The Business Book

260

B

rands are how organizations

make their product or

service stand out from

the competition. In ancient times,

cattle and slaves were branded to

show ownership, and in the Middle

Ages paper manufacturers could

be identified by a watermark in the

paper. However, our modern idea

of the brand—which includes every

part of the perceived identity of

a company, from logo to affiliations—

did not emerge until the mid-to-

late 19th century.

The increasing number of

middle-class, literate consumers

in Western societies were able for

the first time to choose from a

range of items rather than buy from

necessity. In the US and Europe, as

the supply of packaged goods

continued to grow, manufacturers

saw the importance of differentiating

their products. Coca-Cola launched

in 1886 with its name in a

distinctive script, backing up the

brand 30 years later with a now-

famous contoured bottle. Quaker

Oats used a man in Quaker

clothing on its 1896 advertisment,

holding a package of oats in one

hand, and a scroll saying “Pure” in

the other. Clothing manufacturers

such as Levi’s began to stamp their

name on products. These companies

were seeking to build a direct

relationship with the customer.

The dawn of advertising

Brands took off in the 1950s, when

there was a postwar boom in mass

production and televisions became a

common item in homes. Businesses

such as Unilever and Procter &

Gamble began to create identities

for otherwise indistinguishable

soaps and laundry detergents. They

needed to package their product so

that consumers would reach for it

CREATING A BRAND

A person or company

has an idea that

is different.

Vision and values form

part of the idea.

These are integrated into

one “personality” for the

product or service.

The brand stands out

because its positive

differences from the

competition are clear.

Packaging and

promotion communicate

and reinforce the

brand image.

In this way, the idea

and all its elements

become the brand.

IN CONTEXT

FOCUS

Brand creation

KEY DATES

1850s During the industrial

revolution products are mass-

produced for the first time, so

supply outstrips demand.

1880s and 90s In the US and

Europe, brand names—

including Coca-Cola, Kelloggs,

and Kodak—become popular

for promoting products.

1950s TVs become popular in

the home, providing a new way

for companies to send sales

messages to the mass market.

2002 The average number

of brands in a US supermarket

is 32,000, compared to

20,000 in 1990.

2013 Brand advocates—

members of the public who

recommend products or

services online—are

estimated to number 60

million in the US alone.

Products are made

in the factory, but brands

are created in the mind.

Walter Landor

German brand expert

(1913 –95)