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Creating a “brand hub”

The relationship between consumers and brands is fickle to say the least. British readers, imagine if you will that Kimberley-Clark has announced it will rename Andrex and kill off the puppy. American readers, try to envisage Quaker Oats doing much the same with Aunt Jemima.

So deep are our feelings about these brands that it’s actually quite shocking to think of them being so unceremoniously ditched. After years of unremittingly consistent and loyal service they occupy a special place in our hearts – so much so that they have become part of our national vernacular. We may not even buy them very often, and even if we do we’re usually receptive to a better offer from Messrs Double Velvet and Betty Crocker.

It’s undeniable however, that the deeper the feelings run, the more inclined we are to return to what we know and trust. We know we can count on that puppy, old Aunt Jemima, or one of the dozens of über brands that have become part of our popular culture.

Rising to the top

Gaining this cultural pre-eminence is something that every brand aspires to. That’s not to say that it needs to be bought by everybody, but rather that it becomes de facto within its market or niche, recognised by customers and non-customers alike for being not necessarily the best, but the ‘one true choice’. This level of renown takes years to achieve, but in addition to the usual marketing communications tactics, there are things that brand owners can do to accelerate the process.

Italian food manufacturer, Barilla, has created the Academia Barilla - an institution dedicated to the preservation and education of real Italian cuisine. The company has taken on a cause and committed a considerable investment to it. The Academia is a complete brand experience. Located in Parma, it features a huge kitchen, a 90-seat demonstration theatre, luxury hotel and a 6,500 volume gastronomic library. It targets audiences in the US to visit the centre to take part in food courses and sells its own special line of foods.

Barilla has made a serious commitment with the Academia, one that works on so many different levels:

1. It gives the brand a cause to get behind. Barilla clearly states it doesn't regard spaghetti and meatballs as Italian food and wants to protect the integrity of real Italian cuisine
2. It provides a focus point for the culture of the brand - a physical location for the cause
3. It allows the brand to introduce premium line extensions
4. It presents the brand as a thought leader
5. Barilla's most important customers can be entertained and educated at the Academia – and return home as brand evangelists

Land Rover has sought to cement its place as the premier off-roading brand through its nine UK-based Experience centres. Owners and prospective buyers can enjoy a great day out getting to grips with 4x4 driving, tutored by Land Rover trainers. The centres are also marketed to US buyers as holiday experiences and both markets are offered off-road driving holidays to more extreme terrain locations, such as Moab in Utah, South Africa and Namibia. Though only a minority of Land Rover buyers regularly use their vehicle off-road, the Experience centres and holidays enable the owners to buy into the off-roading lifestyle and its spirit of adventure. It makes real the notion of the company’s current advertising slogan, ‘Go Beyond’.

Other car makers have also developed centres to enable their brands to take on a deeper meaning and higher status. GM is currently building a Saab brand centre in Sweden. This will house designers, engineers and marketers who will collaborate to build and strengthen the Saab brand worldwide. Audi has set up the Audi Design Foundation, an independent charity that encourages design talent in young people. The stated aim of the charity is to spearhead innovation, a philosophy rooted in the famous Audi slogan ‘Vorsprung durch Technik’ (advancement through technology).

It’s hard to avoid mentioning Disneyland as perhaps the finest example of a brand personified. Sony  has mirrored this immersive experience on a smaller scale with Metreon, a complex in central San Francisco that brings the firm’s technology and entertainment divisions together to tempt visitors with a range of theme park style entertainment experiences, giant cinemas and a technology showcase.

Brand Hubs

The various centres, showcases, theme parks and seats of learning described here all perform the same purpose; they are “brand hubs” – a beacon and transmitter for the culture of a brand and its values. Within a managed and artificial setting, these values can be espoused without the diluting effects of competition or life’s general distractions. The hub is a unaldulterated opinion leader, influencing visiting consumers who are then recruited to the cause to become brand missionaries, spreading the word to the wider world.

Though the examples given here undoubtedly required major financial investment, brand hubs are not, and need not be, the preserve of large corporations. All a brand needs to develop a hub is some sort of focal point – something made all the easier by the Internet and email. And real events, such as roadshows or seminars, provide opportunities to bring the community together beyond the virtual world. The secret is a having the long term view that permits the sustained input of resources. Funding is only part of this, and indeed not the most important part. For a brand hub to be successful the vital ingredients are time, initiative and tenacity. Think of what it takes to create a community sports or social club and you’ll be on the right lines.

Driving back across the Atlantic?

Most people who know me, know that I’m a bit of a car fan (to put it mildly). I’m especially keen on British cars, both old and new – the MG pictured here is my own, one of the last produced under British ownership. For those like me, the news that the UK’s last mass-market car manufacturer, MG Rover, has been sold to Chinese carmaker Nanjing Automobile comes as somewhat of a relief. Yes, it’s a Chinese takeaway, but at least one famous British marque may yet live to drive another day.

Prior to the collapse of MG Rover and the Chinese buyout, there had been plans to bring the company’s products back to the US. The Rover brand was an unlikely candidate; sold under the name of Sterling in the mid 1980s, it was killed off by poor marketing and product quality. You can read a short history here.

MG, on the other hand, is still held in high regard by many American car fans. As The New York Times recently reported, “For generations of American enthusiasts, the stylish and fun-to-drive MG was the epitome of British sports cars, its quirks offset by an abundance of charm and, well, sportiness. MG's success, to a great extent, was made in the United States. G.I.'s returning from World War II brought home a fondness for things British, including the cars.” Read the full article here.

Now that Nanjing is in the driving seat the future for MG in the US is unclear, but there’s no doubting Chinese’ ambition. Nanjing, along with other Chinese carmakers (such as SAIC, which had also tried to buy MG Rover), is desperate to gain a foothold in international markets and establish its own brand identity (the company currently builds Fiats under licence). The Chinese government is equally keen to see its industries take on an international presence, as SwelledHead has noted previously. 

In car manufacturing, brand heritage is particularly important in winning sales. It’s taken Toyota many years of sustained marketing and consistently good products to win some recognition for its Lexus brand, yet it’s still not held in quite the same regard as Mercedes Benz or BMW. So don’t expect Nanjing to come out with anything sounding remotely Chinese; in its purchase of MG Rover the company clearly understands the importance of brand equity. With a strong reputation throughout Europe, and great potential in the US, a revival of MG could well be Nanjing’s ticket to the world stage. Some exciting designs have already been published by the company to whet buyers' appetites (click here to see others in addition to the one pictured alongside).

An interesting aside here; it has been reported that Nanjing intends to use the MG Rover’s long defunct Austin brand for its products within China. The marque is workaday and sedentary compared to racy MG, but this suits the value and comfort bias of the Chinese market. It will be interesting to see how Nanjing markets this venerable British brand in its homeland.

Will Reebok stay 'British'?

Why would a US company choose to identify itself as British? Seems like a strange thing to do for any company, but even more so when you realise that I'm talking about America's number 2 sports brand, Reebok.

At one time Reebok was British, but even though the brand was acquired by US interests decades ago it continues to maintain its UK identity through the Union Jack flag on its packaging and on the label of some of its shoes.

I can think of several reasons why this might be. Heritage is a core and highly prized brand value; the Reebok website talks about British roots and never even mentions the change to US ownership. But is it simply to differentiate from the competition, or to tap into Americans’ anglophile streak, or maybe due to the perceived quality of British footwear (which I understand is prevalent in the US)?

With adidas-Salomon poised to take over Reebok, it will be interesting to see if the identity is kept as the new owners attempt to gain market share from the number 1 sports brand in the US, Nike. In such a patriotic market, could Britishness become a barrier to chasing the top slot?

(In an industry where image matters more than anything, analysts are unsure about whether the Reebok and Adidas brands will complement or hinder each other. Read more about this at BBC News Online.)