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Executive Interviews: Interview with Al Ries on Brands and Branding
August 2006
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By Dr. Nagendra V Chowdary
Al Ries Al Ries
Chairman of Ries, an Atlanta-based marketing strategy firm 
Low-tech brands, on the other
hand, may never need to change. The
formula for Coca Cola, a 120 year old
brand, is locked in a safe in an Atlanta
bank. When the company tried to
change the formula (with the launch
of New Coke), the market rose up in
arms with complaints and Coca-Cola
reiterated by reintroducing the
original formula under the name
Coca Cola Classic. In general, because of evolution in
technology, it's easier to lose your
position in a high-tech market than it
is in a low tech market. -
What is the role of advertising and
corporate communications in building the
brands?
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Consumers buy brands. They don't
buy companies (with the exception of
the stock market). Therefore, it's more
important for a company to sell its
brands rather than its corporate
reputation. However, in a multi-brand
company, a certain amount of
resources should probably be
dedicated to selling the company.
How much? Maybe 10 to 15%. In general, a company should use
PR (or publicity) to launch a new
brand and should only switch to
advertising after the new brand has achieved credibility in the minds of
consumers. Advertising doesn't have
the credibility to launch new brands. -
What according to you are the five most
important things companies must do to
build strong brands and to nurture a strong
brand?
- Be first. It's better to be first than it
is to be better. McDonald's was the
first hamburger chain. Hertz was
the first rent a car company.
- Launch the new brand with PR.
- Own a word in the mind. Volvo owns
"safety." BMW owns "driving."
- Be visually different. The curves of a
Coke bottle. The grill of a Mercedes.
- Use massive advertising after the
brand has achieved credibility in
the minds of consumers.
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What are the important signals of a
brand's definite death? How can it cope with
such signals? Are there any proven ways to
preempt such signals?
Brands live or die along with the
category. If everybody stops drinking
cola, then the Coca Cola brand would
have no value. Leaders should nurture
their categories along with their
brands. Some categories, especially in
high-tech brands, are bound to die. If
your brand is associated with such a
category, then you should let it die.
The Kodak brand, for example, is
associated with film photography
which has no future. (Film will be
replaced by digital photography).
Kodak should have launched a line of
digital photography products with a
new brand and let the Kodak brand
fade away along with the film
category. In other words, Kodak should try
to save the company, and not save the
brand. -
In this age of increasing presence of
public private partnership, social
entrepreneurship and NGOs becoming
more socially active, how to build a social
brand? What should be the relevant
branding strategies?
The same principles apply. Stand for
something in the mind. For example,
we have advised the American Heart
Association to focus on reducing
"obesity," the biggest single health
problem in America. (According to a
recent survey, people in America are
more overweight than the population
of any other country in the world.) Yet the American Heart
Association runs an information
program that focuses on many
different health issues related to the
heart. In an over communicated
society, the worst thing you can do is
to try to communicate everything
about your brand or your association.
1.
The Multi-Branding Strategy Case Study
2. ICMR
Case Collection
3.
Case Study Volumes
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