them at every possible
Bart, C., and M. Hupfer. 2004. Mission statements in
touchpoint. Canadian hospitals. Journal of Health Organization
and Management 18 (2): 92–110.
Behm, B., and C. Bertold. 2011. Developing strategies
for a higher education institution and its faculties/
Key Points departments. Leadership and Governance in Higher
1. Brand philosophy is the foundation of Education 1: 2–24.
the brand. It may not be visible, but it is Bishnoi, V., and A. Kumar. 2016. Aaker’s brand person-
ality scale is not universal–explanation and reasons
important.
for bikes in India. Journal of Marketing Analytics 4
2. Brand philosophy includes components (1): 14–27.
such as brand ethics, values, heritage Campbell, A., and S. Yeung. 1991. Creating a sense of
personal, mission and vision state- mission. Long Range Planning 24 (4): 10–20.
ments. Collins, J., and J. Porras. 1991. Organizational vision
and visionary organizations. California Management
3. Brand philosophy may be changed; it
Review 34: 30–52.
can evolve when growing and expand- David, F. 2001. Strategic management concepts. 8th ed.
ing the brand. Upper Saddle River: Macmillan.
4. Brand philosophy should contain care- Hakala, U., S. Lätti, and B. Sandberg. 2011.
fully selected words which are action- Operationalising brand heritage and cultural heri-
tage. Journal of Product and Brand Management 20
able, accessible and memorable.
(6): 447–456.
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grated. Staff should know about it in brand reinforcement and revitalization strategies.
order to demonstrate it. Consumers California management review 41(3): 102–124.
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Marketing Science 25 (6): 740–759.
Klemme, M., S. Sanderson, and G. Luffman. 1991.
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employees. Long Range Planning 24 (3): 73–78.
► Student Activities Lozano, V. 2012. Rediscovering your brand’s true north:
How Crayola articulates its brand identity to com-
1. Prepare a short brand philosophy for your- pel change in internal culture and consumer com-
self. Consider yourself as a brand; what are munication. Journal of Brand Strategy 1 (1): 6–14.
your values, mission and vision statements? Mark, M., and C. Pearson. 2001. The hero and the out-
2. Identify five companies you would like to law. New York: McGraw-Hill.
work with. Check their websites and see if Merchant, A., and G. Rose. 2013. Effects of advertising-
evoked vicarious nostalgia on brand heritage.
you can locate their brand philosophy state- Journal of Business Research 66 (12): 2619–2625.
ments. How easy was it to find them? Do Mogaji, E. 2018. Exploring nostalgic advertising effects
you find them relevant? on social media: A case of UK retail bank brand.
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Mogaji, E., and A. Danbury. 2017. Making the brand 2016. Emphasizing brand heritage: Does it work?
appealing: Advertising strategies and consumers’ And how? Journal of Business Research 69 (2): 936–
attitude towards UK retail bank brands. Journal of 943.
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Mohd Yasin, N., M. Nasser Noor, and O. Mohamad. values. Management Decision 47 (4): 616–638.
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Morris, L., and R. Schmolze. 2006. Consumer arche- Vasudeva, S., and E. Mogaji. 2020. Paving the way for
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Orth, U., and S. Gal. 2012. Nostalgic brands as mood R. Hidson. Abingdon: Routledge.
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ment: Designing and aligning key strategic elements
63 4
Brand Positioning
Contents
4.2 What Is Brand Positioning? – 67
4.3 Conceptualising Brand Positioning – 68

4.3.1 S tage 1—Frame of Reference – 68
4.3.2 Stage 2—Point of Parity – 68
4.3.3 Stage 3—Compelling Points of Parity – 69
4.4 Brand Positioning Statement – 70
4.5 Importance of Brand Positioning – 71

4.5.1 irection – 71
D
4.5.2 Reputation – 71
4.5.3 Increased Sales – 72
4.5.4 Distinguished – 72
4.5.5 Meeting a Gap in the Market – 72
4.6 The Changing Brand Positioning – 73

4.6.1 S tage 1—No Action – 74
4.6.2 Stage 2—Action by Brands – 74
4.7 Enhancing Brand Position – 75

4.7.1 rand Philosophy – 76
B
4.7.2 Research – 76
4.7.3 Critical Evaluation of the Brand – 76
4.7.4 Product Development – 76
4.7.5 Service Delivery – 76
4.7.6 Consumer Engagement – 77
4.7.7 Brand Identity – 77

4.8 Who Is Responsible for Brand Positioning? – 78
4.8.1 onsumers – 78
C
4.8.2 Brand Owner – 78
4.9 Challenges of Brand Positioning – 79

4.9.1 onsumers Are Subjective – 79
C
4.9.2 Competing Attention – 80
4.9.3 Competing Brands – 80
4.9.4 Financial Limitation – 81
4.10 Considerations for Brand Positioning – 81

4.10.1 rocess – 81
P
4.10.2 Consumers’ Expectations Can Change – 81
4.10.3 Brand Position Changes – 81
4.10.4 Brand Reposition – 82
4.10.5 Positioning Statement – 82
References – 83
Brand Positioning
65 4
While on the treadmill, Sam looks out the treadmill and eating unhealthy food. That
window and comments on the people passing would be completely unexpected.
by outside who probably think the reason they Consumers have certain perceptions about
are exercising is to keep fit. Code agrees, but brands. Often there is no second chance to
adds that some people might not perceive that make a first impression. It is therefore impor-
as what they are doing. Alex says that for their tant for brands to exceed expectations and do
brand it’s important to be mindful of the fact more than what the customers expect from
that people have different perspectives and them, while recognising that customers are
might not grasp their message. This is why different. Alex, starting a new charity (and as
they always treat people fairly and be prudent the charity brand’s owner) will have different
with their spending. Code responded, saying resources to shape the perception of donors
it is not always easy to change people’s per- and the public about their charity, compared
ceptions but that individuals need to keep up to Sam, who is managing a multinational
the good work, nonetheless. Sam, Alex and brand. This does not however stop them both
Code are in a gym. There are certain percep- from taking action to enhance their brand
tions about people you see in a gym. There is positioning through service delivery, product
an association between gyms and keeping fit. development, effective communication and
Now imagine seeing someone sitting on the engagement.
66 Chapter 4 · Brand Positioning
4.1 Introduction
Overview
The perception of a brand is in the minds As individuals and customers, we have unique
of the consumers. This perception may feelings and attachment to some brands. We
make them associate innovation with a feel special when we use the brand, and often
brand, and likewise, they could associate have a sense of pride in being associated with
poor service with a brand. Brands will have the brand. Even though there could be many
to keep their standards and improve on alternatives, there is always a special place for
4 innovative product development and qual- that brand in our heart. You visit that bar
ity service provision to convince the con- every Friday because of the beautiful memo-
sumers about their positions. Brands may ries you have of time spent there. You buy
be placed on pedestals by consumers, but if those sneakers as a symbol of your personal-
these same brands do not do well, they will ity. You reserve that perfume for that special
be replaced. This chapter will explore the occasion. These brands have made a con-
basic concepts of brand positioning and scious effort to make their products and ser-
how it can be conceptualised. We empha- vices appealing to customers. The bar has
sise the importance of brand positioning, in made sure that every day people come into the
order to justify the creative, hard work bar and have an enjoyable experience. The
required for this. While recognising that sneaker has been positioned as a symbol of
brand positioning can change as consumer luxury and the perfume for special occasions.
engagement increases or decreases, we will These perceptions keep the brand going and
explore ways to enhance a brand’s position make you, as a brand user, keep using or asso-
in the minds of customers. The brand own- ciating with that brand.
ers and brand users are the responsible These positive perceptions of the brand
stakeholders for brand positioning—the by the brand user help the brand beat the
brand adopts brand position strategies competition and increase their sales. The
while consumers engage with those strate- positive perception is based on how well the
gies. We will conclude with some key con- consumers have positioned the brand in their
siderations for brand positioning. mind. Even though there might be many
other brands, the consumers have positioned
this brand on a higher pedestal which sug-
? Key Question gests that despite all other options, they will
How is the brand perceived in the minds of always go to that bar or use that perfume.
consumers? Brand position is the perception of the brand
user, but the brand owner must make every
n Learning Outcomes effort possible to reinforce that positioning.
At the conclusion of this chapter, you will The brand owner needs to continually work
be able to on the brand management process in other
55 describe the concept of brand to retain their position on that high pedestal.
positioning; This is the only way that the brand can retain
55 give examples of brand positioning brand users and make them continue to sup-
strategies; port the brand with their patronage. It means
55 recognise how brand position can be that for a brand to continually keep the
conceptualised; brand users, gain more brand users and
55 describe the challenges of brand posi- retain their loyalty, the brand must ensure
tioning; and they maintain a positive identity at all times
55 explain the key considerations for brand and must ensure their philosophy aligns with
positioning. that of the brand users.
4.2 · What Is Brand Positioning?
67 4
4.2 What Is Brand Positioning?
Brand positioning is a proactive and conscious

process by the brand owners to ensure that the
consumers have a positive perception of their
brand. It has been defined as the act of design-
ing the company’s offering and image to occupy
a distinctive place in the mind of the target
market (Kotler 2003). Brand positioning repre-
sents all the creative effort and strategic ideas
that have been implemented to make a brand
unique and stand out.
Brands want consumers to always think
well of them. Some of their names have
become verbs for our daily tasks:
55 When we want to get from A to B, we
Uber.
55 When we want to find information, we
Google it. .. Fig. 4.1 Selected and preferred brand on pedestal
55 When we need to send a document, we and other competing brands in the mind of the con-
FedEx it. sumer. (Source: Author)
55 When there is dirt on the carpet, we
Hoover it. more likely engage with the brands they have
placed on that pedestal. That is the brand they
These brands have captured the hearts of con- like and prefer. However, there are many rea-
sumers, making it difficult for other brands to sons that the brands on that pedestal may be
take that position. replaced. The preferred brand may become
Brand position is dependent on consum- lackadaisical and no longer care about that
ers. Brands will try, but consumers have the highly coveted position, the consumer may be
final decision about the place of a brand in exposed to a better brand or compelling posi-
THEIR MINDS (and hearts). It has been tion strategies from other competing brands
described as the battle for a place in the con- (. Fig. 4.1).
sumer’s mind. Sengupta (2004) describes the This then suggests the need for brands to
idea of brand position as renting a space in recognise they must keep improving their
the minds of the consumers. A brand can product development and service quality and
hope to occupy that space for as long as pos- be aware that other brands are vying to take
sible by changing the quality and quantity of their position in the mind of the consumer.
the brand positioning strategies, which This further reiterates that brands needs to
includes marketing and advertising. Likewise, take full control of their rented space and
many other prospective brands are also seek- keep out “squatters”—other brands coming
ing to rent that space—putting up tempting around. Positioning is very central and critical
offers to attract the owner of the mind, the for brand management, and should be consid-
consumer. ered at the level of a mission statement as it
I describe brand positioning as “brands on comes to represent the essence of a brand
pedestals in the minds of consumers.” (Aaker and McLoughlin 2010).
Consumers have decided to put a brand on a How would you like your friends to see
high pedestal, and perhaps that pedestal can you? How would you like your employers to
only accommodate one brand at a time. While see you? What type of image of you do they
there may be many other colourful and more have in their mind? When they see you, what
prominent alternatives, the consumer will are they seeing? A hardworking student who
will graduate with good grades? Even though The three questions shaped the idea of con-
you have your own ethics and ways of doing ceptualising a brand position. These ques-
things, you probably believe your friends see tions recognise the challenges for a new brand
you as a good person. They probably do but and even a more established brand extending
you cannot control and shape what is in their its product line.
mind. You can, however, control your actions
when you are together—you go to the library
and attend lectures together, and they form a 4.3.1 Stage 1—Frame of Reference
4 perception of you based on their engagement
with you. Likewise, brands cannot shape the Brands are to meet needs to ensure their com-
way consumers perceive them, but brands can mercial viability and sustainability. There is a
act—to be good, work with values, communi- certain gap in the life of an individual (pro-
cate trust, in order to improve their position- spective brand user), which a brand is expected
ing in the minds of the brand users. to fill. It is, however, necessary for the brand
While brand positioning is predominantly to recognise the need they want to meet.
determined by hard criteria such as pricing, Keller et al. (2002) noted that brands should
service delivery and product quality, other understand the frame of reference within
considerations such as company structures, which their brands work and address the
geographical coverage, type of business also features that brands have in common with

play an essential role in brand positioning competitors.
(Kalafatis et al. 2000). A newer brand will As illustrated in . Fig. 4.2 at the end of
have many hurdles to scale to become well- this section, imagine a new brand trying to
positioned, compared to a more established replicate Uber in a different country. They
global brand. Similarly, the type of business recognised the frame of reference, which is a
can influence the positioning in the mind of niche gap that overlaps public transportation,
the consumer. If technology brands are rent- fast travel, the gig economy and mobile appli-
ing the space in the mind of the consumer, cation. This frame of reference signals to con-
there may be limited spaces for charity organ- sumers the goal they can expect to achieve by
isations which need donations to be commer- using the new brand. There should be a recog-
cially viable. Even among charity nition of the target market, and the brand will
organisations, bigger ones may be well- make an impact. The brand needs to recog-
positioned than smaller ones in people’s nise who the customers are in this frame of
minds. These challenges are real. Individual reference and rent a space in their minds.
brands, therefore, need to recognise that and The benefit the brand can bring into the
make a little effort to differentiate themselves frame needs to be highlighted. Likewise, the
and carve a niche. brand needs to be aware of competitors (like
taxi drivers). For a charity organisation, the
founder needs to know the needs to be met.
4.3 Conceptualising Brand Perhaps if it overlaps with another charity,
Positioning what are the differentiating factors? It is nec-
essary to recognise the points of parity and
Keller et al. (2002) present three questions points of difference.
that brand owners and managers need to ask
about their brand as they consider developing
a suitable positioning strategy. They call for 4.3.2 Stage 2—Point of Parity
the move beyond concentrating on points of
difference in developing a brand position, Recognising a unique need is not enough to
suggesting that brand positioning should be conceptualise a brand position; the need must
more than just highlighting the benefits that be met uniquely. Starting another Uber in
set each brand apart from the competition. another country is not sufficient. What is the
4.3 · Conceptualising Brand Positioning
69 4
.. Fig. 4.2 Conceptualising brand positioning. (Adapted from Keller, Sternthal & Tybout (2002))
country’s unique and specific need? The brand a new brand not considering those features
needs to recognise how best to provide that will not be well received by consumers.
service. Keller et al. (2002) suggest that brands These points of parity can either be based
must offer to give consumers reasons why on the category of the brand, something
their product should be considered a legiti- unique to the category of the brand (driver
mate and credible player within that frame. A signs up on app to indicate availability, users
brand needs points of parity to be considered sign in on app to book driver) or competitive
in the eyes of the consumer. There are associa- points of parity which are designed to negate
tions that are not necessarily unique to the a competitor’s point of difference (Aaker
brand but may be shared with other brands. If 2013). This could be a function on the taxi
the brand does not have these associations, app to allow a consumer to make an emer-
they will not be considered. The quality of gency call or iPhone and Galaxy running on
solutions within the frame of reference and in different operating systems. This feature is an
comparison with competitors will influence effort towards standing out in the crowded
their chance of winning customers (Aaker, market, even though the brand is still part of
Points of Parity and Consumer’s Brand the market.
Preference 2013).
The point of parity is about being a part
of a group, having the required features of the 4.3.3 tage 3—Compelling Points
S
group and knowing there is the need to stand of Parity
out and be different. A new app may be devel-
oped to ease transportation in a location, but The standing out should, however, not be to
if they charge the user to download the app, the detriment of the brand and make financial
there is no point of parity as in most cases, sense. This means, any decision a brand makes
such apps are available for free download. to shine among equals must have a positive
Apple iPhone and Samsung Galaxy both have impact on the brand and the brand users. It
camera, touchscreen and run on an operating must be a win-win situation for both. You
system. Therefore, a new mobile phone with- may want to make a mobile phone with a bat-
out those basic features will fail. Companies tery that lasts for 48 hours, that makes you
are now adopting more ethical practices, and unique but if the phone weights 0.5 kg, it will
not be appealing (Apple’s iPhone 11 Pro Max very often in the public domain, unlike their
is perhaps the most cumbersome smartphone, values and mission. While documenting a
weighing 0.2 kg). People will instead spend positioning strategy is relevant, it is important
time charging their phone rather than carry a to note that brand positioning is more than
massive brick around. just having a statement. It is about acting and
Therefore, in positioning their brand, the taking responsibility.
brand owner must ensure that their solution is I advocate for the inclusion of the brand
not just unique, but that it is positioning statement in the brand philosophy.
4 55 relevant to the problem, This is a way for the brand to have control of
55 desirable to the customers and the positioning. Since companies has limited
55 deliverable by the staff. control over how consumers perceive their
brand, the companies need to provide a brand
This desirable and deliverable unique solution positioning statement to encourage and moti-
highlights points of difference (PODs) for the vate their staff. The statement highlights what
brand in strategic positioning. It emphasises the company wants to achieve in terms of their
the features and attributes of the brand that position in mind of customer and at point of
consumers can associate with the brand. Con- purchase. The statement should address the
sumers can say that this is not just another customers (target audience), the market (and
Uber or Lyft app; it is different because of how the brand differs from competitors) and it
this and that. Brands can take ownership of should be backed up by evidence that the posi-
these exclusivities over other brands in the tioning strategy is achievable.
category. They can take pride in the fact that Here are some examples:
they are the only brand with such benefits 55 Disney provides unique entertainment for
when compared with all others brands in the consumers seeking magical experiences and
market. memories. Disney leads the competition by
Balancing these conceptualising stages is providing every aspect of related products
essential for brand positioning. While the gap and services to the world and appealing to
and need have been established, the point of people of all ages.
parity should convince the buyer that it has the 55 Starbucks offers the best coffee and
essential feature to meet their needs and at the espresso drinks for consumers who want
same time has the point of difference to make premium ingredients and perfection every
it unique, stand out and be desirable. While we time. Starbucks not only values every
all need mobile phones with a camera (point interaction, making each one unique, but
of parity), we need a camera of a particular the brand commits itself to the highest
quality (point of difference). While we all need quality coffee in the world.
soft tissue paper (point of parity), we still want 55 For individuals looking for high-quality bev-
the tissue paper sources from a sustainable erages, Coca-Cola offers a wide range of
source (point of difference). Point of parity the most refreshing options—each creates a
tells the customer that the product or service positive experience for customers when
meets their basic needs. Point of difference they enjoy a Coca-Cola brand drink.
tells them why the product is the best option Unlike other beverage options, Coca-Cola
over other brands that have basic f eatures. products inspire happiness and make a
positive difference in customers’ lives, and
the brand is intensely focused on the needs
4.4 Brand Positioning Statement of consumers and customers.
55 Alaska Airlines is creating an airline people
There is always a call for brands to have a love. Each day, we are guided by our core
brand positioning statement; this is closely values of own safety, do the right thing, be
related to the idea of the brand philosophy. kind-hearted, deliver performance and be
This is known to exist for big brands but not remarkable at work and in our communi-
4.5 · Importance of Brand Positioning
71 4
ties. Alaska Airlines also fosters a diverse estal; the stakeholders can all work together to
and inclusive culture and is an equal- achieve that goal. This gives direction to every-
opportunity employer. one involved. For a brand that wants to posi-
tion itself as an innovative and customer-centric
In these examples, you see the audience— brand, position strategy ensures that the
consumers seeking magical experiences and brand’s core values are communicated, they
memories, consumers who want premium remain innovative and keep developing quality
ingredients and perfection every time and products, retail staff are well trained to provide
individuals looking for high-quality bever- quality service when engaging with customers
ages. You can also identify the market and the in stores, and the aftercare team responds
competitors—Disney leads the competition, promptly (Mogaji and Erkan 2019). The objec-
Starbucks offers the best coffee and creating tive is achieved when everyone follows the
an airline people love. These are promises that direction as described by the brand position-
the brands are making and instilling same ing strategy. The consumer experiences all this
into their staff to make sure every customer positivity at the touchpoint and begins to have
benefit from the promise. a better perception of the brand. Even when
It is important not to get tied down by the things are not going as planned, the brand
strategic need for a brand positioning state- position strategy offers reassurance and a
ment, but to put actions in place to enhance reminder of the brand direction.
positioning in the mind of the consumers. To
make sure the promises are fulfilled. For those
who want to have a brand positioning 4.5.2 Reputation
statement, that is all well and good, but it is
important to note that it is more than just A brand that is well-positioned in the minds
making a statement but rather, taking action of consumers is considered reputable. This
to ensure that consumers are getting what means, brand reputation has to do with views,
they have been promised. opinion, beliefs and feelings of brand users
towards a brand. Brand reputation refers to
the way a certain brand (human or a company
4.5 Importance of Brand offering services) is viewed by other brands
Positioning and their users. A favourable brand reputa-
tion simply means that brand users, people in
Often brand managers and owners may not the society, regulators and proprietors trust a
fully appreciate the benefit of securing a place brand, and feel satisfied using the brand’s
on that pedestal in the mind of the consumer, products, services or goods. It is also about
and they may think creating an appealing brands wanting to associate with the consum-
product and brand identities like a logo and a ers because they have shared ideas, worldviews
website are all that is needed for effective or philosophies. Brand positioning helps the
brand management. It is, however, paramount brand to articulate how the value they offer is
to recognise that securing a place in that cov- different (Mogaji and Danbury 2017). Their
eted spot can add value to the brand. Though reputations can create demand for the prod-
brand positioning takes effort, it is essential uct and more positive associations. Other
for brand management. brands that recognise the positioning can
develop a partnership to aid the brand. Adidas
and Kanye West worked together because of
4.5.1 Direction the positioning of the Kanye Brand. Likewise,
Adidas and Beyoncé worked together for the
As with the brand philosophy and core values, Blue Ivy clothesline. Reputable brands are
brand positioning provides direction for the trustworthy and reliable. Consumers can
brand. It provides a common goal to appeal to retain the brand in their mind with the assur-
the consumer and retain that space on the ped- ance that it will never disappoint.
4.5.3 Increased Sales with options, a well-positioned brand becomes

the preferred brand. Positioning ensures that
If a customer has a positive perception of a the brand is easily distinguished among other
brand, it becomes easier to make a choice. If competing brands. The brand can use their
you like it, you will always automatically go point of difference as a distinct feature. This
for it, even though there could be many alter- makes the brand stand out in the market as
natives. Brand positioning makes it easier for well as in the customer’s mind. These distin-
consumers to choose because they can rely on guishing features can also aid recall, especially
4 the positive image they have of the brand. at the point of purchase. It enables the brand
Brand reputation also helps brand users make to compete on value and not on price.
informed decisions. The brand has highlighted
its unique values, it has differentiated itself
from others, and these features appeal to con- 4.5.5 Meeting a Gap in the Market
sumers. If consumers have a brand in their
mind, they will recommend it to others, buy it Strategic positioning of a brand allows it to
for others and continually use it. This recognise and possibly meet a gap in the mar-
highlights the benefit of securing that space in ket. To explore its value and how it differenti-
customers’ minds as it brings continuous and ates itself from others, the brand can look at
repeat purchases, thereby increasing sales and the saturated areas of the market and areas
brand value. which need attention. As illustrated in
. Fig. 4.3, a university positioning itself on
distance (from the country’s capital) and
4.5.4 Distinguished UCAS points for admitting students might
discover that they are in the top right quad-
Brand positioning strategies ensure that rant which is for those who are farther away
brands break through market clutter. With its from the capital and still requesting consider-
points of parity and points of difference, its ably high UCAS points. The university may,
values and benefits are well highlighted and therefore, recognise a gap in the market for
recognised. When consumers are swamped universities closer to the city and still accept-
.. Fig. 4.3 University brand Far from

positioning and market gap capital
recognition. (Source: Author)
Low High
UCAS point UCAS point
Market gap
Close to
capital
4.6 · The Changing Brand Positioning
73 4
ing high scores. It is not surprising to see uni- tive brand positioning to extend their brand
versities in Sunderland and Newcastle, up in and develop deodorant. Similarly, Shell is
the north of England, opening campuses in known for extracting crude oil, their negative
London. impact on the environment is well known.
Filling the gap could also be a form of They, however, have extended into the UK
product extension. Nivea started as a skin energy industry and provide 100% green
cream which is “gentle” and “protective.” energy. This brand is known for causing dam-
They recognised their point of difference but age to the environment, but now, they have
were also able to see a gap in the deodorant identified a gap in the market and are supply-
market. They were able to build on the posi- ing sustainable energy.
Beyoncé is an American singer, songwriter, nise and respect the wishes of her fans. This
record producer and actress. She is one of the enhanced positioning has also brought other
most recognisable figures in contemporary associations. In 2019, she partnered with
music. She is a brand. She has a position in the Adidas to design and sell a gender neutral
minds of people. In 2016, she launched the clothesline which includes shoes, clothes and
Athleisure clothing brand alongside Sir Philip accessories, mostly featuring signature Adidas
Green, the chairman of Arcadia Group, a retail triple-stripes and maroon, orange and cream.
company that includes Topshop, Topman, Beyoncé recognised her brand position,
Wallis and Dorothy Perkins. The arrangement and she did not take it for granted. She was able
was that the Athleisure clothing brand, Ivy to manage the process of buying out a partner
Park, would be sold at Topshop. who may have affected her reputation. Her
In 2018, there were allegations that Sir position remained intact and she was able to
Philip had taken legal action to prevent publi- build another relationship with another brand.
cation of complaints of sexual harassment of Adidas recognised her reputation and was able
staff. There are indications that this may have to associate with her to launch the Ivy Park
affected the business relationship between the clothesline.
two partners.
Beyoncé had pressure from her fans and
Reflection Questions
campaign groups to withdraw from the com-
5 Why do you think it was important for
mercial partnership in response to the allega-
Beyoncé to end the business venture?
tions against the businessman, arguing it was at
5 Do you think consumers and fans would
odds with her stated principles. She had to end
appreciate Beyoncé’s decision to end the busi-
the business venture by buying him out of Ivy
ness venture?
Park.
5 How important was the brand positioning of
Beyoncé as a brand is well-positioned in the
Beyoncé in starting another partnership with
mind of the fans. She is well-liked. To maintain
Adidas?
her position on that pedestal, she had to recog-
4.6 The Changing Brand ever, does not stop brand owners from improv-
Positioning ing their effort to ensure a better brand
position. There are possibilities for the brand
While taking into consideration that brands position to move.
may try to conceptualise their brand position- Here I describe the changing position
ing, the actual position of the brand lies in the along a spectrum from −100 to +100. While
minds of the consumers. This location, how- brands are making an effort to be innovative
RED Telco PURPLE Telco

BLACK Telco Known and
Known but Unknown BLUE Telco Liked
Disliked Brand Known Brand
Brand Ranked-0 Brand Ranked+80
Ranked -80 Ranked+20
-100 0 +100
.. Fig. 4.4 The changing brand positioning—Stage 1—no action. (Source: Author)
and offer quality service, they have the poten- 55 BLUE Telco—Known Brand
4 tial to move along the spectrum and become
more desirable. On the other hand, if brands The consumer has seen this brand around.
are not improving their services, communicat- There have been advertisements on social
ing their positioning and demonstrating their media and billboards to present unique fea-
values at every touchpoint, they have the ten- tures of this telecommunications company.
dency to be disliked and ignored by people, Friends and family are using the mobile net-
especially the brand users. work, but they sometimes complain of poor
network. The brand needs to improve its ser-
vices to convince the consumer and move
4.6.1 Stage 1—No Action higher on the spectrum. The awareness and
connection through friends and family may
. Figure 4.4 illustrates four different types of have helped the brand retain that positive per-
brand that have not taken any action to ception in the mind of the consumer.
enhance their positioning and how they are 55 PURPLE Telco—Known and Liked
perceived in the minds of consumers. Brand
55 RED Telco—Known but Disliked Brand
After a disappointing experience with RED
The consumer is aware of this brand, remem- Telco, the consumer has switched to PURPLE
bers it, but has a negative memory of it. The Telco, and it has been great so far. The con-
customer may have used the service of RED sumer liked their offering, their customer ser-
Telco before but felt disappointed by the qual- vice and the freebies that they offer. Even
ity. The customer complained, but no action though they are more expensive, the consumer
was taken. Again the customer asked for a is receiving good value for the price. The
refund, but the request was ignored. These brand is well-liked, and the consumer is will-
actions banished RED Telco to a red and dan- ing to share their experiences with friends and
gerous corner in the mind of the consumer. family.
The customer disliked the brand because of
their customer services, and the customer
might not hesitate to share their negative 4.6.2 Stage 2—Action by Brands
opinions on social media. Even though the
brand may keep advertising their offers and In . Fig. 4.5, the changes in brand position-
update their brand philosophy on their web- ing are presented after the brands have taken
site, they are wrongly positioned in the mind action to enhance their brand positioning. We
of the customer. can assume this to be after a year. It is impor-
55 BLACK Telco—Unknown Brand tant to note that these actions could have both
positive and negative impacts on the brand.
The consumer is not aware of this brand. 55 RED Telco—Known but Considered
With a lack of awareness, the brand does not Brand
have a space in the mind of the consumer. Per-
haps this is a new brand entering the market Hypothetically, last year, this was a known
or the country, and they have not done much but disliked brand, however, things have
publicity about their offering. changed with the brand. New management
4.7 · Enhancing Brand Position
75 4
PURPLE Telco
BLACK Telco RED Telco Known and
BLUE Telco Unknown Known but Liked Brand
Known but Brand Ranked+60
Considered Brand
Bisliked Brand Ranked -0 Ranked +40
Ranked -20
-100 0 +100
.. Fig. 4.5 The changing brand positioning—Stage 2—action by brands. (Source: Author)
came on board and started a new strategic Still, the liked and preferred brand, but their
direction. The brand reached out to their pre- position on that pedestal is being challenged.
vious customers; the brand informed them Their positioning is reducing in the mind of
about the changes that had occurred within the consumer. This reduction could be
the organisation. They communicated their because they are not innovative and creative
new position to the stakeholders. The brand with their product development and service
was able to further integrate their brand quality. They are getting lackadaisical about
through advertising, marketing communica- their services and not providing excellent
tion, public relations and engaging in social value for the high price they are charging. The
responsibilities. The customer recognises consumer is watching, waiting for the con-
these changes, starts reading reviews and com- tract to expire and they may consider an
ments to friends on how RED Telco has alternative.
changed. The brand that was in the red zone
last year can then move to the green zone and
become a considered brand. Remember PUR- 4.7 Enhancing Brand Position
PLE Telco is still on the pedestal as the
preferred brand, but RED Telco will have to Brand position is the brand user’s perception.
be consistent with their brand positioning Brand positioning can mostly be seen as the
strategy to retain a favourable position in the conceptual place or position that a brand
mind of the consumer. wants to own in the target brand users’
55 BLACK Telco—Unknown Brand mind — the benefits or advantages that a
brand wants the brand users to think they
The consumer is still not aware of this brand. could get from the brand whenever they think
They have not done much to position them- of a particular brand. It should be realised
selves. Therefore, while others are moving that an effective brand positioning strategy
along the spectrum, they have not moved. will maximise customer relevancy, offer
55 BLUE Telco—Known but Disliked Brand competitive distinctiveness and maximise

brand value. This will help the brand to con-
This was the brand that was previously in the tinually grow and make more profit. The
green zone of positive attitude last year. Per- brand owner must try to ensure that the brand
haps because of their poor customer service is well-positioned in consumers’ minds. The
and mobile phone network, the consumer no brand owners may not know their exact posi-
longer likes the brand. The fact that family tioning, but they should aspire to make sure
members had to change their lines because of their brand is well received. The brands can-
the company’s bad network may have contrib- not create this brand position, and they do
uted to this dislike. Unlike the previous RED not have access to the pedestal in the custom-
Telco, which was in a deep red, Blue Telco is er’s mind. Instead, the brand can work on
not in the deep dislike zone, but the brand enhancing their position. For a new brand,
needs to be strategic in their positioning lest like BLACK Telco in the previous illustration,
they get ignored. the consumer does not know about it, and
55 PURPLE Telco—Known and Liked therefore they have not placed it on any pedes-
Brand tal. As brands move along the spectrum, they
have the responsibility to enhance position- 4.7.3 Critical Evaluation

ing. Here are a few steps brand owners can of the Brand
follow in order to do this.
The brand manager needs to take responsibil-
ity for the critical evaluation of the brand to
4.7.1 Brand Philosophy develop a positioning strategy. This may fol-
low on from the research which explores the
This follows on from the previous chapter consumers’ perception of the brand. The
4 where we saw brand philosophy as a guiding brand managers need to recognise their pres-
principle and foundation of the brand. For a ent position and know where they want to be.
brand to stand out from the competitors, The brands need to know what they offer and
they must have a philosophy that reflects this. how they can be shaped to enhance their posi-
They must be able to show that they are striv- tion. This critical evaluation should involve
ing to be different. The brand philosophy can talking to the stakeholders to understand
reflect creative and innovative product devel- what the brand stands for and what is unique
opment and quality service delivery (Hakala about it. For example, there could be many
et al. 2011). The brands make promises, they charity organisations providing support for
publicly declare those promises, and stake- developing countries, how would a new char-
holders are on board to deliver them. The ity position itself to work in that sector? It is
more those promises are delivered, the more essential to make sure that such questions are
experiences are enhanced, thereby ensuring a answered before moving forward.
positive attitude towards the brand and bet-
ter positioning.
4.7.4 Product Development
4.7.2 Research Brands that want to be perceived as reputable
brands must have evidence of their worth.
Research is an integral part of brand manage- They can demonstrate this with product
ment. At every stage of the management pro- development. By being creative and innova-
cess, research is needed. Likewise, in enhancing tive and. offering products that no one else is.
the brand’s positioning, it is essential to recog- Their design might be unique, so everyone
nise the role of research. To identify the wants to be associated with it. One of the rea-
uniqueness of their brand, to understand how sons why Apple is well-positioned in their cus-
consumers are perceiving and recognising tomers’ minds is because of their innovative
their brand, the brand needs to understand its products. The iPhone is recognised and
present position. The brand needs to know if appreciated for its design and functions. While
it is desirable to customers. The brand needs there may be other mobile phones on the mar-
to know if they are recognised in the market, ket, the iPhone has a special connection with
liked or disliked. The research should uncover people. The phone symbolises luxury and
a lot of insights about the company, which modernity, hence users continue to key into
will be relevant in developing their position- the brand’s philosophy and buy its products.
ing strategy. The brand needs to know how
they can beat their competitors in product
design or service delivery. They need to recog- 4.7.5 Service Delivery
nise their capabilities, and how to meet those
demands. Perhaps they will require extra staff For those brands that may not be creating
in the store or need to hire more designers to products, they can enhance their brand posi-
work on the product. tioning through quality service delivery. This
4.7 · Enhancing Brand Position
77 4
is about creating an experience for the cus- and emails and phone enquiries are promptly
tomers. The consumers engage with these attended to. Consumers want brands that are
brands, and they feel satisfied with their expe- responsive even within the busy schedule.
rience, and so are willing to tell their friends Brands that can offer this personal and ade-
about it. Why do you always want to go to quate level of engagement are better posi-
that bar, fly that airline or go to that salon? It tioned in the mind of the consumers. These
is about how they made you feel, the aura and are brands that are more likely to be recom-
experience of their service. The conscious mended and revisited by customers or brand
effort of the brand owner to go beyond the users because they have a positive perception
usual service offering is an effort towards cre- of the brand developed from their previous
ating that brand positioning. An example here positive experience with it.
could be the service experience at Starbucks,
there is a sense of belonging and association
with the brand, while there may be many cof- 4.7.7 Brand Identity
fee shops, there is something different about
Starbucks’ coffee served in comfortable sur- This is a physical representation of the brand
roundings by attentive staff and ensuring a which can also enhance a brand position. The
personalised experience. consumer needs to feel a sense of connection
with the elements of the brand in order for the
brand to gain a position in the consumer’s
4.7.6 Consumer Engagement mind. The identity could be a form of luxury,
and consumers may find this appealing. The
This positioning strategy goes beyond prod- identity is not just about the logo, but it could
uct development or service delivery, price also be the product design or the store layout
development or service delivery; it is about (Wayne et al. 2020). The Tesla Cybertruck
how the brand engages with the consumers. may have an awkward shape, different from
Understanding the customer’s experience and the usual truck that the consumer has seen,
behaviour, tailoring the engagement and rec- but that is a unique identity for Tesla, which
ognising the consumers as individuals. makes the vehicle more valuable than others.
Patterson et al. (2006) define customer engage- The sustainable packaging used by a brand
ment as the level of a customer’s physical, may be what is required for the brand to be
cognitive and emotional presence in their rela- positioned on that high pedestal in the mind
tionship with a service organisation. Vivek of the consumer (Magnier and Schoormans
et al. (2012) argue that customer engagement 2015). The identity of the brand can indicate
is a relationship beyond purchase, highlight- how much effort the brand is making to ensure
ing the intensity of the consumer in partici- a positive positioning in the minds of
pating and connecting with the brand’s consumers.
offerings and activities initiated by either the
customer or the brand. Hollebeek (2011,
p. 786) describes “customer brand engage- 4.7.8 Communication
ment” as “the level of a customer’s motiva-
tional, brand-related and context-dependent This is a creative strategy to influence the
state of mind characterised by specific levels brand’s positioning. If the message is not
of cognitive, emotional and behavioural activ- clear, and consumers do not feel any connec-
ity in brand interactions.” tion, the position is not established in their
It is necessary to ensure consumers are mind. The brand invests resources in creating
happy and feel positive while engaging at dif- marketing communications to convey the
ferent touchpoints. This engagement could be value of the brands (Keller, Unlocking the
ensuring that the delivery is sent out on time, power of integrated marketing communica-
tions: How integrated is your IMC program? positive attitude towards Barclays Bank
2016). The aim of these marketing communi- because of their past experiences in their
cations is to remind and reassure the consum- home country. It was not surprising, however,
ers about the place of the brands. They can be to see that some people in the United Kingdom
very expensive, and this gives the global brand had a negative perception of these banks.
an advantage as they can advertise around the Barclays was forced to pull out of South
world and keep people aware of their product. Africa in 1986 after protests against its
This should not, however, limit a brand with a involvement during the apartheid regime.
4 smaller reach to effectively plan their commu- While some may like Barclays, many still do
nication strategy and engage with the con- not like the brand because of their experience.
sumers. This marketing communication can Consumer perceptions are relative and depend
also involve other forms of promotions such on their experience. Nevertheless, it is essen-
as using social media influencers, celebrity tial to ensure that the majority of the consum-
endorsement and public relations (Wang et al. ers have a positive experience at every
2020; Gökerik et al. 2018). Managers can use touchpoint in order to enhance positive atti-
these strategies to influence consumers’ per- tudes towards the brand.
ception of their brands.
4.8.2 Brand Owner

4.8 ho Is Responsible for Brand
W
Positioning? While recognising that consumers dictate the
position of the brand, the brand owners/
The brand positioning is in the mind of the brand managers have the responsibility to
consumers; however, both the consumer and ensure that they do everything possible to
brands are responsible for enhancing and ensure that their brand’s position in the mind
shaping this position. of the consumers is high, right on that cov-
ered pedestal. This involves ensuring effective
communications of the brand positioning,
4.8.1 Consumers engaging effectively with stakeholders and
making sure every customer at different
Consumers are the entities that buy and use touchpoints is served very well.
the products or services of an organisation. The brand manager is also responsible for
Consumers determine the position of the dealing with any issues that may affect the rep-
brand. They have experience in comparing the utation of the brand. The brand manager is
brand with many others, they have engaged expected to avoid scandal and anything that
with the brand’s staff and messages, and they may tarnish the image of the brand. It is
have formed an opinion about the brand. It is important to note that once the reputation of
also important to note that this brand posi- the brand is damaged, a customer might
tion may not be for a homogenous customer replace the brand with another one on the ped-
base. While some individuals may not like a estal. The staff also contributes to the posi-
brand due to their personal experiences, many tioning of the brand, and they are expected to
may like the brand. follow the brand’s guiding principles, to ensure
Mogaji (2018) illustrated this with a survey that consumers are well served, and that inno-
of attitudes towards financial services. vative products and services are designed and
Participants from China who had come across delivered. These actions can shift a brand posi-
HSBC had a positive attitude towards HSBC tion from a disliked brand to a considered
when they got to the United Kingdom. brand, and similarly, such an action can move
Likewise, participants from Nigeria had a a little known brand to a disliked brand.
4.9 · Challenges of Brand Positioning
79 4
Brand
positioning Consumer
strategies engagement
Brand
position
Brand
consumer
Brand
owner
.. Fig. 4.6 Brand owner and brand consumers with joint responsibility towards brand positioning.
(Source: Author)
As illustrated in . Fig. 4.6, both brand have stopped using the iPhone. This highlights
owner and customer have a role to play in challenges for the brand position, especially
developing the brand position. The brand as brand managers must deal with customers
comes up with various brand positioning who are human and are bound to change. The
strategies such as product development and brand must however try always to satisfy their
marketing communication. The consumer, on brand users at all times. Some of the chal-
the other hand, engages with these brand lenges are discussed below.
position strategies presented by the brand
owners. From those engagements, the brand
position is shaped. It is essential to remember 4.9.1 Consumers Are Subjective
that this act tilts more towards the consumers
and their level of engagement. Brands may Consumers may not necessarily be convinced
have to keep trying, and consumers have the by a brand positioning strategy. Humans are
final say of the position. not easy to satisfy; there are changing con-
sumer behaviours, lifestyles and expectations
which present challenges for brand managers
in their effort to position their brands. While
4.9 Challenges of Brand effort may be made to enhance the brand’s
Positioning perception, this may not always go down well
with the customers. There could be those who
It is not possible to satisfy every consumer. feel they cannot trust the brand’s strategy and
That is why not everyone in the world is using therefore convince others not to trust them
an Apple iPhone. Though it might be sleek either. Likewise, there are situations whereby
and beautiful, some people have vowed never a little effort from the brand can ensure a bet-
to use an iPhone, and likewise, some people ter brand position.
A Twitter user shared a video of the CEO of A typical video of a CEO yelling at a cus-
Fitness Central, located in the Lekki area of tomer would have gone viral and caused mas-
Lagos State Nigeria, yelling at a supposed cus- sive damage to the reputation of the brand, but
tomer. @ChallengerNG tweeted: “Here is the in this case, people demanded the background
CEO @FitnessCentNG Lekki, Apparently, a to the story. They were more eager to know
customer had a complaint and took it forward what exactly transpired between the customer
4 to him, but he did not like the way he went and the CEO. The increase in followers demon-
about it. So, he reacted as seen in the video by strates that the Fitness Central brand has been
being dramatic, loud and close to being violent placed on a higher pedestal; the brand is now
in front of other customers.” even better positioned in the mind of the con-
Instead of the Twitter users complaining sumer than before the video went viral. This
and boycotting the fitness centre, it was the suggests that customers may be subjective in
other way around. Twitter users instead ques- their engagement with brands and how they
tioned the handle that tweeted the video, ask- position the brand in their mind. After all, we
ing for an explanation of what transpired are all humans.
between the CEO and the supposed customer,
which led to the outburst. The handle that
posted the viral video received backlash, and
5 How do you understand the subjective nature
many people belied the handle has not released
of consumers?
the customers’ altercation with the CEO. There
5 For what reasons could a brand owner get
were comments which suggests that the CEO
angry with a customer despite the impact this
would not have reacted like that unless he has
could have on his brand?
been very provoked. Many people decided to
5 A typical video of a CEO yelling at a cus-
follow the @FitnessCentNG account. Within
tomer would have gone viral and caused mas-
24 hours, the number of followers moved from
sive damage to the reputation of the brand, but
600 to over 6000. Twitter users were in solidar-
why do you think consumers wanted more
ity with the brand. Twitter users tweeted that
background to the story?
people should stop telling a one-sided story.
Asking for the full story, they commended the
CEO’s energy and confidence.
4.9.2 Competing Attention mindful of how they engage with brands,

especially those that do not align with their
Brands need to recognise changing consumer values.
behaviour. There are many things competing
for consumers’ attention. Many consumers do
not even have a pedestal for any brand, and 4.9.3 Competing Brands
they cannot be bothered to be loyal to any one
brand. Many other commitments squeeze out In addition to many other factors competing
the position of the brands in the minds of for consumers’ attention, there is brand com-
consumers and in some cases, the brands are petition. Even as many brands are trying to
removed. Advertisements try to raise brand stand out and improve the brand position,
awareness and consumers skip them. There many other brands are doing likewise (Bagga
are opportunities to try products before buy- et al. 2016). This competition brings a chal-
ing, and consumers may feel they are being lenge for brands with regards to their position-
tempted into spending their money. While ing. Some brands may want to deliver on price
brands are making this effort, consumers are and feel they are compromising on quality,
4.10 · Considerations for Brand Positioning
81 4
while some may focus on quality at the expense 4.10.1Process
of price. With that, consumers are therefore
spoilt for choice of what and where to buy. The brand manager needs to recognise that
The now-discontinued OS Symbian was brand position is a process (Koch and Gyrd-
the first popular smartphone operating system Jones 2019). This process does not stop at any
in the world. However, they were driven out of point in the brand management cycle. It
the market as new operating systems were requires regular monitoring, research and
released. Google introduced android in 2007, evaluation to know how the brand is being
and it has become the most popular smart- perceived and how it can be further enhanced.
phone operating system in the world. Since its This is an integral part of the brand manage-
release, sales of smartphones running on ment process (Maarit and Keränen 2014). The
android have grown sharply over the years. brand manager must recognise that it is a
Apple’s iOS is the second most popular operat- team effort; many other people will be involved
ing system for smartphones. These competitors in the process (depending on the size of the
posed a challenge for OS Symbian, which it brand). It is hard work and results may not
could not withstand, and it was discontinued. appear immediately; consistent and proactive
effort is, however, encouraged.
4.9.4 Financial Limitation

4.10.2Consumers’ Expectations Can
It takes financial commitment to ensure quality Change
service delivery and product development. For
brands that do not have the financial resources, While taking into consideration that the con-
it could be a challenge for them to position sumers make the ultimate decisions about the
themselves and compete with more prominent brand position (Priporas et al. 2017), it is
brands. Amazon ranked as America’s fourth- essential to keep in mind that humans can
largest advertiser in 2017, up from number 8 in change. Consumers’ expectations can change
2016 and number 70 in 2010. In 2018, Amazon as well. Perhaps if the consumer does not have
spent an estimated $3.4 billion on US advertis- the financial capabilities to buy a preferred
ing and promotions, up 28%. Amazon spent brand, they might consider another one. If
more money advertising itself in the United the considered brand serves the purpose, and
States last year than General Motors, Ford and it is further enhanced through effective com-
Walmart (Doland 2018). These are examples munication and service delivery, that brand
of effort towards creating awareness of the may end up replacing the initially preferred
brand and enhancing its position. It may not brand on that pedestal. Likewise, the brand
be financially viable for small brands to spend integration strategies of the brands, including
so much on advertising. However, it is better to their product development, customer service
start small, be consistent and remain faithful to and communication can also influence the
the core values and philosophy of the brand. expectations of the consumers. When a brand
Most of the big brands also started with lim- begins to demonstrate capabilities, consum-
ited financial resources. ers’ expectations may change.
4.10 Considerations for Brand 4.10.3Brand Position Changes

Positioning
This is also closely related to the changing
Here are some key considerations for brand expectations of consumers. Brand position
managers working on the process of improv- can change as a response to consumers’
ing their brand’s positioning in the minds of changing behaviour. Brand positioning is
consumers. dynamic. It is, however, essential to recognise
that while a brand position can increase, it can 4.11 Conclusion

also decrease. Recognition and respect for
that brand placed on that pedestal in the mind A well-positioned and successful brand must
of the consumer may be lost and not regained. try to stand out in a competitive marketplace.
Many years ago, the Blackberry Messenger To be well-positioned in the minds of the con-
was on that coveted pedestal, but for many sumers, brands need to keep improving on
people, it was replaced by WhatsApp. This their product development and service qual-
messenger, once positively received, now no ity. They need this progress to retain a space in
4 longer exists. These changes should be an the minds of consumers. Many brands are
indication for brand managers that they ought competing for the attention of consumers and
to regularly evaluate the position of their brands need to recognise that it is about build-
brands, work with stakeholders, be innovative ing up experiences, brand trust and loyalty.
and respond strategically to changes. If they They need to be aware of what makes them
do not do this, the brand will be forgotten. unique and effectively communicate and dem-
onstrate it. Consumers must see that the
brand’s promises are being fulfilled.
4.10.4Brand Reposition Regardless of the brand’s actions, the posi-
tioning is what the consumers’ think of it.
Managers should be aware of the possibilities Human nature is a limitation; brands must
of repositioning their brands in the minds of recognise that they cannot be everything for
consumers (Jowitt and Lury 2012). This may everybody. They need to rely on their brand
be due to mergers or acquisitions or due to a philosophy, core values and beliefs to deliver
new strategic direction. Many car manufac- products that consumers can engage with.
turers like Volkswagen (with the e-tron brand) There may be limitations due to the size
are investing in electric cars because they want and age of the brand. While more established
to reposition their brands through product brands may have a better position in the minds
development, responsible business practices of consumers, brands can evolve and improve
and sustainability. on their position. Though it may take a long
time, it is worth doing. This is because the
positioning will ensure a unique brand, it will
4.10.5Positioning Statement build a positive association and ensure the
brand’s reputation.
It is essential to recognise the value of a posi- The process of brand positioning is not an
tioning statement. I recommend its inclusion easy task, and it is a long-term project. The
as part of the brand’s philosophy. The posi- brand works towards recognising their sus-
tioning statement builds on the idea of the tainable competitive advantage (SCA) and
brand philosophy and demonstrates to the integrate their values over a continuous period
stakeholders how the brands want to be seen. (Mahdi et al. 2019). Even though a consum-
This is useful for the staff who are working er’s behaviour may change, communication is
with the brands and the consumers engaging essential (Miao 2019). The brand should not
with the brands. There are, however, possibili- hesitate to work on its brand positioning
ties that these positioning statements may not strategies continuously. Consumers are watch-
align with the expectations of the consumers ing, and they are observing brands that align
(Woods 2020). The brands need to identify with their values; they are considering other
this possible incongruity through research brands as well. Very soon, they may replace
and shape their business practices to address the brands on that coveted pedestal in the
it to the best of their capabilities. consumers’ mind.
References
83 4
image. Asia Pacific Journal of Marketing and
Key Points Logistics 30 (5): 1222–1238.
Hakala, U., S. Lätti, and B. Sandberg. 2011.
55 Brand positioning is what the consumer
Operationalising brand heritage and cultural heri-
thinks it is. Based on their experience and tage. Journal of Product and Brand Management 20
interaction, they put the brand where it (6): 447–456.
belongs in their minds—either in a place Hollebeek, L. 2011. Demystifying customer brand
easy to remember for next purchase or in a engagement: Exploring the loyalty nexus. Journal of
Marketing Management 27 (7–8): 785–807.
place forgotten in the back of their mind.
Jowitt, H., and G. Lury. 2012. Is it time to reposition
55 The brand owners and brand consumer positioning? Journal of Brand Management 20 (2):
create the brand position. 96–103.
55 The brand position can change. It is a Kalafatis, S., M. Tsogas, and C. Blankson. 2000.
dynamic concept. Positioning strategies in business markets. Journal
of Business & Industrial Marketing 15 (6): 416–437.
55 Brands should not be lackadaisical; they
Keller, K. 2016. Unlocking the power of integrated mar-
need to recognise that there are other keting communications: How integrated is your
competing brands. IMC program? Journal of Advertising 45 (3): 286–
55 The brand should continually and proac- 301.
tively communicate and engage with con- Keller, K., B. Sternthal, and A. Tybout. 2002. Three
questions you need to ask about your brand.
sumers.
Harvard Business Review 80 (9): 80–89.
Koch, C., and R. Gyrd-Jones. 2019. Corporate brand
positioning in complex industrial firms: Introducing
a dynamic, process approach to positioning.
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Kotler, P. 2003. Marketing management. 11th ed.
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2. Can you identify examples of brand positioning strategies for industrial firms providing cus-
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Marketing 29 (3): 253–264.
3. Can you differentiate between point of par-
Magnier, L., and J. Schoormans. 2015. Consumer reac-
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4. How would you expect a new brand to visual appearance, verbal claim and environmental
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Mahdi, O., I. Nassar, and M. Almsafir. 2019. Knowledge
5. How vital is communication in brand posi-
management processes and sustainable competitive
tioning? ◄ advantage: An empirical examination in private uni-
versities. Journal of Business Research 94: 320–334.
Miao, Y. 2019. Brand communication of intangible ele-
ments delivery. Journal of Marketing
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85 5
Brand Identity
Contents
5.2 What Is Brand Identity? – 88
5.3 Misconceptions About Brand Identity – 89

5.3.1 rand Identity and Corporate Identity – 89
B
5.3.2 Brand Identity and Logo – 89
5.3.3 Brand Identity and General Acceptance – 90
5.3.4 Brand Identity and Rebranding – 90
5.4 Brand Identity Prism – 90

5.4.1 hysique – 91
P
5.4.2 Relationship – 91
5.4.3 Reflection – 91
5.4.4 Personality – 91
5.4.5 Culture – 91
5.4.6 Self-Image – 91
5.5 The Brand Name – 91

5.5.1 nderstanding the Structure – 92
U
5.5.2 Deciding on the Name – 92
5.5.3 Rebranding the Brand – 93
5.5.4 Available Names – 93
5.5.5 Online Brand Name Generator – 94
5.5.6 Brand Consultants – 94
5.5.7 Protecting the Name – 95
5.6 The Constituents of Brand Identity – 95

5.6.1 isuals – 95
V
5.6.2 Auditory – 103
5.6.3 Tactile – 104
5.6.4 Olfactory – 105
5.6.5 Gustatory – 105

5.7 Benefits of Brand Identities – 106
5.7.1 I dentity – 106
5.7.2 Distinguish – 106
5.7.3 Original – 106
5.7.4 Consistency – 107
5.7.5 Value – 107
5.8 Designing a Brand Identity – 107

5.8.1 T he Brand Owners – 107
5.8.2 Whose Responsibility Is It? – 107
5.8.3 Designing – 109
5.8.4 Consistency – 109
5.9 Brand Guidelines – 109

5.9.1 ho Develops the Guidelines? – 109
W
5.9.2 Who Uses the Guidelines? – 110
5.9.3 What Is the Content? – 110
5.9.4 Why Are Guidelines Important? – 114
5.10 When to Design the Brand Identity – 117

5.10.1 ew Company, New Product – 117
N
5.10.2 Rebranding – 117
5.10.3 Mergers and Acquisitions – 117
5.11 Considerations for Brand Identity – 118

5.11.1 T he Initial Thought – 118
5.11.2 The Designer – 118
5.11.3 The Brand Integration – 118
5.11.4 The Protection – 118
5.11.5 The Change – 119

References – 120
Brand Identity
87 5
Sam and Alex are in the locker room at the their new product was a brand identity that
gym. Sam says that Code is going to come in took six months to complete. Sam advises
soon. Code arrives. Alex wonders aloud how Alex to keep going with the friend and to
Sam was so sure, and Sam answers that they share the design with them when it is finished.
recognise the sound of Code’s footsteps, as This story presents the concept of brand
everyone’s footsteps are different. The sound identity and the fact that it’s not limited to big
of footsteps is a part of someone’s identity, and global brands. The small and new charity
something you can recognise them by. When being founded by Alex deserves a logo, a form
Sam mentions identity, Alex decides to start a of identity to make the charity recognisable.
conversation about brand identity. Alex tells This identity is shared on the website, social
them they are meeting a friend later who is media and even business cards. It is also
going to design the logo for their company. important to note that brand identity is not
They say they do not want the typical images just about logo. Packaging of a product is a
of books and children on the logo, that they form of an identity for brands. The product
want something unique. Code asks if the produced by Code will require packaging that
friend is a professional brand identity designer, makes it different from many other competi-
to which Alex answers that they found the tors. The design of this identity may pose a
designer on a freelance site and that they had challenge, depending on the size of the brand.
talked about colours, values and interest Alex can get a friend to design the identity, but
before deciding on a design. Alex then asked Sam may not be able to get a friend to design
Sam’s opinion, who notes that it depends on a multinational brand identity. This chapter
the size of the brand and what identity they explores how brands can create an identity
want to exude. In Sam’s case, the packaging of and ensure it adds value to their brand.
88 Chapter 5 · Brand Identity
brand! The carrot I uprooted from my garden

Overview is a brand, but what differentiates this from
Brand identity is one of the most exciting what you buy from the store is the brand iden-
components of brand management, and it tity, which is part of brand management. The
presents physical elements that consumers carrot you bought in the supermarket has
can recognise as they engage with a brand. been given an identity which makes it differ-
This component moves beyond the brand ent and distinguishes it from many other car-
philosophy, values and positioning, which rots around the world.
can be deemed as abstract. The identity is Brand identity is one of the most exciting
real, and it has become an integral part of components of brand management, and it
5 brand management. Brands spend a consid-
erable amount of money to develop an iden-
presents physical elements that consumers can
recognise as they engage with a brand.
tity for their brand to appeal to a diverse Imagine the structure of a building, there is a
audience and make them stand out. Brand foundation hidden below the ground. We
must maintain a positive identity. This invest- know it exists but we don’t see it, unlike the
ment by brands and consumers’ interest fur- windows, walls and roofs that are very visible.
ther highlight the value of brand identities. As illustrated in . Fig. 5.1, brand ethics,
The brand owners know consumers want to brand philosophy and brand positions (cov-
identify a brand; the brand recognises the ered in the previous chapters) are like the
need to be different and still be recognisable. foundation of the brand. You know a brand
It is, however, essential to note that brand has a mission and vision, it is on their website,
identity is more than just a logo, though the somewhere around the “About us” page, but it
logo usually grabs the attention. This chapter is not readily available like their logo. The
presents a holistic insight into brand identity, foundation is the unseen, the inherent repre-
presenting it as elements that can be experi- sentation of the brand while the structure is
enced through five human senses. the seen, and the visible and physical repre-
sentation of the brand. The brand philosophy,
values and positioning can be considered
? Key Question
abstract, though very important. The brand
What are the physical elements that
identity is real, and it is an integral part of
distinguish a brand and make it highly

brand management.
recognisable?
n Learning Outcomes 5.2 What Is Brand Identity?

At the conclusion of this chapter, you will
be able to Barnett et al. (2006) describe brand identity as
55 describe the concept of brand identity; the core of the brand and what defines the
55 give examples of misconceptions about brand. Brand identity is the internal perspec-
brand identity; tive of the brand created by the brand man-
55 recognise the concept of brand name; agement team before presenting it to external
55 describe the constituents of brand iden- stakeholders (Balmer and Greyser, Corporate
tity; and marketing: Integrating corporate identity,
55 explain the key benefits of creating and corporate branding, corporate communica-
having a strong brand identity. tions, corporate image and corporate reputa-
tion 2006). Black & Veloutsou (2017) consider
brand identity as the set of unique brand
5.1 Introduction associations that producers aspire to create or
maintain and the symbols, they use to identify
We are surrounded by brands. We recognise the brand to people. I define brand identity as
these brands based on their identity. As previ- any form of physical element that can be used
ously suggested, anything can be considered a to recognise a brand.
5.3 · Misconceptions About Brand Identity
89 5
The Structure -The SEEN

The visible and physical
representation of the brand.
Brand
Identity
Vision Mission
The Foundation -The UNSEEN
Values Heritage Origin The inherent abstract
representation of the brand
Ethics
. Fig. 5.1 Conceptualising the building structure of a brand. (Source: Author)
Brand identity is about giving specific and identity. Corporate identity is a broad term
customised physical elements to the brand, referring to “the set of meanings by which an
which sets it apart from others. Brand identity object allows itself to be known and through
supports, expresses, communicates, synthesises which it allows people to describe, remember
and visualises the brand. Consumers can and relate to it” (Rekom 1997). While most
engage with brand identity by touching it, attention on branding has focused on big cor-
holding it, hearing and watching it move. porations, the idea of corporate identity has
Brand identity helps customers cut through the often been well accepted. Corporate identity
proliferation of choices. The brand personality, refers to how a corporate organisation can be
through its philosophy, core values and posi- identified. However, it is essential to remem-
tioning are expressed through brand identity. ber that brand is more than just a corporate
organisation. Branding is not limited to
Google, Apple or Coca-Cola. Humans are
5.3 isconceptions About Brand
M brands with their identities (Mogaji et al.
Identity 2020). Events like the Olympics and FIFA
World Cup are brands with identities (Rutter
Before proceeding with a detailed exploration et al. 2019). Charity organisations are brands
of brand identity, it is essential to highlight with identities (da Silva et al. 2020). Therefore,
and discuss some common misconceptions brand identity is the umbrella term instead of
about brand identity. Discussing these mis- limiting knowledge to corporate brands alone.
conceptions will ensure that we are engaging This concept does not suggest that corporate
with this topic with a mind open to creativity brands are not essential, but all sectors have
and possibilities. brand identities as well. In advanced brand
management studies, there may be a specific
focus on corporate branding and identity.
5.3.1 rand Identity and Corporate
B
Identity
5.3.2 Brand Identity and Logo
These terms can often be confused, as they
may seem like the same thing, but they are dif- While the logo is an integral part of brand
ferent. Corporate identity is a subset of brand identity (Walsh et al. How to successfully
introduce logo redesigns 2019), it should be temporary and current, honouring the “heri-
noted that there is more to brand identity tage through the blue box while still taking it
than a just logo. The logo is one of the many forward.” However, just six days after putting
ways to recognise a brand. You can recognise their new logo out into the public, Gap per-
brands by their colours, staff uniform or the formed possibly one of the fastest branding
design of their advertisements. These are all turnarounds of all time when they reverted to
creative output that present a form of identity their original design because it was not well
for a brand. The product design and the lay- accepted by the customers (Hardy 2020).
out of the store are also a form of identity. In The London 2012 logo caused a storm at
general, brand identity should be considered its launch in 2007. Designed by International
5 from a sensory point of view. Consumers
engage with brands using all human senses.
branding consultancy Wolff Olins, it was crit-
icised for its garish colours, aggressive shapes
This concept of sensory branding will be dis- and dodgy typography. Some thought it
cussed in the subsequent section. Brand iden- looked like a swastika (Rawsthorn 2010). It,
tities should involve things that can be seen however, withstood those challenges. Though
(not limited to logos or graphical elements), it did not appeal to everyone, it was well inte-
heard (sound logo at the end of advertise- grated. Therefore, brand managers should be
ments) or touched (product shape and design), aware that their brand identities may not
tasted (unique taste of the burger) and per- appeal to the general audience. Nevertheless,
ceived (the fragrance in a shop). an effort should be made to effectively convey
the brand values through an identity that con-
sumers can relate to.
5.3.3 rand Identity and General
B
Acceptance
5.3.4 Brand Identity
There is the idea that brand identity should be and Rebranding
well received and generally accepted to make
it a strong identity. While this is essential, it Brands often change their identity in rebrand-
should be noted that it may not always be the ing exercises, but it is, however, essential to
case (Walsh et al. How to successfully intro- note that it is not just about changing the
duce logo redesigns 2019; Kelly 2017). While brand identity or changing the logo.
brands endeavour to carry out research and Companies can rebrand without changing
design an identity that will appeal to every- their brand identities. Though changing the
body, this may not be possible. Consumers are logo is the most glaring evidence of rebrand-
humans, and they can be subjective. We all ing (Wayne et al. 2020), there are possibilities
have our interests and can transfer these for a brand to reposition its values and phi-
desires into how we expect a brand identity to losophies in their rebranding exercise without
be. King’s College London wanted to remove changing their logo (Koch and Gyrd-Jones
“College” from their name and be known as 2019).
King’s London, but they had to drop the plan
following a backlash from students, staff and
alumni (Grove, 2015). Loughborough 5.4 Brand Identity Prism
University had to abandon their initial idea
for a simple logo comprised of the letters “L” It should be noted that the brand identity
and “U” in white on a pink octagon, which prism is different from brand image or logo.
was roundly rejected by students, graduates The brand identity prism is a concept by
and local people (Rush 2015). Kapferer (2015). According to him, any brand
GAP changed its logo in 2010. Unveiling can be identified by its characteristics. The
the new design, Marka Hansen, president of Brand Prism is represented by a hexagonal
Gap North America, said it was more con- prism which defines six characters of a brand.
5.5 · The Brand Name
91 5
The identity prism allows us to examine any 5.4.5 Culture
brand in detail to detect its strengths and
weaknesses. It will put each facet of the brand An internal facet. Each brand has a culture
under the microscope and come up with diag- from which all products within the brand
noses. Brand identity can be termed as those frame originate. Specific values and principles
items or characteristics that are quite visible will follow from the culture, and it is these val-
while thinking of a brand. These items or ues that will bind the customers (e.g. HSBC’s
characteristics such as logo, colour, design, “The World’s local bank”).
identify and distinguish a specific brand in the
consciousness of other brands and brand
users. The model is also useful for analysing 5.4.6 Self-Image
competitors.
An internal facet. This reflects the customer’s
attitude towards the brand. Consumers create
5.4.1 Physique a picture of themselves through their attitudes
to the brands they use. They get attracted to
An exterior tangible facet is communicating those brands in which they see their traits, for
physical specificities, colour, form and brand example, a dynamic young man may prefer
qualities. The physique is the starting point of BMW to Volvo. This goes hand in hand with
branding, and therefore it forms the brand’s brand personality (. Fig. 5.2).
backbone. The sum of a brand’s essential
characteristics constitutes its physique. What
is the product? What does it do? How does it 5.5 The Brand Name
add value to customers? How does it fill the
gap in the market? The brand name is the most significant form
of a brand identity. Simply by the name, the
brand can be recognised. Hence, the perfect
5.4.2 Relationship brand names do not have to describe anything
An exterior facet. A brand has relationships Picture of sender

with its customers and frequently offers pos-
sibilities for interpersonal exchanges.
5.4.3 Reflection Physique Personality
An external intangible part of the brand’s

Externalisation
Internalisation
identity that reflects what the customers wish

to be a result of using a brand. A brand Relationship Culture
reflects its customer’s image and becomes a
means of identification.
Reflection Self image

5.4.4 Personality
An internal facet. A brand has a personality,

and with time, it can develop character. An
Picture of recepient
easy way to bestow a personality on the
brand is to give it a spokesperson—human or .. Fig. 5.2 Brand identity prism. (Adapted from Kap-
animal. ferer (2015))
or the brand. The brand name should stand name with the country authorities, to file
for a concept, philosophy or the specific idea records and accounts and pay taxes.
that the brand represents. It should be noted
that the words used to create or represent the
brand name can give the brand an emotional 5.5.2 Deciding on the Name
appeal. The brand name is needed for a trans-
action, and it is used for advertisements and Depending on the brand you are working
social media. Getting the name right is essen- with, and your position within the organisa-
tial for effective brand integration and man- tion, your role in deciding and developing the
agement. The name can make a brand stand brand name as an identity, may be limited. If
5 out from competitors, and it can create a buzz
and sense of excitement about the company.
you are a brand owner, you may decide to
name the brand after yourself (Hewlett-
If you get it right, the brand becomes a house- Packard, Walt Disney), to describe what you
hold name (or even a verb) like Google, do (London North Eastern Railway is a
Hoover and Uber. British train operating company owned by the
Department for Transport) or an acronym
(The International Business Machines
5.5.1 Understanding the Structure Corporation (IBM), an American multina-
tional information technology company).
A business name may also mean a brand Lischer (2020) presents seven popular
name, but they can be different. For a small types of brand:
business, their business name may also be 1. Descriptive—E*Trade
used as a brand name, but for larger organisa- 2. Evocative—Nike
tions providing different services or with dif- 3. Invented—Xerox
ferent products, they may have a separate 4. Lexical—Krazy Glue
business name from a brand name. For exam- 5. Acronym—IBM
ple, Alphabet is the parent company of 6. Geographical—Arizona Tiles
Google, and you hardly see Alphabet as a 7. Founder—Boeing
brand that is integrated and communicated,
this is because it is a business name while This list is not a definite answer to the chal-
Google, Deepminds, YouTube and Waymo lenges of creating a brand name (Low and
are brands owned by Alphabet. Blois 2002), however, in deciding a brand
Likewise, Unilever is a business name name, it’s a good idea to consider it in align-
while Axe/Lynx, Knorr, Lipton and Magnum ment with three concepts.
are brands of Unilever. In some situations, the
full legal name of a business may not be often 5.5.2.1Aligning with Brand
used for brand integration. Instead, the organ- Philosophy
isation may decide to go for a shorter version. In deciding the name, it is essential to build on
The legal business name of Anglia Ruskin the brand core values and positioning that we
University, a public university in East Anglia, have previously covered. Those are the foun-
United Kingdom is Anglia Ruskin University dations of your brand, and therefore the
Higher Education Corporation. London brand name must align with those values. If
School of Economics and Political Science is your foundation had promised a three-
popularly known as LSE while Imperial bedroom bungalow, you might find it difficult
College of Science, Technology and Medicine building a four-bedroom bungalow. The foun-
is also known as Imperial College. Registering dation of the brand is essential, and the brand
a brand name as a trademark is not the same name must convey that. The brand personal-
as registering a company name as a business ity must be reflected in the brand name and
entity. The brand owner must formally regis- other forms of identity. The brand name
ter their business name as a legal business should be differentiated, distinctive and
5.5 · The Brand Name
93 5
unique. This means, as with everything else, meaningfulness of the brand name are
foundation is essential when trying to develop essential to the brand growth and general

a business or create a brand. The brand own- acceptance.
ers must ensure that the brand philosophy
totally captures what the brand is established
for and it must be positioned in such a way 5.5.3 Rebranding the Brand
that it aligns with whatever the brand intends
to do in the future. Arden & Newton is an The brand name decision may not be limited
Africa-focused, strategy-driven, branding to new brands or start-ups; more established
agency and marketing communications con- brands as well may also go through the pro-
sultancy. In selecting their brand name, they cess of selecting a new name to rebrand them-
claim to be ardent (Arden) believers in the selves. This could be through expansion
transformative power of ideas to move (mergers and acquisition) or a change in stra-
(Newton’s law) people, places and products tegic directions. Brands with an existing regis-
for good. This crafted name became their cor- tered and well-known name, may decide to
porate purpose and philosophy. change their name. Plymouth University in
the United Kingdom rebranded to the
5.5.2.2Aligning with Brand Products University of Plymouth. Michael Kors
This depends on the size of the brand and the Holdings Ltd changed its name to Capri
number of existing product brands that are Holdings Ltd, after its acquisition of Versace
available. The brand owner may have to decide and Jimmy Choo. London Midland Train ser-
how the brand name works with existing vices, which operates in and around
product or service names. For example, in Birmingham in the United Kingdom was
August 2015, Google renamed itself rebranded as West Midlands Railway when its
“Alphabet” and became a subsidiary. Larry incumbent franchise contract ended.
Page and Sergey Brin, co-founders, said they
liked the name Alphabet because “it means a
collection of letters that represent language, 5.5.4 Available Names
one of humanity’s most important innova-
tions” (Page 2015). They were able to incorpo- Having a website for the brand is essential to
rate their existing products into the new brand communicate with stakeholders. Ensuring
name as it encompasses everything from A to that a brand has the right domain name is,
Z; A is for Android, B is for Bloggers, C for therefore, imperative. If this is not possible,
Calico, G is for Google and Y is for YouTube. different derivatives or top-level domain
(TLD) names may be considered. Google
5.5.2.3Align with Public Expectations could not use Alphabet.com when it was
In selecting your brand name, you want to rebranded to Alphabet Inc. as BMW owns
check how it aligns with public expectations. Alphabet.com, a leading global provider of
This stage involves testing through surveys or Business Mobility solutions, and they were
interviews with friends, partners and key not willing to sell it to Google. So Google
stakeholders, to understand their feelings and went for abc.xyz with the. xyz TLD. Some
perceptions. To understand if they can sense taunted Google that they had googled their
congruence between your brand values and new name before deciding to restructure the
the brand name. You may want to evaluate whole company.
how they will pronounce it, in the case where The availability of the brand name on a
you are using a lexical or invented name and social media profile is also essential in this dig-
you can make changes as deemed necessary. ital age. Brands must ensure that they can
Even though everyone’s opinion may not be secure their username on different social
used in the final decision, it is relevant to test media. With Alphabet, Google could not use
and evaluate the name. The familiarity and the @alphabet handle because someone has
been using it since 2007. John Lewis & Partners, they may have limited creative solutions with
a brand of high-end department stores operat- regards to brand identity. For a more creative
ing throughout Great Britain, was not able to and flexible approach, Squadhelp offers the
secure the @johnlewis handle on Twitter. world’s largest platform for company naming
and branding, allowing brand owners to start
contests to engage hundreds of naming experts
5.5.5 Online Brand Name in their naming process.
Generator
It is possible to use online tools to generate a 5.5.6 Brand Consultants
5 brand name. Such systems allow brand owners
Bigger and more established brands may not
to enter a single keyword that best describes
their business, to indicate the sector and to go through the route of brand name genera-
select the style of name they are looking for. tors, which are often more suitable for start-
Novanym claims they generate names that are ups. Instead, they will work with brand
unique, evocative and memorable. The com- consulting agencies to develop and conceptu-
pany also claims that all their logos are alise their brand identities. These brand con-
designed in-house, and they own the copyright sultants can engage with the stakeholders to
of every logo design. Namelix is another online understand the history and values behind the
brand name generator that uses an algorithm brands and transfer that into the new brand
to generate short yet catchy names. While these identity. These consultants have worked on
sites may provide ready-made business brand many brands, and they have the experience
names, it is essential to note that they do not and technical capabilities; however, their ser-
necessarily understand the values and philoso- vices may be expensive, a small brand or char-
phy behind a brand, they do not know the ity organisation may not be able to afford it.
story that motivated the brand, and likewise,
C
ase Study 5.1: Illimity
Corrado Passera—former minister of eco- ative idea with an iterative journey approach,
nomic development of the Italian government, expressing the values of the new banking par-
former managing director and CEO of Intesa adigm.
Sanpaolo Bank and former managing director According to Landor (2020), the logo, a
of Poste Italiane—created an independent tangible representation of the start-up, is illus-
bank designed to accommodate the unmet trated in an iteration of the infinity symbol—
banking needs of the traditional system. The dynamic and flexible with a bright colour
“new paradigm bank” for companies and fami- palette, it encompasses a humanistic font and
lies would incorporate the best AI technologies, inclusive photographic style. The logo can
machine learning and highly specialised human transform into other shapes and figures, mak-
skills to guarantee new levels of quality, service ing the whole look and feel of technology easy
and efficiency—all without ever losing the to understand. Leveraging the infinite possibili-
human connection. ties, they extended the identity to a series of
Landor, a global leader in brand consult- motion design elements to create a unique and
ing and design, created the company’s name consistent visual experience.
and strategic platform. The consulting agency
designed an innovative corporate identity that Reflective Question
would adequately convey the bank’s disrup- 5 Why was it important to hire Landor, a
tive model and value. They started from a global leader in brand consulting and
strategic platform, using a prototypical pro- design, to create the company’s name and
cess involving the client in building the cre- strategic platform?
5.6 · The Constituents of Brand Identity
95 5
5.5.7 Protecting the Name uniform and communications material to
reinforce their identity. Therefore, brand iden-
It is essential to be aware of other competing tity is more than just a logo, and it is much
interests in the brand name (Thomas and bigger than that. Emotional connections are
Saenger 2017). When a final name has been expertly made with a synergy of all five senses,
chosen, the Brand owner must ensure that the and as such those brands that are communi-
brand name is protected. This could be regis- cating from a multi‐sensory brand platform
tering the brand name as a trademark. This have the highest likelihood of forming emo-
can be done by the owners of existing busi- tional connections between consumers and
nesses, in specific countries or regions and in their product. Branding is all about building
relation to specific goods or services. emotional ties between consumer and product
Trademarking may be an expensive and time- (Lindstrom 2005). As illustrated in . Fig. 5.3,
consuming luxury, but it is worth it, especially brand identity can be conceptualised from a
for established brands. The United Kingdom’s sensory perspective. Every one of our five
Prince Harry and Meghan Markle trade- senses impacts our decision-making.
marked their Sussex Royal brand which allows
them to use it on different merchandise rang-
ing from hoodies to socks. The Royal couple 5.6.1 Visuals
also created a website called Sussexroyal.com.
They have taken this initiative to protect their The visual identity of a brand is strategically
brand name. essential in differentiating companies (Hynes
2009). It “plays a significant role in the way an
organisation presents itself to both internal
5.6 he Constituents of Brand
T and external stakeholders” (Van den Bosch
Identity et al. 2006, p. 871). This aspect deals with how
the brand user sees a brand.
Logos are often considered the essential form
of brand identity; some even consider them 5.6.1.1Logo
synonymous with brand identity. This is, how- The corporate logo is at the root of corporate
ever, not always the case. Though the logo is identity as well as the main element of corpo-
one of the critical components of brand iden- rate visual identity (Balmer 2001; Hynes
tity, it is essential to have a holistic view of 2009). It is a significant tangible asset of the
brand identity and its constituents. It is not organisation (Foroudi et al. 2017). It enhances
surprising that significant attention is given to visibility as well as recognisability of the
the logo. Research conducted by the global brand (Balmer and Gray, Corporate identity
market research agency, Millward Brown, and corporate communications: creating a
with a team of 60 researchers across 13 coun- competitive advantage 2000). These are the
tries over 18 months found that 99 per cent of physical elements that we can see, which rep-
all brand communication currently focuses on resent a brand. Melewar & Jenkins (2002) in
only two of the senses—sight and sound their corporate identity model identified logo
(Lindstrom 2005). Brands still focusing solely as corporate visual identity. According to
on visual attributes and giving little thought Melewar & Saunders (1998, p. 291) “corpo-
to other sensory effects should be holistically rate visual identity consists of the corporate
thinking about design and identity, using the name, logotype and symbol, typography and
senses to help create and intensify brand per- colour.” However, I argue that the brand
sonalities that consumers will cherish and name is not part of the visual identity. The
remember (Watch 2015). brand name is an identity on its own, and the
Brands use different physical elements visual identity is used to buttress the primary
such as retail store layout, architecture, staff identity. A brand can exist without visual
Brand identity
Brand philosophy
Brand name
5
Visual Auditory Tactile Olfactory Gustatory

what we see what we hear what we touch what we smell what we taste
Logo
Shape
Colour
Font
. Fig. 5.3 Conceptualising sensory brand identity. (Source: Author)
identity, but a brand cannot exist without a Logo as a visual identity is also made up
name, which is the primary form of identity. of three components which are shape, colour
The notion of a corporate logo is grounded and font. The design of a logo involves the
in various subject domains such as marketing creative decision of choosing the shape (e.g.
and design. The design literature refers to the the overlapping circles of MasterCard), the
corporate logo as a set of creative elements colours (overlapping red and yellow circles)
that gives prominence to a company’s prod- and the typeface (FF-Mark typeface in all
ucts and services (Mollerup 1999). Marketers lowercase) to make the logo. As illustrated in
often consider a logo as a visual cue that helps . Fig. 5.4, the logo of BT can be changed to
brands communicate their unique identities reflect the three components of a logo.
and capture consumers’ attention (Kim and . Figure 5.5 shows the logo of Powerite
Lim 2019). Logos are also referred to as aes- Incorporated with the shape (Power Button
thetic designations which are seen by the pub- and sunlight), colour (shades of green and
lic and from which they form an opinion blue) and font (Gotham).
(Pratt and Rafaeli 1997). Marsden (2019) also The logo might not necessarily have the
refers to the logo as the corporate brand mark, three components. Apple for example only
which is a combined unit of a brand name has the shape with no colour (often treated as
and its visual representation (i.e. logotype and a silhouette) while Samsung has a shape
symbol). (oval), colour (blue) and a font (Linotype
97 5
. Fig. 5.4 Conceptualising visual brand identity across shape, colour and font. (Source: Author)
typeface and colour, and the brand logo can

be made with either or all the above-men-
tioned properties.
5.6.1.2Shape
The shape serves as the container for the other
creative elements that form the logo. This can
. Fig. 5.5 Powerite Incorporated logo with the differ-
ent components. (Source: Ifeoluwa Sopeju)
be in the form of a circle, a square or an oval.
Jiang et al. (2015) suggested that circular shapes
are associated with a perception of “being
soft,” whereas angular shapes with a perception
of “being hard.” Also, Lieven et al. (2015)
. Fig. 5.6 The Samsung font—Linotype Univers 820 found that a heavier and more angular shaped
Condensed logo increased brand masculinity, whereas a
slender and more rounded shaped logo
Univers 820 Condensed, all uppercase in increased brand femininity. Round logos are
white) (. Fig. 5.6). also viewed as being harmonious and natural,
The logo, a form of brand identity, has and as a logo element which is an emergent
several components, amongst which are trend that is likely to endure (Walsh et al., How
typeface, shape and colour (Kim and Lim re-designing angular logos to be rounded
2019). Another study has considered brand shapes brand attitude: Consumer brand com-
name and design as logo elements (Foroudi mitment and self-construal 2011). While
and Nguyen 2019; Foroudi et al. 2017). I, Luffarelli et al. (2019) found that asymmetrical
however, argue that design is not an element logos are likely to be more arousing than sym-
nor is design a component of a logo (like metrical logos, and in turn, have a positive
colour and typeface), but it is the overarch- effect on consumers’ evaluations. With regards
ing process of the brand identity develop- to characters, logos depicting characters, places,
ment. Likewise, a brand name is not a logo animals, fruits or any other item are considered
element because the brand name existed more recognisable (Henderson and Cote 1998).
before the logo. The logo as a corporate A typology of logo arrangement is pre-
identity can be expressed through shape, sented in the table below, and it highlights the
Type Description Examples
Logo
Icon baside Text Logotype
Mark Microsoft, AT&T, Verizon
Logo
Mark
Toyota, Louis Vuitton, Cisco,
Icon above Text Mercedes-Benz
Logotype
5 Icon with Text

Logo
Mark
Logotype Amazon
Logo
Text in Icon Mark Logotype
Samsung, Intel, GE
Text Only Logotype

Google, Coca-Cola, Disney, Oracle, IBM
Logo
Icon Only Mark Apple, McDonald’s, Facebook, Nike
. Fig. 5.7 Typology of logo arrangement
relationship between the logotypes and the logo external and internal stakeholders (Foroudi
marks (icons). This typology is based on the and Nguyen 2019). Typeface plays a crucial
Top 20 of the World’s Most Valuable Brands, role in distinguishing an organisation’s visual
according to Forbes (2019) (. Fig. 5.7). identity and can become characteristic
enough that it can appear on its own without
5.6.1.3Typeface a symbol, for example, the typeface of Coca-
A typeface is the design of lettering that most Cola. The typeface is a vital component to
of the time has some variations, such as extra convey communication goals. A conscious,
bold, bold, regular, light, italic, condensed, creative decision is required in selecting the
extended and so on. The typeface is another right typeface as a visual identity for a brand.
element of a logo. It is the art of mechani- The choice of a typeface can manipulate the
cally producing letters, numbers, symbols meaning of the word it is applied to (Childers
and shapes through an understanding of the and Jass 2002). University of Greenwich
essential elements, principles and attributes (UK) uses Antonio, a commercial font, which
of design (Solomon 1986). It is considered they consider to be a robust and punchy type-
“the art or skill of designing communication face used to add visual impact.
utilising the printed word” (Childers and Jass
2002, p. 2), and highlights a significant design 5.6.1.4Typology of the Font
decision which plays an essential role in the Mogaji (2018) identified a typology of font as
way an organisation presents itself to both part of brand identity.
99 5
5.6.1.9Letter Cases
. Table 5.1 Examples of commercial fonts
being used for brand identity
Letter case is the written distinction between let-
ters in upper and lower case (Xu et al. 2017).
Brand Font The letter case of the typefaces used in the logo
gives an insight into the brand visual identity.
Proxima Nova Font Though consumers have been found to feel
Optima Roman
closer to lower case wordmarks, which increase
perceptions of brand friendliness, compared
Gill Sans Regular with the upper case wordmarks (Xu et al. 2017),
Myriad Bold some brands still adopt all upper case word-
Futura Bold Oblique
marks in their logo. In August 2020, Pentagram
redesigned Rolls-Royce’s visual identity and one
of the main differences is that the new identity
has Rolls-Royce all in upper case instead of the
previous lower case. This seems to be a con-
5.6.1.5Bespoke Fonts scious decision to showcase a more “confident
These fonts are customised, designed specifi- but quiet” identity; with the use of capital letters.
cally for the brand. They provide a distinctive Fonts in brand identity can also be distin-
look and feel. Examples include the Neuzeit guished in the form of their design and
Plymouth used by Plymouth University (UK), arrangement. As illustrated in . Fig. 5.8, the
Waltograph used by Walt Disney Company Neo Sans TR (a San Serif font type) was high-
and the 2012 Olympic typeface. lighted as ap’s main font and it was specifically
indicated that it should be used in lower case
5.6.1.6Commercial Fonts (. Table 5.2).
These are fonts that have been acquired by the
brand, though they may have been designed 5.6.1.10Colour
and made available commercially, once Colour is an integral element of corporate
acquired, the brand now has permission to visual brand identity and marketing commu-
use them. An example is Palatino, designed by nications (Marsden 2019). It induces emo-
Hermann Zapf and used by Keele University. tions and moods and influences an individual’s
The university acknowledged that it is “prob- perception of a brand (Foroudi and Nguyen
ably the most universally admired and used of 2019). Brands can also use colours to position
his type designs.” Greenwich, meanwhile, uses and differentiate themselves in a competitive
Antonio, which they consider to be a robust market. Like typeface, colour can also remind
and punchy typeface that adds visual impact. consumers of certain brands (Jin et al. 2019).
. Table 5.1 presents other examples of com- For example, red and yellow for McDonald’s,
mercial fonts being used for brand identity. red for KFC and green for Starbucks. It is
therefore not surprising to see some brands
5.6.1.7System Font trademark the primary colour which they use
These fonts are available on most, if not all, on their marketing communication, sports
word processing software and are free to use team and souvenirs. The trademark allows
because they do not require a font licence. these brands to use a combination and shade
These fonts include Arial and Calibri, which of colour in their sector. The University of
might be used when bespoke and commercial Texas at Austin has the Pantone Colour #159
fonts are not available. which they called Burnt Orange, Queens
University (Belfast, Northern Ireland) has
5.6.1.8Serifs and Sans Serif Pantone 185c called Queen’s Red, and
Serif typeface contains a little decorative University of Greenwich (London, England)
stroke at the end of the characters, while sans has the Greenwich Navy Blue colour (Mogaji
serif does not contain such decorative strokes. 2018). Tiffany & Co uses Tiffany Blue,
. Fig. 5.8 ardova logo indicating the serif font (Neo Sans TR) and the letter case (lower case). (Source: Arden &
Newton)
5.6.1.11Staff Uniform
. Table 5.2 Typology of letter case in brand
identity
The visual identity is not just limited to the
logo. This also includes staff uniforms (res-
Letter case Examples taurants, banks and airlines). Imagine meet-
ing a flight attendant on the train. You can
All Uppercase identify their brand by their uniform. These
service providers put effort into designing
their uniforms as a visual identity. Following
Combined the redesign of McDonald’s uniform in 2012,
Hemingway Design led by Wayne Hemingway
All Lowercase
MBE and Gerardine Hemingway designed a
new uniform for Transport for London in
2015 to help customers recognise London
Pantone 1837—which bears the same number Underground (LU), London Overground and
as the year the company was founded. It is Transport for London (TfL) rail staff more
protected as a colour trademark by Tiffany & efficiently. It was the first time in ten years the
Co., and therefore not publicly available. UPS uniform had been updated and included
colours are brown (Pantone: MS 476 C) and pieces tailored for female staff. Oman Air
gold (Pantone: PMS 7548 C). T-Mobile owns launched its brand new cabin crew uniforms
the trademark on a specific shade of magenta in 2019. Created by Oman Air’s in-house
known as “RAL 4010” with Pantone Code: product development and brand team, they
#159. These colours play a significant role in took inspiration from “Sultanate of Oman’s
establishing the brand’s identity. Figure . 5.9 rich colours, culture, history and heritage”
illustrates the different colour shades of and retained the recognisable turquoise hues,
ardova plc. These colours have been specifi- inspired by the Sea of Oman. Savile Row tai-
cally identified for their brand identity and loring expert, Ozwald Boateng OBE is in the
they expect all stakeholders to recognise and process of developing a new uniform for
use them accordingly. British Airways.
101 5
MAIN BRAND COLOURS COMPLEMENTARY COLOURS
PANTONE PANTONE PANTONE PANTONE PANTONE PANTONE

7739 C 376 C 7732 C 368 C 583 C 555 C
PANTONE PANTONE PANTONE PANTONE

627 C 7722 C 7716 C 7724 C
PANTONE PANTONE
382 C 115 C
For use throughout all collateral, prints,

communication platforms, brand merchandise,
headlines, flat background areas, image gradient
maps and as main colours in graphics and
illustrations
PANTONE PANTONE PANTONE
1215 C 451 C 5747 C
All copy on both digital and print applications, document headings and body texts, graphic
elements, as a background in digital and print applications, for buttons and key calls to action,
for separation lines and other subtle elements of design.
. Fig. 5.9 Different colour shades (with Pantone Codes) for ardova plc. (Source: Arden & Newton)
Recently, Sainsbury’s had a dig at Beyoncé

when people noticed that the colour scheme of
Beyoncé’s Ivy Park collection is very similar to
the supermarket giant’s uniforms. People rec-
ognised that the colour of the uniform (and
not even the logo) is an identity of Sainsbury’s.
As part of the proposed rebranding for
First Marina Trust Ltd, Olalekan Akinyele
designed a uniform, as illustrated in
. Fig. 5.10, which incorporates the green
colour of the brand, the logo on the chest and
a shade of yellow across the shirt. This is a
conscious effort to align and further present
an identity for the brand.
5.6.1.12Architecture
Architecture and location are visual brand
identities (Melewar and Jenkins 2002).
Architectural designs can shape brands, mak-
ing them more noticeable and appreciated as a
. Fig. 5.10 Proposed uniform for First Marina Trust
significant element of city attractiveness Ltd. (Source: Olalekan Akinyele)
(Bonenberg 2014). In retail, the increasing com-
petition has led to an increase in investment in
designing more luxurious environments, rience which offers a unique shopping experi-
enhancing customer experiences. Retails stores ence by removing the barriers between the
are designed to communicate corporate and customer and the Nespresso Coffee Specialists.
brand values to customers and employees, com- In addition, look at the design of Wembley
petitors and communities (Kirby and Kent Stadium in London and its brand identity. The
2010). Examples include Nespresso store expe- arch in the stadium has also been transferred
to the logo. This further illustrates how archi- there, people will be able to recognise the bank
tecture is an integral part of a brand identity. just by looking at its architectural design.
Anywhere in the world, such an arch can
remind you of Wembley. Likewise, the Eiffel 5.6.1.13Corporate Communications
Tower which is synonymous with France, and The design of corporate communications can
the Golden Gate Bridge in San Francisco, also provide a form of identity for a brand.
which was adopted for the logo of Cisco, the This identity includes the creative design of
American network equipment c ompany. the website, mobile app, advertisement and
Also, look at the brand identity of the press release. There is a conscious creative
Shard Building in London (remember any- decision with regards to the layout in the
5 thing can be a brand, though the brand build-
ing process can differ. So yes, the Shard is a
Cazoo advertisement in . Fig. 5.12. The
copy has been deliberately tilted at a degree.
brand). This is because, as I mentioned in pre- This became an identity for their brand and it
vious chapters, a brand is a name, term, has been used in their subsequent communi-
design, symbol or any other feature that iden- cation campaign.
tifies one seller’s goods or services as distinct The AXA advert has a bold red slash
from those of other sellers. The Shard domi- through the middle. This red slash is part of
nates the skyline of London, the tallest build- the logo, and it has become a part of the cor-
ing in the United Kingdom, at 306 metres. porate communication, which serves as a
Designed by Architect Renzo Piano, its visual identity for the brand. When you see
imposing structure cannot be missed. It is that red slash next time, you will think of
interesting to see how the Shard’s glass design AXA. This is what corporate communication
has been used. The architect’s design has been does. It helps an organisation pass a message
reflected on everything from the building logo to the brand users and others, gently register-
to Christmas wrapping paper. ing the brand in people’s minds.
In addition, the façade of a building can
serve as a brand identity. Bajepade et al. 5.6.1.14Packaging
(2020) explores how Nigerian banks are using From the perspective of both the firm and con-
building designs to integrate their brand and sumers, the packaging is an essential visual
present an identity. These banks have also identity for brands. Packaging can be para-
used similar designs for their branches. As mount in a brand experience. The creative
illustrated in . Fig. 5.11, First Bank, First design of a brand’s package ensures it conveys
City Monument Bank (FCMB) and Zenith descriptive and persuasive information, and
Bank have unique designs. FCMB bank facilitates product transportation and protec-
branches are designed with Greek columns tion. Importantly as well, it can distinguish a
and are painted white, while Zenith Bank has brand from many others, especially on the
a glass façade with a signage box on the roof. shelves of retail outlets. Packaging also cuts
These banks have been consistent with their across the tactile brand identity; the shapes are
design, and it has become a recognisable part different, likewise the finishing, this allows con-
of their identity. Even if their signage is not sumers to engage with the product p hysically.
.. Fig. 5.11 Graphical illustration of bank building designs in Nigeria. (Adapted from Bajepade et al. (2020))
103 5
. Fig. 5.12 Advertisement from Cazoo. (Source: Cazoo. Used with permission from Cazoo)
5.6.2 Auditory With the significant increase in social media

and TV advertisements, there are possibilities
These are the sounds we hear that identify a for an acoustic version of a visual logo to be
brand. Auditory branding is the association considered a corporate identity (Wayne et al.
of a non-verbal, auditory identity with a 2020). Besides, the music played in the res-
brand (Krishnan et al. 2012). This auditory taurant or the retail store can also be a form
identity includes the scritch-scratch sound of of brand identity, likewise the on-hold music
a Sharpie pen, distinctive audio logos such as while making a telephone call to the com-
the Windows chimes or Nokia ring tones are pany offers another platform for brand inte-
well recognised around the world. Sonic logo gration and identification. This highlights
or “sogo” is the auditory analogue of a visual some practical implications for brands to
logo (Kim and Lim 2019): look beyond visual elements to communicate
55 Nokia—7 https://youtu.be/35kQnqcgqVw their brands.
55 Windows XP—7 https://youtu.be/7nQ2oi
VqKHw
Case Study 5.2: Netflix’s “ta-dum” Sound
Imagine your family member puts on the TV in Century searchlight drumrolls and trumpet
the next room and the next thing you hear is a and the MGM lion’s roar.
“ta-dum” sound. You are likely to think of In an interview with Dallas Taylor, the host
Netflix even though you are not in the room. and creator of Twenty Thousand Hertz, a pod-
The Ta-dum sound is a sonic logo for Netflix, cast revealing the stories behind the world’s
just like the red N that fades out into stripes of most recognisable and interesting sounds, Todd
many colours is a visual logo. This sonic idea Yellin, Vice President of Product at Netflix
for Netflix builds on the iconic twentieth revealed that they wanted a sonic logo that is
really short that plays along with the compa- for theatre production, so Netflix had to work
ny’s logo before their original series and films. with Hans Zimmer to extend it for theatres,
He further said. “In our age of click and play, making it feel better, more immersive — some-
you get to Netflix, you want to be able to click, thing that would interest viewers in a theatre.
and there’s no patience, you just want to get to Todd Yellin concluded with “now the logo is
what you’re watching.” immediately recognisable and everyone knows
A lot of effort was made to come up with that it means Netflix.”
this idea. They wanted something different
from the electronic sound in the Xbox or the
Mac start-up chime. There were some interest-
5 ing ideas like going with a goat bleating to look
55 Why do you think it was important for
Netflix to have a sonic logo?
like the MGM lion’s roar or the MTM Cat
55 Unlike designing a visual logo, what would
meowing. After many unsuccessful attempts,
you consider important for designing an
Oscar-winning sound editor Lon Bender was
audio logo?
commissioned for the sonic logo. Todd Yellin
55 How can Netflix further communicate their
revealed that the sonic logo was made of
sonic logo?
sounds from a wedding ring knocking on the
55 How inclusive (for less-abled viewers) would
side of a bedside cabinet and a deeper anvil
you consider the integration of a sonic logo
sound and some muted hits. The “ta-dum” is
(ta-dum) with a visual logo (red N)?
only three seconds long and was not suitable
5.6.3 Tactile cale remover and STABILO EASYoriginal

handwriting pen metallic give them a tactile
Touch is the first sense to develop in infants identity which makes them unique and differ-
and can convey meaning and content that ent from many other brands. The words
cannot easily be transmitted through more “strength,” “confidence” and “pride” engraved
formal language (Montague 1986). The tex- on the cover of the Jay Z Gold Pour Homme
ture of materials plays an important, if often eau de toilette spray must have been the result
under acknowledged, role in consumers’ eval- of a conscious creative effort to have such
uation/appreciation of many different prod- details when a plain cover could have been
ucts (Spence and Gallace 2011). The tactile used. These ergonomics stimulus properties
attributes of a product constitute an essential are important in terms of their potential influ-
part of its identity. With increasing techno- ence on a customer’s final (multisensory)
logical advances, there are opportunities for a product evaluation of the brand (Gallace and
brand to identify their products through their Spence 2009).
packaging designs, and to deliver more novel The downside of tactile branding, how-
product coatings than ever before. This ever, is the ageing population, and the growth
advancement which highlights the possibility of internet‐based shopping. People may not
of using touch more effectively with market- have the opportunity to feel the product and
ing purposes in mind has started to become perhaps identify its unique features before
ever more appealing (Spence and Gallace buying it. Haptic, the use of technology that
2011). This shows that a brand must appeal to stimulates the senses of touch and motion to
the tactile sense of brand users. This is enhance the experience of interacting with
because, even though it is informal, it is the onscreen interfaces, can offer another
easier way to reach the brand users as it is perspective to tactile branding. This technol-
subtle and for the brand user, subconscious. ogy allows consumers to reproduce in remote
The shapes of products such as the Dior operation or computer simulation the sensa-
J’adore eau de parfum spray, HARPIC limes- tions that would be felt by a user interacting
105 5
directly with physical objects. Adding haptics slightly musky, vanilla fragrance, with slight
through virtual touch would open new oppor- overtones of cherry, combined with the smell
tunities for brand design and identity creation. of a salted, wheat-based dough.” This makes
the PLAY-DOH brand one of the few active
and undoubtedly most famous scent trade-
5.6.4 Olfactory marks in the world.
Franco Galbo explores scent trademarks
Olfaction is the sense of smell. There are sig- and their complexities, highlighting the lack
nature aromas identified with brands. Entering of clear guidelines as to what kind of informa-
the LUSH Retail store, there is the associated tion should be provided to describe a scent or
aroma that comes from their handmade soap what kind of descriptive terminology will be
and bath bombs. Towards the end of 1990, accepted. The choice seems to be between
Singapore Airlines introduced Stefan submitting a chemical formula to describe the
Floridian Waters, which is their signature scent or using descriptive language to describe
aroma used in the flight attendants’ perfume, the aroma. Notwithstanding the legal com-
the aeroplane interiors, and blended into the plexities or inability to provide an accurate
hot towels given out on take-off. The aroma description of a scent, this is a brand identity
has since become a unique and very distinct strategy that brands may want to consider.
trademark of Singapore Airlines. These aro- An essential response expected of any
mas are identities that remind customers branding element is its easy and correct recog-
about the brand. So, in brand management, nition (Krishnan et al. 2012). Brands should
olfactory can be how a brand uses sense of stick with a scent, be consistent about it and
smell to create a presence in the minds of over time it will be well recognised and become
brand users. This means to maintain a posi- an integral part of the brand. Just like a brand
tive identity and be well-perceived by brand logo, the scent is an identity that can distin-
users, the brand can try to include a certain guish one store from another, distinguish one
odour or unique scent in their products. This product from another. Olfactory branding
is overtly good for brands that produce should, however, not be limited to retail or
deodorants, soaps, perfume, cologne, candy, hospitality (hotels, restaurants or airlines).
sweets and food. Brands need to recognise how they can use
While some brands may have these scents sensory branding to differentiate their brands
as their identity, few brands have gone all the and make them stand out.
way to trademark their scents. In 2014,
Verizon trademarked their “Flowery Musk
Scent" for their stores. Their application 5.6.5 Gustatory
argues that the smell would help distinguish
these locations from “other communications Gustatory can be really defined as sense of
and consumer electronics retailers in an taste. This, in brand management, partially
increasingly crowded field.” In 2015, Brazilian represents the perception of certain tastes or
footwear company Grendene successfully the unique feeling that a brand user has while
trademarked the bubble gum scent of their using a brand. McDonald’s, Burger King,
line of scented jelly sandals. Hasbro, a global Wimpy and Five Guys all sell hamburgers,
play and entertainment company, has pat- but they sure taste differently. Even if they do
ented the iconic PLAY-DOH scent, known not have any packaging, you can recognise the
and loved by fans around the world. It became difference in taste. This strategy is an attempt
one of few active scents officially recognised towards gustatory brand identity. The tastes
by the United States Patent and Trademark of products serve as an identity for the brand.
Office. It became a registered trademark of Brands try product-specific tastes to engage
the brand. The trademarked scent is formally with their customers and stand out from the
described in the Trademark Official Gazette competition. This taste, as a brand identity
(TM 7419, May 15, 2018) as a “scent of sweet, element, influences perception and transforms
the experience using products. Many studies perpetually. The first impression of a brand is
have compared the taste of Coca-Cola and essential, it is necessary to ensure that the
Pepsi as they have their unique tastes (Kühn brand appears professional, trustworthy and
and Gallinat 2013). The Kellogg’s crunch is dependable. Imagine you want to buy clothes
recognised as a tactile feel in the jaw and you log on to the website, but you are not
(Lindstrom 2005), making it more crunchy impressed by the design of the website. They
and unique. Vegemite, a thick, dark brown may have excellent products and good cus-
Australian food spread also has a unique tomer care but your first impression of the
taste; it has become part of its brand identity. poorly designed website shapes your percep-
People either love it or hate it. tion of the brand. Likewise, if a charity organ-
5 As brands need to keep exploring new
ways of transmitting a brand identity to the
isation is raising funds, and their identity does
not appear trustworthy, potential donors may
public, gustatory brandings offer another lose faith in that brand.
dimension. This gustatory branding may,
however, be limited to edible brands which
could include a signature dish on a flight or in 5.7.2 Distinguish
a hotel, customised drinks at the bar and fla-
voured biscuits in a bank’s reception. These This benefit builds on the idea of identity.
are all conscious, creative effort to be different While all brands may have an identity, a
from other brands. proper identity makes a brand more distinc-
tive. There may be different limescale remov-
ers, but the shape of Harpic makes it more
5.7 Benefits of Brand Identities distinctive. There may be many play doughs
on the market, but the distinctive scent of
There are many benefits of brand identities, Hasbro’s makes their play dough different.
but they can be summarised into five. It might These distinguishing factors help influence
be expensive to develop and integrate brand customers who are trying to decide between
identities across the five different senses, but it two brands. Besides, it gives credibility,
is an investment that will enhance value in the enhances loyalty and ensures repeat purchase,
long run as a strong brand identity can make leading to returning customers and referrals.
a brand stand out in a crowded marketplace.
Presenting a brand identity that a consumer
can recognise and trust will influence buying 5.7.3 Original
behaviour and ultimately, the final choice. As
such, brands need to take a keen interest in Brand identities ensure consumers choose the
developing and communicating their brand original products and not a counterfeit.
identities (Melewar et al. 2006). Brands integrate their identities so that when
consumers are faced with choices between the
original and a counterfeit, they will know the
5.7.1 Identity difference. Kellogg has developed a hi-tech
method to stamp out imitation cereals—by
Primarily, brand identity aims to identify a branding individual flakes with their famous
brand. It gives the brand a unique identity signature using lasers to protect against imita-
that makes it recognised within the market. tion products. With integration and commu-
Red is associated with Coke while Blue is nication, the brand becomes the preferred
associated with Pepsi. Even though Netflix choice for customers. Even though counterfeit
and Virgin are both associated with red, their products are available at lower prices, the
brand names distinguish them. Branding buyers tend to buy the products from their
helps you stand out in a saturated market and preferred brands. Besides, with the patented
keep the brand in the minds of the customers and trademarked identities, the brand is pro-
5.8 · Designing a Brand Identity
107 5
tected from competitors and counterfeits. 5.8 Designing a Brand Identity
Consumers feel that they can trust the brand
that is original and demonstrates its original- 5.8.1 The Brand Owners
ity through product design, identity and com-
munication. The role of the brand owners cannot be
ignored when designing a brand identity. The
brand identity cannot be disassociated from
5.7.4 Consistency the owner’s identity; the relationship between
the brand owner and the brand identity can
The brand identity allows for the possibility last far beyond the death of the brand owner.
of expanding into a different market and The brand owner’s name may have been inte-
keeping the same positioning. Brand identity grated into the brand identity, and that still
ensures that wherever the brand is seen or lasts till today (Kapferer 2015):
extended to, it remains consistent, highly rec- 55 Adidas—founded by Adolf “Adi” Dassler
ognisable and still trusted. This consistency 55 Bacardi—founded by Don Facundo
builds up loyal customer bases, making it eas- Bacardí Massó
ier to introduce new products or services. 55 Ben & Jerry’s—founded by Ben Cohen
Also, the continuity of the identity conveys and Jerry Greenfield
brand stability. 55 Macmillan Cancer Support—founded by
Douglas Macmillan
55 Anthony Nolan Charity—founded by
5.7.5 Value Anthony’s mother, Shirley Nolan
Brand identity enhances the value of a com-

pany, and it allows the brand to command a The founders and brand owners often have an
premium price. There are many mobile phones idea about their brands that should be effec-
out there, but the iPhone still commands a tively communicated. This consideration also
higher price. The creative design of direct mail depends on the people they work with, on the
requesting donations for a charity could size of the brand; the brand owner may decide
encourage the individual to donate more. The to work alone or with a freelancer. Likewise,
brand identity presents the brand as a valued for a more prominent company, the manage-
organisation, which can be trusted to deliver ment team might decide the need for a new
on their promises. Besides, brand identity logo and select the team, either internally or
becomes an intangible asset of the company, externally to work on it. This is crucial and
patented and protected. Such functional iden- important for brand growth. Likewise, having
tities (including names and logo) add to the the input from other stakeholders is very
value, worth and equity of the organisation. important. Also, it is not enough to have the
A summary of the benefits of brand iden- input of other stakeholders but also to con-
tities is graphically illustrated below. The sider the relevance of this input for the growth
identity makes the brand stand out among of the brand. This must be in line with the
other brands in the market. The distinguish- philosophy of the brand.
ing features makes the brand susceptible to
counterfeiting, but again, the identity makes it
unique, its distinct features cannot be copied 5.8.2 Whose Responsibility Is It?
as they are protected under law. The brand
remains consistent, able to extend into other This depends on the size of the brand. For
product lines and categories; it gets more small- and medium-scale enterprises, the
credibility and reputation, thereby increasing brand identity could be developed by the
in value and equity (. Fig. 5.13). founder, coming up with a brand name, choice
.. Fig. 5.13 Graphical Identity

illustration of benefits of You are Red
brand identity. (Source:
Scarlet lbis*
Author)
Distinguish
Among all
Scarlet lbis Red
You are longer.
5
Original
Among all Reds,
You are Scarlet lbis Red.
You are longer.
You have sharp edges.
Consistent
Among all Reds,
You are longer.
You have sharp edges.
You shap is always in ratio 1:2
Valued
Among all Reds,
You are extend your brand
You are valued
*Scarlet lbis-PANTONE 17-1361TCX, RGB: 244 85 32, HEX/HTML: F45520
of colour, elements of the logo and other rel- the Nike Swoosh, one of the most recognisa-
evant identities. It is also possible that the ble logos in the world at the cost of $35. The
brand owner may have a name and not have swoosh has, however, evolved over the years.
other documented forms of identity. A more More established brands may have to work in-
established brand may have to use a freelancer house to develop identities or work with a
or family and friends to come up with a logo. branding agency. In 2012 Microsoft changed
This can, however, be changed as the brand its logo for the first time in 25 years; the logo
becomes more prominent and feels there is a was developed mainly by Microsoft employ-
need to rebrand. ees. In 2000, Landor, replaced BP’s logo with
Artist Simon Oxley designed the now- a new design, the “Helios” —costing over
famous Twitter bird logo, which Twitter $200 million. In 2008, Arnell group rede-
bought on iStock photo for $15. Back then, signed the Pepsi logo costing one million dol-
Twitter was an upcoming start-up company, lars. The London 2012 Olympics logo was
but the bird has been redesigned now. In 1971, designed by Wolff Olins, a London-based
Carolyn Davidson, a graphic designer and brand consultancy firm, at the cost of
student at Portland State University, designed $625,000.
5.9 · Brand Guidelines
109 5
5.8.3 Designing tures. This consistency also applies to other
people working with the brand. You would
Once responsibility has been assigned, then not want people to misspell your name, and
comes the designing phase. Often this will likewise, if you have a brand identity, you
involve a great deal of research to understand want to make sure people recognise it and use
what the brand stands for and how it can be it consistently in the right manner.
communicated through the identity design. For the 2020 Reading and Leeds Festival
Research should also uncover consumers’ where Stormzy and Rage against the Machine
expectations and how to meet their needs. were headlining, it is interesting to note that
Importantly as well, the research should poster designers had to use Stormzy’ s brand
uncover different touchpoints that will require identity—bold font, all upper case and like-
a brand identity and how they can be coordi- wise for Rage Against the Machine, as
nated into the overall design. The design pro- opposed to the font that was used for All time
cess can take months and even years to low, Mabel and As it is. Perhaps those artists
complete as it will involve ongoing changes, do not have a brand identity to be integrated
decision-making and exchanges between the into the poster or they don’t have the clout or
design agencies/designers and the brand own- influence of the headline acts.
ers. The process will involve sharing ideas,
testing various designs and getting feedback.
5.9 Brand Guidelines
5.8.4 Consistency Brand guidelines are essential to ensure con-

sistency. Brand guidelines are documented,
Brands strive to be consistent. To continually detailed information about brand identities.
deliver messages and present ideas that are in They highlight the brand values and identi-
consonance with the values and identity of a ties, sets out detailed information such as the
brand. Furthermore, it also entails a branding rules about composition, design and general
consciously exposing its target customers to use of the brand identity and present exam-
the same core messages repeatedly and force- ples and templates of marketing collaterals
fully. This is to maintain an influence on the (Mogaji, Brand Guideline 2019). The brand
target brand users. Upon the delivery of guidelines are also called the brand book,
brand identities, consistent integration is brand bible or style guide. Andrys (2019)
essential. This is to ensure that every stake- describes this guide as the owner’s manual on
holder is aware, and that they are using brand how to “use” their brands. It explains how
identities as required. In the case of a new organisations want their stakeholders to see
brand, the website, stationeries, signages and their brands. This guide influences both inter-
social media profiles must reflect the brand nal and external communications, marketing
identity, and the logo must be used in the right and advertising. It is an attempt to accurately
proportion and right manner. For brands that document information about the brand and
are rebranding and changing their logo, it is make it available for different stakeholders
essential to ensure that the changes are who might need it.
reflected as soon as possible. For sustainabil-
ity reasons, brands may have to finish printed
stationeries and other materials that have the 5.9.1 Who Develops
old logo, but the online presence needs to the Guidelines?
reflect the change. The brand manager should
keep an eye on how the new brand is being The Brand guidelines should be prepared by
used, to ensure consistency and to make sure whoever developed the brand identity.
people are still not using the old logo in their Depending on the size of the organisation,
PowerPoint presentations or on email signa- often brand agencies are responsible for devel-
oping the different elements of a brand, espe- core elements of the brand, assisting them in
cially after rebranding and they are responsible designing and producing compelling commu-
for developing the guidelines for the organisa- nications which align with the brand’s i dentity.
tion that employed them. Landor, which
developed the BP brand and Wolff Olins, who
developed the London 2012 Olympics logo, 5.9.3 What Is the Content?
would be responsible for the brand guidelines.
It should be part of the project’s deliverables. Brand Guidelines can run to hundreds of
If the business owner or the company has pages depending on the design and amount
developed the brand identity in-house (like of content made available. Each element of
5 the case of Microsoft), it is essential to docu-
ment the creative decisions they have made.
the brand must be well defined to keep the
brand consistent. The length can vary, but it
They must prepare their identity guidelines as is good to keep them concise enough for users
they expect various stakeholders around the to understand and follow the guidelines.
world to know about the new brand and how These guidelines are also made available
it should and should not be used. online on the companies’ websites. Irrespective
of the size or where it is being deposited,
three essential features are expected in brand
5.9.2 Who Uses the Guidelines? guidelines.
This document is prepared for those working 5.9.3.1Brand Information

with the brands. It serves as a reference for The document should give an overview of
everyone who engages with the brand, telling your brand. If it was prepared after a rebrand-
them exactly how to communicate about the ing exercise, the brand guidelines should con-
brand. The users can be categorised into two tain background into the need for the
groups. rebranding as well. The guidelines provide
further insight into why they have decided to
5.9.2.1Internal Users rebrand and come up with a new identity. It
These are employees of the companies work- should also reiterate what the brand stands
ing across the different departments and for—its values, vision and philosophy. The
global offices. Staff designing a letterhead in guidelines should also communicate examples
the United States should use the same design of editorial guidelines and “tone of voice” —
as staff in Europe. This also covers staff this is how companies want their brand to be
PowerPoint presentation slides, complimen- heard when communicating. The tone of
tary cards and even email signatures. When voice also involves how written communica-
in-house teams are creating an advert, they tion should be structured. A distinctive and
will also need the brand guidelines. They consistent tone of voice helps the brand
influence the internal communications within remain consistent; it builds recognition and
the organisation using examples of editorial enhances understanding between all stake-
guidelines and “tone of voice.” Staff must holders. The brand uses the document to
understand how to represent the brand. remind the readers about what lies ahead for
the brand. All these are the abstract brand
5.9.2.2External Users identities that will be physically presented in
They are vendors, contractors or design agen- the next section.
cies working with the brand. They may not
have a full understanding of the brand; the 5.9.3.2Brand Identities
brand guidelines provide that information The brand identity consists of the visual ele-
from the brand’s perspective and help them ments which need to be explicitly presented.
communicate the brand effectively. The docu- These identities are generally classified into
ments guide these external users through the four groups.
111 5
Logo Colour
Brand guidelines display the features of the The consistent use of colours is encouraged by
logo, the icon and typeface. Users are expected the brands as it contributes to a cohesive and
to use the logo in all communications and to harmonious look across all relevant media. To
stick to this arrangement with the exception in achieve this, colour palettes are provided as part
some cases like social media profiles where of the brand identity, and these are identified
only the icon will be used. The various explicitly with various colour coding systems
arrangements of the logo are also presented, such as the Pantone® colour system, the inter-
sometimes in black and white or on a darker
background. Brands take pride in the logo
and will always emphasise an “exclusion
zone” or “clear space” around the logo where
no text or image will interfere (see Fig. . 5.14
for Powerite Incorporated logo and Fig.
. 5.15 for Mainstreet Capital logo). This is
the minimum clear space that must surround
the logo. This zone ensures that the impact
and legibility of the logo are not compromised
in the application. Users are also warned
about “Logo Misuse” as brands want a con-
sistent appearance of their identity. They
warn that the logo should not be misinter-
preted, modified or added to. No attempt
should be made to alter the logo in any way.
They expect the logo’s orientation, colour and
composition to remain as indicated in the .. Fig. 5.14 Clear space around Powerite Incorporated
document (. Fig. 5.16). logo. (Source: Ifeoluwa Sopeju)
.. Fig. 5.15 Clear space around Mainstreet Capital logo. (Source: Arden & Newton)
.. Fig. 5.16 Logo use guide for ardova plc. (Source: Arden & Newton)
national standard for producing colours, The typographic principles are often based on
CMYK (Cyan, Magenta, Yellow, Key/Black) function, format and purpose. These fonts
for print, RGB (Red, Green, Blue) for screen could be bespoke fonts, specially designed for
and hexadecimal values for websites. To further the brand and therefore any user, either inter-
ensure that creative freedom, the brand will also nal or external, will have to get the font from
advise users on different colour combinations the company. Cisco showcased its clean, mod-
within the colour palettes. For some brands that ern and simple font, specially created for them
have trademarked their colours or have a spe- (Cisco 2019). There are commercial fonts
cific shade of colour they use, information which external users may have to buy and use
about these colours is also presented. For exam- if they want to work with the brand. There are
ple, both Queen’s University Belfast and Netflix also system fonts which might be used when
have red as their primary colour, but they are of bespoke and commercial fonts are not avail-
different shades. Queen’s University Belfast has able. These fonts are available on most word
a primary colour that they describe as Queen’s processing software and are free to use, so they
Red—Pantone 185c while Netflix describe do not require a font licence. Information on
theirs as Netflix Red—PANTONE 1795 C the typography also includes size and weight,
(Netflix, n.d.). This detailed information is nec- case, line spacing, letter spacing (also known
essary to ensure brand differentiation and con- as tracking) and justification. Some brands
sistency (. Fig. 5.17). can also recommend specific fonts for use
around the world, as far as it aligns with their
Typography main font. Non-English language layouts are
Organisations often acknowledge that type is also catered for, especially Arabic, where right-
more than a design element. They see it as a alignment will replace left- alignment. Some
creative element which expresses who they are. specific rules are also often presented with
113 5
Our Brand Colours
Our colour palette consists of carefully *USAGE*: Use them as the dorminat colour palette
selected colours that depicts our brands for all internal and external visual representation of
personality. These colours are recognizable the brand. The consistent use of these colors will
identifier for the brand. create recognition and strengthen the our brand.
PANTONE PANTONE PANTONE

2695 C 1585 C COOL GRAY 10 C
DIGITAL: RGB - 93, 19, 153 DIGITAL: RGB - 255, 0, 0 DIGITAL: RGB - 54, 6, 94
HEX - #5D1399 HEX - #FF0000 HEX - #36065E
PRINT: CMYK - 79, 100, 0, 1 PRINT: CMYK - 0, 99, 100, 0 PRINT: CMYK - 90, 100, 25, 30
SPOT: Medium Purple C SPOT: Bright Red C SPOT: 26167 C
.. Fig. 5.17 Mainstreet Capital brand colour as provided in the brand guidelines. (Source: Arden & Newton)
regards to the typography such as not adding images can be used legally, anywhere in the
drop shadows, not stretching the type horizon- world, in any media.
tally or vertically and avoiding hyphenation in Rules such as avoiding emotionless images,
general, and especially in headlines. avoiding images that do not tell a story or avoid-
ing images where models are posing are also
Image presented in the guidelines. Some brands also
Information regarding the type, composition support the use of illustrations where images
and quality of images to use is provided in the are not available or if there is a need to create an
guidelines. Images are considered one of the even more distinctive impression, but it should
brands’ identities to engage with the specific still be coherent with the overall brand identity.
audience effectively. Companies expect those The use of icons is also allowed for some brands,
working with their brands to use the image to but they expect them to be predominantly used
tell a story and give the right impression. in digital applications to aid navigation.
Specifically, some brands request reportage- Samsung Galaxy S20 was unveiled in
style photography that embodies a photo- February 2020 and was available for pre-order.
journalistic eye to capture pure moments. Telephone operators in the United Kingdom
Users are warned to avoid purchasing stock started advertising their services to appeal to
photography whenever possible as brands prospective buyers. Interestingly, they were all
want specially commissioned images to con- using the same image (of the phone). It appears
vey their brand identities as it makes them that the image was provided by Samsung and
unique, not seen elsewhere and makes the they insisted all mobile carriers use it to adver-
message more coherent. I Love New York tise their plans. The images were provided in
Brand Guidelines specially stated that images two variations—one on a black background
used should be photographs taken in and the other on a white background with
New York State. Some brands (Cisco 2019) do phones of different colours. This is another way
have a vast library of approved photos, freely of consistently integrating the Samsung brand.
available for staff and external users. These This allows the same image to be used across
the world on different platforms. The advertis- excellent internal and external communica-
ers add information about their plan, but they tions. Also, it is essential to note that the brand
are obliged to use the image from Samsung. agency that developed the brand identities may
These advertisements contain the logo of no longer be around—in such a situation, it
Samsung and the brand extension (Galaxy will be the duty of another agency to keep
S20). This suggests that any brand that wants to working on the brand. Omnicom’s Arnell
work with Samsung and sell the phone must Group, world-renowned brand strategy, mar-
abide by the provided brand guidelines with keting communications and design firm that
regards to the use of image. This was the same redesigned the Pepsi Logo, closed their studio
approach adopted by Apple when it launched in 2013. Brands must have and keep this record.
5 its iPhone (Mogaji Print Advertisement of
iPhone by UK Carriers 2014).
Brand guidelines are the property of the
brand owner, and are needed as documenta-
tion and official representation of the brand
5.9.3.3Brand Integration elements. This can also be useful for future
Brands give examples of ways in which their brand identity revisions. It is essential to know
brands can be adequately and consistently inte- what the brand has documented and how to
grated across different media. They demon- move on from there. For consistency’s sake,
strate how different brand identities can be the guidelines offer a central hub for all the
combined to make effective communication. users working with the brand to get the infor-
This also includes demonstrating the use of mation needed. It is essential that the right
grid lines as an essential organisational tool in shade of red is used across media, irrespective
visual identity design. The brands believe that of screen or country.
using these examples and guidelines helps to The availability of brand guidelines also
deliver their messages in a clean, simple and helps large organisations appear consistent
direct way. This integration also includes the across different touchpoints. Wherever the
sample layout and template for marketing col- brand operates, the same message is given.
lateral, stationery items, business cards, compli- This also helps both internal and external
ment slips, envelopes, pull-up stands, building users working on the brand; they do not
entrance plaques, wayfinding signage, mer- have to stress over how to communicate
chandise, social media, Microsoft PowerPoint effectively; the brand guidelines are there to
presentations and website elements. This list is help them.
inexhaustible depending on how large the Brand guidelines are not just limited to big
brand is and how many touchpoints they need corporations, small businesses and start-ups
to integrate to reinforce their new brands. can also have brand guidelines, albeit not very
detailed. At the very least the guidelines will
cover logo, the colour shade and the font
5.9.4 hy Are Guidelines
W being used. These three basics are essential to
Important? ensure consistency. Also, individual brands
can have brand guidelines; celebrities, sports
Brand guidelines accurately identify and docu- personalities and entertainers who have a rec-
ment the different brand elements of a com- ognised brand can have their brand identities
pany. This understanding helps in making documented.
Case Study 5.3: Arden & Newton for Mainstreet Capital Limited
Mainstreet Capital Limited is considering tasked to create the new identity. In presenting
rebranding and creating a new identity for their this new identity, they prepared Brand
firm. Arden & Newton, an Africa focused, Guidelines, a document that captured the
strategy-driven branding agency and market- breadth of Mainstreet Capital’s intent for a
ing communications consultancy firm was bold new brand in the investment banking
115 5
industry. Arden & Newton noted that good stand out. Arden & Newton has the experience,
intentions alone do not create great companies, resources and manpower to deliver this. It seems
good execution does. They promised to design no in-house team at Mainstreet Capital was able
a long-term execution plan and build a bridge to take up this responsibility. Sometimes a
that connects corporate vision and strategy to brand wants an outsider, somebody with no
the execution plan for Mainstreet Capital. existing knowledge or bias about the brand to
The Brand Guidelines for Mainstreet Capital be very critical and offer a strategic direction.
Limited were contained in a 102-page document Brand Guidelines are documents which can
TAKE THE RIGHT TURN, that highlights the evolve over time, things are bound to change
brand idea and how this philosophy is crystal- but importantly they contain basic information
lised into four key areas of Mainstreet’s business. for brands to use and remain consistent across
The document further presented how the the board. This includes the layout of the logo,
selected brand archetype exhibits Mainstreet’s management strategies, the fonts, colours, the
personality and core values. A visual narrative email signature template, grid system to effec-
of the proposed identity was also presented in tively structure content and the effective use of
the document. This also includes the thought images to ensure consistency (. Figs. 5.18,
process of the identity, suggesting that it was not 5.19, 5.20, and 5.21).
created out of the blue or by sheer luck, but con-
scious effort was put into the design. Reflective Questions
This document is aimed at convincing 55 Why do you think it was important for
Mainstreet Capital that Arden & Newton Mainstreet Capital to commission Arden &
understands their brand and can reposition it Newton for their new brand identity?
for greatness. These are the responsibilities of 55 How would you describe the role of Arden
brand consultants working with brand owners & Newton in the design process?
(“stakeholders” discussed in 7 Chap. 1). The 55 How important is it for Arden & Newton to
agency can critically evaluate the brand and provide the brand guidelines for Mainstreet
offer suggestions as to how to make the brand Capital?
. Fig. 5.18 The Connecting the dots using our

conceptualisation of original concept of the corner
Mainstreet Capital brand theory in architecture
identity. (Source: Arden & Mainstreet City gateway Highway
Newton) access/opportunity direction/guide
Top shape is
arched to give a
visual impression
Original marks of a upward trajectory.
+ =
Bottom shape is arched

to give a visual
impression of a cover.
Altered angles &

perspectives to comply
with our story and
create a distinct mark.
Grid/Construction system
0.038 m
0.079 m
5 0.029 m 0.009 m
0.005 m
C A P I T A L
0.004 m
. Fig. 5.19 The grid/construction system for Mainstreet Capital brand identity. (Source: Arden &
Newton)
Email Signature
Name and Surname
Avenir Medium
Bold 10pt, ALL CAPS
Mainstreet Purple
NAME SURNAME
Job Tilte | Department name
Address e.g. 1st floor, H block, Your Address here
T.+234 (0)00 000 0000 E. nsurname@mainstreetcapitalltd.com
F. facebook.com/mainstreetcapitalltd T. twitter.com/mainstreetcapitalltd
C A P ITA L
Logo Size Contact Details

64mm Hieght Avenir Light
Regular, 10pt
Mainstreet Purple.
. Fig. 5.20 The email signature template for Mainstreet Capital. (Source: Arden & Newton)
5.10 · When to Design the Brand Identity
117 5
. Fig. 5.21 Grid lines for producing social media advert for Mainstreet Capital. (Source: Arden &
Newton)
5.10 hen to Design the Brand

W sary, the brand identity needs to be rede-
Identity signed. Rebranding to revitalise and refresh
the brand can also warrant the need to rede-
Designing brand identity is essential. sign brand identities. For example, Mogaji
Recognising who should do it is crucial as (2018) found that UK universities are rebrand-
well. Likewise, it is essential to consider when ing to refresh their brands and increase their
to do this part of the brand management appeal. They wish to present themselves as
process. active players in the sector and to remain
dynamic, contemporary and relevant. The
University of Leicester acknowledged that it
5.10.1New Company, New Product was vital that they should cohesively present
themselves, while Queen’s University Belfast
When there is a new company, brand identity wants to share their strong messages and
needs to be designed. The new brand needs to world-beating stories with strength and confi-
have an identity that will be communicated. dence, demonstrating how they are shaping a
Often if this is a start-up, an initial effort better world. These rebrandings, though not
towards branding is essential. Basic design necessarily encompassing a change of name,
should cover logo and communications, require new identities.
including website and social media. Likewise,
when a new product is being launched, brand
identity is essential and needs to fit into the 5.10.3Mergers and Acquisitions
architecture of the brand.
When two brands with different identities
come together, they are often expected to
5.10.2Rebranding rebrand and change their brand identities.
Depending on the nature of the acquisition, a
On rebranding, the brand identity may be new brand identity may be required, and like-
changed to reflect the changes. As earlier dis- wise in some cases, the acquired brand may
cussed in the misconceptions section, there lose its identity as they are integrated.
could be instances of rebranding when physi- Notwithstanding the arrangement, the brand
cal identities are not changed, but in the case, managers should be aware of the possibilities
where a change in identity is deemed neces- of changing the identity. The new identity may
combine the use of icon or typeface. In United essential to know that whoever is designing
Airlines, the United name was retained, but the identity can creatively express the thoughts
the Continental blue icon was used whereas in of the brand owners. Professional input may
ExxonMobil, a new identity was created with be necessary depending on the type of brands,
a combination of both typefaces. This is fur- likewise, the brand owner needs to be aware of
ther discussed in more detail in 7 Chap. 10— other deliverables—is it just a logo in JPEG or
“Brand Mergers and Acquisition.” logo in.png file that can be edited? Does it
include the design of the business card, social
media graphics, app icons or letterheads? Will
5.11 Considerations for Brand brand guidelines be provided? These details
5 Identity should be finalised by the brand owner and
brand identity designer. Foroudi et al. (2017)
This section raises key questions for brand suggest that the logo needs to be managed
owners considering a brand identity. It may through a multidisciplinary approach, per-
apply more to a new brand than an established haps the design of the brand identity should
brand, but in any case, it presents insights for not just be left to the designer but the stake-
brand identity design and management. holders should be involved in the process.
5.11.1The Initial Thought 5.11.3The Brand Integration
The brand owner needs to be able to docu- Now that we have the logo, how will it be
ment this and present it when it is time to used? How can the brand make sure the iden-
design. What word best describes this brand? tity is well integrated across the different
What animal best describes the brand? What touchpoints? This may include updating the
colour? What font? Or what shape? The brand website to reflect the identity, changing the
owner needs to be able to share some insight social media profile, printing new business
into the short-term, medium-term and long- cards, changing the product packaging or
term goals of the brand. The brand owner changing the signage in the office. The brand
needs to know about the competitor, how manager needs to take a visual inventory, to
their brand will be different from that of com- understand if brand identities are used consis-
petitors. There must be an element of unique- tently across all platforms. Here the brand
ness in the brand design. Practically, the brand guidelines are useful. The font, colours and
owner should have a budget and a plan as to photographs must be consistently used. The
how the new brand will be integrated. These brand manager needs to be aware that there
insights can be captured through a brand may be some people who may not like the
identity questionnaire. logo; it is essential to know how to work with
these individuals. Consumers are more likely
to assign negative attributes to a logo they
5.11.2The Designer have not seen before (GAP and Weight
Watchers [now WW] had new logos that were
There are many options for the brand designer. not liked). Integrating and effectively commu-
There are websites like Brandmark, which nicating these new identities are essential.
claims to create unique, professional logos for
businesses. Many small boutique agencies cre-
ate logos and other brand identities. 5.11.4The Protection
Freelancers can be approached on freelance
marketplaces like Fiverr or Upwork to design The brand manager will need to decide if the
the identities. Family members and friends brand identities should be protected and
can also design the logo. Even the brand trademarked. As we saw with brands trade-
owner can design the identities. It is, however, marking their scents as a form of identity, this
5.12 · Conclusion
119 5
is an option to be considered, though not tion, distinctiveness. Brands will be recognised
compulsory, and it offers a longer-term assur- within the competitive market. A brand with
ance of ownership and protection from com- a strong identity can build brand loyalty and
petitors and other brands. Would you want to repeat purchase as it aids the selection making
create and use a bespoke font or a unique process for consumers. This unique identity
colour? Kolormark offers a colour naming also protects the brand from counterfeit.
platform, which allows a brand owner to take Consumers who have engaged with the origi-
ownership of colour and get a certificate to nal brand can identify a counterfeit and avoid
confirm ownership. The whole essence is to it. Brands should ensure that their identity is
protect the brand identities, to make the consistent across the board, across different
colour unique to the brand, thereby distin- countries or different product lines. It takes a
guishing the brand. creative, conscious effort to achieve this.
The decision to design a brand identity is
very strategic. The role of the brand owners/
5.11.5The Change managers cannot be overemphasised. They
bring meaning and values to the brand iden-
This is an important decision for a brand tity. The brand owners/managers need to rec-
owner—to decide when to change their iden- ognise who is responsible for the design—a
tity. Perhaps as the brand grows, the identity friend, freelancer or a professional. The brand
may need a refresh, and as the brand grows identity elements should be memorable, easy
with more confidence and credibility, changes to remember, meaningful and relevant to the
may be necessary. Some brands may outright business and of course should be likeable.
change their logo, while some may decide to People should want to be associated with the
refresh it. Google, eBay, YouTube and brand because they can easily pronounce it
Microsoft have changed their logo. Starbucks and they do not find it offensive. In addition,
and MasterCard modified theirs by removing the brand identity should be transferable,
the wordmark. Nike has not changed its adaptable and protectable, allowing for an
Swoosh since 1971, but it has evolved over the opportunity to leverage and maintain brand
years. The brand manager may decide to equity. Thinking beyond today, thinking
change the logo entirely or allow it to evolve. beyond just one product line is important
It is a strategic brand management decision when creating a brand identity. Consistency is
that needs to be considered at a point in time also vital upon the delivery of the brand iden-
of the business. tities, and this is where the brand guidelines
become relevant—to ensure that everyone
working on the brand understands how to use
5.12 Conclusion the identity correctly.
Brand identity is an essential component
Brands surround us; this abundance high- of brand management. It offers a physical ele-
lights the need for consumers to be able to ment to the brand, making it more recognisa-
identify the brands they engage with. This ble. Either at the start of a new brand or at
topic has explored brand identities in the con- rebranding, brand managers/owners need to
text of how brands users can recognise brands. ensure that their brand can be easily identified
The brand identity goes beyond the logo. The through creative design. The logo may have
brand identity is not only limited to visual been considered as the key and most crucial
identification, but to other senses, auditory, brand identity; conscious creative decision
tactile, olfactory and gustatory. Brands should must be made with regards to the possibilities
be able to create an identity from these vari- of sensory branding. The brand manager/
ous perspectives. owner needs to look beyond just visuals but to
The benefits of brand identity cannot be explore an identity that allows customers to
overemphasised. Branding creates differentia- have a sensory experience with the brand.
advantage. Industrial and Commercial Training 32

(7): 256–262.
Key Points
Balmer, J., and S. Greyser. 2006. Corporate marketing:
55 Branding identity makes a brand highly Integrating corporate identity, corporate branding,
recognisable and distinguished. corporate communications, corporate image and
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Barnett, M., J. Jermier, and B. Lafferty. 2006. Corporate
human senses—not just visuals.
reputation: The definitional landscape. Corporate
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the role and influence of the brand Black, I., and C. Veloutsou. 2017. Working consumers:
owner and allow research-led creative Co-creation of brand identity, consumer identity
and brand community identity. Journal of Business
5 input.
55 Brand identities should be communi- Research 70: 416–429.
Bonenberg, W. 2014. Brand visual identity in architec-
cated through brand guidelines for ture. In Universal access in human-computer inter-
consistent use. action. Design for all and accessibility practice.
UAHCI 2014. Lecture notes in computer science, ed.
C. Stephanidis and M. Antona, vol. 8516, 143–152.
Cham: Springer.
Childers, T., and J. Jass. 2002. All dressed up with some-
► Student Activities
thing to say: Effects of typeface semantic associa-
1. How would you describe brand identity? tions on brand perceptions and consumer memory.
2. How important would you consider a Journal of Consumer Psychology 12 (2): 93–106.
strong brand identity in a saturated market? Cisco. 2019. Interactive brand book. Accessed 8 8, 2020.
https://www.c isco.c om/c/m/en_us/about/brand-
3. What is the difference between brand name
center/copyright-use/copyright-material-guidelines/
and brand identity elements? interactive-brand-book.html#16.
4. When do you need a brand identity? da Silva, L., E. Mainardes., A. Teixeira., and L. Júnior.
5. Can you describe other forms of visual 2020. Brand orientation of nonprofit organizations
brand identities? and its relationship with the attitude toward char-
ity and donation intention. International Review
6. How can a brand adopt a tactile brand
on Public and Nonprofit Marketing https://doi.
identity? org/10.1007/s12208-020-00251-6: 1-21.
7. What are the benefits of brand identity in a Forbes. 2019. World's Most Valuable Brands. Accessed
monopoly market? 8 8, 2020. https://www.forbes.com/the-worlds-most-
8. What is the relevance of brand guidelines valuable-brands/#59ff5e53119c.
Foroudi, P., and B. Nguyen. 2019. Corporate design:
for external designers working on a brand?
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10. Discuss the differentiating and distinguish- don: Routledge.
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123 6
Brand Integration
Contents
6.2 What Is Brand Integration? – 126
6.3 Why Can’t You Recognise the Brand? – 127

6.3.1 S tructure of the Brand – 127
6.3.2 Target Audience – 127
6.3.3 Geographical Differences – 127
6.3.4 Regulated Industry – 128
6.3.5 Financial Limitations – 128
6.4 Benefits of Brand Integration – 128

6.4.1 isibility – 128
V
6.4.2 Relationship – 129
6.4.4 Sales Promotion – 129
6.4.5 Long-Term Sustenance – 129
6.5 Brand Integration Strategies – 129

6.5.1 dvertising – 129
A
6.5.2 Corporate Social Responsibilities – 130
6.5.3 Sponsorship – 131
6.5.4 Brand Partnership – 132
6.5.5 Brand Placement – 133
6.5.6 Branded Content – 133
6.5.7 Influencers – 134
6.5.8 Employees – 134
6.5.9 Souvenirs – 135
6.5.10 Mascot – 135
6.6 Whose Is Responsible for Brand Integration? – 136

6.6.1 rand Owner/Brand Manager – 136
B
6.6.2 Employed Brand Manager – 137
6.6.3 Brand Management Consultants – 137

6.7 When to Integrate – 137
6.7.1 ontinuously – 137
C
6.7.2 New Brand and Rebranding – 138
6.7.3 Launching – 138
6.7.4 Partnership and Initiatives – 138
6.7.5 Scandals and Misconduct – 139
6.8 Who Needs the Integration? – 139

6.8.1 ustomers – 139
C
6.8.2 Competitors – 139
6.8.3 Colleagues – 139
6.8.4 Regulators – 140
6.8.5 Stakeholders – 140
6.9 Considerations for Brand Integration – 140

6.9.1 onsistency – 140
C
6.9.2 Shared Values – 140
6.9.3 Congruency – 141
6.9.4 Financial Limitations – 142
6.9.5 Shared Benefits – 142
6.9.6 Length and Extent of Integration – 142
6.9.7 Legal Implications – 142
References – 144
Brand Integration
125 6
Alex comes into the gym wearing a shirt with share this identity. Or else, you may need to
the logo and name of their organisation. Code place an advertisement in the newspaper
and Sam saw the design during the past week introducing your charity organisation or
in messages Alex sent, and they liked it. sponsor an event to make sure that everyone
However, seeing it physically on Alex’s shirt is sees your logo. These are conscious efforts to
better. Alex is very excited about their logo integrate the brand, raising awareness and
and wants to flaunt the new design. Code and thereby building trust. You saw the
Sam were excited for Alex, so they take a selfie #AlexNewLogo on your social media, your
and share it on their social media with friends have talked about it and then you see
#AlexNewLogo. Code and Sam both want to an advert where Alex is asking for donations
help Alex integrate their brand and become for the charity. In this case you are more
well known. Code promises that their manu- inclined to donate compared to a charity you
facturing company will partner with Alex’s might not have seen before. That’s the benefit
charity for corporate social responsibility. of effective brand integration. Though it
Code feels good about contributing, and it might be expensive and time-consuming, it is
will also make their clients aware of the char- a long-term investment in building the brand’s
ity. Sam says it is a good idea, sharing their value.
experience as brand manager and showing
them a water bottle from a competition that
Overview
their company sponsored. Sam said that
Having a brand identity is not enough. The
although the company had to pay to take part
beautiful logo is not the end of brand man-
in the event, it was worth it because it was fan-
agement. Brands need to make sure that
tastic advertising for their brand. Having a
their brands are well integrated and seen by
good logo is not enough for branding. You
the target audience. This chapter explores
may need to rely on a friend, like Alex did, to
126 Chapter 6 · Brand Integration
only faint memories. If we haven’t forgotten

brand integration, which is a continuous them yet, sooner or later they will be forgot-
process to bring the brand to the conscious ten. How many of your friends from elemen-
knowledge of the key stakeholders. In some tary or primary school do you still remember?
cases, it might be described as a brand You are more likely to remember those who
advertisement or integrated marketing you kept in touch with over the years, though
communications, but the focus is not always it requires effort, you have both tried.
to sell and market but to bring awareness to From a brand management perspective,
the consumers and stakeholders. We will brand owners want to build a relationship
look at some key reasons why brands may through constant and continuous engagement
not have been well integrated, perhaps due with their stakeholders, and they want brands
to the location or structure of the brands. to be remembered rather than forgotten. They
We will also discuss the benefits of brand want to remain on that high pedestal in the
6 integration with ten key strategies to aid mind of the consumer (as discussed under
this integration so you can enjoy the bene- 7 Chap. 4 “Brand Positioning”). There are
fits. Here we go beyond advertisement to many brands that you do not know, many
include staff and corporate responsibilities. brands that are not even in your mind, most
No doubt brand integration is an impor- likely, these brands have not been well inte-
tant task which can be time-consuming and grated and brought to your attention. Though
requires a considerable amount of effort. they have developed an identity, as previously
This chapter identifies those who are discussed, if these identities are not inte-
responsible for the integration, those who grated, it will make no difference. At the end
are the targets for integration and, impor- of the chapter, you should be able to answer
tantly, the key considerations for integra- the key question, which is how to create aware-
tion. ness for a brand, not only for a new brand but
also for a more established brand.
? Key Question 6.2 What Is Brand Integration?

How can consumers be aware and recognise
a brand identity? Brand integration is a process undertaken by
brand owners to make stakeholders aware of
n Learning Outcomes what the brand stands for. This process is also
At the conclusion of this chapter, you will known as brand awareness building—generat-
be able to ing awareness and establishing and promoting
55 describe the concept of brand integra- the brand using different strategies and tac-
tion; tics. Having a brand identity is not the end of
55 recognise the benefits of brand integra- brand management, it is essential that stake-
tion; holders, including the customers, are aware of
55 give examples of brand integration the brand and its offerings. When there is a
strategies; new brand identity, either through new brand
55 describe the responsibilities of key creation or rebranding, it is crucial to create
stakeholders in brand integration; and awareness.
55 explain the key considerations for brand This process is ongoing and continuous,
integration. irrespective of the nature of the brand. While
a new or growing brand may consider it essen-
tial to integrate their brand, the more estab-
6.1 Introduction lished brands are not exempted. It is essential
to bring the brand to the attention of the tar-
There are many brands out there that we do get audience, and importantly, this integration
not recognise; there are many brands that are should be clearly, consistently, and coherently
6.3 · Why Can’t You Recognise the Brand?
127 6
presented across touchpoints. No doubt this 6.3.2 Target Audience
will be an expensive task, but it is worth con-
sidering as it guarantees the reputation and Some brands do have a specific audience
long subsistence of the brand. which they have to engage with. This audience
may be a small and unique group of society,
and therefore there is no need to invest
6.3 Why Can’t You Recognise resources in reaching out to individuals who
the Brand? may need the product. Every day millions of
people encounter the Airbus brand—the fly-
There are many reasons why consumers may ing public, government ministers and corpo-
not have recognised a brand. This lack of rate enterprises, the aeronautics community
awareness could be that the brand has not or anyone with a passing interest in aviation,
made enough effort to integrate the brand or but their branding integration strategy will be
due to differences in the target audience. It is different from that of British Airways or
essential to understand these limitations and United Airlines. Airbus will more likely posi-
how it may affect the brand integration strat- tion their brand to the airline operators than
egy. For a charity brand, it could be the finan- to consumers. Likewise, while some brands
cial limitations, and they may prefer to spend may be reaching out to individual consumers,
more money on charity activities and less on some brands are reaching out to business con-
brand integration. A start-up company may sumers; therefore, their integration strategies
be developing web applications for business will be different. Brands like Cisco, Oracle
consumers and therefore adopt a different and IBM are more targeted towards business
brand integration approach, while for a multi- consumers and not individual consumers;
national, it could be the geographical limita- therefore, their approach towards brand posi-
tions. This section highlights some of these tioning will be different, their channel of com-
limitations and the reasons why consumers munication and social responsibilities will be
have not experienced the integration of some different as well.
brands.
6.3.3 Geographical Differences

6.3.1 Structure of the Brand
The geographical locations of some brands
Some brands may not be integrated due to may also limit how well the brands can be
their nature and structure. Often this could be integrated. This can also be related to the tar-
a parent brand with many other sub-brands. get audience, but in the case of geographical
An example is P&G, which owns the Always, limitation, it specifically highlights the loca-
Always Discreet and Tampax brands. These tion of the market and those who need to be
sub-brands are often integrated and adver- aware of the products. If a product is not
tised more than the P&G brand name. needed or used in a location, it makes no busi-
Likewise, for Google, the attention is not on ness sense to position the brand in that mar-
Alphabet, which is the parent company but on ket. Likewise, in some cases, some parent
Google, YouTube and Android, which are brands use different brand names to market
well known. The nature of these brands (i.e. the same products in different markets.
parent brands), may suggest why they are not Kentucky Fried Chicken (KFC) translated
being integrated and positioned in the minds their name into French—Poulet Frit Kentucky
of the consumers. (PFK)—to position their brand for consum-
ers in Quebec, Canada (in France it is still 6.3.5 Financial Limitations

called KFC). Many people who have not been
to Quebec may not be aware of that name Brand integration requires a lot of financial
change, but it is the same KFC. Another commitment, from advertising to sponsorship
example is Lay’s in the United States, which is and other forms of corporate social responsi-
known as Walkers in the United Kingdom. bility (CSR). Brands like Coca-Cola and John
Burger King in the United Kingdom is known Lewis advertise at Christmas even though it is
as Hungry Jack’s in Australia. Vaseline in expensive to advertise during this time of the
Nigeria is known as Vasenol in Spain. Always year. Many other brands advertise during the
in the United States is Whisper in Japan, while Super Bowl to reach a worldwide audience,
Hellmann’s in the United States is Best Foods. costing over $5 million for a 30-second ad.
So, if you have not seen the Best Food brand, These are financial commitments that smaller
you have seen Hellmann, likewise, if you have brands may not be able to make. Financial
6 not seen Whisper from Japan, it is still the limitations could also mean not having access
same Always around the world. Brands will to the technology and human resources
most likely integrate the brands that are well needed for integration. Smaller brands may
known in a geographical location. not be able to compete with more prominent
brands which have invested so much and are
still investing so much into integrating their
6.3.4 Regulated Industry brands. Therefore, financial strength also
plays an important role in brand management
Many products would like to be well known and development. This is because, brands
and integrated, but because they operate in a need money to execute the necessary steps to
regulated market, there are limits to their reach the target and wider audience.
brand integration strategies. These regulated
brands include alcohol, gambling, cigarettes
and tobacco. The brands in such niches are 6.4 Benefits of Brand Integration
limited to how aggressive and well they can
advertise their brands, do corporate sponsor- A well-known brand has an advantage over
ship or put in place corporate social responsi- an unknown brand. A well-known brand has
bility practices. The United Kingdom Football trust and credibility. This section discusses the
Association had to back down over a deal benefits of brand integration while acknowl-
allowing gambling website Bet365 to screen edging that, though it requires a considerable
live football matches. The gambling company amount of investment, there are benefits
had partnered with the Football Association, attached to a well-integrated brand.
which allowed FA Cup games to be seen by
anyone who created an account. There was
massive pressure from people who felt this 6.4.1 Visibility
could encourage gambling and the partner-
ship, which could have been an opportunity to The brand is on TV. It is on billboards. The
further integrate the Bet365 brand, was termi- logo is on free souvenirs distributed at events,
nated. and the brand sponsors local events. It is
Some brands, like Unilever, are making a everywhere. A well-integrated brand becomes
conscious decision to be different. The com- very visible within the market. It becomes well
pany, whose portfolio includes Ben & Jerry’s recognised, building trust in the brand. People
and Klondike, has made plans to stop adver- feel the brand has been around and so it must
tising ice cream to kids over obesity concerns. be good. This is reassuring. The visibility of a
The company said for television and other brand helps the brand to get a strong foot-
measurable media, it will not run ads where hold, ahead of competitors who may not be
children aged under 12 represent over 25% of financially buoyant enough to compete and
the audience. disrupt the market.
6.5 · Brand Integration Strategies
129 6
6.4.2 Relationship building and positioning the brand will ensure
its long-term survival.
With visibility comes a relationship. People
feel connected to the brand; the brand is
present in their day-to-day activities. The 6.5 Brand Integration Strategies
consumer-brand relationship becomes signifi-
cant in building loyalty and an attachment to Now that we have looked at the key benefits, it
the brand. is crucial to explore strategic directions for
brand integration. This section presents some
key strategies, but this list is not exhaustive.
6.4.3 Reputation There are many other opportunities which
may be specific to the type of brand, the loca-
A visible brand that has built a relationship tion and country of origin of the brand.
with the target audience becomes more repu-
table. The brand’s presence is seen as a stamp
of authority, and many other brands will want 6.5.1 Advertising
to be associated with it. This reputation also
builds on the credibility of the brand. The This strategy is one of the most efficient strat-
integration of the brand ensures that it is well egies for brand integration. Advertising allows
respected within the market. a brand to communicate its products and ser-
vices to consumers. They showcase their
brand identities in messages across various
6.4.4 Sales Promotion media. The consumer sees these marketing
communications; they keep the brand in mind
A visible brand will always be visible at the and may remember at the point of purchase.
point of sales. Brand integration enhances the The brand uses these advertising mediums to
sales promotion of the brand. The brand is put their brand name out; therefore, for peo-
not just saying “buy from me.” It builds on the ple to see and recognise (Mogaji 2018b).
consistent brand integration, the relationship Advertising is not just limited to selling or
that has been built and invites people into an marketing a service, sometimes brands want
experience. Consumers are more willing to to be associated with a celebration, so they
buy a product that they recognise, and brand create an advertisement to share in the joy and
integration improves recognition and thereby, excitement of a traditional celebration like
more sales for the brand. Christmas, Valentine’s Day or Easter. This
often applies to the retail brands in the United
Kingdom that release advertisements at
6.4.5 Long-Term Sustenance Christmas. These brands invest a lot of finan-
cial and human resources to create these
Consumer behaviour is changing, world eco- advertisements that have become a regular
nomics and business practices are evolving, occurrence during the period. For example,
brands needs to keep up with the integration the Pampers advertisement for Valentine’s
of their brands in order to meet and exceed Day, is a simple approach to join in the con-
the expectations of people and stay ahead of versation and further integrate the brand into
the game. Brand integration ensures visibility the minds of prospective parents. In addition,
and reputation. It can position the brand for a some brands may create an advertisement to
long-term benefit in the evolving market. The address societal issues. An example is the
brand value built through consistent brand Gillette advertisement #MeToo on “toxic
integration can extend into new brand devel- masculinity.” Though it was negatively
opment and new markets. The investment in received, it further integrated and increased
the mention of the Gillette brand. No doubt, to engage in activities as a form of obligation
advertising can be costly, but it offers an effec- towards the interests and the welfare of the
tive way of creating brand awareness. society that it operates in. The brand is aware
of the value of the public’s positive percep-
tion, and they use this opportunity to inte-
6.5.2 Corporate Social grate their brands further as the consumers
Responsibilities and the public sees that the brand is responsi-
ble for the action (Mogaji et al. 2020a, b). A
Corporate social responsibility (CSR) is tak- company might decide to buy a school bus for
ing centre stage to provide a more sustainable, primary school children, and on the bus there
long-term brand value (Middlemiss 2003). It might be a description that says, “Bus donated
is described as an activity taken by corpora- by this brand.” Performing this act demon-
tions to enhance economic, social and envi- strates how the company cares about the pri-
6 ronmental performance voluntarily (Lai et al. mary school. The brand has the option of not
2010). It is often considered as a form of stra- putting their name on the bus but because of
tegic investment, which can be viewed as a the need to create more brand awareness, to
form of reputation building or maintenance demonstrate their generosity and further inte-
(McWilliams et al. 2006). A brand may decide grate their brand, they decide to do this.
Case Study 6.1: BeGambleAware®
As a form of corporate social responsibility, to help people make informed decisions about
from 1 January 2020, gambling companies in their gambling. They explain what safer gam-
the United Kingdom must make an annual bling means, how to understand and recognise
financial contribution for gambling research, problem gambling, and show people where to
prevention and treatment (RET), as required go for further information, help and support
by the Gambling Commission’s Social should they need it.
Responsibility Code Provision. GambleAware The CSR arrangement identifies key stake-
is one of the organisations approved by the holders in a regulated market. The Gambling
Gambling Commission to receive this finan- Commission’s Social Responsibility Code
cial contribution from the gambling compa- Provision obliges gambling companies to make
nies. financial contributions to charity organisa-
GambleAware is an approved organisations. These charity organisations then provide
tion that carries out research, prevention programmes that help consumers that may
and treatment work. GambleAware raises have gambling problems (. Fig. 6.1).
over £8 million yearly in voluntary donations
through the donation-based system where
gambling companies donate a minimum of zz Reflective Question
0.1% of their annual gross gambling yield 55 How do you think gambling companies are
(GGY). GambleAware administers and funds integrating their brands through corporate
BeGambleAware® which provides information social responsibility?
131 6
Financial contribution
for gambling research,
prevention and
treatment (RET)
Gambling Gambling Charity

Costomers
Commission Companies Organisations
Social Gambling Suport

Responsibility programs and
Code Provision Initiatives
.. Fig. 6.1 Gambling companies’ corporate social responsibility. (Source: Author)
6.5.3 Sponsorship media, consumers and fans become used to

the name and engage with it.
This is closely related to corporate social Sponsorship can also extend to sports
responsibility, but while CSR is an action to team clothing and accessories (Ahn et al.
enhance the positioning of the brand while 2013). Chevrolet, the American car manufac-
contributing to the community, sponsorship is turer, signed a £450 million deal in 2012—
a conscious business decision to be financially worth £64 million a year—to sponsor
committed to a cause. In 2019, Barclays Bank Manchester United’s shirts from the 2014/15
committed £10 million to sponsor the season through until the end of the 2020/21
Women’s Super League in England. The bank campaign. In the United States, the National
paid for the privilege of putting their name to Football League has a four-year agreement
the competition (it’s now the Barclays FA with leading eyewear and sports lifestyle
Women’s Super League). This means that any brand Oakley to become the league’s official
time the competition is mentioned, the helmet visor provider, a new sponsorship cat-
Barclays brand is mentioned as well. Heineken egory for the league. Have a look at the
agreed to sponsor Euro 2020 as the official Formula 1 driver’s shirts and cars to recognise
beer and is still sponsoring the Champions their various sponsors. This strategy is all
League Football. Adidas has also renewed about making financial commitments to gain
until 2030 the official partner status it has a slice of exposure for their brands. As these
enjoyed with FIFA since 1970. sports’ personalities are seen around the
A brand can also sponsor stadiums and world, these brands’ identities are getting
arenas to further integrate its brand (Clark more recognition, attention and awareness.
et al. 2002). Emirate Airlines has the naming Sponsorship is not limited to sports or
rights to Arsenal’s stadium until 2028. Etihad competitions. Brands can sponsor events
has the sponsorship of Manchester City which guarantee that their brand logo will be
Stadium and the multi-purpose O2 Arena (for- printed on brochures, attendee’s bags and
merly the Millennium Dome). In Germany, other event materials. Sponsorship in brand
the Bayern Munich stadium is sponsored by management can also sometimes be played
Allianz. The Mercedes-Benz Arena (formerly out as the act of supporting an activity, a
known as the Shanghai World Expo Cultural course, person, event or organisation through
Centre), is an indoor arena located in Pudong, the provision of certain products or services
Shanghai. There is also the Suncorp Stadium free of charge. This is done consciously by dif-
in Brisbane, Australia. These naming rights ferent brands to stamp their names on the
and sponsorships often last for more than 10 entity they are sponsoring (Jensen et al. 2018).
years to allow proper integration; so that the Therefore, it is in an engaging way for the
brands to register themselves in the minds of ing with Adidas, Beyoncé was able to use her
brand users. Although this is somehow indi- celebrity status to market the collection; she
rect, it is a deliberate way of registering the integrates her brand and likewise the Adidas
brand in the minds of customers and aligning brand. Similarly, there is an arrangement
the brands with the brand users’ philosophy. between Kanye West and Adidas to produce
the Yeezy Boost. The partnership benefits
both Adidas making the shoe and Kanye
6.5.4 Brand Partnership West, who designs it. In 1984, Nike teamed up
with Michael Jordan to launch Jordan Brand,
While brands may have to pay for sponsor- a brand of shoes and athletic wear built
ship, a brand partnership is often a mutual around the basketball player. Nike co-founder
agreement between two complementary Phil Knight called the success of Air Jordan
brands to co-create and partner on an initia- “the perfect combination of quality product,
6 tive (Cao and Yan 2017). The unique feature marketing, and athlete endorsement.”
here is the working relationship between both Likewise, in football, in 2015 Nike
brands. They often both contribute equal launched the first of seven “CR7 Chapters.”
shares; they have shared benefits and rewards These are specially designed Mercurial boots,
for the success of the arrangement. Both each relaying an important piece of footballer
brands can combine their strengths and strat- Cristiano Ronaldo’s personal and footballing
egies to create awareness, leveraging on each history.
other’s expertise to build a unique experience In financial services, there is a part-
for their customers. Both parties recognise nership between Apple and MasterCard.
each other’s value in the partnership. This Also, American Express has partnered with
partnership can involve sharing the same plat- Amazon on a co-branded credit card. GoPro
form for the brand identity, like the backdrop and Red Bull, two of the world’s strongest
during press conferences that will have names brands, teamed up in 2016 to form an exclu-
and logo of the different brands that are part- sive global partnership which includes content
nering together. It builds a form of associa- production, distribution, cross-promotion
tion between the brands and many more that and product innovation. As part of the agree-
have shared values. ment, Red Bull received equity in GoPro and
An example of a brand partnership is the GoPro became Red Bull’s exclusive provider
working relationship between Beyoncé and of point-of-view imaging technology for cap-
Adidas to create a new clothing line. Beyoncé turing immersive footage of Red Bull’s media
is a brand on her own, working and partner- productions and events.
Case Study 6.2: Target Corporation and UNICEF
Target is supporting a better, more sustainable Since 2015, as part of its commitment to
world in alignment with the UN Sustainable wellness, Target has partnered with UNICEF
Development Goals (SDGs). Building upon USA in support of UNICEF Kid Power. As a
the expansive nature of its business and value Presenting Sponsor, Target has committed $6.5
chain, Target is impacting each of the SDGs, million to help the UNICEF Kid Power pro-
focusing on the goals where it can provide the gramme expand. Over 3 years they engaged
most significant contribution. In partnership nearly 250,000 students in the fight to end
with UNICEF USA, Target aims to enrich and global malnutrition by living more active lives.
protect the lives of its team members, the fami- Through UNICEF Kid Power, every 150
lies they support and the communities where therapeutic food packets unlocked from points
they live and work. earned delivers a full course of life-saving treat-
133 6
ment for a severely malnourished child. In ties. By investing in UNICEF, Target aims to
total, UNICEF Kid Power team members have play a significant role in helping to improve
unlocked 8.2 million lifesaving therapeutic workplaces in the global supply chain.
food packets and saved the lives of 52,000 kids
in need around the world. With UNICEF Kid zz Reflective Questions
Power, the more kids move, the more points 1. Can you identify any justification for Target
they earn, the more lives they save. For more to support the UNICEF Kid Power initia-
information on UNICEF Kid Power, you can tive? Consider if there is any alignment
visit 7 unicefkidpower.org/learn-more between the values of both parties.
In partnership with Target, UNICEF is 2. How do you think Target will benefit from
also working to advance the well-being of fac- this partnership with UNICEF?
tory employees in Vietnam’s apparel and foot- 3. How does this partnership promote the
wear industry, impacting the lives of not only UNICEF brand and the Kid Power initia-
those workers, but their children and communi- tive?
6.5.5 Brand Placement popularity of the series. In I, Robot, though

the film is set in the future, Will Smith is seen
Brand placement—often referred to as “prod- receiving a pair of Converse and wearing
uct placement”—allows a brand to be these “vintage” (from the year the film was
included as part of a mass media programme made) shoes throughout the film. James Bond
in return for some consideration as a form of broke away from his usual tradition of having
advertisement (Karrh 1998). This is also a Martini and decided to go for Heineken in
referred to as embedded marketing by some Skyfall. While James Bond is associated with
scholars and brands. It is a strategic market- Aston Martin, Mini Cooper was integrated
ing method that is used to casually make into the Italian Job movie. It is important to
intended references to a certain brand, service note that brand placement is not just limited
or product. The logo or identity of a brand is to films and series; the brand can be placed in
mostly incorporated into another company’s any entertainment platform, including games,
website or work, such as a television pro- music videos and reality TV. Pepsi is famously
gramme, film, game, sport, music, album art placed on the judges’ table on X factor,
and so on. This is done with deliberate pro- whether they are thirsty or not, and strategi-
motional intent. This arrangement, often a cally placed with the logo facing the camera.
lucrative promotional arrangement between This is an effective brand placement that
marketers, producers and other creative pro- builds on the public’s interest in the pro-
fessionals (such as writers, actors or set gramme (Davtyan and Cunningham 2017).
designers) allows the brand to be strategically
positioned to attract the attention of the audi-
ence. It is considered as intentional incorpora- 6.5.6 Branded Content
tion of a brand into editorial content which
has a significant effect on the brand image While brand placement is included in editorial
(Van Reijmersdal et al. 2007). content, it sometimes has limited and con-
The fourth episode of Game of Thrones’ strued appearance, and there are possibilities
eighth and final season, “The Last of the for brand owners to create content solely for
Starks,” had an incongruous modern-day the integration of their brands (Lei et al. 2017;
Starbucks cup in the background. While this Gökerik et al. 2018). This content is funded or
might have been an error, it attracted a lot of outright produced by the brand owner to
attention for the Starbucks brand due to the showcase their brands. This is beyond product
placement as the brand is fully integrated, and brand: high level of visibility, rich set of
the story is about the brand. Dove’s Real potentially useful associations, credible in
Beauty Sketches campaign presents a drawing terms of expertise, trustworthiness, likability
collection of a series of women. Gil Zamora, and attractiveness. This is described as celeb-
an FBI Trained Forensic Artist drew two rity meaning transfer (McCracken 1986;
drawings of each woman, the first based on Mogaji 2018a).
their description of how they look: the other George Clooney, American actor, screen-
based on a stranger’s description. This was writer, producer, director and activist endorses
Dove’s effort to encourage women to celebrate Nespresso, and he has been featured in the
their beauty. This advert was not about selling integrated marketing campaign of that same
any specific product, but it became viral and brand. Recently Beyoncé started her clothing
created a positive attitude towards the brand. line, and she sent the clothes to other celebri-
The campaign has been watched over 68 mil- ties for them to endorse the products and
6 lion times on YouTube. share their videos. She partnered with Adidas
Likewise, Always released a short film by to create the products, but in this case, she is
filmmaker Lauren Greenfield, with the partnering with celebrities to endorse the
hashtag #LikeAGirl to keep girls’ confidence products. When the influencers share the
high during puberty and beyond. The film was brand on their profile page it gains more pub-
not about selling Always but integrating the licity and awareness. There are also a growing
brand and reminding viewers of how Always number of micro-influencers who may not
has been empowering girls globally, bringing have considerable followers to share the
puberty education to millions of adolescent brand, but they are very active. With this
girls. The film has been watched over 67 mil- arrangement, the influencers might get paid
lion times. In 2014, Audi released a short film for their efforts and the hashtag AD must be
titled The Heist for the grand opening of the used or influencers can be given the product
Audi Downtown Vancouver. While some (like Beyoncé gave out clothes) and are
films may feature an Audi in some of the expected to share the brand with their follow-
scenes, The Heist was all about Audi. ers. The amplification of these influencers
enhances the integration of the brand (Singh
et al. 2020). As consumers say they trust per-
6.5.7 Influencers sonal recommendations above traditional
advertising, there is a growing demand for
With the growing interest in social media and influencers who will work on brands.
digital marketing, an influencer is becoming
an essential strategy for brand integration
(Cuevas et al. 2020). It is, however, important 6.5.8 Employees
that the concept of influencers goes beyond
social media. It encompasses the idea of Brand integration can also go through the
endorsements for a product or services. This is route of the employees (Boukis and
somehow different from a brand partnership. Christodoulides 2020). King and Grace (2010)
The celebrity with a certain reputation does developed the Employee-Based Brand Equity
not necessarily get involved in the creation of (EBBE) model which recognises the role of
the products but solely endorses the product. employees in enhancing the brand’s equity.
An endorsement could be a celebrity being The staff engage with the brand and serve as
associated with a brand. A famous person can brand evangelists, conveying the identity of
draw attention to a brand and shape the per- the brand. Brand integration through them
ception of the brand under the inference that could be in the form of their uniform. When
consumers make based on their knowledge of Southwest Airline changed its logo, the uni-
the person. It is anticipated that perceptions form was changed and there were lapel pins
of the celebrity can be transferred to the for the staff as another form of integrating
135 6
.. Fig. 6.2 Proposed redesign of Enyimba Football Club brand identity on souvenirs. (Source: Olalekan Akinyele)
and creating awareness about the brand. to use and subsequently take away. Likewise,
Likewise, for Heart and Stroke Charity in there are pencils at IKEA, and even at hotels
Canada, the new identity was printed on the there are different souvenirs that bear the
uniform of the staff; importantly the uniform name of the hotel which customers are free
was also a red colour, which is one of the to take. Airlines are also fond of giving sou-
colour palettes of the charity. For a manufac- venirs with their names, logo and colours to
turing company like Nigeria’s Dangote travellers. Universities are not exempted from
Fertiliser, the name of the brand is printed on using these strategies—in the welcome pack
the helmet and the shirt. This strategy offers a to new students, they give them note pads,
platform for brand integration. These brands water bottles and power banks with the name
can afford not to put their identity on these of the university on it. Therefore, everywhere
employees’ uniforms, but why wouldn’t they these new students go, they will be carrying
do it? It is an opportunity to remind everyone, these identities with them and helping to
including fellow staff and other external disseminate the university’s brand identity
stakeholders about the identity of the brand. (. Fig. 6.2).
6.5.9 Souvenirs 6.5.10Mascot
These are another way of integrating brands. This is becoming an increasingly popular way
These souvenirs are given out freely BUT of physically representing a brand and inte-
with the brand name on them. At corporate grating the brand further. Brand characters
events and conferences, the souvenir bags are are ubiquitous in marketing (Hosany et al.
referred to as swag bags. It aligns more with 2013). These characters help build and
the idea of sponsorship, as the company has strengthen brand identity; they present an
paid for these souvenirs to be made, and they emotional connection with the audience and
are distributed so people carry on integrating can further help concretise and reproduce an
the brand. Often it is seen as a form of appre- organisation’s identity in an international
ciation from the brands, well appreciated by context (Cayla 2013). This mascot can be a
customers, and these souvenirs can go far and person, animal or object but often presented
wide to create further awareness for the brand in an anthropomorphic form, which attributes
that is giving the souvenirs to the people human traits, emotions or intentions to non-
(Morgan and Pritchard 2005). There is always human entities, like an animal. Sanrio’s iconic
a free pen at Barclays banks for customers character Hello Kitty, a cat notably with no
mouth but personifying cuteness and inno- have any live animal, to avoid ethnic stereo-
cence, Walt Disney’s Mickey Mouse and types and be very considerate. A brand must
Minnie Mouse and McDonald’s Ronald also ensure the mascot chosen represents the
McDonald are perfect examples of this brand brand and resonates with its general audience.
management technique.
Service providers also use a mascot as a
form of “tangiblising” their services—making 6.6 hose Is Responsible for Brand
W
them more tangible and physical (Mogaji Integration?
2018). Examples are Wilbur the penguin from
British Gas, Zingy from EDF Energy and the It is critical to recognise who is responsible for
Michelin (tyre) man These mascots are incor- brand integration. That person needs to coor-
porated into the TV advertisements, used as dinate, monitor and evaluate the process. As
memes on social media and are also offered as with any brand management process, the
6 soft toys and souvenirs. responsibility depends on the size and struc-
Mascots are among the most cherished ture of that brand. Often this will be the brand
traditions in sports, especially for universities owner or the brand manager.
and other sports clubs. These mascots can be
dogs, eagles, tigers or other animals, often pre-
sented in the colours of the brand; they are 6.6.1 Brand Owner/Brand Manager
visible during team activities and events.
Buckingham U. “Bucky” Badger, frequently The brand owner is the founder of the organ-
illustrated in a red and white striped sweater, isation or the owner of the business who is
is the official mascot of the University of still responsible for the day-to-day manage-
Wisconsin–Madison. It was first used in 1940, ment. Where the brand owner is still involved
and it attends all major sporting events for the in the running of the business, they can also
Wisconsin Badgers as well as hundreds of be the brand manager. This is often possible
other events around Wisconsin every year. for small and medium sized enterprises where
Manchester United’s official mascot since the founder owns the business and takes
1994 is Fred the Red. The name is pulled from responsibility for the sustainability of the
Manchester United’s nickname: The Red brand. The founder may be the one who
Devils. Wearing shirt number 55 it was voted develops the advertisements, orders the souve-
the most popular club mascot in Match nirs online and negotiates a sponsorship with
Magazine back in 2011. Fred dances for fans the local primary school.
ahead of matches to get folks in the mood for The responsibilities of the brand owner to
action. Arsenal also has a giant green dino- fully integrate the brand may be limited due to
saur called Gunnersaurus, it has been with the financial and human resources. However, the
club and entertaining the crowd since 1994. brand owner can still make an effort to inte-
Chelsea’s mascot is Stamford the Lion. The grate their brand by working with the little
lion was joined by Bridget, also a lion, in 2013 resources they have. This may include work-
and they went on international tour with the ing with micro-influencers to create branded
team. content or entering into a sponsorship
It is important to note that these mascots arrangement from an affordable category. In
become an integral part of the brand; they this case the logo might be small among the
bear the identity, including the colour and list of partners but it is still an opportunity to
personality of the brand. They offer a distinct integrate the brand. While a small brand may
and recognisable personality for the brand. want to compete with a bigger brand for
Their presence can be the start of a conversa- attention, it is essential to start small and
tion, bond and relationship with stakeholders. increase the amplification of the brand over
In choosing a mascot, it is essential not to time.
6.7 · When to Integrate
137 6
6.6.2 Employed Brand Manager yellow, red and blue striped look. The agency
further integrated these new brands across the
The brand owner may not necessarily be the board, including the airports, website, planes,
brand manager. The employed brand man- snack packaging and even lapel pins.
ager position applies mostly to a more estab- These consultants have the experience and
lished brand that can recruit an individual or resources to go about this task. While lack of
a team to manage the brand. The employed financial resources may prevent some brands
brand manager may be responsible for a prod- from using the services of brand consultants,
uct line or a bigger brand, and they are there are many cheaper and affordable alter-
expected to come up with ideas to integrate natives in the form of freelancers and small
the brand. The brand manager may have to boutique agencies. This, however, depends on
negotiate different offers to find the one that the size of the brand, the nature of the task
suits their brand. The brand manager may and the budget. Freelancers can be hired for a
also have to work with other stakeholders like low budget and they do not get any right to
movie producers for brand placement, event the designs or any work they do for the brand.
organisers for sponsorships and media plan- This makes it a better choice for small brands
ners to secure an advertising space. They are that cannot afford the high fees of most
also expected to evaluate these strategies and renowned brand management consultants.
understand how it has contributed to the
growth of their brand.
6.7 When to Integrate
6.6.3 Brand Management Brand integration is a process in the brand

Consultants management cycle. It can be a very demand-
ing process. It is worth exploring in this sec-
These are agencies and consulting firms that tion when it is necessary to integrate the
assist brand owners and employed brand brand, and whether this is something that
managers in their branding process. Brands should be done regularly.
may engage the service of these consultants to
assist in better integration of the brands.
Landor is a Branding Agency that worked 6.7.1 Continuously
with Sri Lanka’s government to provide a
compelling and unifying way of articulating Despite its demanding nature, brand integra-
the country’s distinct identity and experience tion should be carried out continuously. The
as one of the world’s fastest-growing tourism brand owners need to ensure that their brand
destinations. The agency developed and inte- is still relevant, distinguishable and available
grated identity for the country, which was for consumers. Brands should not stop adver-
focused more on targeting the right audiences. tising, engaging in corporate social responsi-
The work was launched in November 2018 at bility or partnering with different organisations
the World Trade Market, London’s presti- that may enhance their positioning and image.
gious international travel trade show. It is not surprising to see that Coca-Cola still
Lippincott was tasked with rebranding advertises every Christmas. It is not that the
Southwest Airline, uniting a fragmented visual world does not know about Coca-Cola, but
system and helping the airline connect with there is a need for continuous integration, to
two highly desirable segments: millennials and consistently present the brand and create an
business travellers. The agency changed the experience for the consumers. This effort
logo, introduced a new wordmark, dropped ensures that the brand remains in the memory
the plane from the logo and came up with of the consumer. The frequency of these strat-
a heart as its main symbol which now has a egies, however, may change. This is to ensure
that the budget is prudently spent, and con- association. This even becomes more impor-
sumers are not bombarded with boring and tant if the rebranding presents a brand iden-
unnecessary information. tity that is not hitherto known to the customer
base or a complete change from the original
design. In this case, advertisements and press
6.7.2 New Brand and Rebranding releases are an essential strategy to adopt.
Souvenirs, change in staff uniform and other
At the creation of a new brand, it is essential liveries are also needed to create awareness
to create awareness about it. This suggests about the new brand. As well as this, the
that brand integration is needed at the brand can send an email to the customers and
rebranding of a brand. A new look and feel other stakeholders to inform them of the
have been created, and the stakeholders need impending changes. Brand owners who feel
to be informed and made aware. This is impor- concerned about losing customers after
6 tant to ensure that the target audience gets to rebranding, may have to be strategic and pres-
know about the brand, and they can build the ent a gradual integration of the new brand.
Case Study 6.3: Sidian Bank
Sidian Bank is a full-service commercial bank new brand identity was designed by Zilojo. The
providing an array of financial services to indi- rebranding was announced, among many other
viduals and enterprises and has been a leading options, as a full-page advertisement in a news-
player in Kenya’s enterprise banking sector. paper. It was important for the brand to inte-
The bank, formerly known as K-rep Bank, has grate this new identity as it moved away from
its origins within K-rep Group, an investment the initial identity. There was a new name, new
vehicle which was established in 1984 as a proj- colour, new typeface. It was a complete change,
ect that supported the development of small and consumers needed to be made aware of
and micro enterprises through NGO-managed this.
programmes. In November 2014, Centum
Investment Company Limited acquired the zz Reflective Questions
majority shareholding of K-rep Bank, making 55 Why was it important for Sidian Bank to
it a subsidiary of Centum. In early 2016, the create a newspaper advertisement to
bank rebranded and adopted a new and fresh announce a change in their brand identity?
look brand named Sidian Bank. 55 Who are the stakeholders that need to be
This warranted a change in all the brand aware of Sidian Bank’s rebranding?
identities such as logo, typography, colour pal- 55 Why do you think they had to outsource
ette and this was reflected in their website, their brand identity to another company?
mobile application and branch designs. The Couldn’t they have designed it in-house?
6.7.3 Launching 6.7.4 Partnership and Initiatives
Brand integration also becomes necessary Brand integration is also important when,
when the brand is launching a new product or launching a new initiative, for example
an extension. This builds on marketing com- NatWest Bank’s Money Sense, a CSR initia-
munications for the new product. It becomes tive where they educate 5- to 18-year-old stu-
essential to reinforce the new brand as a dents on financial planning, Sainsbury’s
member of an existing brand which is well commitment to net zero emissions by 2040
recognised. and Sky’s commitment to net zero emissions
6.8 · Who Needs the Integration?
139 6
by 2030. These brands need to showcase what sary to understand the stakeholders, what
they are doing, and they are positioning them- they prioritise and the best way to effectively
selves as ethical brands mindful of society and engage with them Keep in mind that there are
the environment. At the same time, this offers different brands with different levels of expec-
the opportunity to integrate the brand. It is tation and resources to effectively integrate.
always good business practice to take pride in
the good that a brand is doing. It adds credi-
bility and improves reputation. It is, however, 6.8.1 Customers
important that this is in moderation. The
attention should be more on the activities and Importantly the consumers, including the
social good and less on the brand. prospective customers, need to be aware and
recognise the brand. The knowledge is essen-
tial at the point of purchase, for recommenda-
6.7.5 Scandals and Misconduct tion and future engagement. Brands need to
be aware of the customers’ needs, including
When a brand or its representatives perform the proper channel of communications before
below expectations, there are possibilities that integration. This understanding will also
the public will begin to have a negative percep- shape the type of integration strategy to
tion of the brand. The public may feel that the adopt. If the target audience is parents and
brand can no longer be trusted. This can children, partnering with the local primary
affect the credibility, reputation and value of school for the Christmas Fair may be a better
the organisation. After the global financial option than sponsoring an event in another
crisis of 2007–2008, banks understood that country. This understanding is essential for
their reputation had been damaged, people no strategic integration.
longer trusted banks; it was then necessary to
adopt emotionally appealing strategies to
engage with the consumers. Banks like 6.8.2 Competitors
NatWest did advertisements whereby they
acknowledged they had done wrong and apol- The competitors need to know that a new
ogised, recognising that banks should be sheriff is in town. This is an attempt to inte-
responsible for what they do, not just what grate the change in value proposition and ser-
they say. KFC also had to make a public apol- vice offering. It also sends a message to the
ogy when it had logistics problems and as a competitors’ consumers who might be look-
consequence there was no chicken in their ing for an alternative. These prospective cus-
stores. In the time of scandals and miscon- tomers are made aware of the changes the
duct, brands need to own up to their mistakes, brand is making and they should be invited on
take responsibility and reintegrate their board. This can also change the competitive
brands. It is essential to position the brand as landscape and may make other brands follow
one that has learnt lessons and is willing to suit in changing and repositioning their
change, to ensure that such a mistake does not brands.
repeat itself.
6.8.3 Colleagues
6.8 Who Needs the Integration?
Colleagues and employees need to be aware of
While integration is an essential part of the and carried along with the change. Through
brand management process, understanding their actions and relationship with the cus-
the direction of the integration is essential. tomers, they integrate the new brands.
This section explores the different possible Therefore, they need to be well trained before-
directions for integrating a brand. It is neces- hand in order to recognise and adopt the new
identities. This could mean wearing the new 6.9 Considerations for Brand
uniform, using the lapel pin and changing Integration
their email signature. No doubt there could be
some resentment and reluctance to change While brand integration is described as an
and adopt the new identity. The staff must, essential process of brand management, it is
however, be reassured of the importance of crucial to explore key considerations and how
integrating the identity through their deeds they relate to the brand owners and the type
and actions. of brands they may be working with. One size
does not necessarily fit all, and it is essential
for brand owners and managers to be aware
6.8.4 Regulators of these considerations and how they may
affect their business practices.
For some brands, it might be necessary for
6 regulators to be aware and reminded of the
new identity. It will be necessary to change the 6.9.1 Consistency
logo on the database or replace the name.
Updating this information goes towards Brand integration needs to be very consistent.
ensuring that the brand’s new identity is con- Brand guidelines are needed to ensure that the
sistent across all touchpoints (Mogaji et al. brand is integrated consistently across all
2020a, b). In some situations, a change to a channels. Practically this means that the brand
non-profit organisation’s mission may require identity that is presented in the advertisement
a notice to the organisation’s state of incorpo- is the same identity presented on the partner’s
ration and the internal revenue service. In press release when announcing the new part-
England, it is necessary to ask for permission nership and collaboration. This means that
from the Charity Commission to make a whatever media the brand is using or the kind
change to the charity’s identity if the govern- of partnership or collaboration they have
ing document requires that. In Scotland, if a developed, the same identity is integrated in
charity wants to change their purpose, they what the brand does at all times. In the case of
need to first seek the consent of the Office of rebranding as well, the new brand should be
the Scottish Charity Regulator (OSCR) while used, staff should be aware of the new
in Canada, the Canada Revenue Agency changes, consumers should be reminded of
(CRA) regulates the charity organisation. them as well.
6.8.5 Stakeholders 6.9.2 Shared Values

Brands need to engage and integrate their To integrate the brand, brand owners and
brands to other stakeholders as well. These managers may want to work with other
include those who will be working in one way brands in the form of sponsorship, partner-
or another with the brands. They include ship or collaboration. Any partnership signed
partners who may need to update the identity must be with brands that have the same inter-
in designing a new brochure, shareholders or ests and shared values. This is important to
even the press and media. This integration is avoid situations whereby a brand is brought
to ensure a consistent and coherent presenta- into disrepute because of the association
tion of the brand identity across the touch- with another brand. Brands must distance
points. themselves from any of their endorsers or
6.9 · Considerations for Brand Integration
141 6
ambassadors that have been involved in scan- they want to integrate their brands, they were
dals. In the cases of Tiger Woods, Maria mindful of not destroying the brand values
Sharapova and Lance Armstrong, many and image through bad associations with
brands terminated their partnerships. While another brand.
Case Study 6.4: LEGO and Shell
Lego, a prominent Danish toy company and how the palm oil industry is destroying
Shell, a prominent Dutch oil company, have Indonesia’s forests, threatening orangutans and
partnered together for over 50 years. Lego has the environment).
enjoyed distribution while Shell has received a The public outcry, protest and possible rep-
positive brand association. There was a con- utation damage has brought the Lego-Shell
nection between Lego’s race cars and Shell’s partnership to an end. The existing deal began
gas station sets which allowed Shell to build a in 2011, but the corporate relationship between
connection with drivers at a very young age. the brands stretches back to 1966. Jørgen Vig
The problem here, however, is the values and Knudstorp, the toy maker’s chief executive,
nature of the businesses are incongruent. Lego said Lego would honour its existing deal with
appeals to children while Shell’s activities are Shell, but “as things currently stand, we will
known to be affecting the environment and the not renew the contract with Shell when the
planet, destroying the future of these children. present contract ends.” This negative associa-
Greenpeace, a non-governmental environ- tion highlights an implication for a brand part-
mental organisation with a mission to defend nership, co-branding and co-creation. Some
the natural world and stand for a green and relationships may be thought to be completely
peaceful world, came into the picture. The inappropriate, and the aftermath can effectively
organisation uses non-violent, creative con- weaken the brands. If things do not go as
frontation to expose global environmental planned, it can have adverse effects on one or
problems. They released a widely watched and both brands.
shared YouTube video that criticised the part-
nership between these two brands. This video zz Reflective Questions
was very emotional depicting a Lego shell drill- 55 Why do you think it was important for
ing rig in a Lego arctic with the wildlife LEGO to terminate the partnership?
drowned by thick crude oil (supposedly from 55 How important is it for businesses and
Shell) with the rendition of The Lego Movie brand partners to have shared interests?
theme, “Everything is Awesome” as back- 55 How would you describe the brand integra-
ground music. (Greenpeace has also worked tion strategy of Greenpeace in this cam-
together with the UK retailer Iceland to address paign?
6.9.3 Congruency ers keep receiving it, but does it appeal to

them? The brand may need to re- examine
This aligns with the idea of shared values. their brand philosophy and brand position to
While shared values between the brand and understand the consumers’ perception of their
partners are essential, understanding the con- brand and see if there is something inherent in
gruency in relationships and engagement the brand that needs to be changed. Perhaps
between the brand and the customers is essen- there is something that an identity change and
tial (Mogaji and Danbury 2017). The question integration cannot resolve. It could be an issue
remains, do consumers believe the message with the brand’s foundation, positioning, core
they are receiving from the brand? The brand values and philosophy which does not reflect
may be integrating the message, the consum- what the consumers are experiencing.
6.9.4 Financial Limitations 6.9.6 Length and Extent

of Integration
For small or growing brands, the financial
limitations in fully integrating the brand need The brands need to be aware and understand
to be acknowledged. These brands may not the full extent of the integration strategy. This
be able to afford a full-page advertisement in knowledge is essential for effective planning,
the newspaper, a billboard advertisement or especially in the long- term. While working with
online campaigns targeting millions of pro- other brands, even though there are shared val-
spective customers. Brands need to be aware ues, the extent and expectations of the collabo-
of their budget and adopt a very prudent ration should be discussed and documented.
approach. This could mean starting small but This understanding allows for the evaluation
consistently. It could mean using a quarter and monitoring of the relationship. Each brand
page advert lasting for many weeks. What is knows what is expected of them, how long it is
6 being projected here is that the brand must expected, and the resources that they may have
make concerted efforts to ensure they get to invest in maintaining the integration.
their messages and intention out to other
people who might not really know what the
brand is doing at a point in time. Informing 6.9.7 Legal Implications
people about the brand does not have to be
expensive, but it must be consistent and rea- Brands need to be aware of legal implications
sonable. during their brand integration process. There
are possibilities of being subject to legal chal-
lenges and calls for restraint, particularly in
6.9.5 Shared Benefits cases where more vulnerable audience groups
are involved (McWilliams et al. 2006). For
The brand needs to be aware of the shared example, it would be inappropriate for a
benefits in its integration strategy. This is spe- tobacco brand to be integrated towards chil-
cifically for brand sponsorships, partnerships dren; the target audience should be above 18.
and collaboration. While a brand engaging in Likewise, brands need to consider the ethical
corporate social responsibility practices may implications of their strategies. They need to
not be interested in any financial returns, make sure that their brands are sponsoring
working in partnership with another brand ethical brands, partnering with ethical brands
needs to be of shared interest and present and engaging in activities that will not damage
shared benefits. The brands need to evaluate the reputation of the brand.
what they will be getting in return for the
sponsorship and collaboration. Could this be
just awareness for sponsoring the World Cup 6.10 Conclusion
or an increase in sales? There should be a ben-
efit for the brand before engaging in such an The brand has spent a considerable amount
arrangement. Associations should be evalu- of money and resources to develop their iden-
ated and if need be, terminated. In 2016, tity; it is, however, essential to integrate this
Chelsea Football Club and Adidas mutually brand identity. Just having a logo and other
agreed to terminate their existing partnership brand identity is not the end of branding. The
agreement prematurely (it was supposed to stakeholders must know about the product
end in June 2023 and instead ended in 2017). and be able to identify the brand. Brand inte-
Adidas had been sponsoring and supplying gration involves generating awareness, estab-
sportswear for Chelsea Football Club since lishing and promoting the brand using
2006. Adidas was compensated for the early strategies and tactics. These tactics include
termination of the contract. advertisements, celebrity endorsement, which
6.10 · Conclusion
143 6
can offer credibility in terms of expertise,
trustworthiness, likability and attractiveness the type of brand and the other con-
and sponsored events. straints.
Brand integration fits into the integrated 55 Brand integration becomes necessary at
marketing communications and brand man- rebranding, launching brand extensions
agement process. There are enormous benefits or after a scandal or crisis.
for the brands, and the consistent integration 55 Brands integration should be consistent
ensures that the brand remains highly visible across different touchpoints and media.
and recognisable, builds loyalty and the rela- 55 Brand integration should be with
tionship with customers. The role of the brand brands that have similar and shared
owners, brand managers and brand consul- benefits.
tants in developing and implementing these 55 The extent and length of the integration
brand integration strategies has also been dis- should be understood.
cussed. 55 Different brands will have to adopt dif-
Financial strength and human resources ferent integration strategies. Know your
may be limitations for some brands but brand brand. Know your stakeholders. No
integration is an important process of brand strategy fits all.
management that cannot be ignored. Perhaps
an attempt could be made at starting small,
working with micro-influencers, using quarter ► Student Activities
page advertisements and consistently integrat- 1. What is your understanding of brand inte-
ing the brand. Brand managers may also want gration?
to be strategic in partnering with other brands, 2. What is the relationship between brand
getting involved in charity and CSR practices. philosophy, brand identity and brand inte-
These activities give the needed awareness for gration?
the brand. Though some steps may be consid- 3. Why do you think you have not seen some
ered small, it is the effort that counts; the brands? What is limiting their integration?
quality of the integration will evolve. 4. How would you describe geographical
Importantly, brand managers need to keep in locations as a limitation for brand integ-
mind that collaboration for brand integration rity?
should be between brands that have shared 5. What other way do you think a brand can
values and interests. be integrated?
6. What is the role of a brand consultant in
the brand integration process?
Key Points 7. How do you think staff can aid the inte-
55 Brand integration is an essential part of gration of a new brand?
the brand management process. 8. How vital is brand integration towards the
55 Brand integration ensures that the competitors and their customers?
brand and its identities become more 9. Do you think it is crucial to further rein-
recognisable and distinguishable. tegrate the brand after misconduct by the
55 Brand managers need to be aware of CEO of the company? If so, what are the
different limitations that may affect implications?
their integration strategies. 10. If you were to have a mascot to integrate
55 Brand integration is the responsibility your brand, what would be the key fea-
of the brand owners and managers. tures?
Brand consultants may be invited to 11. What is the implication of partnership/
contribute and assist with the process. sponsorship termination on the brand’s
55 Brand integration should be a continu- image?
ous process. The frequency and inten- 12. How would you expect organisations with
sity may, however, vary depending on limited financial resources to integrate
their brands? ◄
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145 7
Brand in the Digital Era

Contents
7.2 Technology and the Digital Era – 147
7.3 Features of the Post-digital Era – 148

7.3.1 T echnology – 148
7.3.2 Access to Data – 148
7.3.3 Consumer Behaviour – 149
7.3.4 Disruptive Brands – 149
7.4 Engaging with Brands in the Digital Era – 150

7.4.1 hanging Consumer Behaviour – 150
C
7.4.2 Brand Options for Consumers – 150
7.4.3 Reliance on Technology – 151
7.4.4 Availability of Data – 151
7.4.5 Empowered Consumers – 152
7.5 Brand Management in the Digital Age – 153

7.5.1 ecognise Trends – 153
R
7.5.2 Evaluate the Brand – 154
7.5.3 Be Innovative – 154
7.5.4 Relevance – 154
7.5.5 Engaging – 155
References – 158

146 Chapter 7 · Brand in the Digital Era
Alex is pleased to share the metrics and ana- to recognise the prospects of digital technol-
lytics of the #AlexNewLogo hashtag. Many ogy in building their brand value. For those
people engaged, wanting to know more about who want to know more about Alex’s charity,
the charity. The friends are pleased, knowing they may need to access a website; therefore;
they used their digital channel and access on Alex is expected to provide a website which
social media to help Alex’s brand. Sam shares contains at least basic information about the
an experience where a social media influencer charity. Code needs to recognise the changing
worked with one of their brands to create behaviour of consumers as they engage with
more buzz about the product. It went well and technology and engage with their brand.
there were positive responses. Sam shares Someone, somewhere can send a tweet which
insight on sentiment analysis, a tool to help can have a negative effect on the reputation of
understand the value of collaboration, saying a brand. The brand managers need to be
that responses are mostly positive. Code, Sam aware of all these challenges and put mea-
and Alex all agreed on the use of social media sures in place. Trends are important—digital
to create attention for the brand. Code, how- innovations, social media, influencers, content
ever, adds that it should not just be attention, creation—all these are relevant for brands, no
but that being responsive to queries and matter their size or target audience.
engagement is essential too. While talking, a
message pops up about a mention of their
Overview
manufacturing brand on Twitter, urging a fol-
Digital channels and assets are becoming
low-up. Code works with a small company,
an integral part of business practices and
making it essential to interact with consumers
brands need to use them effectively to com-
using social media or messaging platforms to
municate and position their brands. Being
answer consumers’ queries. As evidenced from
digital requires being open to re-examining
their conversation, it is important for brands
7.2 · Technology and the Digital Era
147 7
your entire way of doing business. It is While it is still necessary to have a valued
essential to recognise that the basic princi- brand, well-positioned and grounded in ethi-
ples of brand management are still relevant, cal practices, in this digital era, there is more
but the presence of digital innovation is to brand management than that. Brand man-
shaping how these brands are managed. In agers need to recognise the implications of
this chapter we will explore brand manage- technology as they engage with consumers,
ment in the context of the digital age and other brands and other stakeholders. There is
look at how digital innovation is disrupting increasing competition for attention and con-
the meaning of a brand. We will also exam- sumers’ attention span is reducing. Brands
ine consumer behaviour, especially how need to remain relevant and keep up with
they engage with brands. In conclusion, these innovations.
there are some key brand management
strategies for brands in this digital age. The
technology is available; brand owners just
7.2 Technology and the Digital Era
need to harness these technologies to repo-
sition and develop their brands.
Technology and digital have become buzz-
words, and everyone is getting on board.
While this is true and relevant, it is essential to
? Key Question have a deeper understanding of these con-
How can digital channels and assets be cepts and how they shape brands and brand
used to communicate and position a brand? management. Irrespective of the size of a
brand, whether small or international, it is
n Learning Outcomes essential to examine how technology can be
At the conclusion of this chapter, you will incorporated to change the face of your busi-
be able to ness and engage with your customers.
55 explain the concepts of technology and Technology and digital devices are particu-
the digital era; larly helpful with regards to branding in the
55 describe the features of the digital era; business sectors. Technology has transformed
55 give examples of brands in the digital every area of human life and it is helping busi-
era; nesses grow (Huda 2019). Using technology in
55 recognise the idea of brand engagement branding of a business is something that man-
in the digital era; and agers have to do if they intend to have a place
55 describe brand management in the digi- in the minds of many consumers (Boukis
tal age. 2019). Technology is innovation aimed at
improving productivity (Kijek and Kijek
2019). Technology is the branch of science
7.1 Introduction that deals with machines, devices, robotics,
mechanics and so on. Many years ago,
Technology has changed and is changing the humans relied on horses for transportation,
way consumers engage with brands. There are but with technology, we had bicycles, cars and
lots of expectations for brands to participate now we have self-driving cars. Previously
more dynamically in this digital era. Consumer many people had Kodak cameras and had to
behaviour has changed, and likewise, brands replace the film. Nowadays, they have cam-
are expected to follow these trends and evolve eras on mobile phones to take pictures. The
their provision. Access to the internet, smart- function of camera, music player, voice
phones, social media and a vast volume of recorder, video recorders and many other
data are shaping brand management. Brand internet devices have been merged into a sin-
owners should not rest on their oars. They will gle portable device, the smartphone. This
become obsolete if they refuse to reposition shows how technology has evolved over the
themselves. years.
Kodak was famous for its camera, Sony mation freely and quickly. Goodwin (2016),
for the Walkman and Digital Audio Tape was however, describes three ages of digital. The
known for playing music. There were pagers pre-digital age was a time where devices had
and beepers, which were often used by emer- just one function; mid-digital was a period
gency services, doctors and safety personnel that straddles the age where digital was just
who needed to be reachable at all times. becoming accepted into the mainstream and
Likewise, there were fax machines. These were the age where digital was fully immersed into
brands that were previously well valued and our society, while post-digital is when digital
cherished and employed brand managers, but has become an integral part of society, and no
with the evolving technology, they have one thinks about it again. Digital recedes into
become obsolete. The invention of email, the the background. The post-digital era is, how-
internet and advances in computing technolo- ever, relevant in this context. This is a time
gies brought an end to the fax machine, the where technology is a way of life; its basics are
weight, durability and accessibility to mobile no longer innovative. Instead, brands are
phones brought an end to pagers and music building on this. Here are some features of
7 players. Technology is like a double-edged this post-digital era.
sword, as it makes some brands obsolete, it
creates new brands that need to be managed
and developed. 7.3.1 Technology
Digital, on the other hand, is a derivative
of technology. The digital output is depen- Smartphones, websites, search engines and
dent on technology. Technological advances social media shape how consumers engage in
enable us to ignore Kodak films and have dig- this post-digital era. The technology keeps
italised images through mobile phones. Digital improving, and consumers engage with
allows us to do away with the fax machine and brands. Banks allow customers to sign into
use a scanner to get a PDF file. Digital ensures their account through fingerprint or facial
that consumers engage with technologies to recognition. A shopper can now complete
share images (Instagram), to watch videos their transaction over social media networks.
(YouTube), to shop online (Amazon) and Brands can now be ordered through simple
connect with friends and family (Facebook). voice command. These technologies present
These advancements are shaping consumer opportunities for the brand to get closer to
behaviour and how we engage with brands. their customers.
Understanding the implications of this is
essential for brand managers. Technology will
continue to advance and brand managers
need to ensure that their brands follow the 7.3.2 Access to Data
trends and evolve with consumers; if not, they
will become obsolete. This digital era has opened opportunities for
data generation. In a day, according to
Raconteur (2019):
7.3 Features of the Post-digital Era 55 five hundred million tweets are sent,
55 two hundred ninety-four billion emails are
The digital era is characterised by technology sent,
which increases the speed and breadth of 55 four petabytes of data are created on
knowledge turnover within the economy and Facebook,
society (Shepherd 2004). This era, often 55 four terabytes of data are generated from
described as the information age, which each connected car,
started in the 1970s with the introduction of 55 sixty-five billion messages are sent on
the personal computer and subsequent tech- WhatsApp and
nology, provided the ability to transfer infor- 55 five billion searches are done.
7.3 · Features of the Post-digital Era
149 7
By 2025, it is estimated that 463 exabytes of 7.3.4 Disruptive Brands
data will be created each day globally—that is
the equivalent of 212,765,957 DVDs per day! The advancement of technology has also
The exponential growth of data is undisputed, brought about some business innovations that
it has been fuelled by Internet of Things (IoT) are challenging and shifting the norms of
and the use of connected devices. Brands now doing business (van Rensburg 2015). These
have access to a vast amount of data from dif- are not limited to products but also services
ferent touchpoints where they engage with like Uber disrupting the transport industry.
their consumers. These data can be processed Rent the Runway, the 10-million-member
using artificial intelligence and machine learn- wardrobe-for-rent retailer, is transforming
ing to make an informed business decision. fashion retail. Airbnb is changing real estate,
allowing homeowners an opportunity to rent
their homes and apartments. Netflix has also
7.3.3 Consumer Behaviour disrupted the streaming business. Advertising
and marketing are not exempted from this dis-
The way consumers behave is also continually ruption. There is a growing number of AdTech
evolving in this post-digital age (Indahingwati and MarTech agencies using technology to
et al. 2019). There is a rise of empowered con- understand the customers and developing cre-
sumers who can use their social media plat- ative ideas for brands. Likewise, there are
forms to shake a brand (Ukpabi et al. 2018; influencer marketing agencies like Tribe and
Mogaji 2016), Consumers can share tweets on Goat. These new brands have emerged from
social media that can affect the shares and the opportunities created through digital tech-
value of a brand (Mogaji et al. 2020a). nology (. Fig. 7.1).
Consumers can voice their opinions and con- As illustrated above, brands evolved with
cerns about brands through likes, comments digital technology. Brands that could not meet
and reviews. They are now willing to engage the growing needs of consumers became
with chatbots and virtual assistants and to do extinct. Examples are Kodak, Blackberry and
their banking online through apps and web- Klout. While there are still traditional brands,
sites. Consumer behaviour has changed as like in the automobile and banking sectors,
technology becomes more integrated into they have extended their brands and viability
daily activities. by partnering, acquiring or developing a chal-
.. Fig. 7.1 Conceptualising digital innovation in brand management. (Source: Author)

lenger brand. There are examples of car man- more sustainable and automated form of
ufacturers acquiring AI start-ups and banks driving. So, consumers’ behaviours and wants
creating challenger online mobile-only banks are rapidly changing and brands must be up
to engage with millennials who may want to to speed if they want to retain their users.
do their banking online. There are also the These changing behaviours have an impact
challenger brands that are challenging tradi- on brands. Some brands are losing out because
tional brands. Tesla is challenging the auto- consumers no longer find them relevant, while
mobile industry, Monzo and Judo are other brands are benefiting from these changes
challenging traditional bank brands. Lastly, because consumers are finding they meet their
there are technology brands that arose from needs. Another example is the ability to order
technological advances. Apple, Google and food online through Uber Eats or Deliveroo.
Amazon shaped their businesses with technol- Consumers do not need to leave their house to
ogy, providing products and services that meet get their meals. However, restaurants are
changing consumer behaviour. becoming empty because diners choose to eat
at home. These brands form an intermediary
7 between independent take-out food outlets
7.4 Engaging with Brands and customers. Consumers want to do things
in the Digital Era with ease in their own time, brands need to
recognise this and shape their business prac-
Artificial Intelligence and emerging technolo- tices to meet those needs. This could mean
gies are transforming modern business. McDonald’s or KFC partnering with Uber
Consumers are engaging with innovative Eats or Just Eat to deliver the burgers and
brands that meet their needs. These changes chicken fillets to their customers at home.
will accelerate over time, both consumers and
brands will further define their relationship,
and the level and intensity of engagement will 7.4.2 Brand Options for Consumers
also be redefined. From a brand management
point of view, it is essential to have knowledge With many brands trying to meet the needs
about the present level of commitment and of consumers, there are many options for
use this knowledge to plan for the challenges consumers to choose from. Samsung, Apple
that lie ahead. This section highlights the and Google are all promising innovative
implications of consumer engagement with products for consumers. Amazon Echo,
brands in today’s digital world. Apple HomePod and Google Home are smart
speakers competing for consumers’ attention.
TV streaming is becoming a crowded, com-
petitive landscape. With the launch of NBC/
7.4.1 Changing Consumer Comcast’s Peacock and AT&T’s HBO Max,
Behaviour in addition to Netflix, Amazon, Disney Plus
and Apple TV, consumers have more stream-
Brands cannot ignore changing consumer ing choices than ever.
behaviour. The basic needs might remain, but In social media networks, TikTok is a
the way consumers are meeting those needs growing social media platform for short-form
are changing. There is still a need to shop, but mobile videos. It is available in over 150 coun-
consumers increasingly prefer to buy online, tries and has over one billion users as of
presenting critical implications for retail February 2020. TikTok competes with Apps
stores on the high street. There is a still a like Snapchat and Instagram. With these
desire to read books and watch movies, but growing choices, consumers must decide
consumers are choosing to read e-books on which brands to use. It is not surprising to see
mobile devices and watch videos on demand. consumers deciding based on their values and
There is still the need to travel and move morals, especially around sustainability and
around, but consumers are considering a responsible consumption. This highlights
7.4 · Engaging with Brands in the Digital Era
151 7
implications for brand loyalty—with such a models in 2019. The Top three common key-
proliferation of offers, how can a brand ensure words in voice search phrases are “how,”
that their consumers remain loyal? Brands “what” and “best.”
need to recognise the possibility of consumers
switching to another brand as their loyalty is
now regularly tested. 7.4.4 Availability of Data
As consumers engage with brands, they leave

7.4.3 Reliance on Technology digital footprints. These footprints allow the
brands to have a better understanding of the
There is a growing reliance on technology for consumers. A vast amount of data is being
consumers’ day to day activities (Mumuni generated due to the increased use of mobile
et al. 2019). The ways consumers use their devices, cloud computing and the internet.
devices to search for what they want to know, This has contributed to the significant devel-
do and buy, and where they want to go, are opment of Artificial Intelligence (AI), which
becoming smarter and more personalised. offers opportunities to enhance campaign cre-
Banking is now mostly done on mobile phones ation, planning, targeting, planning and eval-
and applications; consumers can shop online uation (Dwivedi et al. 2019).
and virtually try on the clothes. Google Maps When exploring opportunities for AI in
is becoming an integral part of the daily com- digital marketing, three key stakeholders can
mute. Consumers use an app to order food, do be identified (Mogaji et al. 2020c). Firstly, the
laundry and get a taxi. It is believed that brands which need to understand their cus-
brands do their work faster and reach their tomers and communicate with them on a very
brand users quicker when they use technol- personal and emotional level. Secondly, the
ogy. Hence, brands should always use new advertisers and marketing agencies that are
technology to their advantage. responsible for digital marketing strategies
This vast reliance on technology is further need to consider AI as they are also major
shaping how brands are positioning them- players. They need AI to bridge the gap
selves to become more viable. Brands like between the brands, the customers and data
Google nest which have smart home products (Dwivedi et al. 2019). Thirdly, the customers
like voice control of heating and lighting, are who need to engage with the brands’ market-
positioning themselves to appeal to consuming communications. They are the recipients
ers who want to engage with brands in a digi- of the information and the generators of the
tal world. Facebook has developed the Portal+ data which is being used for targeting.
integrating their messenger and WhatsApp to Data is essential in understanding the cus-
allow Smart video calling. In addition, the tomers and their journeys, and in developing
hardware will enable owners to listen to music, the advertising campaigns (Mogaji et al.
check their front door and display their favou- 2020b). However, there are challenges for col-
rite photos. Voice search is a method that is lecting and using the data, especially consider-
rapidly gaining momentum, offering consuming the European Union’s General Data
ers a hands-free way to access local business Protection Regulation (GDPR). Consumers
information in their cars. According to are being mindful of how they give out their
Uberall (2019), more than one in five people data and how brands are collecting the data.
in the United States is using voice search and This highlights implications for ethical collec-
48% of voice search users have searched for tion and use of customers’ data by the brands.
local business information. The Echo Dot was The available data also includes user-
crowned as the best-selling product on generated contents that are shared on social
Amazon in the 2018 holiday season. Google media. There are possibilities of extracting
sold more than eight million Google Home this information—text mining and natural
language processing (NLP) to understand Consumers can instantly make their concerns
what consumers are saying about brands. known about brands and share them on social
There are opportunities for sentiment analysis media platforms. Likewise, consumers can use
and brand mention analysis. AI algorithms this platform to create awareness and enhance
can access the data to give accurate recom- the positive narrative about a brand.
mendations and information about relevant Consumers are now empowered to inform
products or services. The data is readily avail- other consumers about the quality of a prod-
able, brands must, however, know how to eth- uct or service through various reviews, rank-
ically collect the data and analyse it to make a ing and feedback. It’s possible to leave a
business decision. comment on a public social media post.
Customers comment on sites like Trip Advisor
or Google review to inform other customers
7.4.5 Empowered Consumers about brands. Brands can no longer deceive
customers, and there is a need for more trans-
Consumers now have greater control over the parency. Consumers can ask brands ques-
7 level of engagement with brands. Social media tions, and if the brands do not give appropriate
has further empowered consumers as they answers, consumers can take their business
engage with brands (Yuksel et al. 2016). away.
Case Study 7.1: Dave Carroll and United Airlines
Canadian country and western singer Dave of goodwill, but it did not do much to contain
Carroll and his band, Sons of Maxwell, trav- the damage.
elled on United Airlines. Dave Carroll found In May 2012, Carroll published a book,
that his Taylor acoustic guitar had been dam- United Breaks Guitars: The Power of One
aged by baggage handlers at Chicago’s O’Hare Voice in the Age of Social Media, detailing his
airport. Dave Carroll asked for compensation, experiences. Carroll further released two more
but the airline refused, so the band made a song songs on that experience.
titled “United Breaks Guitars” to chronicle the 7 https://www.youtube.com/watch?v=5Y
real-life experience of how his guitar was bro- Gc4zOqozo&feature=youtu.be
ken, naming and shaming the airline in a
YouTube video. zz Reflective Questions
The music video became an internet sensa- 55 How do you think United Airlines could
tion and received a lot of media coverage. It have better handled the situation?
was described as complaining without yelling. 55 Considering this happened 10 years ago
United Airlines had to contact Carroll saying it and got such a huge response, how do you
hoped to right the wrong. The video became think this would have affected United Air-
one of the top ten viral videos in 2009, and you lines in this social media age?
can imagine what that might have done to the 55 Would you write a song to complain to a
reputation and value of United Airlines. The brand?
airline, however, later donated $3000 to the 55 What other creative ways could you com-
Thelonious Monk Institute of Jazz as a gesture plain to a brand?
7.5 · Brand Management in the Digital Age
153 7
7.5 Brand Management 55 What is the brand’s interest in Robotic
in the Digital Age Process Automation (RPA), and how can
it be used to enhance consumer engage-
So far, we have looked at the implications of ment? It’s necessary to bring the brand in
technology and digital media for brands, and line with the technology that consumers
how brands have had to change their business want to use.
practices to remain relevant. We’ve also 55 With the increasing amount of data, what
looked at consumer engagement with a brand will be the implications of AI and machine
in the digital era; consumers want to do things learning for the brand? Will there be a
in comfort and in their own time. They need need to invest in data analytics or instead
brands which can meet those needs. These partner with technology start-ups to posi-
changing behaviours, coupled with the tion the brand for commercial viability?
advancement of technology, present critical 55 What are the implications of digital pri-
implications for brand managers. Specifically, vacy? The GDPR is in force, and there are
how to manage their brands in this dynamic, growing calls in the United States to
competitive and digitally driven business envi- impose controls on technology companies.
ronment. The global market is changing rap- Consumers are guarding their privacy jeal-
idly, to conduct business is getting more ously, and when consumers are no longer
complicated, and this is not just limited to big willing to share their information, there
brands but also charity organisations and will be an implication for AI (which relies
start-ups. There are challenges, and brand on data) and other automating strategies.
owners need to take responsibility to prepare 55 What are the trends in using social media
and position their brands for the future. This for consumer engagement? It is more than
section contains an action plan for brand just posting content and replying to com-
managers to consider. ments. Could there be possibilities of co-
creating of products and services and
financial transactions on social media?
7.5.1 Recognise Trends 55 The brand managers need to also recog-
nise the trends in consumer behaviour. For
The brand manager needs to be able to recog- example, a charity organisation might
nise trends in the industry that may influence consider why donors are not donating
their brands: money. How can they donate? Do they
55 The presence of 5G will accelerate engage with volunteers asking for a dona-
advancements in the smart home, smart tion on the street? Or can they use technol-
city, smart vehicle, smart manufacturing ogy by making contributions on the
and many internet-enabled devices that website using PayPal?
will benefit from a fast internet connec-
tion. How will 5G and fast internet access Brand managers may have to carry out
affect business? research to understand and be aware of these
55 Brands need to start considering how this trends. The analysis of data across touch-
fast access to the internet will enhance points can also give an insight into how con-
consumer engagement, perhaps using consumer behaviour is changing. Brand managers
versational AI through a chatbot and vir- may also subscribe to research companies that
tual assistants. provide information on these trends and mar-
ket insights. This understanding is needed to 7.5.3 Be Innovative

prepare the organisation for whatever comes
next. For brands that have evaluated their position
and feel comfortable they can survive the digi-
tal age, it is essential not to rest on their oars.
7.5.2 Evaluate the Brand The market landscape is very competitive, and
brands must be innovative to remain relevant
With knowledge of the trends, the brand (Gözükara and Çolakoğlu 2016). This has not
manager needs to evaluate their brand and see been an easy feat, even for big global technol-
if it is well-positioned for the future (Dwivedi ogy brands.
et al. 2019). This may involve modifying the Google+ was a social network owned and
brand philosophy and core values to address operated by Google. The network was
the new direction for the business. The brand launched on 28 June 2011 to challenge other
may have changed their service provisions, social networks but it was shut down for good
and this may require a new customer charter, on 2 April 2019. Google said the site was
7 mission and vision statement. The brand eval- closed “due to low usage and challenges
uation should reveal areas of the business that involved in maintaining a successful product
digital transformation may affect. These that meets consumers’ expectations.”
areas, however, vary for each brand operating Ping was launched on 1 September 2010,
in a different sector. The way digital transfor- as part of iTunes by Apple. Steve Jobs
mation will change a multinational company described it as a “sort of like Facebook and
will be different from how it will affect a char- Twitter meet iTunes. It’s a social network all
ity organisation. For some brands, it could be about music.” The social network was
about integrating trust into business decision- endorsed by Coldplay and Lady Gaga.
making around managing data or protecting However, Ping ended up not being a sustain-
privacy, while for some other brands, it could able product for Apple, and the network was
be bridging the physical and digital compo- formally taken offline on 30 September 2012,
nents of their business. just over 2 years after its launch.
The most important reason for this evalu- These failures have not stopped these com-
ation is, however, to be better prepared and panies from being innovative and developing
see what needs to be done to improve and products that are becoming an integral part
position the brand. This may mean recruiting of customers’ lives. Brands must find ways of
more staff with the required technical skills. It using technology to enhance their service
may mean acquiring another company or delivery and engagement, this may involve
partnering with another company that may investing in chatbots and virtual assistants,
help fill that gap. Likewise, in evaluation, there allowing payments online and using robots
are possibilities of creating a different brand for transportation and other automated tasks.
as seen with traditional bank brands that are
creating challenger bank brands. They have
recognised that the banking landscape is 7.5.4 Relevance
changing and to be better prepared, they must
invest in developing a new brand. This evalua- In this digital age, many companies will be
tion can also be integrated into the brand scrambling for consumers’ attention. To break
audit to critically examine where the brand these competitive clusters, brands must be rel-
stands considering the advancement in tech- evant to the consumers. Consumers are
nology and digital media. Some hard business engaging with chatbots and robotics, brands
decisions may have to be taken, which can should not be left behind. This could also
include being acquired by another brand involve changing logos and refreshing to
which is better positioned to succeed in the remain relevant. Google, eBay, Microsoft,
market. YouTube and Durex have all changed their
7.5 · Brand Management in the Digital Age
155 7
logos in the last decade to a flat and modern Brands may consider the idea of user-
visual element that can be used and integrated generated content where they share photos
across different platforms. and posts that the customers have created for
Consumers’ expectations are high, they the brand (Roma and Aloini 2019). Brands
want a reply to their tweet as soon as possible, can ask consumers to post pictures and tag
they want to get their orders as quickly as pos- the post with the brand’s social media handle
sible, and therefore brands that are not meet- to be featured or use a hashtag. This builds
ing these needs are becoming irrelevant to the engagement with customers as it encourages
fast economy. Consumers are mindful of the consumers to submit their own content
trends, and any brand not conforming to stan- directly to the brand and builds a community
dards will be left behind. This, however, does of brand evangelists around the brand.
not exclude a brand from being unique in its Brands can also use the information to deliver
relevance. There are many smart speakers out tailored experiences and offerings based on
there, but each brand is making an effort to their habits and behaviours. This personalisa-
stand out through other product integration tion could be in the form of email messaging,
and partnership. Alexa has been incorporated website homepage, search engine results, cam-
into the Facebook portal while Google paign landing pages and social media posts.
Assistance has been incorporated into Brands can also use humour to interact
Android phones. Bose Home Speaker has the with other brands on social media. This is
Google Assistant and Alexa built in. Brands often popular with Twitter, whereby brands
are staying relevant in this digital era by main- humorously reply to other brands. This cross-
taining industry standards and still partnering brand banter keeps social media abuzz, and
with other brands that can enhance their posi- consumers join in the excitement. Sprout
tion and commercial viability. Social Index found that 67% of consumers
surveyed stated that they like entertaining
social media content, and 55% of consumers
7.5.5 Engaging reported that they are most likely to share
engaging content (Sprout 2020).
Brands should be ready to take along their While brands can use social media to col-
customers in whatever they intend to do. They lect user-generated content, on the flipside
should ensure their wants and desires are they need to be aware that consumers are now
taken into consideration. Brands should be more empowered to use their platform as an
able to engage with their customers on a more avenue for electronic word of mouth, with the
personal level, creating advertisements that possibility of sharing their bad experiences
appeal to individuals. Websites should be which may inadvertently go viral to the detri-
responsive and brands should be accessible on ment of the brand. Therefore, brands must
different media. Front line staff on social ensure that they monitor their brand men-
media should be ready to meet growing con- tions and act accordingly to concerns that are
sumer desire to engage with brands in that being raised. With data being generated from
way. Social media will continue to be an inte- different touchpoints, brands can use this to
gral part of brand communications in the further build and develop engagement with
digital era. Integration of chatbots and virtual the customers. This could be in the form of
assistants into social media should be recommendations and customised coupons
explored. Likewise, cross-channel marketing and sales offers.
or multi-channel marketing which uses multi- As a form of engagement, brands are using
ple channels to reach an audience can also social media influencers. Influencer marketing
enhance brand engagement on social media. has grown exponentially over the last few years.
Instagram shopping and Facebook Chatbot Some agencies work with brands to source
Marketing offer opportunities for brands to influencers for their campaigns. Tribe connects
sell and further build a relationship with their content creators with the brand. The platform
customers. allows creators to access live campaigns and
get paid to promote the products they already Likewise, authenticity should be encouraged.
use and love. The downsides of influencers, It is not just about posting pictures with a
however, should be recognised. The influencer brand but communicating the brand message
must share the same values as the brand. and influencing others to use the products.
Case Study 7.2: Yorkshire Tea
On Friday, 21 February 2020, the UK The brand concluded that “for anyone
Chancellor Rishi Sunak shared a photo of about to vent their rage online, even to a com-
himself on Twitter, holding a bumper Yorkshire pany—please remember there’s a human on the
Tea pack of 1040 teabags appearing to make a other end of it and try to be kind.” This high-
huge tea round for his Treasury staff. Yorkshire lights how empowered the consumers were to be
Tea received a lot of condemnation as people able to drag a brand through the mud on social
thought the brand had been endorsed by the media for a picture they were not associated
politician. with. The negative comments became viral to
7 People were tweeting about their discontent the detriment of the brand and the social media
with the arrangement and vowing to boycott team had to respond to take control of the situ-
the product. Yorkshire Tea politely asked peo- ation, even though there was little they could do
ple not to abuse them for a photo they had as consumers were willing to hold on to the lies.
nothing to do with and said that people of all This gives an example of brands managing bad
political stripes like their tea. The brand publicity gone viral on social media.
tweeted “We’ve spent the last three days
answering furious accusations and boycott zz Reflective Questions
calls. For some, our tea just being drunk by 55 Do you think Yorkshire Tea responded well
someone they do not like means it is forever to the situation?
tainted, and they’ve made sure we know it.” 55 How would you expect a brand to react
They went on to say that “It’s been pretty when caught up in a negative social media
shocking to see the determination some have storm?
had to drag us into a political mudfight. But it 55 Is it important for other tea brands like PG
has been lovely to see others speak up for us— tips and Twinings to show solidarity with
we are so grateful to everyone who has done Yorkshire Tea during their social media
that in a civil way.” troubles?
7.6 Conclusion are now empowered and can engage on a dif-

ferent level with the brands. This evolving
Brands will always engage with consumers. engagement is, however, shaping brand man-
This was the case before the digital era, and it agement principles. The brand still needs to
will continue after the digital age. The key have its core objectives and philosophy, but it
thing that will change, however, is the level must align with technology and digital
and intensity of engagement. As illustrated in advancements. Brands need to be innovative
the figure below, this era has seen consumers and remain relevant even as they engage with
change their behaviour as they engage with the customers. The business landscape is get-
brands. Consumers have options to choose ting crowded and competitive, and digitally
from different brands as they rely more on driven, brands must evolve their business
technology. When a brand disappoints, cus- practices in order to remain relevant and com-
tomers will not hesitate to switch their loyalty mercially viable (. Fig. 7.2).
and go for another brand that aligns with A brand needs to recognise the impact of
their philosophy and needs. The customers technology on their business and put actions
7.6 · Conclusion
157 7
.. Fig. 7.2 Brand-consumer engagement in digital era. (Source: Author)
in place to mitigate this, for example carry-

ing out research to understand the trends, Key Points
investing in human resources, acquiring other 55 Digital technology is changing the busi-
companies or working in partnership with ness landscape with implications for the
brands that have the skills set and expertise. viability of brands.
Importantly, brands need to use technology 55 Brands need to recognise the impact of
to enhance their business. This is not limited technology in their domain.
to social media but exploring the possibilities 55 Brands should evaluate their brands
of artificial intelligence, voice-enabled search, and decide on how to mitigate against
chatbots and robotics. Brand owners need to the effects of digital technology.
evaluate their brands to see where they may 55 The brand will have to evolve in order
make the necessary changes and use the new to remain relevant in the digital era—
technology. this may involve recruitment, partner-
The basic principles of branding such as ing, mergers and acquisitions.
brand ethics, brand philosophy, brand posi- 55 Basic branding principles like ethics,
tion and identity have not changed. They do philosophy, core values and identity are
however need to be explored in the context of still relevant. However, they need to be
digital technology and consumer behaviour. interpreted in the context of the
Ethical considerations are still important dynamic, competitive data-driven mar-
when brands are collecting and using custom- ketplace.
ers’ personal data. Brand philosophy can be
changed to reflect the new direction of the
company; a new vision could also be set to
recognise the influence of technology. A brand ► Student Activities
can use technology to design and develop 1. How would you describe a digital brand?
their brand identity as well. The brand will 2. What are the implications of digital tech-
keep engaging, managers will likewise keep nology in brand development?
managing the brands, albeit in a competitive 3. How does consumers’ changing behaviour
data-driven market. impact brand sustainability?
4. What are the features of disruptive and sis of tweets. Journal of Consumer Behaviour.
challenger brands? What makes them https://doi.org/10.1002/cb.1820.
Mogaji, E., S. Olaleye, and D. Ukpabi. 2020b. Using AI
unique?
to personalise emotionally appealing advertisement.
5. What is the impact of AI, Big Data and In Digital and social media marketing. Advances in
machine learning on brand management? ◄ theory and practice of emerging markets, ed. N. Rana
et al., 137–150. Cham: Springer.
Mogaji, E., T. Soetan, and T. Kieu. 2020c. The implica-
tions of artificial intelligence on the digital market-
References ing of financial services to vulnerable customers.
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2020.
Roma, P., and D. Aloini. 2019. How does brand-related
2019.08.002. user-generated content differ across social media?
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Gözükara, I., and N. Çolakoğlu. 2016. A research on Global.
generation Y students: Brand innovation, brand Sprout. 2020. #BrandsGetReal: Championing change in
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603–611. social-media/. Accessed 8 Aug 2020.
Huda, M. 2019. Empowering application strategy in the Uberall. 2019. Are you ready for the voice search revolu-
technology adoption: Insights from professional tion? https://uberall.com/en-gb/solutions/objectives/
and ethical engagement. Journal of Science and voice-search. Accessed 8 Aug 2020.
Technology Policy Management 10 (1): 172–192. Ukpabi, D., S. Olaleye, E. Mogaji, and H. Karjaluoto.
Indahingwati, A., A. Launtu, H. Tamsah, A. Firman, 2018. Insights into online reviews of hotel service
A. Putra, and A. Aswari. 2019. How digital technol- attributes: A cross-national study of selected coun-
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Cogent Business & Management 3 (1): 1177906. as complementary consumption: The relationship
Mogaji, E., J. Balakrishnan, and T. Kieu. 2020a. between consumer empowerment and social inter-
Examining consumer behaviour in the UK energy actions in experiential and informative contexts.
sector through the sentimental and thematic analy- Journal of Consumer Marketing 33 (2): 111–123.
159 8
Brand Equity
Contents
8.2 What Is Brand Equity? – 162
8.3 Building Brand Equity – 164

8.3.1 rand Awareness—Who Knows the Brand? – 164
B
8.3.2 Brand Loyalty—How Committed Are Those
Who Know the Brand? – 164
8.3.3 Perceived Quality—How Is the Brand’s Quality
Perceived? – 165
8.3.4 Brand Association—What Is Our Brand
Associated With? – 165
8.3.5 Enterprise Assets—What Are the Intellectual
Properties of the Brand? – 166
8.4 Importance of Brand Valuation – 167

8.4.1 uantify – 167
Q
8.4.2 Evaluation – 168
8.4.3 Direction – 168
8.4.4 Investment – 168
8.4.5 Visibility – 168
8.5 Measuring Brand Equity – 169

8.5.1 randZ – 170
B
8.5.2 Interbrand – 171
8.5.3 Brand Finance – 172
8.5.4 Brand Asset Valuator – 173
8.5.5 Part 1—New or Unfocused – 174
8.5.6 Part 2—Niche or Unrealised – 174
8.5.7 Part 3—Momentum Leadership – 174
8.5.8 Part 4—Mass Market – 174
8.5.9 Part 5—Eroding Brand – 174

8.6 Considerations – 174
8.6.1 uild the Equity – 174
B
8.6.2 Brand Valuation May Not Be Necessary – 175
8.6.3 Brand Overvaluation – 175
8.6.4 Data Source for Valuation – 175
8.6.5 Country of Origin – 176
8.6.6 Brand Communication – 177
8.6.7 Digital and Social Media – 177
8.6.8 Human Brand Equity – 177
References – 179
Brand Equity
161 8
Sam sends a text message to their friends, tell- to increase the value of brand. The type of
ing them the good news from work. Sam association and partnership can also raise the
knows they all share an interest in branding value of a brand. Brand owners and managers
and brand management and believes they will need to do a lot of things to build the value of
be interested in the update too. Forbes just their brand, which includes creating aware-
released a list of the most valued brands in the ness (#AlexNewLogo), enhancing customer
world, and their brand is one of the top 100, experience to build loyalty (Code’s fruit juice)
which is an external validation of their contri- and building associations and partnerships
bution towards the large brand-shared goal. with other brands (Sam’s multinational
Alex does not understand why this is big news brand). The more people see and like the
and asks Code for an explanation. Code tells brand, the more they are willing to contribute
them how brands try to shape how customers and the greater the value of the brand. In the
think and feel about their product. They give case of Alex, it means more people donating
the example of the tweet Code got and had to money to the charity.
follow up, and it was all about enhancing the
experience of the customers and making sure
Overview
they feel associated with the brand. This is
Brands need to be built and managed to
essential, as more positive attitudes towards
ensure their long-term sustainability. There
the brand make it more valuable. Sam then
are ongoing activities to innovate, build
explains further, using the case of their char-
trust in the brand, integrate identities and
ity, highlighting Alex’s effort to be different,
effectively communicate with stakeholders.
and bringing Code in as a partner, which got
This built-up brand becomes valuable and a
the #AlexNewLogo trending. The brand
large part of the intangible assets of a com-
promises, identity and integration all add up
162 Chapter 8 · Brand Equity
tively communicate with stakeholders. This

pany. Understanding the worth and value built-up brand becomes valuable and a large
of this intangible offer is essential, at least part of the intangible assets of a company.
from a management point of view, to justify Understanding the worth and value of this
and evaluate the investment in building and intangible offer is essential to justify and eval-
developing the brand. The economic conse- uate the investment in building and develop-
quences of brand management can be dif- ing the brand. The economic consequences of
ficult to establish, suggesting the need for a brand management are often difficult to
quantitative and rigorous approach towards establish, suggesting the need for a quantita-
brand evaluation. Building on previous tive and rigorous approach towards brand
concepts of branding, in this chapter we evaluation.
explore the concept of brand equity and its You know how much it will cost you to
importance for brands, brand managers buy an Apple product, let’s say an iPhone 11,
and other stakeholders. In addition, we will but do you know how much it will cost to buy
look at four different brand valuation mod- the Apple Brand? Likewise, you know how
els, and the impact of different methodolo- much it will cost to buy a Big Mac, but can
gies and market and economic research on you imagine the cost of the McDonald’s
the inconsistencies across these models. We Brand? The value of a brand depends on
8 will conclude with key considerations for many factors and not just their product or
brand equity, especially as it relates to physical inventory. Brands that have been
brand managers of charities and smaller built over the years acquire many inherent val-
brands. ues that are beyond their financial records.
The fact that consumers are aware of a brand
makes it more valuable than an unfamiliar
? Key Question brand.
What is the financial and non-financial This idea of valuation is the bedrock of
value of a brand? brand equity, which highlights the financial
and non-financial value of a brand. Brands
n Learning Outcomes with high equity are well recognised, innova-
At the conclusion of this chapter, you will tive and have remained relevant over the years.
be able to Understanding the equity of the brand is
55 explain the concepts of brand equity needed in planning, building and evaluating
and brand valuation; brand strategies over time; assessing acquisi-
55 identify the five keys sets of an asset for tions or helping with investment/trade-off
building brand equity; decisions. Brand positioning, ethical consider-
55 describe the importance of brand valuations, identity and integration are, however,
ation; still relevant as they all contribute to the
55 give examples of brand valuation meth- equity of a brand. While equity can rise, like-
odologies; and wise, it can diminish when the brand is not
55 describe the implications of brand man- adequately managed.
agement for brand equity and valua-
tion.
8.2 What Is Brand Equity?
8.1 Introduction Brand equity is about the value of a brand,

the marketing and financial costs linked with
Brands need to be built and managed to a brand’s strength in the market, including
ensure their long-term sustainability. There actual proprietary brand assets, brand name
are ongoing activities to innovate, build trust awareness, brand loyalty, perceived brand
in the brand, integrate identities and effec- quality and brand associations (Pride and
8.2 · What Is Brand Equity?
163 8
Ferrell 2003, p. 299). This value can also be brand. The consumer and financial approaches
described as a strategic, subjective under- to brand equity are, however, complementary
standing of the brand’s worth or as a finan- and should be considered together.
cial, objective expression of the value of the To better describe this concept, David
brand (Heding et al. 2016). Aaker in Building Strong Brands provides a
This can also be further described as the unique insight into brand equity, He described
emotional and rational valuation of brands. brand equity as a “set of assets (and liabili-
The emotional valuation like the subjective ties) linked to a brand’s name and symbols that
understanding of brand equity recognises the adds to (or subtracts from) the value provided
consumers’ perception of the brand. This by a product or service to a firm and/or that
concept refers to how the consumer values the firm’s customers” (Aaker 1996, p. 7).
brand and why they are more likely to choose The keywords here are the brand’s name
that brand instead of another. The emotional and symbols, value, form and consumer. This
valuation refers to the value of the customers’ definition is graphically illustrated in
perceptions of the organisation. The rational . Fig. 8.1. The brand is what the consumer
valuation puts a figure on the brand; it is a engages with. This includes the brand identity
way of numerically and financially accounting in the form of visuals like logo or product
for the brand’s worth. So, we can say brand shape, brand integration through advertising
equity has to do with the commercial value of and sponsorships, innovative products and
a brand at a point in time. This commercial services and customer experiences. All these
value is acquired by a brand through percep- engagements provide value to the customers.
tion of brand users towards that brand—it They reinforce buying reasons, the emotional
means brand equity is the social value connection and attitude towards the brand.
acquired from how the users view and see the The consumers like the product, which was
brand name of a particular product or service, delivered with excellent customer service, and
rather than the product or service of that they, therefore perceive the brand as better
brand. than their competitors. These values can, thus,
Kapferer (2015) recognises that the cus- increase the value of the company.
tomers’ valuation is the preamble of the finan- It is important to also highlight that these
cial valuation. Brands can remain financially brand assets, which form the brand equity,
viable and increase their economic valuation can harm the brand. For a brand with no dis-
because they have created assets in the minds tinct identity, with little or no brand integra-
and hearts of their consumers. Basically, this tion and that has not been innovative with
suggests that when consumers like the brand product development and service delivery,
and they derive value from using the brand, it there are negative implications for the brand
contributes to the financial worth of the value. The consumer no longer wants to buy
Brand
Owner
Rational Valuation
Assets Brand Values
Brand Awareness Brand Identity The Buying Reasons

Brand
Brand ILoyalty Brand Intergration
Users
Perceived Quality Product and Services
Emotional Valuation
Brand Association Customer Experience
Proprietary Assests
. Fig. 8.1 Emotional and rational valuation of brand equity. (Source: Author)
the brand, the loyalty erodes, and this influ- 8.3.1 Brand Awareness—Who
ences the brand’s economic value. With fewer Knows the Brand?
people buying the product, the commercial
viability of the company is challenged, and The first dimension of distinguishing brand
they may end up folding. knowledge is brand awareness. It is related to
the strength of the brand node or traces in
memory, as reflected by consumers’ ability to
8.3 Building Brand Equity identify the brand under different conditions
(Rossiter and Percy 1987). Creating and main-
As earlier suggested, brand equity is a set of taining a brand identity is regarded as the first
assets. The major assets can be grouped into step towards building strong brands (Keller
five categories: brand awareness, brand loy- 2003; Aaker 1996). For a brand to increase its
alty, perceived quality, brand association and equity, the consumers must be aware of it.
other proprietary brand assets such as pat- Brand awareness explores if consumers have
ents, trademarks and consumer relationships. come across the brand, and if they recognise
Therefore, to build the equity of a brand, it, maybe from past exposure and whether it
brands must invest resources in developing stands out from many other alternatives. This
8 these assets and they must manage these
assets. These assets create value in a variety of
awareness brings consumers’ familiarity and
strong, favourable associations with the brand
different ways, and they need to be managed (Keller 2016). The recognition could also be
together. Brand managers need to be sensitive enabled by a dominant and recognisable iden-
to understand the constituents of each of tity like brand name, colour, product shape or
these assets and how they contribute to value taste; this means that consumers can recog-
building (Mogaji and Danbury 2017) nise the brand through various options. Aaker
(. Fig. 8.2). (1996) concludes that “the strongest brands
are managed not for general awareness but for
strategic awareness.” Awareness for its sake
may not be enough. Consumers have to be
Brand Brand aware of the brand for the right reasons.
Awareness Loyalty
8.3.2 Brand Loyalty—How

BRAND Committed Are Those Who
EQUITY Know the Brand?
Perceived Brand
Quality Association
The second component is consumer loyalty.
This means those who will go out of their way
Enterprise to choose the brand, those customers that will
Assets not accept an alternative but instead insist on
a brand. Having these loyal customers ensures
that there is increased sales and profit for the
brand (Shabbir et al. 2017). The loyalty of the
. Fig. 8.2 Five key assets that can be used to build customers can be a barrier for competitors. If
brand equity. (Adapted from Aaker (1996)) most of the market goes for a product because
8.3 · Building Brand Equity
165 8
they are loyal to it, it may be difficult for a new must be communicated to the consumers,
brand to enter the market. Aaker (1996) pre- Brands may have to use cues to nudge con-
sented the idea of loyalty segmentation. He sumers to recognise the quality and influence
argued that the market is divided into differ- the perception (Sierra et al. 2017). This could
ent groups reflecting their loyalty: non- be getting a form of endorsement, awards,
customers (those who will buy a competitor’s word of mouth or certification as an external
brand), price switchers (those who will buy form of validation for the product quality.
because of changes in price), the passively
loyal (those who will buy out of habit rather
than reason), fence-sitters (they are indiffer- 8.3.4 rand Association—What Is
B
ent and not loyal to any brand) and the com- Our Brand Associated With?
mitted (the loyal consumers) While the brand
is aiming to reach out to many prospective The way the brand identity is integrated
non-customers, or passively loyal, it is essen- shapes the brand association. Consumers
tial not to ignore the existing committed cus- might associate a brand with a particular
tomers, their loyalty needs to be appreciated attribute or feature, usage situation, the event
and rewarded. This could be through a that is being sponsored by the brand, logo,
frequent-buyers programme like Sainsbury’s product design or the influencer that is
Nectar or Air Miles invitations to participate involved in a social media campaign for the
in events and customised offers based on their brand. Chen (2017) defines brand association
interests. as customers’ memory and feeling when they
talk about those products, services or organ-
isations. Cheng-Hsui (2001) describes brand
8.3.3 erceived Quality—How Is
P association as the core asset for building sub-
the Brand’s Quality stantial brand equity though not sufficient
Perceived? alone. Studies have found that brand associa-
tion could result from the corporate image,
This can be very subtle as this will be relative product image, user image, lifestyle/personal-
to the individual. Perceived quality is consid- ity, product class or country/geographic area.
ered a significant driver of customer satisfac- Keller (1993) even suggests that brand associ-
tion and financial performance (Aaker 1996). ations can be classified into three major cate-
Often consumers base this quality perception gories of increasing scope: attributes, benefits
on their pre-existing knowledge of a similar and attitudes. While recognising these varying
service or product (Kim et al. 2018), on the opinions, Cheng-Hsui (2001) suggests cate-
country of origin—German engineering, gorising brand association into two types—
American innovation and Japanese quality. product associations and organisational
This perception, if good, will always be the associations. Product associations can be
critical influence in making a buying decision. divided into functional attribute associations
When consumers believe that all products (e.g. product attribute, perceived quality and
from a brand are good, they become more operational benefits) and non-functional
loyal and patronise the brand every time attribute associations (symbolic association,
because they have a perceived value which has emotional association, price/value and user/
grown to be accurate and they stick to it. Their usage situation). Organisational associations
perception about the quality of the brand can be grouped into corporate ability associa-
reflects a measure of goodness and goodwill tions and corporate social responsibility asso-
which the consumer feels towards the brand. ciations. These associations build a connection
While perceptions may be difficult to with the brand, they create the relationship
change, it is essential for brands to always between brand and users, and drive sales and
deliver quality products and services, and this profit.
8.3.5 nterprise Assets—What Are

E are to be protected and brands to enforce
the Intellectual Properties their rights. The creation of intellectual prop-
erty requires a considerable investment, as
of the Brand?
does its subsequent protection. Digital tech-
nology which has disrupted market places,
The ex-chairman of Quaker Oats, John
allowing brands to open stores without any
Stuart, once said: “If this business were split
physical store, use of social media and ease of
up, I would give you the land and bricks and
setting up websites has further necessitated
mortar, and I would take the brands and
the need for brands to enforce their rights to
trademarks, and I would fare better than

prevent dilution of the brand and ultimately
you.” The brands, trademark, industrial
retain brand value (Stobbs 2016). The trade-
designs and other objects of intellectual prop-
mark as assets can be sold, transferred or
erty protection are enterprise value within the
licensed. Auckland brewing company (DB
branded business that enhances the value of
Breweries) acquired the licensing rights for
the organisation. These assets create eco-
Kingfisher beer from Bangalore-based United
nomic benefits for the brand. This is where
Breweries.
marketing meets law. These enterprise assets
8 Case Study 8.1: Thomas Cook
Following the financial collapse of the Thomas tourism business building on the extensive
Cook group—the oldest name in world tour- brand awareness of Thomas Cook and the
ism—the brand closed all entities, entered com- robust growth momentum of Chinese out-
pulsory liquidation. The physical assets were bound tourism.” Thomas Cook (India) Ltd.
sold, and this included its airport slots at (TCIL), an Indian company owned by
London Gatwick (LGW) and Bristol Airport Canadian Fairfax Financial Holdings and fully
(BRS) which were sold and transferred to easy- independent from British Thomas Cook
Jet. The sale price was £36 million. This was Group, acquired the perpetual rights to use the
followed by the sale of key UK airport slots to Thomas Cook trademarks in India, Sri Lanka
7 Jet2.com. Hays Travel Limited acquired and Mauritius for a one-time payment of Rs.
Thomas Cook’s entire UK retail estate, a total 139 million (US$1.9 million). TCIL has been
of 555 stores around the United Kingdom. operating under a trademark licence agreement
Norwegian property tycoon Peter Stordalen since 2012 to use the Thomas Cook trademark.
and private equity firms Altor and TDR This highlights the value of the economic
Capital bought Thomas Cook’s Nordic busi- assets such as trademarks and brands. The
ness, also known as the Ving Group. It includes physical properties were also sold off, but the
brands such as Globetrotter, Spies and Thomas intangible assets appealed to some other organ-
Cook’s Scandinavian airline. isations. The acquisition of these brand names
With the physical elements sold off, there allows the new owner to license it and extend
was enormous potential for its enterprise assets. the brands into other countries or business lines.
Chinese conglomerate Fosun bought the brand The question is, how did they arrive at £11
name for £11 million. Fosun’s chairman Qian million for the brand name? This is the role of
Jiannong said the company “always believed in the brand valuators, to estimate and but a price
the brand value of Thomas Cook.” The deal, tag on the value of the brand.
which also includes hotel brands Casa Cook
and Cook’s Club, gives Fosun access to Thomas zz Reflective Question
Cook trademarks, websites, social media 55 Why do you think it makes business sense
accounts and software across most of the for Thomas Cook (India) Ltd. to acquire
world. He said: “The acquisition of the Thomas the perpetual rights to use the Thomas
Cook brand will enable the group to expand its Cook trademarks in India?
8.4 · Importance of Brand Valuation
167 8
8.4 Importance of Brand Valuation brands and the worth of their intangible cor-
porate assets. Brand owners may have landed
Paul Feldwick once asked if we really need properties, machinery and equipment that
brand equity, suggesting that it is an ambigu- adds to the value of their brands, but those
ous term that no one really understands are physical and tangible. Understanding
(Feldwick 1996a), He later argued that brand brand equity presents the economic values of
equity is necessary for three standard prac- the brand to the brand owner. It is essential to
tices which are: the total value of a brand as a remind ourselves about the distinction
separable asset when it is sold or included on between brand and brand owner. Google is a
a balance sheet (Brand Value); a measure of brand owned by Alphabet, likewise Android.
the strength of consumers’ attachment to a Google and Android (as brands) can be val-
brand (Brand Strength) and a description of ued, and this valuation adds to the overall
the association and beliefs the consumer has worth of Alphabet (the brand owner). This
about the brand (Brand Description) means that if Alphabet is calculating its assets,
(Feldwick 1996b). Aaker (2009) further pro- in addition to their corporate headquarters—
vides more justification for the need to under- the Googleplex in Mountain View, California,
stand the economic and non-economic value United States, the values of the brand (which
of brands. Aaker recognises that there are two includes customer relationships and trade
general motivations for studying brand equity. names), will be added.
First is the financially based motivation to In the preparation of consolidated
estimate the cost of a brand more precisely for financial statements in conformity with US
accounting purposes (in terms of asset valua- Generally Accepted Accounting Principles
tion for the balance sheet) or for a merger or (GAAP), organisations are expected to
acquisition. Second, it is from a strategy- make estimates and assumptions that affect
based motivation to improve marketing pro- the amounts reported and disclosed in the
ductivity and give more value to the brand financial statements. These organisations are
user. expected to evaluate and report the fair values
Research by PwC Germany— of their intangible assets and goodwill. These
Markenstudie 2019—in collaboration with estimates are based on historical experience
Hamburg University (PwC 2019) reveals and on various other assumptions and they
the following facts. Respondents named may use the services of brand valuators. These
the following as reasons to conduct brand valuations are, however, believed to be reason-
valuations: internal reporting (56%), M&A/ able, and the results of these form the basis for
transactions (42%), budgeting (39%), licens- making judgments about the values of assets
ing (35%), financial reporting (32%) and taxa- and liabilities of the organisation.
tion (29%). Almost half of the respondents The valuation of the brand as an intangi-
considered monetary brand valuation to be ble asset is relevant to other stakeholders,
very important (48%) and almost as many including investors, financial analysts, share-
(46%) have already carried out such a calcu- holders and C-suite executives to evaluate and
lation. With this background and growing compare brands and make faster and better-
interest in brand equity and valuation, we will informed decisions. This information becomes
look here at key benefits and values of brand relevant for mergers and acquisitions, licens-
equity for brand owners and brand managers. ing/royalty rate setting, tax valuations/trans-
fer pricing, balance sheet valuations and
asset-backed financing. C-suite executives
8.4.1 Quantify may also use this evaluation to understand
their brand strengths and weaknesses and
Brand equity presents metrics of evaluation transfer the understanding into strategies for
for brands. This allows brand owners and building brand equity and enhancing business
managers to quantify the worth of their growth.
8.4.2 Evaluation Executive Officer (CEO), Chief Financial

Officer (CFO), Chief Marketing Officer
Understanding the brand’s equity is essential (CMO) and Chief Information Officer (CIO))
for evaluating the brand and its contributions. to evaluate brand strategy options and direct
As brand equity looks beyond financial con- the brand for long-term sustainability.
tribution, it can provide insight into how con-
sumers are influenced to choose a brand over
others. This evaluation includes brand track- 8.4.4 Investment
ing, performance management, sponsorship
evaluations and senior management’s key per- The understanding of a brand’s equity is
formance indicators (KPIs). Brand equity essential for investment and raising funds.
evaluation can be used to manage the different This is relevant for investors deciding which
portfolios to see which brands are doing well brands to invest in or for companies looking
and influences resource allocation. The under- out for financing. Brand evaluation becomes
standing of customers’ emotional valuation an added document to justify investment in
can necessitate a strategic direction towards the business. This valuation can also be useful
premium pricing. The evaluation explores the in setting royalty rates for brands or licensing.
Brands can calculate the value created by their
8 market, competitors, consumers, financial
brand and use that to determine how much
data assessing the current performance of the
brand and identify areas for improvement. they can charge another company as a royalty
Based on the strength of its equity, the brand rate. This is when a brand/company is given a
can influence consumers to pay more for the temporary right to commercially exploit
brand over others—generating value share another person’s/company’s intellectual prop-
and profit. The strength of the brand’s equity erty (IP) right for a fee. Brand owners can use
can also ensure an increased volume and value licensing arrangements to break into new
share as the brand can influence the consum- markets. Disney Consumer Products has
ers to buy the brand more in future. licensed the Mickey Mouse brand and there is
growing integration of their superhero fran-
chises. Videocon in India has the licence for
8.4.3 Direction brands like Phillips, Kelvinator and Electrolux.
Understanding brand equity is important for

strategic planning to ensure the future influ- 8.4.5 Visibility
ence of the brand on business results. This
new strategic direction may be selling brands Brand valuation is also essential for the visi-
that are not contributing much to the com- bility of the brand. It allows the brand to
pany or acquiring new brands to position the showcase their success and achievements to
brand. The evaluation provides opportunities stakeholders, including shareholders, inves-
for brand positioning, brand architecture and tors and customers. The valuation also allows
brand extension. It supports strategic brand the marketing team to demonstrate and quan-
management by enabling the creation of a tify their accomplishments, taking into con-
long-term roadmap for the brand and the pri- sideration that brand equity can be seen as a
oritisation of activities with the highest busi- key performance indicator (KPI), members of
ness impact. Senior management with KPIs the marketing team can consider an increase
can discuss with their team and those jointly in investment as an opportunity to celebrate
responsible for building the brand (Chief their achievements.
8.5 · Measuring Brand Equity
169 8
Case Study 8.2: Interbrand
Before its initial public offer (IPO), a brand’s ing case studies, an analysis of the strength of
CEO and the management team came to the brand and how it worked to influence cus-
Interbrand, a global brand consultancy, for tomer purchase decisions, together with an
help with a unique challenge. It shared control understanding of the business model as well as
over its brand name and key visual brand assets industry and competitive trends. Working
with a third party who could technically revoke closely with the brand’s finance team,
their usage. As the IPO approached, the com- Interbrand developed a range of scenarios for
pany had entered negotiations with the third the potential business value at risk. Due to
party to clarify ownership of the brand and their sensitivity—and given the imminent IPO
ensure complete security over its future use. and the importance of the negotiations, the
Interbrand was asked to analyse five asser- valuation analysis and findings were rigor-
tions at the heart of the negotiations: ously scrutinised by the brand’s senior man-
1. Trust (among customers, public and agement.
employees) in the brand was high, and the Their analysis played a pivotal role in sup-
brand was highly distinctive in the business. porting the brand’s claim to full ownership
2. The brand was a business asset with signifi- control, and the CEO used the report to help
cant value, which made a sizeable contribu- support the company’s position during the
tion to the company’s business performance. negotiations. From a business perspective, the
3. Rebranding the business would be expen- IPO was successful and one of the most heavily
sive (especially with time constraints). subscribed listings of the year.
4. Rebranding could result in the loss of cus- Source: (Interbrand 2014)
tomer goodwill and loyalty (i.e. potential
loss of business value). zz Reflective Questions
5. Uncertainty in the ownership of the brand 55 Why do you think it was important for the
would introduce risk, potentially under- CEO to understand the worth of their
mining the value of the business on IPO. brand before the IPO?
55 Why do you think it’s important to consult
A challenge was the modelling of potential Interbrand to carry out the assessment?
business value at risk should control over the 55 How important is the understanding of
brand be lost (i.e. requiring a full rebrand). To trust among customers, public and employ-
adequately assess the level of risk, they devised ees before a brand merger and or acquisi-
three potential scenarios, leveraging rebrand- tion?
8.5 Measuring Brand Equity financial research and sophisticated math-

ematical formulas to calculate current and
There are many methodologies for measuring future earnings. There are three big consult-
brand equity, especially brand equity mea- ing firms (BrandZ, Interbrand and Brand
surement models from consumers’ perspec- Finance) that measure brand equity, provide
tives (Rodrigues and Martins 2016; Baalbaki brand valuation and present a list of global
and Guzmán 2016). While these may be brands on a yearly basis. Another consult-
relative, they are the practitioners’ attempt ing firm that measures brand equity is brand
to measure equity using data and relatively assets valuators (BAV). They provide a tool
available information. This practitioners’ that brands can use to evaluate their equity
method may, however, be suitable for more and do not compile a list of global brands.
established brands that have the data needed This section explores these four consulting
readily available. These methodologies use companies, their methodology and approach
a measure of consumer brand perceptions, to measuring brand equity.
8.5.1 BrandZ quantitative research, including 3.7 million

consumers and more than 165,000 brands in
BrandZ is a trademark property of Kantar, over 50 markets worldwide. This valuation
which is part of WPP Plc’s data investment tracks brands that appeal to relevant custom-
division. Kantar has access to an extensive ers and potential customers. The valuation
network of advertising, research and media uniquely measures the customers’ request and
agency experts around the world. BrandZ’s validates it against actual sales performance
brand valuation ranking combines compa- (. Fig. 8.3).
nies’ financial data with consumer insight and BrandZ uses Kantar Millward Brown’s
opinion. BrandZ valuations isolate the value meaningfully different framework, a brand
generated by the strength of the brand alone equity measurement system that helps deter-
in the minds of consumers, that is, with all mine how meaningful (meets consumer
other elements removed. It is calculated by needs), different (unique and sets trends) and
multiplying the brand’s financial value by the salient (top of mind) the brand is. This is pro-
brand’s contribution: vided based on the power (growing sales
55 Economic value—the proportion of the through extra volume), premium (command-
total economic value of the parent coming a higher price) and potential (sustainable
future growth) of the brand. This framework
8 pany that can be attributed to the brand in
is used to generate a list of top global brands
question, considering both current and
projected performance. yearly.
55 Brand contribution—quantifies the pro- In addition to the list of top global brands,
portion of this Financial Value that is BrandZ also produces a list of top brands in
directly driven by a brand’s equity, that is, different countries. To be included in this list,
the ability of the brand to deliver value to the brand must meet at least one of the fol-
the company by predisposing consumers lowing eligibility criteria:
to choose the brand over others or pay 55 The corporate parent is listed on the coun-
more for it, based purely on perceptions. try’s stock exchange.
55 The brand originated in that country, and
BrandZ can measure the emotional/cus- its corporate parent is listed on a recog-
tomer valuation through ongoing, in-depth nised stock exchange.
BrandZ
Brand Valuation
Financial Value x Brand Contribution
Financial Value X Brand Contribution
Assests from Current demand

Parent Company (Power)
Propotion of Price Premium

Intangibel Assets (Premium)
Projected Future demand and Price

Earnings (Potential)
. Fig. 8.3 BrandZ brand valuation methodology. (Adapted from BrandZ (2020))
171 8
55 The brand is privately owned, but its com- financial performance of the branded prod-
plete financial statements are publicly ucts or services, of the role the brand plays in
available. purchase decisions and of the brand’s com-
55 The brand’s account is available in the petitive strength. The Brand Strength analysis
public domain. is based on an evaluation across ten factors
(. Table 8.1) which they believe constitute a
strong brand. Performance in these areas is
8.5.2 Interbrand judged relative to other brands in the industry
and comparable to other world-class brands
Interbrand brand valuation, which has been (. Fig. 8.4).
continually published annually since 2000, Interbrand also compiles its list of Global
seeks to provide a rich and insightful analysis Brands which includes other regional compi-
of brands, giving a clear picture of how a lations like Best Spanish Brands, Best Korean
brand is contributing to business results and a Brands and Best Taiwan Brand. To be
roadmap of activities to future achievements. included in Interbrand’s Best Global Brands,
Interbrand calculates its brand value through a brand must be truly global, having tran-
three key components: an analysis of the scended geographic and cultural boundaries.
. Table 8.1 Interbrand’s brand strength factors
Factor Description
Internal factor
Clarity Clarity internally about what the brand stands for and its values, positioning and
proposition. Clarity about target audiences, customer insights and drivers. Because so
much hinges on this, it is vital that these are articulated and shared across the organisa-
tion.
Commitment Internal commitment to the brand, and a belief internally in the importance of the
brand. The extent to which the brand receives support in terms of time, influence and
investment.
Governance The degree to which the organisation has the required skills and an operating model for
the brand that enables effective and efficient deployment of the brand strategy.
Responsiveness The organisation’s ability to continually evolve the brand and business in response to, or
anticipation of, market changes, challenges and opportunities.
External factor
Authenticity The brand is soundly based on internal truth and capability. It has a defined heritage and
a well-grounded value set. It can deliver against the (high) expectations that customers
have of it.
Relevance The fit with customer/consumer needs, desires and decision criteria across all relevant
demographics and geographies.
Differentiation The degree to which customers/consumers perceive the brand to have a differentiated
positioning distinctive from the competition.
Consistency The degree to which a brand is experienced without fail across all touchpoints or formats.
Presence The degree to which a brand feels omnipresent and is talked about positively by
consumers, customers and opinion formers in both traditional and social media.
Engagement The degree to which customers/consumers show a deep understanding of, active participa-
tion in, and a strong sense of identification with, the brand.
Source: Interbrand (2020)

Financial Analysis Role of Brand Brand Strength
InterBrand
Brand Valuation
. Fig. 8.4 Interbrand brand valuation methodology. (Adapted from Interbrand (2020))
It will have expanded across the established not own it. Brand Finance calculates brand
economic centres of the world and entered the values by reference to documented third-party
major growth markets. In specific terms, this transactions, tax authorities and the courts’
requires: favours. As well, the valuation can be done
55 At least 30% of revenue must come from based on publicly available financial informa-
outside of the brand’s home region. tion, and it determines the fair market value
8 55 The brand must have a significant presence of brands. The consultancy firm publishes the
in Asia, Europe and North America, as world’s top 500 most valuable brands yearly.
well as geographic coverage in emerging Brand Finance has seven steps for its
markets. Royalty Relief methodology (Brand Finance
55 There must be sufficient publicly available 2020):
data on the brand’s financial performance. 1. Calculate brand strength on a scale of
55 Economic profit must be expected to be 0–100 using a balanced scorecard of sev-
positive over the longer term, delivering a eral relevant attributes such as emotional
return above the brand’s cost of capital. connection, financial performance and
55 The brand must have a public profile and sustainability, among others. This score is
sufficient awareness across the major econ- known as the Brand Strength Index.
omies of the world. 2. Determine the royalty rate range for the
55 These requirements—that a brand is respective brand sectors. This is done by
global, profitable, visible and relatively reviewing comparable licensing agree-
transparent with financial results—explain ments sourced from Brand Finance’s
the exclusion of some well-known brands extensive database of license agreements
that might otherwise be expected to appear and other online databases.
in the ranking. 3. Calculate the royalty rate. The brand
strength score is applied to the royalty rate
range to arrive at a royalty rate. For exam-
8.5.3 Brand Finance ple, if the royalty rate range in a brand’s
sector is 0–5% and a brand has a brand
Brand Finance conducts original market strength score of 80 out of 100, then an
research in ten sectors (Auto, Tech, Apparel, appropriate royalty rate for the use of this
Restaurants, Airlines, Retail, Insurance, brand in the given sector will be 4%.
Utilities, Banking, Telecoms) across 29 mar- 4. Determine brand specific revenues esti-
kets, with a sample size of over 50,000 adults, mating a proportion of parent company
representative of each country’s internet pop- revenues attributable to each specific brand
ulation aged 18+ to understand the value of and industry sector.
brands. Brand Finance calculates brand value 5. Determine forecast brand specific revenues
using the Royalty Relief methodology, which using a function of historic revenues,
determines the amount a company would be equity analyst forecasts and economic
willing to pay to license its brand as if it did growth rates.
173 8
6. Apply the royalty rate to the forecast reve- components of brand health. These pillars are
nues to derive the implied royalty charge as follows:
for the use of the brand. 55 Differentiation—a brand’s ability to
7. The forecast royalties are discounted post- attract attention in the cultural landscape.
tax to a net present value which represents A powerful driver of curiosity, advocacy
the current value of the future income and pricing power.
attributable to the brand asset. 55 Relevance—how appropriate and mean-
ingful a brand is to consumers. Drives
brand consideration and trial.
8.5.4 Brand Asset Valuator 55 Esteem—a measure of how highly
regarded a brand is and how well it deliv-
BAV®, owned by VMLY&R, part of WPP, ers on its promises. Leads to trial and com-
was developed with academic partners at mitment.
Columbia, MIT, Dartmouth and the 55 Knowledge—the depth of understanding
University of Washington. BAV uniquely cap- people have of a brand—both positive and
tures the key dimensions that drive brand negative information.
momentum, advocacy and financial success in
the marketplace, measuring extensive brand These four pillars are plotted in two dimen-
qualities and metrics that drive financial and sions on the power grid: stature and strength.
market success. The Brand Asset Valuator is The two dimensions capture the relationship
based on four brand pillars that capture vital between the four pillars (. Fig. 8.5).
3
MOMENTUM
LEADERSHIP
2 High Earnings,
High Potential
NICHE OR UNREALISED
Low Earnings, High Potential
4
MASS MARKET
High Earnings, Low Potential
1 5
NEW OR UNFOCUSED ERODED
Build Awarness and Traction. Seriously challenged, hanging on
Must define a clear pont of view
. Fig. 8.5 Brand asset valuator methodology. (Adapted from Brand Asset Valuator (2020))
8.5.5 Part 1—New or Unfocused through innovating, engagement and aware-

ness.
Brand in this quadrant is a new brand that has
recently entered the market or is an old stag-
nant brand with no clear focus. These brands 8.5.8 Part 4—Mass Market
are low on all the four pillars, though the new
brand is more likely to have a differentiation This is the second part of the third quadrant,
factor but little relevance, awareness and it represents brands that are losing their dif-
knowledge. The old stagnant brand, however, ferentiation. These brands are not innovative,
has more knowledge but still low on relevance, and they are not curious. While they still rely
differentiation and esteem. This suggests that on their relevance, esteem and consumers’
the old brand is only relying on past glory, knowledge, the result of building the past suc-
and it is not innovative enough to attract and cessful brand, consumers will lose interest as
appeal to customers whose behaviours are they can no longer meet their needs. The
changing. These brands are expected to build brands in this quadrant are losing their lead-
awareness and reposition themselves with a ership, losing power. These brands need to do
clearer vision. For new brands that have some research-based innovation to stay rele-
vant and reclaim their spot.
8 improved their relevance and esteem, they can
move to the second part in the second quad-
rant.
8.5.9 Part 5—Eroding Brand
8.5.6 Part 2—Niche or Unrealised This is the brand in the last quadrant. These
brands were once powerful, but they did not
These brands are unique, different from oth- innovate and engage with the consumers. They
ers, but they have not realised their full poten- have lost their differentiation which was their
tial. The strength is in the differentiation core strength. They have lost their connection
which is relevant to the consumers’ needs but with the consumers and lost their power as
low on esteem, and knowledge. The consum- well. These brands have been removed from
ers do not know much about them even the pedestals in the minds of consumers.
though they are different. These brands are This is a dangerous zone for any brand, espe-
low on finances and insignificant, but they cially taking into consideration the number
have the potential for growth. of resources that must have been invested in
sustaining the brand until then. These brands
are no longer relevant, different or have value.
8.5.7 Part 3—Momentum They only rely on their past glory and con-
Leadership sumers’ prior knowledge. They are severely
challenged and hanging on before ultimately
This is in the third quadrant but divided into fading from consumers’ consciousness.
two-parts. The first part of this quadrant rep-
resents the powerful brands. These are the
brands enjoying their position as the market 8.6 Considerations
leader, they can command high prices. These
brands are very different from others, con- 8.6.1 Build the Equity
sumers find them very relevant, and they are
well regarded as they believe in their promises. Brand managers need to recognise the impor-
These brands have high earnings and high tance of their brand equity—it is an intangi-
potential to extend their brands into a differ- ble asset of the company. A conscious effort
ent market and product line. The challenge for should be put into developing this equity reg-
the brand here is to continue being a leader ularly. There should be an effort towards
8.6 · Considerations
175 8
research and development to create more educated opinion. With brand valuation
innovative products. They should be aware of comes overvaluation. Financial advisory firm
the brand and customers’ engagement. Brand Grant Thornton came under scrutiny in India
managers needs to evaluate their brands regu- for overvaluing a brand even when Brand
larly to know where the brand is and where Finance had a lower estimate. Kingfisher air-
they want to go. They should also recognise lines gave the “Kingfisher” brand as collateral
the competition in their niche and how to to bankers. The Kingfisher brand was val-
remain relevant in their sector and always ued at Rs. 3000 crore ($501 million) in 2011.
look for ways to build a lasting relationship Banks were reported to have assessed the air-
with the customers. This relies on the BrandZ line at a mere Rs 160 crore when they carried
brand equity model that sees the brand move out their own internal exercise. Serious Fraud
from only being present in the market to Investigation Office (SFIO) questioned Vijay
bonding and forming a loyal relationship with Mallya, the founder of the airline, alleging
the consumers. The aim is to have many more he exaggerated financial indicators deliber-
consumers on the bonding part as this grows ately. This highlights a potential implication
the revenue of the brand and the loyalty of of brand valuation and equity. Because it is
the consumers. intangible, the value can be inflated, which can
then have financial and legal consequences.
8.6.2 rand Valuation May Not

B
Be Necessary 8.6.4 Data Source for Valuation
The need to seek a valuator for a brand varies It is essential to recognise that the three con-
and it depends on the type of brand. For more sulting companies producing global lists all
prominent brands considering merger and have various methodologies and different
acquisition, valuations may be conducted to sources of information. Data quality is chal-
know the brand’s worth. For brands that lenging to assess and validate. The data are
require insight and understanding of the fac- often from online surveys and opinions from
tors which drive consumer behaviour or different countries. It is not surprising to see
merely carrying out a brand audit, the brand that the valuations published by the three con-
evaluation may be necessary. Likewise, for sultancies that produce the top brand valua-
brands considering brand metrics as KPIs for tion rankings vary significantly. As indicated
the management team, it may be worthwhile in . Table 8.2, Apple has been evaluated dif-
for them to seek the service of an evaluator to ferently. In 2019, BrandZ valued it at $309.5
qualify the worth of their brand equity. A billion while Interbrand valued it at $234 bil-
brand valuation can also be a public relations lion as the most valuable brand in the world;
strategy. People love league tables and charts. however, in 2020, Brand Finance valued it at
So, this will make the brand perceived as valu- $140 billion. The question then remains, if
able by the public and may not have any prac- you want to buy Apple, whose value are you
tical management implications. It may be going to consider? Brand Finance because it
worthwhile for smaller brands like small- and has the lowest valuation? Or if you are going
medium-sized enterprises (SMEs) or charity to sell Apple, whose assessment will you go
organisations to focus on building the equity for? BrandZ? This further highlights the rela-
and not necessarily incurring financial cost to tivity and inconsistency in brand valuation.
evaluate brand equity. The source of data and methodology are
often presented as the main issue.
There are a lot of sources of data for more
8.6.3 Brand Overvaluation prominent brands. In addition, companies
like Refinitiv (formerly Thomson Reuters)
Mike Rocha, Managing Director, Interbrand provide information about financial data;
Economics, said that brand valuation is an GlobalData (brand volumes and values) can
. Table 8.2 Top ten brands on the three brand valuation lists
BrandZ 2020 Interbrand 2019a Brand Finance 2020
Global brand Global brand Global brand
Brand Value Brand Value Brand Value
1 Amazon $415b Apple $234b Amazon $220b
2 Apple $352b Google $167b Google $160b
3 Microsoft $326b Amazon $125b Apple $140b
4 Google $323b Microsoft $108b Microsoft $117b
5 Visa $186b Coca-Cola $63b Samsung $94b
6 Alibaba $152b Samsung $61b ICBC $80b
7 Tencent $150b Toyota $56b Facebook $79b
8 Facebook $147b Mercedes-Benz $50b Walmart $77b

8 9 McDonald's $129b McDonald’s $45b Ping An $69b
10 Mastercard $108b Disney $44$ Huawei $65b
Source: BrandZ, Interbrand and Brand Finance

aInterbrand release their ranking in October ever year. At the time of writing, the 2020 version has not been
released
be used for collecting consumer goods data; rooms of innovation. US brands are 60%
and Infegy for text analytics and social listen- more innovative and 46% more visionary than
ing. There are many other commercial infor- non-American brands. According to the BAV
mation sources that brand managers may use 2020 Best Countries report (BAV 2020), 70%
to understand the public perception of their say they are willing to pay more for a product
brands. This is more like a do-it-yourself made in their country while 76% say where a
(DIY) approach instead of engaging the ser- product is made has a great impact on their
vice of a valuator. preference to purchase. Germans may be per-
ceived as strong; therefore, cars made in
Germany are considered reliable. This coun-
8.6.5 Country of Origin try image can also be transferred to new or
unfamiliar products (Tse and Gorn 1993), so
The country of origin can have an impact on if Germans are strong, a new product from
brand equity. Ashill and Sinha (2004) extended Germany may be considered strong.
Keller’s (1998) conceptualisation of brand Agarwal and Sikri (1993) report on the
equity to incorporate country of brand origin conceptualisation of country image in two
(CBO) and country of origin (COO), and they ways. Firstly, it has been studied through con-
recognised effects on purchase intention. sumer’s overall perceptions (e.g. technology,
Consumers that are familiar with products prestige and price) of products in each coun-
from a country develop a country image and try or as a set of generalised beliefs about spe-
perceived quality. This may be the notion of cific products from a country on a set of
German engineering, American innovation attributes. These perceptions can influence the
and Japanese quality. The United States is still received values of the brand and enhance its
considered one of the world’s leading engine equity. This may also apply to products com-
8.6 · Considerations
177 8
ing from countries that are not well known or Digitisation is also changing the requirements
with perceived poor quality. Brand managers for brand management, especially as there are
of such brands needs to create awareness and empowered consumers who can use social
use other strategies to build loyalty and asso- media to engage with the brand and present a
ciation. narrative which may be different from what
the brand anticipates. In the Markenstudie
2019 report over 80% of respondents mention
8.6.6 Brand Communication the influence of social media on brand aware-
ness and brand image. The report further
Marketing communications represent the stated that in 5 years, two-thirds of advertis-
“voice of a brand and how companies can ing will be digital. Market research no longer
establish a dialogue with consumers concern- focuses on traditional methods such as panel-
ing their product offerings” (Keller 2001, based customer surveys but on digital
p. 823). Brand communication is essential for approaches, such as the concept of social
developing substantial brand equity. The media listening. Brands will keep building
communication brings awareness, awareness awareness using digital media, and there are
brings loyalty and association. While commu- opportunities for more personal offers and
nication is necessary, the brand must know engagements. It will be essential to see how
what, when and where to communicate. this builds and encourages loyalty.
Brands need to express their differences, their
unique features, and how they are different
from the competitors. The communication is 8.6.8 Human Brand Equity
not just about advertising but appealing to
individuals on a very personal level, ensuring Humans are brands, and we could choose to
there is a connection between the brand and develop our brand or let it be. Human brand
the consumer. As Schultz (2004) notes, brand equity represents the value that a human
equity is not merely built through indepen- brings to another brand through association.
dent forms of communication (such as adver- It suggests why football players are valued dif-
tising or public relations) but is generated by ferently and why their value will reduce after
managing brand equity contacts via an inte- some years. The human brand equity indi-
grated marketing campaign. This could mean cates why you may need to pay a celebrity to
following up a mass media (like TV) barrage appear at a party or spend a fortune for a
with a personalised coupon or offer via email. speaker at an event you are organising. It was
Effective communication enables the forma- reported that Barack Obama, former
tion of brand awareness and a positive brand President of the United States, was paid
image. Therefore, brands should always be nearly $600,000 to speak at the EXMA con-
looking for how to connect with each buyer ference in Bogotá, Colombia in 2019. In the
and satisfy their unique needs. United Kingdom, it has been reported that
the former Chancellor of the Exchequer,
George Osborne earns £500,000 from giving
8.6.7 Digital and Social Media after-dinner speeches and he has developed a
lucrative career after leaving political office.
Many intangible assets that were not measur- Social media influencers have developed their
able before are now being measured because brand through awareness, perceived trust in
of the advancement of digital technology, their posts and loyalty from their followers.
access to data and growing interest in metrics. These influencers can, therefore, charge pre-
Companies like Markables are now able to miums to promote a campaign on their social
provide IP valuations and provide comparable media profile. By getting more education and
data for previously untouched asset classes experience, you are improving your equity,
such as customer relations and goodwill. and this will pay off when you are looking for
a job and negotiating your salary, or you are more suitable for those looking into mergers
working on a brief. This is about the perceived and acquisitions or repositioning the brand.
quality of your education and experience and It may not be commercially feasible or neces-
what you will be contributing to the team. sary for smaller brands. Instead, it is essential
to understand factors that enhance equity
and work towards improving their brands
8.7 Conclusion and not worry too much about getting a valu-
ation for the brand. A popular quote from
Brand owners have invested a considerable Albert Einstein is “Not everything that can
amount of money in developing their brands, be counted counts, and not everything that
this involves research and development, devel- counts can be counted.”
oping brand identities and integrating the
brands. These are the company’s intangible Key Points
assets. There valuation and financial worth is 55 Brand equity represents the non-
important. This is because these metrics are financial and financial value of a brand.
needed by many stakeholders such as inves- 55 Brand equity describes the emotional
tors, business analysts, shareholders, investors valuation (benefits to brand users) and
8 and C-suite executives who need to evaluate
and compare brands and make faster and
rational valuation (benefits to brand
owners) of a brand.
better-informed decisions. This has led to a 55 The major assets that build brand
growing demand for brand evaluators to put equity can be grouped into five catego-
financial value on the brand. ries: brand awareness, brand loyalty,
This value is the brand equity, the higher perceived quality, brand association
the equity, the stronger the brand. Strong and other proprietary brand assets.
brands influence customer choice and create 55 There are three leading brand evalua-
loyalty; attract, retain and motivate talent, tion companies; they provide a list of
and lower the cost of financing (Mogaji and global brands every year; however, they
Erkan 2019). This equity is developed through have different methodologies and dif-
brand awareness, brand loyalty, perceived ferent valuations.
quality and brand association. The combina- 55 Brand valuation is often needed for
tion of these factors, which represents the internal reporting, M&A/transactions,
consumers’ perception of the brand, shapes budgeting, licensing, financial reporting
the equity. The equity can increase when there and taxation.
are more aware and loyal customers (Mogaji
55 Brand valuation may not be necessary
et al. 2020), and on the other hand, the invest- if the brand is still growing. Instead, the
ment can reduce when consumers are no lon- brand needs to focus on building brand
ger dependable and shop elsewhere. This is awareness and loyalty.
then left to the brand managers to evaluate
55 Many intangible assets that were not
the brand and identify ways of revitalising the measurable before are now being mea-
brand. This may be to rethink the brand’s cat- sured because of the advancement of
egory, to develop new products or strategies digital technology, access to data and
to effectively communicate value to the stake- growing interest in metrics.
holders.
Brand consultancies are responsible for
evaluating these brands and providing ser-
vices for various stakeholders. We have dis- ►►Student Activities
cussed three such consultancy firms with 1. How would you describe brand equity?
differing methodologies. Therefore, they value 2. What are the brand assets that make up the
brands differently. Brand valuations may be brand equity?
References
179 8
3. What are the implications of brand equity Feldwick, P. 1996a. Do we really need ‘brand equity’?
in mergers and acquisitions? Journal of Brand Management 4: 9–28.
———. 1996b. What is brand equity anyway, and how
4. What is the essence of brand valuation?
do you measure it? Market Research Society Journal
5. How important are the enterprise assets of 38 (2): 1–17.
a brand going through acquisition? Heding, T., C. Knudtzen, and M. Bjerre. 2016. Brand
6. How important is brand valuation to a management: Research, theory and practice.
charity organisation? Abingdon: Routledge.
Interbrand. 2014. Financial applications for brand valua-
7. How can a brand from an emerging mar-
tion. Delivering value beyond the number. New York:
ket (when there is a not-so-good percep- Interbrand. https://www.interbrand.com/wp-
tion of the country of origin) improve their content/uploads/2015/10/Interbrand-F inancial-
equity? Applications-for-Brand-Valuations.pdf.
8. What are the implications of digital tech- ———. 2020. Methodology. https://www.interbrand.
com/best-brands/best-global-brands/methodology/.
nology for brand valuation?
Accessed 8 Aug 2020.
9. What do you think are the implications of Kapferer, J. 2015. Strategic brand management. 5th ed.
brand overvaluation during mergers and London: Kogan.
acquisitions? Keller, K. L. 1993. Conceptualizing, measuring, and
10. How would you expect a human (a person) managing customer-based brand equity. Journal of
Marketing 57(1): 1–22.
to develop their brand equity? ◄
Keller, K. 1998. Strategic brand management: Building,
measuring and managing brand equity. Upper Saddle
River: Prentice Hall.
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tions mix: Micro and macro perspectives on inte-
Aaker, D. 1996. Building strong brands. New York: Free grated marketing communication programs. Journal
Press. of Marketing Management 17 (7–8): 819–847.
———. 2009. Managing brand equity. London: Simon Keller, K. 2003. Brand synthesis: The multidimensional-
and Schuster. ity of brand knowledge. Journal of Consumer
Agarwal, S., and S. Sikri. 1993. Country image: Research 29 (4): 595–600.
Consumer evaluation of product category exten- ———. 2016. Reflections on customer-based brand
sions. International Marketing Review 13 (4): equity: Perspectives, progress, and priorities. AMS
23–39. Review 6 (1–2): 1–16.
Ashill, N., and A. Sinha. 2004. An exploratory study Kim, S., J. Choe, and J. Petrick. 2018. The effect of
into the impact of components of brand equity and celebrity on brand awareness, perceived quality,
country of origin effects on purchase intention. brand image, brand loyalty, and destination attach-
Journal of Asia-Pacific Business 5 (3): 27–43. ment to a literary festival. Journal of Destination
Baalbaki, S., and F. Guzmán. 2016. A consumer- Marketing & Management 9: 320–329.
perceived consumer-based brand equity scale. Mogaji, E., and A. Danbury. 2017. Making the brand
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BAV. 2020. 2020 best country report. New York: VMLY&R. attitude towards UK retail bank brands. Journal of
https://vmlyr.docsend.com/view/58q8fk7. Product & Brand Management 26 (6): 531–544.
BAV Group. 2020. BrandAsset® Valuator. [online] Mogaji, E., and I. Erkan. 2019. Insight into consumer
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Brand Finance. 2020. Methodology. https://brandirec- Travel Behaviour and Society 14: 21–33.
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8
181 9
Brand Extension
Contents
9.2 Brand Extension – 184
9.3 Reasons for Brand Extension – 185

9.3.1 usiness Growth – 185
B
9.3.2 More Visibility for the Brand – 185
9.4 Identifying Potential for Extension – 186

9.4.1 rand Equity – 186
B
9.4.2 Market Dynamics – 186
9.4.3 Loyal Customers – 186
9.4.4 Economic Viability – 187
9.4.5 Advantage over Competitors – 187
9.5 Flagship and Extended Brand – 187
9.6 Types of Brand Extension – 188

9.6.1 L ine Extension – 188
9.6.2 Complementary Category Extension – 188
9.6.3 Non-complementary Category Extension – 188
9.6.4 Expert Extension – 189
9.6.5 Prestige Extension – 189
9.6.6 Customer-Based Extension – 189
9.6.7 Geographical Extension – 190
9.7 Advantages of Brand Extension – 191

9.7.1 arket Entrance – 191
M
9.7.2 Saves Cost – 191
9.7.3 Higher Patronage – 191
9.7.4 Perceived Quality – 191
9.7.5 Enhanced Brand Image – 192

9.8 Disadvantages of Brand Extension – 192
9.8.1 L oss of Investment – 192
9.8.2 Negative Attitude – 192
9.8.3 Brand Dilution – 192
9.8.4 Consumer Alienation – 192
9.8.5 Cannibalisation – 192
9.9 How to Extend a Brand – 193

9.9.1 arent Brand Extension – 193
P
9.9.2 Co-Creation – 193
9.9.3 Licensing and Franchising – 194
9.9.4 White and Private Labelling – 195
9.9.5 Acquisition – 197
9.10 Key Considerations for Brand Extension – 202

9.10.1 J ustifiable Reason – 202
9.10.2 Starting Small – 202
9.10.3 Brand Structure – 202
9.10.4 Marketing and Distribution – 203
9.10.5 Name Selection – 203
References – 204
Brand Extension
183 9
Sam, Alex and Code have now been friends ers. This is not limited to Sam’s or Code’s
for over 9 weeks. They have shared their sto- company. Even Alex can extend the charity
ries, struggles and challenges. They see that organisation. Brand extension is a strategic
they have been making progress with their business decision which may be influenced by
physical activities. Sam asks what they will do timing, the product line and even the customer
after the 12 weeks. They have taken time to base. In this chapter we will explore different
develop an essential part of their life, but will potential options for extension, types of
they start a second venture? Or will they con- brand extension and challenges. Brand exten-
tinue like this? Code presents a new business sion is not guaranteed to succeed. There are
direction, as they think it is time to expand key factors that the brand manager needs to
their business into a different market. Right consider before deciding on when or if to
now, they make orange juice, but they are con- expand.
sidering exploring other juice products, per-
haps apple juice, or extending their reach into
Overview
a different market. Code acknowledges that
A brand that has acquired goodwill from
there will be implications for the company,
consumers, that has been being around for
especially on financial and human resources.
many years and is innovative with their
Alex feels that it is not the right time for them
product development and service quality
to extend their brand, as it is still a small char-
may decide to extend their brand. The
ity with room to grow. Sam agrees that an
brand can build on their existing name or
extension of the product line should not be
come up with a new brand name to make
rushed into, that one should consider all
different or related products and enter a
options thoroughly. Many brands want to
new market. This extension is a strategic
extend and grow. They want to get more mar-
decision that should not be taken lightly, as
ket share and also serve many more custom-
184 Chapter 9 · Brand Extension
option for extending their brands. While this

there are financial and human resources may look like the next step for a valued brand,
implications. The new product line will have some different challenges and obstacles need
to be developed, branded and marketed. In to be considered before taking that route.
this chapter we look at how brands can use A brand may decide to build on its high
the leverage of a well-known brand name in level of public awareness and consumer loy-
one category to launch a new product in the alty to develop products which will meet a
same or different category. Identifying the need in the market. This marketing strategy
potential for leveraging is also essential for can help likewise to increase equity and profit-
brand managers. It is essential to know ability. Extending brands both within and
when to take the leap and commit to a beyond the original product category is
financial decision. In addition, we will deemed to be profitable. In general, it is
explore different types of extension, and assumed that brands that are already known
the advantages and disadvantages of exten- and recognised require lower new product
sions. While brand extension may be a introduction expenses, such as advertising,
worthwhile business decision, we will exam- trade deals or price promotions (Collins-
ine some critical considerations for brand Dodd and Louviere 1999; Tauber 1988).
managers. However, there are financial and reputational
risks in entering new markets and developing
new brands.
9 ? Key Question
What other venture can this brand be
involved in? 9.2 Brand Extension
n Learning Outcomes Brand extension is a marketing strategy where
At the conclusion of this chapter, you will an established brand name is used for a new
be able to product or new product category (Ahn et al.
55 explain the concepts of brand extension 2018). This is also known as brand stretching.
and stretching; Aaker and Keller (1990) highlight two types
55 identify the reasons for brand exten- of extension—line and brand extension. A
sion; line extension is when a current brand name is
55 describe the types of brand extension; used to enter a new market segment in its
55 give examples of how brands can be product class. Brand extension is when a cur-
extended into the market; rent brand name is used to enter a completely
55 identify the advantages and disadvan- different product class. While it is essential to
tages of brand extension; and recognise the possibilities of the brand extend-
55 describe brand management considering into a different market, a brand extension
ations for brand extension. is basically about creating a new brand which
is related to an existing (and possibly well-
established) brand.
9.1 Introduction Brand extension is an important market-
ing strategy and is a concept that can be used
Well-managed and valued brands will con- to better understand the full dimension and
sider expanding their products and services, prospects of a business (Huang et al. 2017). It
transferring their goodwill and equity to is essential to identify some key points at this
another product and possibly into a different level. Let us consider the following factors:
geographical location. Brand managers recog- 1. New Brand: Brand extension involves cre-
nise these opportunities and considers the ating a new brand (Muroyiwa et al. 2017).
9.3 · Reasons for Brand Extension
185 9
This extended brand is a child brand, and 9.3 Reasons for Brand Extension
the parent brand is the established brand
that has created it. For example, Coca- Growth and financial reward may be consid-
Cola is the parent brand and Diet Coke is ered as the key benefit of brand extension.
the child brand. Apple is the parent brand; However, sometimes, it might not just be
iPhone is the child brand. about the money but the positioning and
2. Product or Service: The new brand can association with other brands. This section
come in a different form, and it is not just presents three reasons for brand extension.
limited to a product. Apple has iTunes, and
Google has Pixel (product) and Google Ads
(an online advertising platform). 9.3.1 Business Growth
3. Market: The new brand may be for the
new market and likewise it could be for a The growth of a business can be evidenced
different market (Yao et al. 2016). by how well the brand has been stretched
Caterpillar is known for construction and extended. A brand will want to measure
machinery and equipment; they have their growth by the number of products or
extended in the same machinery market services they can provide simultaneously.
with different lift trucks and diggers, but The ability to effectively manage many
they also extended into clothing and work- brands is a testament to the growth of the
wear, which is a different market. Now, company (Butcher et al. 2019). A company
Caterpillar Inc. has a portfolio of about 20 will not want to rely on just one product, and
brands offering machines, engines, compo- they would have identified potential other
nents, services and solutions. products through the increasing public
4. Name: The new brand may take the name awareness and acceptance of their product.
of the parent brand, and likewise, it may This expansion opens more markets and
take a different name unrelated to the par- develops a greater customer base, and if suc-
ent name. Head and Shoulders have a dif- cessful, guarantees more sales volume and
ferent line extension in the same shampoo profit. Brand extension can be used to revive
category. They all have the same Head and a declining product, extend it into another
Shoulder name but targeted towards dif- country or market where it may interest a
ferent segment of the market, while new set of customers. This expansion further
Alphabet has different names for their presents a strategic challenge for the brand
brand extensions which include Waymo, owner and brand manager to understand
Nest and Verily. their brands and explore the potential of
5. Manufacturing: The parent brand may man- extending them in the form of additional
ufacture the brand extension, and it could product or services that increase their profit-
also be manufactured by another brand. ability.
This process could be a form of co-creation,
licensing or white labelling whereby another
company manufactures the product for the 9.3.2 More Visibility for the Brand
parent brand and the child’s brand name is
put on it. Ferrari sells suitcases, even though With a growing number of well-managed
they manufacture cars, this would have been brand extensions, there is more visibility for
outsourced to another company to produce. the brand. This visibility may even go beyond
Online Travel Portal and Energy Companies the country of origin as the product is
in the United Kingdom also have white label exported and service delivered in different
arrangements. markets through franchising, licensing and
white labelling. Brand owners and managers 9.4.1 Brand Equity

can take pride in the visibility of their brand
across different customers and different mar- As discussed in the previous chapter, brand
kets. This visibility increases brand equity equity represents the financial and non-
through awareness, association and loyalty financial worth of a brand. Equity is based on
(Mogaji et al. 2018). This visibility makes the brand awareness, loyalty, association, per-
brand attractive for more collaboration, ceived values and enterprise assets of a brand
partnership and co-creation. It gives the (Dwivedi et al. 2019). A brand may consider
brand an edge in acquiring more companies extending and creating a new brand if it is
to expand their brand lines and customer assured and confident about its equity. This
base. level of equity suggests a brand that has raised
a reasonable amount of awareness about its
flagship product or service, a brand that has
9.3.3 Reputation built a positive association and enough loyalty
and thereby assured that these loyal customers
Brands may decide to go into co-creation to are interested in what it has to offer. The level
extend their brand based on the reputation of of brand equity suggests a reason why it is
the partners involved. A celebrity may want to time for the brand to extend. When the brand
partner with a fashion brand to create a cloth- is not ready, in terms of awareness and loyalty,
ing line or perfume (Aririguzoh et al. 2019). this may be risky and hurt the flagship brand.
9 Likewise, luxury brands may want to collabo-
rate with another brand as a one-off design.
The brand’s present reputation and desire to 9.4.2 Market Dynamics
enhance its reputation may present a reason
to create a new brand. This partnership may Even with good brand equity, a brand still
not necessarily be about the financial benefit needs to consider if the market is ready and in
but to create an association and be in the com- need of a new product. Understanding market
pany of other reputable brands. Brand man- dynamics involves researching to understand
agers need to explore these opportunities to the present state of the market and if there is a
enhance the positioning of their brands. It desire for a new product. The brand also needs
could mean a charity organisation working to consider the presence of a competitor and
with a celebrity to raise awareness about their the impact they may have on a new brand com-
cause. The embedded meaning and perception ing into their market. Virgin Cola was founded
about the brands can, therefore, be shared and during the early 1990s in conjunction with
transferred. Cott, a Canadian company that specialises in
bottling own-label drinks. Virgin Cola brand
did not survive as it was unable to beat the stiff
9.4 Identifying Potential competition from Coca-Cola and Pepsi.
for Extension
Brand Extension is a business decision that 9.4.3 Loyal Customers

the brand owner and brand managers need to
consider. Often it makes business sense for a If the flagship brand has many loyal custom-
brand to extend; however, to avoid failure and ers, there is potential for brand extension.
negative impact on the brand, it is essential to When present customers are loyal, there are
consider potential options for extension. indications that they will be willing to buy the
These potential options give strategic insight other products from the brand. Apple has
into when a brand can consider extending and been able to extend its brand because there are
creating a new brand. present loyal customers who are willing to
9.5 · Flagship and Extended Brand
187 9
keep buying more products. Building cus- integrate many other applications into their
tomer trust and loyalty are essential in devel- smart speaker.
oping a viable brand extension. This does not B is a new digital banking service by the
just happen—it usually happens because of high street bank brand, Clydesdale and
quality services or products that a company Yorkshire Bank Group (CYBG). While the B
continually offers. brand was an online brand extension, it had
an advantage because customers could get
additional benefits from the physical banking
9.4.4 Economic Viability services.
Provided there is a clear difference and an
Even if there is the market need and loyal cus- added feature for the innovation, there is
tomers are interested in the product, is the new potential for expansion.
brand economically viable? The cost of
research and development, production and
distribution should be taken into consideration 9.5 Flagship and Extended Brand
when determining if the new brand will add
any value to the parent brand. Perhaps if the For brands to extend, it is essential to know
cost of producing and distributing the child where the new brand comes from. The flag-
brand can be shared with the parent brand, ship brand is described as the first brand cre-
then there is potential for such extension. For ated and managed by the brand owner. It can
example, the same production line used in pro- also be described as the parent brand that will
ducing Coke can be used for producing Diet be extended into a new brand, the child brand
Coke, and likewise, the same distribution can (. Fig. 9.1). Coca-Cola flagship brand is the
be used. However, if Coke develops a biscuit or Coca-Cola carbonated drink, and it is the first
cookie brand this requires different investment brand and parent brand that has been
in the production line, and may affect the profit extended through line extension, co-creation
margin of such extension. and acquisitions. Apple’s flagship brand was
the Mac computer, and it acquired a huge
number of loyal customers who got more
9.4.5 Advantage over Competitors interested in other child brands of the brand
owner. For a successful brand extension, it is
Provided the parent brand is sure of an advan- essential to ensure that the flagship brand has
tage over competitors in the market; there is a enjoyed a considerable amount of brand
potential for brand extension. There should be awareness and loyalty. The flagship brand
competitive leverage for the new brand, ensur- should have acquired some equity in which
ing that it presents more desirable features they can transfer to a new child brand (Kim
than the established brand in the category. et al. 2016). If the flagship brand is not mature
Amazon’s echo was already in the smart enough, it might not be able to sustain a child
speaker market but Apple was assured it had brand, and that can have a devastating effect
an advantage as it already had Siri, on the on the parent brand. As illustrated below, the
iPhone, so they launched the Apple HomePod. brand owner is now able to both push the flag-
Likewise, Google was assured that they could ship and extend the brand (. Fig. 9.1).
Flagship
Brand Owner
Brand
Market
Audience
Extended
Brand
.. Fig. 9.1 Flagship and extended brand. (Source: Author)

9.6 Types of Brand Extension 9.6.2 Complementary Category

Extension
For brands that have recognised a potential
for extension, it is therefore essential to con- After a successful line extension, category
sider the type of extension that will be suitable extension is often considered the next brand
for the brand. This understanding will influ- extension strategy. This form of extension is
ence the strategic direction and management when an established brand creates a new
of the new brand. brand in a different market. Brand extension
can also be described as a category extension.
This form of extension is when a brand leaves
9.6.1 Line Extension its production line to develop a new brand
which is often likely to complement its flag-
This form of extension is often considered as ship brand. The sausage roll brand may decide
the first and most natural type of extension to create an orange juice brand to comple-
for a brand. This ease of expansion is because ment their sausage roll market. Likewise,
it aligns with the existing flagship product of Colgate decides to create a Colgate tooth-
the company. Living Witness is a food manu- brush to complement and interest those who
facturing company in Lagos, Nigeria. Their are already using its toothpaste. Colgate might
flagship product was beef sausage roll, how- not be able to produce the toothbrush on the
ever, to extend their product line, they made production line, but they can extend into the
9 fish sausage roll. This new product is a line toothbrush category to launch a brand that
extension because the same production line will appeal to their existing market base,
can be used for the new brand. Line extension which uses their toothpaste. This form of
involves creating a new brand that shares the extension has also been seen with Caterpillar,
same production line with the flagship brand, the machinery company that has extended
targets the same market but differs in terms of into financial services provision to support
features. The line extension differs from the those who may want to buy its equipment
original product in relatively minor ways, such with the financial support they need. The
as flavour, size, composition and price (Lye Caterpillar brand is therefore extending its
et al. 2001). So here, the sausage roll is pro- brand and, at the same time, giving more to its
duced using the same production line, tar- loyal customers.
geted towards the same market (those who
like sausage rolls) but differs in features (fish
instead of beef). Likewise, Colgate has a 9.6.3 Non-complementary
toothpaste for adults and children. Products Category Extension
(from the same production line) are targeted
towards the same market (those who want Unlike the relationship between toothpaste
healthy teeth) but different features and ingre- and toothbrushes, which are complementary
dients for adults and children. The ease of cre- categories, there is the possibility for a brand
ating a new brand of the same line makes line to extend into a non-complementary category
extension the more straightforward way for a extension arrangement. This form of exten-
brand to extend. The production expertise is sion is often possible for a well-established
there, the distribution network is available, brand creating a new brand for an entirely dif-
and the market is there to explore. ferent market. An example is the Ferrari suit-
9.6 · Types of Brand Extension
189 9
case which is not complementary to the cars extension) and prestige brands are evaluated
they make. Other examples are Lamborghini differently. The positive image and self-
fountain pen, Maserati’s partnership with concept associated with prestige brands will
fashion designer Zenga to develop an exclu- be transferred to the brand extension, result-
sive range of menswear and Bentley’s Barnato ing in a more positive attitude to prestige
and continental handbags. These car brands brand extensions (Lye et al. 2001). For pres-
can extend their brand name into another tige brand extensions, there is the reliance on
market which presents the potential to gener- the parent brand’s equity which includes
ate both additional revenues and increase brand awareness and loyalty. An example is
brand visibility. the Tiffany Blue Box Café inside London’s
most glamorous department store, Harrods,
which allows guests to dine surrounded by
9.6.4 Expert Extension dazzling jewels and decadent interior design.
Tiffany, as a prestige brand was able to extend
A brand that is considered an expert in its and create a new brand by partnering with
flagship brands partners with another brand Harrods. So, this type of expansion allows the
to integrate its expertise. The expert brand is brand to obtain a higher level of recognition
further extended into another brand based on from other brands and brand users. It also
its credibility and functional impact. These gives the brand users some higher level of
functional brands are evaluated on their per- prestige and makes them develop positive atti-
formance and product characteristics (Lye tudes towards themselves and others.
et al. 2001). Carl Zeiss AG, branded as Zeiss, Celebrities can also extend their brand in
is a German manufacturer of optical systems the form of prestige extension. These celebri-
and optoelectronics. Zeiss lenses extended ties can lend their brand equity to other
into smartphone cameras like Sony Xperia brands, partnering to create a new brand.
and Nokia Sirocco. Likewise, Intel, the world’s Kanye West, a celebrity human brand, part-
largest manufacturer of PC microprocessors, nered with German sportswear brand Adidas
has extended its brand into many computer to create a new brand called Adidas Yeezy.
brands like HP and Asus. Dolby Atmos, an This extension is not a typical line extension
expert brand in sound systems, has also by Adidas, but a prestige extension based on
extended into many smart speakers. This the contribution and involvement of Kanye
extension is often considered on a technical West. James Bond, a very well-known movie
and co-creation level for both brands to work franchise, also created the James Bond 007
together. Eau de Toilette which claims to embody the
unique duality of Bond’s character: a smooth,
irresistible combination of masculinity and
9.6.5 Prestige Extension sophistication.
This form of extension is often on an emo-

tional level, a collaboration between two 9.6.6 Customer-Based Extension
brands that have decided to work together. It
is very similar to the idea of expert expansion. This form of extension is closely related to the
However, this prestige brand extension is idea of category extension. However, instead
more emotional than technical. Park et al. of a different brand for a new market, the
(1991) demonstrated that functional (expert customer-based extension creates new prod-
ucts for a new customer base. For example, in tomers who want luxurious accommodation,
1886, Johnson & Johnson manufactured the others are for those who want a more extended
world’s first mass-produced, sterile surgical stay.
supplies, including sutures, absorbent cotton
and gauze. The customer base were medical
practitioners; however, they have extended 9.6.7 Geographical Extension
into consumer health products which target
different consumers, including children and Geographical extension is a form of exten-
women with their baby care, skincare and sion into a different market in a different
women’s health products. As illustrated in geographical location. Often, this is extend-
. Table 9.1, Marriott Hotel has 33 different ing into another country outside the brand’s
brands that are targeted towards different cus- country of origin. This form of extension can
tomer bases. Some hotels are created for cus- present brands in a different name in another
.. Table 9.1 Marriott Hotel brands
Brand type Hotel brands
Luxury Classic luxury The Ritz-Carlton

Bespoke and superb amenities and St Regis
9 services JW Marriott
Distinctive luxury Ritz-Carlton Reserve
The luxury collection
W hotels
Edition
Premium Classic premium Marriott hotels
Sophisticated and thoughtful Sheraton
amenities and services Marriott vacation Club
Delta Hotels
Distinctive premium Le Méridien
Westin
Renaissance hotels
Gaylord hotels
Select Classic select Courtyard hotels
Smart and easy amenities and Four points
services SpringHill suites
Protea hotels
Fairfield inn & suites
Distinctive select AC hotels
Aloft hotels
Moxy hotels
Longer stays Classic longer stays Marriott executive apartments
Amenities and services that mirror Residence inn
the comforts of home TownePlace suites
Distinctive longer stays Element
Homes & villas by Marriott international
Collections Classic collections Autograph collection hotels
Uniquely designed, each offering Design hotels
distinctive, luxurious experiences Tribute portfolio
Source: Marriott (2020)

9.7 · Advantages of Brand Extension
191 9
country. Lay’s, a brand owned by Frito-Lay, a 9.7.2 Saves Cost
division of PepsiCo is packaged as Walker’s
in the United Kingdom, Sabritas in Mexico, The strategic decision to extend the product
Tapuchips in Israel and Chipsy in Egypt. The line can save costs and further increase organ-
United Bank for Africa (UBA) Group, with isations’ profit. The brand can save research
a base in Nigeria, has extended its banking and development costs for a new product,
operations to 25 countries in Africa. This especially for a line extension. This is because
form of extension allows a product to be pro- the organisation can decide to use their exist-
duced or services provided in another country, ing facilities to produce a new product. By
reaching out to different customers. This, how- that, the brand will be saving costs on produc-
ever, comes with its challenges which include tion, promotions and distribution. The new
understanding the consumer behaviour in brand can rely on brand awareness and adver-
that country, the regulations, marketing and tising campaigns of the flagship brand. Brand
distribution of the new product. awareness becomes more relevant in franchis-
ing, co-creation and licensing arrangements
where the cost of advertising could be shared
9.7 Advantages of Brand Extension between the partnering brands.
Brand extension, if it is a reasonable progres-

sion, can be a smooth path for a brand. It also 9.7.3 Higher Patronage
has many advantages for the brand and its
stakeholders. Often, if a brand extension is With ease of entering the market with a new
done correctly, it will bring considerable ben- brand and existing brand loyalty and brand
efits to the brand. Some of these advantages awareness, comes higher patronage of the new
are discussed below. brand. Marketers accept to distribute the new
products, and likewise, consumers are willing
to patronise the brand. These loyal consum-
9.7.1 Market Entrance ers, with their continued interest in the parent
brand, ensure higher patronage of the new
If there is brand awareness and the brand has brand. There is a willingness to try a new
an established presence in the market, it product or service which has an established
becomes easier to enter the market with a new brand name. For example, the consumers who
product. The brand owner can build on exist- are loyal and want to be associated with
ing knowledge about the market structure, Tiffany will be more interested in having
regulations and distribution network to create breakfast at the Tiffany Blue Box Café inside
a new brand for the market. This market Harrods.
entrance may not be easy for a new brand that
needs to explore distribution and marketing
strategies. For example, Colgate can build on 9.7.4 Perceived Quality
its existing distribution channel to sell their
new flavour of children’s toothpaste or a new Consumers that have experienced the flagship
design of toothbrush, and the brand has brand are more likely to transfer such per-
already built some equity to justify their posi- ceived quality to the new brand. For example,
tion in the market. The entry into the new if the perception of Ferrari sports cars is
market also comes with financial benefits and strength and durability, such perception can
sales as it increases market coverage, bringing be transferred to their suitcases. There is less
new customers to the brand. perceived risk. The consumers trying the new
brand are assured that the flagship brand was of the product. The cost of marketing and
good; therefore, the new brand will be okay. advertising may never be recouped.
What the brand is known for, comes into play
at this level. The consumers are ready to take
a leap of faith with the company and buy the 9.8.2 Negative Attitude
brand’s new product based on the fact that the
company is already known for quality, dura- Unsuccessful brand extension can hurt the
bility and anything else that appeals to the flagship product, especially if it is a growing
customer. brand. Consumers are likely to see the brand
as a failure. The customer may develop a neg-
ative perception of the quality and sustenance
9.7.5 Enhanced Brand Image of the brand. Likewise, there is the possibility
that consumers will feel the brand is only
This perceived quality of the new brand can about making a profit, and that is why they
also enhance the image and awareness of the are extending into different areas, especially
parent brand. The flagship brand is now seen for the non-complementary category exten-
around the world, in association with differ- sion.
ent brands and co-creations of many other
brands. This awareness and the increasing
large portfolio of brands build the equity of 9.8.3 Brand Dilution
9 the brand, which can present value to the con-
sumer and the brand owners. Many other The eagerness to expand without proper plan-
brands will want to be associated with this ning may cause a dilution of the flagship
brand. This association could be in the form brand. Consumers no longer trust the flagship
of licensing or franchising. These associated brand as it indicates that the brand is con-
brands will benefit from the increasing equity fused and do not know what they are doing.
of the brand. The loyalty that has been built over the years
may disappear and hurt the equity and image
of the brand.
9.8 Disadvantages of Brand
Extension
9.8.4 Consumer Alienation
The fact that many brands are extending their
brand is not a guarantee of success. Brand Brand consumers may be alienated by a brand
extension is a strategic decision that may fail extension. When consumers cannot see a con-
and impact the flagship brands if not done gruency between the flagship brand and the
correctly. This section highlights some disad- new brand, they are more likely to ignore the
vantages of brand extension. brand. Extending the brand name and creat-
ing too many brands may lead to a loss of reli-
ability. The brand association is weakened,
9.8.1 Loss of Investment the loyalty is reduced and brand equity is neg-
atively affected.
Like any business decision, brand extension
comes with risks, especially if the brand is not
well prepared for the expansion. Perhaps there 9.8.5 Cannibalisation
is little brand awareness and loyalty or the
market is not ready for such a product. This An extension can become very popular and
unsuccessful brand extension can lead to loss overshadow the parent brand. This situation
of investment in the design and development is described as cannibalisation. Aaker (2013)
9.9 · How to Extend a Brand
193 9
underlines that the success of an extended Sensodyne is extending its line into the chil-
brand cannot compensate the damage pro- dren market by producing toothpaste for chil-
duced to the original brand’s equity. For a dren with sensitive teeth; Sensodyne can
cannibalised flagship brand, we see the produce this new toothpaste itself, they have
extended brand is now almost in a competi- the capabilities and production line to do so.
tion. For example, Old Navy, founded in 1994 Similarly, a hotel brand that is developing a
as an extension of the GAP. In 2019, new budget hotel brand can still run this new
According to Statista (2020), there were 675 hotel itself. In this case, they do not have to
Gap stores in North America while there are outsource the production to another company
1207 Old Navy stores in North America. Here (. Fig. 9.2).
we see an extended brand doing much better
than the flagship brand. Gap has been closing
stores while its Old Navy brand has plans to 9.9.2 Co-Creation
open more new locations. It was not surpris-
ing to see GAP nurturing the idea of splitting This form of market entry is relevant for co-
Old Navy off into its own publicly traded created brands, especially, for a prestige brand
company but the idea was latter drooped in extending into a different domain. This co-
January 2020 as the company plans move branding is also called brand bundling or
forward to find a new path to growth. brand alliances—which occurs when two or
more brands are combined into a joint prod-
uct or are marketed together (See . Fig. 9.2).
9.9 How to Extend a Brand This co-creation could also be in the form of a
joint venture or strategic alliance. For exam-
There are many types of brand extension, as ple, Kanye West and Adidas have partnered to
previously indicated. However, there are many create Adidas Yeezy. Kanye West does not
ways of achieving these extensions. make the sneakers; Adidas does this using its
production line. They cannot call it their line
extension because another brand is involved.
9.9.1 Parent Brand Extension Likewise, for the Tiffany Blue Box Café inside
Harrods, services will more likely be provided
The parent brand achieves this form of exten- by Harrods’ staff trained in Tiffany’s brand.
sion. Here, the parent brand is responsible Rimowa and Dior partnered to design and
and able to produce a child brand. This mode develop a personal clutch. However, both
of extension and market entry primarily brands’ names are on it, and the capsule col-
involves the line extension. For example, lection was created together with legendary
Brand Owner
Co-Created
Brand
Flagship Market
Brand Owner Audience
Brand
Extended
Brand
.. Fig. 9.2 Co-created brands. (Source: Author)

Dior Men’s Artistic Director, Kim Jones, but 9.9.3 Licensing and Franchising
produced by Rimowa who has the production
line to achieve that. The arrangement of this This entry mode is a marketing process
production is left to both partners. whereby a brand can use the trademarked
There are many benefits of this co-creation assets of another brand. Often the owner of
strategy for brand extension. Partners can the trademarked assets is paid in the form of
benefit from the other’s expertise. Kanye West licensing fees. As illustrated in . Fig. 9.3,
benefits from the expertise of Adidas to Licensing involves contractual arrangements.
develop the Adidas Yeezy brand. Likewise, Franchising is a form of licensing and occurs
there are possibilities of leveraging on the where a company already has a well-devel-
equity that a partner does not have. This oped business model (Ludvigsson- Wallette
arrangement is often beneficial to a smaller and Lawrence 2020). We can describe fran-
brand collaborating with a well-established chise as a licence that a party (franchisee)
and well-known brand. Importantly, there are acquires to allow them to have access to a
reduced production costs for both parties as business’s (franchisor) proprietary knowledge,
they can share production and marketing processes and trademarks in order to allow
costs. It also brings additional income for the party to sell a product or provide a service
both parties. under the business’s name. Therefore, licensing
Notwithstanding these benefits, there are and franchising are two similar words that are
also challenges with this type of arrangement. often used interchangeably by brand manag-
9 With two or more parties involved, there is a ers and marketers. These two words are simi-
loss of control, and this can affect brand lar because their principles often overlap but
equity. Not providing solutions to the issue of they are still different in terms of technical
control and responsibilities can lead to nega- and legal details; however, in the case of intro-
tive feedback on both brands, and this can ductory brand management, we assume they
cause organisational distraction. Brand man- are the same. The new brand (through the
agers need to be mindful of whom they part- licence holder) can use the images, brand
ner with and discuss all necessary strategic names and other intellectual property of the
decisions that need to be made (. Fig. 9.2). asset owners to attract a new market audience.
Licence Licenced Market

Holder Brand Audience
Licence/
Franchising
Brand Owner Flagship

Brand Market
Audience
Extended
Brand
.. Fig. 9.3 Brand licensing and franchising. (Source: Author)

195 9
This arrangement is often used by brands Games (Rovio’s Angry Birds) and Movies
which need to enter a new market without (Star Wars, James Bond) can also license the
incurring the costs of setting up locally and use of their brand name.
any additional costs. Such arrangements offer Here are some key points in relation to
intellectual assets to a suitable partner in the these arrangements:
new market. Licensing benefits the licence 1. Consumers will see the licensed brand as
owner who can extend its brand into different the same as the parent brand and may not
countries and it can benefit from the brand be able to differentiate, provided the
equity of the parent brand to succeed in a new licence holder has followed the agreed for-
market. When CYBG bought Virgin Money mulae and structure. This arrangement is
in 2018, the arrangement was to use the Virgin also to the benefit of the holder who enjoys
brand name as the new name of the brand the equity of the licence owners to sell the
while CYBG operated the financial activities. brand.
CYBG had to licence the Virgin Money brand 2. The licence holder may not be limited to
for £12 million a year initially, going up to £15 just the licensed brand. Coca-Cola Amatil
million in the fourth year and pays additional bottles other beverages such as Kirks and
royalties equivalent to 1% of revenues from Mount Franklin, but they will not bottle a
the fifth year. The royalties go to Richard competing brand. A college in Asia deliv-
Branson, who owns the Virgin brand. ering a course from the United Kingdom
While the Coca-Cola carbonated drink may deliver another course from an
product is uniformly presented around the Australian or American university.
world, it is produced by different licensed bot- 3. There is a territorial arrangement between
tling companies. Coca-Cola Company only the licence holder and licence owner. This
produces syrup concentrate and shares this territorial arrangement is often to protect
with licensed bottling companies which hold the business interest of the licence holder,
exclusive territory contracts with Coca-Cola. which is assured that its licence will solely
These licensed companies produce the drink provide the brands for that territory.
from the concentrate in cans and bottles and 4. The duration of the licence agreement
sell it to retailers. Coca-Cola Amatil acquired needs to be agreed on. However, there is
the Northern Territory Coca-Cola franchise potential for an exclusive long-term agree-
in 2004, positioning them as the sole licensee ment. In 1919, Europe welcomed the first
of Coca-Cola products in Australia. Coca- Coca-Cola bottling plants to Paris and
Cola Amatil is one of the world’s larger bot- Bordeaux in France. Coca-Cola Amatil
tlers of the Coca-Cola Company range acquired the Northern Territory Coca-
operating in six countries—Australia, New Cola franchise in 2004 and is still bottling
Zealand, Indonesia, Papua New Guinea, Fiji up until now.
and Samoa. Some other licensed bottlers are
Coca-Cola European Partners PLC in
Western Europe and Coca-Cola FEMSA in 9.9.4 White and Private Labelling
Mexico.
UK universities have also licensed their If a well-known toothpaste company wants to
courses to be taught in other countries. This extend its brand by making toothbrushes and
licensing arrangement allows international it does not have the production lines to do so
students to be taught and awarded UK uni- (perhaps they only have the production line to
versity degrees in their own countries. make toothpaste,) they might outsource the
Extended
Brand
White Labelling Market

Brand Audience
Flagship
Brand Owner
Brand
.. Fig. 9.4 White labelling brands. (Source: Author)
toothbrush production to a company in new product for them, which they will sell
China. The company would then put the under a new brand name called Dentalux.
brand identity of this well-known toothpaste There are often concerns over the quality of
company on the toothbrushes. This arrange- store brands. Some consumers feel a known
ment is the basic concept of white labelling brand (like Colgate Toothpaste) is better than a
(See . Fig. 9.4). It is a legally binding busi- store brand (Dentalux). Most PLBs are priced
ness agreement which allows a product or ser- below the known brands, but changes in store
9 vice to be sold and rebranded under another branding strategies have encouraged premium
company’s brand. White labelling is not lim- PLBs (Mogaji et al. 2018). Sainsbury has Basics
ited to a product as services can be white PLB and Sainsbury’s Taste the difference as a
labelled too. premium PLB. ASDA Smart Price is a PLB,
There are many white label energy compa- but ASDA Extra Special range is a premium
nies in the United Kingdom (Farinloye and PLB. PLB is known to increase consumer price
Mogaji 2019). In the United Kingdom’s retail sensitivity and spur manufacturers to spend
energy market, an organisation that does not more on their brands (Bockholdt et al. 2020).
hold a supply licence can work with a licensed The key points here are as follows:
partner supplier to offer tariffs under the 1. White labelling is often a business secret as
white label brand. British Gas partnered with brands may not want consumers to know
Sainsbury’s to create Sainsbury Energy which that it is a white label. Likewise, the manu-
is a white label of British Gas. Local authority- facturer may not want to disclose that they
led energy services company (LESCo) can do white labelling for other brands.
also create a white label energy company Kellogg’s once wrote on their packaging
based on the services of an existing energy that they are so proud of their cereals they
partner (Mogaji et al. 2020). The websites of do not make them for ANYONE ELSE.
these white label energy companies often 2. The white labelling company (let us say the
share the same layout and structure, allowing toothbrush manufacturer in China) can as
each brand to make little changes. well, make many other white labels for
Private label brands (PLBs), also called other toothpaste brands that are extending
store brands are brands owned by a retailer or into the toothbrush market.
wholesaler (Porral and Levy-Mangin 2016). To 3. There is an agreement on the specification
further illustrate with another toothpaste of the white labelling. Therefore, even
example, Lidl, a retail store in Europe may though a manufacturer is producing white
want to start selling its brand of toothpaste. labels, consumers may experience different
However, they do not have a production line. quality. Colgate may inform the manufac-
They may, therefore, reach an agreement with turer to make theirs with better material
Colgate, who has the production line to create a
197 9
Flagship
Brand Owner Brand
Market
Audience
Extended
Acquired Brand
Brand
.. Fig. 9.5 Acquired brands. (Source: Author)
while another brand may not be that they acquired Fitbit, an existing brand.
focused on the quality. Likewise, when Coca-Cola wanted to extend
into the smoothies’ market, they decided
These white labels offer a more accessible to acquire Innocent Drink. The Coca-Cola
option for a parent brand to extend, create or Company also acquired Costa Limited, the
co-create a new brand. The brand using the United Kingdom’s biggest coffee chain from
white label does not have to manufacture the Whitbread PLC to enter the coffee retailing
product from scratch, they save money on business and further diversify from carbon-
research and development, and it gives them a ated drinks.
competitive edge as they can pass the savings Acquisitions allow easier and faster access
on to the customers. The negative side, how- to a market provided the parent brand has
ever, is that the new brand may not be unique, the financial capabilities. The parent brands
as it is often from a template used for many do not need to invest in developing a new
other brands. Likewise, the parent brand has product, and they do not need to invest in
little control over the quality of the brand, creating awareness about the brand as the
and this may have an impact on the parent acquired brand has already got loyal custom-
brand. So, this type of white label is a double- ers and brand awareness (See . Fig. 9.5).
edged sword that could make or break a com- However, there could be some setbacks in
pany (. Fig. 9.5). mergers. These might come from the share-
holders or the customers. The hostile take-
over of Cadbury, the UK-listed chocolate
9.9.5 Acquisition maker, by US food company Kraft Foods
had to be discussed at a parliamentary select
Brands considering entering a new mar- committee. Consumers, shareholders and
ket that do not have the production line or regulators were keen on keeping Cadbury as
resources may decide to acquire a brand and a British brand, and this led to an overhaul of
bring it under the parent brand to manufac- the United Kingdom’s takeover rules. In
ture that product (Damoiseau et al. 2011). September 2005, eBay acquired Skype for
To illustrate this, Colgate may decide to ter- $2.6 billion intending to integrate it into their
minate the white labelling agreement with the website to aid communications during the
Chinese toothbrush manufacturer and decide auction. However, consumers did not find it
to acquire a toothbrush manufacturer which necessary for conducting auctions, and the
will bear the Colgate brand, and solely make rationale for the purchase disintegrated.
Colgate branded toothpaste. Google wanted Skype was later sold to Microsoft in May
to enter the fitness tracking market to com- 2011 for $8.5 billion (. Fig. 9.6).
pete with the Apple watch. Instead of start- This section has discussed five different
ing from scratch to develop a new brand, ways to extend brands, which can also be
1988 - Giorgio Armani.

1992 - Brooks Brothers
1997 - Bvlgari
1999 - Chanel
2003 - Prada Group
2009 - MACYS 2003 - Versace
2014 - Google and Intel Licensing 2005 - DKYN
2016 - Intel Partnership LUXOTTICA Agreements 2006 - Dolce & Gabbana
2016 - Galeries Lafayette 2006 - Burberry
2007 - Ralph Lauren
2008 - Tiffany
2009 - Tory Burch
Acquisition 2012 - Coach
2015 - Michael Kors
2017 - Valentino
Eyewear Brand Retail Stores
1990 - Vogue Eyewear 1995 - LENSCRAFTERS

1995 - PERSOLE Eyewear Brand 2001 - SUNGLASS HUT
1999 - RAY–BAN 2003 - OPSM
2007 - OAKLEY 2004 - COLE NATIONAL
2012 - TECNOL 2005 -Xueliang
2013 - ALAIN MIKLI INTERNATIONAL 2005 - Ming Long
2016 - SALMOIRAGHI & VIGANÒ 2005 - Modern Sight.
2018 - FUKUI MEGANE IN JAPAN 2011 - Multiópticas Internacional
2019 - BARBERINI S.P.A. 2012 - the Sun Planet
2014 - GLASSES.COM
2017 - ÓTICAS CAROL
9 .. Fig. 9.6 Brand extension strategies of Luxottica. (Source: Author)
.. Table 9.2 Summary of different ways to extend brands
Type of entry Description Example
1 Sole creation We produce our extended brands Colgate producing Colgate kids and
ourselves. Colgate sensitive
Coke producing Coca-Cola energy drink
2 Co-creation We produce our extended brands Rimowa producing the Dior and Rimowa
by ourselves on behalf of our capsule collections
other partners. Adidas producing Adidas Yeezy
3 Licensing and We produce our brands with a Coca-Cola Amatil producing Coca-Cola
franchising licence from the brand owner. in Australia
The University of Sheffield international
college preparing students for the
University of Sheffield
4 White label We produce these brands on behalf Another brand producing the Colgate
of another brand which we may toothbrush
not disclose. Angelic energy as a white label from
Robin Hood
Energy
5 Acquisition We produce these extended brands Coca-Cola acquired innocent juice to
for the parent brands that acquired extend their brands beyond a carbonated
us. drink
Google acquired Fitbit to enter the fitness
tracking market
199 9
Case Study 9.1: Luxottica
Luxottica is an Italian eyewear conglomerate retail presence by entering the sun segment
and the world’s largest company in the eyewear with the purchase of Sunglass Hut, one of
industry. It is based in Milan, Italy. The brand the significant premium distributors of
expanded its portfolio over the years through sunglasses in North America, Australia and
four different routes. the United Kingdom. In 2003, Luxottica
1. Licensing agreements with different eyewear acquired OPSM, leading eye care and eye-
manufacturers and designers. The first wear retailer in Australia and New Zealand.
agreement was with Giorgio Armani in Luxottica further expanded its retail pres-
1988, which marks the creation of a glob- ence in North America with the acquisition
ally important licence portfolio for the of Cole National, which included Pearle
brand. The brand has the licence for brands Vision, Sears Optical and Target Optical
including, Burberry, Bulgari, Chanel, store chains. Luxottica entered the optical
Coach, Dolce&Gabbana, Ferrari, Michael retail business in China by acquiring
Kors, Prada, Ralph Lauren, Tiffany & Co., Xueliang Optical chain in Beijing, Ming
Valentino and Versace. Long Optical in Guangdong and, a year
2. Partnership with other companies. Luxottica later, Modern Sight Optics in Shanghai.
partnered with technology companies like Through a rebrand, the stores changed
Intel and Google and retail stores like Macy their names to LensCrafters, which has
in the United States and Galeries Lafayette become the leading retailer in the eyewear
in France. In 2015, Luxottica signed an segment in China.
exclusive agreement with Macy’s, one of the
major department stores chains in North With this massive list of licensing, partnership
America, to open new LensCrafters stores and acquisition (See . Fig. 9.6), it is essential
inside Macy’s locations around the United to recognise the role of brand equity, both for
States. Luxottica also signed an agreement Luxottica and for other partners. Luxottica has
with Galeries Lafayette, the leading depart- its own brand equity, but with regards to the
ment store in France, to open Sunglass Hut licensing agreement, they must negotiate with
stores inside Galeries Lafayette and BHV the designers on the cost of licensing. Giorgia
Marais. In 2016, Luxottica (through the Armani will charge a fee and likewise Tony
Oakley brand) partnered with Intel to Burch, but these fees will vary depending on
develop the Oakley-branded smart eyewear the brand equity and the value of the brands
that features a real- time, voice-activated coming into the partnership. Taking into con-
coaching system to improve training and sideration the brand equity of Luxottica, they
performance for runners and cyclists. may have some bargaining power, which a new
3. Acquisition of eyewear brands (to manufac- brand, looking for licensing agreements may
ture its brands of eyewear). In 1990, not have. Many other designers, recognising the
Luxottica acquired Vogue Eyewear and impact of Luxottica in eyewear may be eager to
expanded its presence in the fashion and work with them and may, therefore, reconsider
lifestyle sector. In 1999, with the acquisi- their royalty fee for such agreements. This high-
tion of the eyewear division of Bausch & lights the importance of brand equity for both
Lomb Inc., the Ray−Ban, Revo, Arnette the brand owner and the licensee.
and Killer Loop brands entered the Group’s
portfolio. In 2007, Luxottica acquired zz Reflective Questions
California-based Oakley Inc., strengthen- 55 Why do you think Luxottica has been suc-
ing its portfolio with one of the most iconic cessful in their expansion through various
brands in sports and performance. acquisitions and licensing?
4. Acquisition of retail stores (to sell the eye- 55 How do you think another brand in a dif-
wear). In 2001, Luxottica strengthened its ferent sector can adopt this strategy?
Case Study 9.2: Jay-Jay Okocha
Jay-Jay Okocha is a former professional foot- 2. Licensing his brand name to Reebok to
baller, and he can be considered as a human make the shoes and sell them. In this case,
brand with the possibility of extending into he might not be involved in the design and
other brands beyond sports. Humans can development of the shoes.
grow their brands by co-creating and partner- 3. Private labelling whereby his brand name
ship with other brands. Brand extension is not will be on the shoes. He will be solely
only limited to physical products or services. responsible for the marketing and sales.
There have been various examples of celebri- Being a recognised human brand is an
ties who have tried to integrate and extend advantage for Okocha to expand his brand;
their brands. it is, however, essential to acknowledge that
Following on from Case Study 1.2 in his name and brand identity alone may not
7 Chap. 1, Olalekan Akinyele, Creative guarantee sales. Many people may not buy
Director and brand enthusiast, illustrated and a poor-quality product even if it has the
proposed different brand extension strate- name of the best footballer in the word, and
gies for Jay-Jay Okocha. Extension prospects that is where brand management comes in.
included branded shirts, branded footwear Nevertheless, there is an added advantage
and branded fashion and clothes lines. As of and opportunity for a human brand like
August 2020, there is no indication that Jay Jay Okocha to extend his brand (. Figs. 9.7,
9 has extended his brands in that way. 9.8, and 9.9).
From different examples of brand exten-
sion discussed in this chapter, the critical strate- zz Reflective Questions
gic decision for Jay-Jay Okocha here is to decide 1. Why do you think many human brands like
in which brand he will put his brand identity. celebrities are extending their brands into
From a human brand perspective, this could different products?
include: 2. For those human brands not extending
1. Co-creating footwear with a known brand their brands, like Jay-Jay Okocha, what do
(maybe Reebok from his days at Bolton you think could be the challenge in extend-
Wanderers FC), possibly targeting millen- ing their brand?
nials and football fans in Africa and then 3. What other ways can you suggest for Jay-
expanding globally. Jay Okocha to extend his brand?
.. Fig. 9.7 Proposed branded shirts as a form of brand extension for Jay-Jay Okocha. (Source: Olalekan
Akinyele)
201 9
.. Fig. 9.8 Proposed branded footwear as a form of brand extension for Jay-Jay Okocha. (Source: Olale-
kan Akinyele)
.. Fig. 9.9 Proposed branded fashion and clothes lines as a form of brand extension for Jay-Jay Okocha.
(Source: Olalekan Akinyele)
described as market entry methods. research into brand partners to understand if

. Table 9.2 presents a summary of the meth- they have shared values and ideologies. The
ods with examples. results of this research should provide empiri-
cal data upon which the brand manager can
decide.
9.10 ey Considerations for Brand
K
Extension
9.10.2Starting Small
Brand extension is essential for a brand’s
growth. When the opportunity presents itself, If the decision has been made to start a new
the brand manager should explore it. However, brand as an extension, then the brand man-
here are some key considerations for brand ager may want to consider starting small. This
owners and brand managers as they explore small start will most likely be a form of line
the brand extension possibilities. It is essential extension. A line extension is an extension the
to recognise that brand extension is not just brand should be able to manage along with its
limited to big and corporate brands; small flagship brand. They have the required level
businesses can expand their business lines; of competencies, consumer base and distribu-
charity organisations can do likewise. However, tion network to begin. This extension may be
this should be considered strategically to avoid a more natural and safer way of creating more
any negative impact on the flagship brand. visibility within the market. The brand can
9 use this extension to build more awareness
and loyalty, which will be beneficial when
9.10.1Justifiable Reason entering a new category and market. The most
important thing to consider here is starting
The brand managers need to ask whether a from an experienced point of view, and then
brand extension is needed or not. The same possibly extending the business to unknown
brand manager must also be able to answer if and undiscovered territories.
a brand extension can be justified at a point in
time. The fact that many brands are doing it
does not mean all brands must do it. The 9.10.3Brand Structure
brand extension may be too early for some
brands, and therefore, they may need to build The brand manager needs to ensure that the
their competency, awareness and loyalty. The brand extension aligns with the structure of
structure of some brands may not provide a the brand. This alignment may include
justifiable reason for considering an exten- exploring how the extended brands will fit

sion. For example, charity organisations may into the existing brand lines and the philoso-
want to entirely focus on their mission, keep- phy of the parent brand. Many charity brands
ing their flagship brand as a charity providing have a range of licensed products, which they
the needed assistance and may not want to use to generate income. Children in Need has
distract themselves with extension into the Pudsey Bear, which has been licensed
another territory. They may lose their reputa- across different merchandise and generates
tion and credibility. Brands need to be sure income for the charity. It is, however, impor-
that the extension aligns with their core val- tant not to get distracted from the essence of
ues, objectives and ethics. Brand research is the brand, diluting their core messages and
also essential in justifying the decision for an losing the trust and loyalty of their donors.
extension. The research may be in the form of There should be a perceptual fit between the
a brand equity evaluation to understand the flagship brand and the extended brand. The
level of brand awareness and loyalty. The consumers must perceive that the new brand
research can also explore consumer and mar- is consistent with the values and ideologies of
ket expectations. Brand managers should also the parent brand. The extended brand should
9.11 · Conclusion
203 9
reinforce the essence and promise of the flag- same shade of red and yellow on their logo.
ship brand. Colgate, a brand well known for The brand manager needs to consider if the
its oral care products extended into the food extended brand will use a name related to the
market with Colgate Kitchen Entrees which flagship brand, or if it will use another name.
are frozen ready meals, and this was later If transferring to another country, will it
scrapped due to brand confusion. Microsoft maintain the flagship brand name or adopt a
researchers were developing a bra with sen- different name, in the way that Burger King in
sors that could monitor a woman’s emotional the United Kingdom is Hungry Jack’s in
state to combat overeating, Microsoft, how- Australia. How about if it is a co-created
ever, says it has no plans to make the bra into brand, whose name will be used for the brand,
a commercial product. Air Jordan is made by Nike and Adidas Yeezy
While brands may want to be innovative and is made by Adidas. Adidas Yeezy however has
explore the market, they may, however, lose a touch of Kanye West in the name. If licens-
credibility if they extend too far into an unre- ing, how will it be arranged? Some of the
lated market. Brand managers need to do their hotels in the Marriott brand have By Marriott
research to understand how far they can go with in their name, and perhaps this is an arrange-
their products and make an informed decision. ment to reinforce the Marriott brand as part
of the extended brands. The naming structure
is something that should be well explored by
9.10.4Marketing and Distribution the brand manager.
With the new brand now gone through

research and development, the brand man- 9.11 Conclusion
ager needs to consider how to market and dis-
tribute the brand (Lee et al. 2019). The Brand extension is about using an established
manager needs to consider the mode of entry brand to create another brand that is targeted
for the new brand and how soon the product towards a different market category. This is an
can be made available. If it is line extension, important and essential marketing strategy
they may want to use the existing distribution (Pourazad et al. 2019). The brand manager
network. If they are licensing it to another should consider it as they plan to grow the
company in another country, how will that be brand and remain profitable. Brand managers
arranged? What are the checks that need to be may also consider extending into different
done to ensure that the licence holder is pro- countries to increase their sales and get more
ducing the brand to the given and expected visibility. Likewise, there could be an
standard? In the case of co-creation, how will opportunity to work with well-established

the product and agreement be managed? Can and reputable brands to co-create another
two brands in the same market be managed? product. The potential and opportunities are
Has the brand got the resources to manage huge; however, the success of this arrange-
these growing brands? These questions and ment cannot be guaranteed.
ensuing discussions are essential for a success- Brand managers should be able to justify
ful brand extension arrangement. their decision to extend their brands (Hassan
et al. 2019). This justification is needed
because brand extension may not be necessary
9.10.5Name Selection for some brands, while others may need to
start with a simple line extension. The brand
The brand manager needs to consider the manager needs to ensure a perpetual fit
brand identity for the new brand (Iglesias between the extended brand and the flagship
et al. 2020). As we saw earlier with Lay’s brand. This fit idea further raises concern
potato crisps, different names are used in dif- about the mode of entry of the new brand—
ferent countries, but they still maintain the especially if the extension is into a non-
complementary market. The brand manager

needs to be assured that they are not over- Humans can extend their brands into
stretching the brand in order not to lose cred- perfume and clothes lines.
ibility and alienate the customers. 55 Brands considering extension may need
Building brand awareness and loyalty are to start small with what they can man-
essential in guaranteeing a successful brand age. This small start could be a simple
extension (Anselmsson et al. 2017). Brand line extension.
extension is not limited to big and private 55 There are other ways of extending the
brands or products or services. Charity organ- market; they include co-creation, licens-
isations, small businesses and humans can also ing, franchising, white labelling and
extend their brands. However, an understand- acquisition.
ing of scope is necessary. Brand extension, 55 The brand identities of the new brand
though it can be lucrative, should not be rushed are essential. It’s necessary to consider
into. Managing the process well is essential. whether the extended brand will share
Consumers are interested in products that meet the parent brand’s name or use another
their needs, and brands need to innovate to name
meet these needs. There should be a match
between what the consumers want and what
the brand is offering. An extended brand ►►Student Activities
should also align with the values of the flagship 1. How would you describe brand extension?
9 brand, offer competitive leverage and positively 2. Why should a brand consider a brand
contribute to the equity of the parent brand. extension?
3. What are the advantages and disadvantages
of brand extension?
Key Points 4. How best can a charity brand extend its
55 Brand extension is a normal progres- brand?
sion for a valued and well-managed 5. Why might a brand extension fail?
brand. 6. What makes a brand extension successful?
55 Brand extension can increase market 7. What are the brand management implica-
share, visibility and guarantee growth. tions and considerations for UBA, a bank
55 Brand extensions offer a more natural in Nigeria trying to extend its banking ser-
and considerably cheaper way of enter- vices to France?
ing a new market. A brand can build on 8. What is the difference between a white label
their production and delivery expertise, and private label?
customer base and distribution net- 9. Are there ethical implications in white
work. labelling?
55 Brand extensions can fail. This failure 10. What is the implication of using a differ-
can affect the reputation of the parent ent brand name for an extended brand in
brand, losing their investment and another country? ◄
equity. Brand extension failure can con-
fuse and alienate customers.
55 Brand managers, therefore, should References
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207 10
Brand Mergers
and Acquisitions
Contents
10.2 takeholder Brands in Mergers

S
and Acquisitions – 209
10.2.1 T he Acquiring Brand – 210
10.2.2 The Acquired Brand – 212
10.2.3 The Merged Brands – 215
10.2.4 The Demerged Brand – 217
10.3 Brand Management Implications – 219

10.3.1 uestioning the Decision – 219
Q
10.3.2 Brand Leadership – 219
10.3.3 Brand Organisation and Architecture – 219
10.3.5 Brand Name and Identity – 220
10.3.6 Financial Implications – 222
References – 223

208 Chapter 10 · Brand Mergers and Acquisitions
10
Code arrives late the following week as they are both excited for Code and feel it will be a
have just attended a meeting. The meeting was worthwhile expansion of the brand, it is
about considering whether to acquire a small important to recognise that choosing to merge
consumer goods manufacturer that makes with another brand or acquire another brand
apple juice. Code initially planned on extend- can be a very difficult decision for a brand.
ing their existing product line, but then came While Code may be positive about the acquisi-
the opportunity to purchase the other com- tion, the staff of the brand being acquired
pany. This is a more natural way for the com- may have a different perception and even the
pany to enter the new market. However, Code shareholders may be reluctant. A successful
is concerned about the values and working brand merger or acquisition will require an
principles of the brand. Alex reassures Code effective brand management strategy to ensure
that it will be fine, that they barely knew each that all stakeholders are listened to and their
other ten weeks ago, but have now shared concerns are addressed. Ultimately the com-
experiences and they have shared values. Code mercial viability of the brand remains impor-
feels it is essential that the company is still well tant. For both a small brand like Code’s and a
positioned after the acquisition. Sam shares multinational global brand employing Sam,
their experience in acquiring a brand in a dif- there are key brand management implications
ferent country, and how it was hard work, but that need to be understood and addressed by
that the work paid off. While Sam and Alex all stakeholders.
10.2 · Stakeholder Brands in Mergers and Acquisitions
209 10
10.1 Introduction
Overview
To grow the brand, beat the competition According to Mergermarket, a leading pro-
and gain more market share, brands may vider of M&A data and intelligence, there
decide to acquire or merge with a competi- were 19,322 mergers and acquisition deals in
tor brand. In some cases as well, when a 2019 worth US$3.33 trillion. The average size
brand is no longer profitable, they may be of deals was US$389 million, with a disclosed
acquired by a bigger and more established value which was up from US$353 million in
brand. The management of this process is 2018 (Mergermarket 2019). Mergers and
critical, as it can influence the success of the acquisitions are a strategic decision that can
merger or acquisition. Brand mergers and also be referred to as brand transfer in some
acquisitions create multiple brand entities, cases. Brand mergers and acquisitions create
which are uniquely positioned and directed multiple brand entities which are uniquely
at a segment. This strategic decision brings positioned and directed at a segment.
the possibility of growth, but can mean Mergers or acquisitions can lead to the
streamlining the brand portfolio, reducing creation of worldwide companies. It is an
the number of brands and making the port- important strategic decision of companies
folio more manageable. In this chapter we aiming to reposition and remain viable (Lee
will explore branding from a holistic per- et al. 2011). Some mergers change market
spective, with a focus on brand manage- dynamics in ways that can lead to higher
ment. As many brands come together, prices, fewer or lower-quality goods or ser-
through merger or acquisition, there is a vices, or less innovation and this is the reason
need to manage these brands and integrate they have to be monitored, and in some cases
them accordingly. Mergers come with oper- investigated, by regulatory authorities. While
ational and financial challenges, but our mergers may be considered as a business strat-
focus here is the business challenges. Which egy for bigger brands, it is essential to under-
is to understand the motivation for mergers, stand that, smaller brands as well are not
understand the challenges and discuss how exempted from merging and the subsequent
to deal with them. branding challenges. Advertising agencies and
law firms can merge, and even charities can
merge. Both big and small brands can try to
? Key Question merge with complementary brands.
How do brands manage the process and As many brands come together and get
aftermath of mergers and acquisitions? acquired, there is a need to manage these
brands and integrate them accordingly.
n Learning Outcomes Hodgson (2017) note that behind every great
At the conclusion of this chapter, you will merger, there is a great merger branding strat-
be able to egy. In this chapter we explore the motivation
55 describe the concepts of brand acquisi- for mergers/acquisitions, the brand manage-
tion, merger and demerger; ment challenges and how to deal with them.
55 describe the stakeholder brands in
mergers and acquisitions;
55 recognise the benefits of brand acquisi- 10.2 takeholder Brands in Mergers
S
tion, merger and demerger; and Acquisitions
55 give examples of different naming struc-
tures for a brand after a merger; and For successful mergers and acquisitions, it is
55 explain the brand implications and role essential to have both parties on board, with a
of a brand manager in brand mergers shared interest and willingness for the deal to
and acquisitions. go through. Four key stakeholders could be
involved in mergers and acquisitions pro- API start-up Plaid. Access Bank, a Nigerian
cesses. They are: the brand that is trying to bank, acquired Kenya’s Transnational Bank.
acquire another brand, the brand being The top-tier Nigerian bank has operations in
acquired, merged brands, and demerged seven African countries, and this acquisition
brands. We will discuss these stakeholder further established their presence in new
brands below to gain a better understanding terrain but in the same market.
of their challenges and the brand manage- Sometimes, even when an acquiring brand
ment implications. has failed in an area of the market, they want
to acquire a more established brand to
strengthen their weak point. After Google’s
10.2.1The Acquiring Brand failed attempt with Google Glass, Google
acquired North, a pioneer in human-com-
This is the brand with the upper hand in the puter interfaces and smart glasses. Rakuten,
negotiation. This is the brand making a move one of Japan’s largest internet companies,
to acquire (buy) another company. The acquired Cyprus-based messaging platform
acquiring brand has a bigger say in the nego- and app maker Viber to “become the world’s
tiation. They can decide to retrench some No. 1 Internet services company.” Australian
brands (of the acquired brand), change the job board SEEK also acquired JobStreet, an
name of the acquired brand or close their online employment business with its head-
operations. Microsoft was the acquiring brand quarters in Malaysia.
when it bought LinkedIn. Likewise, Google
was the acquiring brand when it bought Extending into another Market
10 YouTube. The acquiring brand has a strategic A brand may acquire another brand to enter a
reason for making a move to acquire another new market. Rather than starting a new busi-
brand; often, this is to complement their ness or investing in research and development,
products and services. While it can be assumed they may decide to purchase another brand
that the acquiring brand will be bigger and with expertise in that area and that allows the
have more substantial equity, it may not acquiring brand to get a foothold in the new
always be the case. Kraft Heinz tried to market. For example, with Microsoft’s acqui-
acquire Unilever, a significantly larger com- sition of LinkedIn, they were able to extend
petitor in a proposed £115 billion bid which into the social media scene and did not have
would have been one of the largest deals in to worry about starting up a new company.
corporate history. Likewise, a smaller and less Foreign companies may buy a local company
known brand may decide to buy a bigger with the objective of entering a new market
brand. Even more so, a newer brand may be without investing in building the business
willing to acquire more established and older from scratch. eBay expanded into the Asian
brands. There are various possibilities and market through its acquisition of Gmarket,
motivations for acquiring brands. Korea’s leading online marketplace.
10.2.1.1Reasons for Acquiring Eliminate Competitor

Complement Existing Strength The acquiring brand may have noticed a com-
Often the main reason for a brand to acquire peting brand gaining recognition and market
another brand is to complement their existing share. If this competing brand is left alone,
strength; the acquiring brand wants to retain they may become bigger and overtake the
its position in the market and brings in other acquiring brand. Therefore, to eliminate this
brands to help achieve that. MasterCard, a competing brand, the acquiring brand decides
card provider, complemented their existing to acquire it and bring it under their brand
strength in financial services by acquiring a portfolio. This suggests that instead of both
tech-driven, open banking start-up company, brands competing, they end up working in
Fincity (a Utah-based fintech open banking synergy to gain a bigger market share. AB
firm). Similarly, Visa bought financial services InBev, a large brewing and beverage company,
211 10
acquired British multinational competitor Willingness to Be Acquired
SABMiller. Similarly, Ola Cabs in India What if the brand to be acquired objects to
acquired its smaller rival in the taxi aggrega- the acquisition? The acquiring brand may be
tor space, Taxi for Sure. Acquiring to elimi- interested in buying the brand, but the brand
nate a competitor may be restricted due to may not be willing to be acquired. This may
regulatory concerns and the implications for be because of possible legal implications
consumers and the market as this can change (antitrust laws); shareholders feel they are
the market dynamics and leave the consumers undervalued, or the public interest is not
with fewer options. aligned with the acquisition. If there are
objections, the acquiring brand may present
Diversifying Brand Portfolio an improved offer for the shareholders, high-
Brands can be motivated to acquire another lighting structural and organisational changes
brand in order to diversify their brand portfo- for the acquired brand. Cadbury workers
lio. This acquisition may not necessarily be from across the United Kingdom and Ireland
geared towards entering a new market but once protested to stop the hostile Kraft acqui-
towards expanding on what they have already. sition of the brand.
The acquiring brand can extend its brand
portfolio by buying other brands that are Duplication
closely related to their existing collections. While a brand may decide to acquire another
This acquisition fits with the current brand brand to complement its existing strengths or
architecture, and the brand can use its existing to diversify its brand portfolio, there is the
distribution network and marketing strategy possibility of duplications in the brand port-
to integrate the new brand. This allows for folio. This could be across the same market,
more sales and revenue with reduced expenses consumer group or country. Understanding
on distribution and marketing. Microsoft this challenge ensures an inclusive brand
acquired both UK-based firm Metaswitch architecture (Uggla 2006) to monitor the type
Networks and Affirmed Networks in the same of brands in the portfolio. For example, if a
year. These are companies which are brand owner already has a toothpaste brand
5G-focused, specialising in cloud-based com- in its portfolio and acquires another brand
munications software and so it was Microsoft’s that makes cosmetics but also toothpaste,
effort towards diversifying their brand portfo- there will be two toothpaste brands to be
lio, expanding their approach to empower managed by the brand. This duplication may
operators and partners with network equip- cause the brand owner to sell one of the tooth-
ment providers and deliver on the promise of paste brands or discontinue it. This can be a
5G. In a push to remain relevant in a smoke- strategic decision that is taken seriously and
free world, Altria, one of the world’s largest can be a difficult one. The management needs
producers and marketers of tobacco and ciga- to decide which brand to stop. In addition to
rettes, acquired a stake in Juul Labs, an elec- the duplication of brands, there will be dupli-
tronic cigarette company. cations of roles, two CEOs, two chairpersons
and many other overlaps. Likewise, there will
10.2.1.2Challenges for the Acquiring be factory duplication and this may necessi-
Brand tate the need to close some of the factories.
Acquiring a brand is not always easy. It is not These duplications will have strategic implica-
a guaranteed deal; many acquisitions fail to tions for the manager who needs to integrate
deliver on their projected benefits because and manage the brands and their assets.
many challenges can inhibit the process. These
challenges can come from the shareholders, Brand Damage
regulators, or the customers. This section Acquiring a brand can also damage the acquir-
identifies critical problems for acquiring a ing brand. This is crucial in cases where both
brand with the intention of expanding the brands do not share the same values and phi-
brand portfolio. losophy. The acquiring brand may think they
have a brand they could acquire cheaply and The Competition and Markets Authority
then expand their portfolio, but it can also come (CMA) of the United Kingdom will usually
with negative baggage and perceptions which investigate acquisitions if the business being
may be transferred to the new brand. It is there- taken over has a UK annual turnover of at
fore essential for brand managers considering least £70 million or the combined companies
acquiring another brand to ensure there are have at least a 25% share of any reasonable
shared values, and the acquisition of another market. This is to ensure that the acquisition
brand will not bring their brand into disrepute. is fair and not leading to a substantial lessen-
To compete with Google in the display advertising of competition within any market or mar-
ing business and help maximise the digital kets. Section 7 of the Clayton Act, which
advertising opportunity, Microsoft purchased defines unethical business practices, prohibits
Seattle-based advertising technology firm mergers and acquisitions when the effect “may
aQuantive for $6.3 billion in cash. It renamed it be substantially to lessen competition, or to
Microsoft Advertising, and this, however, did tend to create a monopoly.” The FTC chal-
not work out as planned. In understanding the lenged the Edgewell Personal Care Company’s
reason why, Bilton (2015) posited that advertis- proposed $1.37 billion acquisition of its key
ing was a bad fit for Microsoft’s culture and competitor, Harry’s, Inc. The Commission’s
business, as Microsoft, at its heart, is a software complaint alleges that the proposed combina-
company and was never a media company. tion would eliminate one of the essential com-
Google acquired Motorola with the promise of petitive forces in the shaving industry,
accelerating innovation and consumers getting subsequently, Edgewell terminated its merger
better phones at lower prices, but they did not agreement with Harry’s, Inc. In the United
10 live up to their promise. Google had to sell the Kingdom, the CMA blocked Sainsbury’s
brand they bought for $12.5 billion in May of acquisition of Asda Group.
2012, to Chinese PC maker Lenovo for $2.91
billion, 2 years later in 2014. Sterling (2014)
noted that Google had to simply cut its loses 10.2.2The Acquired Brand
and make peace with Samsung, its most impor-
tant Android partner, by no longer being a This is the brand that has been bought by the
direct competitor. acquiring brand. Often, they are smaller and
One thing to consider here is the fact that, are easily acquired by a bigger brand. Though
brand damage can lead to loss of customers, they may lose their identities, their sharehold-
dwindling quality, reduced brand trust and ers and investors are often well compensated.
brand loyalty (Chung and Kim 2019). Brand The acquired brand may remain in the market
damage can be caused by external factors for a while, but after some time, their brand
(such as sabotage or intentional misinforma- may be integrated into the acquiring brand
tion) or internal factors. The latter is the case portfolio. LinkedIn was the acquired brand;
when the communication of brand values is YouTube was the acquired brand. These
not coherent, or a company makes strategic brands were acquired because they have a role
mistakes. to play in the strategic position of the acquir-
ing brand. This, however, is not always the
Legal and Regulatory Limitations case as the anticipated role of the acquired
Legal and regulatory requirements can pose brand in the acquiring brand portfolio may
challenges when acquiring a brand. Often this not be feasible. eBay first bought Skype with
could be in a regulated industry or where the the hope of integrating it into their auction,
competition might be disrupted, and a but that did not work. It was later sold to
monopoly will result. The United States’ Microsoft. There are, therefore, implications
Federal Trade Commission (FTC) reviewed for the managers of an acquired brand as they
over a 1000 mergers in a year with the major- navigate the acquisition process and hope to
ity filings presenting no competitive issues. remain relevant.
213 10
10.2.2.1Reasons for Selling Repositioning the Brand
There are many reasons for selling a brand, On a positive note, a brand may decide to
and this decision is not made lightly but it is make a part-acquisition to streamline the
often strategic, for the positioning of the com- brands and make the structure more accessi-
pany. It is important to note that there may be ble and manageable. The brand is repositioned
many brands within a brand (we will discuss when a company decides to change a brand’s
this in the next chapter under brand architec- status in the common marketplace. This typi-
ture). cally includes changes to the marketing mix
As illustrated in the figure below, there and the 4Ps—price, place, production and
could be part-acquisition whereby a sub- promotion. Repositioning is done to keep up
brand is acquired by the acquiring brand and with consumer wants and satisfy all their
integrated into their existing portfolio. While needs. A brand that has acquired many sub-
GlaxoSmithKline is a big brand on its own brands over the years and across the world
with many other sub-brands, it sold off its may decide on a strategic direction to focus on
Horlicks drinks brand in India to Unilever. one type of product and therefore be willing
Also, there are possibilities for full acquisition to sell off some brands, even though they may
whereby the whole brand and its sub-brands be doing well. This is an attempt to reposition
are bought into the acquiring brand. Smaller, their brands, and often the acquired brand
stand-alone brands can be purchased in full has a bigger say and can command more value
by an acquiring brand and integrated with because they are not selling a non-performing
other brands like Facebook did with brand. They can dictate how much they want
WhatsApp and Instagram (. Fig. 10.1). and possibly sell to the highest bidder. For
Part Acquisition
(of sub brand)
Sub Brand
Main Brand
Acquired Brand Acquiring Brand Acquiring Brand
Full Acquisition
(of House of Brands)
Acquired Brand Acquiring Brand (Bigger) Acquiring Brand
Full Acquisition
(of single brand)
Acquired Brand Acquiring Brand (Bigger) Acquiring Brand
.. Fig. 10.1 The acquiring and acquired brand. (Source: Author)

example, Sainsbury’s supermarket sold its materials science (Dow), and a speciality
pharmacy division with 281 pharmacies to products company (DuPont). Likewise, when
LloydsPharmacy. AB InBev, a brewing and beverage company
acquired British multinational competitor
Non-performing Brands SABMiller; SABMiller had to sell its stake in
A brand may decide to make a part-acquisition the SABMiller and Molson Coors joint ven-
in order or let go of a non-performing brand. ture formed in the United States. This sale
There may be a sub-brand that is not be add- means that the market share of AB InBev
ing value to the bigger brand, and therefore the around the world has been reduced as Molson
management/brand owners decide to sell it off, Coors took full ownership of the Miller brand
perhaps to another company where it may fit portfolio outside of the United States.
in properly. Going the route of part-acquisition
may not be an indication of a financial prob- Global and Political Crisis
lem with the brand, it is often seen as a way of Many brands may put themselves up for sale
remaining financially sustainable. The acquir- to leave a country while it is still financially
ing brand may also be on the lookout for other possible to do so. This sale may be due to
vulnerable brands that may complement their political unrest in the country or changing
existing brand structure. Unlike selling a brand legislation. The law firm Baker McKenzie pre-
with the purpose of repositioning the main dicts that the merger and acquisition activity
brand, selling a non-performing brand may in the United Kingdom is likely to slip dra-
not command much negotiation power as the matically because of Brexit-induced uncer-
brand itself is already less valuable. tainty. Considering European laws may not be
10 Financial Difficulties
applicable in the United Kingdom, some cor-
porate organisations may decide to sell their
No doubt, brands can find themselves in brands to be protected by the right law in the
financial difficulties, and they need to make right place. Likewise, in global crises, like the
important strategic decisions. They may coronavirus pandemic, many brands will no
decide to go into administration and go bank- longer be sustainable and may consider selling
rupt which will have a lasting effect on share- off (Mogaji 2020). This is not through any
holders, customers and suppliers, or to get fault of their own, but unfortunately, they
acquired by another brand (King et al. 2004). might want to sell the brand. These vulnerable
The concerns here may be: whether there is companies can be acquired at a low price. It is
any brand willing to acquire the struggling not surprising to see that US lawmakers are
brand; if the acquiring brand is paying the planning to introduce a bill that would ban
right value for the brand and if the brand is company mergers during the pandemic crisis,
ready to be acquired and to relinquish all stopping companies “taking advantage” of
rights. Selling the brand may be a better the weakness in the economy to “prey” on
option than going into administration, but smaller and more vulnerable enterprises. The
the sale price will be quite low. proposed “Pandemic Anti-Monopoly Act”
would not allow mergers and acquisitions
Legal Expectations made by companies and financial organisa-
To make sure a brand is not too big after acqui- tions with more than US$100 million in
sition, the regulatory bodies may instruct the revenue or market capitalisation.
acquiring brand to sell off some of its assets
and brands. So these are acquisitions result- 10.2.2.2Challenges of the Acquired
ing from legal requirements rather than to Brand
streamline and position the brand. After the For a brand that is being acquired, there are
Dow and DuPont merged, they were expected many challenges for the management team,
to sell substantial assets, and they further sep- the staff, customers, shareholders, and regula-
arated into three independent, publicly traded tors. Depending on the type of brand, these
companies: agriculture (Corteva Agriscience), challenges may even be more severe.
215 10
Stakeholders’ Resistance 10.2.3The Merged Brands
For a bigger brand, shareholders may present
a resistance to the deal. They do not want to Merging is when two brands come together
lose out and may ask the acquiring brand to to form a new brand. In this case, both par-
increase their offer which they may not want ties have almost equal rights at the negotia-
to do and then the plan will fall through. For tion table. They can decide to share things
start-up companies with a smaller team of as equally as possible. The arrangement rec-
founders, it might be easy to acquire and make ognises that both brands are valuable and
a deal faster. For a charity organisation, the robust, so the negotiation and brand man-
stakeholders and the people they support, the agement take a different turn. Importantly,
trustee and regulatory bodies may challenge they could also be both weak brands with
the move, especially if they feel there are bet- plans to merge and become a stronger brand.
ter alternatives than being acquired. Brand management for merged brands will
involve managing the integration of both
Management and Staff brands, rejuvenating, and reintegrating the
For the management, there is the feeling of new brand. A merger is not limited to big cor-
not being able to salvage the situation and porations, start-up companies or agencies,
sustain the brand, mainly if a competitor charity organisations can merge to provide
within the market has acquired it. It can be better service and streamline their business
seen as a losing brand, but this is not always operations. In 2019, Leuka and Leukaemia
the case as the brand can guarantee its sur- UK merged, bringing together two of the
vival by getting acquired. There are also chal- United Kingdom’s leading leukaemia and
lenges with job losses. This is not just limited blood cancer charities to create one charity
to the brand managers working on these dif- dedicated to innovative research and care for
ferent brands, there are also implications for people affected by blood cancers.
the leadership team who may not get a seat in
the acquiring company. Many agencies linked 10.2.3.1Reasons for Merged Brand
to the acquired brand may also lose their Survival
account. Advertising agencies and branding Many brands on the brink of failure might
agencies working for this brand may not be decide to merge with another brand to guar-
able to provide the same services to the brand antee their survival. They may be forced by
in the acquired form. their shareholders to act and merge with
another company to increase their wealth,
Regulatory Expectations create more value by delivering cost savings
In the case of a hostile takeover, where the operations and make use of the combined
acquiring brand is making a hostile and inten- resources. This need to survive could also
sive effort to acquire the brand, the regulatory result from the future leadership direction of
authority can come on board to investigate the company. For example, a small family
the deal and make a decision. Similarly, the business owner who has not been able to
regulatory bodies can challenge the acquisi- identify a suitable successor may decide to
tion and disrupt the business arrangement, merge with another company, then cash out
perhaps if they feel the purchase will give too the investment and guarantee the continua-
much market control to the acquiring brand. tion of the legacy. It is, however, essential to
Delays in the merger and acquisition pro- carry out due diligence to understand the
cesses can cost both brands a considerable implications of the merger, especially with
amount of money in human resources manag- regards to financial records and the culture
ing the deals and on the stock market. of the organisation.
Synergies 10.2.3.2Challenges for Merged Brands

Brands may decide to merge to create a syn- Resistance from the Shareholders
ergy for their business, and they can become The resistance from shareholders is often rec-
stronger when they combine their strength, ognised as one of the key challenges of brand
ensuring their overall performance is more mergers, as the shareholders may not be will-
effective, saving costs and making the brands ing to let go of their shares in the company
more profitable. For example, two advertising and this may hinder the merger. Often the
agencies merging can bring in more clients, shareholders may feel they will lose their iden-
and they have more work to do and additional tity and values when they merge with another
resources at their disposal. They can expand brand. They may also feel there is no congru-
their service offering to reach out to more cli- ence between the two brands and therefore
ents. This can also be an effort to reposition resist the merger. In most cases, the brands
the new brand to have a more significant share may have to make some financial compromise
of the market; they become more recognisable to make shareholders agree to a deal.
and can influence supply chain management.
Kakao Corp, maker of KakaoTalk, South Due Diligence
Korea’s top messaging service and Daum, one The merger requires an understanding of the
of South Korea’s largest Internet portals, parties and brands involved, and that is why
merged to create one of South Korea’s largest due diligence is carried out. This may involve
internet companies, making it easier to com- brand evaluators and brand consultants (as
pete against Naver, South Korea’s largest previously discussed in 7 Chap. 1 under
internet portal. brand management stakeholders). These con-
10 sultants and the brand owners may have to
Going Global check the credibility and suitability of the
Brands can merge to expand their business merging brands. The fact that a company is
operations into another market and go proposing a merger does not mean it will
global. They can merge with companies in automatically go through. Due diligence
another country to create a much bigger mul- involves understanding the business opera-
tinational organisation. In November 2013, tions, the financial records, customers’ percep-
the Chinese-Australian firm KWM merged tion of the brands, the brand values and
with London law firm SJ Berwin to create a equity and if the brands are compatible in
$1 billion global business with 30 offices terms of strategic vision, culture, and gover-
comprising over 2700 lawyers and headquar- nance. This information is needed to make
tered in Asia. Such mergers can allow organ- sure the brands are making the right decision,
isations to have access to a global clientele, and possibly to convince the shareholders. In
through many offices and branches around some cases, brands end their merger plan
the world, increasing their global market when the results of the due diligence are not
share and brand awareness. convincing.
Eliminating Competition Regulatory Limitations

Brands can merge to eliminate competition, Even if the results of the due diligence are
the feeling of, why be enemies when we can be convincing and the brands see potential in
friends? They can both come together to posi- their merger, the regulatory body might still
tion themselves as the leader within the mar- pose a challenge. Like all mergers and acquisi-
ket. This is an effort towards consolidating tions that can shape the size and dynamics of
their businesses and gaining competitive the market, the regulatory authority can also
advantage. hinder a merger when they feel the new brand
217 10
will be too big and then create a monopoly. ket share. In 2012, Qantas announced changes
The regulatory body may ask the brands to to create four business units within the Qantas
sell off some sub-brands to diversity the mar- Group; Qantas International, Qantas
ket. This regulatory intervention is not limited Domestic, Jetstar and Frequent Flyer. Three
to companies and corporations. Charity years after the massive restructuring of the
organisations’ planned mergers may be scruti- business to reduce costs and increase effi-
nised by the Charity Commission to ensure ciency, the group posted a record underlying
that the new charity is in the best interests of profit before tax of AU$1532 million.
the organisation and its beneficiaries. Some brands may be expected to demerge
and break up the business into a small and
manageable brand for regulatory reasons.
10.2.4The Demerged Brand This demerging could either be for the brand
to function on its own, to be sold or liqui-
While new brands may be brought into the dated. For example, a local company could
fold, into the branded houses, some brands demerge from a parent multinational enter-
may be demerged and removed from the prise (MNE) to function as an independent
organisation. Brand demerger happens when company in the country. Openreach used to
a business sheds off one of its businesses/ be a functional division of British Telecom
brands to enable better management. This is (BT). It maintains the telephone cables and
also the business technique wherein a com- connects nearly all homes and businesses in
pany transfers one or more of its business the United Kingdom to the national broad-
undertakings to another company. This is a band and telephone network. Being part of
form of corporate restructuring to make the BT, the arrangement was considered a monop-
organisation more profitable. The quest to oly for BT, and it hinders competition and
demerge is often based on financial decisions, opportunities for other providers. The UK
especially when the brand is no longer finan- telecoms regulator, Ofcom had to mandate
cially sustainable (non-performing brand as a BT to separate Openreach and make it a legal
reason for brand acquisition), and no one is entity and separate from its parent with its
willing to buy it. So instead of servicing the own independent identity, employees and
brand, the business may decide to remove it board which could be regulated by Ofcom.
from the market. Openreach Limited is now wholly owned by
A brand can also be demerged if the cus- BT plc’s parent holding company, BT Group
tomers’ interest is declining, and the organisa- plc. This arrangement is like allowing a sub-
tion can no longer invest money in pushing brand to move out of the branded house and
the brand. Many food companies and restau- stand-alone as another brand (These concepts
rants have removed some brands and menus will be discussed more in the next chapter). As
from their offering because the products were of 2020, BT is now considering selling the
difficult to source and due to changing con- debranded Openreach.
sumer behaviours. Subway stopped offering Demerging has its challenges, especially
roast beef and rotisserie chicken while for shareholders who may be losing on their
McDonald’s National Owners Association investment, staff who may be laid off and cus-
took all-day breakfast off McDonald’s menu tomers who may no longer see and enjoy their
permanently. favourite brand. Brand managers will have to
The Australian airline Qantas separated engage with stakeholders and effectively com-
its international and domestic operations as it municate the brand’s action.
looked to restructure its business. The brand’s . Table 10.1 presents a summary of the
international operations were experiencing a stakeholder brands in mergers and acquisi-
downturn; meanwhile, its domestic operations tions.
were growing and enjoying a substantial mar-
.. Table 10.1 Summary of the stakeholder brands in mergers and acquisitions
Questions Acquiring brand Acquired brand Merged brands Demerged brands
Description Bigger brand going Smaller brands Almost the same sized Bigger brand splitting
out to buy a being bought by a brands coming and or removing a
smaller brand bigger brand together to be a bigger brand from its
brand portfolio
Motive Why acquire Why get acquired? Why merge? Why demerge?
another brand? To perform better To gain bigger market To restructure the
To complement on a larger share. brand
existing strength platform Customer and vendor To remove non-
To extend into Financial resources consolidation performing brands
another market Dwindling market To avoid being To acquire a new
To eliminate a share acquired brand that fits
competitor Dwindling brand Synergy and value To avoid being
To diversify the equity creation acquired
brand portfolio To revitalise brands For regulatory
reasons
Challenges No willingness to No willingness to Incongruent values How to divide
sell sell Duplication Management of the
Duplication Poor valuation Conflicting objectives division
Brand damage Resistance (staff, Resistance (staff, Brand damage
Perception as a shareholders and shareholders and Which brand to let go
10 hostile takeover regulators) regulators)
Ratio of mergers
Brand Integrating into Loss of brand Business and brand Restructuring into
management the brand portfolio identity synergy different brands
implications Duplicates Loss of brand Brand management Management of
Brand awareness Loss of brand Brand identity different brands
Brand architecture management team Brand architecture Brand identities
Consumers’ Consumers’ Brand philosophy
perception perception.
Ownership of Transfer of brand
brand assets, assets including
including patents patents and
and trademark trademark
Case Study 10.1
Odwalla is a beverage brand, which has been in company. Coca-Cola CEO James Quincey said
business for over 40 years but was acquired by smaller brands that account for over half of
the Coca-Cola Company for US$181 million in the company’s portfolio, only generate around
2001 as part of Coca-Cola’s push into the non- 2% of its revenue. Coca-Cola plans to discon-
carbonated premium drink market. Odwalla tinue more brands as they streamline their
became a wholly owned subsidiary of the business to ensure future sustainability.
Coca-Cola Company. However, in July 2020, it
was announced that the brand would be dis- zz Reflective Questions
continued. Citing changing consumer tastes, 55 D o you think it was a good business deci-
increased competition in the bottled smoothie sion for Coca-Cola company to debrand
and juice space, and the impact of the corona- Odwalla?
virus pandemic, it made business sense to dis- 55 Would you expect another brand to buy
continue brands no longer profitable to the Odwalla?
10.3 · Brand Management Implications
219 10
10.3 Brand Management 10.3.2Brand Leadership
Implications
The leadership of a brand after a merger or an
It is essential to recognise that there are brand acquisition is an essential brand management
management implications when brands are consideration. Who will lead the new brand?
acquired. The brand owners and the brand Who will leave? Following the idea of CEOs
manager have a role to play in the success of as brand custodians, Erdoğmuş and Esen
brand mergers (see the section on key stake- (2018), argue that it becomes essential to
holders in 7 Chap. 1). The brand manager understand who will lead the new venture.
working with the acquiring brand has the When PSA, the French multinational manu-
responsibility to make sure they make an facturer of automobiles merged with Fiat
informed business decision, to understand Chrysler Automobiles, Carlos Tavares, chief
how the acquired brand will fit into the exist- executive of PSA became the chief executive
ing framework and the practical changes that of the new company, while the Fiat chair,
need to be made. John Elkann became its chair. Often it might
be the CEO of the acquiring brand taking
over the leadership, but in the case of a merger,
10.3.1Questioning the Decision it might take a different direction.
As a brand manager, you may be on different

sides of the table at any time. Yesterday, you 10.3.3Brand Organisation
may have been acquiring a brand, today you and Architecture
are merging with another brand and tomor-
row you may be acquired. You may be the Having a new brand in the business presents a
brand owner, responsible for the direction of challenge for brand managers, especially with
the company or perhaps you are a brand con- regards to the organisation of the business’
sultant working on a merger and acquisition. brand portfolio. It becomes essential to under-
In whichever position you find yourself, it is stand how the acquired brands fit into the
always important to question the decision. To brand portfolio to avoid any negative spill
evaluate, from a branding perspective, if it is over (Lei et al. 2008). In the case of mergers, it
worth it. This questioning may depend on is necessary to look at how those brands relate
your role and involvement. A manager at to each other. While there might be duplica-
SABMiller may not have as much decision- tions as earlier discussed, the brand manager
making power as the Chief Marketing Officer needs to decide which brand takes priority
when discussing the AB InBev acquisition. and which brands need to be withdrawn. This
It is important to evaluate the options, to also presents a key implication for brand mar-
understand if there is a coherence between the keting and budgeting.
brands – to examine if the brands have shared
values before they are merged. You must
maintain your position which requires you to 10.3.4Brand Communication
ask and check if due diligence has been car-
ried out. Questions should also be asked Communicating with stakeholders is essential
about the trademark registration and the during and after brand mergers or acquisi-
transfer of brand ownership, perhaps if the tions, creating a coherent perception of the
rebranding can be done in-house or you need brand in the minds of its various stakehold-
a consulting agency. What are the project ers (Einwiller and Will 2002). There will be
plans, milestones and who are the identified concerns shared by the staff, customers, com-
individuals to lead the overall process? petitors and even the regulators. The brand
manager needs to ensure that all the stake- 10.3.5.2The Fusion

holders are carried along. It is not surpris- This naming strategy appeals more to brands
ing to see companies writing blog posts to coming together and blending and strategi-
explain and share the merger news with their cally fusing their identity. Remember, brand
customers and staff. These communications identity includes the name and visual elements
also involve brand integration and advertise- like the icon, colour, and typeface of the logo.
ment to ensure that people are aware of the Here the brands have different options to
new brand. It is necessary to create new brand choose from with regards to their new brand
guidelines and ensure that all stakeholders identity. The figure below illustrates four pos-
adhere to them (Mogaji 2019). sible options.
Straight Combo
10.3.5Brand Name and Identity This is when both brands combine their
names. Often this is the standard way to
Depending on the arrangements, there is merge, and it can be varied with the use of
likely to be a need for a new identity. The colour and typesetting. An example is the
brand identity may involve choosing a new merger between Exxon and Mobil to form
name, creating a new logo, designing a new ExxonMobil. In some cases, the new brand
website, and changing the staff’s uniform. The might use the colour of one of the brands
acquiring brand may decide to change the while using the name of another.
identity of the acquired brand(s) to reflect the
integration into the new brand architecture Refreshed Fusion
10 (Gaustad et al. 2019). For a merger, there may With a successful merger, both companies
be a reasonable need to retain one of the reli- may decide to have a new identity for their
able brands or create a new brand and identity merger. While the name may be retained or
altogether. With regards to local/international blended, the visual elements in terms of
brands, sometimes it might be better off to colours, typesetting and icons are changed.
retain the local name rather than integrating it The new brand can create and integrate a new
with the parent brand. The local brand might identity as they move on with the brand. This
be a legacy that is best kept that way. is done to ensure no sense of entitlement from
Consumers may be emotionally connected to either of the brands or their former custom-
these brands. The following are some exam- ers.
ples of brand naming options.
Hybrid Fusion
10.3.5.1Staying the Same Unlike the combo which involves using both
This is when there are no changes to the name names, hybrid fusion allows the use of differ-
and identity of all the brands involved in the ent elements from the brands. This could
merger or acquisition. The acquiring brand mean using the name of one brand and using
decides to retain the name and visual identity of the icon of another brand. Standard Trust
the brand even though it now exists within the Bank acquired United Bank of Africa in
acquired brand’s portfolio. This can sometimes Nigeria, the new brand retained the name
be done to keep the emotional attachment and United Bank of Africa but used the red colour
connection with the old brand name. This type and icon of STB. Likewise, when Boeing Co.,
of naming arrangement leads to a brand rela- the world’s largest commercial aircraft maker
tionship spectrum described as House of acquired its long-time rival, McDonnell
Brands (Aaker and Joachimsthaler 2000). For Douglas Corp, in 1996, the new company
example, there are many brands, each with its used the Boeing name but adopted the icon of
own identity under the P&G brand. McDonnell Douglas.
10.3 · Brand Management Implications
221 10
.. Fig. 10.2 The fusion brand naming and identity. (Source: Author)
Endorsed Fusion was when DHL acquired Airborne Express in

The parent company, most likely the acquir- 2003, and the Airborne logo was not in any
ing brand, endorses the acquired brand while way integrated into the new DHL logo as the
still retaining the names. Often the acquiring stronger brand (DHL) retained its name and
brand will put “an XXXX company” under identity. Likewise, when Leuka and Leukaemia
the logo to indicate it is part of the group. UK merged, bringing together two of the
Aruba, a networking solutions company, United Kingdom’s leading leukaemia and
acquired by HP, was rebranded to include “a blood cancer charities to create one charity,
Hewlett Packard Enterprises company” on the brand identity of the stronger of the two,
the logo. This endorsement strategy allows the Leukaemia UK, was retained. Pharmaceutical
acquired brand to enjoy the goodwill of the giants Pfizer and Allergan merged to form the
acquiring brand, and the acquiring brand can world’s biggest drug company by sales, but the
indicate its ownership (. Fig. 10.2). Pfizer name, which was the stronger brand
was kept.
10.3.5.3Stronger Brand
This naming strategy suggests that the stron- Reverse
ger brand is in the driving seat of the identity While it may be considered standard for the
for the new brand. Perhaps in the case of a acquiring brand to retain its identity, there is
merger, the strong brand’s name is retained the possibility that the acquired brand may
while the other brand is removed from the have its identities adopted instead. This may
new identity. The decision will have to be be because the acquired brand is well recog-
based on the existing brand heritage, brand nised and vibrant enough to appeal to the tar-
awareness, customers’ knowledge and possi- get audience. This could also be an opportunity
bly the customer base size. to refresh the new brand while highlighting its
values and heritage.
Standard
This is the basic form of the stronger brand Updated
naming strategy. When two brands come Mergers can present an opportunity to refresh
together or a brand is acquired, the stronger and update the brand identity. While the
brand’s name is retained. A common example strong brand’s name might be retained, it
could also be updated to signify a new direc- manager precarious, or on the other hand
tion for the brand. DuPont merged with Dow your brand could acquire another brand.
in 2017 and rebranded afterwards with an These are the dynamics of the industry, and
updated logo and identity. this presents a huge implication for the man-
agers.
10.3.5.4New Brand It is essential to understand what to expect
This is at the end of the brand naming strat- in times of merger and acquisition. It is also
egy; it can be the most aggressive option for important to ask the right questions to ensure
branding after mergers or acquisitions as it that the business arrangement is made in the
creates a new brand entirely. Deutsche best interests of every stakeholder (Alvarez-
Telekom and France Télécom merged their González and Otero-Neira 2019; Mogaji and
respective UK ventures T-Mobile UK and Danbury 2017). There will be a need to ensure
Orange UK to form a new brand called that the new brand is well integrated and com-
Everything Everywhere which was later municated to everyone and an ongoing need
rebranded to EE. Adopting a new brand to manage the brands and their integration.
could signify an intention to start again and Kakao and Daum merged in South Korea,
appeal to a broader audience with new mar- the new company was renamed Daum Kakao
keting communications. but later adopted Kakao. The successful
merger or acquisition is not the end of the job
for a brand manager, for some time more, it
10.3.6Financial Implications will be essential to understand and evaluate
how the brand emerges after the merger.
10 Mergers and acquisitions are not cheap, and Rebranding and changing the brand iden-
there are substantial financial implications. tity will be a significant task, especially in the
These are brand orientation decisions with case of a merger. We have discussed the differ-
considerable impact on financial performance. ent naming strategies, ultimately the manage-
(Gromark and Melin 2011). The internal ment must decide on which approach to
human resources and professional consultants/ adopt. It is also essential to understand that
advisors, time, techniques that are required to branding is not limited to big corporations;
make the merger process a success, the finan- the understanding of these dynamics is also
cial cost of developing a new identity, rebrand- relevant when smaller brands are merging
ing the organisation and creating awareness (Mogaji et al. 2020). Scrutinising the deal with
about the new brand all require a lot of money the knowledge of its long- and short-term
and investment (Stuart and Muzellec 2004). It branding implications is essential for the
is not surprising to see many brands do not brand manager and the concerned brands.
change their identity immediately after merg-
ing or acquisition. McKesson Corporation
acquired Celesio AG in 2014, but the leading Key Points
healthcare provider continued to operate in the 55 Brands can seek to acquire another
United Kingdom under its existing brand brand because they want to comple-
name until 2018 when Celesio UK changed its ment their existing strength, extend into
name to McKesson UK. another market or diversify their port-
folio.
55 Brands can be acquired because they
10.4 Conclusion are facing financial difficulties, non-
performing or because of legal expecta-
Brands will always continue to merge and tions.
acquire many others to ensure their sustain- 55 A brand can merge to complement their
ability, strengthen their market hold and strive strengths and position themselves to
for survival (Bhattacharyya 2019). Your brand compete for a bigger share of the market.
may be acquired, making your role as a brand
References
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Bhattacharyya, S. 2019. Mergers and acquisition by
55 Brands can be demerged. This is often a Indian firms: Managerial perspectives on challenges
and solutions. In Dynamic perspectives on globaliza-
restructuring strategy to shed non-
tion and sustainable business in Asia, 41–55. Hershey:
performing brands that could not be IGI Global.
sold or merged. Bilton, Ricardo. 2015. Autopsy: Why Microsoft’s Ad
55 Brand managers have a role to play in Business Withered – Digiday. Digiday. https://digiday.
effectively communicating the new brand com/media/autopsy-m icrosofts-a d-business-
whithered/.
and managing the new brand and its
Chung, Y., and A. Kim. 2019. Effects of mergers and
integration into the existing portfolio. acquisitions on brand loyalty in luxury brands: The
moderating roles of luxury tier difference and social
media. Journal of Business Research. https://doi.
org/10.1016/j.jbusres.2019.11.030.
► Student Activities Einwiller, S., and M. Will. 2002. Towards an integrated
approach to corporate branding – An empirical
1. Why do you think a brand should acquire study. Corporate Communications: An International
another brand? Journal 7 (2): 100–109.
2. What are the differences between brand Erdoğmuş, N., & Esen, E. 2018. Constructing the CEO
merger and demerger? personal brand: The case of four pioneering CEOs
in Turkey. Corporate Reputation Review 21(2):
3. What is the implication of selecting a CEO
37–49.
to lead the new brand? Gaustad, T., B. Samuelsen, L. Warlop, and
4. How would you describe the role of share- G. Fitzsimons. 2019. Too much of a good thing?
holders in brand merging and acquisition? Consumer response to strategic changes in brand
5. Should charity organisations merge? image. International Journal of Research in
Marketing 36 (2): 264–280.
6. Discuss the possibilities of merging to go
Gromark, J., and F. Melin. 2011. The underlying dimen-
global. sions of brand orientation and its impact on finan-
7. What are the benefits of brand merger over cial performance. Journal of Brand Management 18
acquisition? Would you advise a small, (6): 394–410.
struggling brand to merge with another Hodgson, S. 2017. Managing the merger and acquisition
branding process. Accessed 8 8, 2020. https://
smaller brand, or would you recommend
fabrikbrands.c om/mergers-a nd-a cquisitions-
acquisition? branding-process/.
8. What would you consider as factors that King, D., D. Dalton, C. Daily, and J. Covin. 2004. Meta-
can make a merger or acquisition fail? analyses of post-acquisition performance:
9. What is the role of brand manager in an Indications of unidentified moderators. Strategic
Management Journal 25 (2): 187–200.
organisation that is being acquired?
Lee, H., C. Lee, and C. Wu. 2011. Brand image strategy
10.
What are the key brand name selection affects brand equity after M&a. European Journal of
considerations for the new brand after the Marketing 45 (7/8): 1091–1111.
merger? ◄ Lei, J., N. Dawar, and J. Lemmink. 2008. Negative spill-
over in brand portfolios: Exploring the antecedents
of asymmetric effects. Journal of Marketing 72 (3):
111–123.
References Mergermarket. 2019. 2019 Global M&A Report with
financial league tables. Access 8 8, 2020. https://
Aaker, D., and E. Joachimsthaler. 2000. The brand rela- www.m ergermarket.c om/info/2019-g lobal-m a-
tionship spectrum: The key to the brand architecture report-financial-league-tables.
challenge. California Management Review 42 (4): Mogaji, E. 2019. Brand Guideline. SSRN Electronic
8–23. Journal. https://doi.org/10.2139/ssrn.3316485.
Alvarez-González, P., and C. Otero-Neira. 2019. ———. 2020. Consumers’ financial vulnerability when
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International Journal of Bank Marketing 38 (2): appealing: Advertising strategies and consum-
406–424. ers’ attitude towards UK retail bank brands.
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10
225 11
Brand Architecture
Contents
11.2 The Need for Brand Architecture – 229

11.2.1 I nward Expansion – 229
11.2.2 Outward Expansion – 229
11.3 Types of Brand Architecture – 230

11.3.1 ouse of Brands – 230
H
11.3.2 Endorsed Brands – 231
11.3.3 Sub-Brands – 231
11.3.4 Branded House – 232
11.4 Other Brand Relationship Key Considerations – 233

11.4.1 ybrid Brand – 233
H
11.4.2 Same Brand Family, Different Brand Structure – 233
11.4.3 Brand Co-creation and Congruence – 233
11.5 When to Consider Brand Architecture – 234

11.5.1 S tarting Out – 234
11.5.2 Growing – 234
11.5.3 Buying In – 235
11.5.4 Clearing Out – 235
11.6 Importance of Brand Architecture – 235

11.6.1 rand Organisation and Administration – 235
B
11.6.2 Mergers and Acquisitions – 236
11.6.3 Creating Coherent Brands – 236
11.6.4 Customer Awareness – 236

11.7 Implications for Brand Managers – 236
11.7.1 rand Relationship Styles – 236
B
11.7.2 Brand Architecture Communication – 237
11.7.3 Brand Management – 237
11.7.4 Brand Portfolio Evaluation – 238
References – 239
Brand Architecture
227 11
Code has a lot on their mind while they are Alex’s charity need to also consider brand
exercising on the treadmill. With the new architecture. Even though they may not be
acquisition in place, Code needs to assure the planning for extension or acquisition, laying
integration of the new product brand. Should down a plan is important. Brand architecture
they change the name of the acquired apple allows for future brand expansion plans,
juice brand? What about a new brand identity brand portfolio evaluation and brand rela-
for the fruit product lines? All these questions tionships.
are bothering them. Code shares the ques-
tions with Sam in the hope of some guidance.
Overview
They suggest the need for brand architecture
Brand extension, mergers and acquisitions
that looks at how the brands are related. Sam
extend the product line of a brand. There
gives an example: if new gym equipment is
are many brands now operating under a big
being bought for the gym, the managers need
brand umbrella. It is now essential for the
to know the size and other dimensions in
brand manager to arrange new brands and
order to know where it can fit. Likewise, Code
structure them for effective administration
must understand the new brand and identify
and control. This may involve employing
how it can fit into the existing structure. Brand
more people, perhaps different brand man-
architecture is another brand management
agers for each product line. In this chapter
concept that is worth considering because it
we will explore these arrangements with
helps brand managers to plan to include dif-
master brands and sub-brands, to under-
ferent brands in their portfolio. Though it
stand their architecture and use different
may be more applicable to Code as they plan
case studies and examples to illustrate the
on integrating the newly acquired apple juice
different types of brand architecture that
or Sam’s multinational brands that may have
are available. Importantly, we will look at
acquired many brands, smaller brands like
228 Chapter 11 · Brand Architecture
Skype, the red colour of YouTube, Pinterest,

Target and Chrome and the green colour of
the essence of having a brand identity. Even
though brand architecture may be more rel- WhatsApp, Starbucks and Spotify. Every time
evant for established brands, this knowl- you download a new app, you want to find a
edge will be essential for emerging smallercolour folder that it fits into. Brands try to
brands which are considering brand exten- arrange their brands in a way they can easily
sion and acquisitions, to help them plan recognise and manage.
and identify how they want to structure Brand architecture is an organising struc-
their sub-brands. ture of the brand portfolio that specifies brand
roles and the nature of relationships between
brands (Aaker and Joachimsthaler 2000, p. 8).
It illustrates the relationship between brands
? Key Question within an organisation and how they interact
With a different product and line extension, with one another and are differentiated from
how can the brand become more struc- one another. The brand architecture is how
tured? the master brand and sub-brands relate to
and support each other. It offers a map that
n Learning Outcomes illustrates the connection between the brands.
At the conclusion of this chapter, you will Key points to note at this stage are that
be able to brand architecture may be more relevant for a
55 describe the concept of brand architec- brand with many sub-brands. That is a brand
ture; that has expanded its product line (“Brand
55 give examples of different types of Extension,” 7 Chap. 9) or a brand that has
brand architecture; merged and acquired many other brands
55 describe the concept of a brand archi- (“Brand Mergers and Acquisitions,” 7 Chap.
11 tecture audit; 10). These big brands are called master
55 describe when brands can consider brands. They are the likes of Alphabet (which
brand architecture; owns Google, YouTube and Android), P&G
55 recognise the importance of brand (which owns Gillette and Pringles) and
architecture; and Unilever (which owns Knorr and Dove).
55 explain the brand implications and role These master brands are often a product of
of a brand manager in brand architec- mergers, acquisitions and extensions. They
ture design and development. have grown so big that they have many sub-
brands and even many sub-sub brands. You
can consider the brand architecture as a fam-
11.1 Introduction ily tree, a family genealogy with grandparents
and parents with children. For example,
With multiple mergers and acquisitions, a Mondelez International, the cookie and
brand can grow the number of sub-brands in cracker manufacturing company is the master
its portfolio (Alvarez-González and Otero- brand for Cadbury, which was acquired in
Neira 2019; Bhattacharyya 2019). As 2010. Cadbury then has Dairy Milk as a sub-
explained in the last chapter, mergers and brand. Then Dairy Milk Caramel is a sub-
acquisitions can lead to multiple and dupli- brand of Dairy Milk:
cated brands. Therefore, it becomes essential
to identify these brands and understand how Mondelez > Cadbury > Dairy Milk >
they relate to each other (Chung and Kim Dairy Milk Caramel
2019). It is like doing an audit to know the
number of apps you have on your smartphone As with a family, the relationship that exists
screen and trying to group them in a folder between grandparent and parent may not be
based on their colours. You have the blue the same as that between the parent and chil-
colour of Twitter, Facebook, Messenger and dren, and this suggests that different brand
11.2 · The Need for Brand Architecture
229 11
arrangements occur between these master from being the main brand now to a master
brands and sub-brands. As you can see from brand with many sub-brands. Likewise, with
the illustration above, there is no visual evi- Cadbury making Dairy Milk and putting its
dence of a link between Mondelez and Cad- name on it. Apple, as well, had mainly been
bury unlike between Cadbury, Dairy Milk growing through inward expansion, from
and Dairy Milk Caramel, where you can see iPhone to iPad and Apple Watch. These were
Cadbury’s name integrated along with all the their innovations. This is inward expansion
sub-brands. The essential thing is to under- when the brand takes ownership and is
stand how these brands relate within the fam- responsible for the growth of the brand
ily hierarchy, making it easier for the brands through their line and category extension.
and their managers to effectively manage
them and also for consumers to be more aware
of options and what the brand is offering. 11.2.2Outward Expansion
As we saw in the previous chapter, brands can

11.2 he Need for Brand
T grow more significantly by merging and
Architecture acquiring, and this is a form of outward
expansion. The brand becomes bigger by
Two key motivations for a brand architecture exploring outside opportunities, beyond its
can be identified, and they both relate to line and category extension. This is when the
expansion. Expansion to create more brands brand brings other sub-brands into its portfo-
brings the need to have a plan, the need to lio (through mergers and acquisitions) and
have an arrangement and a structure then has the challenge of finding how to fit all
(Kheilnejad et al. 2020; Strebinger 2004). these brands together. Kraft food (now
Mondelez) acquired Cadbury (with all its sub-
brands) and the master brand. While the
11.2.1Inward Expansion brands may be able to control and monitor
their level of growth internally, there are
This is often the very beginning of growth. inherent challenges in outward expansion,
The main/single brand becomes a master by and this often affects the brand architecture.
extending their product line to increase their For example, with an internal expansion, deci-
profit and reach out to a wider audience. This sions have been made on the type of expan-
is when Allure Beauty, a press-on nail maker, sion, the brand identity and possibly the
starts making eyelashes and wigs. So, from manufacturing or licensing arrangement. This
Allure Nails, which is the main brand, we now may not be the case in the outward expansion,
have Allure Lashes and Allure Wig. This is especially when the acquired brands include
organic growth for the brand. Allure moves brands that compete with the acquiring brand.
Case Study 11.1: Nestlé Brand Extension and Architecture
There are many reasons for brands to extend brand managers. While growth and expansion
their product lines. They can expand internally are essential, it is necessary to update and rede-
through line extensions where they control the velop the brand architecture, highlighting the
growth and progress or through external exten- relationships between these brands.
sion, which could be through acquisitions, Nestlé is a Swiss multinational food and
licensing or franchising. The acquiring brands drink processing conglomerate corporation.
may not have much control in the second case, With more than 2000 brands, it is the largest
unlike for a brand they have created. This food company in the world. The brand has not
acquisition presents enormous challenges for become this size solely through research, devel-
opment and innovation (internal expansion), develop and work towards maintaining their
they have also relied on different acquisitions growth, it should be of concern to the brand
around the world (external expansion). They manager to ensure that the brand does not bite
have brought many brands. Starting from off more than it can chew by acquiring brands
Maggi, which was acquired in 1947, Carnation or extending into product lines that will not
acquired in 1984, bringing evaporated milk, benefit or boost the image of the company in
Coffee-Mate and Friskies to Nestlé, and the long run.
Rowntree Mackintosh acquired in 1988, bring-
ing Kit Kat, Smarties and Aero to the brand zz Reflective Questions
portfolio. 55 Do you think it is easier for Nestlé brand
They have also tried to expand internally by managers to develop a brand architecture
increasing their product line. As a form of inter- for products from an internal expansion?
nal expansion, Nestlé pioneered the premium What are your reasons for your answer?
portioned coffee segment by launching Nespresso 55 With so many acquisitions, what are the
in 1986, providing a range of quality sustainable challenges for Nestlé brand managers
coffees, innovative machines and exclusive, per- in managing the acquired brands?
sonalised services. They also launched Garden 55 Considering Nestlé is initially known for
Gourmet in 2018. This is a new plant-based milk products, how would you situate
range to meet the booming demand for alterna- Garden Gourmet within the existing brands
tives to meat. Expert chefs and nutritionists of Nestlé?
developed this product in Nestlé with a range of 55 Garden Gourmet is targeted towards those
12 plant-based products including meat-free who are interested in eating less meat and
burgers and mince. This is a company over more plant-based protein; Coffee-Mate and
150 years old, still trying to expand internally, Nespresso targeted to those who like coffee;
11 creating products for a growing market. and Bakers Complete, the United
Brands will always aspire to grow. The vital Kingdom’s number 1 complete dry dog
point at this stage is to recognise the growth food, targeted towards dog lovers. Do you
and put structures in place for effective man- think Nestlé brands should be grouped
agement. Therefore, as the brand intends to according to the targeted customers?
11.3 Types of Brand Architecture 11.3.1House of Brands
In discussing brand architecture, you need to As it implies, this is a house full of many
understand two constructs—first, the master brands. Like a family house where everyone
brand, which is the leading brand and often has a different name, wears what they like and
the name of the organisation and second, the the parent watches in the background. A house
sub-brand which has been created or acquired of brand relationship is when sub-brands have
by the master brand. Apple is a master brand, their own unique identity and do not share the
while iPhone is a sub-brand. According to identity of the master brand. The master brand
Aaker and Joachimsthaler (2000), there are is often not seen. It is hidden in the back-
four main types of a brand relationship when ground. Many consumers will know about the
discussing brand architecture challenges. sub-brands but may not know about the mas-
They are House of Brands, Endorsed, Sub- ter brand. Usually, this arrangement suits big
brands and Branded House. Take note of the brands that have acquired many other brands
distinction between sub-brand as a form of and do not want to go through the stress of
brand extension (as discussed in 7 Chap. 10) rebranding. It also allows the brand to reach a
and sub-brand as a type of brand architec- diverse market, geographical locations and
ture/brand relationship. audiences with a collection of products and
11.3 · Types of Brand Architecture
231 11
services. Furthermore, such arrangements help House of brands Master
the master brand to capitalise on the sentiment brand
of the sub-brands users.

A common example is P&G which has one
of the strongest portfolios of trusted, quality,
leadership brands, including Always®, Ambi
Pur®, Ariel®, Braun®, Fairy®, Febreze®,
Flash®, Gillette® and Head & Shoulders®
.. Fig. 11.1 House of brands. (Source: Author)
with operations in approximately 70 countries
worldwide. P&G acquired Gillette in 2005 but
instead of making any unnecessary changes and it can stand alone but has the master
to the brand identity, it was brought into the brand’s endorsement. Customers can still rec-
fold just as it was. This often saves the master ognise the master brand even when they are
brand the cost of rebranding upon mergers, more conversant with the sub-brand.
and it also builds on the existing brand aware- Interestingly, the strength and positive attitude
ness of the brand before the acquisition. towards the endorsing master brand boosts
Recognising that managing these sub- acceptance of the sub-brand. Cadbury has an
brands within a branded house may be becom- excellent example with Dairy Milk, even
ing cumbersome, these master brands are, though Dairy Milk can stand on its own as a
therefore, further grouping their sub-brands brand, it enjoys the presence of Cadbury, like-
into industry-based sectors. P&G has Beauty, wise Kit Kat with Nestlé and Digestive and
Hair and Personal Care, Baby, Feminine and Rich Tea with McVitie’s. As seen with these
Family Care, Fabric and Home Care and examples, the master brands in this case
Health and Grooming. Mondelez, the master (Cadbury, Nestlé and McVitie’s) are subtly
brand of Cadbury has Gum and Candy, included above the name of the sub-brand.
Biscuits and Cookies, Chocolates, Beverages This does not mean it must be on top, and it
and Meals. This indicates that when a new can also be below the sub-brand’s name as seen
brand is acquired, its location within the port- with Aruba, with HP’s endorsement and on the
folio is known. Even though the brand identity side with Ayco, a Goldman Sachs Company.
and logo are not changed, upon acquisition, In terms of the size and emphasis, the mas-
they are easily placed within a sector. ter brand is in the background (take note of
There are advertising and marketing impli- this compared to sub-brands (as a brand rela-
cations for this type of brand architecture espe- tionship) which will be subsequently dis-
cially as it appears they are managing cussed). The sub-brands gain from the goodwill
independent brands and therefore independent of the master brand. There are also benefits of
marketing campaigns. The master brands have cross-selling as the marketing activities of the
to communicate the different brands almost master brand (Cadbury) can have a positive
simultaneously towards different customers in spill over effect on the sub-brand (Dairy Milk).
different locations. Effectively managing each Just like going to play sport and your parent,
brand could be a challenge. Each of these who is a celebrity, is cheering from the side-
brand sectors is expected to have brand manag- lines. People can recognise your parent; they
ers. For example, the brand manager for bever- like them, and because of that, they are more
ages and meals at Mondelez will be responsible likely to engage with you (. Fig. 11.2).
for Bournvita and Tang (. Fig. 11.1).
11.3.3Sub-Brands
11.3.2Endorsed Brands
These can be deemed the opposite of an
This is when the master brand is present on the endorsed brand. Instead of the parent sup-
brand identity but often in the background. porting you from the sidelines, they are the one
The endorsed brand has its own brand identity, playing the sport. Sub-brands build on the idea
Endorsed branded Master sub-brands. A qualifier/sub-brand name or

brand colour explains precisely what that sub-brand
does and differentiates it from other sub-brands.
As with FedEx illustrated below, the colour of
the “Ex” highlights the difference between the
sub-brands. This strategy gives a consistent
experience to the customers. They see the
Qantas brand and can easily recognise its sub-
.. Fig. 11.2 Endorsed brands. (Source: Author)
sidiaries; it, therefore, minimises confusion and
builds value for the brand. So, having the same
Sub-brands Master identity and philosophy will make the brand be
brand
easily recognised by people and other brands.
This arrangement builds on established
customer loyalty towards the master brand,
and it allows subsequent brands to fit into the
existing structure easily. That means even an
acquired brand can be quickly rebranded to
.. Fig. 11.3 Sub-brands. (Source: Author)
fit the style. From a marketing perspective,
advertising spending can offer a spill over
effect, at every mention of FedEx, all other
of the endorsed brands, but instead, the master sub-brands benefit. This saves the brand from
brand takes more prominence and allows the specifically marketing all the sub-brands.
sub-brands to be associated with it. An excel- Likewise, bad press or a negative attitude
lent example is Gillette. Although it’s now a towards the master brand can affect all the
sub-brand of P&G (the master brand), it was other sub-brands; none of the sub-brands will
11 once a master brand before being acquired. be immune from the impact on the master
Even after its acquisition and being brought brand. Brand managers, however, need to be
into the fold of P&G, it has not lost that mas- mindful of how wide the branded house will
ter/sub-brand relationship with its sub-brands. be stretched to avoid dilution. You can just be
Here the Gillette brand as the master brand having your name on everything. Cadbury
is very prominent, the sub-brands (Fusion 5 once has a Smash Instant Mashed Potatoes,
Proglide, Fusion 5) are subordinate. (This is Amazon has Amazon Fire Phone, and Virgin
unlike an endorsed brand where the master had their name on a Water Filtration System
brand plays a minimal role.) Other examples while Coca Cola once had a fashion line in the
are Nescafe with its sub-brands and Apple and 1980s. These extensions into unrelated market
Apple Watch (. Fig. 11.3). spaces make the brand feel more irrelevant.
Brand managers are therefore expected to be
mindful of how wide they extend their brand.
11.3.4Branded House The fact that the brand is well known is not
enough justification for it to be spread across
If you imagine a branded house, it’s a place multiple categories (. Fig. 11.4).
where every occupant wears the same clothes.
This brand relationship structure is when all the
sub-brands share the same identity with the Branded house Master
brand
master brand. They may be differentiated by
design and typography of their names, but all
sub-brands are subordinate to the master
brand. An excellent example is where all the
sub-brands share the same design, including
fonts and arrangement. There are even brand
guidelines which highlight the position of the .. Fig. 11.4 Branded house. (Source: Author)
11.4 · Other Brand Relationship Key Considerations
233 11
11.4 ther Brand Relationship Key
O Cadbury name slightly on top of Dairy Milk.
Considerations Dairy milk is more prominent and relying on
the endorsement of Cadbury. Meanwhile,
11.4.1Hybrid Brand
the arrangement between Dairy Milk and
Dairy Milk Caramel is Sub-brands as the
Dairy Milk brand is very much visible like
It is essential to recognise that there may be
the Caramel. This highlights how a business,
variations to these brand relationships; for
like Mondelez, can have different structures
example, there is the hybrid brand where the
within its portfolio (. Fig. 11.5).
master brand is also a sub-brand within the
structure. An example is Coca-Cola, though
that is the master brand, it has sub-brands like
11.4.3Brand Co-creation
Sprite and Fanta. Google was also operating
on this hybrid structure before its integration and Congruence
into Alphabet. There was Google as a master
brand and Google as a sub-brand, Google The fact that one sub-brand is successful is
scholars and Google AdWords. not an indication that it can be used to
enhance the equity of another one. They may
be the same brand family and not necessarily
work together. For example, the success of
11.4.2Same Brand Family, Different Gillette as a brand is not a guarantee that con-
Brand Structure sumers will accept Gillette battery as it can be
confusing and incongruent with customers’
There may be a different relationship between expectations. Still, instead, they may partner
the leading brands and many of the sub- with Duracell. Certain products/sub-brands
brands. This is often because of the various may operate better with a level of autonomy
brand acquisitions and mergers to exter- instead of co-creating with other brands, even
nally extend the brands. Therefore, one within the same family.
brand architecture might not fit correctly On the other hand, Cadbury Dairy Milk
for all the brands. Going by the example of and Oreo have been able to pull this off. Oreo is
Mondelez > Cadbury > Dairy Milk > Dairy a brand from Nabisco, a subsidiary of
Milk Caramel, the relationship between Mondelez International (previously Kraft
Mondelez and Cadbury is House of Brands, Food), but on the acquisition of Cadbury, both
where Cadbury is part of many brands under brands Dairy Milk and Oreo came into the
Mondelez, Cadbury has its own identity Mondelez branded house. They have been able
and can stand without the endorsement of to use Oreo as a sub-brand for Dairy Milk.
Mondelez. On the other hand, the relation- This however does not hinder the extension of
ship between Cadbury and Dairy Milk is in Oreo. This is because Oreo is just another
the Endorsed brands category. Here we see the product to meet the needs of consumers.
Cadbury Cadbury
Mondelez Cadbury Dairy Milk
Dairy Milk Caramel
House of Endorsed Sub-brand

brands brands
.. Fig. 11.5 Same brand family, different brand structure. (Source: Author)
11.5 hen to Consider Brand

W Would you want to go for endorsement or sub-
Architecture brands where the master brand’s name is still on
the new brand or a house of brands? Choosing
The brand architecture audit is the starting a new name for the brand is a way to start. This
point for developing the brand relationship first stepping out is essential in defining the
structure. To understand the present structure future direction of the brand relationship. This
and how it will/should be positioned within the decision may be more applicable to smaller
market. Depending on the brand and level of brands, especially those that are just launch-
development, this audit is the responsibility of ing a new product or services. Understanding
someone with far-reaching managerial powers, this structure right from the beginning, even
like the CEO or the brand manager. The need before the product is launched, is essential in
for a brand audit as a prerequisite for brand defining the future growth of the organisation
architecture applies to a new and growing and its market positioning. Small brand own-
brand, as well as to the more established house ers should not grow without supporting guide-
of brands. It is necessary to consider brand lines to shape future growth. Planning for the
architecture at four different stages. brand architecture helps in creating the bigger
picture, presenting the blueprint for potential
expansion of the business.
11.5.1Starting Out
At the initial stage with just one brand and 11.5.2Growing

considering the identity of the sub-brand, it is
essential to understand which direction to take. It is essential for established brands thinking
Consider . Fig. 11.6 with AllureBuzz, makers of growing their existing brand line to con-
of press-on nails planning to extend into fron- sider their brand architecture. This is a stage
11 tal wigs, another beauty product. Would you between starting as a new brand and expan-
want to go for a branded house where the next sion through mergers and acquisitions. It is
brand has a similar name to the master brand? necessary to understand how to associate each
AllureBuzz
FRONTAL WIGS
BRANDED
HOUSE
AllureBuzz FrontalWigs
PRESS - ON NAILS
HOUSE OF
BRANDS
AllureBuzz
FrontalWigs
ENDORSED
BRAND
.. Fig. 11.6 Conceptualising brand extension. (Source: Author)
11.6 · Importance of Brand Architecture
235 11
sub-brand and new acquisition to the parent/ reveal mismatches, divergent positioning and
master brand. The brand may have been various inconsistencies across the portfolio.
adopting a branded house strategy but when This audit involves working with brand consul-
starting to grow and expand into another tants, designers and customers, to understand
market they may need to consider another how the brands can be structured. The out-
brand relationship strategy, perhaps endorse come of the audit may necessitate selling off
brands, or acquire different brand names some brands, rebranding some brands (chang-
going the route of the house of brands (Round ing or restructuring the brand naming relation-
and Roper 2015). Google started as a branded ships), reducing the number of levels required
house with Google search, Google map, in the architecture hierarchy and possibly using
Google AdWords, but with expansion and colour codes and pack sizes to differentiate the
growth, the arrangement has changed. The sub-brands. This audit and restructuring may
modular arrangement of the brand architec- apply to a house of brands which has acquired
ture can make it easier to add sub-brands in many brands over the years.
the form of additional products and services.
11.6 Importance of Brand

11.5.3Buying In
Architecture
At this stage, there is an established structure,
but the decision to acquire another brand may 11.6.1Brand Organisation
change the dynamics and branding structure and Administration
of the master brand. An audit is essential, to
understand how things have been done previ- Developing the brand architecture helps a
ously and the direction to go from now on. brand to fully understand the broad range of
For a merger or acquisition, will the new brands they have in their portfolio, especially
brand be rebranded to align with the existing across geographical markets and product lines.
branded house strategy or will the newly The manager can identify duplication and
acquired brand make the master brand a overlap within the portfolio. This understand-
house of brands? For example, when Cadbury ing aids the organisation in the collection of
was acquired, the name was not changed, it its brands and its administration. It ensures the
retained its identity, but when Le Meriden smooth running of an organisation as it can
Hotel in Abuja Nigeria was acquired, it was be easily managed, responsibilities (for brand
rebranded as NICON Luxury to align with managers) delegated and marketing plans
the NICON brand of the acquiring brand. actualised. The brand architecture can also be
used for gap analysis, to understand if there
are areas within the portfolio that need to be
11.5.4Clearing Out strengthened, perhaps by acquisition or line
extension (Åsberg and Uggla 2019). Designing
At this stage, the whole house looks messy; and presenting the brand architecture ensures
many brands have been acquired and they have the protection of the brand equity, the inher-
retained and used their brand identity. The ent value of the brand is retained and its abil-
house of brands now has many brands that are ity to extend its strength into other sub-brands.
duplications, many of which may be demerged, This brand architecture ensures the brand has
sold off and removed from the portfolio. A got the needed human resources to manage the
proper brand architecture audit is essential to brands and different sectors. By identifying
establish the current state of the organisation’s the different brands, the brand managers can
brands and restructure the relationships. This allocate brand-building resources, effectively
audit can be done at the individual sub-brand evaluate how everyone is doing and make a
level and the master brand level (depending on strategic decision about the sustainability of
how different the structures are), in order to each brand (Gabrielli and Baghi 2020).
11.6.2Mergers and Acquisitions brand to play multiple roles and have different
exposure to their customers. The understand-
The brand architecture helps the brand prepare ing of these brand relationships help customers
for mergers and acquisitions. For brands con- to navigate the vast choices available (Mogaji
sidering part-acquisitions, they know the sectors et al. 2018, 2020). Importantly, it influences
to consider. For brands considering acquir- consumer behaviour when existing knowledge
ing another brand, the manager can envisage about a master brand is transferred to a sub-
where the newly acquired brand will fit based brand. People can transfer their experience of
on their existing structure. Also, for a brand Virgin Airlines, to perhaps Virgin Trains or
with too many brands in too many segments, the experience of using Mac, to iPhone. With
the brand architecture highlights the opportuni- a positive attitude about the master brand,
ties for demerging and selling off some brands. customers are much more likely to try one
Importantly, it also provides the blueprint that of its sub-brands. Understanding how the
ensures future expansion and differentiation of brands relate can help managers refine their
the brand. Managers know the possible markets product and service lines, connect better with
to expand into, the needed brands to acquire their customers and derive high return from
and where they will fit in the existing structure. their marketing expenses. This understanding
can also influence the advertising and market-
ing campaigns as the managers can invest in a
11.6.3Creating Coherent Brands campaign to support a sub-brand or reach out
to a specific customer base.
Conscious decisions to arrange and structure
the brand within a master brand’s portfolio
can assist the creation of a coherent brand. 11.7 Implications for Brand
11 This can be done either through internal
extensions like line and category extensions
Managers
or through acquisitions. Brand managers can How does brand architecture affect the role of a
work with and effectively promote the brands. brand manager? You may ask, why bother? This
The brand architecture ensures the internal may depend on your role and managerial respon-
coherence of all the brands which feed into sibility. As the owner of a small fashion line in
the brand identity design, communication Paraguay, you are the CEO, the brand manager
and brand integration (Hemantha 2020). The and you have full administrative responsibility,
brand manager can effectively communicate compared to a brand manager in Ralph Lauren,
the right message about a sub-brand to the who may need to consult and discuss plans with
target audience. As Aaker and Joachimsthaler many people. In any case, it is important to con-
(2000, p. 8) note, “coherent brand architec- sider the following implications.
ture can lead to impact, clarity, synergy, and
leverage rather than market weakness, confu-
sion, waste, and missed opportunities.” For
staff and managers as well, a coherent brand 11.7.1Brand Relationship Styles
makes it easy for everyone to work together,
it provides clear direction and responsibilities. Understanding which brand relationship
styles fit your brand is essential. It is necessary
to explore all the options and know their pros-
11.6.4Customer Awareness pects and limitations, to know the stage of the
brand’s development and awareness and then
Having a strong structure and communicated decide on which approach to adopt:
brand can help the consumer and other stake- 55 For a more established brand with a strong
holders have a better understanding of the master brand, a sub-brand or endorsement
brand and its offering. The brand architecture might be a better idea because the custom-
provides clarity of offering and allows the ers’ awareness and trust in the master
11.7 · Implications for Brand Managers
237 11
brands can be effectively transferred to the relationship within such a multifaceted organ-
new sub-brands, as seen with the iPhone. isation. This understanding will aid their choice-
55 For a new brand starting out and consid- making process and build more loyalty. The
ering expanding, a branded house could communication process should also feed into
be a safer option whereby the sub-brands the brand guidelines to ensure both internal and
still have the protection of the master external stakeholders know how to work on the
brands. You do not want to confuse pro- brand. The website needs to be updated to com-
spective customers by going down the municate, possibly in visual form, the coherent
route of the house of brands. If the master brand structure. This means enough information
brand is not well known, introducing other should be made available to every stakeholder.
brands with a different name might further This should be deliberately done by the brand to
confuse the customers. ensure everyone is carried along in the process of
55 For a merger or acquisition, a house of managing the brand architecture of a company.
brands may be more applicable whereby
all the sub-brands that have been acquired
are brought into the fold of the master 11.7.3Brand Management
brand. However, the sub-brands still main-
tain their identity and positive brand asso- In managing the brand architecture and rec-
ciation with the customers. ognising that some brands may have been
55 For a brand targeting the same market with demerged, sold off and new brands come on
different products, they may consider the board, it is essential to manage these inte-
branded house, where the well-established grations effectively (Keller and Lehmann
and known master brand is used for posi- 2006). For acquired brands, this may involve
tioning the new entrant, sub-brands. changing the brand identity design and pack-
55 For brands targeting a new market where aging, updating the brand guidelines and
the master brands may be unknown, using brand architecture and any information that
a different brand name for the sub-brand, still relates to the previous brand owner. For
becoming a house of brands may be a bet- demerged brands, it may also be necessary to
ter option. update required information, to communicate
with stakeholders about the change. United
Importantly, brand managers need to under- Biscuits, though the brand has been acquired
stand the existing structure of their brands, by Yildiz Holdings and integrated into Pladis
the brand target customers and the products group, it still has a website as at August 2020;
or services being offered by the brand before however, it contains a message that the brand
deciding on the naming strategy and relation- has joined the Pladis group and therefore, visi-
ship to adopt. tors should visit the new website.
A blueprint for the future integration and
management should also be developed, to
11.7.2Brand Architecture ease the process of inclusion in the brand
Communication architecture (Koschmann 2019). There should
be guidelines that highlight how subsequent
Like brand identity, you want to create a acquisitions and sub-brands will be renamed
brand architecture and keep it, and it must be and arranged in order to align with the over-
shared and communicated with all stakehold- arching brand strategy of the master brand.
ers. Even though the brand architecture is not There should also be a blueprint to showcase
a legal requirement for a company to operate, the role of each brand (as a sub or an
it is always good to have one as it is externally endorser), to understand the scope (location,
facing, meaning customers will engage with market or customers) and their relationship
it. Therefore, it must be clear, communicated, (master to sub-brands). Integrating the new
coherent, consistent and creative (Mogaji 2019). staff into the culture of the brand is also part
The customer should see and understand the of the brand management process.
The cost implications of developing and sub-brands, ensuring balance and a message
implementing the brand architecture are also that is communicated to the customers.
worth considering as part of the brand man- We have discussed four different types of
agement process. Can the company afford to brand relationships and the benefits of this
do all the rebranding necessary to get the structure for the brand managers and the cus-
brand on the right footing? Can the company tomers. The managers find it easier to manage
sustain brands that are not performing? Can their product portfolio and delegate resources
the brands acquire brands to help in their while the customers find it easier to make their
diversification strategy? These cost questions choice. The customers are seldom aware of
need to be strategically considered. these relationships and seeing a recognised
brand endorsing a sub-brand might make
them replicate their sense of association with
11.7.4Brand Portfolio Evaluation subsequent sub-brands.
Brand architecture should be modified,
The brand portfolio needs to be regularly redefined and improved regularly; building on
audited and evaluated to ensure that finan- the brand architecture audit, some brands
cially sustainable brands are supported while may be removed because they are not finan-
discontinuing some other brands (Shahin and cially sustainable. In contrast, some brands
Pourhamidi 2020), As seen with Odwalla may be acquired to fill a gap in the brand’s
smoothie brand, Coca-Cola CEO James portfolio. Brand architecture is important for
Quincey alluded to the need to restructure the all types of brands, not just established brands
brand portfolio as smaller brands that account acquiring and merging but also smaller brands
for over half of the company’s portfolio only aspiring to grow; they need to plan how their
generate around 2% of its revenue. In com- future brands will be structured.
parison, the remaining 50% of the company’s
11 brands account for 98% of its revenue. This
has, therefore, necessitated the need to invest
more resources in its strongest brands and Key Points
phase out its smaller, less profitable brands. 55 With brand extension, acquisitions and
In 2019, British American Tobacco mergers, the brands in a company’s
restructured their brand portfolio to acceler- portfolio become larger.
ate their growth further considering the 55 There is the master brand, and there are
decline in tobacco consumption. They simpli- sub-brands, and there could be sub-sub
fied their new category product portfolio, cre- brands (Mondelez, Cadbury, Dairy
ating fewer, more reliable and more trusted Milk, Dairy Milk caramel).
international brands. This brand portfolio 55 Brand architecture is about structuring
evaluation aids the decision-making process the relationship between these brands.
for the managers, to remove some brands and 55 This structuring could be in the form of a
evaluate the brand architecture. house of brands, endorsed brands, sub-
brands and branded house. There are
also possibilities of hybrid versions or
11.8 Conclusion multiple structures within a brand family.
55 Developing the brand architecture helps
A brand is expected to expand its portfolio, the brands organise and manage their
and this can become chaotic with different portfolio; they can identify the product
duplications and inconsistency. Here the to remove or products to acquire.
brand architecture comes in to structure the 55 Even if a small brand does not have
brand relationship and make it easier to man- sub-brands, it is essential to have a blue-
age. The architecture highlights the relation- print and plans for expansion.
ship between the master brands and its
References
239 11
► Student Activities Bhattacharyya, S. 2019. Mergers and acquisition by
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tecture? moderating roles of luxury tier difference and social
media. Journal of Business Research. https://doi.
4. Can you give an example of brands for the org/10.1016/j.jbusres.2019.11.030.
different types of architecture? Gabrielli, V., and I. Baghi. 2020. Unveiling the corporate
5. What brand relationship strategy would brand: The role of portfolio composition. Journal of
you suggest for a relatively young brand Consumer Marketing 37 (3): 279–290.
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formulation in brand consolidation. Asian Journal
6. What is the difference between the house of of Management 11 (2): 181–186.
brands and branded house? Keller, K., and D. Lehmann. 2006. Brands and brand-
7. What is the difference between endorsed ing: Research findings and future priorities.
brands and sub-brands? Marketing Science 25 (6): 740–759.
8. What are the critical implications of brand Kheilnejad, H., F. Taherikia, S. Jalali, and B. Tabrizian.
2020. Designing and identifying the variables of the
architecture for brand managers? pricing model for the company’s brand value in
9. When would you consider designing and merger and acquisition strategies. Journal of System
developing brand architecture? Management 6 (1): 149–162.
10. What are the financial implications of Koschmann, A. 2019. Evaluating the house of brands
brand architecture? strategy using brand equity and intra-firm loyalty.
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comes of brand portfolio evaluation. ◄ cial services advertisements. International Journal of
Bank Marketing 36 (1): 208–227.
Mogaji, E., J. Balakrishnan, and T. Kieu. 2020.
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(4): 8–23. tion and value of the established brand name.
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241 12
Contemporary Issues
in Brand Management
Contents
12.2 Chief Brand Officer – 244
12.3 Brand Customer Engagement – 245

12.3.1 ustomer Experience – 245
C
12.3.2 Personalised Experience – 245
12.3.3 Co-Creating Values – 245
12.3.4 Brand Engagement – 245
12.4 Brand-Community Engagement – 246

12.4.1 ompeting Offers – 246
C
12.4.2 Changing Consumer Behaviour – 246
12.4.4 Corporate Social Responsibility – 248
12.4.5 Collection of Data – 250
12.5 Brand-Competitors Engagement – 250

12.5.1 ergers and Acquisitions – 250
M
12.5.2 The Threat of New Entry – 250
12.5.3 Innovative Brands – 251
12.5.4 Creating Sub-Categories – 251
12.5.5 Rebranding and Debranding – 251
12.6 Brand Customer-Community Engagement – 253

12.6.1 S ocial and Visual Expression – 253
12.6.2 Brand Evangelist – 253
12.6.3 Brand Boycott – 253
References – 254

242 Chapter 12 · Contemporary Issues in Brand Management
The 12 weeks of training are coming to an ment requires a lot of engagement with com-
12 end. Alex, Code and Sam have become friends petitors and customers. As seen with these
because of their shared interest in physical three friends, though their time together may
activities but have become even closer through be over, there is still an ongoing bond and
discussion and engagement around branding. commitment to support each other. Brands
These are three different people with three dif- needs to recognise that even when they may be
ferent businesses and three different brand well established, it is still important to recog-
management responsibilities. They feel nise the connections and commitments to
accomplished in the locker room, proud of their stakeholders.
what they have done and curious about what
comes next. They know they have improved
their physical health and realise that it is not Overview
the end but merely the beginning. They need The business environment is changing, and
to remain active to stay in shape. Other things likewise, consumer behaviours are chang-
compete for their attention and distract them. ing. Brands are becoming aware of the con-
It is essential to stick to guiding principles. sumers’ power to shape the brand through
They acknowledge the sacrifices they have engagement. It has, therefore, become criti-
made to get this far, to improve their physical cal for brands to be aware of the contempo-
health and appearance and build their brands. rary issues around brand management,
Though it is time to go their separate ways, especially the prospects of social media,
they promise to keep in touch and support sustainable consumption and ethical prac-
each other through the process. Sam and tices. To manage these issues, there is a
Code agree to continue to support Alex’s growing demand for a Chief Brand Officer
charity organisation in getting donors. Code (CBO), someone with the overall responsi-
also plans to partner with Sam in order to bility of managing the brand, someone who
take the drink brand global. Brand manage-
12.1 · Introduction
243 12
12.1 Introduction
oversees the ethical collection of data about
their customer base and prospective cus- Brand management is a holistic process that
tomers, a crisis manager who understands aims to add value to a brand, which could be
the implications of online brand mentions a person, an event, an organisation or an
and many other metrics, someone who can object. Managing a global brand across a
take responsibility and think on the spot. In whole range of countries differs from manag-
this chapter we discuss how these contem- ing a global charitable organisation; however,
porary issues can be relative, depending on the basic management principles are the same.
the brand, the market, the customer base Efforts are needed to understand the custom-
and even the country; however, to stream- ers and to shape the brand’s offering to meet
line our discussion, we have identified key their needs, and the customer experience is
stakeholders and the various relationships very relevant.
which shape these issues. As illustrated in Google Ngram Viewer,
(. Fig. 12.1) since around 1980, there has
been an increase in the use of the word
??Key Question “branding.” People are starting to understand
With changing consumer behaviour and and recognise the concept of branding and its
business practices, how can a brand remain implications. Academic research on brand
commercially relevant and viable? management has accelerated dramatically as
both practitioners and academics recognise
nnLearning Outcomes the value-added benefit of branding and its
At the conclusion of this chapter, you will management (Brexendorf et al. 2014). The
be able to branding landscape is continually changing as
55 explain the role of Chief Brand Officer; consumers’ expectations change; brands are
55 describe brand customer engagement; competing for consumers’ attention and there
55 describe brand-competition engagement; are massive amounts of data to understand
55 describe brand-customer-community the consumers. Likewise, the socio and politi-
engagement; and cal climate is changing (. Fig. 12.1).
55 describe contemporary issues in brand All these changes are issues for brand man-
management. agement. These are concerns for brand manag-
.. Fig. 12.1 Google Ngram Viewer showing the growing use of the word “branding.” (Source: Google Ngram
Viewer)
Brand-Competitors
Engagement
Mergers and Acquisitions
The threat of New Entry
Innovative Brands COMPETITORS
Creating Subcategories
Rebranding and Debranding
BCE2
BCE1
Brand Customer
BRAND Engagement
BRANDS CUSTOMERS
MANAGER Customer Experience
Personalised Experience
Co-Creating Values
Brand Engagement
Brand Communication
Chief
Brand Officer BCE3 BCCE
Brand-Community Brand Customer-
The Philosopher
Engagement Community
The Creative Director COMMUNITY
The Data Scientist Competing Offers Engagement
The Coach Changing Consumer Behaviour
Communication Social and Visual Expression
The Crisis Manager
Corporate Social Responsibilities Brand Evangelist
CBO Collection of Data Brand Boycott
.. Fig. 12.2 Contemporary issues in brand management. (Source: Author)
ers in this day and age. These issues are not just has customers that are using it to make a state-
limited to global brands. Smaller brands, char- ment in their community, that can lead to
ity brands and even individual brands have more brand evangelists championing their
challenges that inhibit their brand manage- brand and on the other extreme, people may
ment. These can be issues that keep managers boycott the brand. The role of a brand man-
12 awake and on their toes. Issues they need to ager in the form of the Chief Brand Officer
respond to so their brand equity does not erode. (CBO) cannot be underestimated. The officer
Managers need to be aware of these issues and has a key role in managing the brand.
put measures in place to address them.
There are some key stakeholders shaping
these issues. Figure . 12.2 below illustrates 12.2 Chief Brand Officer
the relationship between the brand and the
customer. This is the basic form of engage- The Chief Brand Officer (CBO) is one of the
ment, recognising that the brand needs to executive-level managers within a company,
engage with the customers, to understand often referred to as c-suite executives (others
their challenges and address them accordingly. may include Chief Executive Officer (CEO),
Also, there is a relationship between the brand Chief Marketing Officer (CMO), Chief
and its competitors, which shapes innovation Operating Officer (COO) and Chief
and the need to be different. There is also the Information Officer (CIO)). The CBO is a
brand and community engagement which relatively new executive-level position being
encompasses those who may not be the cus- created by brands to address many contempo-
tomers but who are taking note of the brand’s rary issues they are facing. The CBO is a
actions. These are citizens of a country seeing board member, working with the CMO to
how the brand is destroying their water bodies, craft and deliver a message that shapes the
causing oil spillage as they search for crude oil perception of the brand. In 2011, Citigroup
for their business. The brand- consumer- appointed Dermot Boden as CBO, saddled
community engagement also exists as a show with the responsibility of developing the
of social and visual expression. When a brand firm’s brand and assuming leadership of its
12.3 · Brand Customer Engagement
245 12
brand strategy. In the same year, McDonald’s enable the customers to feel a sense of attach-
Corp. appointed Kevin Newell to be its new ment and connection with the brands. This
global CBO. Bozoma Saint John served as could be a personalised birthday card, person-
CBO at Uber until June 2018. alised sales offer or incentives that shows the
While this c-suite role usually applies to brands KNOWS the customer—something
big brands, it may be relevant for smaller which is not generic but specialised and per-
brands where the brand owner can take the haps customised.
additional responsibility as the CBO, and it
could even be the marketing manager doing
the same work as a CBO without the title. 12.3.3Co-Creating Values
Jones (2017) notes that the CBO role is chang-
ing dramatically and suggests a new way of This engagement allows the co-creation of
thinking about the new position. He suggests values. Bringing the customers on board to
that the role is a combination of philosopher, share ideas that shape the direction of the
coach, scientist and creative director. brands is also necessary. The customers feel
Importantly, an additional role has been valued and appreciated as part of the brands.
added to this mix—crisis manager. For exam- This could involve user-generated content for
ple, if a recording of a staff member comes to marketing purposes and engagement—allow-
light that could negatively affect the compa- ing customers to show how they are unboxing
ny’s reputation, things can quickly go viral on the new product, using hashtags to share how
social media. This was the case of a Starbucks they are using the product and co-creating
manager in the United States who called the future product and line extensions (Akman
police on two black men for trespassing as et al. 2019).
they waited for their friend and this led to a
national outcry. In these crisis situations, the
brand manager must be able to respond effec- 12.3.4Brand Engagement
tively to protect the brand.
Customer experience, personalised experience
and co-creation can all be described as a form
12.3 Brand Customer Engagement of brand engagement. Consumer brand engage-
ment is defined as “the level of a customer’s
12.3.1Customer Experience cognitive, emotional and behavioural invest-
ment in specific brand interactions” (Hollebeek
Brands need to be mindful of how they 2011a, b). Even with the customers’ wiliness to
enhance the customer experience. This is invest in the engagement, the brand needs to go
essential for building loyalty and repeated beyond social media to engage with customers,
sales (Hollebeck 2011b). It could be the way making an effort to understand the customers
the flight crew attends to a passenger or the and meet their growing needs, recommending
promptness of responding to a query on social different products and suggesting alternatives
media. Brand managers need to be aware of (Gökerik et al. 2018). Brands strive to be human
increasing customer expectations, and there- and build a loyal fan base through engagement.
fore, every effort must be put in place to Ultimately, this should form a closer relation-
respond to their needs as soon as possible. ship, which ensures customer repeat patronage,
retention and loyalty through affecting the cus-
tomer experience (Verhoef et al. 2010).
12.3.2Personalised Experience
Beyond the customer experience is the person- 12.3.5Brand Communication

alised experience. This is not just treating all
the customers the same but personalising the Customers must be made aware of the brand’s
experience (Dwivedi et al. 2019). The will offering. Brand awareness, considered as the
“strength of a brand’s presence in the con- offer to attract passengers. How would you
sumers’ mind” (Aaker, 1996, p. 10), can be expect Uber to respond?
enhanced through brand communications.
This is not limited to brand-created and user-
generated social media communication 12.4.2Changing Consumer
(Schivinski and Dabrowski 2015), but also Behaviour
advertising, corporate social responsibility
and supporting social causes. Consumers Changing consumer behaviour also presents a
want to see brands take a stance and contemporary issue for brands. For example,
communicate their actions. as there is an increase in awareness about fast
fashion and its implications, consumers are
changing how they shop, and this will affect
12.4 Brand-Community some retail stores. As the world strives towards
Engagement less smoking, and people are encouraged to
quit, there are challenges for cigarette and
12.4.1Competing Offers tobacco manufacturing companies, which need
to develop other viable ways to justify and sus-
This is a brand recognising that their compet- tain their business operations. Also, with the
itors can offer the community (and their pro- rise of vegetarianism and veganism, there are
spective customers) a more competitive offer challenges for McDonald’s, KFC and Burger
and consumers are bound to consider these King which sell meat products and it is not sur-
offers (Woodside 2012). It is the CBO’s role to prising to see them explore vegetarian prod-
understand how to shape the brand message ucts, even as there is growing competition from
and convince these communities they have a meatless burgers makers like Meatless Farm,
better deal. Imagine Ola competing with Uber the fastest-growing plant-based meat brand in
when it arrived in London. Though Uber may the United Kingdom. This changing behaviour
challenges brand managers to see how, and if it
12 have been well established in London, Ola as
is possible, to position their brand for growth.
a new brand needed to present a competing
Case Study 12.1: Waitrose Partnership with Deliveroo
Changing consumer behaviour has increased chain with a huge reputation for quality prod-
the drive for online shopping, as many people ucts and customer service. It was named best
are very mindful of their time, they buy their supermarket in the United Kingdom in 2020.
things online to save time, possibly with next Customers appreciate the store appearance,
day delivery. The coronavirus pandemic has quality of own-label and fresh products, staff
further created a “new normal” where people availability and staff helpfulness.
are discouraged from going to the shop to While recognising that the pandemic has
physically buy things and again, they fall back further changed the way consumers buy grocer-
on online shopping. This has no doubt affected ies, Waitrose partnered with Deliveroo to
retail and neighbourhood stores as there is deliver more than 500 of its food and drink
reduced customer footfall. products to customers within 30 minutes in
To meet changing consumer behaviour and selected areas. Deliveroo is an online food deliv-
the quest for more efficient and fast delivery, ery company based in London which allows
Waitrose Rapid delivers groceries to selected customers to order food from restaurants and
areas in the United Kingdom within 2 hours. track the delivery on their phone. Deliveroo had
Waitrose is an upmarket UK supermarket its own challenges amidst the coronavirus pan-
12.4 · Brand-Community Engagement
247 12
demic as well, because restaurants were not sumer behaviour (less time shopping, fast deliv-
open and the riders had limited deliveries. ery and access to products from top brands).
This partnership, albeit a 12-week trial, is a Third, this partnership addresses competition
response to contemporary issues in brand man- from other groceries stores and especially
agement. There is an association between two Amazon Fresh, Amazon’s food service. Brands
strong brands, complementing each other to must adapt, innovate and respond to contem-
remain viable businesses and enhance custom- porary issues to remain viable and sustainable.
ers’ experience. Considering Waitrose has lim-
ited physical stores in certain areas of the
55 Why do you think this partnership was
country and the impact of the coronavirus,
made on a 12-week trial basis?
many customers can now have access to the
55 Would you anticipate any failure in this
brand and its products through the partnership
brand partnership?
with the delivery company. Likewise, Deliveroo,
55 Which brand do you think will benefit more
known for delivering food from restaurants has
from this partnership?
expanded their business to deliver groceries.
55 Waitrose already has a two-hour home
For both brands this is a new business
delivery service, Waitrose Rapid; why do
channel. Firstly, it is a brand partnership, a
you think they needed to partner with
form of brand extension for a reputable retail
another firm to provide a shorter delivery
brand and a disruptor delivery brand. Second,
time?
the partnership is a response to changing con-
12.4.3Communication reply to other brands. This cross-brand banter

keeps social media abuzz. There are examples
Communication still plays an essential role in from Delhi Airport and their engagement
engaging with prospective customers. with IndiGo, India’s largest low-cost carrier
Influencer marketing has a significant role in and with Air India. BMW, Mercedes Benz
this communication process. Brand managers and Audi joined in Valentine mood cross-
must be aware of the role of social media and brand banter. Likewise, social media can be
the impact it can have on a brand (Mogaji used to launch a negative attack on a brand
et al. 2016). Social media can be used to com- (see the Yorkshire Tea Twitter experience in
municate with consumers, and social media 7 Chap. 7 (Case study 7.2)). The brand man-
has empowered consumers as they engage ager must be able to deal with positive as well
with brands. Consumers can instantly make as negative situations, such as in the case of
their concerns known about brands and share the coronavirus and Corona beer. Google
them on their social media platform. searches for ‘Corona beer virus’ surge as peo-
Consumers can ask brands questions, and if ple confuse the beer with the virus. This pose
the brands do not give appropriate answers, a contemporary issue for the brand as they
consumers can take their business away. (See had to respond and communicate with their
the example in 7 Chap. 7 of Dave Carroll stakeholders. Bariso (2020) noted that
(Case study 7.1), who recorded a song to com- Constellation Brands, who owns the Corona
plain about United Airlines.) beer brand had to fight back with some data
Brands also use social media to communi- of its own, separating myth from reality.
cate with other brands. This is often popular Brand managers must recognise the gravity of
with Twitter, whereby brands humorously the situation and act accordingly.
12.4.4Corporate Social institutions and charity organisations benefit

Responsibility from these donations, it is necessary not to
neglect the interior branding of these organ-
12.4.4.1Diversity and Inclusion isations. The interior branding here means
what these organisations are doing behind
Brand management must also consider soci-
closed doors. How many opportunities are
ety’s diversity as a present-day issue, as seen
being provided to black people? How are the
with the racially insensitive Pepsi and the
black staff working in an organisation being
Dove advertisements, which were subse-
treated? How many black people are in lead-
quently removed. It is essential to understand
ership positions in these companies? It is not
diversity and how it can be used to a brand’s
just about making a statement and donating
advantage. Maltesers created an advertise-
but ensuring that the public announcement is
ment using Braille to engage with blind peo-
congruent with the private action.
ple, and a silent advertisement using only sign
It is not surprising to see many brands
language to connect with people who are deaf.
being called out for not acting and showing
Mogaji (2016) notes there are opportunities
solidarity (Dahir and Onibada 2020). People
for advertisers to integrate disabled individu-
expect the brands to “walk the talk,” not just
als into their marketing campaigns, not just as
make a statement but act. A recent survey by
a business strategy for targeted markets but
Polling USA showed that 65% of people think
as individuals in a diversified community.
that brands that released BLM statements are
Lesbian, gay, bisexual and transgender
doing that to retain customers while 15%
(LGBT) people could also be featured in
thinks these brands care (Polling USA 2020).
advertisements for products and services that
This could suggest tokenistic comments on
couples usually buy together, for example,
diversity & equality without taking responsi-
holidays and mortgages. To further demon-
bility to improve their practice.
strate inclusivity, brands are changing their
logo, modifying it with the LGBT rainbow
12.4.4.3The Brand Goodness
12 colour for Pride Week. Brands need to make
sure their team is diverse, there is equal pay Quadrant
(no gender pay gap) and everyone is treated This issue around the public communication
equally. of brands and their private actions in times of
increasing awareness of social injustices has
12.4.4.2Social Injustice led to the classification of different brands.
Being “woke” and taking a stance on social This classification is presented in the brand
issues is essential (Wilson 2020), as seen with goodness quadrant illustrated in . Fig. 12.3.
the Gillette advertisement on toxic masculin- This figure is a 2 × 2 quadrant that intersects
ity that backfired. People were questioning public statement-making, as a form of “say-
why the razor brand is getting involved in the ing good,” a kind of advertising, PR and mar-
#MeToo debate and consumers did not hesi- keting communications and private action, as
tate to share their disappointment. It is crucial an indication of “doing good,” dismantling
for brands to recognise the differences in soci- systemic racism and inequality, addressing
ety and to be mindful of the methods they use lack of representation and creating access to
to engage with consumers. With the Black opportunities.
Lives Matter (BLM) movement, brands need
to take a stance. Many brands have released Public Statement with Private Actions
statements and made commitments. Nike These are the brands that show they are good,
announced a $40 million commitment over take positive actions and do good things. They
the next 4 years to support the Black commu- have made a statement in solidarity, they have
nity in the United States. publicly donated money, but importantly, the
While donations and public solidarity are internal process of the organisation gives
essential as they build and enhance the brand opportunities for all people irrespective of
reputation and importantly many black-led their gender, race or age. Their actions provide
12.4 · Brand-Community Engagement
249 12
SAYING holders may be expecting their brands to state
GOOD solidarity and may feel disappointed if the
brands are not displaying any, at the end of
the day, they will come to appreciate the fact
that their brands are doing good to support
their staff, suppliers and the environment.
Public Statement Public Statement
No Private Action Private Actions These brands might claim they do not want to
blow their own trumpet or better still, they
want their actions to speak. It is, however,
essential for a brand to take a stand as in this
contemporary world, customers are expecting
No Public Statement
No Public Statement
the brands to at least “say something.”
No Private Action
But Private Action
No Public Statement with No Private
DOING
GOOD
Action
This part of the quadrant is not for any brand
.. Fig. 12.3 The brand goodness quadrant. (Source: that wants to succeed. These are brands that
Author) have not made any statement, and they do
not have any private actions to indicate any
opportunities to overcome social injustices, form of solidarity. These are bad brands.
they protect the environment and they cer- They have not even made a statement to save
tainly do good. These brands are not just their faces, and they have not publicly
making a statement, but they are taking pri- declared solidarity. These brands are showing
vate actions to support their statement. This is that the environment does not matter, their
what is expected from all brands. It can be suppliers can use child labour, and their staff
considered as the pinnacle of brand goodness. can be mistreated. It is, however, essential for
these brands to take responsibility, to evalu-
Public Statement with No Private ate their practices and reflect on their actions.
Action Perhaps before making any statement, they
These are brands which are all talk but no should improve on these actions and enhance
action. They want to join the bandwagon, the wellbeing of their staff and start trying to
releasing solidarity statements saying we care be good. Not taking a stand may make peo-
for the environment; we care for staff and cus- ple think the brand stands for something they
tomers, but they do not have actions to show do not stand for. It is important that such
that support. They do not have black people brands explicitly make their stand known to
in leadership, their staff and suppliers are mis- their brand users.
treated; they are destroying the Amazon rain- It is possible to see brands move around
forest in search of palm oil and causing oil these quadrants, and many brands may decide
spillage in the Niger Delta. Though they have to take responsibility and improve on their
made a statement, they may have even donated business practices to match what they say with
money, that does not excuse them from their what they do. It will not be surprising also to
responsibilities to their staff, customers and see brands that get lackadaisical in their actions
suppliers. Many brands will be in this quad- and lose focus. Good brands can do bad (Aaker
rant, but hopefully they will start taking et al. 2004). Brands must make a conscious
actions to move into the goodness quadrant— effort to focus on their brand values and prom-
saying good and doing good. ises (Roper et al. 2018). To recognise what the
customers expect of them. Importantly, brands
No Public Statement But Private Action should also have ways to stay within the doing
The fact that a brand has not released a state- good and saying good quadrant.
ment does not mean they are not doing good No brand name has been listed for any of
privately. Though customers and other stake- the quadrants. The brands know where they
belong, the customers and other stakeholders 12.5 Brand-Competitors

know about the actions of these brands. They Engagement
know about the staff that have been denied
career opportunities because of the colour of 12.5.1Mergers and Acquisitions
their skin; customers that have experienced
systematic racism and suppliers that have
As competition intensifies and consumer
been unfairly treated. All these stakeholders
needs are changing, brands need to be aware
can place the brands in the right quadrant.
of mergers and acquisitions as a means of
This understanding is, however, meant to be a
survival and maintaining market leadership.
challenge for the brands, to evaluate and
Kraft once tried to buy Unilever, but Unilever
reflect their practices, to see what they have
rebuffed the attempt. O2 and Virgin Media
done and perhaps how best to improve their
planned to merge creating a new UK telecoms
actions. It is not just about donating but also
giant which can rival BT and Sky. Telkom
taking actions in private to show the brand
Kenya had to opt for another strategic direc-
truly cares.
tion as their merger with Airtel Kenya was
called off. Brand managers must be aware of
these prospects, and possible actions to either
12.4.5Collection of Data accept offers in order to ensure their financial
sustainability or to go out and acquire another
As consumers engage with brands across dif- brand. This may, however, not be as easy as
ferent digital media, they leave digital foot- anticipated. Imagine Google buying Apple,
prints. These footprints allow the brands to this might not be possible for many reasons
have a better understanding of the consum- including regulatory reasons, monopoly and
ers. When collecting data for analysis, a brand consumers’ interest.
should place its focus on a few key priorities,
which include finding qualified leads, using
12.5.2The Threat of New Entry
12 opt-in permissions and ensuring ease of use
for the brand and its customers. Vast amounts
of data are being generated due to the The threat of new entries into the market also
increased use of mobile devices, cloud com- poses a challenge for managers. Many compa-
puting and the internet. This has contributed nies may think they can provide innovative
to the significant development of Artificial service compared to what is available now.
Intelligence (AI), which offers opportunities Currently, consumers are averaging around
to enhance campaign creation, planning, tar- seven visits to a bank branch per year. This
geting and evaluation (Mogaji et al. 2020a, b, decline and the growth prospects of technol-
c). The CBO must be able to take responsibil- ogy have shifted banking to smartphones and
ity for the ethical collection of data for mar- websites. There are challengers and neobanks
keting purposes, and likewise, these data are coming on board to disrupt the industry.
should be stored appropriately. In 2015, data These banks do not need any physical
from nearly 157,000 TalkTalk customers were branches as financial services are provided
accessed after a cyber-attack on the telecom- through app platforms on mobiles and tablets.
munications company’s website. This harmed Managers are aware of these threats and try-
the brand reputation. The company was fined ing to withstand them. The traditional brands
a record £400,000 for poor website security, recognise the presence and prospects of the
and it had to compensate customers. challenger banks, and they are extending their
12.5 · Brand-Competitors Engagement
251 12
brands and creating digital and mobile-only (2014) notes that the need to keep creating
banks. Meem is a standalone digital banking sub-categories requires “substantial or trans-
offering from Gulf International Bank (GIB), formational innovation and a new ability to
launched in Bahrain in spring 2018. Israeli manage the perceptions. Customers should
Bank Leumi launched its mobile-only bank- not be confused with these sub-categories
ing subsidiary, Pepper, in June 2017. B was even as brands are trying to meet customers’
launched in 2016 as a digital bank from needs.”
Clydesdale Bank and Yorkshire Bank in the In addition, there are diffusion brands,
United Kingdom. BNP Paribas is the parent also known as “second lines” from fashion
brand of HelloBank. Simplii is the digital- brands like Armani Exchange (AX) for
only arm of CIBC, offering a full suite of Armani, CK for Calvin Klein and Pink for
financial products to the consumer market. Paul Smith (Phau and Cheong 2009). Luxury
While the parent brands are trying to develop brands willing to attract the general masses
the traditional bank brands, alongside this are also creating masstige brands which stand
they are also developing challenger bank for mass prestige (Paul 2018), which are
brands to meet consumer demand. brands that have the mass prestige, appealing
and affordable, but also a prestigious value.
They have been described as luxury brands for
12.5.3Innovative Brands the masses and an accessible super premium
(Silverstein and Fiske 2003). An example is
Innovating the brand is necessary. With bil- Tag Heuer Formula 1 costing £1300 while Tag
lions of dollars in research and development, Heuer Link costs £3950. Tag Heuer can still
brands are staking a massive amount of be considered a luxury brand, but they have
investment in developing innovative products created a subcategory which is more afford-
and services. In 2016, GM spent $581 million able and may appeal to the masses.
to acquire Cruise Automation to gain soft-
ware expertise that is critical to the develop-
ment of autonomous driving systems and, 12.5.5Rebranding and Debranding
eventually, driverless vehicles. Honda Motor
Co was to partner with Waymo, the self- Rebranding and debranding are becoming a
driving car unit of Alphabet Inc. to jointly competitive stance as brands react to actions
develop autonomous cars but walked out of from their competitors. Many brands are
the deal to partner General Motors Co.’s GM rebranding to appear current and up to date.
Cruise LLC unit instead, choosing a familiar Mogaji (2018) observed the trends in UK uni-
partner over a tech giant. Technology has dis- versities to change their logos and rebrand.
rupted many industries, and existing brands This is becoming a norm within the sector.
with these industries must respond to this dis- Brand managers are questioning the currency
ruption or else they may become obsolete. of their brand identity, asking if it is time to
rebrand and appear fresh to the customers.
The decision to rebrand may also be triggered
12.5.4Creating Sub-Categories after a merger or acquisition.
Also, there are growing trends from estab-
Another contemporary issue for brands lished brands to debrand (not demerge).
relates to sub-categories. Strategic questions Debranding is when brands make a conscious
need to be answered. Such as, how far can a effort to reduce the creative elements on their
brand be stretched before diluting the brand? brand identity. This debranding is often about
How many sub-categories can you have within removing their name from the logo and just
a brand in order to meet the demands of the leaving the icon, taking into consideration
customers? Consider Freddo Caramel from that the brand identity is so strong, people can
Mondelez—Mondelez > Cadbury > Dairy recognise the icon without the name. The first
Milk > Freddo > Freddo Caramel. Aaker known example of debranding was by Nike in
1995. MasterCard debranded in 2019, being more forward-thinking and less corporate but
assured that the MasterCard symbol could it may not be suitable for all brands, especially
now stand on its own as the consumer and those that do not have a certain degree of
commercial landscape continued to evolve. existing brand equity. Other brands that have
Toygar (2019) notes that the whole concept is debranded are Starbucks, Coca-Cola and
to make the company appear more personal, McDonald’s.
Case Study 12.2: Apple Versus Pear
Apple is one of the most valuable brands in the brand, being mindful of competition, recognis-
world. In August 2020, it became the first ing the threat of new entrants and innovative
United States’ company worth more than $2 brands. Apple noted that for years, they have
trillion but this has not stopped the brand from used the Apple marks in connection with goods
protecting its territories from competitors, and services in the fields of medicine, health-
both big and small. care and general wellness and perhaps because
Prepear is a mobile application (app) avail- Prepear is considered a wellbeing app, it is
able on Google Play Store and Apple App likely to affect their business. Apple may have
Store for recipe and meal planning. The app is been known for technology but obviously they
owned by Super Healthy Kids, Inc. which is a have extended into healthcare. How well can
small business in the United States made up of they protect their brands in the sector they have
a team of five staff. On January 26, 2017, Super extended into?
Healthy Kids, Inc. filed an application to regis- Considering Prepear is a small company
ter the logo for Prepear. As a final step before and may not have the resources to take up a
approval, the patent office published their legal case with a big brand like Apple, they cre-
application in late 2019 for any objection and ated a petition and invited people to sign, with
this got the attention of Apple and they raised the possibility that it will force Apple to change
12 an objection on the last day of the window to their mind and withdraw the opposition. As at
oppose the trademark application. August 2020, the petition has been signed by
In March 2020, Apple filed a motion to the over 230,000 people. There have been a lot of
United States Patent and Trademark Office press coverage about this lawsuit and the over-
before the Trademark Trial and Appeal Board all sentiment is that Apple is abusing its posi-
to oppose the trademarking of Prepear’s logo. tion and bullying small firms.
Apple filed for opposition on two grounds.
Firstly, Prepear’s logo is likely to cause confu- Reflective Questions
sion, mistake or to deceive and secondly, 55 Do you think Apple should have opposed
Prepear’s is a dilution of a famous mark. Apple the logo of a small company, which may
claims the “minimalistic fruit design” of not be directly competing with them?
Prepear’s pear logo and its “right-angled leaf 55 What are the benefits of trademarking and
… readily calls to mind Apple’s famous Apple registering a brand identity?
Logo and creates a similar commercial impres- 55 How much resemblance would you expect
sion.” Apple has a logo which is described as a between logos to justify a lawsuit? Is it
“design of an apple with a bite removed’” while because they both use fruits or because they
Prepear has a silhouette of a pear with an both have a leaf ?
attached leaf. A layperson could probably see 55 How would the negative press and com-
the difference between an apple and a pear, but ments affect the Apple brands?
Apple feels differently about this and have 55 Beyond the petition, what would you advise
taken this legal route to protect their brand. Prepear to do? Should they change their
Brand managers need to be aware of these logo or battle it out with Apple?
contemporary issues such as protecting a
12.6 · Brand Customer-Community Engagement
253 12
12.6 Brand Customer-Community Brand evangelists can engage on social media,
Engagement generate valuable content, and it builds more
awareness for the brands. They are more than
12.6.1Social and Visual Expression
brand influencers who might have been paid to
share the experience. Brands need to recognise
and work with these brand evangelists to
Some people use a brand just because the
encourage such evangelism. Brand managers
brand stands as a representation of their val-
need to focus on building trust and enhancing
ues and what they believe in. Some people
the brand positioning, which will resonate with
choose not to eat beef burgers because they
the consumers to make brand evangelists in the
are vegetarian and that means they are exer-
marketplace (D'Lima and Srivastava 2019).
cising their choice with a burger which aligns
The brand must ensure a form of congruence
with their habits/beliefs. There are also many
between individuals and their favourite brands
people that use an iPhone instead of an
to convert them to a loyal customer and brand
Android phone because they want to feel cool.
evangelist (Nandy and Sondhi 2020).
This simply means there are perceptions of
functional and emotional benefits by custom-
ers when they consume brands (Lin et al.
12.6.3Brand Boycott
2017). The social and visual expression also
recognises the growing use of computer-
generated models being used in advertising. On the extreme of this brand engagement is
As consumer are using a brand because they the boycott. This is when customers are no
have been influencers by a real social media longer willing to use the product, often because
celebrity, there are contemporary issues in of a scandal, an action of the staff or their
further understanding the growing trends of negative impact on the environment. The boy-
these computer–generated models. Shudu, cott often relates to religious beliefs (Dekhil
Margot and Zhi do not exist but they are et al. 2017), consumer rights as well as eco-
computer-generated models for French fash- nomic development (Chiu 2016). Some big
ion house Balmain. They are described as the brands decided to boycott Facebook, refusing
Balmain’s Virtual Army (Balmain 2020). As a to place an advertisement on the social media
contemporary issue, this raise questions on network because of racism and hate speech on
how do consumers perceive brands using the platform. There has been a call to boycott
computer–generated models, is it a true social Oreo biscuit and other brands of Mondelez
and visual expression, does it share same because the company decided to close its
attachment like real human social media influ- American factories and move production to
encers and what are the prospects for human Mexico. There are many reasons for asking for
influencers in an already saturated and com- a boycott; often, these boycotts are called for
petitive market. Brands needs to recognise on social media, using a hashtag to raise
how these benefits influence the purchase awareness and affect the sales and the value of
behavioural response of the consumers. This the brands. The brand manager must, as a cri-
should encourage more brand engagement sis manager, recognise these issues and identify
initiatives and building the brand community. any brewing calls for boycott. These boycotts
are not only limited to big global brands;
smaller brands can be boycotted as well.
12.6.2Brand Evangelist
This visual and social expression can also lead 12.7 Conclusion
to brand evangelism where there are consum-
ers who believe in the brand. These users feel This chapter brings us to the end of this intro-
“proud” to be associated with the brand and duction to brand management. Brand man-
can share it with their friends and network. agement is a holistic process that aims to add
value to a brand, which could be a person, an

event, an organisation or an object. Branding 55 Brands need to consider their stance on
is an engaging and pertinent topic; it is a the brand goodness quadrant.
broad topic, and there are still many more 55 Brand-competitor engagement is criti-
areas to be covered. In the previous chapters, cal. Brands should consider mergers or
we explored the basic concepts of brand, acquisitions, to remain innovative while
branding and brand management. Ethics is a recognising the threat of new entrants.
fundamental feature of brand management. 55 Brand evangelists are needed, and they
In this concluding chapter, we have should be recognised to share their
described the role of a Chief Brand Officer as experience, and at the other extreme,
the officer responsible for the management of brand managers need to be aware of the
the brand process, curating the appealing threat of boycotts and what can cause
message, shaping perception and importantly, them.
managing crises. The CBO is also responsible
for dealing with the contemporary issues in
brand management, recognising the brand,
customer, competitor and the community as
► Student Activities
stakeholders. Understanding these relation-
1. How would you describe contemporary
ships and managing them is the key role of
issues in brand management?
the CBO.
2. What do you think are the key challenges
While many of the concepts and examples
for brand managers today?
we have seen may be relevant for global
3. What are the key issues or what are the
brands, this knowledge and understanding
implications of consumer engagement with
can be applied to smaller brands as well, be it
brands on social media?
charity, sales, retail or humans. Brands need
4. Do you think GAFAM or the “Big Five”—
to be managed. A conscious effort has been
Google, Amazon, Facebook, Apple and
made to identify and discuss different con-
12 cepts and to show the relationship between
Microsoft—will exist in 10 years?
5. How would you expect a brand to engage
each concept from the first chapter to the last.
with the Black Lives Matter (BLM) move-
It has been a pleasure taking this journey
ment?
with you, and I wish you all the best.
6. Should a brand solve their diversity prob-
Remember, you are a brand. Go manage
lem by employing computer generated
your brand!
images and virtual avatar models in lieu of
real people of colour?
7. What are the implications of brand boy-
Key points cotts? Do you think they work? Why should
55 Chief Brand Officer is an emerging a brand manager be concerned?
c-suite role. This is not limited to global 8. As you prepare for a career in the branding
brands. industry, how do you think you will manage
55 Smaller brands need to have a Chief your brand? ◄
Brand Officer, who could also be the
founder or marketing manager depend-
ing on the type of brand. References
55 A brand should effectively engage with
their customers, personalise their expe- Aaker, D. 2014. 10 most common brand-
rience and co-create value. ing challenges. Accessed 8 8, 2020. https://
www.p rophet.c om/2014/09/the-1 0-m ost-c ommon-
55 Brand-community engagement is key,
branding-challenges/.
often the outward-facing activities to Aaker, D. A. 1996. Measuring brand equity across prod-
showcase the goodness of the brand. ucts and markets. California management review
38(3): 102–120.
References
255 12
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257
Supplementary
Information
Book Summary – 258
Index – 261

E. Mogaji, Brand Management, https://doi.org/10.1007/978-3-030-66119-9
258 Book Summary
Book Summary
Chapter Key question Overview
Chapter 1: What is a brand, The idea is to introduce the reader to the concept of branding,
Introduction branding and brand which is the fact that everything can be branded, but different
to Branding management? sectors may require a different approach to branding. Likewise,
there are different professionals responsible for brand
management.
Chapter 2: What is the economic, The idea is for readers to recognise that ethics should be the
Ethical social and environmen- bedrock of every business. However, it may be difficult for more
Branding tal impact of a brand? established brands, but small brands may be more flexible in
their approach. Likewise, there could be financial implications,
but the satisfaction of doing good is excellent.
Chapter 3: What are the guiding The reader needs to recognise the importance of brand values
Brand principles and core which are the guiding principles of a brand. These principles
Philosophy values of a brand? include the core values, mission and vision statement of the
brand, which serve as a promise and to set the brand apart from
others. Often this may be coming through the founders or the
senior management team. They provide the strategic direction
and expect staff to work along in that direction.
Chapter 4: How is the brand being The perception of a brand is in the minds of the consumers.
Brand perceived in the minds This perception makes them associate innovation with a brand,
Positioning of the consumers? and likewise, they associate poor service with a brand. Brands
will have to keep up with their excellent works, improve on
innovative product development and quality service provision to
convince the consumers about their positions. Brands are placed
on pedestals in the minds of the consumers, and if the brands
do not do well, they can be replaced.
Chapter 5: What are the physical The reader must recognise the value and importance of brand
Brand elements that distinguish identity, something that makes a brand a distinguished
Identity a brand and make it company. Importantly, brand identity should not be about the
highly recognisable? logo, which is visual, it could be auditory which is a sound that
is unique to a brand or tactile which is the shape and design of a
brand to make it different. The role of the designer is also
essential and deciding on this may be based on the type of
brand, the expertise of the designer and the needed task.
Chapter 6: How can consumers be Having a brand identity is not enough. The beautiful logo is not
Brand aware of and recognise a the end of Brand Management. Brands need to make sure that
Integration brand identity? their brands are well integrated and seen by the target audience.
This could be through advertisement and communicating a new
brand, partnering with an organisation as a form of corporate
social responsibilities or sponsoring an event. The main idea is
to keep raising awareness about the brand and making it more
recognisable.
Chapter 7: How can digital Digital channels and assets are becoming an integral part of
Digital channels and assets be business practices and brand needs to use it effectively to
Branding used to communicate communicate and position their brands. This includes content
and position a brand? creation on social media, analytics and insight into brand
mention, sentiment analysis to understand brand’s positioning
and prompt response to consumers’ queries. This also includes
other forms of digital devices like location-based advertisements
to provide customised experiences and chatbot messaging to assist
customers at every touchpoint. Consumers are getting used to
these technologies, and brands need to adopt them as well.
259
Book Summary
Chapter Key question Overview
Chapter 8: What is the financial and There are many brands out there. There are many car brands,
Brand Equity non-financial value of a but some are more valuable than others. These values can be
brand? financial, in terms of the worth of the company, and it can be
non-financial in terms of consumer’s perception of the brand.
The consumer feels the brand is unique and different on its own.
Brand Equity represents the value of a brand. The brand
ensures that they put everything in place to increase this value.
Scandals, unethical practices and lack of innovation can affect a
brand’s worth.
Chapter 9: What other venture can A brand that has acquired goodwill from consumers, being
Brand this brand be involved around for many years and innovative with their product
Extension in? development and service quality may decide to extend their
brands. The brand can build on their existing name or come up
with a new brand name to make different or related products
and enter a new market. This extension is a strategic decision
that should not be taken lightly as there are financial and
human resources implications. The new product line will have to
be developed, branded and marketed.
Chapter 10: How do brands manage Brands may want to increase their market shares by acquiring
Brand the process and another brand, likewise, to save cost and operate more
Mergers and aftermath of mergers effectively, Brands may decide to merge. It is, however, essential
Acquisition and acquisitions? to consider the management of this process. With brands
coming together, it is essential to understand how their values
align and how they can be incorporated.
Chapter 11: With a different product Brand extension, mergers and acquisitions extend the product
Brand and line extension, how line of a brand. There are many brands now operating under a
Architecture can a brand become big brand umbrella. It is now essential for the brand manager to
more structured? arrange the brand and structure it for effective administration
and control. This decision may involve employing more people,
perhaps a brand manager for each product line.
Chapter 12: With the changing The business environment is changing, and likewise, consumer
Contemporary consumer behaviour and behaviours are changing. Brands are becoming aware of the
issues in business practice, how consumers’ power to shape the brand through engagement. It is,
Brand can a brand remain therefore, becoming more critical for brands to be aware of the
Management commercially relevant contemporary issues around brand management, especially the
and viable? prospect of social media, sustainable consumption and ethical
practices. This means it is required of a brand manager to be
innovative and creative. Brand managers must also be up-to-date
and ensure that the decision they are making can guarantee the
relevance of a brand in the future.
261 A–B
Index
–– architecture 168, 211, 213, 218, 220, 227–239, 259

A –– boycott 253, 254
–– co-creation 233
Aaker, D. 4, 48, 67, 69, 163–165, 167, 184, 192, 220, 228,
–– communication 37, 48, 95, 155, 177, 219, 220, 245,
230, 236, 246, 249, 251
246
Access 27, 56, 75, 128, 146–149, 151–153, 155, 166, 170,
–– customer-community engagement 243, 244, 253
177, 178, 194, 197, 210, 216, 247, 248
–– customer engagement 243, 245, 246
Accessible 32, 50, 56, 60, 155, 197, 213, 251
–– engagement 24, 77, 147, 155, 245, 253
Acquired brand 59, 99, 117, 154, 163, 197, 210–215,
–– evangelist 10, 33, 134, 155, 244, 253, 254
218–221, 229, 230, 232, 235–237
–– extension 33, 114, 143, 168, 183–204, 227–230, 234,
Acquiring brand 210–215, 218–221, 229, 230, 235
238, 247, 259
Acquisitions 82, 93, 117, 118, 157, 162, 166, 167, 169,
–– goodness quadrant 248–250, 254
175, 178, 179, 187, 197–201, 204, 207–223, 227–238,
–– identity 5, 14, 31, 40, 47, 59, 77, 87–120, 125, 126,
250, 251, 254, 259
132, 135, 138, 140, 142, 143, 157, 163–165, 196, 200,
Actionable 54, 56
203, 218, 220–222, 227–229, 231, 235–237, 251, 252,
Adjust 36
258
Advertising, vii 4–6, 8, 11, 13, 31, 36, 37, 67, 74, 75, 81,
–– integration 9, 13, 81, 92, 103, 114, 118, 125–143,
109, 113, 125, 128–130, 134, 137, 149, 151, 163, 170,
163, 220, 236, 258
177, 184, 185, 191, 192, 209, 212, 215, 216, 231, 232,
–– leadership 219
236, 246, 248, 253
–– management, vi, vii 3–20, 24, 25, 28, 32, 35, 53, 66,
Advocate 33, 38, 70
67, 71, 76, 81, 88, 89, 105, 117, 119, 125, 126, 128,
Alex 3, 13, 23, 45, 65, 87, 125, 146, 155, 161, 183, 208,
131, 136, 137, 139, 140, 143, 147, 149, 150, 153–156,
227, 242
158, 161, 162, 168, 177, 184, 194, 200, 204, 208, 209,
Alienation 192
215, 216, 218, 219, 227, 237, 238, 242–254, 258, 259
Architecture 95, 101, 102, 115, 117, 168, 211, 213,
–– managers’ implication 153, 204, 208, 210, 218, 219,
218–220, 227, 228, 235, 237, 238
222, 228, 236–239
Ardova 100, 101, 112
–– name 5, 13, 32, 49, 88, 91–97, 106, 107, 120, 127,
Assets 15, 47, 48, 95, 107, 146, 147, 161–167, 169, 173,
129, 135, 138, 162–164, 166, 169, 183–185, 189, 191,
174, 177–179, 186, 194, 195, 211, 214, 218, 258
192, 194–196, 200, 203, 204, 220–223, 235, 237, 249,
Asset valuator 173
259
Association 4, 5, 7, 8, 11, 16, 27, 33, 34, 48, 50, 57, 65,
–– organisation 219, 235
69, 71, 73, 77, 82, 88, 103, 128, 132, 134, 138,
–– ownership 12–15, 219
140–142, 161, 162, 164, 165, 167, 177, 178, 185, 186,
–– philosophy 45–60, 70, 71, 74, 76, 82, 88, 92, 93, 141,
192, 217, 237, 238, 247
143, 154, 157, 218, 258
Attitude 54, 75, 76, 78, 91, 97, 134, 161, 163, 165, 189,
–– portfolio 209–212, 214, 218, 219, 227, 228, 230, 238,
231, 232, 236
239
Audit 35–37, 154, 175, 228, 234, 235, 238
–– positioning 50, 65–83, 126, 127, 162, 168, 253, 258
Auditory 103, 104, 119, 258
–– relationship styles 236, 237
Availability 69, 93, 114, 151, 152, 246
–– story, vi, vii 13
Awareness 4, 5, 7, 8, 13, 29, 36, 40, 74, 80, 81, 125–127,
–– umbrella 227, 259
130–132, 134, 135, 138, 142, 143, 152, 161, 162, 164,
–– valuation 12, 162, 167–172, 175, 176, 178, 179
166, 172, 174, 177, 178, 184–187, 189, 191, 192, 197,
Brand-community engagement 246–250, 254
202, 203, 216, 218, 221, 222, 231, 236, 245, 246, 248,
Brand-competitors engagement 250–252
253, 258
Branded house 217, 230–235, 237–239
Branding, vi–viii 3–20, 24–31, 33–41, 48, 53, 88–91,
B 93–95, 103–106, 108, 109, 114, 117, 119, 120, 125,
127, 137, 142, 147, 157, 161, 162, 196, 209, 215, 219,
Benefits 7, 17, 33–35, 38, 40, 41, 46, 53, 57, 58, 68, 222, 235, 242, 243, 248, 254, 258
70–72, 75, 88, 106–108, 119, 120, 125, 126, 128, 129, BrandZ 169–171, 175, 176
132, 133, 142, 143, 150, 153, 165–167, 178, 185–187, Business, vii 4, 9, 10, 12, 13, 16, 18, 19, 23–29, 31,
191, 192, 194, 195, 209, 211, 223, 230–232, 238, 243, 33–38, 40, 41, 45–47, 50–55, 57, 58, 60, 68, 73, 82,
247, 248, 252, 253 87, 92–95, 110, 114, 115, 118, 119, 127, 129, 131,
Bespoke fonts 99, 112, 119 132, 136, 137, 139–141, 146, 147, 149–154, 156, 157,
Brand(s), vi–viii 3–20, 23–35, 37–41, 45–60, 65–78, 166–169, 171, 178, 183–186, 192, 194–197, 199, 202,
81–83, 87–91, 93, 94, 97, 99–110, 112–115, 117–120, 204, 209, 210, 212, 215–219, 222, 233, 234, 242–244,
125–144, 146–158, 161, 162, 164–179, 183–200, 246–249, 252, 258, 259
202–204, 208–223, 227–239, 242–254, 258, 259 Buying In 235
262 Index
C Conceptualizing 46, 51, 66, 68–70, 73, 89, 94–97, 115,

149, 176, 234
Case study(ies), vii 7, 12, 14, 18, 29, 39, 50–55, 73, 80, Conclusion 4, 24, 40, 41, 59, 60, 66, 82, 83, 88, 119,
94, 103, 104, 114–117, 130–133, 138, 141, 152, 156, 120, 126, 142, 143, 147, 156–158, 162, 178, 179,
166, 169, 199–201, 218, 227, 229, 230, 246, 247, 252 184, 203, 204, 209, 222, 223, 228, 238, 239, 243,
CBO. See Chief Brand Officer 253, 254
Certified B Corporations 26, 34 Congruence 93, 216, 233, 253
Challenges, vi, vii 12–14, 17, 23, 24, 31–35, 41, 46, Congruency 141, 192
52–54, 66, 68, 79–81, 90, 92, 142, 146, 150, 151, 153, Considerations, vi 11, 24, 28–32, 36, 41, 46, 58, 59, 66,
154, 171, 183, 184, 191, 194, 209–212, 214–218, 229, 68, 73, 81, 82, 107, 118–120, 126, 133, 140–142, 155,
230, 244, 246, 254 157, 162, 168, 173–178, 184, 187, 199, 202–204, 219,
Challenges for 32, 35, 54, 68, 79, 151, 211, 214, 216, 223, 233, 251
217, 221, 229, 230, 246, 254 Consistency 52, 107, 109, 112, 114, 115, 119, 140, 171
Challenges of 12, 17, 24, 31, 34, 35, 41, 66, 79–81, 92, Constructs, vii 9, 17, 230
214–216 Consultants 11, 13, 18, 19, 35, 36, 50, 51, 94, 115, 137,
Changing consumer behaviour 18, 38, 79, 80, 150, 217, 143, 216, 219, 222, 235
243, 246, 247, 259 Consumers 3, 5, 8–11, 13, 16–18, 20, 24–28, 30–38, 40,
Charity, vii 3, 4, 10, 12, 13, 15–17, 23, 28, 36, 45–47, 55, 45–47, 49, 52, 54, 56, 57, 59, 60, 65–83, 88–91,
58, 65, 68, 76, 87, 89, 94, 106, 107, 125, 127, 130, 135, 95–97, 99, 102, 104–107, 109, 118, 119, 126, 127,
140, 143, 146, 153, 154, 161, 175, 179, 183, 186, 202, 129–131, 134, 137–141, 146–157, 162–165, 167–171,
204, 215, 217, 221, 223, 227, 239, 242, 244, 248, 254 173–178, 183, 184, 190–192, 195–197, 202, 204, 208,
Chief Brand Officer (CBO) 242–246, 250, 254 211–213, 217, 218, 220, 229, 230, 233, 236, 242, 243,
Clearing out 235 245–248, 250–254, 258, 259
Co-create, viii 57, 132, 197, 203, 254 –– behaviour 18, 20, 31, 35, 38, 52, 79, 80, 129,
Co-creating values 245 147–150, 153, 157, 175, 191, 217, 236, 242, 243,
Co-creation 16, 141, 185–187, 189, 191–194, 198, 203, 247, 259
204, 245 –– engagement 66, 77, 150, 153, 254
Code 3, 13, 23, 45, 46, 49, 65, 87, 100, 101, 125, 130, Consumption 24, 27, 28, 37, 40, 150, 238, 242, 259
146, 161, 183, 208, 227, 235, 242 Contemporary 73, 90, 117, 249
Coherent brand 236, 237 Contemporary issues 24, 241–254, 259
Colleagues, ix 139–140 Content, viii 104, 110–115, 132, 133, 136, 146, 153,
Collection of data 243, 250 155, 245, 253, 258
Colour 5, 9, 10, 17, 32, 59, 87, 90, 91, 94–97, 99–101, Continuously 60, 82, 137, 138
103, 108, 111–115, 118, 119, 135, 136, 138, 164, 220, Continuous reminder 57, 59
228, 232, 235, 248, 250, 254 COO. See Country of origin
Commercial fonts 98, 99, 112 Corporate communications 88, 95, 102
Communication 8, 20, 31–33, 35–37, 46, 47, 56, 59, 65, 75, Corporate identity 88, 89, 94, 95, 97, 103
77–79, 81–83, 88, 93, 95, 98, 99, 102, 105–107, 109–111, Corporate Social Responsibility (CSR) 23, 28, 38–40,
114, 117, 126, 127, 129, 138, 139, 143, 151, 177, 197, 125, 128, 130, 131, 137, 138, 142, 143, 165, 246,
211, 212, 220, 222, 236, 237, 239, 246–248, 250 248–250, 258
Company, vi 3–5, 9–12, 15, 16, 18, 19, 23, 25–28, 33, Cost 7, 23, 108, 162, 167, 172, 175, 178, 187, 191, 192,
34, 36, 38, 45, 47, 49–59, 67, 68, 70, 71, 73–76, 87, 199, 215, 222, 231, 238, 259
92–94, 96, 99, 100, 102–105, 107, 108, 110, 112, 114, Country of origin (COO) 49, 51, 59, 129, 165, 176,
117, 125, 127, 128, 130, 133, 135, 138, 141, 143, 146, 177, 179, 185, 190
154, 156, 157, 162–164, 166, 168–170, 172, 174, 178, Creativity 16, 17, 19, 20, 89
183, 185–188, 192–197, 199, 203, 208, 210–222, Credibility 17, 34, 38, 54, 57, 58, 106, 107, 119, 128,
228–231, 237, 238, 244–247, 250, 252, 253, 258, 259 129, 139, 143, 189, 202, 203, 216
Competing attention 80 Crisis 28, 33, 139, 143, 214, 243, 245, 253
Competing brands 67, 72, 80, 81, 83, 195, 210 CSR. See Corporate Social Responsibility
Competing offers 246 Customers 5, 6, 9, 10, 13, 16, 17, 20, 26, 30–37, 40, 47,
Competitors 4, 6, 7, 9, 16, 25, 40, 54, 68–71, 76, 81, 87, 49, 51–59, 65, 66, 68–72, 74–81, 89–91, 100, 101,
91, 92, 101, 107, 118, 119, 128, 139, 143, 163–165, 104–107, 109, 119, 126, 132, 135, 138, 139, 141–143,
168, 177, 186, 187, 209–212, 214, 215, 218, 219, 242, 147–152, 154–157, 161, 163–165, 167–171, 174, 175,
244, 246, 251, 252, 254 177, 178, 183, 185–188, 190–192, 197, 203, 204, 211,
Complimentary 110 212, 214, 216–221, 230–233, 235–238, 242–251, 253,
(Mis)Conception 8 254, 258
Concepts, vi–viii 8, 9, 12, 26, 46, 66, 83, 87–90, 92, 115, –– awareness 236
126, 134, 162, 163, 177, 184, 189, 196, 227, 228, 243, –– charter 49, 58, 154
252, 254, 258 –– experience 34, 101, 161, 163, 243, 245
Index
263 C–I
D Finance 169, 172, 174–176
Financial difficulties 214, 222
Data source 175, 176 Financial implications 18, 222, 239, 258
Debranding 251, 252 Financial limitations 13, 81, 127, 128, 142
Demerged brand 210, 217, 218, 237 Flagship 186–189, 191–193, 202–204
Designing 11, 13, 40, 67, 98, 100, 101, 104, 107–110, Founder 10, 13, 36, 38, 47, 50–54, 56, 58, 59, 68, 92,
117, 118, 140, 220, 235, 239 107, 136, 175, 215, 254, 258
Digital 4, 93, 101, 113, 134, 146–151, 153, 154, 156, Frame of reference 68, 69
157, 166, 177–179, 187, 212, 250, 251, 258 Franchising 185, 191, 192, 194–195, 198, 204, 229
Digital era, vii, xiii 145–158 Fusion 220–221, 232
Direction 10, 11, 36, 46, 49–52, 57, 71, 75, 82, 93, 115,
129, 139, 154, 157, 168, 183, 188, 213, 215, 219, 222,
234–236, 245, 250, 258 G
Disruptive brands 149, 150
Geographical differences 127–128
Distinguish 4, 9, 16, 55, 57, 59, 72, 88, 91, 98, 99, 102,
Global 4, 7, 11–14, 17, 18, 24, 26, 34, 68, 78, 87,
105–107, 119, 120, 137, 143, 164, 258
93–95, 105, 110, 132, 133, 139, 141, 153, 154,
Distinguished 57, 72, 99, 120, 258
169–172, 175, 176, 178, 208, 214, 216, 223, 242–245,
Diversity and inclusion 248
253, 254
Documenting 54, 55, 70
Global brands 4, 11–14, 24, 68, 78, 87, 169–171, 176,
Due diligence 36, 215, 216, 219
178, 208, 243, 244, 253, 254
Goals 19, 20, 24, 25, 36, 40, 52, 57, 98, 118, 132
E Greenwich 98, 99
Growth 24, 33, 51–53, 55, 57, 59, 93, 104, 107, 137,
Emotional 34, 77, 92, 95, 135, 141, 151, 163, 165, 168, 149, 166, 167, 170, 172, 174, 185, 193, 202, 204, 209,
170, 172, 178, 189, 203, 220, 245, 253 229, 230, 234, 235, 238, 246, 250
Employed 3, 10–11, 18, 110, 137, 148 Guidelines 37, 105, 109–111, 113–120, 140, 220, 232,
Employees 3, 5, 18, 26, 34, 37, 54, 55, 58, 101, 108, 234, 237
110, 133–135, 139, 169, 217 Guiding principle 45–47, 51, 55, 57–60, 76, 78, 242,
Empowered 56, 149, 152, 155, 156, 177, 247 258
Endorsed brands 231–233, 238, 239 Gustatory 105–106, 119
Engage 3–5, 9–11, 13, 17–20, 24, 32, 37, 40, 46, 48, 50,
56, 59, 66, 67, 77, 78, 80, 82, 83, 88–90, 94, 102, 105,
113, 119, 127, 130, 131, 134, 137, 139, 140, 146–153, H
155, 156, 174, 177, 217, 231, 237, 244, 245, 247, 248,
250, 253, 254 House of brands 220, 230–231, 233–235, 237–239
Engaging 6, 8, 17, 20, 32, 34, 46, 55–57, 71, 75, 77, 78, Human brands 12, 14, 20, 24, 49, 177–178, 189, 200
82, 89, 131, 137, 142, 150–152, 154–157, 176, 247, Hybrid brand 233
254
Enhancing 5, 75–78, 81, 101, 134, 161, 167, 253
Equity 18, 107, 119, 132, 134, 161–179, 184, 186, 187, I
189, 191–195, 199, 202, 204, 210, 216, 218, 233, 235, Identity(ies) 5, 26, 47, 66, 87, 125, 157, 161, 196, 212,
244, 252, 259 227, 251
Ethical branding 23–41, 258 Importance of 7, 15, 18, 20, 66, 71–73, 140, 162,
Ethics 24–25, 27, 28, 35, 40, 46, 47, 50, 60, 68, 88, 157, 167–169, 171, 174, 199, 228, 235–236, 258
202, 254, 258 Inclusivity 32, 248
Evaluation 19, 37, 76, 81, 97, 104, 142, 151, 154, 162, Influencers 4, 6, 11, 13, 16, 31, 78, 134, 146, 149, 155,
167, 168, 171, 175, 178, 202, 227, 238, 239, 250 156, 165, 177, 247, 253
Expectation 10, 17, 24, 31, 32, 36, 41, 52, 54, 59, 65, Information 5, 12, 17, 28, 31, 32, 34, 36, 38, 50, 55, 56,
79, 81, 82, 93, 109, 129, 139, 142, 147, 154, 155, 171, 58, 67, 92, 102, 105, 109, 110, 112–115, 130, 133,
202, 214, 215, 222, 233, 243, 245 138, 140, 146, 148, 151–153, 155, 167, 169, 172, 173,
Expensive 23, 24, 33, 35, 40, 52, 53, 74, 78, 94, 95, 106, 175, 176, 216, 237
125, 127, 128, 142, 169 Innovation 11, 16–17, 20, 40, 50, 66, 93, 132, 146, 147,
Extension 33, 73, 114, 138, 143, 168, 183–204, 149, 165, 174, 176, 187, 209, 212, 229, 230, 244, 251,
227–230, 232–236, 238, 245, 247, 259 258, 259
Innovative 17–19, 48, 66, 71, 73–76, 78, 82, 94, 148,
150, 154, 156, 162, 163, 174–176, 183, 203, 215, 230,
F 250–252, 254, 258, 259
Fairtrade 17, 26–27, 29, 34 Innovative brands 150, 251, 252
Features 4, 10, 12, 16, 46, 56–57, 68–70, 72, 74, 104, Insight 12, 19, 51, 53, 54, 76, 88, 99, 110, 118, 146, 153,
107, 110, 111, 143, 147–150, 177, 187, 188, 199 154, 163, 168, 170, 171, 175, 186, 258
264 Index
Integrate 7, 8, 14, 35, 49–51, 53, 55, 58, 60, 75, 82, 102, 169, 175, 177, 188, 194, 200, 204, 208–211, 214–219,
106, 114, 125–132, 136–143, 161, 162, 187, 189, 197, 222, 227, 230, 237–238, 242–254, 258, 259
200, 209, 211, 220, 248 Management team 50–51, 88, 107, 169, 175, 214, 218,
Integration 9, 13, 24, 37, 58, 59, 81, 92, 103, 104, 106, 258
109, 114, 118, 125–143, 155, 161–163, 168, 215, 220, Manager 3, 4, 9–13, 15, 18–20, 23, 24, 29, 31, 32,
222, 223, 227, 233, 236, 237, 258 34–38, 40, 41, 45, 46, 48, 49, 53, 55, 57–60, 68, 71,
Intellectual 166, 168, 194, 195 76, 78, 79, 81, 82, 90, 109, 117–119, 125, 136, 137,
Interbrand 11, 12, 169, 171–172, 175, 176 140, 143, 146–148, 153, 154, 157, 161, 162, 164, 167,
Introduction 3–20, 24–25, 46, 66, 88, 126, 147, 148, 174–178, 183–186, 194, 202–204, 209, 211, 212, 215,
162, 184, 209, 228–229, 243–244, 253, 258 217, 219, 220, 222, 223, 227, 229–232, 234–238,
Investment 16, 28, 52, 54, 88, 101, 106, 114, 125, 243–247, 250–254, 259
128–130, 138, 162, 166, 168, 170, 171, 178, 187, 192, Managing 5, 6, 10, 11, 13, 14, 18, 19, 38, 65, 94, 154,
204, 215, 217, 222, 245, 251 156, 157, 175, 177, 204, 215, 223, 230, 231, 237,
Inward expansion 229 242–244, 254
Market dynamics 53, 186, 209, 211
Market entrance 191
K Marketing 4–6, 8–11, 13, 18, 25, 31, 32, 47, 54, 67, 75,
77–79, 88, 93, 96, 99, 104, 109, 114, 126, 129,
Kapferer, J. 48, 90, 91, 107, 163
132–135, 138, 143, 149, 151, 155, 162, 166–168, 177,
Keller 4, 8, 48, 50, 68, 69, 77, 164, 165, 176, 177, 184,
184, 191, 192, 194, 200, 203, 211, 213, 219, 222, 231,
237
232, 235, 236, 244, 245, 247, 248, 250, 254
Key points 19, 41, 60, 83, 120, 143, 157, 178, 184, 195,
Mascot 135–136
196, 204, 222–223, 228, 238, 254
Memorable 16, 54–57, 60, 94, 119
Key question 4, 24, 46, 49, 66, 88, 118, 126, 147, 162,
Merged brands 210, 215–218
184, 209, 228, 243, 258, 259
Mergers 82, 93, 117–118, 157, 167, 169, 175, 178, 197,
Keywords 94, 151, 163
208–223, 227–229, 231, 233–238, 250, 251, 254, 259
Knowledge 4, 5, 19, 25, 26, 31, 34, 36, 55, 89, 115, 126,
Mind 3, 4, 8–9, 16, 17, 31, 35, 50, 66–68, 70–75, 77, 78,
134, 139, 142, 148, 150, 154, 164, 165, 173, 174, 191,
80–83, 89, 104, 126, 129, 139, 143, 170, 227, 246, 252
194, 221, 222, 228, 236, 254
Misconducts 139
Models 24, 31, 33, 38, 91, 94, 95, 113, 134, 151, 162,
169, 171, 175, 194, 253
L Mogaji, E. 24, 32, 48, 49, 59, 71, 78, 89, 98, 99, 109,
Launching 40, 138, 143, 230, 234 114, 117, 129, 130, 134, 136, 140, 141, 149, 151, 164,
Learning objectives, vii 178, 186, 196, 214, 220, 222, 236, 237, 245, 247, 248,
Learning outcomes 4, 24, 46, 66, 88, 126, 147, 162, 250, 251
184, 209, 228, 243 Monitoring 6, 36, 37, 81, 142
Legal expectations 214, 222 Multifaceted 3, 5, 8, 34–35, 40, 237
Legal implications 142, 211
Letter cases 99, 100
Licensing 166–168, 172, 178, 185, 191, 192, 194–195, N
198–200, 203, 204, 229 Name 4, 32, 49, 67, 90, 125, 162, 183, 210, 227, 249
Logo 3–5, 9–11, 13–15, 17, 32, 39, 47, 71, 77, 87–91, New brand 36, 38, 40, 45, 46, 53, 59, 68, 69, 74, 75, 93,
94–105, 107–112, 114, 115, 117–120, 125, 128, 94, 109, 110, 114, 115, 117–119, 126, 129, 137–140,
131–138, 140, 142, 154, 155, 163, 165, 203, 220–222, 148, 149, 154, 165, 168, 174, 183–192, 194, 196, 197,
231, 248, 251, 252, 258 199, 202–204, 211, 212, 215–223, 227, 231, 234, 235,
Loyalty 5, 10, 11, 13, 16, 26, 33–35, 57, 66, 82, 106, 237, 246, 258, 259
119, 129, 143, 151, 156, 161, 162, 164–165, 169, 175, Non-performing brands 213, 214, 217, 218
177, 178, 184, 186, 187, 189, 191, 192, 202, 203, 212, Non-profit organisations 13, 26, 28, 140
232, 237, 245 No public statement but private action 249
LUP 39, 40
O
M Olfactory 105, 119
Management 3–20, 24, 25, 27, 28, 32, 35, 38, 45, 47, Original 18, 90, 104, 106–107, 119, 138, 172, 184, 188,
49–51, 53, 56, 66, 67, 71, 74–76, 81, 88, 89, 92, 105, 193
107, 115, 117–119, 125, 126, 128, 131, 136, 137, 139, Outward expansion 229–230
140, 143, 147, 149, 150, 153–156, 158, 161, 162, 168, Overvaluation 175
Index
265 I–S
Overview 3–4, 19, 24, 46, 66, 88, 110, 125–126, R
146–147, 161–162, 183–184, 209, 227–228, 242–243,
258, 259 Rational 163
Owner 3–5, 9–13, 15–19, 36, 46, 48, 51, 53, 58, 59, Readers 110, 258
65–68, 70, 71, 73, 75–80, 83, 88, 92–95, 107–110, Reasons for 15, 54, 185–186, 210–211, 213–216, 229,
114, 115, 118–120, 126, 133, 136–138, 140, 143, 147, 230, 253
151, 153, 157, 161, 166–168, 178, 185–187, 191, 192, Rebranding 37, 53, 90, 93, 101, 109, 110, 114, 117, 119,
194, 195, 198, 199, 202, 211, 214–217, 219, 234, 236, 126, 137, 138, 140, 169, 219, 222, 230, 231, 235, 238,
237, 245 251–252
Recruitment 56, 58–59
Refreshing 59, 70, 154
P Regulated industry 128, 212
Packaging 5, 6, 13, 16, 17, 23, 29–31, 34–36, 77, 87, Regulators 37, 71, 140, 197, 211, 214, 218, 219
102, 104, 105, 118, 137, 196, 237 Regulatory limitations 212, 216–217
Partnership 7, 16, 33, 34, 57, 71, 73, 128, 132–134, Relationship 19, 20, 28, 55, 73, 77, 91, 98, 107, 126,
138–142, 155, 157, 161, 186, 189, 199, 200, 246–247 129, 132, 136, 139, 141–143, 150, 155, 165, 173, 175,
Patronage 16, 33, 66, 191, 245 188, 228, 233, 237, 238, 244, 245, 254
Pedagogy, vi Relevance 107, 154–155, 171, 173, 174, 259
Perceived quality 164, 165, 176, 178, 191–192 Reliance 151, 189
Personalised experience 77, 245 Reminder 49, 56, 57, 59, 71
Philosophy 25, 28, 45–60, 66, 70, 71, 74, 76, 81, 82, Report 32, 35, 38, 167, 169, 176, 177
88–90, 92–94, 107, 110, 115, 132, 141, 154, 156, 157, Repositioning 37, 82, 139, 178, 213–214
202, 211, 218, 232, 258 Reputation 4, 9, 11, 18, 25, 28, 32–34, 37, 41, 51, 57,
Placement 133–134, 137 58, 71–73, 78, 80, 82, 88, 107, 127, 129, 130, 134,
Planning 54, 138, 142, 151, 162, 168, 192, 214, 227, 139, 141, 142, 146, 152, 186, 202, 245, 246, 248, 250
234, 250, 252 Research 10–12, 20, 33, 34, 38, 51, 53–56, 76, 81, 82,
Point of parity 68–70 90, 95, 109, 130, 153, 157, 167, 169, 170, 172, 174,
Political 38, 92, 156, 177, 214, 243 175, 177, 178, 187, 191, 197, 202, 203, 210, 215, 229,
Positioning 37, 50, 57, 65–83, 88, 89, 92, 107, 126, 127, 243, 251
129, 131, 137, 139, 141, 151, 162, 168, 171, 178, 185, Responsibility 5, 9–12, 14, 24, 25, 28, 29, 36–38, 40,
186, 195, 213, 234, 235, 237, 253, 258 50–52, 55, 58, 59, 70, 76, 78, 79, 107–109, 115, 136,
Potentials 38, 48, 74, 104, 106, 166, 169, 170, 174, 175, 139, 153, 219, 234, 236, 244, 245, 248–250
183–189, 195, 203, 216, 234 Reverse 221
Prism 90–91
Process 4–11, 13, 15, 16, 25–28, 32, 34, 35, 37, 38, 40,
41, 50, 54, 55, 58, 66, 67, 73, 76, 81, 82, 93, 94, 97, 99, S
100, 102, 109, 115, 117–119, 126, 136, 137, 139, 140, Sales 11, 33, 34, 55, 66, 81, 129, 142, 155, 165, 170,
142, 143, 153, 185, 194, 204, 209–212, 215, 219, 222, 185, 191, 200, 203, 211, 221, 245, 253, 254
237, 238, 242, 243, 247, 248, 253, 254, 259 Sam 3, 13, 23, 45, 65, 87, 125, 146, 161, 183, 208, 227, 242
Product 3–5, 9, 24, 46, 65, 87, 127, 146, 161, 183, 208, Sans serif 99
227, 245, 258, 259 Scandals 51, 139, 141, 259
Production 29–31, 34, 36, 40, 104, 132, 187, 188, 191, Serifs 99
193–197, 204, 213, 253 Service delivery 57, 65, 68, 76–81, 154, 163, 247
Promotion 8, 78, 81, 129, 184, 191, 213 Shape 9, 10, 45–47, 51, 54, 65, 68, 77, 82, 90, 96–98,
Properties 97, 104, 166, 167 101, 106, 118, 134, 139, 147, 148, 150, 161, 163, 164,
Prospect 18, 19, 40, 48, 53, 54, 146, 184, 200, 236, 242, 216, 234, 242, 243, 245, 246, 258, 259
250, 253, 259 Shared values 132, 140–143, 202, 208, 212, 219
Protection 16, 38, 102, 118–119, 151, 166, 235, 237 Shareholders 10, 12, 40, 140, 167, 168, 178, 197, 208,
Public expectations 93 211, 212, 214–218
Public statement with no private action 249 Small and medium enterprises 10
Public statement with private actions 248–249 Social and visual expression 244, 253
Social injustice 248, 249
Social media 5, 6, 10, 11, 13, 14, 16, 17, 24, 35–38, 46,
Q 55, 74, 78, 87, 92, 93, 103, 109, 111, 114, 117, 118,
Quantify 167, 168 125, 134, 136, 146–151, 153, 155–157, 165, 166, 171,
Questions 7, 14, 15, 19, 24, 26, 30, 40, 46, 50–52, 55, 177, 210, 245–247, 253, 258, 259
68, 73, 76, 80, 94, 104, 115, 118, 126, 130, 133, 138, Sourcing 6, 25, 27, 29–30
141, 152, 156, 166, 169, 170, 175, 199, 200, 203, 218, Souvenirs 13, 99, 128, 135, 136, 138
219, 222, 227, 230, 238, 247, 251–253, 258, 259 Sponsorship 33, 128, 131–132, 135–137, 140, 142, 163, 168
266 Index
Staff 5, 10, 16–18, 20, 23, 26, 28–30, 32, 34, 36, 38, 46, Time consuming 13, 35, 95, 125
49, 54–60, 70, 71, 73, 76–78, 82, 90, 95, 100–101, Traceability 35
110, 113, 134, 135, 138, 140, 154–156, 193, 208, 214, Trends 52, 146–148, 153–155, 157, 169, 170, 251, 253
215, 217–220, 236, 237, 245, 246, 248–250, 252, 253 Typeface 96–99, 111, 118, 138, 220
Stakeholders 6, 9–13, 15, 16, 19, 20, 26, 34–37, 40, 41, Typology 97–100
46, 48, 49, 51, 55–60, 71, 75, 76, 82, 88, 93–95, 100,
107, 109, 110, 115, 118, 126, 130, 135–140, 142, 147,
151, 162, 167, 168, 178, 191, 208, 209, 215–217, 219, U
220, 236, 237, 242, 244, 247, 249, 250, 254 Uniform 5, 90, 95, 100, 101, 134, 135, 138, 140, 195,
Stakeholders’ resistance 215, 216, 218 220
Standard 26, 27, 37, 38, 47, 49, 58, 59, 112, 155, 167, University 19, 49, 52, 72, 90, 92, 93, 98, 99, 108, 117,
203, 220, 221 135, 136, 167, 173, 195, 198
Statement 17–18, 49, 50, 53–56, 58, 70, 71, 244, 248, Updated 35, 52, 100, 221, 222, 237
249 Users 4, 5, 7, 9, 10, 15, 16, 18, 20, 34, 37, 69, 71, 76,
Storyline, vii 104, 110–114, 150, 151, 155, 163, 165, 246, 253
Straight combo 220
Strategies 78, 115, 126, 129, 132, 135, 137, 139, 142,
151, 153, 162, 167, 177, 178, 191, 222 V
Stronger brand 22–222
Structure 28, 50, 51, 68, 88, 89, 92, 102, 110, 115, 127, Value 3, 5, 6, 9, 11–13, 15, 18, 26, 31, 36, 40, 49, 52, 54,
191, 195, 196, 202, 203, 213, 227–230, 232–238, 259 57, 71, 72, 74, 75, 77, 82, 87, 88, 91, 94, 106, 107,
Student activities 20, 41, 60, 83, 120, 143, 157, 178, 130, 132, 139, 146, 149, 152, 161–178, 187, 192, 199,
204, 223, 239, 254 209, 213–215, 218, 232, 235, 243, 251, 253, 254, 258,
Students 67, 72, 90, 108, 132, 135, 138, 195, 198 259
Sub-brands 127, 213, 214, 217, 228–238 Valuers 12
Subcategories 251 Viability 14, 68, 149, 153, 155, 164, 187, 208
Surrounded 88, 189 Visibility 95, 128, 129, 134, 168–169, 185–186, 189,
Sustaining 12, 18, 19, 52, 174 202, 203
Sustenance 129, 192 Visuals 95–97, 119, 163
Synergies 9, 216
System font 99, 112
W
When to 19, 117, 119, 137–139, 234
T White and private labelling 195–197, 200
Tactile 96, 102, 104–106, 119, 258 Woke 248
Target audience 70, 126, 127, 129, 138, 139, 142, 146, Workforce 27, 30, 34
171, 221, 236, 258
Technology 12, 68, 92, 94, 104, 128, 132, 146–151, 153,
154, 156, 157, 176, 199, 212, 250–252 Y
Theories, vii Yala 29–30
The threat of New Entry 244, 250–252

Brand Management

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An Introduction

ISBN 978-3-030-66118-2 ISBN 978-3-030-66119-9 (eBook)

Cover Design by eStudioCalamar

To my wife, Temitope, and children, Praise, Precious and Hephzibah.

To my students at the University of Greenwich. Thank you for motivating

We are surrounded by brands. We engage with brands every day; how-

1. The Storyline—the book is written with a different approach. It

walk. In this text, I will be communicating with you on a personal

Finally, I acknowledge the staff at Palgrave, Liz Barlow, especially for

1 Introduction to Brand Management . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

2 Ethical Branding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21

3 Brand Philosophy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43

4 Brand Positioning . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63

5 Brand Identity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85

6 Brand Integration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 123

7 Brand in the Digital Era . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 145

8 Brand Equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 159

9 Brand Extension . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 181

10 Brand Mergers and Acquisitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 207

11 Brand Architecture . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 225

12 Contemporary Issues in Brand Management . . . . . . . . . . . . . . . . . 241

Figure 5.8 ardova logo indicating the serif font

Figure 9.3 Brand licensing and franchising. (Source: Author)������������������ 194

Table 2.1 Fairtrade products�������������������������������������������������������������������� 27

1.2 Brand, Branding and Brand Management – 5

1.3 Branding, Advertising and Marketing – 8

1.4 (Mis)Conceptions About Brands

1.6 Brand Ownership – 12

Supplementary Information The online version of this chapter (https://doi.org/10.1007/

© The Author(s), under exclusive license to Springer Nature Switzerland AG 2021

1.8 Prospective Brand Manager – 19

those of competitors.” Keller (1993) describes

Carrot in the garden Carrot juice in the shop

.. Fig. 1.2 The brand management process

These three terms can often be confused and

1.5.3.1Brand Owner, Brand Manager

1.5.5 Brand Valuers 1.6 Brand Ownership

1.7.1.2Command Higher Prices tomers share these experiences and patronage

1.7.1.3Differentiates 1.7.1.5Positive Association

Case Study 1.3: Brunei

Hassanal Bolkiah) and the brands of the coun- Reflective Questions

1.8 Prospective Brand Manager firm or company as assistant brand manager

1.8.4 Communication AMA. 2020. Branding. https://www.­ama.­org/topics/

2.2 What Is Ethical Branding? – 25

2.3 Ethical Brands – 26

2.4 Misconceptions About Ethical Branding – 27

2.5 Considerations for Ethical Branding – 28

2.6 Benefits of Ethical Branding – 33

© The Author(s), under exclusive license to Springer Nature Switzerland AG 2021

2.8 How to Go About Ethical Branding – 36

.. Table 2.1 Fairtrade products

Bananas Cotton Honey Sugar

Source: Fairtrade (2020)

Case Study 2.1: Yala

and made from recycled materials, with soy-

2.5.3 Production avoided if they are to ensure they duly observe

Some brands have decided not to use plastic

The multifaceted nature of ethics branding

2.8  ow to Go About Ethical

2.8.10Advocate The Ethical Fashion Report (2019) found

1 Introduction to Brand Management . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

2 Ethical Branding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21

3 Brand Philosophy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43

4 Brand Positioning . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63

5 Brand Identity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85

6 Brand Integration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 123

7 Brand in the Digital Era . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 145

8 Brand Equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 159

9 Brand Extension . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 181

10 Brand Mergers and Acquisitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 207

11 Brand Architecture . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 225

12 Contemporary Issues in Brand Management . . . . . . . . . . . . . . . . . 241

Figure 9.3 Brand licensing and franchising. (Source: Author)�� 194

Table 2.1 Fairtrade products�� 27

1.2 Brand, Branding and Brand Management – 5

1.3 Branding, Advertising and Marketing – 8

1.4 (Mis)Conceptions About Brands

1.6 Brand Ownership – 12

1.8 Prospective Brand Manager – 19

1.5.3.1Brand Owner, Brand Manager

1.5.5 Brand Valuers 1.6 Brand Ownership

1.7.1.2Command Higher Prices tomers share these experiences and patronage

1.7.1.3Differentiates 1.7.1.5Positive Association

1.8 Prospective Brand Manager firm or company as assistant brand manager

1.8.4 Communication AMA. 2020. Branding. https://www.ama.org/topics/

2.2 What Is Ethical Branding? – 25

2.3 Ethical Brands – 26

2.4 Misconceptions About Ethical Branding – 27

2.5 Considerations for Ethical Branding – 28

2.6 Benefits of Ethical Branding – 33

2.8 How to Go About Ethical Branding – 36

Case Study 2.1: Yala

2.5.3 Production avoided if they are to ensure they duly observe

2.8 ow to Go About Ethical

2.8.10Advocate The Ethical Fashion Report (2019) found

2.9 Conclusion Brands must try to communicate their

3.2 What Is Brand Philosophy? – 46

3.3 Components of Brand Philosophy – 47

3.4 Who Develops Brand Philosophy? – 50

3.5 When Is Brand Philosophy Developed? – 51

3.6 How Is Brand Philosophy Developed? – 53

3.7 Who Needs Brand Philosophy? – 55

3.9 Benefits of Brand Philosophy – 57

3.10 Considerations for Brand Philosophy – 58

stand for something, to be unique and different

3.2 What Is Brand Philosophy?

3.3.5 Brand Origin »» Holland & Barrett Customer Charter

3.4.2 Consultant 3.5.1 At the Beginning

Often when brand philosophy can be devel- 3.5.3 Start-Up Growth

3.5.5 At Rebranding 3.6.1 Looking Inward

rinciples that shape the industry and perhaps

Case Study 3.3: ExactHire

3.7.3 Customers Overused works such as “integrity,” “out-

3.9.1 Guiding Principles

4.2 What Is Brand Positioning? – 67

4.3 Conceptualising Brand Positioning – 68

4.4 Brand Positioning Statement – 70

4.5 Importance of Brand Positioning – 71

4.6 The Changing Brand Positioning – 73

4.7 Enhancing Brand Position – 75

4.9 Challenges of Brand Positioning – 79

4.10 Considerations for Brand Positioning – 81

4.5.3 Increased Sales with options, a well-positioned brand becomes

have the responsibility to enhance position- 4.7.3 Critical Evaluation

4.8.2 Brand Owner

4.9.4 Financial Limitation

4.10 Considerations for Brand 4.10.3Brand Position Changes

that while a brand position can increase, it can 4.11 Conclusion

5.2 What Is Brand Identity? – 88

5.3 Misconceptions About Brand Identity – 89

5.4 Brand Identity Prism – 90

5.5 The Brand Name – 91

5.6 The Constituents of Brand Identity – 95

5.8 Designing a Brand Identity – 107

5.9 Brand Guidelines – 109

5.10 When to Design the Brand Identity – 117

5.11 Considerations for Brand Identity – 118

5.12 Conclusion – 119

n Learning Outcomes 5.2 What Is Brand Identity?

5.4.3 Reflection Physique Personality