Effective leadership doesn't just happen. You have to happen into it!

Friday, October 12, 2007

That Magical Thing Called Branding


I read an interesting piece of research news today. It seems a research was carried out in Scotland to compare the effectiveness of cheap running shoes compared with their more expensive rivals. The data which was scientifically recorded by a small back pack, apparently showed that the cheap ones are quite as effective as the expensive ones in absorbing shocks and keeping pressure away from the knees and other joints. But what actually caught my curiosity was an expect of the findings that the researchers mentioned only in passing. It seems, when asked to comment on the effectiveness of the shoes, the 43 volunteers judged each pair of shoes on very subjective terms. They can hardly see much difference between these shoes. The catch is this : The labels of these shoes were masked with tape. So, the volunteers did not know what brand (hence the price range) of the shoes they were using.

Now, I wonder if they knew the brand that they were wearing would that have changed the way they responded about each pair? Would they have given a more favourable feedback on say, Nike compared with a cheaper and unknown brand?

In all likely hood, I believe if they had known the brand, their perception would have been dramatically altered. After all that is what good branding is all about isn't it?

I am passionate about cars. To be more precise, I am passionate about how each manufacturer brand their models. Recently I noticed a Proton Satria Neo side by side to a similar looking and same in category American make and to be honest, Satria Neo looked much better. In fact it looked sturdier and solid all around. Immediately (as it often happens) my thought wondered to the branding behind each of the model. What does the Satria Neo stand for? What does its rival stand for? What image do I show if I drive a Satria Neo?

You may not realize this but Audi is actually in the same league as Merc and BMW. In Europe these brands compete with each other. In Malaysia, Audi is catching up but still peeople always look at the Merc as the signal of their arrival on the corporate/VIP scene. However, the Audi is creating an image for itself as the embodiment of 'dare to loose' , 'class', 'the hell with the known' image. If you drive a Merc you have arrived (in the traditional sense). If you drive an Audi, you have arrived trail blazing!

So, how do I arrive in a Satria Neo? I suppose Proton expects me to figure that out!

There is very little branding. As the Scotish research shows, two products may be of equal quality but then selling them is not merely about quality as it also involves perception and perception is all about branding. Why else do you think Proton Arena is doing so well in Autralia as the Jumpbuck while it is a flop on our own soil?

Ok, lets look tourism in this context. If you travel to Italy or France, you are romantic, cultured and stylish. If you travel to India, Tibet, Nepal you are spiritual, searching and soulful. If you travel to Cambodia you are adventureous. Malaysia?

See, where is the branding?