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The Brand: Pillar of Global Giants

The concept of the brand has undergone a seemingly rapid historical evolution. Today, smart executives have realised that brands are not just visible or emotional symbols, but rather that they define relationships with ALL key audiences, including investors and employees. And these same people have realised that brand value correlates directly to the value of the business.

Ironically enough, the evolution of the concept of the brand seems to track (very slowly) the evolution of the definitive global brand, Coca Cola. In the early 1900s Coke had already turned the Coca Cola brand into the central pillar of an immense business.

There are a multitude of stories from this era regarding the centralisation of the Coke brand. One of the more illuminating is Robert Woodruff’s drive in 1920s to standardise the product internally.

Woodruff’s method of implementation may not have been altogether friendly (he summoned his entire sales team into his office in 1926 and fired them, saying that the drink was now selling itself. He did mention, however, that he was forming a new sales department the next day, and interested parties were invited to apply for positions), but he clearly realised the fundamental importance of the Coke brand as the axis of the entire business.

When viewed in the Coke context, it seems to have taken an awfully long time for global businesses to have picked up on the central importance of the brand to business value.

The 2002 Best Practices Study, conducted and released by Prophet, an American consulting firm specialising in brand and business strategy, found that “of the 90 global corporations surveyed, only a small majority (53%) has a long-term brand strategy in place. And of that number, only 40% are ‘very’ satisfied with it.”

Today, the question has to be asked (and answered), ‘Where does the brand really belong?’

“The brand iceberg is a good analogy to draw when you’re looking to understand what a brand really is, and where it belongs,” says Janice Spark, Director of leading South African brand builders, Idea Engineers.

When viewed through the iceberg paradigm, one can start to understand the full power of the brand, and one can also begin to understand that the traditional elements that most people use to define a brand are, quite literally, just the tip of the iceberg. So yes, the company name, advertising, logo, brand identity, environments, products and services are all important parts of the iceberg. But by no means are they the only constituent parts of the brand.

“Today’s really successful companies have a brand-centric structure, with senior management teams and a workforce who live the brand values in their jobs and display their brand commitment clearly. All the central tenants of the brand iceberg model are followed, ensuring that the brand vision is the pillar of the business.”

In addition, it is vital to realise that measurement of brand value relates directly to business success.

“You have to establish the financial value that brands bring to the business,” says Spark. “Brand values and the brand philosophy have to be at the core of the business processes. This whole package has to be wrapped up by measurement of brand performance that encourages active customer, staff, partner and supplier relationships - not just awareness.”

Probably the most interesting recent example of brand centric success is that of Intron. According to a white paper produced by Michael Dunn (CEO of Prophet) and Scott Davis (Managing Partner of Prophet’s Chicago office), Intron, a Spokane based company in the USA, transformed itself from a simple meter reading company into “a provider of energy marketplace data and knowledge.”

Intron did this by shifting the positioning of the brand, and by turning Intron into a brand centric business, including full education for all employees on the nature of the brand – extending as far as tying profit share into employees’ ability to live the brand.

Intron’s CEO ascribes a large part of the massive jump in the company’s share price to the shift to a brand centric method of operating. According to Dunn and Davis’ paper, the Intron share price has leapt from a paltry $3.70 to over $32 a share.

“What truly differentiates the great businesses is that the brand belongs to everyone within the company, and brand and business success are therefore one and the same,” says Spark. “But for this to happen, upper management decision makers really have to possess the necessary vision. Locally, we are only just starting to see this happen.”

“In the case of resistance from upper management, those with the vision and understanding need to somehow move the brand into a tangible position that is clear to upper management,” Spark concludes. “This requires time, budget and a clear demonstration of Return on Investment. The tough part, however, is the sustained commitment required to make sure that an understanding of the importance of the brand is developed amongst the people who matter!”

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About Janice Spark:
With 20 years of Marketing, Sales and Advertising experience, Janice Spark has directed the marketing efforts of leading global organisations. Spark launched her career at Standard Bank in ’84 where she pioneered specialised banking packages for high-end consumers, before moving on to pioneer the concept of ‘sell thru videos’ for Gallo Home Video. Then as Marketing Director of Adcock Ingram in the late ‘80s Spark oversaw the introduction of 15 successful new brands in a three-year period, whilst achieving market leadership for the company’s hair care, skincare and household product ranges. Before co-founding Idea Engineers, Spark was the Director of Aramis South Africa where she introduced Tommy Hilfiger and DKNY to South Africa; entrenched aramis as a market leader and led Estee Lauder’s most profitable division in the international market.

About Idea Engineers:
Founded in 2002, Idea Engineers is a strategic marketing company that develops great brands and businesses. Working with clients from strategy to execution, Idea Engineers helps companies add value to their business by developing, managing, growing and protecting on of their most valuable assets: their brand. By doing this they help businesses grow market share and increase equity to become more powerful and effective in challenging marketplaces. Idea Engineers is situated in Sandton, South Africa. More information on the company is available at www.ideaengineers.co.za.