Law of Expansion

The power of a brand is inversely proportional to its scope Case study Chevrolet is an American brand of vehicle produced by General Motors (GM). Founded by Louis Chevrolet and ousted GM founder William C. Durant on November 3, 1911, General Motors acquired Chevrolet in 1918. Chevrolet used to be the largest-selling automobile brand in America. In 1986, the Chevrolet division on General Motors sold 1,718,839 cars. But trying to be all things to everyone undermined the power of the brand. Today Chevrolet sells less than a million cars per year and has fallen to second place in the market behind Ford. Summary The Chevrolet division on General Motors tried to be all things to everyone undermined the power of the brand. For the expansion purposes and seeking for short-term profits Chevrolet introduced new categories and product lines which lost the value of the product itself. While extending the line of Chevrolet cars added sales in the short-term, it runs counter to the notion of branding. If Chevrolet wanted to build a powerful brand in mind of the consumer, it needed to contract to its brand, not expand it. Instead of expanding the brand, companies mostly succeed by expanding the market. Build your profits by expanding the market for its core. Throughout history, the most successful brands have been those that kept a narrow focus, and then expanded the category. Instead of asking what share of the existing market your brand can capture, ask how large a market your brand can create by narrowing its focus, and owning a word in the consumer's mind. In the long term, expanding your brand will diminish your power and weaken your image.

Law of Contraction
A brand becomes stronger when you narrow its focus Case study The first Starbucks location opened in 1971. The name is inspired by Moby Dicks first mate. This name and the mermaid logo were inspired by the love of the sea, from Starbucks original location in Seattle Washington in the heart of Pike Place Market. Starting as a single shop specializing in high quality coffee and brewing products the company grew to be the largest roaster in Washington with multiple locations until the early 80s. Starbucks has a product range of more than 30 blends and single origin coffees, handcrafted beverages, bottles frappuccino coffee drinks (in Japan and Taiwan), coffee beans, coffee liqueurs, line of ice creams, music, books, films, home espresso machines, premium chocolate, coffee mugs, coffee accessories, Starbucks card, a stored value card, and gift items (Starbucks, 2007). Contrary to the apparently broad product range, beverages represent 77% of retail sales whereas food items and other products account for 15% and 8%, respectively, which means that the company strongly depends on beverages and also that the variety of products developed has not worked as it should have, which may be risky if market and competition conditions change (Datamonitor, 2004).

Summary In a few short years, Starbucks has become one of Americas best known and most popular brands. Narrowing one s focus is not the same as carrying a limited line. Starbucks offers thirty different types of coffee. When you dominate the market you become extremely powerful. Good things happen when you contract your brand rather than expand it, it is focused. When you only make one thing, you get pretty good at making that thing. Among the most popular trends in marketing today are broadening the scope of a brand, widening the appeal, and extending the product line. All of these strategies are attempts to build market share. But the reality is that the broader the scope of a brand, the less powerful it is. Customers want brands that are narrow in scope and easy to identify with a single word.

Law of Publicity
The birth of a brand is usually accomplished with publicity, not advertising. Case study Anita Roddick created the Body Shop in 1976 around the concept of natural cosmetics, made of pure ingredients, not tested on animals, and kind to both the environment and the people indigenous to the communities in which the products originated. With virtually no advertising, but with massive amounts of publicity, the Body Shop has become a powerful global brand. Summary The body shop never advertised its product but generated publicity by being the first brand in a new category, media wants to report what is new, not what is best. However, companies can no longer count on getting free publicity. At that point, and only at that point, the company has to shift to advertising. Advertising doesn't build leadership of a brand: but, once the brand is on top, advertising keeps it there. Any new competitor that takes on a brand leader will have to pay heavily to compete. Through publicity The Body Shop kept strive to own a word in the mind of the consumer. Once a brand owns a word, like Body Shop, it's almost impossible for a competitor to take that word away. Ideally, The Body Shop brand name turned into a household name for the products. Consumers then refer to the category by the brand name, even when they use a competing product.

Law of advertising
Once born, a brand needs advertising to stay healthy. Case study Heritage is something that is passed from one generation to the other, with that knowledge in mind that proves that the companys quality standards have surpassed the critics of the people. The Adidas ad, Nothing is impossible, suggests that one can achieve a dream, this usually goes for the sports lovers since most of them would aspire to be a famous Olympian one day. The simplicity of the ad campaign will be tagged in the minds of anyone who is reading it. The clarity of its meaning is easy to envision what the company wants to show to the people. Anyhow, even if one isnt a sports fanatic knowing the quality of the Adidas shoes are already passable for the market to procure one of its products. The company does not only offer shoes but a lifestyle. What does this mean? It only means that Adidas had catered the needs of the younger generation like sports bag, gym and sports wear, but most of all, it has been flexible enough to meet the changing demands of the people. Ergo, they have become a trend. Trend is a changing universal phenomenon that drives peoples mind to go crazy on what is hot, what is in and what is currently saleable. This is where they meet the challenge in giving their products the edge among others. To become a top seller company, one must emphasize on its assets, on what they can give in the benefit of their customers and what they can teach in their advertisements to promote the products efficiency. Summary advertising is the second important part which is needed by the brand when its born but it comes after publicity. As Adidas says Nothing is impossible, suggests that one can achieve a dream, this usually goes for the sports lovers since most of them would aspire to be a famous Olympian one day. The advertisement clearly shows what Adidas is actually trying to deliver its consumers, what perception it is trying to build in its costumers mind. It clearly shows that The company does not only offer shoes but a lifestyle which means that Adidas had catered the needs of the younger generation like sports bag, gym and sports wear, but most of all, it has been flexible enough to meet the changing demands of the people.

The Law of the Word:

A brand should strive to own a word in the mind of the consumer Case study FedEx Express is a cargo airline based in Memphis, Tennessee, United States. It is the world's largest airline in terms of freight tons flown and the world's fourth largest in terms of fleet size. It is a subsidiary of FedEx Corporation, delivering packages and freight to more than 375 destinations in nearly every country each day. The company started overnight operations on April 17, 1973 with fourteen Dassault Falcon 20s that connected twenty-five cities in the United States. That night, 18 packages were carried. Services included both overnight and two-day package and envelope delivery services, as well as Courier Pak. Federal Express began to market itself as "the freight service company with 550-mile-perhour delivery trucks". However, the company began to experience financial difficulties

losing up to a million USD a month. While waiting for a flight home to Memphis from Chicago after being turned down for capital by General Dynamics. In 1994, Federal Express adopted the "FedEx" name, formalizing the abbreviation that until then was unofficial. Also that year, FedEx launched Fedex.com as the first transportation web site to offer online package tracking, which allowed customers to conduct business via the internet. In 1995, the company acquired air routes from Evergreen International to start services to China, and opened an Asia and Pacific hub. Summary Federal Express became successful by being the first air cargo carrier to narrow its focus to overnight delivery, thereby owning the word overnight in the mind of the air cargo user. FedEx has become synonymous with overnight delivery.

These are extra.. once done ill print out

Law of Sibling
There is a time and place to launch a second brand. Case study: Honda Motor Company, Ltd is a Japanese public multinational corporation primarily known as a manufacturer of automobiles and motorcycles. Honda was the first Japanese automobile manufacturer to release a dedicated luxury brand, Acura, in 1986. When Honda wanted to introduce an expensive car; it didnt call the brand a Honda Plus or a Honda Ultra. It developed a new brand called Acura, which became a big success. As a matter of fact, Acura quickly became the largest selling imported luxury car in America

Summary: Honda wanted to introduce an expensive car; it didnt call the brand a Honda Plus or a Honda Ultra. It developed a new brand called Acura because siblings are not associated as being in the same category but as the other members of the family. Honda used the most effective way that a company with an established brand (Honda) to introduce new products is by launching totally new brands (Acura), each with a unique name and a separate identity. This created a distinction between brands, focused on the product areas, single attribute to

segment, created a different brand name, launch a new sibling only when you can create a new category and keep control of the sibling family at the highest level.

Law of consistency:
A brand is not built overnight. Success is measured in decades, not years. Case Study: BMW (Bayerische Motoren Werke) is a German automobile, motorcycle and engine manufacturing company founded in 1917. BMW is headquartered in Munich, Bavaria, Germany. It also owns and produces the Mini marque, and is the parent company of RollsRoyce Motor Cars. In 2010, the BMW group produced 1,481,253 automobiles and 112,271 motorcycles across all its brands.BMW has been the ultimate driving machine for twentyfive years. Whats even more remarkable is the fact that BMW retained its strategy even though the brand was driven through three separate advertising agencies. A change in agencies usually signals the end of a brands consistency.

Summary: The key point of consistency is brands should never change they can be bent slightly or given a new slant but not changed same is the case with BMW it never changed its brand name. BMW is now in the crosshairs of all the major car companies that are trying to replicate its success. In response, it is planning to produce a large number of new cars intended to consolidate its position as the biggest manufacturer of solely premium automobiles. BMW's brand name is stronger than that of any other luxury car company--more, even, than those of such fashion houses as Chanel and hotel chains as Four Seasons. There are three reasons why the BMW brand scores so highly: consistency, patience and a simple, upbeat message. It has been beating the drum for 25 years that BMW offers customers the ultimate driving machine. "BMW is very, very consistent in providing the product line that echoes what the brand is all about.