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Archive for May, 2009

Building brands for start-ups

Thursday, May 14th, 2009

I’ve just reread the late Paul Arden’s  ’It’s Not How Good You Are, It’s How Good You Want To Be’. It’s a gem of a little book that uses the creative processes of good advertising as a metaphor for business practice. Rather like the way that Machiavelli’s The Prince is written about power and government but is used as a guide to management.

As executive creative director of Saatchi and Saatchi, and I quote Dave Trott writing in The Independent newspaper, “Arden was the ringmaster behind the whole creative circus that saw British Airways become ‘The World’s Favourite Airline’ The Independent become the new intelligentsia’s favourite newspaper, Margaret Thatcher the nation’s favourite leader and Silk Cut their favourite fag (English slang for a cigarette for any American readers).”

One fascinating extract from the book in particular got me thinking about the strategy, positioning and marketing of brands for business start-ups. And how it’s essential when developing a brand from the beginning, from a blank canvass so to speak, to have a clear, simple focus and vision.

“When Charles Saatchi started his ad agency it was regarded as a creative boutique. His brief for the company stationery was to make it look like a bank (about fifteen years later they tried to buy one bank).

He also invested a third of his capital in a full-page advertisement in The Times.

The effect was to make his creative boutique appear an established company.”

A simple, clear brand strategy with a big impact marcoms activity to help start making the brand vision a reality. But what else would you expect from Saatchi and Arden?

The Mini brand and The Italian Job.

Wednesday, May 13th, 2009

the italian job3 The Mini brand and The Italian Job.

Two important dates this year for the Mini, Britain’s most successful car of all time that influenced European car production for at least two decades.

One - the 50th birthday of Alec Issigonis’ designed Morris Mini Minor and the Austin Seven. Two - the 40th birthday of the seminal film The Italian Job, starring Michael Caine and the Mini Cooper S.

According to Peter Collinson, the film’s director, British Motor Corporation (BMC), who manufactured the car, were not completely committed to the film project at all. This is clearly demonstrated by the fact that they offered the filmmakers just three Mini Coopers. The production company had to buy the remaining 25 needed for filming, albeit at trade price. They clearly hadn’t recognised the benefits the film could bring to the brand.

Fiat, by contrast, understood the commercial marketing potential of the film straight away. They offered as many Fiats, and limited Ferraris the production company needed, plus cash of $50,000. The producers turned down their generous offer however as it would have meant replacing the Copper S with the Fiat 500, missing the point of the film, somewhat.

BMC’s management seemed unaware of the value of the opportunity at the time – a full length commercial for the Mini brand. In contrast, BMW the maker’s of the New Mini, understood the opportunity and supplied unlimited cars for the remake of the film in 2004. They also gave some financial support. The film was a critical and financial success, grossing over $170 million worldwide. That’s quite an audience for the Mini brand, which prospers under BMW.

As Oscar Wilde commented,  “a cynic is a man who knows the price of everything and the value of nothing”. 

Google is now a $100 billion brand. How many noughts is that?

Friday, May 1st, 2009

Google, became the world’s first $100 billion brand this week according to a report to a business analysis report by BrandZ. While studying the paper, we were all struck by the number of technology brands in the top 20. The power of the brand in the technology sector is stronger than ever and as important as ever. Especially in today’s economic climate, where the brand can help see businesses through difficult times. 

As everyone knows Google was named as a misspelling of Googol - the number one with 100 noughts after it. So, even at 100 billion, the brand has quite a few noughts to collect before it reaches parity with its parent!

Top twenty most valuable brands 2009 in $M:

Google - 100,039Microsoft - 76,249; Coca-Cola  - 67,625; IBM - 66,622; McDonalds- 66,575; Apple - 66,113; China Mobile - 61,283; General Electric - 59,793; Vodafone 53,727; Marlboro 49,460; Wal-Mart 41,083; ICBC 38,056; Nokia 35,163; Toyota 29,907; UPS 27,842; Blackberry 27,478; HP  26,745; BMW 23,948; SAP 23,615; Disney 23,110