Brand: Who is the Master of the Precious?

In recent days I have been providing radio commentary on the Ryanair Flight Cancellations.

This blog post is tagged with:

Brand Consumers Brand Value Tipping Point

One common question asked, was whether Ryanair could recover from such adverse publicity?

I observed that over many years, the airline had perhaps intentionally created a ‘Marmite’ reaction amongst Consumers and developed a very robust business model.

My reaction to this question demonstrated that whilst there was an immediate detriment to the airline, its extensive operation and very slick PR/Brand Management would ensure a quick pre-crisis return to ‘consumer confidence’.

But what of the majority of businesses; could they recover from such a public embarrassment? Do businesses actually understand ‘brand’ and what they have to do to either promote or protect its value?

In the case of Ryanair, the blue, white and gold livery, along with its emblematic harp represent the physical presence of the brand. But, it is the ‘love’ or ‘hate’ Consumer relationship, connection, or emotion to that brand, that fosters the view amongst Consumers of whether it provides good value and service for money, or is simply a product that cares nothing for its customers. 

Brand and its relationships are no longer just a national conversation, the way we transact means that it has become international in nature. Ryanair has made an art of managing the good and the bad and will do so again, but in doing so, over many years, it has created a political and economically powerful company, focussed on making money, influencing the debate and politics of travel and providing what it thinks customers and shareholders want.

As a business, whether you are local, national or international in operation, you may not have carried out such a micro-analysis of what your company means to the outside world, but that may no longer be a strategy that you can deploy for much longer!

As I see it, there are now four principal challenges to your business: Brexit, Artificial Intelligence, Political Activity and Consumer Digital Activity.

Each challenge presents a complex methodology and will have a major impact on every business.

For example, on Brexit, we still do not know how this will affect trade and therefore National Economic Activity - it is very much a case of ‘watch this space’ but you should be using this time to prepare your brand for all eventualities. AI is already upon us, with City Law Firms broadcasting their embrace of intelligent technology to run cases, but as this is just the tip of the iceberg; how will you account for the rapid onset of AI and what it means for your operations, relationships, external messages and the ethic of your business? 

So many times I have spoken to Law Firms about Political activity at Westminster or in Europe, many believing that such decisions and debates will not affect their bottom line; are they so confident in that position now that a proposed wider fixed costs regime is predicted to arrive in 2019? 

But it is Consumer Digital Activity that presents the biggest challenge to a brand; are you savvy enough when it comes to dealing with an active Consumer and how they engage online, making decisions about your company in less than 10 seconds and sharing their gratification or lack experience from your brand?

I suspect that for many Companies, already occupied with the daily grind of operating and making money, there is a belief that simply paying for a smart logo, introducing corporate colours and utilising PPC and a reasonable SEO, secures them a place in the local or national conscious? 

Many companies are not like Ryanair; they do not have the benefit of having reached a tipping point or perhaps they do not understand what that means?

Working in many structures, I have been witness to the irrational fear of internal sources who are considered capable of disrupting or diverting attention from the internal perception of the principal ‘brand’. That conscious or subconscious fear pervades through senior management, in which the ‘tall poppy’ must be brought to heel, believing that only total obedience to that internal perception of brand can deliver value.

In my view, it suggests a lack of emotional confidence or indeed analysis of what brand means and more importantly how complex the structure of brand really is; do you think Michael O’Leary has such a problem?