Pilsner beer is
said to have gotten its name by referencing to the city of Pilsen in the Czech Republic, where a
special technique was developed for brewing beer. Ipoh White Coffee got its name
from the famous town of Ipoh (in Malaysia) where it is famous for producing the
traditional white coffee. Peking duck got is name from the way ducks were
prepared, roasted and served in a unique way. These are just a few examples where a category has been created by
using the name of a place as a new descriptor to an existing product
category. The list goes on for Edam
cheese, New York Cheese cake, Selangor Pewter, Chinese silk, and others.
Some of this naming convention happened by choice, and others by accident. The
question is, why do people do this? This is because the name of a specific
place represents a set of unique associations that manifest the differentiating
benefits of a new category formed. Not only that, the name of a place also brings
along with it a sense of aura or mystique that creates curiosity. This is
because a town or city encapsulates a rich set of associations such as its
culture, resources, heritage and people that create its uniqueness. By using it as a descriptor to an existing
category, it is able to transfer this set of unique associations to create a
new category out of an existing one. New categories with relevant and new
perceived benefits often create new excitement in the marketplace.
This is a concept that cognitive psychologists define as conceptual
combination – where an adjective or sometimes a noun (e.g. descriptor such as
colour, shape, size, etc) that is place in front of an existing noun (name of
an object) will be able to change, partially or completely, its existing meaning.
For example, “Sports” placed in front of “car” gives a deeper meaning to the
word “car” that one is describing.
Similarly, in branding and new category development, conceptual
combination is a powerful technique (if used correctly and carefully) to create
new categories. New categories with relevant and new perceived benefits, often, create new excitement in the marketplace.
Taking this concept to branding, we can see an immense opportunity for brands
to differentiate and stand out. So, for brands to find new extension
opportunities or new line extensions, think about conceptual combination. Create a brand new market opportunity and
capture the space by being a first mover with your brand. If managed well (after considering brand
relevance and positioning), it will definitely rejuvenate your existing
category and help you discover your very own “blue ocean”.
CASE IN POINT - White Coffee – Old Town vs. Nescafe
Before the term White coffee was known in the market place, pre-packed
coffee came with variation in sweetness, richness (intensity of caffeine) and
creaminess. Then, a new entry made its presence into the market - Old Town
White Coffee.
Old Town was a brand that was then, synonymously, associated to Ipoh, a town
with great mining history in Malaysia. This is the Brand Story for Old Town. It
has claimed that making white coffee involves a traditional process which they
have mastered that was established many years ago. It portrayed that it had an
authentic approach to roasting coffee to product its unique taste. As such, it
somehow created a strong linkage to tradition and authenticity. The taste and
preference for Old Town white coffee gain rapid popularity and many other
brands introduced their version of White Coffee. However, the unique thing
about white coffee (apart from its unique taste) is the emotional appeal that
comes with the consumption of it – the feeling of nostalgia and the
appreciation of heritage that goes along with its consumption. Many brands who introduced their version of
white coffee missed this point! They introduced a product rather than a brand.
They introduced a product that is only linked with its functional appeal – that
is the taste and packaging. They missed out on the most important ingredient in
white coffee, which is its nostalgic appeal.
This is where I think Nescafe did their homework right. Nescafe by itself
is a contemporary brand – not one that is linked to heritage and
nostalgia. In order to capture a piece
of the market for white coffee, they need to infuse the element of nostalgic
appeal to their product. They introduced their version of white coffee by
naming it “Ipoh White Coffee”. Given
that “Ipoh” is a town that is strongly associated to the origins of white
coffee - thanks to the marketing communications by Old Town, Nescafe is able to
invoke the nostalgic appeal of their new brand line extension. Thus, with its
established channel and marketing muscle in place, I can see that they are
gaining traction.
Dr Lau Kong Cheen is a Branding Authority and Branding Consultant. I believe that what he writes about branding also relates to our personal leadership. How do we position ourselves, and what are our distinctive styles and approaches, are major considerations when we establish our leadership presence. Even legacy has its branding. Our brand is a summation of our personality, identity, character, and actions. We are who we are, reinforced by what we do, and what we have done. Therefore, keep building your brand, wherever you are.