Branding: an imperative and an opportunity

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Branding an imperative and an opportunity

• Professor Bill Merrilees

Paper presented to ATHOC Conference 14 September
2009
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Introduction

• Our focus
• To demonstrate that branding is an imperative
  for all entities and equally an opportunity
  waiting to be harvested

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Context

• Branding refers to a unique identity that
  delivers a (user) relevant and differentiated
  brand experience
• Branding helps by facilitating choices,
  relationships and loyalty

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Instant Poll

• Who believes in brands?
• Who is sceptical?
• Who is sitting on the fence?

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Intangibles and the balance sheet

• Intangibles represent about 70-80 per cent of
  business assets
• This percentage has doubled over the past 25-30
  years
• WOW what does that mean for running a business?

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Brands are the biggest intangible asset

• Brands are valuable assets
• Big brands like Google and Coca Cola are worth
  about 60-80 billion each
• On average brands account for about 35 percent
  of a stocks share price
• What is your brand worth?

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Functions of branding

• Reduces risks
• Saves time in purchasing
• Reinforces point of difference
• Guides decision-making
• Helps build a relationship
• So a brand helps Coca Cola keep customers, get
  cheaper loans, negotiate with retailers, etc.

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Corporate branding

• Corporate versus product branding
• Especially relevant for services
• Allied to the field of reputation
• Also relevant to other entities city branding
  nation branding industry branding (ATHOC)
• Relevant for both ATHOC and separate member
  organisations

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Traditional role of corporate brands in terms of
multiple stakeholders

• Different stakeholder groups are likely to have
  different issues and needs, based on their world
  views and special interests.
• Corporate branding
• Assists through ensuring communications are
  consistent and integrated
• Enables disparate stakeholder groups to interact
  with the one brand
• Thus, a strong corporate brand enables disparate
  groups to understand, communicate connect to
  the organization

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Keep in mind that brands can be at two levels

• 1. Broader umbrella level (like a city or an
  industry association)
• 2. Individual organisation level
• My research shows that a strong brand can improve
  performance about 5-15 percent depending on the
  initial level of brand strength
• So if you are running a 20 million firm, scope
  to add 1 million through strong branding (if
  implemented correctly)

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Some characteristics of strong brands

• Powerful and compelling brand identity maybe
  expressed as brand purpose (vision)
• Makes a difference to your lifestyle (Coke
  Starbucks Apple Google) self-identity (cars,
  fashion goods) or beliefs (McGrath Foundation)
• Very clear and simple
• Consistently executed

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Warning strong brands need refreshing

• Nothing is forever without investment
• Even strong brands need to stay relevant to
  contemporary needs
• Examples Lego IBM GE McDonalds General
  Motors and Ford Jaguar
• Prevention better than cure!

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Further thoughts on industry or umbrella brands

• Active whether you like it or not - for example,
  reputation of nursing down makes it harder to
  attract nurses
• Singapore Teachers Association develops new
  mantra (lead, inspire) to refocus the profession
• Banking industry in repair mode
• Truck driving industry ..

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Further thoughts on industry or umbrella brands

• General tendency for associations is to be
  reactive to a crisis, rather than be proactive
• Even if proactive, general approach is a
  short-term campaign (nurses) this is a band-aid
  approach because
• Proactive is best, not just to avert a crisis,
  but to generate brand equity in cumulative
  ongoing fashion

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Further thoughts on industry or umbrella brands

• Extra reminder that industry brands have multiple
  roles
• Supports the overall image of the industry
• Thereby supports each industry member in their
  customer dealings
• And supports each industry member in supplier,
  loan tourism negotiations
• Helps insulate against potential crises
• Ultimately adds value to the net worth of member
  businesses

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So whether timeshare operator or the ATHOC

• Hopefully all or most doubts now removed as to
  whether branding is the imperative
• Your brand reputation is worth more than you
  thought
• The time to harvest the opportunity is NOW
• Delay is an option, providing you are willing to
  wear missing out on 1 million every year that
  you delay! based on 20 million operation

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Branding an imperative and an opportunity

• Thank you
• Questions?
• Comments?
• Suggestions?