What is in a name?

July 29, 2008 at 3:02 pm | In Advertising, Branding, Brands, Intellectual Property, Marketing, Science | 3 Comments
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Today, I tried the new search engine which is being positioned as a competitor to Google. Its called ‘Cuil‘ and is supposed to be a word which sounds like ‘Cool’ or more so ‘Kewl’. I was disappointed.

The first thing I tried searching on Cuil was my name; ‘Anand V Rao’ and unlike Google which shows search results which lead to my blogs, Cuil came up with links about somebody’s husband who had a name like mine. I am still very much single. You can call me a narcissist that the first thing I searched for was my name and when I did not find it, found the website disappointing. But hey, I am not the only one. Others also have seem to have done the same thing and have had the same results. 

This brings me to the point I wanted to make about the importance of names and more specifically to the ‘Brand Value’ they represent. A name or a trademark is something which identifies a particular entity and is amongst the most important factors which is associated with it. It has been long discussed in scientific journals dealing with neuroscience that the brain works by forming association. Recognition or cognition is a faculty which we possess and the brain performs this function by forming associations with other memories and the process of recognition happens. Hence a name or a trademark is something which helps us humans create an association with the product, service or experience and helps us recognize it.

This is something which is very clear to the marketing community. In order for them to make a sale, it is necessary that the entity being sold is recognized and hence the requirement of a name. And since the marketing goal is to make this sale increase, it is required that the product be ‘recognized’ better than any other product. Hence the creation of brand identities. I came across this wonderful website called Brand Tags which is essentially a project which tries to find out what people associate a particular brand with. For instance, the website asks its viewers to mention what is the first thing that comes to their mind when they see the name/trademark of a brand. It then displays the results in a cloud format, with the most commonly associated words appearing big. For Ikea, the most common associations are furniture, cheap and Swedish. So Ikea as a brand has succeeded in making people associate their brand with furniture that is cheap. So unsurprisingly, around the world the best choice for people’s need for cheap furniture is satisfied by Ikea.

The power of the brand name is something which most marketing students and professionals are taught early in their careers. An interesting example of this is mentioned about the rise and fall of the brand names in the pharma industry. In an article for the WIPO (World Intellectual Property Organization) Magazine, author John Fidelino asks,

Whats in a name? Sometimes the health of the corporate balance sheet

The article is an interesting read about how the pharma industry products have moved from having names which only doctors understood (Anafranil, Ritalin) to what people can understand, thereby creating the essential ‘association to recognition’ connection with the pills. The article talks about the new and emerging trends in the way medicines are named in the post Viagra era – Viagra being one of the most successful brand names.

 

Trend 1: The Pharma 2.0 name

In lieu of creating “phashion” names, some manufacturers have returned to the scientific underpinnings of their molecules as their source for inspiration – but with a new twist. Rather than the generic-sounding, chemical type name of the past, the new names make the molecules sound provocative and rather sexy. GSK’s breast cancer treatment, Tykerb (generic name lapatinib), for example, plays off its classification as a tyrosine kinase inhibitor. Pfizer’s Sutent, used to treat certain cancers of the kidney and digestive system,encodes its own generic name, sunitinib. Their short and quick rhythms evoke a sense of power, while their unusual choice of letters cuts through the copious aspirational names. These “pharma 2.0” names do not intend to make you feel comfortable about the science; they make you appreciate the science. By embracing the molecule, they inspire confidence in the compound’s ability to address a physiological need, while by expressing the molecule unconventionally, the names represent the promise of pharmaceuticals. The pharma 2.0 style allows the industry to project a sophisticated, technology-based image, more appropriate for the innovations it offers.

Trend 2: The scientific story name

In the past, if manufacturers weren’t referencing its chemical background, they would name a product according to its indication. This would help orient people as to what they were prescribing the drug for. But the name of the drug would be a constant reminder to the patient of the affliction (e.g., Arthrotec for rheumatoid arthritis, Cancidas for candida infection, Hepsera for Hepatitis B). While past efforts to overcome stigma resulted in the aspirational name, more recent names side-step the condition and the treatment benefit altogether, focusing instead on how the product works. For example, Pfizer’s Selzentry or Celsentri (generic name maraviroc) speaks to how the drug works to block HIV from entering human cells (viz. cell sentry). Unlike the pharma 2.0 style, scientific story names are more familiar sounding. They leverage real language, but in service of expressing the drug’s mechanism.

Trend 3: The anti-pharma name

Given its battered reputation, some manufacturers have abandoned linking to the industry altogether. These companies are creating names that don’t so much seek to differentiate, as to annihilate any benchmark for comparison, and in that way subvert the credibility question. They do this primarily by co-opting naming constructs from other product categories. Novartis’ Exforge (generic names amlodipine and valsartan), for example, parallels the naming of sports utility vehicles (SUVs) to result in a brand that sounds able to tackle high blood pressure like an all-terrain vehicle can wrangle a mountain. Anesiva’s Zingo, a needle-free injection system for administering lidocaine powder, is named with a light touch that makes it sound like child’s play ­–– appropriate for a rapid local analgesic for kids. By reflecting other product categories these names telegraph emotional experiences without articulating an aspirational promise

It is very interesting to see how the pharma brand names have evolved to help conumers associate with them. I did a small survey of some Indian pharma brands to see if this was prevalent here too. An example is the case of cough syrup. The famous Benadryl is still famous today, but new brands like Koflet are also making inroads into the consumer mindset. Products like Dettol which gets its ‘ol’ from its chemical composition parachlorometaxylenol is now facing competiton from hand hygiene products like PureHands.

The name, therefore has a lot to do with the entity. On a different genre, interstingly, according to the Brand Tags website, what people associate with the word ‘Virgin’ the most is Richard Branson!

I am sure Mr. Branson would be most pleased with the success of his brand, but I am sure he would not want the brand name to cease to exist after his passing. It may be time for him to find something else people associate with the word ‘Virgin’ other than him, that is just as flamboyant as him. I wonder what or who that could be?       

Olympic Mascots…

July 24, 2008 at 1:33 pm | In Advertising, Branding | Leave a Comment
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Why do the mascots for the Olympic Games suck? Most of the the mascots for the summer Olympic games fail to impress me. As a hobby, I follow mascots for various sporting events around the world. The mascots for the 2008 Beijing Olympics are called ‘Fuwa’ – five mascots which represent traditional Chinese elements of fire, wood, water, gold and earth. But I just don’t find these five interesting or cute enough.

This mascot business is a very interesting one for the marketing and branding community. They are veritable brands of an event and can be something which people will remember long after it is over. They are also a super source of revenue, if they can be properly merchandized, riding on the frenzy around such events. But one of the most important factors which will fuel this frenzy is the ‘cuteness’ of the characherts. These characters need to ‘connect’ with people around the world. But most of the time, countries decide to make the mascots represent some deep connection with their nation’s ideaology and in the process end up creating duds. I am not saying that the mascot should not be made to represent the hosting country’s symbolism. After all it is a grest source of pride and accomplishment for the country which hosts popular international sporting event like the Olympics. But, when these mascots become rather esoteric, and something other people around the world cannot connect with (sometimes even in the people in the host country cannot easily connect with), then there is a tremendous loss of an opportunity. 

Now, not everybody shares this opinion about the Fuwa. Many designers and brand consultants in China have expressed that they are mainly aimed at kids and these will attract that demographic. But I disagree. These look just like Pokemon characters and with little differentiation the characters will not remain in the minds of these kids for too long. Apparently, the creator of the Fuwa suffered two heart attacks while creating the mascots. Also in China, people have now started associating the mascots with the natural and man made diasaters which are plaguing their country!

If you ask me, the last Olympic mascots for the games in Athens were worse. I dont even remember the girl and boy called Athena and Phevos who are kids dressed in ancient greek costumes. The Sydney olympics were better with Olly, Syd and Millie all of whom are still relatively famous. Especially Olly the bird. My favorite is the 1984 Los Angeles mascot Sam the Eagle who also has a lot of charisma to this day!

Stumble Upon a pot of Gold!

June 19, 2008 at 2:46 pm | In Advertising, Branding, Internet, Marketing | 1 Comment
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I have recently installed the now famous Stumbleupon toolbar on my internet explorer, and man! is it addictive! All I have to do is indicate what my preferences are and voila! I can be directed to very interesting websites I never knew existed! This works very well when you have sometime to kill; you have finished reading all the updates on the regular sites you usually visit and don’t know what to find on the internet. (Ofcourse, Stumbleupon is not a substitute for going outdoors or reading a book, when one has time to kill; but it defenitely makes sense when its pouring cats and dogs, especially in Mumbai, where one dares not venture far from home, during the rainy season)  

Stumbleupon is a very powerful tool according to me. Google currently makes money by putting up contextual advertising on the website based on one’s search queries. The things one searches for on the net are varied and the reasons for the search are also different. And this is the main problem preventing Google from becoming the ‘BEST EVER’ advertising medium. Google knows what you are searching for, so they place ads for products/services/experiences which they think you might be interested in based on your search. But because most people who are searching may not be interested in purchasing this product/service/experience and only want to know somethings about it, the advertiser may not get ‘conversions’ while he does get visibility. But, as the marketing dollar on the internet is cheaper than other mediums, the ROI is the achievement of higher visibilty.  Over time, and if you use gmail, Google gets to know what kind of business you are in, based on the email conversations you have and are able to send you more targeted advertising. This vastly helps the advertisers; if you were to send an email to your friend about her new ipod asking her what price she bought it for, google will be able to put up advertisements of various ipod deals available on the internet.

This is typically an example of the depth of a person’s interest phenomenon. If you were to visit a search for ‘fountain pens’ on google, you might be able to see the Wikipedia link first, followed by other links to makers of fountain pens. Many people are typically using the search engine to ‘research’ the product. If so, they would visit the wikipedia entry on fountain pens and from there be led to other links. They might find out about the top brands and make a note of this and later purchase this from a stationery store in their city. By not visiting the sites of fountain pen sellers on the internet, the advertiser’s dollar spent on the google ad does not have a direct ROI. Sure, the brand of the advertiser may have been visible, but the internet is not the best medium to make one aware of the brand.

Imagine now, if Google actually knew your preferneces and an advertisement of the fountain pen were to come on a website where one is reading up on fountain pens. This I beleive would pique the interest of the surfer. If the person is internet savvy, this might be a better platform for realizing a purchase; if not, the surfer may go and buy the product from a brick and mortar store, but the marketing association which triggered the purchase could be linked to the above contextual ad. 

This is the exact functionality StumbleUpon can make use of. If Google can tie up with StumbleUpon and based on the inclination of the particular stumbler, whose preferneces have been identified gathered upon through analysis of the kind of sites he prefers to ‘StumbleUpon’, deliver contextual advertising on that site, it would be a great step forward towards targeted advertising. It’s Google Adsense, with an intermediary preference filter called StumbleUpon. The algorithm for Adsense depends on the content of the website – not the preference of the surfer visiting the website. The magic of targeted advertising would be phenomenal if the algorithm for Adsense actually captured the preferences of the surfer!

StumbleUpon’s current revenue model is selling its subsriber’s occasional stumbles to a website for a fee. If a website wants to ’StumbledUpon’ a certain times in a day, they have to pay StumbleUpon a fee and the website will deliver on this numbers. If the google tie up can be worked out, another revenue model could be on the number of users delivered to a particular website through the StumbleUpon toolbar. If the nuances of this can be worked out, it would defenitely be a move towards mass customized advertisements!    

‘Green’ Marketing

March 25, 2008 at 6:05 pm | In Branding, Environment | Leave a Comment
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An idea which has come of age is that of ‘Green Marketing’. This consists of the marketing of products which are environmentally friendly. The scope of this includes not only the communication process which needs to be specially focussed on promoting the product as being environmentally friendly, but also the necessary product and process modification so as to actually make the product ‘Green’. Today, awareness about global warming and eco consciousness is at an all time high. With the massive deforestation of the rain forests and the rapidly eroding greenery in our cities and countryside the eco systems of our neighbourhoods are changing for the worse. Under such circumstances, ‘Green Marketing’ is a way for companies to at least partially follow a ‘blue ocean strategy’.

To quote an example, consider the case of electronic component manufacturers in India who are a part of a global supply chain. They are suppliers to various companies in Europe and America, where it is now illegal to have electronic items which have certain levels of hazardous chemicals. The electronic product manufacturers are governed by directives like RoHS which stands for Restriction of use of certain Hazardous Chemicals.  This law which came into effect on 1st July 2006 prohibits any electronic product to be sold in the market which fails to comply with the standards as described in the RoHS directive. In an industry that is dependent on the assembly of components sourced effectively by the diverse supply base, these laws have implications which are far flung.  These and other such laws also offer a unique opportunity for companies to gain competitive advantages over others by being the first to organize the supply chain to be able to cope with the requirements. Many Indian electronic component manufacturers, who previously found themselves in a tough position wrung by all the proverbial five forces described by Michael Porter, in the wake of stiff price competition from Chinese manufacturers, have used this opportunity to find themselves a ‘blue ocean’ to regain their market competence.

‘Green Marketing’ is essentially a way to create a point of differentiation for one’s products. Companies which can successfully brand themselves as a ‘Green’ company and at the same time successfully integrate their supply chains to cope with the requirements of producing a ‘Green’ product can gain a sustainable competitive advantage in the market place of the near future. This will require significant investment in research of both product development and supply chain integration and also in effective communication strategy. An example of this would be the investments made by Toyota Corporation in the hybrid cars division.

Unlike many horizon planning strategies which are followed by companies, where the investments in research for the future may not always be passed on to current customers, the scope and scale of investment required for ‘Green’ products may necessitate such a measure. Successful ‘Green’ marketers will be those who will be able to identify the opportunity costs involved and avoid making the current generation of customers bear the costs for those of the future; although it might be in the interest of the current generation of customers in the long run to do so!  

The Decision Maker

March 23, 2008 at 10:46 am | In Branding | Leave a Comment
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The famous economist Adam Smith once noted “having money gives one the ability to ‘command’ other’s labour”. This is a succinct way of explaining purchasing power and is very relevant for anyone who is trying to chart a career in marketing. Why? The answer is simple; marketing works best when those who you are marketing to, have the purchasing power, i.e. the ability to command your labour in exchange for their money.

But for marketers, is it sufficient to target those that have the money, to make a sale? Again, the ‘invisible hand’ theoretician had wise words for us. He warned us not to ignore the thrifty housewife’s contribution to the economy as she compares prices at a local store. For instance in India and most other countries of the world, men are the income earning members of the family and have the control over the expenditure of this income. But it is not difficult to observe that the majority of what the household spends on is decided by the women. So, as a marketer it makes more sense to catch the attention of the women and thereby influence those who have the control over the strings of the purse, rather than the men who may be the purse bearers. This need to capture the decision maker’s attention is a refinement over the traditional target audience definition which marketers identify while developing their strategy. If the traditional market segmentation is done based on demographic variables like age, gender, income bracket etc, the emphasis on targeting decision makers requires the marketer to create a special value proposition to those who may not be the end users, but rather the key influencers in the buying process.

Examples of this can be seen in the advertising schedules of many products and services. Advertisements for Star Cruise vacations are actually broadcast on channels like Cartoon Network and Pogo to catch the attention of children who then influence their parents to go on these vacations. The creative for a medicinal product which aids in the reduction of male pattern baldness actually addresses the woman, negotiating with her to purchase the medicine for her husband!   

This emphasis on the decision maker also necessitates a different approach to the metrics of media plan. From a traditional Opportunity to See (OTS) measure of exposure to the target market segment, marketers are now moving towards more experiential marketing platforms. The experience which the decision maker has of the product or service becomes of paramount importance and media planners now look for Opportunity to Experience (OTE) components before deciding on the marketing plans.       

For example, when Financial Times (FT), position themselves as a paper read by the CEOs, by organizing symposiums of global leaders, they are essentially conveying to their advertisers that the ‘Decision Makers’ are reading their paper and endorsing it; and hence add more value to their product. Gone are the days when the circulation and readership numbers of the newspaper, among target demographic audience could have helped attract more advertisers. If ICICI bank uses the catch line that they are ‘the most preferred bank’ among younger corporate decision makers, it is because they want other such people with high disposable incomes to bank with them.

And thus the value of the ‘Decision Maker’ is the critical variable in a marketer’s formula. Market research firms like AC-Nielsen ORG MARG now provide companies (like ICICI bank) with a Decision Maker’s Survey (DMS) to aid them in identifying the ideal channels for communicating to the ‘Decision Makers’ directly!

Dissolve like Sugar in Milk… Ideas for FMCG!

March 23, 2008 at 7:06 am | In Branding | Leave a Comment
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What is important today in terms of branding in FMCG products? With the clutter of products on display and available for consumption, there is increasingly a trend of consumer indifference towards your product. When the product life cycle is also very short, what becomes important is creating a sustainable brand. One solution for this can be explained with this story.

Legend says that when the Parsi immigrants from Iran landed in Gujarat, India many centuries ago, they approached the local King to seek permission to stay in his country. The King who was not very keen on letting foreigners to settle in his land showed the Parsi leader a bowl of milk filled to the brim and said that like this, there was no space for more people. The Parsi leader not to be outdone mixed some sugar into the milk and told the King that his people would dissolve into the society like the sugar and while remaining invisible, sweeten the whole experience!

Similar to this, what is required to help reduce consumer irritability towards FMCG products is that they need to become less in your face, but at the same time be give the consumer a sweet experience!    

 

“Branding the Zeitgeist” – Trends and implications for branding in future markets

March 23, 2008 at 5:58 am | In Branding | Leave a Comment
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The word Zeitgeist means “Spirit of the Age”. It is the adjective representative of the cultural ethos of the generation and is used to express a world view which is prevalent at a particular period of socio-cultural progression. It is an illustration of what is popular within the social context and deemed as popular culture. Brands are amongst the best symbols of the generation and branding as a faculty has also been an integral part of the creation of a generation’s identity.  This has had a profound impact on the emphasis of marketers in their branding efforts. The method of marketing to a specific generation is affecting the way we promote and sell products and services. Each generation has its own characteristics and these are leveraged by marking these targets by marketers. Branding efforts for each generation is unique in its essence, and are so designed to not only suit a particular market niche but also in their wake create a market by means of contributing to the popular culture of the generation.  Consumer behaviour which is a study of how, what, when and why people buy is also significantly influenced by the zeitgeist. The practices of studying trends always focus on understanding the shifts in preferences in consumer behaviour and seek to maximize the impact by pre-empting them. Each generation has created its own unique trait when it comes to consumer behaviour and marketing has always had to adapt to these changes. 

Popular culture has been represented in the art of the generation and this is the focus of this paper. From painting and graffiti to comic books and music; design has evolved in parallel with the generations and with advance in technology has now moved into the virtual space with the boom of the global animation industry.

 

 

 

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