PERFECT 10: The Brand Report Card
Kevin Lane Keller’s The Brand Report Card suggests that ten specific characteristics of the world’s strongest brands can be used to predict brand success for all brands and a brand report card can be used to “grade” brand performance. By objectively and holistically considering a brand’s strengths and weaknesses, brand managers will be able to clearly identify what areas need improvement, what areas are driving brand equity, and know all the moving parts of a brand. The top ten winning traits of a brand that comprehensively addresses what the best brands have in common are something that I agree with, with a few caveats. It is my firm belief that nothing in work and life is perfect, but Keller’s brand report card comes damn close.
Keller’s first trait for grading brands is whether a brand “excels at delivering the benefits customers truly desire” (2000). Every brand manager should focus on consumer needs, because if they are not then they are probably focusing on the myopic view of developing product features. Remember this, “Features tell, but benefits sell.” One brand that truly sells its benefits to customers is Apple. Apple started with having connectivity between Apple iPhones and iMacs but has since evolved into a robust ecosystem where all of Apple’s products seamlessly communicate with one another making the customer’s lives much simpler (Viticci, 2018).
“In strong brands, brand equity is tied both to the actual quality of the product or service and to various intangible factors” (Keller, 2000). Relevance can be crucial for a brand to connect with its audience. However, this search for relevance can land a brand in trouble. When done correctly, great commercials can draw lots of praise, but it can also go horribly wrong when done incorrectly. Gillette’s recent “We Believe” ad decided to tackle toxic masculinity (McCluskey, 2019). Certainly, its brand manager wanted to stay relevant at a time where the “Me Too” movement, bullying and toxic masculinity were in the headlines. However, the controversial ad generated much backlash against the brand for associating itself with a political issue. Does the commercial live up to Gillette’s slogan, “The best a man can be”? I would contend any media that can damage a brand’s image and equity needs to be approved by a board before its release.
Kelly’s next three brand characteristics; the pricing strategy is based on consumers’ perceptions of value, the brand is properly positioned, and the brand is consistent are all very agreeable and should be followed by any marketing manager wishing to succeed in a competitive marketplace. In fact, I would contend that these three factors are crucial to be even considered a competitor in a crowded marketplace. Starbucks is known for premium pricing of their coffee and their brand proposition is that they are selling an experience which in turn shifts consumer perception of value (O'Farrell, 2019). Similarly, Starbucks was able to use this strategy along with barista service and top of the line coffee flavors to definitively position their brand as superior to Dunkin’ Donuts. Starbuck’s brand mission is consistent, “To inspire and nurture the human spirit – one person, one cup and one neighborhood at a time” (Starbucks, 2019) If any of these three elements were missing, I don’t think Starbucks would have ever left Seattle.
The final five traits in Kelly’s brand report card include having a brand portfolio with a hierarchy that makes sense, a full repertoire of marketing activities to build equity, an understanding of what the brand means to consumers, long-term brand support, and monitoring sources of brand equity. While each of these are very important to a brand, I will explain why I think having brand portfolios and hierarchies make absolute sense. Hierarchies will be a stop gap measure for any cannibalization that occurs between two similar brands in the same portfolio. “Make sure you are doing something legitimately different” (Anthony, 2011). By providing different marketing channels and strategies to each brand, one may be able to counter any cannibalization. Finally, it may be impossible for a brand manager to capture all these elements and have a perfect 10 report card, but there is nothing wrong in trying. Heck, they may be a 10!
References
Anthony, S. D. (2011, Feb 18). Combating Cannibalization Concerns. Retrieved from Harvard Business Review: https://hbr.org/2011/02/combating-cannibalization-conc
Keller, K. L. (2000). The Brand Report Card. Harvard Business Review, 3-10.
McCluskey, M. (2019, Jan 16). Gillette Makes Waves With Controversial New Ad Highlighting 'Toxic Masculinity'. Retrieved from Time.com: http://time.com/5503156/gillette-razors-toxic-masculinity/
O'Farrell, R. (2019, Apr 25). Starbucks Pricing Strategy. Retrieved from Chron.com: https://smallbusiness.chron.com/starbucks-pricing-strategy-10544.html
Starbucks. (2019, Apr 25). Our Mission. Retrieved from Starbucks.com: https://www.starbucks.com/about-us/company-information/mission-statement
Viticci, F. (2018, Mar 22). Erasing Complexity: The Comfort of Apple's Ecosystem. Retrieved from MacStories.net: https://www.macstories.net/stories/apple-ecosystem-comfort/