All India State Government Employees' FederationAll India State Government Employees' Federation
Logo

 



New Branded World

Noami Klein in her NO LOGO has brilliantly explored another very essential mechanism of winning the consumer world by branding the products. It is a well-conceived primer on the mechination of the modern consumer world and a brilliant account of how Nike, Starbucks, McDonalds etc branded the world which stands out as the potential monster that imperialist globalization and along with it cultural homogenization has created. In a world of MNCs and triumph of finance capital the technique puts profit before basic human needs and human values and a spell of crazy consumerism has been released with mesmerizing effect on the people who can spend. The authoress finally puts in perspective how the newest generation of fed-up consumers and anti-capitalist activists will move for a revolt.   

Noami Klein begins, ‘The astronomical growth in the wealth and cultural influence of mjlti-national corporations even the last fifteen years can arguably be traced back to a single seemingly innocuous idea developed by Management Theorists in the mid-1980s, that successful Corporations must primarily produce brands as opposed to products….. until that time, although it was understood in the corporate world that bolstering one’s brand name was important, the primary concern of every solid manufacturers was the production of goods’. (p.3, emphasis added). 

What is the difference between advertising and brand naming? ‘Advertising any given product is only one part of branding’s grand plan, as are sponsorship and logo licensing.’ The authoress makes it more clear “Think of the brand as the core meaning of the modern corporations and of the advertisement as the vehicle used to carry that meaning to the world (p.5). Currently the advertising industry has registered an unimaginable growth. “The advertising industry’s astronomical rate of growth is neatly referred in the year to year figures measuring total advertisement spending in the US, which have gone up so steadily that by 1998 the figure was set to reach $ 196.5 billion while global ad spending is estimated at $ 435 billion. According to the 1998 United Nations’ Human Development Report, the growth in global ad  spending “Now outpaces the growth of the World economy by  one-third” (pp.8,9).

Noami traces the rapidly accentuating process of selling brands and a number of brands spread worldwide and generating huge profits. She mentions, “……there were the companies that had always understood that were selling brands before products. Coke, Pepsi, McDonalds, Berger King and Disney were not fazed by the world crisis, opting instead to escalate the brand war, specially they had their eyes firmly fixed on global expansion. They were joined in the project by a wave of sophisticated producers/retailers who hit full stride in the late eighties and early nineties….. The Starbucks Coffee Chain, meanwhile was expanding during this period…. It was spinning off its revenue into a wide range of branded projects. “Starbucks airline coffee, office coffee, coffee ice cream, Coffee Beer.” (pp.17, 20).

Scott Bedbury, Starbucks Vice-President of Marketing openly recognized that ‘Consumers doesn’t truly believe there’s huge difference between products, which is why brand must ‘establish emotional ties’ with their customers through “the Starbock experience” The people who line up for Starbucks, writes CEO Howard Sclultz, are not just there for the Coffee. ‘It is the romance of the Coffee experience, the feeling of warmth and community people get in Starbcks stores’ (see Noami p.20).

Interestingly, before moving to Starbucks, Bedbury was head of marketing of Nike, another brand name, where he oversaw the laurel of the “Just do it” slogan, among other watershed branding movement. He explains the common techniques used to infuse a very different brands with meaning;.

“Nike for example” is leveraging the deep emotional connection that people have with sports and fitness. With Starbucks we see how Coffee has woven itself  into the fabric of people’s lives, and that is far appealing for emotional leverage. A great brand raises the bar – it adds a greater sense of purpose to the experiences whether it’s the challenge to do your best in sports and fitness or the affirmation that the cup of coffee you are drinking really matters’ (p.p. 20& 21).

The following passage will provide a cleaner understanding of secrets of brand war.

Reports of such “brand vision” epiphanies began surfacing from all corners. “Polaroid problem.” diagnosed the chairman of the advertising agency, John Hegarty “ was that they kept thinking themselves as a camera. But the brand vision process taught us something: Polaroid is not a camera – it’s a social lubricant, ”IBM isn’t selling computers, it’s selling business “solutions”. Swatch is not about watches, it is about the idea of time. About Diesel Jeans, owner Renzo Rosso told Paper magazine, “we don’t sell a product, we sell a style of life. I think we have started a movement…..The Diesel concept is everything. It is the way to live, it is a way to wear, it’s the way to do something.” And as Body Stop founder Anita Roddick explained her stores aren’t about what they sell, they are the conveyers of a grand idea – the political philosophy about women, the environment and ethnical business…..it wasn’t meant to better this to  stand on the products to shout out on these issues. …… The famous late graphic designer Thor Kalman summed up the shushing rate of the brand this way . “The original  notion of brand was quality, but new brand is a skyli___ badge of courage” (pp 23-24).

And the idea of selling the courageous message of brand as opposed to products, intoxicated the owners, as it provided limitless expansion of business and profit without having gone for the product.

But what about the production for which brand was finally going on?  True the brand owners do not go in for by themselves, but products have to be that for which the brand name is sold. The multinational companies owning brands  like the Nike, the Gap and Liz Claiborne and others got their products manufactured not in their own countries, but in very very low paid third world countries like Indonesia, Philippines, Bangladesh, Uruguay etc. etc.. They get the products done through their local contractors who get it manufactured through their sweets shops where workers are mostly women and children without any statutory limit of workers or without any obligation to pay a minimum pay of national average. The workers are forced to work overtime for long hours without any legal rate for their over works. Noami Klein cited some examples in Indonesia and Philippines where the women workers were fired in batches whom the considered trouble makers, because the country’s trade union laws do not operate there. Normally, the average pay of these workers are equivalent to US $ 2 per day or even less. They have no right to raise their voice against it. And ­­the pitiable condition of their accommodation is beyond description. Most surprisingly Noami informs her wide ranging investigation world wide, way brand companies do not possess a single production unit anywhere in the world, though they market their products world wide. For example she cites that the Nike selling footwear  and sport wears and other converted goods do not own even a single body anywhere in the world, except one small unit for technological purpose. All products are manufactured in sweet shops in third world countries and sell them world wide gaining profits astronomical figures. Similar is the condition with most other brand names for selling garments and other consumer goods. So Noami concludes ‘It would be naďve to believe that Western Consumers haven’t profited from these global business since the earliest days of colonization. The third world, as they say, has always –exerted  for the comfort of the First’ (p.xviii) --------------.

<< Back ||  Next >>

 

.

All contents Copyright © 2003, TUI.  All Rights Reserved.