Brand Legacy: What’s Your Next Move?

Bill Nissim

The fourth quarter is the planning season, a time for developing next year’s marketing plan. Although we often aspire to make dramatic changes in 2006, the final version of our plan typically mirrors remnants from the previous year. In some instances, we feel a sense of obligation to complete unfinished business or to carry forward those past initiatives that delivered positive results. These cumulative efforts, whether consciously or unconsciously, help to solidify the basis of your organization’s Brand Legacy. Why do you suppose this is important?

My neighbor owned a local Italian restaurant; they served authentic food and were especially well known for their mouth-watering pizzas. Each night of the week they were busy with people standing in line for a table. Their Brand Legacy was a combination of Mama’s old fashion recipes (she was from Sicily) and the restaurant’s interior design which resembled a comfortable Italian home. Soon Roundtable, Domino’s, and an assortment of Pizza firms inundated the local area and offered speed of service over authenticity. Feeling the pressure of competition, Mama’s strayed from her winning brand proposition (traditional Italian food) to mimic the competition. Today, the once time-honored cuisine and Sicilian ambiance (experience) has been replaced with video games and a service counter. Any remnant of Mama’s legacy has disappeared and so with it, a differentiated brand.

What exactly is a Brand Legacy? I searched the American Marketing Association’s “Dictionary of Marketing Terms” (marketingpower.com), Google, and Yahoo and found no such official term. As a result, I’ve coined the term and have provided a definition which suggests that the foundations of your brand can have an impact on your current brand strategy.

Brand Legacy Defined:
A Brand Legacy begins from a point of origin (core idea) and considers historic message layering to derive a current perception as it pertains to your target audience.

All brands possess a starting point (like a cornerstone of a building) and each additional “brick” adds to the ultimate shape of the building. Think back to 1984. Apple produced a commercial that ran only once in which a female runner sped through a crowd of clones to launch a hammer at the screen of “Big Brother.” The message from Apple – we’re different!

Apple’s many innovations both support and validate the initial core idea made in 1984. These include application icons on a desktop (verses MSDOS prompts), multi-colored desktop computers, the first commercially available mouse, and innovative software applications (Quick Time). Despite a few bumps in the road (Newton, for example), Apple has stayed true to their Brand Legacy. Recent product offerings such as the iPod (Mini, Shuffle, and Nano) reinforce this core idea to their constituency.

Another example - if I said VW, you would respond with…? The origin of VW was the “Beetle” brand and spoke to a specific audience (the people’s car). Although VW pursued a myriad of vehicle designs and brand offerings (The Thing, Passat, Cabrio, Golf, Jetta, etc.) since its introduction in the 1950’s, the number of new car sales in North American shrank from a half-million cars to only 40,000 units by 1990. When VW decided to resurrect the Beetle, sales took off, it helped bolster increases in all other models, and VW produced 425,000 units by the turn of the century. In this case, the legacy (Beetle) not only enhanced the VW brand, in many ways, it was the brand.

During a recent speaking engagement, I wanted to demonstrate to the audience the power of a Brand Legacy. My visual presentation displayed the United Airlines™ (UAL) logo on screen and I asked the audience to tell me the company’s by-line (sometime referred to as a tag-line). Most hands shot high in the air and one participant yelled out “Fly the Friendly Skies.” I alluded that UAL had made a change(s) and asked for the current theme. The room fell silent. I then displayed the 1997 by-line “Rising” and in 2004, UAL’s unveiling of “It’s Time to Fly” campaign. As with this audience, the flying public in general has a right to be confused – during a recent flight on UAL, the safety video played the familiar Rhapsody in Blue piano piece (auditory reminder of the past) and even used the original slogan at the end of the video. Is it the “Friendly Skies” or “Time to Fly?” I’m not sure?

UAL once served (legacy) as a moniker for an elegant, professional, and friendly airline. As a 1K or 100,000 mileage flyer, I was so enamored by their service and offerings in the early 1990’s that I only flew UAL and was extremely brand loyal. By 1997, they tried to enhance the business traveler’s mindset regarding customer service through a new by-line titled “Rising.” Next, they introduced United Express (aimed at discount travel) on many routes and my fierce devotion began to wane. Since then, they’ve again changed their by-line to “Time to Fly,” cut services, rolled-out “Ted,” and reduced the mileage program benefits. At this point, they are following the same path that Mama took with her Italian eatery.

With the Brand Legacy definition and a few examples in hand, let’s return to the original question posed – what is the next move as it pertains to YOUR Brand Legacy? To plan these moves, we need to start with your “core idea.” From there, we can begin to map a future direction.

Core Idea:
As mentioned in my Brand Legacy definition, the final summation a consumer (whether B2B or B2C) extracts from your brand is a core idea. A core idea is a word or thought that encompasses all facets of your brand. Let’s try a few: Hershey’s™ = chocolate; Quaker Oats™ = oatmeal; Chevron™ = gasoline; IBM™ = computers; Macy’s™ = department store; Hollywood = movies.

We practice the use of these “core ideas” everyday to aid us with our consumption practices. If we are hungry, we mentally sort through all the brands available and select one that closely resembles an ideal core brand. Every time you make a choice, there resides a reference point or origin from which you base your purchasing criteria.

A noted Harvard Professor and author, Dr. Clayton Christenson, phrased it another way…”the functional, emotional, and social dimensions of the jobs that customers need to get done constitute the circumstances in which they buy” (Innovators Solution, 2002).

Let’s expand upon this Core Idea concept to understand the dimensions of choice. A core idea operates on three distinct levels. The “Brand Radar” depicted below may be used to visually demonstrate these differences.

Core Brand:
This represents the true or original core idea. The constituents of the core possess something that can’t be substituted.

Affiliate Brand:
Although closely associated with the core idea, this surrounding area represents a close approximation or facsimile.

Periphery Brand:
This represents a distant offering that maintains some resemblance to the original core idea.

We can apply these three levels by viewing, for example, the habits of devout coffee drinkers. First, we need to narrow the target audience down to those consumers who “buy-on-the-run” verses “make their own” coffee. The habits of our “mobile” consumers can be observed at any coffee house. Their profile resembles the following – always in a rush, have something specific in mind, and demand consistency/quality. Whether “walk-in” or “drive-through”, these people don’t have time to relax and enjoy the ambiance of the coffee house.

For this particular target audience, they have a set pattern or behavior. In their minds, only the core brand will do. I’m one of those “mobile people.” I see the same faces at Starbucks™ each morning, at the same time, ordering roughly the same products. I took the opportunity to ask different patrons why they stopped there each morning. The resounding response was “I love Starbuck Coffee!” When I suggested Dietrich’s (affiliate brand) down the street, the variety of contorted looks ranged from confusion to “you’re crazy.” I’m sure if I visited with the Dietrich’s crowd, I would garner the same response towards Starbucks™. The point here – we strive for the original whenever possible. As a brand manager, this type of response is exactly what you want out of your patrons.

Imagine the following scenario - you’re traveling in another city and the concierge at your hotel hasn’t the faintest clue where to find a Starbucks™. Although your profile remains the same (mobile consumers), we instinctively broaden our brand acceptability to those products/services that are adjacent to the core. An Affiliate brand for the mobile consumer could include other coffee houses that share the same attributes as the original. Depending on the city, this subset may include Dietrich’s, Seattle’s Best, Caribou, or any facsimile of the original. I was in Minneapolis recently and confronted with the same dilemma. Fortunately, my friend directed me to the nearest Caribou Coffee house (aesthetics are very similar – design, ambiance, taste, etc.) and my expectations were met (to a degree).

Although you’ve gotten the idea by now, it goes without saying that the Periphery brand has the lowest ranking and these brands are purchased in the absence of no other choice. These offerings include Donut shops, mom and pop stores, and the mart area at gas stations. Believe it or not, all of these venues promote their Periphery brands which are derived from the core brand. Are you not convinced? Just look at the display signs and designs (colors, visual images, etc.) used on the foam cups and the similar brand names they use. They all, in one way or another, resemble the core idea.

Your legacy:
When I was a child, we use to play on a hill that was carved away by a bulldozer. The bulldozer uncovered layers of strata or sedimentary layers that had accumulated over thousands of years. As we dug through this hillside, it was apparent that the top soil looked very different than what was beneath. The same can be said for many companies (brands) today.

Let’s consider McDonalds™. The core idea of this fast-food restaurant was hamburgers, fries, and shakes at affordable prices and quick service. The first facility was built in 1940 and grew as a franchise business. By 1957, a motto was created that permeated throughout the nearly 100 stores: Quality, Service, Cleanliness and Value (Q.S.C. & V.) As history records it, it’s safe to say the core idea was: McDonalds™ = Hamburgers

Fast-forward to 2005. After many decades of advertising layering, promotions, slogans, and jingles, what does McDonalds™ = today? I’m not exactly sure. Over the years, they’ve introduced breakfast items, ribs and steak sandwiches, burgers for grown-ups, healthy meals (variety of salads), and specialty desserts. Just like the sedimentary hillside we used to play on, I know somewhere in those layers of messaging still resides a basic hamburger. Have they drifted too far from the core idea?

Have you heard of In-n-Out Burgers? If you ever visit California, Nevada, or Arizona, you’ll likely find one just off the freeway. What is their brand legacy? Hamburgers! Even their jingle stays true to the core: In-n-Out, In-n-Out, that’s what a hamburger is all about! No confusion here.

What about your brand legacy? Let’s start with your point of origin. If someone asked 10 people in your organization to answer the following equation, would the answers be the same?

Your company’s core idea = _____________

How did the answers stack up? Were they similar or vastly different? No matter what business you are in, you should be remembered for one thing or idea. The next obvious question should be what business are you in today? If you’re past (point of origin) and present (perception) do not match, then its time to re-examine your Brand Legacy and analyze what that means.

At this point, you have one of three strategic choices. Depending on the landscape of your industry or business, your organization may ________ your Brand Legacy:

1) Embrace
2) Discard
3) Re-invent

Embrace:
Let’s look at a few organizations that have embraced their Brand Legacy. Both VW’s Beetle and Ford’s Mustang have returned to their “roots” and leveraged the heritage of their core idea. In effect, they took the original car concept and modernized the design to include conveniences and amenities that the buying public would demand. The Brand Legacy’s instilled in the Beetle and Mustang are more than just names or symbols, they represent a legend or storyline that consumers can follow. Since the “shell” or chassis resembles the original, this visual perception was enough to prompt a purchase.

Discard:
In 1984, Integrated Electronics Co. (later known as Intel) produced DRAM or dynamic random access memory chips by the millions and was their main source of income. The onslaught of Japanese companies (Fujitsu, Hitachi, NEC, and Toshiba) invaded this market space and proved to be more efficient (80% - 90% yield rates) compared to Intel’s success rate of 50% to 80%. By the mid eighties, Intel was losing market share due to low prices and the “dumping of chips” into North America. Andy Grove (Intel’s CEO) made a tough decision– discard the manufacturing of DRAM chips and focus all of their energy and efforts on the development of microprocessors. Following Moore’s Law of doubling power and halving costs every eighteen months, Intel transformed itself from a marginally profitable commodity memory chip maker into the standard (1989) processor that drove all the worlds’ computers. The 1990 “Intel Inside” campaign in affect solidified their new core brand position.

Reinvent:
What comes to mind when you think of baking soda? Would you agree that most consumers would respond with Arm & Hammer?

In 1846, Dr. Austin Church and John Dwight set out to sell sodium bicarbonate in little boxes. By 1867, Austin Church retired and his two sons form Church & Co. and introduce the hammer wielding arm of Vulcan (god of fire) to their packages. Through the years, this simple product found new applications including: cooking, personal care, household agent, deodorizer, laundry detergent, dental care, and a variety of other uses. Their website states their value proposition very succinctly:

ARM & HAMMER® Baking Soda – pure, versatile, effective, environmentally safe and economical. Evidence that good solutions for your home, your family and your body are timeless.

As with A & H, it doesn’t mean that you abandon your core, you merely find new ways to leverage your Brand Legacy.

Your Next Move:
We’ve defined your Brand Legacy and filtered out the core idea. Next, we evaluated what your core brand represents and identified the affiliate and periphery brands that surround your market space. Finally, we charted a course for your brand (embrace, discard, re-invent). The next step is to integrate this brand strategy into your future marketing plans.

A word of caution - great care must be considered when you take your next step. For Andy Grove, it was huge: he laid-off 3,000 workers, sought government protectionism against foreign competition, and walked away from his base business. His calculated moves were made to save Intel.

When Michael Eisner was considering the CEO position at Walt Disney in 1984, the company was stumbling along and vultures loomed overhead. Eisner embraced the Disney legacy and put into play the many assets the organization had locked away in a vault. He, in affect, generated cash by raising theme park fees, released to video the classics, purchased ABC, and invested heavily into new films and entertainment venues. By embracing the “Mouse,” Eisner generated $65 billion in market wealth to this organization.

Another bold business leader laid-off nearly 100,000 workers in 1981 and radically restructured the composition of the company he was hired to reinvent – Jack Welch. His mantra was to be first or second in the marketplace or get out! Although his approach seemed unconventional, he did convert GE into one of the most valued corporations in the world.

Your next move may not be as earth-shattering as Welch, Grove, or Eisner, but in your organization, it may be the next plausible direction your company will take. After careful analysis, you may discern that your organization is not growing, hardly profitable, or just stagnant in your designated market space. As Chris Zook stated in his book Profit from the Core, he suggests that narrowing your focus and strengthening your core values will drive top and bottom-line results. Zook goes on to suggest that only after your have a strong core do you venture out to an adjacent business as a growth strategy.

Conclusion:
We began our discussion with this question: Brand Legacy: What’s your next move? We defined a Brand Legacy and suggested that your core idea or point of origin can impact your current perception. Often what customers remember through years of message layering creates confusion if the message conflicts with today’s meaning. We also explored three aspects of the core idea by breaking them down into three constituents: core, affiliate, and periphery brands. Your position on the brand radar as it pertains to the competition remains the key to your future trajectory.

Next, we considered your Brand Legacy and what your core idea equates to today. We also presented three possible strategies for your organization to consider: embrace, discard, or reinvent your brand. Several examples demonstrated how business leaders took bold actions to change their strategic direction. The challenge for your Brand Legacy in the future remains – what is your next move?

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