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THE CONCEPT OF BRANDING AND ISLAMIC ECONOMICS PART 2
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THE CONCEPT OF BRANDING AND ISLAMIC ECONOMICS PART 2
« on: 08 Mar, 2018, 12:38:38 »

3.   The Principles Of Branding
In previous chapter author already described how market are changing so liquid and open that driven by technology. Marketing now is living in new wave era, the marketer term of the time when everything goes horizontally in information.  Between company and consumers has the same position in gaining information about the product. So the Producers cannot hide again from consumers with mask, all information is totally bare. This is the turning point when marketing is return to its spiritual side.  Company should be more honest to customers, because they couldn’t lie anymore again in this information era. Again, in this era of intense competition, good corporate reputation that based on business ethics is a competitive advantage to company that is difficult to imitate  by competitors.
And all of the branding ethics would easily summarize with the principles that contain the strategies for the marketer or public. The core principles points are; 1. Trustworthy, 2. Respect, 3. Responsibility, 4. Fairness, 5. Caring, 6. Citizenship. These points would be described as follows;

a.   Trustworthy
Promise will always be remembered for someone else to accomplish. But when the promise is violated, not only memorable but also will be hated by others. Exert your promise; do not make customers hate you.
A brand has been defined as the capitalized value of the trust between a consumer and a company. Breach that trust, and the brand is in trouble. Trustworthy here is meaning to keep brand reputation as trustworthy is the core value of brand reputation.  Because people only want to buy something to people they trust. 
And the strategies to build trustworthy in brand is with;
1)   Build Honesty around Brand
In this era the most important asset of company is not its real inventory but the reputation.  How many companies those collapse after discovered their disgrace on public. Trust and integrity has strong correlation with the brand image, once time it fault, the entire brand image will collapse and the business will ruin slowly but sure.  Some perfect examples of them; Enron, World.com  and today super scandal at last year News of The World newspaper that caught of phone tapping. Everything that built for years is ruin in one night stand.  News of The World  newspaper is one of old newspaper in world history. It have been ran for over 168 years in England and has worldwide spread network whole the world include in black continent; South Africa.
There is something that couldn’t buy with money.
2)   Clarify the Brand Based on DNA
This is the branding strategy to empowering the employee as employee is the front men plus the face of brand itself. In service brand, such as beauty center, the staff and beautician as the brand employee are the first touch point with the customers; they are same with the packaging of the brand.
In this hyper competitive era every single step and innovation is easy to copy and improving, even some people know ATM (amati, tiru, modifikasi)  and employee is the DNA of the brand that hard to imitate ,they must really represent the soul and character of company as delivered through the publicity and advertising in the same time. This is called codification, the employee; all of them should live up the company character even seep into their soul. This differentiation will difficult be imitated by competitors. For example Google; Google create the joy work situation for his employee so the employee will work with so relax and create something amazing and revolutionary for the company. 
3)   Always Deliver Brand Promise, Never Exaggerate
Every soy sauce claim them self as number #1.
Thus, the public’s allusion to advertisements. Every single brand competes to claim that they are the best in advertising. This event leads the public to become so skeptical with advertising. Most of them don’t believe to advertising.
But there is an exceptional example in US. About 40 years ago, Robert Townsend the director of Avis, Inc. (Rent Car Company) still looked good slogan for their marketing program. In that time Avis was in underdog position with Hertz, the first rent car company in US, honestly, Avis has no more advantages than Hertz. Finally they launch the advertising slogan with “We Try Harder”.  For their position is in number #2 in rent Car Company in US. Unexpectedly this honest slogan boosted their selling up to 24% in four years!  The lesson of this story is don’t exaggerate with the advertising and the brand promise if the company cannot fulfill this. Because public now are fed up with all fake that swallowed through their eyes and ear every day.

Promise only what you can deliver. Then deliver more than you promise. –Author Unknown.

b.   Respect
The difference is not to be contrasted, but to be appreciated and accepted. Also competition has always been the biggest motivator for the company's success. Then respect the competitors, because them brand become like this right now.  The example of how respect drives success is with  McDonald in outside Indonesia they don’t serves rice but to respect the local culture of Indonesia McDonald serves rice in their menu and they are success in Indonesia.  The other example of respect is when McDonald don’t serves beef product in India to respect their culture as Cow is God for Indian.
And the strategies to build respect in brand are with;

1)   Avoid Negative Comparative Campaign
Negative campaign to burn the competitors is not work as example; a research in 1989 by Ronald Paul Hill about US president campaign described about three type of advertising; Positive advertising, comparative advertising and negative advertising that have better impact to public. And the result is the positive advertising is getting more positive response than the two others.
Check what BMW did with their advertising;
Congratulation to Audi for winning South African Cars of The Year 2006. From the Winner of World Car of The year 2006
Then answered by Audi with;
 Congratulation to BMW for winning World Car of The year 2006. From the Winner of Six Consecutive Le Mans 24 Hour Races 2000-2006
It is funny when Subaru join this greeting war;
Well done to Audi and BMW for winning the beauty contest. From the Winner of the 2006 International Engine Contest
Competition was the gift of God to be our optimal pumping ability.  Where it will gives positive effect to all competitors also creating benchmarking in the same time.

2)   Implement Human-Centric Branding Program
Diversity issue in management is general issue such as give the same chance to every single gender and ethnics. But how is diversity in branding? In branding approach, brand look at every single customers are human who has the same rights to getting the same product with the same services.  This human centric branding program will affect strong position of brand reputation as include with attributes of honesty, integrity, diversity, quality, respect, responsibility and accountability.
Diversity program is good program that complement people each other in company. Diversity program generally begin internally, then if every employee in internal part are used to diversity. That the time when diversity begin externally to customers.
Furthermore, the traditional and approved core competencies of Swarovski – innovation and diversity, product and service quality – are emphasized which further differentiates the brand from its competition.
In external side, as example IBM segmented to minority who longtime forgotten like business that belonged to woman and seniors also Latinos, Blacks, Asian. From this small segmented market IBM gain hundred million dollars in 1998.

c.   Responsibility
Any action would be useless if it does not benefit anyone else.  Responsibility requires high discipline in the run. Discipline will not be successful without consistency in the running. And disciplinary action that is done consistently will build perfection. Perfection is part of the responsibility to provide something better for others.
Brand Champion is brand that could take responsibility to make sure the ‘brand promise’ is always fulfilled.  In branding case is In Indonesia the simple example is Bank Century that now changed name to Bank Mutiara, People will think twice to choose this bank for saving or deposit. This Bank Mutiara is back upped by Bank Indonesia for its savings now to protect Indonesia monetary. But what have to say, he already lost his brand reputation for its irresponsible.
And the strategies to build respect in brand are with;

1)   Keep Up with Brand Mission
Business should start from a good mission – the word of Peter Drucker, the expert of management.
Instead, what the mission of your brand? Simply, what is the reason that your brand should be exist?
To define and formulate a proper brand mission, personality, and brand values aligned to the corporate vision and mission is mandatory for devising an effective and focused brand strategy. You have to answer the following questions:
a)   Who are you?
b)   What is important to you?
c)   What does your company stand for?
d)   What is important to your customers?
e)   What distinguishes you from competition?
f)   Where and what do you want to be in five years?
The next challenge is to keep discipline to walk in corridor of brand mission that delegating to staff and employees. Don’t ever to stray from mission. This mission should be maintain and must seep into the heart.  It is urgent as it is the element of branding strategy itself. 

2)   Always Improve and Protect Brand Equity.
In book The Discipline of Market Leaders there are three formulas to be market leader;
First, Customer Intimacy, the capability of company to attach to its customers will gives competitive advantages against competitors. The falling in love customers will not only just repurchasing but will advocate the brands. Second, Product leadership, benefits of established companies through product innovation they run. For example Apple, Inc. through the iPod, iPhone, Apple seems to be a trendsetter for other IT companies in the industry. Third, is operational excellence. Through discipline in keeping with good quality, cost can be lowered, and get faster delivery, the company can become a leader in the industry.  For example, the usual WalMart supply chain to maintain its highly efficient so that the prices offered to consumers could be cheaper.

3)   Be a Preferred Brand, Value Customer Advocacy.
In today market, customer satisfaction is not enough; customer loyalty even is not enough, today the company is desperately trying to make customers want to be a company salesman.
The customer advocacy is powerful, they will bring and spread the brand to their family and community, and lots of companies are trying hard to do this with unique strategy. Indovision and Citibank do this; it is weird how the customers are pride with this.
Every brand dreaming about their brand is being loved and being talked. Every brand wants to be like Apple or Harley Davidson that loved and talked and of course being referred to other guys in customer’s communities. Or soccer fans like Millanisti, Interisti, Barcelonistas or Madridisatas, all of these supporters will support their club or brand like they should die. Even in Indonesia three supporters of PERSIB are died killed by The Jack in Senayan Jakarta last May 2012.  They do that madness without any payment.
The power of advocacy between customers is amazing. Moreover in this new wave era, when everything going to be horizontal. Nielsen Survey at 2009 with 25.000 users from 50 countries, proven that recommended posting by close friends or family is kind of most trusted marketing communication.
Loyal customers, they don’t just come back, they don’t simply recommend you, and they insist that their friends do business with you – Chip Bell, Founder Chip Bell Group.

d.   Fairness
Fairness means nothing less or more in the branding process as a whole. Company that upholds fairness is a company that invites its customers to build the brand, without any thing covered.  Fairness also shows how a company is consistently present in the middle of its customers, in any circumstances in accordance with what was promised.
In the branding case is how News of The World scandal of phone tapping the politicians and state officials for exclusive news that sparked public outrage and surprise public lead to force News of The World newspaper to end their business last year.
And the strategy to build respect in brand is with;

1)   Always Maintain Positive Brand Personality Wherever it is.
In the minds of many employees, when one speaks of ethics in the same time is meaning “fairness.”  And in branding program where ever we stay we should be positive and interesting. Its meaning balance, play by the rules, generous to sharing, open minded, easy to listen other opinion and not easy not to blaming the others. To be market Leader Company don’t need to do cheating or negative maneuver or unfair black campaign to other brand  such as happened now in Jakarta 2012 Governor election that full of fraud and deceit.  That actually hurt the brand of the candidate itself.
The positive brand personality is good to rise brand image as example Apple Computer to his customers bring him to understand the anxiety of his customers. Apple, in customers view is kind of someone who has cool and joyful personality. Even Steve Jobs, the late founder of Apple said that customers’ happiness is their main goal;

We want every users to be happy—and if we can’t make ‘em happy, we’ll give them all refund. We love our users. We try very hard to surprise and delight them

In this new wave era author thinks, to do unfair trade is not relevance anymore. Public information is so transparent for access. No more lies can hide. Even top secret documents of government like US and Indonesia are leaked through Wikileaks  It is the time to marketer with their brand to apply ethic in their branding program, one of them with this fairness.

e.   Caring
Be the best not only meaning being the number one brand but also the conditioning of its customers through education and information campaigns about the good of brand.  Listen to the voice of the customer is brand duty. Seek out and accommodate the desires and anxieties they really brand duty. Care means to feel what other people felt. Care means understanding their needs. Care means directly involved in providing what they need.
In the branding case is how now every brand are begin to care with their consumers. The example is Aqua in their branding theme deliver “Made the Families in Indonesia become Health Families”. With their tagline “Mulai Hidup Sehat Sekarang”  brings the sympathy of consumers and strengthens their positioning of number one bottled drinking water in Indonesia.
And the strategy to build respect in brand is with;

1)   Be Positive in Brand Campaign, Spread the Good News.
As a company is an integral part of the community in which it operates, a sound relationship with the community is essential. Caring for the environment is a responsibility of the enterprise towards the immediate community, but it also extends to all communities and areas whose environment may be affected by the enterprise’s activities.  Enterprises must:
a)   be sensitive to concerns of the local population;
b)   communicate with the local population;
c)   abide by all applicable environmental laws and regulations; and
d)   Show tolerance for people of other cultures, races, beliefs, and countries.

Let’s see the example positive campaign by some brands;

BMW: “We Don’t Just Makes Cars, We Make Joy”
Master Card: “There are some things money can’t buy”
Dove: “Campaign for Real Beauty”
 
With positive campaign, brand can gain brand loyalty from customer like what HSBC do with their positive campaign: “The Worlds Local Bank” is one of the big winners according to Interbrand . As one of the companies with the biggest increase in brand value in the 2005 ranking they are benefiting from higher brand loyalty.

2)   Create Brand Engagement, Secure Emotional Attachment
In the past, business and personal life is separated, but now it is no more relevant again. Now business is cannot separated from emotional thing. So how is the easy way to create emotional connection between the brands with customers? One of the ways is with give the customer’s experiences. According to Morris Holbrook and Elizabeth Hirschman in Journal of Consumers Research on September 1982, product consumption is the process of customers to gain fun, amusement, fantasy, arousal, sensory stimulation, and enjoy.
Dell Computer has good experience with brand engagement. In Singapore when the general selling boost are depend to computer fair, Dell Computer engage customer with program “Dell Swarm”; the program for customer to participate with Dell selling and promotion, Dell bring the customer discount of price depend to how much the customer could bring their friends to buy Dell Computer, more friends joined cheaper price is presented to that customer. This program was huge-huge success, all of Dell item were sold.

f.   Citizenship
The success of a brand will not mean anything if the brand is not able to provide welfare for the society in which the brand is.  And submissive also obedient to the law are not only for the good of the company itself but also good for consumers in general.
In the branding case is how now every brand are begin to compete to give the best in service and dedication for country and community where their consumers lives. The example is Aqua in their branding theme deliver “Sekarang Sumber Air Sudah Dekat, Saya Tidak Pernah Terlambat Lagi”. The branding program to provide clean water for hard water areas like NTT (Nusa Tenggara Timur) with let the customers can help their communities in other area with buy Aqua with the tagline “ Satu untuk Sepuluh” the program that everyone can help the others with buy Aqua Product.  Brings the sympathy of consumers and strengthens their positioning of number one bottled drinking water in Indonesia.
And the strategy to build respect in brand is with;

1)   Safe Brand Reputation and Comply with the Law
  New wave era that comes suddenly force brands and company to consider clean marketing programs that before are not. Company that succeed survive in this era and gain good reputation, they should protect this reputation from any threat that could be ruin they all over reputation and stories.
Last decades, Enron was known as giant oil company. The stock price is valued high by investor, but after scandal that known, Enron ruin only in one night. And its stock is almost priceless now though the company rebuild the company with new management. Enron; the giant company of oil that worth $60.000.000 in Wall Street, 6 times bigger than Indonesia national GDP per year drop until only $ 50 worth .Andersen; the top big five company, the biggest business Consultant Company, that handle GE (General Electric) and IBM drop and lost his 170 loyal clients . All of fraud and scandal that lead to reputation lost almost could happen in one night. However they rebuild this company again with all new management, they already lost their reputation and no body want to risk their money again with this problem company.

“A reputation for a thousand years may depend upon the conduct of a single moment” ¬– Ernest Brahmah
2)   Support Community Interest through Social Branding Program (CSR inside)
In 1970, a Nobel Prize economist, Milton Friedman told that CSR is big wrong and big sins for companies that do CSR. His arguments are; first, big sins to shareholder whether the company use the money that is out of work contract with them, Friedman emphasize those shareholder are paid for managing the company rather than a foundation. Second, big sins to customers, this CSR program will impact to the cost of production so the customers will receive the extra cost and come with more expensive price of product. Third, big sins to employee, this CSR programs will impact to employee salary increases. It will hamper employee salary increases.
Those arguments was published in New York Times and it has been denied by Strategy Expert; Michael Porter in his article in Harvard Business Review December 2002. Porter emphasize that company would gain competitive advantage from their philanthropic activities.
Through a corporate program philanthropy will awaken the local business environment that capable of supporting the productivity of the company. Porter even dares to conclude that philanthropy is the best way to create a cost effective competitive context is.
Author even has unique sights about this philanthropy program. This is about number one person in Microsoft, Bill Gates. We know Microsoft is number one software for computer around the world, while Apple, Inc. is still under Microsoft. Also he is one of richest man on earth.
Bill Gates create Gates Foundation, a private philanthropy program of his self and his wife, Melinda Gates. This foundation help out children in education in Africa and around the world of developing countries, one of their last projects is free digital encyclopedia Encarta. They are also donating million dollars to help out poverty around the world, especially for children and woman .
In my opinion, philanthropy program of Gates help him to stay wealth with his Microsoft even though attacked by open source software and software piracy acts. And proven it is not disturbing his position as richest man on earth by this way, though sometime he go down one step than other rich man based on Forbes survey each year.
 In the era that called marketing 3.0, company has the chance to merge their economy purpose with their honor social programs.
This CSR beside focused to general help based on humanity, it should care with the environment. Brand could be the mover of this movement. The better CSR based on environment should be engaged too with the customers to cure the anxiety of customers plus gain the new loyalist of the brand by this CSR environment program.
To realize the CSR that integrated with charity, brand hoped to gain long term advantages that will impact positive brand equity. Islamic economics motivates people to work harder to pick up the better promised Rizki,  and begin to build the brand.
4.   Branding Architecture
a.   Pre Step Progress of Branding Architecture
1)   Big Idea
Businesses begin with an idea in the head of an entrepreneur. The entrepreneur is filled with passion and energy to create something new . Then the company will walk on. Google, Yahoo, Facebook are the real fact of this statement. Larry Summers, president of Harvard University and former secretary of the U.S. Treasury, stated in a Harvard Business Review article (8/2003) that, "Ideas are the currency of the 21st century economy. Organizations will succeed or fail on the quality of their ideas and their ability to implement them.”
Brands are the ideas, perceptions, expectations and beliefs that are in the mind of consumers, your potential customers or any individual who can affect your enterprise .Sometimes with only an idea someone could be paid as billionaires, the founders or managers of Microsoft, IBM, GE, and Intel had the guts to buy into the idea, and they have been richly rewarded .  Even now the latest we know, the baby Company photo application; Instagram that were 18 months run were acquired by CEO of Facebook Mark Zuckerberg with values until $ 1 Million Dollar or approximately Rp 9.1 Trillion only with idea. Critics say that this acquisition happened allegedly because Facebook fear of this new company's unrivaled .
This big idea should be supported and back upped by brand mission statement; a brand mission statement is the guiding idea behind the brand. It has to be a clear and ambitious, yet achievable business goal. This enables the brand to obtain authenticity .
Here the points how to recognize a big idea:
1)   Does it resonate as big when you first hear it?
2)   Does it create excitement?
3)   Will it move the brand to the next level?
4)   Is it unique?
5)   Is it easy to explain?
6)   Does it fit the brand strategy?
7)   Can it last for at least 5 years?

Smart companies set up idea markets. They encourage their employees, suppliers, distributors, and dealers to offer suggestions that will save costs or yield new products, features, and services.
Arief Budiman, Director of PT Petakumpet Creative Network reveal one secret of his company success is to let and make sure every single idea that birth from every single head of staff there have to born normally though the idea is mad, stupid, idiot, nasty, even tacky!. He said; to believe an idea is bad before it be revealed or expressed is an ignorance that cannot be treated by regret .