Monday 8 September 2008

No Logo -> chapter 01 summary.

This chapter talks about how the focus changed from single products and selling them, to creating a brand (image) and selling the products as a lifestyle. Before this switch could be made, the products made and the way of manufacturing products changed, we can see mass production appearing. Due to mass manufacturing, many different companies made the same product, so the companies had to come up with a different way to stand out. Instead of focusing on the product, they decided to focus on the brand and giving it an identity. Companies started buying other companies for their name (their reputation and image) in the 1980's. This idea was triggered when Kraft was bought for 6 times its value. In the 1990's some brands had a downfall. It seemed that some people where going for price instead of the brand, so some brands, like Marlboro, decided to spend their money on reducing prices instead of further creating their brand name, people started saying brands were dead. This idea started as "Marlboro Day," since that day Marlboro cut its prices to compete with other no-name cigarette companies. But not all companies followed Marlboro, some companies like Starbucks went for market over value, and never felt the impact of this crisis. In the end it wasn't a real brand crisis, it was only brands that had a confidence crisis, but most of them restored their former glory. The companies figured that they could sell many different products under one brand, and that they can brand everything. The key to creating a brand, was creating a connection between the brand and the costumer.

No comments: