
Brand's exist because a) brands make consumers life easier and make them feel
good - consequently they are willing to pay over the odds for the privilege, and b) companies therefore make more money as people are prepared to pay more or use the same thing more often.
A useful strategy is to look for categories with an emotional story where brands don't exist and brand them - it can change a companies financial fortunes.
Macquarie Infrastructure Group, for example is the part of Mac Bank responsible for Toll Roads (one of the largest Toll road owners in the world). There shares have dropped from around $40.00 a share to around
$3.00 a share in 4 years. Now lets examine how they have branded their greatest asset - their Toll Roads:
- They call them Toll Roads
- They have names like The M1, The Eastern Distributor, Citylink, or the M3
- You have to buy products called eTag, or something to use them
- When you drive through a pay station the etag thing beeps loudly
- All of their communications are boring and complicated (check out the website)
- They are drab, boring and feel slightly exploitative (i.e. 'why should people have to pay to use Toll roads isn't that what taxes are for')
How do people feel as a result of using these twice a day, every day year in and year out? Possibly bored, depressed, and pissed off.
Now lets imagine we can't change the product, but we can change the packaging and re-brand Toll Roads.
- Instead of calling them Toll Roads we call them Premium Roads
- The roads have uplifting names such as Happy Drive, Inspiration Lane, YourWay Highway
- You don't purchase an eTag, instead you may purchase a Liberation Pass to give you access to the system
- When you pass a pay zone instead of beeping a little dat-da-dar da-dar victory chime rings out
- As a premium roads user you receive regular information, discounts and so on...
The nature of the relationship people have with you will change instantly. Just make it fun, or interesting, or status orientated and people will feel much better about using them. And why do you want to do this Mr Macquarie? Well from a company perspective Nicolas Moore would not have to take a $26 million paycut, instead you could harness the goodwill created and focus on top line wealth creating growth. From a consumer perspective you may make life a little more interesting or fun.
Any category that has high emotional engagement, but no established brands can be completely overhauled. For example, Naked's consumer research found people loved their pools (they act as a magnet for street socialisation) but, no pool salt had ever bothered to brand itself. So we created a premium pool salt. It made people feel good about their pool salt, and massively improved the financial performance of the company.
Just go for a walk in any supermarket isle and you'll find many categories still ripe for reinvention. Further, Macquarie should start to look at how it can begin to brand the many wonderful assets it still owns.
I would be interested to know what other categories exist (on or offline) that have as yet not branded themselves? Any thoughts?