Do Business Well

Leadership first, perception second. To try to reverse this sequence is almost impossible.

What if you do everything right? What if you are the first in a new category and subsequently go on to dominate that category domestically? Then you should try to expand the market in the U.S. at the same time that you take your brand to the global market.

Coca-Cola did all of these things. But what’s next? Are there no second acts in branding history? Continue Reading »

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Amazon.com used to use the theme “Earth’s Biggest Book‑store.” No longer. They’ve changed it. The new theme is “Earth’s Biggest Selection.”

Person of the year Jeff Bezos, CEO of Amazon.com, says, “It’s very natural for a customer to wonder, can you really be the best place to buy music, books and electronics? In the physical world, the answer is almost always no. But on the Internet all the physical constraints go away.” (A sign of the times: The company recently registered “Amazoneverywhere.net as a Website name.) Continue Reading »

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If you want your customers to have a consistent experience and develop a loyal relationship with your brand, you must clearly define your organization’s communications and relationship management responsibilities. Normally, marketing is responsible for managing an email direct marketing program, but it is not the only part of your organization that will engage with customers. Customer service, support, sales, and perhaps even e-commerce groups may also communicate with your customers independently.

To avoid any confusion, I propose that if your company is communicating with thousands, perhaps even millions, of customers, you put your marketing department in charge of managing and coordinating all customer communication, regardless of where it originates, and that the “relationship czar” discussed earlier be responsible for this initiative. Marketing’s role in the engaged organization is to ensure that your company’s email communication have a consistent voice, that they are focused on servicing the customer and effectively coordinated across all points of contact. To do this requires the following: Continue Reading »

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The key criteria for building a Brand Identity are: appeal to prospects, relevance, the right personality for the market, user friendliness and the offer of an important benefit that is not currently being made by the competition.

A good brand is easily recognizable and its name must be easy to pronounce. Simplicity is the key to success. Consumers must remember it easily. This is what branding is all about: occupying the number one spot in a consumer’s mind to ensure repeat sales. Another important consideration is whether the brand name can be protected or not. Intellectual property must be registered as soon as possible and must be difficult to copy. Generic names are difficult to register (for example, The Coffee Place is a generic name whereas Joe’s Coffee Place is attached to a name and easier to protect). A good brand name cannot be copied easily (think Compaq, Intel, Coca-Cola and Nike). Continue Reading »

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Advantages of franchising for franchisees

1. The franchisee will start a tried and tested business concept that has been fully “pilot” tested. Often franchisees do not have the general business management skills or specialised knowledge needed in the proposed business activity. The franchisor owns this knowledge and has the necessary business skills, which he passes on to the franchisee.

2. The franchisor should have developed a long-term strategic business plan including a country development plan, which the franchisee will be exposed to. The franchisor’s strategic vision should provide for the growth and adaptability required for the survival of the brand. A country development plan is the geographic expansion plan that outlines the geographic areas earmarked for expansion, as well as the rate of expansion. The rollout of the franchisee’s store is therefore part of a larger expansion strategy, so the brand that the franchisee has bought into should become more valuable with time. Continue Reading »

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Spammers work hard to understand why their messages are not read and find methods to avoid being blocked. Here, legitimate e-mail marketers are much like the spammer, since they and their suppliers also need to understand what is stopping their messages getting through and identify solutions to this. There are four general points where spam or legitimate permission-based e-mail is identified, and which can stop e-mail being read by the recipient:

1. Inbox identification by the user. The simplest way that spam is identified is by the recipient; if it looks like spam from the header, it will be quickly removed using the delete button. Alternatively, recipients can report spam to their anti-spam software and, if enough people do this, there is the danger that may be added to a blacklist. Continue Reading »

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Franchising is all about working together towards a common goal. On the surface of it, this appears to be the building of the brand for mutual financial gain - what could be simpler than that? Further investigation reveals, however, that in reality, matters are a little more complex. Granted, both the franchisor and his franchisees want to build wealth for themselves and their families to enjoy. Beyond that, the franchisor and his franchisees have dreams that have the potential to take them in different directions.

Franchisors will want their brand to dominate the landscape of every city and town; their gut feel may tell them to do whatever it takes to realise this dream. Franchisees, on the other hand, are likely to be more concerned with the short-term profitability of the outlet they own. They tend to overlook the fact that it is better for them to belong to a strong network Continue Reading »

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Some companies, particularly in the financial services sector, have established new online brands rather than use the Internet to reinforce existing brands. In the UK, examples include Egg (www.egg.com), which is owned by the Prudential, and Smile (www.smile.co.uk), which is owned by the Co-operative Bank. Egg has been particularly successful in attracting customers, and enjoys high levels of brand awareness, but the attractive rates of interest that it offers to savers and the high level of advertising expenditure have resulted in a perilous financial position. The bank hopes to achieve profitability by cross-selling more lucrative products to its savings account customers. Establishing new brands for online activity offers traditional banks — which often have a rather staid image the opportunity to ’start again’ and develop a more modern style to appeal to new customer segments online. However, one drawback is the increasingly high cost of establishing an online brand as the marketplace gets ever more crowded. Another is the increasing tendency for customers to expect a choice of channels, and not be forced to conduct all their banking online. Consequently, it is rumoured that Egg is now looking to set up a physical branch network. It has also been suggested that in the early days of the Internet, the strategy of brand creation was a ’safety net’ so that if the online venture failed, the established brand would not suffer by association with it. Continue Reading »

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Knox (2000) summarizes the potential rewards associated with successful branding.

Pickton and Broderick (2001) argue that commodity-type products such as metal tubing or screws, which in the past have been perceived as ‘non-branded‘, should be considered as branded through their packaging, labelling or logos.

Companies are creating brands through the consistent use of names, logos, a form of packaging, colours, shapes, typography, short descriptions or slogans. Branding can be provided through a variety of mechanisms, such as brand names, brand logos, trade names or trade marks.

Brand name

A brand name is the part of a brand that can be spoken and which includes letters, numbers or symbols, such as Coca-Cola, VW, or Yahoo. This might be different from the legal name of the company; think, for example, of the use of initials such as AA or RAC, or numbers such as 7-Up or 3M, which have created enduring brands. Brand names can be reinforced through the use of a distinctive colour or typography. The classic example is the Coca-Cola brand name, which has a strong visual appeal and is recognized anywhere in the world through the design rather than the words. Coca-Cola is easily identifiable whether the name is written in English, Arabic, Russian or Chinese because the look is always the same. Continue Reading »

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In a strictly legal sense, every franchise agreement is entered into between a franchisor and one specific franchisee. What is frequently overlooked, however, is the fact that three other parties will be affected, to a greater or lesser extent, by every such agreement. Unless the franchise agreement enables the franchisor to exercise adequate control over the way each franchisee exercises his rights and carries out his obligations, the entire network of company-owned and franchised stores, its suppliers and its customers could suffer from the actions of one errant franchisee.

• The franchisor, having invested much time and money into the creation of the franchise package, is entitled to protect the value of the brand and ensure its continued growth.
• Other franchisees within the network, in their efforts to maximise market penetration and business results, will rely on the reputation of the brand.
• The network’s suppliers, having entered into network-wide supply agreements, will expect each member of the network to meet its respective obligations arising from the supply of goods and services. Should, for example, one franchisee habitually default on payments, the credit rating of all other members of the network could be affected.

Continue Reading »

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