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Warriors on the High Wire

The Balancing Act of Brand Leadership in the 21st Century


By Fiona Gilmore, Replika Books, 2003
“Warriors on the High Wire” • Why the role of the brand is About Fiona Gilmore
demonstrates exactly why of fundamental importance
nothing is as important as in the age of e-commerce Fiona Gilmore is the
managing the brand if a company editor of “Brand Warriors”.
is to prosper. The brand must be • Why service brands are She is a founding partner of
at the heart of an organization if it critical for much of twenty- Springpoint Ltd, one of the
is to succeed, but very often first century business leading brand positioning
companies fail to understand this and corporate identity
maxim. • How companies should deal consultancies in Europe.
with acquisitions
Over the last fifteen years
Based on interviews with CEOs
she has contributed to the
and key decision-makers, author development of corporate
Fiona Gilmore distils the essence branding architecture and
of many top brands. Top CEOs positioning programs for
such as Michael Eisner of Disney some of the leading global
and Sir Christopher Gent of organizations.
Vodafone discuss the issues that
are crucial to their success. They A regular speaker on the
reveal: role of visual identity in
business, Fiona Gilmore
• How companies can create also writes articles on
brand architecture to corporate branding and has
appeared on 'The Money
maximize competitive
Programme' and 'Question
advantage
Time'.

Inside This Book Summary


·The Big Idea ·Sony: Re-Inventing Itself to Keep
·Why You Need this Book Ahead in the Networked World
·Warriors on the High Wire ·Visa International: The Serendipity
·Armani: The Cult of the Fashion of a Name
Brand: Defining Style across Six ·Vodafone: Post-Acquisition: The
Continents Challenge of Brand Migration
·Disney: Managing a Magical Brand ·Yahoo!: The Beginnings of a
·Reuters: Transforming the Brand Brand
for the Information Age
·Samsung: Another Rising Asian
Tiger

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Why You Need this Book first century. And there’s no better way to do so
Some of the greatest companies the business than to read about some of the most successful
world has seen credit exemplary branding for brand warriors in the history of management.
their success. Conversely, some of those
companies can sometimes lose their way and
neglect to manage their brands. Fiona Gilmore Armani: The Cult of the Fashion Brand:
shows how and why this happens through Defining Style across Six Continents
gathering inputs from top management of some The story of the Armani
of the most familiar and successful brands in brand is one of a svengali-
history and highlighting lessons we can learn l i k e s e r i e s o f
from their experiences. transformations, keeping
one step ahead of an easily
fatigued consumer and at
Warriors on the High Wire the same time presenting a
Brand warfare gives the same switch-back ride – public face of apparent seamless continuity.
a lt e rna ting b etwe e n e x hila r a t io n a nd
d i s ap poi n tme n t – th at h a s b e en th e As a customer-focused company, with many
characteristic of physical warfare through the different sub-brands, the phrase ‘giving them
ages. what they want’ is more easily applied to
Armani than to most.
Brand warriors live on the high wire as they seek
to grow, explore new markets, develop new Armani believes that you have to control your
techniques, and create a few useful ideas. Brand business absolutely and the house has been
warriors, like chess grand masters, never stop effectively acquiring those parts of its business
learning, and the problems they face become that it had not owned in order to bring this
more complex and difficult as the world around about.
them changes.
This policy is being applied across
Regardless of your company size or your manufacturing, distribution and retail. It is clear
discipline, you can stand to learn a lot more that the more you license your brand, the less
regarding effective brand warfare in the twenty- control you have over it, and this is what Armani
seeks to counter by its acquisitions.

About the Book Control brings consistency. This is critical for


any global brand and Armani, with its high-
impact advertising campaigns, unique
entertainment industry connections and
Editor: Fiona Gilmore defined retail store concepts, demands world-
Publisher: Replika Books
wide consistency throughout.
Date of Publication: 2003
ISBN: 1-86197-611-9
264 pages Armani himself is aware that his name will
outlive him. He tries to provide motivation and
communicate a sense of vision to those he
works with, but he is always looking at how the
brand will continue to evolve when he is no
longer part of it.

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Thanks to this outlook, unlike many other The old adage that ‘the devil is in the details’ is
brands that have come and gone, the Armani certainly true in the delivery of service brands. For
name has remained intact and the association those who own and maintain them, it is imperative
with quality, luxury and a particular Italian view to have a system of training and managing your
remains undimmed. people to deliver your brand how you want it.

Disney: Managing a Magical Brand


We’ve always known
Reuters: Transforming the Brand for the
that the Disney Information Age
brand generates a After 150 years of existence,
level of loyalty and Reuters is on the threshold
affection unlike any other brand. This deeply of the most exciting period
held affinity is obviously of great benefit to the of its colourful history. The
company, but where does it come from? Why Internet and new wireless
does it exist? technologies are opening the way for the
company to broaden its markets.
The answer is that Disney, unlike any other
brand, is defined not just by its products, but Reuters sets off on this road with a wealth of trust
also by deeply held emotions and values, such attached to its brand – perhaps the single most
as family, fun, optimism and community. important brand value for any business in the new
economy of the twenty-first century.
Disney executives maintain that great
entertainment products have always been and With a dynamic new business strategy which is
will always be the fundamental drivers of their radically transforming the company, Reuters is
success and are critical to their brand strength. proud to be at the leading edge – ahead of the
However, their brand also derives a significant field, where their journalists and engineers first
amount of its value from the personal beliefs began carving out their reputation one and a half
and hopes that it evokes in people around the centuries ago.
world.
Reuters has used technology to transform the
Another fundamental characteristic of the core-product offering of the brand. It has drawn
Disney brand is that people pass their love for on the invaluable brand he r i tage of
Disney to their children, who in turn instil it in trustworthiness, breadth of coverage and
their children. Thus, brand loyalty is passed accuracy with the added-on contemporary values
uninterrupted and undiminished from one of speed, ease of use and modernity.
generation to the next.
Reuters also exemplifies the importance of
Anyone who has been to a Disney resort can watching ahead for technological change rather
testify to the quality of every individual who than reacting to change when it happens. In this
works there and to the management of the case, Reuters has been able to develop Internet-
experience. Every member of the cast is trained enabled products quickly and effectively and plan
well, with the clear recognition that everyone carefully for their delivery to existing customers
has a key role to play. For example, those who and to new customers by opening up new market
sweep the immaculate streets are the most segments.
likely to be asked for directions.

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The use of a marketing periscope to assess s a y s , “ E v e r y o n e ’s i n v i t e d ’. T h i s
technological change and customer attitudes ‘democratization’ of technology ownership
has never been as important as it is today. is a powerful emotional tool – which pitches
Companies can ill afford to neglect this sort of Samsung as the brand for everyone, not
tool – most especially in today’s volatile times. just the technologically literate few.

Samsung: Another Asian Tiger Sony: Re-Inventing Itself to Keep


S a m s u n g Ahead in the Networked World
demonstrates how S o n y
important it is to deal revolutionized
with organizational the home
issues in managing a electronics
global brand, particularly when past history has markets around the world with products such as
given autonomy to local managers. the first truly pocket-sized transistor radio, the
Walkman personal stereo and the Trinitron
The modern consumer is very open to new color television. But it hasn’t rested on its
brands, particularly in new markets. However, in laurels; Sony has expanded its operations to
technologically-driven markets, brands do need encompass businesses in the areas of films and
to be backed up by technically superb products TV program production and distribution, music
to be viable leading brands. and video games.

The sunk cost of R&D to get to that level is As the digital revolution spreads, Sony will
substantial. But it can then be integral to the continue to be at the leading edge of change.
brand values – as Samsung so powerfully
epitomizes with its core value of ‘wow’. Sony’s ‘Go Create’ campaign has played a direct
part in achieving the continued product
Knowing something of both market evolution innovation necessary in order to further drive
and our own product development potential, positive perceptions of the Sony brand. It is vital
Samsung identified a brand essence based on that marketing communications clearly explain
three concepts: to consumers how future innovations will affect
their lives, and especially how they will be able
ŸWow. This is the customers’ sense of to use newly developed products to create yet
surprise at products’ functionality, design more opportunities for entertainment and
and features. ‘Wow’ is an intangible enjoyment.
(although built on physical products and real
product features) and will require Sony’s story is a classic example of the need to
continuous substantial investment in R&D define your market carefully, particularly when
and product improvement. it is undergoing technological change. The
company was absolutely right to grasp the
ŸSimplicity. Samsung aims to deliver a nettle of organizational change to break down
product which is simple to set up, simple to the boundaries of its previous structure. Its
use and simple to integrate into other parts traditional product definitions were increasingly
of domestic or office digital technology. irrelevant to the more sophisticated modern
consumer, so without such a change its other
ŸInclusiveness. Samsung’s strap line efforts could have been negative.

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Sony’s market position could have been more than tripled.
marginalized, as the consumer’s attitudes, fired
by technology and increasing use of the For Visa the past decade has been a time of
Internet, diverged from the historic norms. To growing recognition of the value of their brand –
deal with this, Sony underpinned its definition and of what an important role brand strategy can
with some mould-breaking new products and play in supporting corporate strategy. As
brand positioning which occupies the high champions of the brand they have also gained a
ground of a generic proposition but which Sony greater appreciation for the responsibility they
has credibly made its own. have to preserve.

As they say about aging brains and muscles, ‘use it


Visa International: The Serendipity of a or lose it’. Similarly, if you wish to preserve the
Name relevance of your brand promise to your
In 1995 the Visa flag consumers, you must make the effort to
basically stood for single understand and respond to their expectations for
product functionality and growth and evolution. A static brand promise is a
acceptance. Their vision dying brand.
was that the flag would
c o m e t o s t a n d fo r The global development of Visa is interesting in
payment – all kinds of payment – as well as for two more respects:
acceptance.
1. The ability to develop brands on a global yet
Ironically one of the future goals was that some local business level is a vivid example of
of the new markets created would actually go Theodore Levitt’s famous saying: ‘Think
away over time as technologies evolve to global: act local’. This combined with its
support inter-operability across products. outstanding levels of trust and dependability,
shows the value and strength of long-term
The original brand was BankAmericard, which consistent branding.
National BankAmericard Incorporated bought
from the Bank of America and proceeded to 2. Visa demonstrates that powerful brands are
build a global system. However, NBI’s member capable of extension into adjacent areas,
banks adopted various other names around the without diluting the core brand.
world that were generally based on their
individual names. The lack of a common name
was hindering growth. Vodafone: Post-Acquisition: The
Challenge of Brand Migration
Visa was born when NBI’s then president, Dee Vo da fo ne ha s be e n
Hock, offered a challenge and a reward to the transformed from a
person who could come up with a name for all predominantly UK-based
these cards that was culturally and company into the largest
geographically neutral, had no restrictive mobile phone company and
connotations, and implied travel, mobility and one of the largest companies
acceptance. (by market capitalization) in
the world through a series of acquisitions.
The name proved a powerful magnet; many
banks switched all their cards to Visa and sales These acquisitions were the American cellular

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phone operator AirTouch and the German Vodafone supports this with a number of
fixed-wire and cellular-phone conglomerate important underlying core values:
Mannesmann. The challenges were daunting:
the new group had subsidiaries all over the - dependability
world, all of which differed in terms of name, - empathy
product mix and history. In addition the - can-do attitude
acquisition had left some egos bruised and - innovation
there was some suspicion regarding the new - joie de vivre
management.

There was thus a clear need for a migration Lastly, care was taken not to let Vodafone's
strategy in order to transfer the undoubted English character ride roughshod over that of all
equity in the local brands that were acquired to the other brands and imposing a British brand
Vodafone in a timely and effective way. based on British values. The aim was to be seen as
a true global brand with no home territory, but
A decision was made to move forward with a despite that truly in touch with local markets
single global brand and transfer the equity from where it operates.
all the brands to that one brand. Many different
factors were behind this decision – two of
which are the ability to offer identical services Yahoo: The Beginnings of a Brand
with identical figures anywhere in the world, Yahoo! is to some extent
and the leverage accruing to one single and a brand that 'happened'.
easily recognizable identity. Certainly its founders
did not intend to create
There was a need to manage the post- a brand. On the other hand they were quick to
acquisition process in a way that recognizes the realize and recognize the need for professional
sensitivities of the individuals involved as well marketing management once the brand began to
as the potential contribution of the acquired take off.
companies. The brand values as well need to
draw on the best of everyone, and not just that Yahoo! is an excellent example of managing
of the acquirer. international expansion in a disciplined way,
without creating a straitjacket which discourages
The core positioning is that Vodafone enables local management. Here is a brand with some
people to get more out of life. We see this in distinctive universal values which are easily
two ways: understood yet with enough freedom to ensure
they tap into local culture as they expand.
Fulfilling – the company aims to open up
more possibilities for its customers so they Before Yahoo!, Internet usage was largely
can do more of what they want to do confined to academic, military and government, a
closely linked group of people with specific needs.
Empowering – giving customers control It was a chaotic mystery for individual consumers
so they can live their lives the way they since there was no way to search for what they
want to and connect with the communities might want to look for. So founders Jerry Yang and
that are important to them. David Filo, in their spare time and as a diversion,
began to create a list of all the interesting sites
they discovered on the Internet.

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More and more users, encouraged by word-of-
mouth, came to the site, and the brand was
born when Yang and Filo gave it the Yahoo!
monicker to describe the sense of fun that was
possible on the Internet.

The brand has always been differentiated from


its competitors because of a focus on
consumers. It focuses on bringing a sense of
ease, fun and relevance to users. An Internet
brand is especially unusual in the world of
branding because there is nothing tangible
about it.

The lesson here is that huge emphasis must be


placed on continuous improvements to speed,
functionality and accuracy, in support of the
core values of speed and ease of use.
Particularly important is an emotional
connection with users because much of an
Internet brand’s relationship with them is about
their experience with the product.

In addition, Yahoo! demonstrates the speed


with which a brand can be created in the
modern world and how fundamental values like
trust and honesty can be built into a brand very
quickly.

Contributors
Sir Christopher Gent, Vodafone Group PLC –
Robert Triefus, Armani Group –Michael Eisner,
Chairman and Chief Executive Officer, The Walt
Disney Company – Jean-Michael Perbet, Sony
Corporation –Peter Job, Reuters – Jean-Claude
Marchand, Reuters Information – Jerry Yang,
Yahoo! – Karen Edwards, Yahoo! – Malcolm
Williamson, Visa International – Caroline
McNally, Visa International – Gabriel Hawawini,
Eric Kim, Samsung Electronics Co. Ltd.

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