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Disclaimer: This question is not about how to get famous and not about how to be a well-known entrepreneur. It's only about making money.

It is common knowledge that a company should have a brand: to get more customers, to keep them loyal, etc.

Branding implies consistent marketing and advertising activities among others.

But recently I had an idea:

What if the value of branding is overrated? What if some companies do not need any branding at all?

Take for example McDonalds:

  • a. If they were not expanding through franchises, i.e. doing the expansion with their own resources and without any partners...
  • b. If they were not targeting mobile people, travellers ("I'm sure that I will get exactly the same BigMac both in New York and in Paris")...
  • c. Finally, if they were just a big fast-food chain with small local restaurants targeting local neighborhoods only...

...would they actually need any brand?

Maybe they could just name each restaurant with its own name? (keeping their cooking and business rules system, of course)

I tend to think that there could be some benefits of this 'unbranding' approach:

  • no need to build reputation, no fear to loose it;
  • a company can stay 'under the radar' even it is highly successful: it's much harder for incumbents to mentally unite all that small local companies with different names into one business entity and conclude that it is highly successful.

So, here is the refined question:

Do you think it is possible to build a big successful company (consisting of local branches) without building a brand?

P.S. I have a friend of mine who has a highly profitable chain of hardware stores in about 10 small towns. Each store has its own name and does not relate in any way to its 'head' organization. This business is situated in a developing country.

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When demand is higher than supply brand is not needed but when demand drops then those with the best reputation last. Your friend has build 10+ brands because there was nothing to gain from a global brand as sometimes "big" is seen as bad. Have you read Seth Godin's "Small is the New Big"? – Matthew Brown Mar 30 at 11:41

closed as not a real question by TimJ, jimg, Christian, Karlson, Chris Fulmer Nov 28 '12 at 19:20

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2 Answers

If I went up to Helsinki for a project, I didn't know where to go for dinner at the first night. So i thought: lets ask these people for the next McDonald.

Not that I like McD too much, but I trusted to know what I eat. I even knew how it would taste. And at the evening I didn't want surprises.

Along my way to McD I saw many smaller opportunities to have some dinner. Fastfood, slow food whatever. I didn't choose them even when they looked good - I just wanted no surprises and the the used level of quality.

If you go into a shoe store and want some running shoes, you probably take out Adidas/Puma/Nike at the first glance. If you don't know about the expert shoes, because you are a novice, you simply take Adidas.

These are benefits you get from a brandmark.

On the other hand, if I hear that McDonalds is doing something worse with the salads, I will not go to a McD in whole germany just because of that. That is probably the downside.

Anyway - I find brands important. Sometimes they are useless. Sometimess not. If you want to make huge business, the you should have one - like Apple. The ten hardware stores can not compete with Apple. But if they would have a fancy name like X9 and would start selling exclusive hardware, they might have a chance (ok not really in apples case).

Some of the brands we know have grown. I am not an expert but maybe you should read some books of the wellknown brandcreators. I highly assume that there were a time were they just did high quality with a cooperate design. And then later decided to put money in the trademark. And now- I don't think Apple does invest to much in the trademark. The products and the stores and whatever speaks for itself. They probably invest more money into trademark protection ;-)

That being said I am not a marketing expert. I was just surprised about the question. For me it was never a question if trademark yes / no. each product I sell is a trademark and I want to get it big. I cannot imagine you can create a huge business without a huge trademark. You friend has several small trademarks giving good revenue - what would happen if he would create a brandmark and give out franchise options?

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I think you might be missing a little bit of the value of a brand - it's not just that you expect a particular type of experience (like similar food) no matter where you go (for a restaurant) or what you buy (for some object). It's also that you know there's some guarantee about what it WON'T be, because there's someone behind that brand that will ensure a minimum of some type.

For example, bathrooms. Go to any McDonalds, and you can expect it won't be a scarring experience; go into some hole-in-the-wall diner or something, and you have NO IDEA what you'll find. I've had to take my kids to bathrooms at some decent restaurants and found a shared, single-toilet mess that I almost wouldn't let my kids into. McDonald's seems to take that pretty seriously, sending people in there all the time, and I imagine they've got some sort of surprise inspectors that come around checking stuff like that just to make sure it's up to the "McDonalds experience".

Consumables like shoes are a little different, maybe because there's not as much you can really screw up - they fall apart, you don't get e. coli or something. But I think the lesson here is really that depending on what your product or service is, the more of an "experience" you're providing, the more important that branding is, because people know there's a floor to how bad it could possibly be, unlike what you might find at a family-owned biz of some type. Just my quick thoughts off the top of my head. Hope it helps you out!

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