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The CEO Role in Building Brand Equity

CEOFrom the Business Times of Malaysia, in a story on the importance of CEO leadership in brand building:

…CEOs are part of a company’s brand equity… A dull CEO will give the company a dull image and a vibrant CEO will invariably give the company a vibrant image.

While CEO leadership is crucial to building the value of any brand, whether a CEO is dull or vibrant is NOT a factor.

Why? Hewlett-Packard offers a good example. The H-P Board of Directors would likely tell you their “dull” CEO, compared to what many would characterize as his vibrant predecessor, seems to be doing quite well, thank you. The financial markets agree, according to The Wall Street Journal.

As H-P’s CEO demonstrates, focus, rather than vibrancy, is the the most important attribute for brand success.

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Blink

Blink coverOne of the most thoughtful reads we have come across is Malcolm Gladwell’s book Blink. For those, like us, who are Gladwell fans, you know he is also the author of The Tipping Point.

Blink is about thinking that occurs in the blink of an eye, using the same mental shorthand at play with effective branding. As described on Mr. Gladwell’s website:

“When you meet someone for the first time, or walk into a house you are thinking of buying, or read the first few sentences of a book, your mind takes about two seconds to jump to a series of conclusions. Well, Blink is a book about those two seconds…”

We often say that whether a product, a university, a nonprofit, a Fortune 500, or a tourist destination, each has all of a few seconds to convince a prospect to invest their time in listening to you further, and how an audience thin-slices the information you offer.

For more about thin-slicing and rapid cognition, grab this excellent book.

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The Baltimore Pile Up

Don’t say we didn’t warn you.

Now they’ve done it.

Really done it. Made the city of Baltimore instantly memorable. As an example of what not to do in taking a branding effort full of initial promise and devolving it into a slogan and logo game. When this sort of thing happens, and we see it far too often, this is the predictable, and forgettable, result:

Baltimore Logo

Let’s see, there’s a dinosaur, a shark, a bird, coffee, food, sailing, crab, shopping, a ballcap and music all piled up into Baltimore’s new visual identity.

Reminds us of the old saying, when you stand for everything, you stand for nothing.

But here’s the clincher; Baltimore’s new brand promise:

Our brand promise is simple. Baltimore is for people who like the excitement and vibrancy of a big city but don’t like the stress, preparation and intensity that big city travel often entails. Quick: What other city offers travelers such an uncomplicated and beautiful way to take in a major urban experience?

How about San Diego? Or Malibu? Or Austin? Or Santa Fe? Or Kansas City? Or Scottsdale? Or Montreal? Or…well, you get the idea.

Baltimore’s does not answer the question crucial to any successful brand campaign; the one implicitly asked by each tourist Baltimore or any other destination seeks to attract, Why should I care about you? Unless the question is answered effectively, in an instant, with the answer demonstrated rather than explained, Baltimore’s dollars are wasted.

But, what did Baltimore expect from the same firm that gave the world ¡MADRID! with exclamation marks for emphasis, and pawned it off as a brand?

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Brand New Etisalat

Etisalat, the UAE based telecom, announced a rework of its visual identity in support of the company’s brand. Some weeks ago we commented on the branding effort of an Etisalat competitor, du.

Etisalat 2006 LogoIn this press report, Etisalat’s CEO explains the new identity:

“We have a stated aim of being among the top 20 telecom operators in the world by 2010. We are entering new markets across the world and what you see from today onwards is not just a change of logo, but a significant shift at the core of the Corporation and a new direction for Etisalat as a whole.”

The new identity reflects Etisalat’s values of transparency, optimism, openness, simplicity and reliability. The green colour in the logo signifies life, growth and renewal. Green is the national colour of the UAE, and Etisalat has a long and close association with its home nation- the UAE.

“By undergoing a culture shift at every level, we will establish ourselves as a truly global telecom operator, a true ambassador of the UAE success story in the international market.”

Etisalat’s CEO offers thinking important to Etisalat leadership and insiders we are sure. But what Etisalat thinks is far less important than what consumers may think.

So, rather than listen to us, tell us what you think.

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Branding Baltimore

Baltimore SealAccording to the Baltimore Sun, “nine months and half a million dollars later Baltimore has a new slogan:”

Drumroll, please: “Baltimore - Get In On It.”

The preposition-rich slogan is set to be announced…as the centerpiece of Charm City’s new effort to sell itself to tourists and visitors, according to sources familiar with the lengthy and secretive process…

…[T]he Baltimore Area Convention and Visitors Association has submitted four applications to the U.S. Patent and Trademark Office to secure use of the phrase…

…[S]ome of Baltimore’s previous slogan attempts [include] - “The City That Reads,” “The Greatest City in America” and “Charm City.”

…Landor Associates, was paid $500,000 to produce [the new brand] over the past nine months…

The city picked a respected and experienced brand-builder in Landor. The San Francisco-based firm has come up with slogans for such locations as Madrid, Spain; Florida; and Hong Kong…

Not promising for Baltimore on a number of levels. First, Get In On It reminds us of Wichita’s inane We Got The Goods, and Wyandotte County’s even worse The Dot’s Got It.

Second, Baltimore selected a firm well known for creating cheerleading such as Hong Kong - Asia’s World City, Madrid with Focused Passion and for whom the firm developed a flag, and Cincinnati - All Together Surprising, for whom a flag was also created. But cheerleading is not branding.

Neither the Baltimore, Madrid, Hong Kong, or Cincinnati attempts at rebranding answer the question crucial to any successful brand campaign; the one asked by each tourist Baltimore or any other destination seeks to attract, and this is, Why should we care about you? Unless the question is answered effectively, in an instant, Baltimore’s dollars will be wasted.

One Baltimore City Councilwoman reacts, “I don’t associate anything Baltimore to it.”

She’s right.

Get In On It could just as easily be used for most any American or international city; Get In On It - Norfolk, Get In On It -Budapest, Get In On It - Moscow. And because the phrase is so easily transferable, it is worthless as a branding tool needed to set Baltimore apart from ANY other tourism destination.

One view sums it up well. Baltimore native, filmaker John Waters, wraps this bow around Get In On It:

“…What they’re saying is, come celebrate real estate porn. You know, when people talk about how much their house cost at parties.”

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Utah Levitates Their Brand

Utah logo

The word earlier this year had the Utah Office of Tourism working on a new brand. Utah announces the result in this press release:

Utah’s new “Life Elevated” brand was officially launched in Salt Lake City…culminating a seven-and-a-half month effort…

“The new slogan captures the essence of Utah because it embodies the heart and soul of our state,” says Utah Governor Jon M. Huntsman, Jr. “Our quality of life and growing business environment are second to none.”

“Our new tagline not only captures the essence and diversity of Utah, but it can also be used to promote business, arts and culture,” says Leigh von der Esch, managing director of the Utah Office of Tourism…

“The new brand voice of Utah is a reflection of all the people, past and present, who have come here to seek a richer, fuller life; to seek freedom and peace; to seek quiet and solitude; and to let the majesty and grandeur of the place shape their own independent aspirations,” states the branding platform. “You come to Utah to see; you leave with new eyes. You see vistas like nowhere else on the planet. You see desert scapes that are haunting. You walk in footsteps of ancient civilizations and follow paths cut by weather and the forces of nature. The result: your emotions are stirred, your senses are lifted. You soar. Your spirits rise. Your life is changed. You are elevated.”

One reaction is offered in this commentary from the Ogden Standard-Examiner:

Here’s the deal: If you have to explain a slogan, you’ve screwed up and have to go back to the drawing board. Just watch how much defensive explaining there is going to be for “Life elevated.”

We agree.

Advertising is explaining. Branding is demonstrating.

This difference is considerable in weighing the effectiveness of the Utah campaign.

One commonly used advertising technique is to rely upon an adulatory claim, such as We Are Better, We Offer More, We Cost Less. Anyone can make an adulatory claim. And, anyone can top the last one. Which make such advertising claims useless for effective branding.

The more a brand relies upon an adulatory message, the higher the advertising expense.

Of far more consequence to Utah, an advertising message will never separate Utah from other tourist options. It is that separation, that key point of difference from ALL other places that the audience must hear to take action.

Branding uncovers and demonstrates that difference.

Utah misses a golden opportunity to uncover their one unique, authentic, engaging difference, setting the state apart from ANY tourism destination. Had they done that, Utah’s message would become irresistible, rather than setting themselves up for the large year-over-year advertising spends of a Fortune 500 with little hope of success.

Instead Utah has developed a banal advertising claim, similar to those of Wisconsin - Like No Place On Earth, Maryland - More Than You Can Imagine, and Colorado - Enter A Higher State, rather than an authentic claim never before heard, such as What Happens Here Stays Here for Las Vegas, or It’s Like A Whole Other Country for Texas.

What is it about Utah that separates the Utah experience from other tourism alternatives? How does Utah fulfill a passion not satisfied elsewhere? Why should we care about Utah? The new campaign fails to provide compelling answers. But these are the questions a good brand strategy should instantly answer, within seconds.

But then, that’s the difference between advertising and branding.

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San Diego Tourism Campaign ahhhhhhhSleep

San Diego seeks to position itself as a top of mind tourist attraction. The story from the San Diego Union-Tribune:

San Diego logoSan Diego has always been known for its sandy beaches and sunny weather.

But that can be said for any number of Southern California cities.

So to further distinguish itself in the increasingly competitive tourism market, the San Diego Convention & Visitors Bureau [CVB] is launching a branding campaign…

The new focus is that San Diego is the place for “active relaxation” and provides “365 days of ahhhhhhh.”

While the new branding ads have been on heavy rotation on national cable channels such as CNN, Bravo, E! and VH-1, Mayor Jerry Sanders is…fulfilling his campaign promise to be a cheerleader for important industries such as tourism…

[The Mayor’s spokesman] said the new spots work because they play on San Diego’s many strengths, with images that evoke all that San Diego has to offer.

“It’s just as easy to stop in Santa Barbara as it is in Orange County as it is in San Diego,” he said. “These spots clearly articulate how San Diego is different from the rest of Southern California.”

No, and unfortunately for the good citizens of San Diego, they don’t.

This is an advertising campaign, rather than the launch of a new brand strategy. The reason is the new campaign relies upon messaging and imagery that could just as easily apply to any number of vacation destinations, whether or not in Southern California. “365 days of ahhhhhhh” exemplifies an adulatory message, serving as a cheerleading call to the Mayor’s office and officials of the CVB because the message is so darn positive and reinforces the perception the city has of itself. The problem, however, is that each of these insiders is already convinced - they are paid to pay attention - while the audience they seek to influence is not. Instead, that audience has to pay, literally, when they pay attention – they pay with their time and mental effort, neither of which they are likely to invest when a brand shouts in self-flattery.

San Diego misses the opportunity to point to their unique difference, one authentic and engaging setting San Diego apart from ANY tourism destination. If they had done that, San Diego’s message would become unforgetable rather than drifting into the white noise of contemporary culture, requiring far more than a $2.9 million ad spend in an attempt to drive tourist traffic. But then, that’s the difference between advertising vs. branding.

Kansas SealSan Diego’s recalls the Ahh Kansas! campaign to encourage tourism in Kansas some two decades ago. But that’s another story.

San Diego says their campaign will create some 66 million gross impressions. For this quickly forgettable campaign, 66 million will not be nearly enough.

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Sexy Brand Equity

Three B-school professors from Stanford, Korea University, and Yonsei University, developed a method of calculating brand equity growth based on investment in brand strategy.

According to this report from Stanford University, the three correctly point to a mistake commonly made among those confusing branding with, for example, the corporate sales function: “Having a better product or a larger sales force is not brand equity.”

The report goes on to say:

Simple brand awareness is one source of brand equity. “If you can get your name to pop up in people’s minds when they think of the product category, you’ve won a big part of the battle.”

Exactly.

Which is why in ANY branding or rebranding project it is crucial to focus on the brand tip of the spear, as discussed previously on these pages. Only through awareness is it possible to engage a prospect in conversation.

Great brand strategy in and of itself creates awareness without, for example, advertising. Skeptical? Just ask Amazon. Or Google. Or Flickr. As each will tell you, brand awareness, and profit growth, IS mighty sexy.

You can read more in “An Approach to the Measurement, Analysis, and Prediction of Brand Equity and its Sources,” published in the September 2005 issue of Management Science.

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