ON Review 1 | 2011
by Jonathan Salem Baskin
Industrial brands command a price and loyalty premium above lesser-branded rivals, but not for the reasons you might expect. Recognition might make it more likely your business will be added to a list but there's no correlation between better marketing awareness and profitability. In fact, many of the best-known industrial brand names track or trail the averages for their industries (this could be due to the fact that they help set those averages, of course). In studying performance of brand names on three continents, this conclusion is inescapable: better branding doesn't yield business success but, rather, better businesses yield better branding (and better results).
It's a simple equation that turns a lot of marketing theology on its head. The case histories are many: Consider Rolls Royce, which had a near-tragic failure of its leading Trent 900 engine in late 2010. According to most brand experts, it failed to properly market itself in the aftermath of the crisis. It didn't tell people what its brand meant; instead, it focused on fixing the problem and working directly with its customers, vendors, and employees. Less than two months later it wrote its largest-ever order for jet engines (the same model that had failed!) and another division wrote its biggest contract to supply ships.
Another example would be Xerox, which has migrated its business from hardware to the services that surround its equipment. No amount of marketing communication could change the fact that its devices were becoming commodities so it built the business offering that added value to them. It's interesting that it didn't reveal its current new logo until after it had proven this new corporate strategy, so its branding was a narration of its activities, not an empty promise.
Conversely, we've seen otherwise well-known and valued brand names lose their credibility in almost an instant, such as BP and Toyota in the U.S. Both brands were built on very smart and memorable marketing strategy that didn't accurately reflect what the businesses were doing. Once that disconnect became apparent to their customers and consumers, those brands were punished.
The bottom-line? Great brands aren't built by going "back to the basics" but with "starting with them." The opportunity for Coesia is to define the business processes, products, and services that differentiate your brand from its competition based on the tangible, objectively verifiable benefits they provide to your customers. These qualities can and should be evident across your current brands. Then the challenge will be to the marketers to discover ways to make these truths available and relevant to your customers.
INDUSTRIAL BRANDS: THE OPPORTUNITY FOR COESIA
Industrial brands command a price and loyalty premium above lesser-branded rivals, but not for the reasons you might expect.
THE CHALLENGE OF GLOBALISATION 2.0
The world – especially the Western world – is going through a particularly difficult phase of history. A financial crisis that became an economic crisis and then a social one, now risks progressing towards a fourth stage: that of monetary crisis.
A LONG EXAMPLE OF EXCELLENT CO-OPERATION
In talking about tobacco manufacturing equipment recently with Martin King, a number of topics kept coming up: safety, product integrity and quality, cost reduction, productivity and, it goes without saying, flexibility.
A G.D FILTER COMBINER FOR BRITISH AMERICAN TOBACCO
The British multinational has begun a qualifying process for the FC8, the G.D’s new multiple filter combiner: this bodes well for the future of this innovative machine that offers high levels of performance, modularity and quick sizegroup-changing.
DISTINGUISHING FEATURES: THE FILTER
Flexible and effective new solutions based on G.D's DF10 and FC8 machines will make it possible for cigarette manufacturers to exploit the opportunities for product characterisation offered by special filters.
WHEN CONVERSION IS LINK TO SPEED
Manufacturers can now choose to convert their high speed hinge-lid lines to soft and vice versa as part of a major policy change. They are no longer limited to the single functionality of providing hinge-lid or soft packing on their cigarette packing lines
LOOKING AHEAD TOGETHER WITH "PLANET" INDIA
Coesia's new branch in Pune has been strategically positioned at the heart of India’s technological and scientific research industries, with the goal of integrating the experience of the Group’s companies to deal with a changing market.
A MIRACULOUS LITTLE RED BOX
No larger than an external hard drive for your home computer, the RedCube UV inkjet DOD (drop on demand) printer can be customised to meet the needs of any production process.
THINKING OF INNOVATION AS AN EVERYDAY CONSTANT, AT ALL ORGANISATIONAL AND OPERATIONAL LEVELS
Europe’s economic and industrial systems are facing a challenge of historic proportions: to overcome it, bureaucracy must be reduced and investment in human resources increased
STMICROELETRONICS: SUSTAINABLE EXCELLENCE
STMicroelectronics, a Franco-Italian company, plays a leading global role in the field of designing, developing, manufacturing and selling semiconductors for use in telecommunications, computers, the motor industry and other industrial applications.
ZAHA AND LAOCOÖN
The extraordinary talent of the Iraq-born British architect and designer, Zaha Hadid, an outstanding exponent of deconstructionism and the first woman to win the Pritzker Prize, is revealed in her creation of Rome's MAXXI.
THE DUAL VISION OF MICHELANGELO PISTOLETTO
At Rome’s new MAXXI modern art museum, from March 3 to June 26, 2011, an extraordinary exhibition will tell the story of the creative journey of Michelangelo Pistoletto, one of Italy’s most internationally well-known artists.
THE PARTICLE FACTORY
In a tunnel 27 kilometres long and between 50 and 175 metres underground, CERN in Geneva has constructed the most formidable and complex scientific instrument ever assembled.
FERRUCCIO LAMBORGHINI: FROM SUPER TRACTORS TO SUPERCARS
Ferruccio Lamborghini was a farmers' son whose passion for mechanics led him to his becoming a major innovator in the sports car field
POET OF ASHES
The personal and creative development of Pier Paolo Pasolini, one of the most important Italian intellectuals of the 20th century, embraced the whole cultural spectrum through poetry, fiction, essays, plays, journalism and cinema.
INDUSTRY AND SOCIETY TODAY IN 58 IMAGES
The GD4PhotoArt competition, promoted by G.D and the Isabella Seràgnoli Foundation, is intended to encourage young European photographers.
LUDOVICO DA VARTHEMA: THE FIRST GLOBETROTTER
2010 marked the 500th anniversary of the publication of the travel diaries of Ludovico di Varthema, an adventurer from Bologna who, from 1503 to 1508, journeyed all over the world as far as what is now Bangladesh, to Borneo and Sumatra
ON’S FIFTH BIRTHDAY
Five years have passed since our house organ was founded. The first issue saw the light of day at the end of June 2006, thanks to the enthusiasm and the dedication of all those people who shared with us this new experience of communication.
COESIA 2015: GROWTH AND SOLIDITY AT A GLOBAL LEVEL
This year's annual Management Meeting of all the Coesia Group’s management teams took place at Stresa, on Lake Maggiore.
INNOVATION AND ETHICAL VALUES AS DRIVERS OF OUR CONTINUOUS GLOBAL GROWTH
Spotlight: interview with Angelos Papadimitriou, CEO of the Coesia Group and of of G.D SpA.