3. Law of expansion The power of a brand is inversely proportional to its scope When you put a brand on everything, that name loses its power
4. Law of contraction A brand becomes stronger when you narrow its focus Narrow focus Stock in depth Buy cheap Sell cheap Dominate the category
5. Law of publicity Brands are build with publicity and maintained with advertising Best way to make news is to advertise a new category, not just a new product Eg- Lotus notes – the 1st successful groupware product
6. Law of advertising Kicks in when a brand outlives its publicity potential Brand leaders must advertise leadership. Leadership indicates the product is better. Keeps away the competition
7. Law of the word Focus on owning a word in the prospects’ mind. A word nobody else owns. Your brand owns the category name when people use the brand generically. (is that good?) Premium product Make it expensive Find a subtle way to communicate exclusivity
8. Law of credentials Customers are suspicious and they tend to disbelieve your claims. When you have the right credentials, the prospect is likely to believe you Have a good track record and communicate it.
9. Law of quality Build a powerful ‘perception’ of quality in the customers’ mind High price Narrow focus Use the word ‘quality’ Build as much quality as you can afford Differentiate looks
10. Law of the category Leading brand should promote the category, not the brand Use words like leader, pioneer, original, first Rise of competitors stimulates consumer interest The ‘rightful’ share of a leader is not more than 50%
11. Law of the name In the long run, a brand is nothing more than a name Generic names are no good The leader is not necessarily a high quality product but a high quality name
12. Law of extensions The easiest way to destroy a brand is to put the name on everything If the market is moving, stay where you are and launch a second brand If not, stay where you are and build your brand
13. Law of fellowship Not only should the dominant brand tolerate competitors, it should welcome them Choice stimulates demand Market share is based on the brand in the mind, not on merit of the product
14. Law of the generic One of the fastest way of failure is to give a brand a generic name ???? GE, IBM, 3M, GM
15. Law of the company Brands are brands. Companies are companies. There is a difference Should the company name dominate or the brand name? The brand should be the focus of attention. If you have to use the company name, do it in a decidedly secondary way.
16. Law of subbrands What branding builds, subbranding can destroy. Subbranding, masterbranding and megabranding are not customer driven concepts
17. Law of siblings There is time and space to launch a second brand The key is to make each brand a unique individual with its own identity
18. Law of siblings Focus on common product area Select a single attribute to segment Set up rigid distinctions among brands Create different, not similar brand names Launch to create a new category, not to fight with competition Keep control at the highest level
19. Law of shape Brand’s logotype should be designed to fit the eyes. Horizontal 1:2.25 Legible Advantages of using the symbol alone are slim and occur in certain situations.
20. Law of colour A brand should use a colour that is opposite of its major competitor’s. Focus on the mood you want to create Colour consistency is important
21. Law of borders There are no barriers to global branding Keep the brand’s narrow focus Be the first Product needs to fit the perception of its country of origin Changes must be made to accommodate local languages and cultures
23. Law of change Brands can be changed, but only infrequently and very carefully. Brand is weak or nonexistent in the mind Moving the brand down Change takes place slowly to take advantage of a slow moving trend
24. Law of morality No brand will live forever Euthanasia is often the best solution
25. Law of singularity The most important aspect of a brand is its single-mindedness
26. Brand Asset Valuator Differentiation Relevance – Breadth of a brand’s appeal Esteem Knowledge
27. Aaker’s Model Brand loyalty Brand awareness Perceived quality Brand associations Other IP
28. BRANDZ Presence – Do I know about it? Relevance – Does it offer me something? Performance – Can it deliver? Advantage – Is it better than others Bonding – Nothing else beats it
30. External Measures Market to book value Tobin’s Q: replacement cost of assets Valuation of free cash flows* Calculated Intangibles Value ROA Value/Sales
32. UI has over 100 brands Cautious in creating new brands Locates positioning opportunities Every brand has to be viable on its own Constant brand rejuvenation
33. Umbrella branding Food: Brooke Bond, Lipton, Kissan, Dalda and Kwality Walls Expanding Kissan even to basic food items Brooke Bond and Lipton in beverages
34. Power brands Identified 30 power brands Includes future stars like Axe And niche leaders like Pears Criteria Current performance Competitive differentiation Future potential
35. Other 80+ brands treated differently Regional brands - Hamam Unprofitable brands – Aim, Revel Overlapping brands – Breeze and Jai
36. Case of Savlon Germicide segment of soap market was growing fast Dettol was the leader Lifebuoy was not expected to succeed
