August 30, 2010 § Leave a comment
In a recent post i talked about branding, but I didn’t mention the importance of a brand
Here are some quotes and important notes about BRANDS
An interviewer once asked John Stuart (chairman of Quaker Foods) what would he drop in the business were to split up? and he answered:
If this business were split up, I would be glad to take the brands, goodwill and trademarks, and you could have all the bricks and mortar – and I would fare better than you
If you care to analyze this quote, you’ll realize that he is speaking about loosing all the plants, and distribution… does this really make any sense?
There is a case study in Venezuela about a Soda Bottling Company that went from producing one of the cola giants to the other in a couple of weeks. The deal was in August 1996 when Mr. Cisneros went from managing Pepsi (since 1940 and it’s 80% market share) to bottling Coca-Cola. It took almost 5 month for Pepsi to find a new bottling partner (Empresas Polar) but after rebuilding the distribution it manage to recover 35% of market share (now to about 45% SOM).
Pepsi didn’t recover the market share it once had (its true) but, only a great brand could have recover 35% share of market against Coca-Cola.
But, what is a brand?
“A brand is the ‘personification of a product, service, or even entire company’.”
“A brand for a company is like a reputation for a person. You earn reputation by trying to do hard things well.”
“Next to our products, the brand is the second strongest pillar for our success. It delivers the emotional added value that is very important for our customers.”
Jan-Christiaan Koenders, BMW
SO, IS COCA-COLA THIS?
NO!!!!! This is the logo, the image, the name…. Coca-Cola’s Brand is VALUE (worth 68,734 $m) and it is the number 1 valued brand of 2009.
According to Interbrand’s methodology, a Brand’s Value is measured by forecasting the brand’s revenue, which is analyzed to value the impact that the brand has in those numbers, obtaining the brand’s earnings, and then applying a “brand strength score” factor (include relevance, leadership, market position, diversification, trends, stability).
A brand’s value is “a financial representation of a business earnings due to the superior demand created for its products and services through the strength of its brand”. A link to the complete report is included at the bottom of this post.
- PEPSI-COCACOLA Case Study (producto.com – en español)
- Best Global Brands 2009 (interbrand.com)
- Coca-cola Two Liters Get a New Design (gomestic.com)
- PepsiCo Earnings Preview: On a Quest to Conquer the Snack World (dailyfinance.com)