Brand math

Some equations involved in creating sustainable and valued relationships between brands and consumers.


1. Brand Value: 
Value = Benefit / Cost


Let's not forget that value is how the consumer defines it. However, by understanding the equation of how you create value, you will give consumers a reason to consider purchasing your product. 
Consider how the equation is applied in the medical insurance industry. This is an industry where customers are anxious about the cost of cover and frustrated with the complexity of policies. In order to derive value customers want to feel they're in control; they need to understand what they're buying and at what cost. Therefore value = benefit of (control +simplicity) / cost of (premium + efforts). You can increase value by either increasing the benefit to consumers, or decreasing the cost.


2. Trusted brand status: 
Trust = fn(Consistency + honesty + value + awareness)


Before the recession, consumers were willing to gamble on new products and services. Post-recession, consumers are going back to tried-and-tested brands. Coca-Cola time and again tops the surveys as most trusted and preferred brand. How do they do it? They consistently deliver a good quality product; you know what you're getting and it's available everywhere. Their efforts in uplifting the community and promoting awareness about green issues are adding to their credibility as an honest brand with real heart. Their marketing campaigns are memorable and engage consumers on an emotional level. All of this has helped them to become one of the most recognized and liked brands in the world. It doesn't always take mega-brand status to become a trusted brand - by applying the equation, Nioxin hair products is carving out their spot as a trustworthy brand, one hair at a time. They have a compelling and credible value proposition that they consistently communicate through expert channels and the product is priced fairly for the value you get.


3. Consumer connections: 
Connections = (platform + experience + relevance) x (advocates + time)


Brands of all shapes and sizes, from all industries are facing one big challenge; to build a strong emotional connection with their consumers. Without that personal relationship their names mean very little and business will suffer. Red Bull energy drink has identified passion points in their consumers' lives and built platforms around them that have opened the door for emotional connections to be formed. They offer experiences that strengthen the Red Bull philosophy of "Giving wings to people and ideas", and are converting many consumer voices into action. Remember, every interaction with a consumer could impact your brand's relationship with several people in their social network over time.

Brand story

As consumers, we are passionate about the brands we choose because those brands help us to define ourselves, to make a statement without having to speak. The brands themselves tell a story of our values and often allow us to convey things that are often better left unsaid. Many of these brands rely on authenticity to lend legitimacy to their experience. This story of heritage and origin becomes a key component of brand value as the brand matures and evolves.

However, the actions brands take today influence our perception of the past and manage future expectations. What you do today affects how people perceive what you did yesterday.


Coke
When Coke found that it was losing ground to its arch-rival Pepsi, Coke chose to reformulate and relaunch with a “new and improved” product which turned into, what many have called, the single greatest/worse move in branding history.
The company bent to the will of an outspoken public, bringing back “Classic Coke”. Coke’s new“classic” position was so successful that many believe this was the plan all along. To which Donald R. Keough, then President of Coca-Cola, said: “Some critics will say Coca-Cola has made a marketing mistake. Some cynics say that we planned the whole thing. The truth is, we’re not that dumb, and we’re not that smart.”
The Coke bottle is a world-renowned brand signal. It’s iconic shape and feel are a mental bridge to America’s past. A time when… (you fill in the blank). Today, Coke has further reinforced its rich history with a modern, plastic interpretation of its classic glass bottle. This has helped Coke to establish a position that defines the category, making others look inauthentic.


Oreo
With over 491 billion Oreo cookies sold since they were first introduced in 1912, Oreos are the best-selling cookies of the 20th century. In 1999 they drove their number one competitor Hydrox, out of the market. This wasn’t a question of big vs. small. While Oreos are produced by Nabisco (now a division of Kraft Foods), Hydrox was owned by Sunshine Biscuits (later acquired by Keebler, now owned by Kelloggs).
Families across America “know” that Oreo is the original sandwich cookie and Hydrox was the knock-off. Yet Oreo debuted on store shelves in 1912, four years after Hydrox was introduced (1908).
Regardless of the fact that Hydrox was the better tasting (by blind taste tests), Better engineered (stood up better in milk) or the original creme-filled chocolate sandwich cookie, Hydrox is perceived to be the knockoff. Why? The company failed to leverage their brand’s heritage and tell the story of what makes Hydrox different, better and original. So, just as Kleenex, Xerox and iPod have all entered the public lexicon, Oreo is now synonymous with creme-filled chocolate sandwich cookies.

“History is the version of past events that people have decided to agree upon.”—Napoleon Bonaparte

Heritage isn’t the only path to brand authenticity. Where or how your brand is produced is also a signal of “genuine”. Above are two tales of brands that captured people’s memories with stories of heritage. One true. One false. Both authentic. Brands that tell authentic stories connect with consumers’ values and sense of self. Those that don’t, end up just another Hydrox.
Know of a brand that created authenticity or one that’s failed to leverage it? Share your thoughts.

THE POWER 100 THE WORLD'S MOST POWERFUL SPIRITS & WINE BRANDS, 2010

The Top 10 brands

Who made the biggest splash in the 2010 drinks industry...

The Power 100 is an annual research study monitoring the power of the world's leading spirits and wine brands. Now in its fifth year, The Power 100 has become an industry benchmark of performance, recognising brands which have performed well and identifying those which haven't. The unique brand ratings highlight each brand's strengths and weaknesses - providing exclusive insight into what drives the world's most powerful spirits and wine brands.

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