Leadership brands by design

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DESIGN MANAGEMENT INSTITUTE

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Design
Management
Review

Building Leadership Brands
by Design
Jerry Kathman, President and Chief Executive Officer, LPK

Reprint #05162KAT10
This article was first published in Design Management Review Vol. 16 No. 2

Innovation in Cunsumer Goods and Brand
Copyright © Spring 2005 by the Design Management Institute . All rights reserved. No part of this publication may be
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KEYNOTE

Building Leadership
Brands by Design
by Jerry Kathman

istilling 30 years of experience,
D Jerry Kathman articulates four
timeless principles companies can
embrace to establish powerful and
enduring brands. Richly amplified with
examples, these tenets speak to the content and characteristics of effective brands, the
ways in which they are communicated and nurtured, design issues, the necessity to
innovate, and the types of relationships compelling brands have with consumers.

Why are some brands more successful After 30 years of partnering with
than others? How is it that some brands various clients, such as Procter &
can extend themselves around the world, Gamble, Hershey, Valvoline, and IBM,
as well as into other product categories, in their global branding efforts, I have
while others fail? Are brand lifecycles observed commonalities among leader-
inevitable, or do brand builders make ship brands—attributes I believe have
choices that determine their destiny? made these brands the best in their
Jerry Kathman, These questions are posed at an class. To that end, I have identified four
President and Chief
unsettled time for businesses. The principles that brands need to embrace
process of brand building continues to to achieve and maintain global leader-
Executive Officer, LPK
undergo dramatic change. Conventions ship status.
that seemed timeless only yesterday are
being retooled or abandoned altogether. Principle 1: Articulate and Inculcate
New ideas and process models are the Brand Strategy
entering the discourse. For practitioners, Leadership brands have self-knowledge
separating the verities from the vagaries and an uncanny ability to anticipate.
isn’t easy. This ability, however, is not a result of

10 Design Management Review Spring 2005

Building Leadership Brands by Design

good fortune; rather, it is the result of passionate ate consumer pull, but the benefits as well, the
commitments to understanding the strategic more leadership they will attain within their cat-
framework of the brand, as well as to planning egories. Leadership brands build a foundation
ahead. Further, when the framework is under- that leverages this deep consumer insight.
stood and the plan is articulated, it is under-
stood and embraced throughout the enterprise. The Differentiated Brand Promise
The successful transference of knowledge is as Establishing core covenants of brand meaning
critical to leadership brands as the creation of that serve to differentiate a brand on both
the knowledge itself. No brand-builder is an rational and emotional grounds is also critical to
island. creating and maintaining a
Developing brand strategy involves under- leadership position. The process
standing the meaning of the brand. The mean- of building leadership brands Four principles
ing includes dimensions of brand insight, brand includes the assignment of
differentiation, and brand elasticity. strategic equity components that brands need
that serve to separate the brand
Foundation Built on Insight from competitive offers, while to embrace
Whether developing a new brand, evolving an leveraging key motivational
existing brand, or extending a brand into new insights. to achieve and
opportunities, the foundation must be based on In the case of Pantene, the
deep consumer insight. The process of creating world’s leading hair-care brand,
maintain global
and managing the brand foundation defines the brand has created an identi- leadership status.
strategic equities and creates desire by under- ty presenting it as the authority
standing this insight. on healthy hair. Its leadership
Leadership brands are deliberate in identify- position has been achieved by delivering a bene-
ing and articulating aspects of insight that are fit tied to beauty through health. This approach
expected, yet compelling, within their category. leverages not only the established category man-
Points of category parity, such as “great taste” date based on promising beautiful hair, but has
within a food category, serve to establish critical stretched beyond this meaning to include a
must-haves in order to be credible within a par- strategic health benefit, which is a much more
ticular competitive set. Consumers tend to pur- powerful and proprietary position in this high-
chase confectionary products, for example, as a involvement category.
treat within a hectic lifestyle. Consumer insight The formalization of both features and bene-
reveals that a Reese’s Cup or Hershey’s Kiss rep- fits within a distinct personality is the corner-
resents time saved for oneself, a small indulgence stone of successful strategy and serves as the
that is satisfying not just on the intrinsic dimen- compass for all marketing activities for leader-
sion of taste, but also on a deeper dimension of ship brands. While the fundamental foundation
personal reward. The more brands understand of a brand is consistent even across diverse world
that it is not just the features of a brand that cre- markets, it is through regional tailoring that true

In-depth consumer research reveals that Reese’s success is based on Pantene’s promise of transformation is based on a strategic health bene-
dimensions of personal reward, not just taste. fit—a differentiated promise in a crowded category. The global Pantene
plan is infused with regional cultural knowledge.

Design Management Review Spring 2005 11

Innovation in Consumer Goods and Branding

global leadership may be attained. Insight and trust is established with consumers, it becomes
differentiation, with an infusion of regional and very easy to expand into all sorts of baby needs,
cultural knowledge, build leadership. including wipes, lotions, diaper bags, apparel,
and other items never before imagined for a
Elasticity of Leadership Brands brand that stood only for diapers.
The ability of a brand to capitalize on emerging This philosophy drives the brand-building
business opportunities by extending a relevant process for leadership brands and gives the fran-
strategy in areas beyond the original product is chise far more elasticity than any concept based
the hallmark of elastic brand architecture. solely on a set of rational attributes.
Leadership brands stretch their influence in a
way that is believable to the consumer based on Principle 2: Leverage the Design Franchise
a framework of consumer bene- Once you understand the meaning of the brand,
fits that deliver a fundamental you can create compelling brand expressions.
Leadership brands human value. Brand expression for a leadership brand is the
In the case of Pampers, the visual manifestation of the desired brand experi-
stretch their world’s leading diaper brand, ence. A self-evident design strategy that is
what began as a product focused expressed across time, media, and geography
influence in a on absorbency and containment builds leadership.
has now emerged as a global Design is a new frontier for many companies.
way that is mega-brand with a portfolio that Manufacturers are beginning to understand the
believable to the extends beyond the product. By role of design in the image-based global culture
creating a strategic meaning that that has emerged in the last decade. Leadership
consumer based is focused on the experiential brands leverage the design franchise because they
relationship between mom and understand that design not only expresses the
on a framework baby, the brand’s equity umbrella desired brand experience, but also creates a visual
is now much broader and rele- repository of the goodwill the brand has earned
of consumer ben- vant beyond narrow product over time. Design triggers stored memory.
features. The link between memory and design is a
efits that deliver Although (as any parent particularly active area of current research. Late
quickly learns) the amount of liq- last year, a study was released at Baylor College
a fundamental uid a diaper can hold is impor- of Medicine in Waco, Texas, that suggests the
human value. tant, that rational, feature-based role of design and memory in the famous Coca-
argument isn’t likely to enable a Cola debacle—the launch of New Coke. Though
brand to extend itself. But if a Pepsi was preferred to New Coke in blind taste
diaper brand is positioned based on the joy of tests, when the logo was shown three out of four
parenting and the needs of parents and their participants preferred Coke. At the Brown
babies, a case for the brand based on “we under- Foundation Human Neuroimaging Laboratory
stand babies” may be made. Once this level of at Baylor, researchers scanned the brains of the
participants during the test. The Coke label trig-
gered physical reactions in the part of the brain
associated with memory and self-image. Pepsi
did not trigger the same activity. P. Reed
Montague, the director of the laboratory, noted
when the research was released last October,
“There is a huge effect of the Coke label on
brain activity relating to the control of actions,
the dredging up of memories, and self-image.”
The concept of neuromarketing is already
being discussed as a potential tool for business. I
suggest that we may soon be entering the age of
neurodesigning—measuring physical reaction to
design stimulus.
Even without the involvement of neuroimag-
The Pampers brand foundation is far more elastic than a concept based
on product features alone.



ing science, however, the business case for design establishes valuable brand equity through
strategy is clearly in its ascendancy. Leadership design, helping to shape consumer behavior and
brands have discovered the value of managing delivering maximum business impact for the
their design franchises. brand.
Procter & Gamble took an important step in
giving design a voice when the CEO, A.G. Lafley, Design and the Brand Experience
appointed Claudia Kotchka the company’s first Valvoline is an example of a global brand for
chief design officer at the beginning of the new which design has played a major role in deliver-
millennium. In the 1990s, P&G had seen some ing the desired impression across multiple
brands losing share to competitors. These com- touch-points. Through a robust visual design
petitors were not always offering superior prod- language, design assets such as color, shape, sym-
ucts; arguably, they were out-designing and out- bol, and imagery have been developed and man-
emoting P&G brands. Aesthetics, rather than aged to create an atmosphere of power and per-
utility, were being rewarded. P&G has been able formance established through the brand’s associ-
to regain its share in critical businesses by lever- ation with global racing circuits.
aging design in all aspects of the brand develop- As is evident in the industry saying, “Race on
ment. Although product innovation remains Sunday, sell on Monday,” the deployment of
essential, design strategy is now part of its inno- these design assets in this context represent the
vation strategy. Design is brought in at the tangible artifacts that consumers experience on
“fuzzy” front end, when conceptualization and their path toward embracing the brand.
planning are taking place, as well as at the point Leadership brands leverage design choices,
when a go-to-market plan is conceived. bring the strategic visual equities of the brand
Although scents and sounds can play an impor- meaning to life, and establish valuable brand-
tant role in the brand experience, behavioral building and experiential equity over time.
research shows that most of what we retain
about a brand is experienced through our visual Design for Self-Selection
sense. Therefore, brand builders must attend A critical aspect that leadership brands have in
carefully to design equity to ensure it is consis- common is the understanding of the role of
tent with the desired brand experience. design in the self-select selling environment. The
Leadership brands understand that every designers of leadership brands are keenly aware
expression leads to an impression, and that that selection is a critical moment in a brand’s
brand identity franchises are created and strate- journey. Although design must first break
gically managed to deliver desired impressions through the static of a cluttered selling environ-
and thereby capitalize on market opportunities. ment, it must also deliver an image that is
Leadership brands create and deploy assets with- engaging, compelling, and proprietary.
in integrated systems of expression in order to With an understanding of the role of design
reflect their overall meaning and positioning. in self-selection, leadership brands manage the
This holistic approach to brand communication design franchise at the purchase event to enable

The Valvoline design franchise leverages color, shape, and imagery to The in-store experience for Herbal Essence goes beyond facilitating
create an atmosphere of power and performance. The benefit of the the purchase to deliver an image that is engaging, compelling, and
brand’s association with global racing circuits is enhanced by the strate- proprietary.
gic management of the design franchise.


Innovation in Consumer Goods and Branding

shoppers to locate and navigate the brand effec- Starbuck’s reinvention of coffee as a vivid exam-
tively. Disseminating information in an appro- ple of a category that was void of innovation for
priate hierarchy to facilitate the purchase is decades, and then suddenly shifted into a new
essential to the brand-building process in the direction because of a new brand concept.
store. Innovation is, therefore, the lifeblood of lead-
ership brands today. The Olay brand, competing
Fully-Leveraged Brand Identity in another category that seemed staid and
Leadership brands reinforce their position in the mature, shows the commercial value of innova-
marketplace by fully leveraging all aspects of tion. Innovative thinking and technological
brand communication. The product, packaging, advances have allowed Olay to evolve into prod-
print communications, and digital interface all uct categories far beyond the product once
collaborate to deliver a total brand experience, known as Grandma’s pink beauty fluid.
reinforcing strategic and experiential equities Olay’s introduction of a new formula under
through every exposure. With disci- the name Total Effects repositioned Olay as a
pline and constancy of purpose, brand that promises a lifetime of beautiful skin.
Innovation is equity-building opportunities are The benefits of Total Effects went far beyond
identified and design strategies are moisturizing and into the realm of repair. With
the lifeblood articulated and managed through its recent introduction of Regenerist, Olay ven-
technical and logistical excellence. tured into yet another area of skin care, improv-
of leadership Leadership brands leverage this ing skin through a serum that regenerates the
holistic approach to equity steward- skin’s production of collagen and elastin.
brands today. ship, creating sustainable momen- As technological advances offer the possibility
tum through repetition and con- of new product innovation and as attitudes
text, integrating verbal and visual elements that toward skin care continue to evolve, it becomes
serve to establish a brand’s image and personali- possible to consider additional areas of growth.
ty over time—by design. Asian women and many women in the
American and European markets believe that
Principle 3: Innovate beautiful skin is primarily a byproduct of proper
There is no longer a thing known as a mature diet and a healthy lifestyle. By repositioning Olay
business. Therefore, the first two leadership as a brand that fights aging, it is possible to con-
principles are not enough. Leadership brands are sider offering dietary supplements such as vita-
committed to innovation as a fundamental com- mins and other products that support a healthy
ponent of their culture. They are moving targets. lifestyle under the Olay name.
At one time or another, coffee, disposable The design franchise reflects this combination
diapers, skin care, and many other consumer- of technological enhancements, while establishing
goods categories were deemed mature. Today’s a beauty aesthetic that is inspirational. Structure
dynamic marketplace is different. Either the and graphics combine to deliver an authoritative
leading brand innovates or an upstart joins the yet elegant presence. Successfully communicating
competition and reinvents the category. Witness on dimensions of both science and beauty, the

Innovation has allowed Olay to evolve into many product categories. Successfully communicating both science and beauty, the design franchise supports
the brand’s culture of innovation.



design franchise supports the brand culture of munication cues can be leveraged instead to
innovation. deliver a unique sense of personal style.
A culture of innovation has allowed Olay to Functionality is no longer enough. Consumers
extend the brand into many new areas. From a now have many choices, and leadership brands
humble beginning, the Olay business is approach- understand how to leverage emotion to facilitate
ing two billion dollars in annual revenue. consumer choice.
Bringing new ideas to a brand builds leadership. Samsung successfully
achieved this by establishing
Principle 4: Connect Emotionally
Leadership brands have empathy. They con-
an image that spoke directly
to intuitive navigation and Emotion is
nect with their consumers not simply by meet- innovation. By establishing a
ing their rational needs, but by addressing the provocative aesthetic that cel-
the single most
emotional context of the need, as well. ebrated the handset as a influential
Emotion is the single most influential aspect statement of personal style,
common to all leadership brands today. Indeed, the overall impression of the aspect common
it’s a component of all the principles mentioned brand was one of leading
above. Whether it relates to developing brand technology and an accessory to all leadership
strategies that are meaningful, design expres- to one’s personal taste.
sions that are inspiring, or innovation strategies Brands have the ability to brands.
that deliver enhanced value, emotion is a power- influence and enhance peo-
ful component leveraged by leadership brands ple’s lives. They provide a
across a spectrum of business categories. means of personal association—of internal
Although highly emotive and sensorial cate- reflection, as well as of outward projection, of
gories, such as beauty care and confection, have self-image. Emotional brands not only support
traditionally relied on emotion to motivate, cate- who we are, but also provide a tangible means of
gories such as technology have increasingly rec- transformation into what we aspire to be.
ognized the power of emotional pull. There is a By leveraging emotional power, leadership
place for emotion in all brand-building practices brands build enduring relationships among con-
today. sumers and their products. By identifying and
Telecommunications is a prime example of a delivering on the most compelling aspects of
category that is faced with the challenges of dif- consumer needs and wants, these brands pro-
ferentiation. Faced with today’s convergent fea- vide maximum emotional relevance to con-
ture sets, all mobile phones struggle to break sumers, fostering a context of empathy, personal
through this increasingly homogenous category. trust, and loyalty. Leadership brands connect
What the industry calls “feature creep” does not best through the heart, and are supported with
drive meaningful differentiation; in fact, it the mind.
annoys consumers who find technical complexi-
ty tedious. By tapping into the emotional power Leadership Principles
of branding and design, visual and verbal com- Over decades, these principles have served a
spectrum of brands in my caseload. I observe
the same characteristics in other leadership
brands I study. Leadership brands work against a
well-articulated and inculcated brand strategy.
That strategy fully leverages the power of design.
Further, a leadership brand establishes a culture
of innovation and, most important, it connects
emotionally with consumers.
The result for a leadership brand is a winning
proposition the market readily understands,
embraces, and rewards.
Reprint #05162KAT10

The Samsung design franchise establishes an image consistent with intu-
itive navigation and personal style.


Leadership brands by design

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