|The real benefit of branding is often less in creating volume than in supporting the price that the purchaser is ready to pay. It may wrongly be taken for granted that the reason for marketing activities - advertising, for example - is to increase sales volume, which is a relic of the early and expansionist years of this century. In fact marketing is largely a process of adding values, both rational and emotional. The author is indebted to a referee who added a comment at this point: "I have lost count of the number of erroneous marketing decisions I have encountered due to the failure of many modellers of advertising effectiveness/awareness to fully appreciate this issue".|
Simon Broadbent, "Diversity in categories, brands and strategies", Journal of Brand Management vol 2.1, 1994.
|At a time when corporate performance in many industries depends increasingly on attributes such as reputation and service, there is a genuine need for more precise methods to measure the value of intangibles. But the issues have so far been as much obscured as clarified by efforts to put a price on brands. These methods involve, at best, highly subjective judgements and amount, at worst, to a mechanistic checklist exercise. They offer very few verifiable insights into how and why that performance was achieved, and hence, whether it can be maintained. But in the real world, that is what really counts.|
Financial Times, 13 April 1993
|Britain's equivalent to Marlboro Friday arrived on November 3 1993. On "Sainsbury Wednesday", the supermarket group cut the prices of 300 lines, and David Sainsbury, chairman, predicted that branded product prices would "have to come down very significantly to compete".|
The Sunday Times, 3 April 1994
|Table 1 - Pricing : consumer response benchmarks|
·Brand leaders can "perceptually justify" price premiums of up to 25% against other directly competing brands
·Brand leaders with a discernible product plus can "perceptually justify" price premiums of up to 50% against what are otherwise directly competing brands
·Higher premiums are "perceptually justifiable" only where the consumer's need served is actually a "different competitive marketplace"
|Table 2 : Beyond mass marketing - the world of the "griffe"|
In luxury markets, the French distinguish a special term of relationship, the so-called "griffes" or literally "claws". In reality, brands and griffes should be distinguished for the different grounds they cover.
The very word says much more. Its meaning as a 'claw' suggests instinct and violence; something unpredictable, that leaps out and leaves its mark. In this sense, the griffe is the mark of an inspired and instinctive creator. The griffe also has the same root as 'graphic', and it refers back to the hand. Its reference model is handmade work and craftsmanship.
Strategic Brand Management, Jean-Noel Kapferer
|Quality perceptions and the global whisky brand|
When IDV was first taken over by Grand Metropolitan, I got permission to try to promote J & B within the group. I spent half an afternoon telling hundreds of executives from Watney's, Trumans, Mecca and Peter Dominic what a magnificent whisky it was.
My persuasion worked and J & B promptly appeared in optics all over Britain. But then foreigners, used to the idea of J & B as a luxury premium brand, discovered it was just a commodity Scotch in its native Britain and the discovery was beginning to hurt sales in the rest of the world. So, a few years later I had the embarrassing job of telling my in-house customers that they would have to discourage buyers by upping the price and transforming it into the same premium brand as it was everywhere else in the world.
People outside the drinks business may not appreciate what a serious mistake it was because I'd jeopardised J & B's image, and that's the only asset any drinks brand has - apart from its intrinsic quality - and even a whisky as good as J & B can be hurt if it becomes associated with cheapness.
The story has a happy ending. J & B is still not a big seller here (in Britain), though an awful lot of people are prepared to pay a premium price for it, but it's the second biggest selling Scotch in the world, and its sales outside the United States have gone up eight times in the last 15 years to more than four million cases. And that's not bad for a Scotch which was virtually unknown until the 1950s, and which depended on the US for 90 per cent of its sales until the 1960s." George Bull - extract from "My Biggest Mistake", Independent on Sunday, 25 February 1990
|The world's best products often depend on highly personalised commitment. Local products of excellence will always be prized, but in an era where the meanings of local and national boundaries will soon need to be questioned more honestly, World Class brands should have the confidence and the integrity to symbolise the best produce, services and experiences that transnational cooperatives have to offer.|
Good marketing involves facilitating offers that are as customised as technology and human endeavour can manage, while maintaining an economic balance which satisfies the customer and the company. Branding provides the power to identify a cause which unites people over time - with an appeal that acts as a centre of gravity - so that customers can benefit from economies of scale while enjoying a feeling of individual attention.
Chris Macrae, World Class Brands
|Procter & Gamble has revamped its US marketing strategy, introducing a policy of "everyday value pricing". This involves cutting down on short-term deep-discount promotional deals, which periodically slash the cost of products to the retailer, and replacing them with a system of more consistent lower prices.|
However, the change has stirred up opposition among less efficient retailers, who have relied on deep-discount promotions for a substantial part of their profits.
Typically, P&G is cutting the price of Tide and Cheer liquid detergents by as much as 15% with lesser reductions on some other brands. The Financial Times, 15 July 1993