22 Immutable Laws of Branding by Al Ries and Laura Ries explores various aspects of branding. Branding is one the marketing world’s hottest concept. The success of your business depends very much upon what image is formed in the customer’s mind when your brand name pops up. Read the summary prepared by Prof. Sameer Mathur for more insights.
(MBASkills.IN) Book Summary: 22 Immutable Laws of Branding
1. BOOK SUMMARY AND KEY INSIGHTS:
22 Immutable Laws of
Branding
by Al Ries and Laura Ries
PREPARED BY
Sameer Mathur
Ph.D. (Carnegie Mellon University)
2. Prof. Sameer Mathur, Ph.D.
“The Power of Brand
is Inversely
Proportional to its
Scope”
1: The Law of Expansion
Prof. Sameer Mathur, Ph.D.
3. Prof. Sameer Mathur, Ph.D.
If we want to build a powerful
brand, we should contract it,
not expand it.
Consumers want a brand that is
narrow in scope and
distinguishable by a single
word, the shorter the better.
1: The Law of Expansion
Prof. Sameer Mathur, Ph.D.
4. Prof. Sameer Mathur, Ph.D.
EXAMPLE: American Express
suffered the adverse
consequences of the Law of
Expansion. They had a handful of
cards and ~25% market share in
1988. Their market share plunged
to under ~20% after they
launched a blizzard of new
cards.
1: The Law of Expansion
Prof. Sameer Mathur, Ph.D.
5. Prof. Sameer Mathur, Ph.D.
2: The Law of Contraction
Prof. Sameer Mathur, Ph.D.
“A Brand Becomes
Stronger When It
Narrows Its Focus.”
6. Prof. Sameer Mathur, Ph.D.
A brand should narrow its
focus, contracting the
category. Narrowing focus is
not the same as carrying a
limited line. The objective
should be to dominate a
narrower category.
2: The Law of Contraction
Prof. Sameer Mathur, Ph.D.
7. Prof. Sameer Mathur, Ph.D.
EXAMPLE: Fred De Luca implemented
the Law of Contraction. He
narrowed focus to one type of
sandwich, the submarine sandwich.
He called his restaurant Subway
2: The Law of Contraction
Prof. Sameer Mathur, Ph.D.
8. Prof. Sameer Mathur, Ph.D.
“The Birth Of A
Brand Is Achieved By
Publicity (Not
Advertising)”
3: The Law of Publicity
Prof. Sameer Mathur, Ph.D.
9. Prof. Sameer Mathur, Ph.D.
A new brand must be capable of
generating favorable publicity
in the media. A new brand needs
to be “born” not “made”.
The best way of generating
publicity is by being the first
in some important, credible way
for e.g. the first in a new
category.
3: The Law of Publicity
Prof. Sameer Mathur, Ph.D.
10. Prof. Sameer Mathur, Ph.D.
EXAMPLES:
Band-Aid = first adhesive bandage
Jell-O = first gelatin dessert
3: The Law of Publicity
Prof. Sameer Mathur, Ph.D.
11. Prof. Sameer Mathur, Ph.D.
“Once Born, A Brand
Needs Advertising To
Stay Healthy”
4: The Law of Advertising
Prof. Sameer Mathur, Ph.D.
12. Prof. Sameer Mathur, Ph.D.
First Publicity, Then
Advertising should be the
general rule. Advertising
“raises the price of admission”
for competitors. A brand’s
advertising budget serves as
insurance against losses caused
by competitive attacks.
Advertising is useful for
maintaining brand leadership,
but not to obtain it.
4: The Law of Advertising
Prof. Sameer Mathur, Ph.D.
13. Prof. Sameer Mathur, Ph.D.
EXAMPLE: The first iPad was
released by Apple on April 3,
2010. It received tremendous
publicity and media coverage.
Subsequently, Apple launched its
advertising campaign.
4: The Law of Advertising
Prof. Sameer Mathur, Ph.D.
14. Prof. Sameer Mathur, Ph.D.
“A Brand Should
Strive To Own A Word
In The Mind Of The
Consumer”
5: The Law of The Word
Prof. Sameer Mathur, Ph.D.
15. Prof. Sameer Mathur, Ph.D.
A company must focus its
branding efforts on “owning a
word” in the minds of its target
customers. This should be a word
that nobody else owns.
One way this occurs is when the
brand name gets used as a verb.
5: The Law of The Word
16. Prof. Sameer Mathur, Ph.D.
EXAMPLES:
“To Xerox” = To Make a photocopy
“To Google” = To Search the
Internet
5: The Law of The Word
17. Prof. Sameer Mathur, Ph.D.
“The Crucial
Ingredient In The
Success Of Any Brand
Is Its Claim To
Authenticity”
6: The Law of Credentials
18. Prof. Sameer Mathur, Ph.D.
A brand’s credentials in a
category as authentic, real,
original or the leader make it
very powerful. Credentials serve
as collateral put up to
guarantee the performance of a
brand. A product’s perceived
benefits are higher, if they are
structured around the company’s
credentials.
6: The Law of Credentials
19. Prof. Sameer Mathur, Ph.D.
EXAMPLES:
Volvo = “safety”
FedEx = “overnight”
6: The Law of Credentials
20. Prof. Sameer Mathur, Ph.D.
“Quality Is
important but brands
are not built by
quality alone”
7: The Law of Quality
21. Prof. Sameer Mathur, Ph.D.
Perception of quality is in the
mind of the consumer.
Having a high price signals high
quality to consumers.
There is often little
correlation between the
popularity of a product and the
quality of the product.
7: The Law of Quality
22. Prof. Sameer Mathur, Ph.D.
EXAMPLE: Does a Rolex keep
better time than a Casio
watch? Yet, it is perceived as
a better quality watch.
7: The Law of Quality
23. Prof. Sameer Mathur, Ph.D.
8: The Law of The Category
“A Leading Brand
Should Promote The
Category, Not The
Brand”
24. Prof. Sameer Mathur, Ph.D.
A brand should narrow the focus,
create a new category, become
the first and thus the leading
brand in the new category.
Once competition arrives, the
brand should promote the
category and increase the size
of the pie, rather than
increasing their slice of the
pie.
8: The Law of The Category
25. Prof. Sameer Mathur, Ph.D.
EXAMPLE: Customers care more
about a new category (eating
fresh pizza within 30 minutes)
than a new brand (Domino’s)
8: The Law of The Category
26. Prof. Sameer Mathur, Ph.D.
“In The Long Run, A
Brand Is Nothing
More Than A Name”
9: The Law of The Name
27. Prof. Sameer Mathur, Ph.D.
In the long term, the unique
idea or concept behind the brand
goes away, leaving behind just
the name.
Shorter, unique, memorable names
are better than longer, vague,
generic names.
9: The Law of The Name
28. Prof. Sameer Mathur, Ph.D.
EXAMPLES:
“To Xerox” = To Make a photocopy
“To Google” = To Search the
Internet
9: The Law of The Name
29. Prof. Sameer Mathur, Ph.D.
“The Easiest Way To
Destroy A Brand Is
To Put Its Name On
Everything”
10: The Law of Extensions
30. Prof. Sameer Mathur, Ph.D.
Brand extensions destroy brand
value, felt by a reduction in
the market share of the parent
brand; a loss of brand identity.
The company should either
continue to invest in the parent
brand, or launch a new brand.
10: The Law of Extensions
31. Prof. Sameer Mathur, Ph.D.
EXAMPLE: Does Extra-Strength
Tylenol imply that regular Tylenol
is not good enough?
10: The Law of Extensions
32. Prof. Sameer Mathur, Ph.D.
“In Order To Build
The Category, A
Brand Should Welcome
Other Brands”
11: The Law of Fellowship
33. Prof. Sameer Mathur, Ph.D.
Choice stimulates demand!
(although too much choice can
confuse consumers)
Competition broadens the
category, allowing the brands to
focus. Similar businesses
located close together attract
more customers; consumers can
comparison shop; competitors can
keep an eye on each other.
11: The Law of Fellowship
34. Prof. Sameer Mathur, Ph.D.
EXAMPLE: The competition between
Coke and Pepsi makes consumers
more cola conscious. The best
location for Burger King is often
across the street from McDonalds.
11: The Law of Fellowship
35. Prof. Sameer Mathur, Ph.D.
“One Of The Fastest
Routes To Failure Is
Giving A Brand A
Generic Name”
12: The Law of The Generic
36. Prof. Sameer Mathur, Ph.D.
A generic name makes it tough
for a brand to differentiate
from its competitors. It lacks
Brand Identity.
Many brands have transformed
from a generic name (e.g.
General Electric) to a specific
name (GE).
Sometimes cutting a generic name
can create a good specific name.
12: The Law of The Generic
37. Prof. Sameer Mathur, Ph.D.
EXAMPLE: “Intelligent Chip
Company” is too long and too
generic a name. Everyone knows and
remembers “Intel”.
12: The Law of The Generic
38. Prof. Sameer Mathur, Ph.D.
“Brands are brands.
Companies are
companies. There is
a difference.”
13: The Law of The Company
39. Prof. Sameer Mathur, Ph.D.
Customers think about and buy
brands (e.g. Tide), not the
parent company (Proctor &
Gamble). The brand name should
get greater focus than the
company name (unless they are
the same).
Customers use the brand name to
describe the product (e.g. Do
you want to drink Pepsi?)
13: The Law of The Company
40. Prof. Sameer Mathur, Ph.D.
EXAMPLE: Customers think about and
buy Tide (the brand), not the P&G
(the parent company)
13: The Law of The Company
41. Prof. Sameer Mathur, Ph.D.
“What Branding
Builds, Sub-Branding
Can Destroy”
14: The Law of Sub brands
42. Prof. Sameer Mathur, Ph.D.
Sub-brands can erode the power
of the brand by creating
confusion. They can adversely
impact the positioning of the
brand in the minds of the
target consumers.
For example, Waterford is the
leading Irish crystal maker.
Introducing “cheap” Waterford
as “Marquis by Waterford”
dilutes the Waterford brand.
14: The Law of Sub-brands
43. Prof. Sameer Mathur, Ph.D.
EXAMPLE: Consumers could get
confused about the different
Holiday Inn sub-brands and how
they are positioned.
14: The Law of Sub-brands
44. Prof. Sameer Mathur, Ph.D.
“There Is A Time And
Place To Launch A
Second Brand”
15: The Law of Siblings
45. Prof. Sameer Mathur, Ph.D.
Sometimes it is good to create a
family of brands – sibling
brands.
The second brand should not
detract from the parent brand.
It could focus on a new
subcategory within the same
product family. Each sibling
should be different and distinct
in its own right.
15: The Law of Siblings
46. Prof. Sameer Mathur, Ph.D.
EXAMPLE: Time Inc., the world’s
largest magazine publisher has
many separate, sibling
publications: Time, Life, SI,
Money, People
15: The Law of Siblings
47. Prof. Sameer Mathur, Ph.D.
“A Brand’s Logo Type
Should Be Designed
To Fit The Eyes.
Both Eyes.”
16: The Law of Shape
48. Prof. Sameer Mathur, Ph.D.
A logo should be a combination
of a trademark and the name of
the brand, set in distinctive
type.
A logo should be horizontal;
legible; need not be accompanied
by a symbol.
16: The Law of Shape
49. Prof. Sameer Mathur, Ph.D.
EXAMPLES: Some of the world’s
best logos
16: The Law of Shape
50. Prof. Sameer Mathur, Ph.D.
“A Brand Should Use
A Color That Is The
Opposite Of Its
Major Competitor”
17: The Law of Color
51. Prof. Sameer Mathur, Ph.D.
Color can help to make a brand
distinctive. Focus on the
identity and mood that the brand
should create. Accordingly,
choose the best color possible,
but if there is another brand
with that color, choose the
opposite color. Usually, having
one, basic color (red, blue,
green, yellow) is better than a
mixed color or a combination of
colors.
17: The Law of Color
52. Prof. Sameer Mathur, Ph.D.
17: The Law of Color
EXAMPLE: Coke is primarily
red, while Pepsi is primarily
blue.
53. Prof. Sameer Mathur, Ph.D.
“There Are No
Barriers To Global
Branding. A Brand
Should Know No
Borders”
18: The Law of Borders
54. Prof. Sameer Mathur, Ph.D.
A global brand should have a
narrow focus and consistent
message, but account for the
perceptions of its country of
origin.
Regardless of where a brand
originated or is produced, the
name and the associated
connotations determine its
geographic perception.
18: The Law of Borders
55. Prof. Sameer Mathur, Ph.D.
EXAMPLE: Honda is perceived as
Japanese; Microsoft is perceived
as American; Haagen-Dazs is
perceived as Scandinavian
(although it is American)
18: The Law of Borders
or
56. Prof. Sameer Mathur, Ph.D.
“A Brand Is Not
Built Over Night.
Success Is Measured
In Decades, Not
Years”
19: The Law of Consistency
57. Prof. Sameer Mathur, Ph.D.
Being consistent over time and
limiting the scope of the brand
is the key to successful
branding.
A brand cannot get into the mind
unless it stands for something.
Markets may change, but brands
should not be changed.
19: The Law of Consistency
58. Prof. Sameer Mathur, Ph.D.
EXAMPLE: BMW has been “The
Ultimate Driving Machine” for
30 years.
19: The Law of Consistency
59. Prof. Sameer Mathur, Ph.D.
“Brands Can Be
Changed, But Only
Infrequently And
Only Very Carefully”
20: The Law of Change
60. Prof. Sameer Mathur, Ph.D.
Brands should be changed
infrequently and cautiously.
There are three situations in
which brands should be changed:
- When a brand is non-existent
in the minds of consumers
- When a brand needs to be moved
to a lower price and perception
- When a brand is in a category
where change occurs slowly
20: The Law of Change
61. Prof. Sameer Mathur, Ph.D.
EXAMPLE: Marlboro lowered the
price of its cigarettes over time
to gain market share
20: The Law of Change
62. Prof. Sameer Mathur, Ph.D.
“No Brand Will Live
Forever. Euthanasia
Is Often The Best
Solution”
21: The Law of Mortality
63. Prof. Sameer Mathur, Ph.D.
Brands have a life cycle. They
are born, grow up, mature and
eventually die.
Companies sometimes waste
millions trying to save a dying
brand. A well-known brand that
doesn’t stand for anything has
limited value. A brand that
stands for something but is not
well-known has value because
there is the opportunity to
create a powerful brand.
21: The Law of Mortality
64. Prof. Sameer Mathur, Ph.D.
EXAMPLE: Blockbuster became a
leader in video rentals.
Subsequently, with the rise of
Video on Demand, Netflix and poor
management, its revenues
declined. Finally, it filed for
bankruptsy in Sept 2010 and was
acquired by Dish Network.
21: The Law of Mortality
65. Prof. Sameer Mathur, Ph.D.
“The Most Important
Aspect Of A Brand Is
Its Single-
Mindedness”
22: The Law of Singularity
66. Prof. Sameer Mathur, Ph.D.
The most important aspect of a
brand is its singularity. What is
a brand? A singular idea or
concept owned inside the mind of
the prospect. If it is too many
things at once, it is confusing
and can become worthless.
22: The Law of Singularity
67. Prof. Sameer Mathur, Ph.D.
EXAMPLE: Volvo has stuck to the
singular concept of burning into
the minds of consumers that it is
the safest car on the road.
22: The Law of Singularity