Branding is a hot topic these days. It's not only related to products, but to the "brand" of celebrities, political campaigns, and even cities. What is a brand anyway? In this article Tim Robertson discusses what makes a great brand in the first place, and how the principles - and the value - of branding can be applied to any organization.
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In March 2005 I was sent by one of Canada's economic development agencies to create a branding program for one of the leading business colleges in the Russian Federation. Nizhny Novgorod is Russia's third largest city with over 2.5 million people. Perched above the union of the Volga and Oka rivers, it has over 12 educational institutions, its own kremlin, opera house, ballet, and symphony.
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The country was embroiled in a civil war. My view outside the window was of the Indian Ocean and the remains of the Central Bank building, destroyed only a year before by a truck bomb that killed and maimed over 150 people. Across the street they were putting the finishing touches on the reconstruction of a hotel lobby that was blasted by another terrorist action. Was this assignment a such good idea?
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The Cup of Coffee Brand Premium Comparison Method

What is the cost of a weak or irrelevant brand?
Branding is a topic that inspires much intellectual debate and discussion. But what is the actual dollar value of a good brand, or for that matter, your brand? We like to remember what a science teacher of ours always said - “Measurement eliminates argument.” How much is your organization losing on each sale or service charge without the benefit of a brand premium?

The chart below shows an example of brand value for a coffee from a weak brand versus one from a premium brand. It’s important for you to prepare the same type of comparison for your own organization’s service or product. What premium is available to you, and what potential additional revenue are you missing out on?.


Commanding a premium
Obviously this is a simplified comparison. Acme coffee may be very cheap, and Starbuck’s costs might be higher. But on a percentage basis, the brand get’s a higher margin.



This is a great “back of the envelope” way to simplify the brand argument. Coming up with a rough figure for the brand premium you are not getting will help to galvanize your efforts and focus on what branding is ultimately about, and that is to command a premium.

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©Copyright 2006 Tim Robertson