The Phantom Brand

Bill Nissim

If you search the term “branding” on the Internet, you’ll be inundated by a plethora of theories, assumptions, and case studies which implicate the quintessential approach to this elusive topic. This mystification leads most organizations to relegate brand management to lower level functionaries and relies on tangibles, such as revenues and EBITDA, as a measure of market viability. The strategic use of branding only surfaces when the organization experiences a turbulent period in time and applies brand principles as a life preserver.

The fundamental problem with the application of branding lies in its strategic importance and execution throughout the organization. If top management views branding as a “marketing function,” their cursory involvement implicates a tactical view and permeation throughout the organization will not congeal. What arises is a PHANTOM BRAND – one that exists in the murky shadows and becomes a vague reminder of an organization’s true self. Conversely, an organization that embraces their brand as the strategic cornerstone of the business and obtains cultural acceptance will emerge with a strong identity and market position.

The intent of this article is to identify phantom brands and understand why they fall into disrepair. Published authors’ who have investigated various facets of this topic will be cited and their findings summarized. The by product of this exercise will alert management to patterns and red flags that signify brand dilution.

Branding Defined:

Branding has been defined by many specialists over the years. Michael Dunn, CEO of Prophet Consulting, states “…the brand acts as a sort of shorthand that consumers use to decide between competing products. In the broadest sense, the brand is a combination of a product or service's public image.” Another branding expert of 31 years broke the concept down into 22 Immutable Laws of Branding (Al & Laura Ries, 2002) in which law number five deals with brand ownership. They assert that “if you want to build a brand, you must focus your branding efforts on establishing a word in the prospect's mind - a word that nobody else owns.” Finally, David Aaker, noted expert on brand strategy states “a company's brand is the primary source of its competitive advantage and a valuable strategic asset (Building Strong Brands, 1996).” Now that branding has been defined, let’s examine common foibles of brand management.

Common Branding Traps:

David Aaker has identified four brand identity traps which can lead to ineffective and dysfunctional brand strategies. These “traps” include image, position, external perspective, and product-attribute fixation traps. Aaker contends that a brand image reflects the past and is passive in nature, whereas the brand identity is active and focuses on the future. Let’s briefly review the essence of each trap.

1. Brand Image Trap: The essence of this first trap is how customers perceive your brand image. If left un-checked, the brand image slowly becomes the brand identity. The problem here is that both the customer and the marketplace are defining your identity verses the company creating a more accurate portrayal of your future brand promise.

2. Brand Position Trap: A brand position utilizes the value proposition to actively communicate and demonstrate its brand advantage in the marketplace. The trap occurs when the focus is on product attributes rather than brand building activities (personality, associations, symbols, etc.). As a result, the brand lacks depth and significance and could be equated to a movie with a weak plot – dull and uneventful!

3. External Perspective Trap The common viewpoint of organizations is to maintain an external focus – how customers perceive the brand. Most organizations fail to internally communicate the vision and values of their brand. Test this concept yourself: Ask anyone within your organization what your brand stands for – if you get a blank stare or a numerical response (like sales goal), then you’ve got issues. How can your employees execute the brand promise to your customers if they lack passion, inspiration, and understanding? 4. Product-Attribute Fixation Trap The failure to distinguish between a product and a brand is the essence of a product-attribute trap. Most companies view product attributes as the basis for purchasing decisions and competitive strength in the marketplace. Although Nike produces professional quality running shoes (as does others), the identity-association of owning the product has greater meaning to the owner than the product itself. Ask someone what they drive? If they possess a sense of pride, they’ll quickly respond with the brand name – not horsepower or torque ratios!

New Brand or Position:

Al Ries recently discussed three mistakes companies make when launching new products (or brands) in the marketplace. The first common mistake is to spend big during the initial roll-out. The reasoning is – if they don’t know you’re there, they won’t buy! According to Ries, new products (brands) take off slowly and advertising inherently lacks credibility. Successful organizations have built their brand solely by utilizing public relations (such as The Body Shop, Swatch, and Red Bull).

The second mistake is using a research-driven name. The biggest brand name in online book sales is Amazon.Com, not “Bookfinder.com.” Why? History has demonstrated that consumers seek differentiated identities online and organizations such as pets.com and etoys.com (generic) have also failed.

The third mistake is broad distribution. Whether the placement of products or advertising to launch a new name/product, Ries suggests you start small. When you narrow your focus and concentrate on one method (market, distribution point, etc.), your brand has a better chance of being recognized verses being lost amongst the giants in the same environment.

Phantom Brands: Author Matt Haig suggests that “consumers make buying decisions based around the perception of the brand rather than the reality of the product (Brand Failures, 2003).” He goes on to say that the value extends beyond the physical assets of the organization and that perception is fragile at best. (His work exemplifies those entities that discarded the immutable laws of branding and suffered the inevitable consequences).

Snapple: Beverages Quaker Oats Company bought Snapple for $1.7 billion in 1994 and decided to change the brand formula. They shifted its distribution and advertising campaign to reflect something that it wasn’t, and within three years, sold the floundering company for $300 million. The lesson learned? Quaker Oats didn’t understand the brand’s value, both in place and presentation, and diminished the value in the consumer’s mind.

Planet Hollywood: Restaurant Most of us have “tried” Planet Hollywood and enjoyed the novelty of the experience. This organization was launched in 1991 with the premise of celebrity hype and movie memorabilia, with food being a side-line. By 1999, the company went bankrupt and its fortunes invested lost. What happened? Since the “food” wasn’t the reason to visit Planet Hollywood, once you’ve seen the sights, there was no compelling reason to return.

McDonald’s Arch Deluxe: International Chain The tag line for this product was “Burger with a grown-up taste” it was McDonald’s biggest flop. The value proposition for this organization is friendliness, cleanliness, consistency, and convenience. The product concept was well researched and the consensus was positive. Why did Arch Deluxe fail? McDonald’s ignored their values and offered a more affluent product that didn’t match their brand identity. Market research should be considered as input, but if it denies your brand, put little trust into it!

Phantom brands arrive at our doorstep in many forms. For some, a serious lack of brand management allows the organization’s most valuable asset (the brand identity) to erode over time and become less valuable to their customers. For others, a deliberate act (Snapple) for profit’s sake quickly destroys the point of differentiation in the consumer’s minds. Phantom brands become remnants of an organization’s true value/inspiration and quickly drive the organization into disrepair. Why does this occur?

In my experience, the problem lies squarely with senior management and their incomprehension of the brand concept. The spot-light shines on revenues and relationships, which is the fuel of business, but the engine remains the brand. As a result, they miss the warning signals and unconsciously make decisions that ultimately diminish the organization’s value. Since the CEO is typically the chief marketing officer, it is his or her responsibility to care and nurture their brand identity. Without such awareness, the dark shadows of mediocrity slowly engulf the brand and tarnishes its very soul.

Summary: This discussion briefly covers what brands are, traps that organizations fall into, and common mistakes made when launching or re-branding products or services. Several companies were identified in addition to brand dilution errors that each made. In most cases, brand management takes a back-seat to top-line revenue and financial metrics. In the three examples provided above, management ignored the basics of branding and paid an exorbitant price for doing so.

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The Phantom Brand

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