Master Thesis Final A4

Karlstad Business School Karlstad University SE-651 88 Karlstad Sweden

T: +46 54 700 10 00 F: +46 54 700 14 97 Email: [email protected] www.hhk.kau.se

Superbrand: a new concept or not, and how does a brand become super?

Course Code: FEAE03 Course Title: Industrial Management – Degree Project Date Submitted: August 1, 2011 Supervisor: Peter Magnusson Name: Michael Monteclaro

Michael Monteclaro Superbrand: a new concept or not, August 1, 2011 and how does a brand become super?

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Abstract

Brands are everywhere. They are the calling cards of companies that tell the public of their presence and

capabilities. The most well-known brands are called superbrands. However, there seems to be a lack of

hard evidence within academia that explicitly demarcates the meaning of a “superbrand.” The term will

be researched, where help from both academic and professional sources are attained through readings,

emailed surveys, and interviews. Based on the attained data, a generalized definition and framework are

proposed, which answer the following questions:

1. Is the word “superbrand” just another name for a top-performing brand?

2. Are there any academic writings explaining what a superbrand is, and what are the professionals

within the branding industry saying about them?

3. Is there a general template framework to become a superbrand in any industry, and what are the

constituents for such a framework?

Microsoft, BMW, and IKEA are observed in their market performances, and are also used to verify the

proposed general framework. As a result the research revealed that the word “superbrand” is just

another coined term, and no specific instances exist within academia that defines the term specifically.

Becoming “super” takes time, money, and good market strategy. The information herein asserts the

concepts of branding adding to the current body of knowledge, and is perhaps an interest for growing

businesses.


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Acknowledgements

First and foremost, I would like to give thanks to my teachers at Karlstad Universitet whose knowledge

they have bestowed has created intrigue for me in the world of business. This acknowledgment

especially extends to Peter Magnusson who has inspired me to “dig in the trenches” of academia in

search of my answer. His patience, time, and knowledge have helped me greatly along the way. I would

also like to thank Interbrand Inc. and Superbrands Ltd. for helping me attain my needed information; in

particular, upper level management who diligently gave feedback on my surveys. Without their abundant

marketing knowledge I would have never found the information needed. I would also like to thank the

various authors encountered in my readings for producing the information on marketing, branding, and

business in general. They have enlightened me on the topic of branding, and have further inspired me to

“dig” some more. I would also like to thank the people close to me: Mom, Dad, Michelle, and my special

someone, Katarina, for pushing me to “finish.” Their constant reminding helped motivate me when I

needed it the most. Last but not least, I would like to thank God for giving me the opportunity to study

abroad and learn about a topic that has become fascinating to me.

Karlstad Business School Karlstad University SE-651 88 Karlstad Sweden

T: +46 54 700 10 00 F: +46 54 700 14 97 Email: [email protected] www.hhk.kau.se

Table of Contents

An Introduction ............................................................................................................................... 1

Premise ..................................................................................................................................................... 1 Questions to be Answered ........................................................................................................................ 1 Outline of Information ............................................................................................................................. 2 Purpose of this Thesis .............................................................................................................................. 3 Methodology Used ................................................................................................................................... 3

Theory of Branding ......................................................................................................................... 6 Brief History of Branding ........................................................................................................................ 6 What is Branding? ................................................................................................................................... 10 What does Branding Create? .................................................................................................................. 14

Awareness of Brands ......................................................................................................................................................14 Emotional Connections to Brands ...............................................................................................................................15 Brand Loyalty ...................................................................................................................................................................19

What are Characteristics of Successful Brands? ..................................................................................... 20 Advertising for Big and Small Brands ..........................................................................................................................21 Alliances between Brands ..............................................................................................................................................24 Brand Barriers ..................................................................................................................................................................25 Brand Public Relations ...................................................................................................................................................27

Case of the Superbrand ................................................................................................................. 30

Investigation of Brand Literature ........................................................................................................... 30 Professional Point of View ...................................................................................................................... 32

Interbrand Incorporated ................................................................................................................................................32 Superbrands Limited .......................................................................................................................................................34 Branded Organizations ...................................................................................................................................................37

Discussion about Superbrands ..................................................................................................... 39 Recap on Branding ................................................................................................................................. 39 Searching for the Answers ....................................................................................................................... 40 A Process Brands Undertake .................................................................................................................. 41 Proposal of a Framework ........................................................................................................................ 43 Checking the Framework ....................................................................................................................... 47

Conclusion ..................................................................................................................................... 49

Works Cited ....................................................................................................................................51

Appendix ....................................................................................................................................... 53


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An Introduction

Premise

Many organizations in our world have products and offer services that enhance our daily lives. The

world as we know it has become saturated with these organizations, and they are constantly battling for

our attention. Each organization fights to be the best. The organizations that are the best succeed in

creating customers who are loyal; who are willing to re-invest over and over. They have succeeded in

identifying our needs, and they use their brands to captivate and entice us. These brands are weapons in

the marketing battlefield; weapons that create awareness and cause us to make investments in the hope

that somehow our lives will become better. Organizations that succeed in doing this are deemed the best

because of these weapons - these weapons that are superbrands.

What is a superbrand? Although this question is not common to ask, one must stop and think. Looking

at the word one can maybe derive its meaning and speculate as to what it is. In today’s global society,

brands reside in every aspect of our lives; therefore, it shouldn’t be a challenge to the average person

what the term could mean. Even the nomenclature of the word appears to have been derived from

urban language where people, particularly English speaking societies, denote something that is “great” as

“super.” Superbrands are everyday brands that come into our daily activities, and therefore are well

known. In addition, it also seems that our society is bombarded daily by these brands, so much so that

we have become complacent. When they are recognized however, the viewer notices them all the time.

This recognition that perpetuates within the minds of consumers is perhaps why they are super.

Questions to be Answered

In this investigation several questions have to be proposed to clarify the purpose of this paper. Not only

will this aid in defining the focus of this dissertation, but also allow the reader to critically think upon the

suggested answer. The reader must first stop and reflect by asking, “Is the word ‘superbrand’ just another name

for a top-performing brand?” Readers who skim over the word could speculate that it is a label that when

attained allows for “bragging rights.” The reader could further inquire, “Are there any academic writings

explaining what a superbrand is, and what are the professionals saying about them?” Surely it must be written

somewhere within the confines of academia what a superbrand means, and the professional sector must

have some evidence of the term in action. In an attempt to answer these questions, the halls of academia

are searched for any books or articles written on the topic. From the professional segment, two major

firms that rate brands around the globe, Interbrand Inc. and Superbrands Ltd., are approached and


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interviewed. Both groups help other organizations identify the needed constituents for becoming a

strong competitor in their respective industries. In addition, these two professional firms have the same

ideologies about branding in general. It is therefore only right to interview them. On a side note, one

firm is named after the topic of this thesis, which leads to the primary assumption that maybe this

organization is responsible for creating the term “superbrand.”

With this in mind, it is only appropriate for completeness sake to further this research and propose a

process to become superbrand along with a generalized framework. This will answer the question, “Is

there a template framework to become a superbrand in any industry, and what are the constituents for such a framework?”

Derivatives from literature, surveys from emails, as well as, real world instances will be used to construct

the framework. As verification three global businesses that produce superbrands will be used. These

three corporations are Microsoft, BMW, and IKEA. With evidence from the aforesaid sources and

interpretations on the topic a definitive conclusion will be stated accordingly.

Outline of Information

For a clearer understanding, the reader will follow the outline below.

I. Introduction

II. Theory

III. Case presentation and analysis

a. Questions that need to be answered

b. Academic sources

i. Books/articles on branding

c. Introduction to professional sources

i. Superbrand Ltd.

ii. Interbrand, Inc.

d. Introduction to real world organizations

i.

ii.

iii.

IV. Discussion

a. References to observed organizations

b. Proposal of process


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c. Proposal of framework

V. Conclusion

a. Findings

i. Generalized discoveries

ii. Reference to companies observed

iii. Restatement of proposed framework

b. A derived meaning of a superbrand

c. Closing statement

Purpose of this Thesis

With the aforementioned in mind, one could speculate as to why such trouble is created in attempting to

research the topic of a superbrand. It has been seen that the practice of branding is a fundamental part

of human psychology. In our daily lives from the dawn of time it has been a part of humanity, and only

in today’s modern age has it been used to provoke and instigate us. From markets to trends or even in

personal activities, how “something” is branded that ultimately causes some kind of an investment is

truly fascinating. For example, when a person wakes up in the morning and prepares for the day’s

activities, it is a preparation in branding. How a person conducts themselves during interactions with

people is branding. How countries convey themselves through culture is branding. A way to gain trust

with others relegates itself to branding. Branding is at the core of our thinking, and therefore stretches

beyond the theories and practical uses in marketing. It is therefore seen as a practical way to better

oneself. This word is “guesstimated” to have been around for only twenty years or so, and it deserves a

primary investigation to see if it is a new concept or perhaps is just another adjective for branding. If one

were so inclined, it could also spark further investigations to broaden academia’s knowledge base, which

would undoubtedly widen its practical usage in the field.

Methodology Used

To assure the reader is aware of the upcoming topic of branding, a theoretical briefing will be

undertaken. This will ensure that the reader will comprehend the extrapolated idea, and give a sense of

meaning as to why there is branding. The reader must remember that the topic of branding is a vast

subject that can be enumerated through various explanations and supporting sub-topics. Therefore, this

thesis is a miniscule interpretation that hopes to enlighten those who are interested in strong brands,

why they are strong, and what it takes to be strong in their respective industries.


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The information of branding is based on academic research drawn from numerous sources. Two virtual

databases, Emerald and Business Source Premier, located online via the Karlstad Universitet Bibliotek

website were used to delve into many articles and journals on the subject. Although the advent of

database virtualization offers an easy interface for probing information, the abundance of this

information presented an arduous task of searching. During the search, keywords such as “Superbrand”

and “brand” were researched. However, since the specific topic of “Superbrand” seems fairly new, very

little information was found - at first. Other keywords that were used were “trademark,” “logo,”

“insignia,” “brand representation,” “brand meaning,” “strong brands,” “dominant brands,” and “global

brands” to name a few. Over 180 articles were perused, and pertinent information was pulled to support

the theory. However, many articles will not be cited due to several reasons. For one, there are too many

articles to cite. Second, many of the articles only proposed supporting ideas of the branding philosophy

and did not specifically speak of this thesis’ topic. Third, the abundance of information would lead to a

disarray of ideas that would steer the focus of this thesis off course. Lastly, although articles and journals

are a good source of information, it is hard to gain a solid theoretical understanding when compared to

books.

An analysis of current literature then commenced to see if there were any resources that existed on the

topic of Superbrands. The lists of books examined and referenced can be seen within the following

section, Investigation of Brand Literature on p. 29. It must be noted that many of the books used were not

read in their entirety; only the sections that were deemed pertinent were read. These books were

produced by renowned authors on branding that are academic authorities on the subject. The theoretical

information that was extrapolated from these sources is therefore assumed valid. The number of books

used was deliberately narrowed to twenty, again due to their abundance. These twenty were thought to

contain information that pertained to Superbrands, and were a good source for much of the theoretical

background outlined.

However, the theoretical side must always be backed by real-world instances. Professionals within the

field of branding were also asked in the form of a survey what they thought about the topic. C-level

management of two organizations that ranked global brands were approached, Superbrands Ltd and

Interbrand Inc. These two companies are viewed as prime sources for branding information since both

are world renowned. This survey can be found in the Appendix. It varied in questions that aided in

creating a clearer understanding of how these organizations rated brands around the world, and what

according to them was considered a strong brand. The information attained was used to extrapolate how

brands appeared to a professional, while allowing for a glimpse into the mechanics of a brand. Various

branches from both organizations in America, Asia, and Europe were sent surveys. This was done to


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determine if any variance was detectable within societal spheres of thought. Of the six surveys sent, five

came back but only three were answered in its entirety. Interestingly, Superbrands Ltd (American,

Swedish, & Singaporean branches) replied, while only two of the surveys sent to Interbrand returned.

Interbrand in London, England stated that all information sought in the survey can be found on the

company database via the Interbrand website. On this note, the Interbrand survey sent to New York,

returned with a “Sorry I’m too busy,” while the other sent to Interbrand Singapore never returned. It is

surmised however, that the behavioral responses from Interbrand were primarily due to this thesis’ title.

A sense of enmity was inferred.

For completeness sake, the aforementioned three companies (BMW, IKEA, & Microsoft) will be

observed where their respective market share performances, earnings, and awareness statistics from

Superbrands Ltd and Interbrand Inc. will be added. The investigation will further progress by making

note of any evidence of existing frameworks within the databases or literature, which theoretically

identifies constituents to produce a superbrand. Based on database, literature, and real-world findings a

generalized framework is proposed.


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Theory of Branding

Brief History of Branding

Man has come to evolve from the primordial ape state that it once was to a highly evolved creature that

is inclined to create. From this creativity wonderful ideas and innovations have come to progress

civilization into what it is today. The accumulations of this growing knowledge and its byproducts have

created tools that help cater to every need imaginable. Humans have developed an ever growing

complexity of communication that has spawned an evolutionary way of assimilating with one another.

The natural need to become better than previous generations has helped it to become the dominant

species of planet Earth.

Yet from this complex ideology that has appeared, the inherent need for humans to have ownership, or

imbue the mentality of possession amongst one other, has created the psychology of ownership of

innovation which is advocated through many means of communication. This undoubtedly creates the

underlying thinking of recognition with either a positive or negative association that propagates

throughout society naturally, almost viral-like, and creates inclinations of thought that automatically

classifies the objective matter (Cruz & Fill 2008). Through such classifications, it is here that the dogma

of acknowledgment creates a sense of ownership and reconciliation that depicts social status of the

owners as well as the creators.

Through this incurred thought process of ownership and recognition, early tradesmen and producers

adhered to the idea of marking their goods mainly through the use of seals or insignias that have been

placed on the commodity that was traded. Archeological digs throughout the Middle East, a region

believed to be the birthplace of organized society, has revealed that such forms of labeling did exist.

Such a facet can be readily seen in the Mesopotamian region, also known as modern day Iraq. It is

believed primarily that sealing started as a way of reproducing psychological undertones associated with

the commodity. Pictures made their way into sealing in order to depict certain human psychologies that

the producer wanted to associate with the article of trade (Wengrow 2008).

It has been surmised that the onset of marking commodities started with the belief derived from

personal jewelry that was seen to hold magical powers. The ancients believed that wearing such jewelry,

which adorned the body in a fashionable as well as a fabled sense, would magnetize luck and repel any

negative implications toward them. This belief allegedly transferred into the commodities created that

were bought and sold. Amulets that were worn to adorn and protect the body were seen as a preliminary

means to imprint a mark on products created to excise any negative tendencies, i.e. lack of demand for


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the commodity. Such stampings or markings also had a social meaning that underlay the symbol.

Conveying ownership or personalizing a product was commonplace. These amulets also served as a

primitive stamping mechanism to easily engrave the item in a replicating manner. Wengrow (2008) stated

that these charms “…were perforated for suspension and bore complex linear patterns on the stamping

surface, which was applied to the clay sealings of mobile containers such as pots, baskets, and sacks.”

Since some of these adornments were worn as personal jewelry, the act of stamping also placed a sense

of ownership. Examples of these amulets are depicted in the figure below.

Figure 1: Halaf period amulets & stamps (Wengrow 2008)

As primitive as these adornments were, they upheld a significant credence, which satiated the human

need to feel comfortable in appearance, as well as, contend with psychological beliefs. This ideology was

instilled through the religious values of the society that played a major part of everyday lives, and

transferred itself onto the trade of commodities through the practice of sealing and labeling. One would

believe that sealing and labeling would be used in a physical context, such as in the preservation of food

and drink. However, early human psychological beliefs were strewn with mysticism due to the lack of

scientific understanding. It is from these attitudes that the associations to the unknown were made.

Associations to good and evil, or associations to gods and demigods were an encompassing theme. The

belief that the commodity was derived from the gods, or belonged to the gods, aided in correlating the

thought that the product was one of high value and should be cherished. In addition to this facet,

consumers who owned the products were seen to have high social status, since only the upper echelon

of society had possession of such commodities. The elite were also believed to be literate enough to

understand the connotations inscribed on the product. Therefore, owning such commodities was seen to

additionally advocate social status within early societies (Wengrow 2008).


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With such apparent recognition it would only be appropriate for the producer of the commodity to be

known. For that reason, many of the inscriptions portrayed information about who made the product

and where it was from. This undoubtedly rendered an emotional connection of value towards the

producer and the region of origin, and stated that the producer instilled the commodity with quality.

Such ideologies only buttressed the belief that those in ownership had the right to believe their

respective status was higher than the average layman. This also reinforced the basic human drive for

competition. Intuitions of quality and its respective associated region would also align to the same

thought pattern. Once these associations were in place, an irreprehensible manifestation would befall the

owner/consumer of the commodity thereby completing the thought process. In other words, if the

region was known to produce good products, the producer therefore would have a reputation for

making good products. This would ultimately indicate the product must also be of quality (Wengrow

2008).

Analyses of archeological findings have revealed that the aforesaid was the goal sought by the act of

sealing or marking. By allowing the consumer to form such psychological bindings to the commodity, it

would partially indicate that even in past archaic time sellers understood positive association worked to

enhance their trade. For those who were literate and understood the hieroglyphic symbols the

commodities were one that was of lasting value. This assured the ancient consumer had made the right

decision to invest in the product. This sort of reputation would pervade the trading network, as well as,

within their respective consumerist spheres. The need for identification and recognition therefore was

becoming an important aspect. Wengrow (2008) states in his edifying article Prehistories of Commodity

Branding that “…objects, including a wide range of domestic serving vessels the forms of which suggest

specialized roles in the presentation and consumption of food and drink” began spreading throughout

regions. Early tradesmen began spreading commodities that originated from private craftsmen to regions

beyond the sphere of their own society. Producers therefore found it fundamental for consumers to

identify themselves and their craftsmanship through seals or marks. The act of branding thus began.

Moving forward in time, the practice of sealing and labeling had begun to take hold in the context of

compartmentalization rather than identification. Imbuing product origins and content was still the

fundamental objective, but as societies became larger and transportation more accessible the usage of

sealing and labeling had been additionally identified as an accounting management tool. Moore & Reid

(2008) stated in their report, that societal spheres began entangling their networks of trade creating a

complex array of commodities that floated between. With this emergence of complexity, it was believed

that tradesmen needed a logical way of conveying information to regulate the influx of products. To

further buttress this facet, Moore & Reid (2008) further noted that relics of seals believed to originate


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from the Harrapan region (an area of what is now known as modern India) were found in Mesopotamia,

which further supports the theory. Therefore, it can be interpreted that using seals and/or labels with

imagery was needed to indicate not only content, but aid in categorization and origin as well.

The realization that sea routes were a faster method of transporting commodities took hold with

producers. Shipping by boat became a widespread practice, which made routes of trade more intricate

and influential. This shift in paradigm saw commodities that traversed a proto-intercontinental network.

The need for labeling and branding became even more apparent. Moore & Reid (2008) again state:

“Grain grown in Egypt or Babylonia was traded to the Cypriots and Hittites in return for their precious copper and

other metals which were processed in Phoenician workshops or shipped by caravan and Euphratean reed boat to

Babylon, Sippar, Ashur, and points east.”

This supports the statement that branding aided in identification and categorization. It was an inherent

characteristic the early traders sought since convoluted systems were beginning to form. The need for

commodities labeling consequently heightened to control received resources, which was expedited

towards becoming an end product, i.e., raw copper into ingots, ingots to weaponry or coins.

With seafaring, the Phoenicians began incorporating the logical thought of centralizing business through

palatial administration. This centralization led to the culmination of what was seen as the first

multinational enterprise in history. It spanned the globe from southern Europe to the Middle East

furthering the spread of Phoenician trade and power. With this expansion came the branding of the

Phoenician empire. Their famed red and black ceramics were readily traded for other resources in order

to gain profitability, thus becoming a signature. Their acquired profits were in turn reinvested into the

trade industry through shipbuilding. This reinvestment thus exacerbated the psychological undermining

of power for the Phoenicians. In turn, associations of an efficient merchant/mercantile system became

inherent with the Phoenician name, thus resulting in one of the first instances of branding a service. This

service, or rather conquest, spanned the globe and was the precursor to the global market that is in place

today.

As time passed, Greek influence (later becoming Roman influence) began changing the visage of

branding and how it was used. From a centralized imperial environment that generated trade within the

spheres of ancient society, a more capitalistic entrepreneurial form of trade began to cover the ancient

world. Based on the premise of city-states and community oneness brought on by the Greek culture,

branding turned into an assimilated approach geared towards a primitive form of consumerism. Moore

& Reid (2008) state in their report that “potters of Euboea began to label their work, and the practice

spread to Athens and Corinth in the following century,” which demonstrates the commencement of


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branding. The idea of recognition had again resurfaced, which correlates back to the basic human

necessity of ownership and recognition. Branding not only involved this attribute, but the instillation of

human emotion also was found to be a veritable means to gain attention and therefore sales. Moore &

Reid (2008) once again stated,

“Not only were images used to invoke power and portray value, but we see through the Aphrodite example another

foray into the use of image to sell using sex.”

It can be presumed that even the ancients knew of the magnetizing powers of carnal innuendoes and the

effect it has on human thought. By associations of sex, which promoted the thought of fertility to

commodities, primitive marketing managers therefore knew that it was one tactic to use to attract

attention and sales. From this example it is seen in that the start of branding by the use of psychological

association to influence an investment from the intrigued consumer began.

What is Branding?

It has been demonstrated that brands offer various forms of imagery to instill certain ideas about their

product or service. They introduce thoughts of lifestyle and status which personifies the owner. Brands

also show a glimpse of what the region of origin is like. However, looking at the definition of brands

from a theoretical point of view is a different story. Various articles and other publications within the

academic and professional fields have stated what branding means. However, there are an innumerable

amount of definitions, and it is deduced that branding is a subjective topic. Since these authors come

from diverse backgrounds, variations do exist in the explanation of a brand. Therefore, a derived

generalized definition from various sources would be the only way to properly define branding.

According to many authoritative figures in the field, a brand is a representation of a product or a service

that an organization communicates to the consumer. It conveys characteristics that illustrate the product,

create emotional connection, and persuade the consumer into purchase. However, other sources portray

brands and the act of branding as being something more. It has been researched that the recognition of

brands stems from the synaptic systems triggered within the biological foundations of the human mind.

Studies have found that branding and the recognition of a brand, trademark, or logo ignites neurons

within the brain, which causes the recollection of images and emotion, thereby creating a thought

process. This thought process evidently causes an infusion of natural stimulants into the blood stream

that make the consumer either feel good or bad about the brand (Walvis 2007).

Therefore, the concept of a brand is not only physical but also mental. Brands can be touched, smelled,

or tasted, but can also make people feel good or bad as a result. It is this perception by the consumer


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that is an important aspect to marketers. Kotler & Pfoertsch (2006) elaborate that branding enters a

higher form of conception where:

“A brand is a promise.”

“A brand is the totality of perceptions – everything you see, hear, read, know, feel think, etc. – about a

product, service, or business.”

“A brand holds a distinctive position in customer’s minds based on past experiences, associations and

future expectations.”

“A brand is a short-cut of attributes, benefits, beliefs and values that differentiate, reduce complexity, and

simplify the decision-making process.”

Branding within today’s hypercompetitive market also provides differentiation. This differentiation must

pique interests among consumers and win over their minds. They must stand out from a crowded

market where variety is prevalent and has made it hard for consumers to properly make a decision. As

Gobé (2001) explains, brands must achieve a sense of identity with their consumers on a level that drives

many humans – emotions. It is emotions that drive us to make rational or irrational actions and

ultimately conclusions. Gobé (2001) continues to state,

“The future of branding is listening carefully to people in order to be able to connect powerfully with them by

bringing pleasure, life-enhancing solutions to their world... Traditional companies will not be able to rely on their

brand history or dominance in classical distribution systems… but must …focus on providing brands with a

powerful emotional content.”

Furthering this note of perception, consumers also emanate thoughts about the organizations the

product originates from. Another form of branding, corporate brand image (CBI) is the inner

perceptions given off by organizations, which in turn are conveyed onto the consumer. With this

process, consumers see how organizations think of themselves and derive their own thoughts and

associations to the product from what they perceive. Therefore, it is understood that these internal

perceptions within the organization are imperative for success with its consumers. Alwi & Da Silva

(2007) declare that,

“CBI is the external stakeholders’ perceptions based on their cumulative experiences of an organization, where

corporate reputation represents the whole or collective representation of internal and also external stakeholders’

experiences (image and identity) with the organization.”

It can be construed that depending on how the organization views itself, will determine how consumers

identify with the brand(s) it produces. This form of branding encloses on the thought that smooth

internal operations will produce good products or services. Alwi & Da Silva (2007) further supports this

by stating that as long as stakeholders value the organization and its operations, it can remain


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competitive in its market and experience healthy sales. The perception within the organization reinforces

the perception consumers have about produced brands. CBI is regarded as a type of internal branding,

which is depicted in Figure 2 below.

Figure 2: Corporate reputation chain (Alwi & Da Silva 2007)

Another type of branding is elaborated by Auh & Shih (2007), which revolves around the idea that

branding is a form of designation in evolution. They state that many technological brands, such as

electronics and cars resort to this style of branding. Take for example BMW AG who brands in this

manner. Their numerical designation indicates the category of car, such as a sports car or a four-door

sedan, and also indicates the size of the engine. For example, a BMW 328i is a compact sedan with a

3.0L V6 engine. Branding in this way establishes a means to communicate the progression of the brand,

and demonstrates to the consumer that the current product is now better than last year’s. This act of

name branding is dubbed by Auh & Shih (2007) as PPD (perceived product differentiation) and PPU

(perceived product upgrade), and appends itself to the aforementioned definitions. Showing consumers

the advancement during product market runs inherently shows how far they’ve come since their

introduction. This also exhibits an underlying aspect of quality and performance. Consumers logically

see that the product has been upgraded, and therefore think that the product has been improved. This

also gives the consumer a sense of assurance even though they are most likely unaware of what has been

changed. Branding in this manner conveys psychological and emotional innuendoes toward consumers

to persuade them to reinvest.


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The goal of branding therefore is to not only impel the emotional side of the product or service onto

purchaser, but to also create and drive something more purposeful - business. During the early years of

branding the goal was recognition of ownership and origin. The goal of branding now is to create

awareness, which creates commerce and stimulates business. With today’s compelling marketing

strategies, the goal of branding is to depict quality and reliability, cause awareness, portray a status, and

characterize the purchaser. Of these characteristics awareness by far surpasses all other aspects and is the

fundamental goal, to make consumers and businesses attentive of their presence. It is obvious that if

consumers and businesses are aware of a product or service, the chances of purchase or partnership is

higher. Compare this to a brand that is not within the mainstream of the public or business arena. The

likelihood of investment from users is small. Obviously if something is not known it will easily be

overlooked.

With this in mind, various tools and campaigns have been created to promote brands. Through the

evolution of branding, numerous strategies have been implemented to create the needed end outcome of

awareness. One strategy would be the promotion of the brand through celebrity endorsements.

Celebrities create a massive amount of awareness and therefore branding along with celebrities goes

hand in hand. Within the business-to-business context branding through existing brands strengthens

market footholds. A good example would be processor chips that are marketed as cutting edge in

technology. Once paired with another brand, say the brand of a computer manufacturer, it is perceived

by the end-user as having increased value. By branding on top of another brand the joining of

perceptions from the viewer is enhanced and brought to a higher level. Such thinking permanently

resides within consumers since the logic is plain to see. One brand plus another brand equals twice the

value of the brands independently.

Other techniques of creating awareness play on the premise of the human psyche. Jingles, as they are

called within the marketing realm, are good examples of this. By introducing brands through variations

of catchy phrases or with captivating music, end users are forced to remember the brand. This occurs

many times to viewers who are unknowingly cognizant of the advertisement’s message. Marketing teams

are quite aware of this subliminal undertone and fully take advantage of it. An example would be a

company within the pet food industry who brands itself as Meow Mix. Del Monte Foods, the producer

of Meow Mix, introduced their line of cat food in the early 1990s (Del Monte Foods Company 2009).

Initially, the viewer is shown a cute feline that sings a song repeatedly with the distinctive sound that

every cat makes – a meow. The meow is repeated over and over to the rhythm of a catchy tune, which

aids in anchoring itself within the mind of the listener. The viewer primarily thinks the advertisement is

cute, but hours after the initial viewing of the commercial, the viewer realizes that the commercial


14

persistently stays along with the image of a cat. Thus, the end objective of creating awareness for the

product has been reached.

The process of branding is therefore also a strategy used to induce the feeling of remembrance and

“want” in customers. Strategies derived from the field of psychology have identified various techniques

to instill the sense of “want” within the consumer. The use of carnal innuendos for the promotion of

products for example is one way to induce this feeling. Sex sells and since humans are naturally drawn to

the pleasure associated with sex; a link can be made with a product or service to help it sell. The

cosmetics industry is a good example of this point. As we know, the cosmetics industry’s goal is to make

people look good, which naturally falls in line with the aforementioned. It is this undertone of looking

sexier and feeling good that appeals to the masses and therefore helps sell the product.

What does Branding Create?

The following are characteristics that all brands tend to create within the customer. They have come to

be the primary catalysts towards deciding and making an investment, and drive all processes surrounding

the brand. Without these three constituents, a brand wouldn’t be a brand.

Awareness of Brands Recognition is an inherent trait that all humans possess. Wengrow (2008) elaborated in his findings that

early forms of branding were used to create awareness of origin, craftsmanship, and type of product.

With the incursion of technology creating awareness proliferates faster among members of society, even

creating knowledge of products beyond market borders. Marketing campaigns were normally centered

on media norms of television, radio broadcasts, and print. Today’s cyber age however, has additionally

created instant consciousness of products and services at light speed. The advent of the Internet has

created a direct channel for marketing agencies to pump in advertisements directly to computer screens

in front of consumers. Likewise, social networking has created closer knit groups, and similarly allowed

people to be aware instantaneously. Knowing this information about potential clientele, firms have

employed tactics that use the same technology to cunningly identify popular trends. Plus, with today’s

computing power organizations can now categorize these trends, and induce relevant content and

products.

Marketing firms also use a common technology that has pervaded the market and is now deemed as

personal as the wallet – the cell phone. Cell phones today have an array of options that allow the user to


15

connect to the internet directly. Cell phones are becoming more like mini-computers, since the newest of

these boast connection speeds that are as fast as a normal computer. Organizations are seeing the

viability of reaching potential customers directly through this new medium. They have found that

running advertising campaigns and depicting brands through these wireless mediums has a certain

personal and emotional effect. With this, marketing funds in this sector are growing for businesses that

want to brand themselves to end users on a personal basis (Chordas 2009).

Other methods to create awareness are now also used. As previously inscribed, the advent of online

social websites has made marketing easier. Using Facebook, MySpace, and Twitter has allowed

organizations to advertise at low cost. The Swedish retailer IKEA used such a method ingeniously to

achieve their marketing goals. Knowing that Facebook is a globally popular website for communication,

IKEA used this venue to create a virtual form of word-of-mouth communication, which generated

massive awareness. Everyone in the network of friends who subscribed to IKEA’s Facebook page

became aware of new IKEA products and new stores. Through the complexity of networked

connections, IKEA met their objective of marketing their brand image, but did so in true IKEA fashion

- cheap and efficient (Matyszczyk 2009).

Although such marketing tactics can be viewed as having an effect that portrays personal influence

towards users, it is not necessarily personal in the true sense. It is just a form of passive awareness, but is

still considered word-of-mouth. Viewers who obtain such knowledge psychologically perceive it as being

an experience their friends have gone through, which automatically justifies the value of the experience.

Today’s marketing motive is highly centered on the end-user or end-organization. Adding a personalized

touch makes the brand (product or service) extremely attractive and worthy of investment. Current

trends enhanced by technology allow users to have full control of their brand experience, that is, when

and how they want advertisements. Marketing firms are aware of this, and have made it an end point to

make the brand experience interactive. By doing so they create a tailored experience that allows

customers to be comfortable further increasing the likelihood of initial investment or reinvestment, as

well as, spreading awareness of the brand.

Emotional Connections to Brands

One could surmise that creating such awareness within targeted groups is the main objective. However,

when delved into deeper the primary driving force that brand managers are trying to convey is one that

drives all humans - emotions. It is the primary reason why actions are taken. Emotions can drive humans

to accomplish almost anything, and is the main differentiating factor from all other living species. The

ability to rationalize, contemplate actions, and commit to those actions through associated feelings gives


16

humans this ability. To buttress this fact, one can analyze the negative occurrences that happen either

from neglect or from irrational behavior. If a person suffers and experiences pain associated with an

episode, that person will not do the same action again.

Knowing this, organizations strive to associate their brands with emotions and create an identity that

people can relate to. Creating such a characteristic instigates the forming of a new façade within the

image of the brand. The brand in other words, is transformed and appears to have a life of its own. This

is the meaning of emotional branding, which is properly defined by Gobé (2001) as a,

“…methodology for connecting products to the consumer in an emotionally profound way. It focuses on the most

compelling aspect of the human character; the desire to transcend material satisfaction, and experience emotional

fulfillment.”

By personalizing the brand through characterizations that ultimately create its personality, consumer

tendencies of remembering are heightened.

The characteristic of a brand is first and foremost an extension of the source – the organization.

Consider the Harley Davidson brand motorcycle that has portrayed its products as rough and rebellious

for over one hundred years. The camaraderie that is involved within the corporate culture runs deep, and

shows itself through its corporate brand image. Designers and engineers alike highly pride themselves in

creating a true American icon, which seeks to solidify its brand-emotion not only through their

motorcycles, but through accessories such as clothing and sponsored nationwide rallies. Customers who

own a Harley Davidson portray themselves congruently with the brand’s image, and evidently become

the brand. This type of association was noted by Arvidsson (2006) who states,

“It is how you feel with the branded product, what kind of person it can make you become, that is what sets it apart

from other branded products or unbranded generics.”

Many customers who own a Harley Davidson depict nonconformity, which is the fundamental creed

that underscores the brand (Schembri 2008).

Emotional branding therefore is something that must be conveyed one person at a time. By piquing the

consumer’s mind into recognition and associating the image towards specific feelings a powerful method

of entrapment reveals itself. Organizations that emotionally brand themselves within the psyche of the

consumer achieve this. Prior to the 1930’s western society was bombarded with unorganized marketing

as Arvidsson (2006) writes. Illogical predications pervaded industries in hopes of gaining a decent

customer base. With the incursion of psychology however patterns were beginning to appear within

consumer behavior and a more structured methodology came forth.


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Consumer behavior patterns brought forth strategic marketing ploys that were based on essential human

attributes – the five senses. Researchers eluded prior attitudes of marketing and began adopting a clever

and ingenious method. Since psychology has noted that human emotions are triggered by a specific

sense or a combination thereof, it was found that correlating products to these upwelled emotions

increases the likelihood of a purchase. Research to initiate these thought processes were then elicited so

that consumers may embark on a subjective journey of personalized thought where about the branded

product. Using the consumer’s thought, which was based on his/her senses, was viewed as viable to

cause intrigue ultimately leading to a purchase.

The sensory brand experience is found to have a profound effect on consumers. It primarily allows the

person to experience the brand on their own terms based on how they perceive it to be, and is therefore

a subjective experience. Speaking from a perspective of what must be done by organizations creating

brands, Gobé (2001) proposed several aspects on how to successfully create emotion for brands. He

states that,

“Consumers as a whole must not be looked upon as an enemy that must be conquered, but rather a

partner that could be a source of insightful information.”

“Emotional relevance must be made towards products through the use of interactive experiences that

highlight the attributes.”

“Organizations must be honest towards customers, and earn their trust.”

“Quality must be upheld in every product produced; buyers will recognize this and form their preferences

based on this.”

“Notoriety will get a brand recognized, but conveying appropriate characteristics towards customer

aspirations will ultimately gain success.”

“Brands must not only be recognized, but also convey personality to be remembered.”

“Having functionality is only part of the equation of success; having experience that coincides with the

product creates memorable emotions.”

“Being ubiquitous will result in being seen, but having a presence that is conveyed as lifestyle attribute will

have a lasting effect.”

“Communication is a key factor that must not only be a one-way thoroughfare; it must be a two-way lane

where feedback can be given to gauge performance.”

“Communication is sales but must form personal relationships to gain a repeat purchases.”

Invoking the five human senses will aid in sustaining lasting impressions on the consumer. Each sense:

smell, sight, sound, touch, and taste, will undoubtedly create a thought process where associated

memories are conjured. According to Gobé (2001) each sense is tied to a specific memory that aids in

solidifying the brand and its impression.


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Smell Smell is by far the most notable of the senses since it is found to have direct contact with the olfactory

nerves in the brain. Having the sense of smell is the reason why humans can taste food, and it is the

reason the why sensations of happiness overcome people when they smell something pleasant. Likewise,

it is responsible for making people feel repulsed when an unpleasant odor permeates the air. This fact by

and large is responsible for creating moods within consumers. Chances of remembering and the

likelihood of purchase are vastly increased when scent associations are place with a brand (Gobé 2001).

Sight The sense of sight is another noticeable way a brand can be successful in its depiction. If consumers can

see the product such as how it is constructed, how it may mechanically work, or if it looks appealing,

consumers will obviously draw positive associations towards the brand. Additionally, studies have shown

that using appealing colors that instigate certain emotions are also beneficial to brands and how they are

portrayed (Gobé 2001).

Sound Sound on the other hand, helps humans perceive spatial depths and gauge the tangibility of objects. The

most notable attribute of sound is the meaning it creates when it is arranged in a structured pattern that

is harmonious. Music is the outcome of human emotions, and embraces almost every expression from

happiness to sadness. It is what defines being human, and can portray metaphorical meanings simply by

carrying a certain rhythm or tune. The addition of lyrics to the rhythm makes it even more relatable and

personal, which is why music evokes emotions. Therefore, sound can aid in marketing a brand.

By associating a brand with a particular genre of music, a firm can contribute to the distinction of its identity, which

is vital for attracting consumers (Gobé 2001).

Touch Humans are born with an uncanny need to play with whatever their hands can touch. The need for

exploration through this method starts from the moment of birth. Babies touch and play with everything

in sight, and in doing so explore and learn about the world. The sense of touch consequently is a way for

consumers to learn about brands and determine product characteristics. Holding a product and feeling

how heavy it is allows the consumer to determine for example quality. Identifying the shape of an object

can also aid in branding (Gobé 2001).

Taste The sense of taste on the other hand is used to enhance an experience, such as when people celebrate

there is always food and drink involved. Or when visitors come to someone’s house they are generally

greeted with something to drink such as water, coffee, or alcohol. The act of offering to one’s sense of

taste creates a warm welcoming feeling that in the end boosts the experience. Similarly, brands that


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associate a sense of taste boost the experience for the user. It is therefore appropriate for brands,

especially food and drink brands, to associate a positive palatable experience that will remain in the

consumer’s mind (Gobé 2001).

Brand Loyalty One could construe that sole purpose of committing to such actions is to entertain the customer. From

a business perspective tying emotions to products and services is only a preliminary step towards the end

objective. Corporations ultimately search for a relationship that must be prolonged with the customer. A

long-term relationship where customers continually return to satiate their needs is the fuel that energizes

consumerism, which is the fuel behind branding. Repeat purchases as well as high return customers,

such as customers who hold large spending accounts in the business-to-business realm, is what every

organization is after. In a market where consumers are easy to gain due to marketing ploys, and hard to

retain due to the pervasiveness of substitutes, it is not easy to reach the goal of customer loyalty.

Customer loyalty has been found to be more lucrative in the long run compared to attaining new

customers. Studies have shown the incurred cost of attracting new customers is more than maintaining a

steady customer base. The same can be said for an organization’s employees. If the employee census is

well maintained, it will inherently lead to proper customer treatment. A stronger customer base will

follow and lead to better organizational performance. Griffin (1995) reports that on average

organizations experience a 15 to 20 percent reduction rate in customers annually. Spending less on

obtaining customers also allows for use of the saved money toward enhancing existing products and/or

services.

Analysis of markets has shown that most consumers purchase on-the-fly and are called “light buyers”

(Hallberg 1995). Differentiation therefore is a key aspect since it causes intrigue and fascination within

consumers. This is important since market crowding is evident in today’s economy and there are less

loyal buyers. In fact, most sales in the consumer world come from buyers who portray the light buyer

behavior. According to Kotler (1999) prior to the 1970s, marketing was mainly focused on light buyer

business. Times have changed and today marketing has pervaded society, and is at a level where it is easy

to reach people. Top performing brands that attain light buyers are successful in distinguishing

themselves through innovation and show that they can meet customer needs.

There are two main categories that describe how organizations approach customers through their brand

portrayals. There is the traditional tangible brick and mortar approach, or the more common and less

tangible advertising approach through media. In today’s modern terminology, they are dubbed the


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offline method or online method of marketing. Both mediums create awareness, but the increase of

technological competence within organizations and consumers has created a deeper methodical need in

the latter approach. Stripp (2008) states that denying usage of both methods or even denying the usage

of one method to support the other will result in a decline of customers. Today’s technology has created

a closer knit community where online methods to reach customers are primarily used. The offline

method is considered the secondary supporting factor when consumers want to see the product in-hand.

The online method mainly uses today’s technology to create awareness through electronic means. Social

networking has pervaded society and is recognized as a form of “word of mouth.” In as much, the

phenomenon of “going viral” has created the spreading of information much more easily when

compared to previous methods. Wilson (2005) states that,

“Viral marketing describes any strategy that encourages individuals to pass on a marketing message to others,

creating the potential for exponential growth in the message's exposure and influence.”

Viral marketing can be seen for the promotion of Hotmail in 1995 to the

Blair Witch Project movie in 1999. Both, including many other marketing ploys, had exceeded in

generating massive awareness and have successfully branded their respective products.

What are Characteristics of Successful Brands?

Branding a product or service in the tangible sense is quite commonplace; however, branding extends

farther than that. It is the totality of perceptions that the viewer has wherein a subjective thought is

placed onto the product. It is therefore assumed that branding mainly involves human perception. These

perceivable aspects undoubtedly involve the experiences brought by the viewers. This act of insight

wholly depends on the underlying positive or negative psychological association. Anything or anyone can

be a brand. A person can be branded, a city can be branded, animals can be branded, and even simple

everyday household items that seem frivolous, if deemed important to the conceiver, can be branded.

Thus marketers in many organizations who are selling some kind of product must create a memorable

experience that is taken positively by the customer. Becoming a strong brand is the culmination of

various strategies and timings that have resulted in an everlasting persona for the organization and its

products. Sentiments about the brand must be tested and proven repeatedly, and the brand should never

fail. Strong brands therefore have successfully maintained this along with a positive perception in their

products. They have created loyal customers.

It must be noted that branding is not about proper depiction through advertising. Promoting one’s

brand is only one variable in the whole equation of brand success. It has been construed that building


21

strong brands involves innovation and uniqueness to solving customer problems. Strong dominant

brands have solidified their offerings. Customers undeniably view these brands as innovators that are

reliable. The products proposed by top brands help generate the needed momentum to push forward

and proliferate within their market segments. These brands have struck an emotional chord with

customers, and have generated revenue creating a funding resource that can be readily tapped. As a

result many “flagship” brands have created sub-brands that aid in depicting their main brand identities.

Not only does this allow good market share but also controls customer acuity toward the proposing

organization. The following “four pillars” from Aaker & Joachimsthaler (2000) summarize the

constituents strong brands generally possess.

Figure 3: Brand Leadership (Aaker & Joachimsthaler 2000)

Advertising for Big and Small Brands As noted, advertising causes awareness. All marketers, whatever their respective industries, want to cause

awareness for their company’s product. They want to advertise what their organization is capable of, and

want to do it in a positive manner. This is true for the business-to-business sector, where creating long-

term relationships are more reliant upon the experience representatives receive from sellers. On a

consumer level, businesses tend to convey ideas. They want to convey emotions that instill ideas about

Brand Leadership

Organization structure and processes

• Responsibility for brand strategy

• Management processes

Brand architecture

• Brands/subbrands/endorsed brands

• Roles of brands/subbrands

Brand-building programs

• Accessing multiple media

• Achieving brilliance

• Integrating the communication

• Measuring the results

Branding identity/position

• Aspiration image

• Positioning the brand


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the product and simultaneously try to relate. These emotions psychologically undermine the consumer,

and direct them to make a purchase.

Advertising and its many forms have always been the platform for conveying ideas behind brands. The

conjectured thoughts invoke remembrances and/or create expectations that the brand will meet. This

process undoubtedly seeks justification within the buyer’s mind by provoking their feeling. What

advertising attempts to achieve in essence is the conveyance of emotion, or rather elicits emotion. These

emotions, which were defined by Gobé’s (2001) research, are the keys to success since they personalize

the brand for users. Through the medium of emotion, the self-realization and in turn personalization of

the brand creates a need and the essentiality of satiation of that need. Randall (2000) places it best by

saying,

“…how we think about a brand, what we feel about it and what we know about it from experience must all be built

into any model we develop.”

Good advertising also seeks to convey passion in brands, which is just an offshoot of an elicited

emotion. Leading brands depict a characteristic that tells purchasers about their meaning and purpose. It

tells of their company’s passion and in turn is implemented into the buyer who is subsequently seen as

also having that passion. Likewise, the advertising may also up-well any passions that a user may have,

such as a passion for driving, or a passion for animals. Through the systematic anchoring of senses to

emotion and ultimately to products, generally speaking, marketers who seek such attributes for their

brands do so in a positive manner. The power of associating the senses to brands creates a direct link to

users and their passions.

Reputation is another attribute good advertising is seen to display for brands. Top global brands

successfully communicate a worthy psychology surrounding their products. They relay information

about the brand that coincides with qualities that are congruent with reliability in performance, which

aims toward having a good image. This image is not only created by users of the brand, but also is

representative of how the organization sees itself within its industry. According to Herbig & Milewicz

(1997) reputation is,

“…an aggregate composite of all previous transactions over the life of the entity, a historical notion, and requires

consistency of an entity’s actions over a prolonged time. Reputation is established by the flow of information from one

user to another.”

Through repeated instances of performance, good or bad, reputation is created. However, Herbig &

Milewicz (1997) also state that these instances take time for the reputation to grow, and for credibility to


23

strengthen, which will only occur if the reputation is consistent. The aim of advertising then is to also

create awareness of the reputation and build good credibility.

Good advertising is a forum of sorts that allows brands to let the world know who they are. Morgan

(1999) says that this forum is a place where people meet and have conversations (to have small talk)

about the brand. Many top brands have already established their presence in their arenas and have

claimed their territory. They have conveyed their presence to the public and have done it well. These top

brands have displayed their attributes: who they are, what they do, where they’re from, and what they

have to offer. Their advertising has been unique, compelling, and relatable, which has intrigued buyers.

According to Morgan (1999) top brands have differentiated themselves through their advertising that

shows they are,

“Innovative and leaders in their market”

“Answering needs (business and consumer)”

“Strong in buyer recognition”

“Strong in their buyer psyche (have good association)”

“Sensible and practical in their offerings”

“Capable of producing products that perform”

“Known throughout their industry and beyond”

Their product claims are further supported by verified in-field performance reviews that reinforce

reputation and credibility.

Top brands can be seen as the bully of the playground. They’re big, possess large resource pools creating

power, and they’re hard to move from their territory. Quite often it is seen too that they like to play

rough, making it hard to enter their domain. They’re sheer size, dominating stature, and endless capital

creates entry barriers that even the challenger brands (brands that hold market share underneath

superbrands) have difficulty surpassing (Morgan 1999).

Although there are tools to let small organizations advertise alongside the big players, it is not the only

means to become a leader in the industry. As Aaker & Joachimsthaler (2000) state,

“A common misconception is that building brands is nothing more than advertising.”

To get recognized and play like a top brand other pieces must be found, which must be followed.

Product design dictates that a product must perform according to what it was intended. The distribution

of these products must also be efficient, where the logistics involved from resource allocation during

manufacturing, warehouse storage, to reaching the customer at point of sales must run smoothly. Aaker

& Joachimsthaler (2000) further state that an organization cannot randomly choose a channel of


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awareness, advertise, and then expect results. Television is a common form of communication, but may

result in high expenditures. Print is another frequently used medium, but may not be an effective

medium if the audience isn’t properly targeted. The Internet with its pervasiveness and commonality

may not be an appropriate route if business clientele are the objective. So it can be seen that

organizations seeking awareness within the public eye must have a strategy that is beneficial for their

product. Good advertising takes research, and strong brands have succeeded in their research.

Alliances between Brands To increase their position strategically some brands turn to their competitors and form alliances. This

would especially be true if an organization seeks a global presence on a scale that would be impossible to

achieve alone. In fact, some brands would have not become “top brands” in their segment if it weren’t

for the formation of their current alliances. By teaming together firms increase their value proposition

and avoid the pitfalls of expanding too much too fast. In essence, firms avoid overly certain judgments;

that is, assuming that certain potentialities are possible when in reality they are not. Firms that seek

world recognition also avoid limiting their potential by just focusing on one objective. Teaming together

increases their scope since the objective of their partners would also have to be taken into consideration

(Doz & Hamel 1998).

There is logic behind forging an alliance with competitors. For one an organization can build the needed

clientele by acquiring their partner’s customer base. This would lead towards encouraging and obtaining

the driving force brought on by consumerism. In addition, acquiring the proper customer foundation

would allow new knowledge of unknown markets to proliferate. It allows firms to enter markets easily

by avoiding competitive barriers placed by rivals. Top brands have gained their market dominance

through the acquisition of knowledge from their partners who are already in the targeted market. With

this, they have gained the position to be on the inside and create an advantage from the already known

information about their present market. The acquisition of this knowledge may be consumer

temperament for the region or knowledge about an entirely new field, like software production (Doz &

Hamel 1998).

One of the main advantages that top brands uptake when creating alliances is the creation of value.

Metaphorically speaking take two companies each specializing in a field. The two can be seen as needed

ingredients for baking a cake. If one ingredient is missing, the cake can be baked, but will taste bad. On

the other hand, when the cake is made with the goodness of the missing ingredients, it will taste good.

Therefore, the significance in having the two needed ingredients creates a better tasting cake, or rather a

better-valued organization.


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In as much, introducing new products by forging an alliance also creates new opportunities in being a

pioneer. Many times this creates new market segments that can be taken reinforcing the pioneer status.

Doz & Hamel (1998) further state that endeavoring in alliances creates value and increases areas that are

vital for contending within the market. For one, new organizations from alliances increase

competitiveness within an organization’s segments by combining knowledge from both pools. This gives

the newly created partnership an edge against its rivals, and evidently increases the available resources to

support their objectives. The shared knowledge also increases internal competences that can be used to

create strategies against players within the field furthering their capabilities. Doz & Hamel (1998)

elaborate that organizations create unions,

“…to position themselves strategically and gain competitive capabilities through the co-option of rivals and

complementary firms, the need to combine their resources through cospecialization so as to access new markets and

create or pursue new opportunities they could not consider on their own, and the need to learn through alliances,

both to overcome skill deficits and to acquire new competencies.”

The logic of alliance is portrayed in Doz & Hamel’s (1998) hierarchal depiction below.

Figure 4: The Logics of Alliance Value Creation (Doz & Hamel 1998)

Brand Barriers A top brand creates many difficulties for smaller or newer brands. Once the status of being the best is

achieved market dominance inherently transcends the competition. These brands are definitively the

alpha, beta, or gamma organizations in their markets, and are hard to move out since many barriers are

automatically erected to prohibit growth for smaller competitors.

Globalization

Building critical mass

Gaining competitive

strength through co-option

Building nodal positions in coalitions

Reaching new markets

Leveraging cospecialized

resources

Creating new opportunities

Plugging skill gaps

Gaining competence

through internalized

learning

Building new competencies


26

Several major sources of difficulty are given to competitors by these brands as elaborated by Porter

(1980) in his six principles.

“Economies of scale”

“Product differentiation”

“Capital requirements”

“Switching costs”

“Access to distribution channels”

“Cost disadvantage independent of scale”

Although his writings are a generalized look at competition from many industries, it must be noted that

top performing brands exhibit the same characteristics. Not only does this support Porter’s (1980)

observances, but demonstrates the reasons why top brands are dominant within their markets.

Brands that are established have “economies of scale” since they have several business areas to cover the

costs of production, distribution, and advertising. Many organizations that produce these brands already

offer a repertoire of other supporting brands, which expand market share. Their market dominances

gives the needed “capital requirements” to research and develop the brand, which inadvertently also

allows for efficient “distribution.” Furthermore, these brands are already established within their markets

and do not need a trial and error period for any regulatory agencies. This creates a “cost disadvantage”

for newer brands that have to pass regulatory commissions. Many loyal customers are also content with

the brand’s offerings, and therefore are reluctant to “switch” (Porter 1980).

Top brands are not just dominant due to the barriers they create or the reputation they hold. These

constituents are just part of the equation to success. Dominant brands that are successful have managing

teams that believe in the brand’s efforts. These teams exude innovation, creativity, camaraderie, along

with a full understanding of the brand and its implications toward the consumer. The harboring

organization understands the potentiality of growth and willingly allows its employees to grow

congruently. Being open to outside thinkers is also taken into consideration. The financial backing from

their established brand further fuels the brand’s endeavors. It is seen that once brands and their

organizations become market movers, a manifestation to grow the brand takes hold within the

organization (Wilkinson 2006).

Organizations that create top brands don’t rely on one brand alone, but rather on an array of brands to

succeed within their markets. Aaker & Joachimsthaler (2000) outline that many successful brands use

supporting brands to imply who they are. Having several brands implies strength, supports a positive

sentiment, and describes personality. Common goals that many organizations with top brands have are


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to penetrate lower income markets, and to achieve higher market shares. Additionally, introducing sub-

brands allows the firm to ward off any would-be threats creating security. Offering lower priced

alternatives gives the impression of cheaper substitutes, but in essence continues revenue acquisition for

the organization. These generic brands usually are “introduced with little push or support” as Porter

(1980) states. Generics can also serve as a preemptive attempt to thwart any rivals, or be used as a

catalyst prior to a new brand release.

Brand Public Relations The official meaning of public relations according the Public Relations Society of America (2010) is,

“Public relations help our complex, pluralistic society to reach decisions and function more effectively by

contributing to mutual understanding among groups and institutions. It serves to bring private and public policies

into harmony.”

Rules of public relations (PR) mandate that organizations and their brands must be abided to ensure

proper conveyance to the public. It is the buyer (consumer or business) that ultimately determines the

performance of the organization and its brands. Without appropriate conveyance of their intent, the

public will not properly receive the proposed brands resulting in failure. Codes of ethics from PR

institutions express the general belief that organizations should provide correct information, endorse

good communications with all parties, respect privacy issues, promote competitiveness, avoid conflicts,

and strengthen public sentiment towards issues of interest (Confédération Européenne des Relations

Publiques 2001).

Public relations in America and in Europe allow practitioners to advocate their respective organizations.

PR has come a long way from paper and speech campaigning. From its first renditions dating back to

ancient civilizations of the Middle East, PR has been a way to convey to society an ideology and create

awareness. Whether it was creating awareness of overseers or setting great armies on a pedestal in order

to gain public favor, today’s electronic frontier does the same. Instant information has pushed the

envelope of PR surpassing yesteryears capability (Bates 2006).

Brand managers in charge of PR seek to strongly communicate ideas that create positive opinions and

brand imagery in targeted markets. They instigate interactions and aid in product deployment through

their campaigns designs. In times of crises, where bad PR occurs, brand managers create counter

campaigns to control any negative repercussions that may arise. Today’s technology has allowed

practitioners to run campaigns that reach parts of the world previously thought impossible. With the

advent of social networking websites, really simple syndication (RSS), podcasts and the like, the


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spreading of information has become easier. Having a limitless budget to support their marketing

endeavors, many PR campaigns are enormous (Breakenridge 2008).

Achieving such awareness would not have been possible if it weren’t for today’s methodologies of PR,

dubbed by Breakenridge (2008) as PR 2.0. In today’s internet connected world, the availability and

dissemination of information is cheap and easy, and would not have reached its current standing point.

“There are many strategies on the Internet that have worked for years and now, coupled with new social media

applications, the result is powerful and meaningful communication with consumers who demand information and

want to gather, organize, and share content within their online communities” (Breakenridge 2008).

Although the traditional tools of PR are still the basic necessities, the introduction of the internet created

a realization that more awareness was possible. First generations PR methodologies primarily expanded

the traditional set of tools and launched an awareness of the virtual world. Though not as widely

pervasive in the late 1990s to early 2000s, brand managers understood that change towards a cyber-based

world was on the horizon. With this knowledge came a new and cost effective way of spreading

awareness. The ease of information gathering began to take hold with many internet users during the

mid-2000s. Marketers began using more coercive advertisements, thus creating a willingness among

users to pass information readily in “viral-like” fashion.

It must be understood that the sole purpose of PR is to understand attitudes within audiences, and use

that information to better organizations and their brands. PR provides the public with up-to-date news

about the organization’s and their brands performance. Second generation PR tools allow this to be

generated on a daily basis and is accessible at any time. As such these PR tools have produced massive

success for top brands, since it has allowed them to target their specific market segments, and provide

the needed information to create positive awareness. New PR tools and their implications towards

generating awareness have led strong brands to receive feedback that allows them to become socially

acceptability. The so called dialogue that is created allows brand and consumer to learn about each other

(Breakenridge 2008).

Fox & Madden (2006) state that younger users of the Internet, ages 12-28 are incline to use instant

messaging, play games online, and use blogs. People between the ages of 28-69 are likely to use the

Internet for a utilitarian purpose such as buying tickets. To be successful at marketing, brand managers

need to be proficient in researching their targeted markets. The new generation of PR tools helps

capture these mindsets, and enable brand teams to listen and market appropriately with real-time data

that is compiled daily. Data mining as it is known, this allows brands and their organizations to


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dynamically change to meet the needs of customers while averting any negative sentiments. Breakenridge

(2008) states,

“It is this professional’s responsibility to manage the research process and then share the information for the

purpose of integrating the results into new programs moving forward.”

It is one of the many reasons why top brands have become dominant. Today’s PR tools not only

allowed these brands to reach their populace effectively, it has also allowed them to coerce markets into

wanting more.

In summation, PR campaigning is a methodology that is used to implant an idea about a brand and

manage it accordingly. PR lies at the forefront of marketing, and utilizes many of the aforementioned

ideologies from creating awareness, to making connections with customers, and turning those customers

in loyal followers. Based on Breakenridge’s (2008) writings, leading brand teams have:

“given directed information about their brands to buyers (business and consumers)”

“given this information easily via the media tools from PR”

“given the ability to inquire”

“quickly responded to inquiries”

“stated their positions clearly within their industry; where they stand on issues and what they are doing to rectify any

problems”

“given their targeted markets to trust in their brand”

“control their directed messages about their brands”

“interaction with their markets on topics that surround their brands, which promotes them”

“guided the populace into forming their own “positive” opinions about their brand”


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Case of the Superbrand

With the exhaustive theory about brands behind, the previous questions asked still remain. At this point

it seems that perhaps some of the questions have been answered, but a further investigation must

commence to gain the answers thoroughly. Again these questions are,

1. “Is the word ‘superbrand’ just another name for a top-performing brand?”

2. “Are there any academic writings explaining what a superbrand is, and what are the professionals saying

about them?”

3. “Is there a template framework to become a superbrand in any industry, and what are the constituents for

such a framework?”

Investigation of Brand Literature

In the search of information for superbrands a great number of academic articles in databases and books

in libraries have been viewed. For the sake of simplicity and true academic research only books regarding

the topic of branding are mentioned. This allowed for an attempt to discover if any publications

currently exist specifically on superbrands. It must be noted that there resides within the halls of

academia a vast number of sources on branding. This obviously presented an obstacle for the work

needed; therefore, only a limited amount of sources can be presented. With many books being

published, a narrowed selection of twenty books were chosen and examined. These books were believed

to hold some kind of information on superbrands. The following is a listing of these sources in tabular

format.

Published Books on Branding

Year Author Title

1988 Charmasson The name is the game: how to name a company or product

1992 Kapferer Strategic Brand Management: New Approaches to Creating and Evaluating Brand Equity

1995 Hallberg All consumers are not created equal: the differential strategy for brand loyalty and profits

1995 Upshaw Building Brand Identity

1996 Aaker Building Strong Brands


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1999 Morgan Eating the Big Fish: How Challenger Brands Can Compete Against Brand Leaders

2000 Randall Branding: A Practical Guide to Planning Your Strategy

2000 Buchholz & Wördemann

What Makes Winning Brands Different? The Hidden Method Behind the World’s Most Successful Brands

2000 Aaker Brand Leadership

2001 Gobé Emotional Branding: The New Paradigm for Connecting Brands to People

2002 Klein No Logo: Taking aim at the Brand Bullies

2003 Levine A Branded World: Adventure in Public Relations and the Creation of Superbrands

2003 Duffy & Hooper Passion Branding: Harnessing the Power of Emotion to Build Strong Brands

2004 Chevalier & Mazzalovo

Pro Logo: Brands as a Factor of Progress

2005 Lindstrom Brand sense: How to build powerful brands through touch, taste, smell, sight, & sound

2005 Lamons The Case for B2B Branding: Pulling Away from the Business to Business Pack

2006 Foley & Kendrick Balanced Brand: How to Balance the Stakeholder Forces That can Make or Break Your Business

2006 Kotler B2B Brand Management

2006 Passikoff Predicting Market Success: New Ways to Measure Customer Loyalty and Engage Consumers With Your Brand

2006 Grant The Brand Innovation Manifesto: How to Build Brands, Redefine Markets and Defy Conventions

Table 1: Branding books examined

The books were listed by publication date to determine if any logical progression occurred through the

years. All books are specifically on the topic of branding. Although the majorities are aimed at consumer

branding, there are two business-to-business branding books that were believed to contain information

about superbrands. These books were also included in the list to demonstrate that a generalized

overview of branding within both B2B and B2C arenas was taken into account. All books were analyzed

by referencing their table of contents to see if there were any topics that surrounded the idea of

superbrands, along with the extraction of information to be used in this thesis. If any pertinent

information was found upon deeper inspection on superbrands they were noted. In addition, several

other marketing books were also referenced in order to grasp a deeper idea on the topic of branding and

their results.


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However, the investigation did not stop at just books. Numerous articles in academic databases were

searched and also used for reference material. Various journal publications on branding and marketing

were researched. For the sake of straightforwardness those articles will not be referred to, although many

were used to supplement the theory found in the books. The sheer vastness of information currently

present within online databases also created another obstacle, since the time needed to peruse through

them posed a daunting challenge. With time constraints in place it was therefore thought that articles

were not relevant, even though some of the information they presented was used in this work.

Professional Point of View

Although it is good to have academic information to understand the topic of branding, it is always best

to have real world examples to support the theory. This obviously would allow for the testing of the

theory to see it were true or not. Asking people who know best about the topic of branding was

therefore a needed aspect and was undertaken. Several organizations that specialize in branding practices

were approached. At present there reside two firms who have become known as brands themselves that

were targeted. Interbrand Corporation and Superbrands Ltd were found to be the most predominant

and respected within the branding community. Both organizations gauge brands around the globe and

designate the most strongest and successful brands out of the plethora that reside within the many

industries around the world.

Interbrand Incorporated From its inception in 1974 Interbrand Corporation has helped the world realize the importance of

brands. With regional headquarters in the Americas, Asia, and Europe this organization has become the

consultancy group that many businesses turn to for advice on becoming a strong recognizable brand. On

their website Interbrand (2010) states,

“We have changed the world’s view of branding and brand management by creating and managing brands as

valuable business assets.”

“We bring together a diverse range of insightful thinkers making our business both rigorously analytical and highly

creative.”

“We create and manage brand value by making the brand central to the business’s strategic aims. We’re not

interested in simply being the world’s biggest brand consultancy. We want to be the most valued.”

Under the Interbrand group resides sub-companies that specialize in areas of branding that are needed

for businesses to thrive and perpetuate. Their Interbrand Design Forum aids in the designing of brands.


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More formally, this business segment helps in the creation, modification, and realization of brands.

InterbrandHealth specifically caters to branding in the healthcare industry, while their BrandWizard

segment offers brand management services that allows for more effective and efficient brands.

Interbrand is also responsible for various published books on the topic of branding in several languages,

as well as, running an online magazine called Brandchannel, which gives up-to-date news about branding

practices. The organization is also a respected leader in ranking brands and annually publishes its

findings of the best global brands in cooperation with Businessweek. Accordingly, Interbrand (2010) has

defined branding as,

“A brand is a mixture of attributes, tangible and intangible, symbolized by a trademark, which if managed properly,

creates value and influence. ‘Value’ has different interpretations: from a marketing or consumer perspective it is the

promise and delivery of an experience; from a business perspective it is the security of future earnings; from a legal

perspective it is a separate piece of intellectual property.”

“A brand is intended to secure future earnings by growing customer preference and loyalty. Brands simplify decision-

making, represent an assurance of quality, and offer a relevant and credible choice among competing offerings.”

Interbrand ranks their top performing brands through a systematic process, which looks mainly at the

financial performance acquired by the company in focus from their brands. This process is depicted

below and highlights the value of an organization’s brand.

Figure 5: Interbrand Methodology (Interbrand 2010)


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From this financial performance measure, Interbrand has rated the most predominant brands of society.

According to their website these brands originate from multi-billion dollar corporations, and possess

brand value worth billions of dollars as can be seen from their listing below.

Figure 6: Best Global Consumer Brands 2010 (Interbrand 2010)

It must be noted that although top regional CEOs of Interbrand were approached for an interview,

many were inaccessible. All had no time to provide the sought after information in sent surveys. Of the

five approached regional managers one replied stating that all information needed could be found on the

official website.

Superbrands Limited Another organization responsible for gauging global brands seemed particularly interesting. Superbrands

Ltd is an organization that holds the title that is the topic of this thesis. Undoubtedly this organization

had to be chosen since it was thought to be the source of the word “superbrand.” Founded in 1995

from a radio show aired in England that gave the public opinions about everyday brands, this

organization has since become a leader on assessing brands. Within 13 years from its inception, the

organization has become a respected judge among today’s brands. Superbrands Ltd is responsible for

publishing various books on the topic of branding, and is an award that enhances brand value. Currently

Superbrands Ltd works with 3000 brands and has created a network that strengthens brand positioning

through the aid of PR and media campaigns promoted by the organization. Superbrands Ltd focuses on


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six segments which include consumer, business, sports, Internet, luxury, and child markets that are

respectively run by offshoot businesses: Superbrands, CoolBrands, Business Superbrands, Sport

Superbrands, e-Superbrands, Luxury Brands, and Kid Superbrands (Superbrands Ltd. 2010).

In catering to the seven markets of branding the targeted brands are put through a rigorous gamut to

determine their viability as a superbrand. First and foremost 3000 consumer brands that are in the

market are observed in a quantitative assessment, and categorized by awareness, strength, impression,

and market performance. These brands are then filtered down to 400 brands. The identified brands are

then assessed further by a council of professionals from specific industries that have a legitimate amount

of experience with brand management and marketing. These members are however not allowed to

decide on brands that reside within their own industry. Of the 400, 100 brands are removed out of the

selected, and the rest are labeled as superbrands. These brands are found to have the most

emotional/rational advantages with value adding characteristics. Additionally, the 300 remaining brands

are then subjugated to further testing against nine attributes: inheritance, trust, innovation, solidarity,

consideration, nostalgia, prestige, acceptance, and role models (Superbrands Ltd. 2010).

The aforementioned rigorous selection process is based on the analyses of three constituents: brand

analysis, industry specific market analysis, and marketing analysis. Brand analysis reviews a brand’s

strength/values from the public through surveys. Industry specific market analysis gauges trends exuded

by the brand’s residing market, which leads to the last constituent, marketing analysis. In marketing

analysis, a review of activity as a result of the brand is conducted. Campaign assessments, image/brand

language assessments, marketing/PR reviews, and ROI (return on investment) analyses are all taken into

consideration when grading brands (Superbrands Ltd. 2010).

For the business sector, 1700 brands are observed and also placed through the same testing procedures.

Succinctly, each brand is grouped according to industry: industrial, service, finance, publisher/journals,

and construction/property. Chosen respondents are then required to answer a survey, which rates the

brand.

The study, which is held every year, results in the top 100 strongest brands. The following table shows

the 10 best-rated consumer brands according to their website.


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Table 2: Consumer Superbrands 2010 (Superbrands Ltd. 2010)

Superbrands Ltd is composed of notable figures from the communications and marketing industry that

possess a noteworthy pool of knowledge about branding. These experts have an understanding of

brands and come from top companies around the world, and are commissioned through The Center for

Brand Analysis. Each selected individual works toward one goal as defined by Superbrands Ltd. (2010),

“The goal of Superbrands is to identify those brands which perform above and beyond others within the market. It

identifies and honors exceptional brands by recognizing, rewarding, and reinforcing leading brands from all over the

world.”

The Superbrands group is a global organization composed of smaller subgroups that rank brands in

countries within their respective market. Each segment assures proper ranking procedures within

cultural limitations, since societal mentalities differ from country to country. According to a survey sent

to the CEOs of Superbrands Ltd. in the United States, Sweden, and Singapore a consumer definition of

a superbrand is,

“A Superbrand has established the finest reputation in its field and offers consumers emotional and tangible

advantages over other brands, which (consciously or sub-consciously) consumers want and recognize (Superbrands

Ltd. 2010).”

The same people also stated that a similar definition of a superbrand within the business arena exists.

“A Business Superbrand has established the finest reputation in its field and offers customers emotional and/or

tangible advantages over competitors, which (consciously or sub-consciously) customers want, recognize and are

confident about investing in. Business Superbrands are targeted at businesses and organizations (although not

exclusively so). Business Superbrands must represent quality, reliability and distinction (Superbrands Ltd. 2010).”

Undeniably, there are different constituents within each segment, and each holds a different

psychological factor. Consumers exude more individualistic emotions used in the purchase process,

while businesses rely more on a logical utilitarian assertion.


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Branded Organizations Asking professionals about their opinions on branding is a starting point that undeniably supports

academic research; however, it is deemed to be subjective. Although the aforementioned professional

agencies have complex methodologies and good reputation within the community, these groups may be

victim of “group think,” where an idea that is generally agreed can proliferate and create a one-sided

opinion. By having a simpler approach supported by theory, and unhindered by outside influences,

revealing what a strong brand is can be achieved. This approach will support the learned material and

reveal the mechanics of how the strongest brands work. It will also aid in revealing any peculiarities that

may be of interest. Therefore, this approach should entail example organizations that are said to have

strong brand names.

As an example, three global corporations will be observed. All three are brands that are well known

within developed societies, and each is capable of catering to consumer and business demands. These

organizations were primarily chosen because they exhibit many of the aforementioned traits and

principles. Furthermore, they are from different industries that are encountered on a regular basis and

assure variety in illustration. The numbers shown in Table 3 below, display each organization’s stats,

which include their respective industry, generated revenue, home market share, and rankings by

professional groups. Additionally, each company is looked at from the perspective of their largest

markets, since it is assumed that good brand recognition inherently comes from within these markets.

Microsoft Corporation sits within the technology industry, and is most known for its Windows operating

system. Based out of Redmond, Washington in the United States, Microsoft was established by Bill

Gates and Paul Allen in 1981 and caters to the needs of businesses and consumers by producing

software. The company has a rich history based in technology, and has been at the forefront of

computers by introducing new technologies that aid in productivity, as well as, leisure. Through the years

Microsoft has boomed due to its research efforts in software. Currently it holds approximately 90% of

the operating system market demonstrating dominance in its industry while being globally pervasiveness

(Palmer, 2009). Its knowledge base also extends further by entering other arenas such the as the

automotive industry.

Bayerische Motoren Werke Aktiengesellschaft or BMW AG for short is a company based out of

Munich, Germany that produces luxury automobiles. Its current repertoire of production also includes

motorcycles and high end bicycles. Originally the company had the name Bayerische Flugzeugwerke

Aktiengesellschaft (BFM AG) in 1916 and initially made aircraft engines. The BMW roundel still shows

their history; propeller blades cutting through a blue sky. BMW’s current brand line-up includes Rolls-

Royce and Mini, and the BMW Motorrad and Husqvarna motorcycle brands. Additionally, BMW AG


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offers insurance and technology consulting services (BMW AG 2011). At present day estimates the

BMW automotive group claims 10% of the global market (Vaidya 2010), which demonstrates that the

BMW brand is well-known globally.i

IKEA (Ingvar Kamprad Elmtaryd Agunnaryd) Group is a global home furnishings giant that originated

from the Småland region in the south of Sweden. IKEA’s headquarter is based in Delft, Netherlands,

but unlike the two previous organizations is a privately held company. The IKEA brand is known in

many geographic regions, but has the largest presence in Europe. IKEA takes pride in having cheap,

efficient, Scandinavian designed home furnishings that require installation. This is the philosophy passed

down from its founder Ingvar Kamprad, who himself demonstrated an economical lifestyle. Moreover,

this philosophy has transgressed into its supply chain where products are designed to fit in the smallest

space, which saves on shipping and logistic expenditures. However, the company’s global annual

revenue shows that its economic philosophy pays. The company grossed €23.5B, which is the equivalent

of $33.3B, in revenue at the end of its 2010 Fiscal Year (Datamonitor 2010).

Table 3 below, offers a brief itemized list about each companies’ demographic and rated market

performance. Market share values are segment specific numbers; explicitly, sub-segments within markets.

For example, Microsoft Corporation resides within the technology industry, but its 90% share refers to

the operating systems market that is within the software market that lies within the technology industry.

Name (market) Industry No. of Divisions Generated

Revenue FY2010 ($)

Market Share (%) Interbrand 2010 Rank & Brand

Value ($)

Superbrands 2010 Rank & Index

Score

Microsoft (North America)

Technology 5 $62.5B 90 3

$60.9B 1

100.0

BMW (Europe) Automotive 4 $70.7B 4.3 15

$22.3B 16

75.6

IKEA (Europe) Retail 1 $30.2B 79 28

$12.5B 167 42.2

Table 3: Three brand examples


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Discussion about Superbrands

Recap on Branding

As stated in the first chapter of this thesis, branding has stemmed from ancient beliefs that were strewn

with mysticism and deity-based associations. With the lack of any scientific knowledge early humans

placed branding as a form of instilling powers onto objects in the belief that protection from evil would

result. Branding later came to be known as a form of recognition (who owned the commodity), and

whether or not the owner had any significant status within society. If the commodity were of

significance, a well-placed sentiment among users and owners would have been seen. With the spreading

of societies through conquests of regions, and increased mercantilism, branding further progressed into

recognition of place. It also came to be known as a form of identification of suppliers and distributors.

Such is the case with the Phoenicians and their pottery.

Branding has since evolved into identification and a source of emotional well-being for the consumer

and as an enhancement for businesses. Brands and their respective organizations have developed into a

source to answer needs or enhance performance. On the consumer level, brands have an emotional

holding and represent an aspect that narrows down to the human psyche. The emotion our

consciousness creates ultimately drives us. Branding has touched upon this facet and allows us to make

positive or negative associations towards the commodity. With this psychological undertone, branding

has also been identified as a means of self-expression. It has become a representation of the

individualistic personalities we all have, and the status we all attain in our lives. This sentiment sparked

interest in brand managers, and spawned the science of marketing, creating techniques that many

organizations use to captivate their targeted audience. Organizations are now using brands as a tool to

generate intrigue with buyers, and create a need to invest.

Branding has become part of our humanity and helps us to distinguish products or services rendered.

The logos or trademarks we view have created an environment that allows the perceiver to delve deeper,

recollect past experiences, and create associations that allow them to build their own image of

expectation. The experience is what brands seek to create for the user in addition to enlightening the

consumer of the product or service they will receive. This undoubtedly causes awareness and recognition

for the product but more importantly for the organization. Brands create an emotional connection that

the user values that leads to trust. In addition, it allows their organizations to be recognized as a

significant player, because it is a representation of the style of management and of corporate values. This

conveyance that is hidden away from the public eye is an all-important aspect, because it demonstrates


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an organizations capability. Through this addition of value, organizations prove to their customers that

they are competent. Brands also attempt to attain customer retention. It is cheaper and more profitable

for an organization to maintain customer relationships than gain new customers. Conveying to the buyer

that their brands can perform adeptly is the objective. It is why many organizations spend exorbitant

amounts of money on their brands to generate the needed intrigue to achieve a high return on

investment.

In essence, the abovementioned is what strong brands are capable of doing for their organizations. They

intrigue their customers first by displaying their values through their brands, and do not let their

customers down by performing appropriately through quality and reliability when answering. As a result,

it creates a reputation that spreads. Top brands successfully maintain their current customer base, while

growing through their experiences. Many of these brands have been in the market for a long time.

Through the handing down of information from past experiences they are able to gauge the

demographic and answer any needs. If their solutions do fail, they are quick to respond and find new

answers by using technology to hone in on what is faulty. The new PR tools of today allow organizations

to adapt and respond to customer demands at speeds previously unimaginable.

Searching for the Answers

In search of superbrand information, it must be formally noted there is no specific knowledge on the word

“superbrand.” Although the listed books found were specific on branding none had any explicit

information about a superbrand. Additionally, it was found that the word “superbrand” was merely used

to accentuate one book’s title. The book did not even hold any information that was specific to what a

superbrand could be. More or less it generalized how to be a strong brand and how to use marketing

campaigns to produce awareness. In fact, this topic was found repetitively in all books - how brands can

be strong and what strategies are important. This ultimately led to the belief that the researched books

on branding are manuscripts of instruction on becoming a strong brand. It is surmised then, that once

strong in its market, a brand can be called a top global brand, which equates to being a superbrand.

Interbrand Inc. and Superbrand Ltd. in addition, outwardly have the same ideologies. One firm

specifically looks at financial performance the brand creates for an organization, the other the same with

an added psychological evaluation. Although the processes of judging strong brands are different and the

end rankings may vary the results are the same. It’s just an identification of who’s who in the branding

community. Superbrands Ltd. has simply taken the term “superbrand” and used it to add value by

backing the logo with its respected and trusted rankings. Once an organization achieves the


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“Superbrand” logo, apparently “bragging rights” are attained. The same can be said about Interbrand

who also adds value by offering consultancy services, which inadvertently has created a brand for itself.

Large organizations readily turn to it for advice, and can also claim that they have the added value of

Interbrand’s help, referring to being helped by one of the best. By and large, the professionals appear to

be using top performing brands to their own advantage. Interbrand Inc. and Superbrands Ltd. have a

symbiotic relationship with their clientele. These professionals seem to brand themselves on top of the brands they

rank and add value through their awards and consultancy services. In essence, they are helping themselves while

helping others.

A Process Brands Undertake

During this search, certain characteristics were noticed that were common in today’s top global brands.

It is construed that once organizations reaches a certain level, a veritable critical mass, the perpetuation

of business becomes energized and propagates creating a larger stronger brand. An idea that is born has

to overcome the initial hurdle of capital need; that is, attain investors who are willing to take the risk in

the organization. The initial experiences (the trial and error) are valuable to the budding organization

that is constantly learning about its market environment. In time, systems become more efficient,

products and services become better researched, better manufactured, and better distributed. This allows

for growth and expansion, and causes the scale of business to gradually become larger. As the cycle

continues resources become substantial. The business continues to grow and soon the organization

seeks to expand beyond its current market borders, which is the point of critical mass. Once entering the

global market it is considered to be a dominant player, and can claim to be a “superbrand.”

Reflecting on the aforesaid has led to a generalized thought the perhaps all top brands exude the same

characteristics during growth. A general primary process has therefore been conjured. This process can

be thought of as three phases that an organization undergoes in its pursuit to be the best brand. For

simplistic reasons the three phases are depicted on the following page in Figure 8. With these phases, it

is also thought that supporting traits are needed to carry out and ensure growth for the brand and its

organization. Through competent judgments by managers, progressive innovation and efficiency are

achieved, and the organization along with its established strong brand is then seen to follow. The

supporting traits can be seen below in Figure 9.


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Figure 7: Primary phases to become a top brand and organization

Figure 8: Derived traits of strong brands

Phase 1

• An idea is born

• The idea is given to investors and initial marketing is done

• Money is received and products/services are rendered

• Initial resources are found

• Product/service is launched into the community

• Money is received

• Cycle continues until enough capital for expansion is attained

Phase 2

• The brand and company have been established

• There is recognition within the community but not on a massive scale

• Generated revenue is reinvesting into R&D and marketing

• Resources are attained

• Better products/services are produced

• Money is received from better products/services that are rendered

• Cycle continues until enough capital for expansion is achieved

Phase 3

• The brand and company are established and recognized on a massive scale; a critical mass is reached

• Reputation has been created and solidified

• Generated revenue is used to perpetuate and better the cycle of business

• Massive marketing/PR campaigns are rendered

• Financial power becomes massive

• A strong brand is born, aka a "superbrand"

Unlimited resources

• Limitless funding

Product/Service that performs

• Quality and reliability

• Established reputation

Excellent marketing

• Use of PR tools


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Proposal of a Framework

The following framework is discovered insight from the previous foray of branding literature, articles

and journals. Along with the aforementioned process, all superbrands of the world seem to have the

same characteristics. Superbrands, whether private or public, in every industry are the same in their

underlying structure. They are similar in how they operate. In a manner of speaking this seems to be

transferrable, a superbrand template of sorts. It is understood from academic research, professional consultation, and

real world observances that no “true” template exists to become a superbrand. Industries and businesses all differ.

However, it must be noted that all superbrands of the world are structured in the same manner. From this, a

generalized framework from the research has come about. The constituents of this framework are as

follows.

Superbrands must:

1. Have a lucrative financial pool ranging in the hundred millions, if not billions

2. Have more than one division which support the brand’s interest

3. Have differentiated products that support the mother brand

4. Have products that generate positive and lasting reputations that create loyalty

5. Generate awareness with the aid of technology with budgets ranging in millions, if not billions

6. Create sponsorships in arenas that are on a global scale

7. Use PR tools to create efficient streamlined processes for the creation, deployment, and management of products

8. Create lasting alliances to support business and brand

9. Be identified by prominent and reliable agencies as a strong brand

10. Generate revenue ranging in the billions that prolongs business

With this framework in mind, superbrands first and foremost must undergo the tedious process

previously noted. With time, once a critical mass is reached, the preceding framework then automatically

inserts itself naturally through the business processes the brand endures. Superbrands are seen to possess

at least nine (that is 90%), of the proposed constituents. The following demonstrates how each

mentioned brand (BMW, IKEA, and Microsoft) and the aforementioned theories correlate to the

framework.

Having a lucrative financial pool ranging in the hundred millions, if not billions is an indicator of strength and

stability. It is obvious enough to see that organizations that possess such lucrativeness have been in

business for a substantial amount of time. They have worked through the proposed process shown in

Figure 7 and have survived their industry’s gauntlet. It stands to reason that all brands that have reached

superbrand status have achieved this first constituent. Superbrands equal global brands and global


44

brands equal global organizations. With this, since organizations the world over must report their

earnings to the public, a real-world proof of the first constituent exists. This can be seen in the financial

reports of all three aforementioned companies IKEA ($29B FY10), BMW ($80B FY10), and Microsoft

($65B FY10) (Datamonitor 2010). Access to such information is readily available from any financial

website. Therefore, having a lucrative financial pool ranging in the hundred millions, if not billions holds true.

Superbrands that have more than one division which support the brand’s interest are also a fundamental aspect that

is true. Although not mentioned in any of the theory previously transcribed, it has been observed

through fiscal reports on the three superbrand examples that more than one division exists. In fact, all

superbrand corporations have more than one division that plays an important role for a having global

presence. For example, with IKEA there are two main divisions that own the company. At the top, is

the Stichting INGKA Foundation, which oversees INGKA Holding BV. Under the INGKA Holding

BV segment resides the IKEA Group which controls sub companies that are in charge of design,

production, and distribution to end consumers. Within this group resides Swedwood which is a

collection of companies that are in charge of the labor to produce IKEA’s products. IKEA of Sweden is

primarily in charge of designing the furniture, while purchasing and supplies for production are also

outsource to other companies. The logistics involved in the supply chain management again are also

subcontracted. In the end, all companies work toward delivering end products to consumers. This then

demonstrates that the second constituent that superbrands have more than one division which supports the

brand’s interest holds true.

With supporting divisions in mind, it must be noted that superbrands also have differentiated products that

support the mother brand. As stated by Aaker & Joachimsthaler (2000), strong brands must have supporting

sub-brands to create good brand identity. This practice can be seen in many industries; in particular the

software industry, where solutions for many problems exist. Microsoft offers many solutions for

business, entertainment, learning, and productivity. For business, learning, and productivity there are the

Office suites with its different variations. For personal entertainment there are XBOX and Zune MP3

player products. Microsoft also aids in education and learning through funding and school assistances.

With its vast knowledge of software it also has an accredited Microsoft Certification program, which

allows individuals to develop the skills needed to perform IT specific jobs. Therefore, it can be seen that

each segment supports the brands identity and demonstrates Microsoft’s philosophy where software can

help the world. Microsoft has differentiated products that support the mother brand.

All superbrands have products that generate positive and lasting reputations that create loyalty. Superbrand products

sustain the company’s reputation, which is an important aspect that leads to loyalty. As denoted by Gobé

(2001), along with several other academic writers previously cited, brands must portray themselves


45

appropriately in order to gain a positive association to attain a loyal customer base. Through in-field

performance, which relegates to quality, superbrand products have proven themselves and stand out.

Reputation is so important that divisions within superbrand organizations have formed. These teams are

dedicated to managing their brands. They assure that their proposed products are received warmly by

targeted demographics, and that any misnomers in portrayals are also alleviated. In 2007, BMW created a

dedicated branch called Corporate and Brand Development, where its brand can be managed more

efficiently and effectively for this reason. Here BMW assures itself and the public that they have products

that generate positive and lasting reputations that create loyalty (Ebert 2007).

Superbrand organizations use their power to generate awareness with the aid of technology with budgets ranging in

millions, if not billions. Organizations that reach superbrand status understandably have the financial

backing to create marketing campaigns that generate massive awareness, which use whatever mediums

are available. Aaker & Joachimsthaler (2000) state in their research findings that organizations must use

any means to create awareness. Today’s awareness generation commonly uses technology to implement

and propagate attention. Stripp (2008) specifically states that not using such methods is suicide for an

organization and its brand. Many superbrands harness social media and the like, along with more

traditional marketing means to reach their customers. To prove this, one can view the many articles on

Microsoft’s recent investment with facebook, which shows their intention in generating awareness

through technology. Their financial statements also show billions of dollars are used just for marketing

their software through other means. Undeniably, Microsoft generates awareness with the aid of technology with

budgets ranging in the millions, if not billions.

By generating awareness it is also seen that superbrands create sponsorships in arenas that are on a global scale.

It has been observed that superbrand organizations place themselves in major expositions that allow for

maximum exposure. Such efforts can be seen in sports venues, on televised broadcasts, and/or live

events. Not only does this assure exposure to the public, but it also allows for product demonstration

further solidifying reputation. A good example is BMW’s sponsorship in the European golf tour, where

the superbrand is the official car of the PGA Championship. In America, BMW is the official sponsor

for the USA Olympic team in the 2012 Olympics in London, England. They are known to be the official

mobility partner. In these instances, the BMW Group has created an opportunity that will generate

massive awareness. In essence, it has created sponsorships in arenas that are on a global scale.

All superbrands use PR tools to create efficient streamlined processes for the creation, deployment, and management of

products. With the advent of today’s prevalent technology, harnessing the power it provides offers an easy

channel to reach consumers. Current productivity tools allow for easy access to information for “on-the-

go” consumers who are better informed, and therefore are capable of making discernible choices. This


46

makes competition within many industries cutthroat. Superbrands are aware of this, and they place

themselves “literally” in front of their targeted users by using today’s PR tools. These tools that embrace

technology are mainly composed of the computer and the smartphone. Breakenridge (2008) specifically

speaks of the PR tools that organizations must use to portray themselves appropriately to the public. She

further elaborates that the same tools allow users to properly gauge and manage consumer behavior.

Using social feedback gives organizations a real-time feel of how consumers view their brand. This

allows for any proper reactions to sentiments with products, such as counter PR campaigns or revisions

in design in future releases. Microsoft uses this strategy to create better versions of its software. They

deploy their product, listen to user experiences through feedback analytics within its software and deploy

updates to fix problems. There exist many online forums where users can discuss Microsoft related

topics. Microsoft uses PR tools to create efficient streamlined processes for the creation, deployment, and management of

products.

Superbrands sometimes look to other brands in order to strength themselves. Organizations that

ultimately partner amongst one another create lasting alliances to support business and brand. The combination

of positive brand reputations creates a higher status for both brands. Doz & Hamel (1998) state that

alliances allow brands to learn about unknown markets. They further denote that teaming strengthens

brand foothold and presence in new markets, and also allows the transfer of existing knowledge between

parties. Moreover, Doz & Hamel (1998) also say that collaborating increases an organization’s value

proposition while avoiding any pitfalls from sudden expansion. Additionally, they state that smaller

brands who seek a global presence can also create an alliance with bigger brands who are global players.

One can readily see this in action with The BMW Group’s alliances to create a better user information

experience with cars. In August 2010 they founded the GENIVI Alliance, a conglomerate of 75 other

brands to help develop informatics such as navigation and entertainment systems for cars. This alliance

is structured to decrease time-to-market products, which ultimately decreases cost and adoption of new

technologies in new automobiles. Through this instance, BMW has created lasting alliances to support business

and brand (GENIVI Alliance 2010).

Superbrands must also be identified by prominent and reliable agencies as a strong brand. Industry competitors, as

well as, brand ranking organizations must acknowledge their presence and capability of producing stellar

products and/or services. Referring back to the previous section Case of the Superbrand, the two most

prominent brand ranking organizations of the world are Superbrands Ltd and Interbrand Inc. They

themselves are brands and are looked upon for advice in the branding industry. Interbrand and

Superbrands help organizations increase brand strength by being rated and identified. This is the case

with all three mentioned superbrands BMW, IKEA, and Microsoft, which hold top global rankings in


47

both Superbrands and Interbrand lists shown in Table 3 above. It is evident that all three superbrands

hold prestige due to their many industry adequacies and reputations. The three have been identified by

prominent and reliable agencies as a strong brand.

Lastly, it is obvious that once reaching superbrand status an organization has achieved global

recognition. It has generated revenue ranging in the billions that prolongs business. Through their trials and

tribulations within their industries, organizations have obviously attained enough revenue to sustain their

practices on a massive scale. All processes incurred have resulted in a strongpoint that allow for ease of

market movement, implementation of large-scale ideas, and prevailing propagation within markets. This

can certainly be verified through observances “on paper” and in “real life.” Their yearly fiscal reports

indicate their lucrativeness to the public, and show that they have generated revenue ranging in the billions that

prolongs business.

Checking the Framework

The three earlier identified global brands BMW, IKEA and Microsoft can be used to check the

proposed framework. A review of their respective annual fiscal reports, various databases that hold

information about the companies, and real-world observation were done for the purpose of testing.

Again, companies differ in operations, size, and industry; therefore, it is only natural that some

superbrands do not fill all constituents. The natural variations that occur within industries have created

the only observable drawback to this framework; that is, not all superbrands tested will fit. Nonetheless, if at

least nine of the constituents are met, that is 90%, it is safe to assume the brand and its organization may

be called a “superbrand.”

The following table is used for the purpose of verification to identify the constituents the three global

possess.


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Constituent Microsoft BMW IKEA

Have a lucrative financial pool ranging in the hundred millions, if

not billions X X X

Have more than one division which support the brand’s interest X X X

Have differentiated products that support the mother brand X X X

Have products that generate positive and lasting reputations that

create loyalty X X X

Generate awareness with the aid of technology with budgets ranging

in millions, if not billions X X X

Create sponsorships in arenas that are on a global scale X X X

Use PR tools to create efficient streamlined processes for the

creation, deployment, and management of products X X X

Create lasting alliances to support business and brand X X

Be identified by prominent and reliable agencies as a strong brand X X X

Generate revenue ranging in the billions that prolongs business X X X

Table 4: Checking the superbrand framework


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Conclusion

In conclusion, is a superbrand a new concept? No, it is not a new concept.

The term superbrand is just another coined term that describes a strong brand. Superbrands and their

respective organizations are the result of an idea that has reached a pinnacle many brands and their

organizations seek but never achieve. They are a culmination of various constituents that have been

competently planned and carried out. Superbrands display their organization, their beliefs and style of

management, and their intentions. Their symbolic portrayals delve deep into the human psyche and

elucidate to the beholder ideas that stretch beyond their original meaning. They show personalities and

characteristics of the owner, beliefs that they may have and loyalty. Superbrands in essence have evolved

into their current statuses by boosting human aspects through their inherent portrayals that enhance life.

Superbrands have acutely listened to their customers, and proficiently answered their needs and wants.

With this, superbrands and their organizations are seen to have:

Products that satiate a need and aid in productivity.

A product that performs.

Positive recognition among customers while creating awareness.

Communication with customers to gauge and execute products appropriately.

The financial power to achieve all objectives.

Superbrands undoubtedly satiate a need created by their customers, and aid in the productiveness that all

human beings attempt to achieve. The brands perform beyond their customers’ expectations, and

progressively create a positive psychological association. Superbrands communicate through PR tools,

marketing tactics, and clever strategies that show they are listening to their customers. The created

dialogues have given a way for improvement, and the ability for brands to adapt and further their

capacities. This communication is a key to success. With the financial power that superbrand

organizations possess, strategic campaign maneuvers are conjured and tell customers what they want to

hear by relating accordingly through the use of recognition, emotion, and identification. They

successfully create the awareness needed to make their customers create positive experiences leading to

repeated investments into the brand.

Knowing this, it is concluded that a superbrand is merely a strong brand. The “super” in superbrand is

just an adjective. Once strong in its market, a brand can be called a top global brand, which equates to being a

superbrand. Interbrand Inc. and Superbrands Ltd. with their respective professionals seem to brand themselves on

top of the brands they rank and add value through their awards and consultancy services. In essence, they are helping


50

themselves while helping others. In addition, the twenty books perused just refer towards the idea of

branding, and never state specifically what a superbrand is. There is no specific knowledge on the word

“superbrand.” Quite simply, it is just a phenomenon where a word became synonymous with an already

existent concept. It is understood from academic research, professional consultation, and real world observances that no

“true” template exists to become a superbrand. Industries and businesses all differ. However, it must be noted

that all superbrands of the world are structured conceptually in the same manner. With this, the proposed framework

in the previous section can be compared to any superbrand’s organization to see if the constituents

proposed are exemplified by its current operations. Again, if they hold over 90% (nine of the

constituents) then it is safe to assume that the organization’s brand is a superbrand.

The word superbrand is likened to the word Google, which is a company name, but has become

synonymous with searching for information. No actual meaning exists in literature for the word

“Google,” but its pervasiveness, or rather its branding, has created a meaning for itself. The same can be

said for “superbrands.” There is no actual literary meaning of the word. However, the concept is not

new and has been around for ages. The meaning behind it has become synonymous with brands that are

well known. Superbrand is just a company name, which the company has used to market itself.

Even though a lot of information was picked up along the way, it must be acknowledged that a complete

understanding of top brands, or rather superbrands, and their underpinnings will never be attained. This

is due because the world we live in is a dynamic arena where change is inevitable. To stay current with

these changes constant observations must be held. Learning therefore, be it within marketing or life

itself, is a constant process that must always be practiced.


51

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Appendix

BRAND ANALYSIS QUESTIONNAIRE

Background:

The purpose of this research is to identify the characteristics of a Superbrand. This topic will be investigated deeper by analyzing specifically how organizations manage a Superbrand through the examination of case studies focusing on various global corporations. In addition, an investigation of the constituents will be held that is displayed by top-performing brands. Through this breakdown, a suggestion of needed components will be proposed along with a theoretical statement on how an organization can become a Superbrand. This will be done by ascertaining the capital needs, what aspects to concentrate upon in a market, and by identifying any associated pitfalls. With this, an attempt will also be made to redefine what a Superbrand

is, and identify if such a name only exists as a marketing tool for promotional purposes.

Dear Participant,

I thank you personally for taking the time in answering these questions. By doing so you are helping in my research on Superbrands for my master thesis. Your expert information and experience will help explain the meaning of a Superbrand. Keep in mind, that the information I attain from you will only be used in a generalized context within my thesis. I will not specifically cite your thoughts on this matter. Please elaborate as much as possible on the answers given to avoid redundant inquiries, and send back your answers no later than December 16, 2009. A copy of my master thesis will be given to you as a thank you for the time taken to answer this questionnaire.

All the best,

Michael L. Monteclaro

Questions:

1. What is your definition of a Superbrand?


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2. Who judges these top-performing brands?

3a. Are there any characteristics needed to be judged; if so, what kind of characteristics?

3b. In order to be judged do organizations need to apply?


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4a. When being judged what is the process involved, and what aspects are looked at?


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4b. How is this data collected?

4c. Are there other sources used to gather the data?


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5. What are the 4 most important critical success factors for a brand to excel in its market?

6. Are there any other sources I can use towards my investigation of Superbrands?


58


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Figure 9: A pictorial version of the proposed process

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Master Thesis Final A4