The Business Book

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relaxing leather sofas, comfy chairs,
and freely available newspapers. In
the 1990s, the rise of the coffee bar
on street corners became a social
phenomenon that spread from
North America to Asia, Europe, and
beyond, because they met people’s
needs for a friendly gathering place.

Ethics and branding
Anita Roddick started the cosmetics
store The Body Shop in the 1970s
when her husband was traveling
across the Americas, and she
needed to support herself and her
family while he was away. She had
little business experience, but had
a gut instinct that her products
had to be different to sell. Mass
production had brought choice
to consumers, but interest in
the sourcing of ingredients, how

products were made, and broader

ethical issues was growing.

Roddick sold natural products in

refillable bottles, and aligned the

brand with a number of causes.

The Body Shop became globally

successful because it was uniquely

associated with social responsibility;

respect for human rights, the

environment, and animal protection;

SUCCESSFUL SELLING

and fair trade for suppliers.

Despite the strength of branding,

there has been a backlash against

the dominance of some brands.

Naomi Klein’s 1999 book No Logo

sparked the no-brand movement,

which highlights globalization and

the exploitation of workers in less-

developed countries who make

branded goods, such as sneakers.

Japanese retailer Muji has

consistently followed a no-brand

strategy. At the heart of its ethos

is kanketsu (“simplicity”). Product

packaging is plain and the

company spends little on marketing

of advertising, relying on word of

mouth. Ironically, this has served

to differentiate the company and its

products, creating a loyal following.

Today, technology is changing

the way that consumers perceive

brands. Social media and the

Internet encourage consumers to

share feedback and interact. Big

global brands, such as Apple, can

influence consumer behavior and

have the potential to change society.

But organizations also recognize

that consumers have greater choice

than ever before, and are focused on

creating brands that can engage

with them on a personal level. ■

The Starbucks brand is instantly
recognizable. In the 1990s Starbucks
marketed itself as a relaxing spot
between work and home, as well as
a place to drink fresh coffee.

REVENUE POTENTIAL

LOYALTY

Bonding

This is definitely my kind of brand.

Advantage

I can see how this brand fits me better than others.

Performance

How well does it compare

with other brands?

Relevance

Does this brand fit my

needs and budget?

Presence

I have noticed

the brand.

The brand pyramid
was created by the
consulting company
Millward Brown in the
mid-1990s to illustrate the
five key stages of building
customer loyalty. Revenues
increase as customers move
from an awareness of the product
to complete commitment.