Branding in industrial sectors.
Differentiation that differentiates no one
Down with aspirational adjectives.
Just like the Romanian economy, branding is an emerging discipline. Emerging economies are characterized by a lack of fiscal predictability, a lack of markets that are constant in imension and value, the monopoly of international companies, corruption, and, implicitly, the exploitation of public money by companies obeying various interest groups. Those Romanian subject matter experts (SMEs) not vitiated by integrity issues often find themselves in a situation where they are forced to change their business strategy according to market dynamics and short-term economic performance. Such changes can manifest months later when public policies change the market rules. Basically, it is very probable that a company with certain products/services portfolios will shift after a year or two in an effort to identify other profit centers.
“First and foremost, I believe that, as an emerging market, we still have the opportunity to shift our focus from the KPI-driven approach, towards an empathy-driven model.”
Unfortunately, although Romania ranks high in the world when it comes to Internet speed, this doesn’t mean that the business environment absorbs know-how at the same speed that branding and design specialists do. Basically, we can already talk about major discrepancies between the role of branding as understood by the entrepreneurs and the one towards which the specialists are trying to educate the market. In theory, many branding specialists in Romania have the same methodological foundation as their colleagues in any other developed market in the world, but they don’t have access to the same resources or market climate. The challenge of doing strategic branding is even greater as the professional evolution obliges one deontologically to assign important resources to client education. At the same time, one needs to scale the methodologies to the conditions of the present market, seeking to obtain both strategic branding and a sustainable implementation process.
Unfortunately, branding is seen mostly as an instrument for influencing surface perceptions, mainly through aesthetic elements. It has evolved as a discipline stemming from the advertising agencies implementing international brands in Romania since the `90s.
The market education making the transition from the superficial role of visual identity to the strategic use of brand experience.
For these reasons, when identified as a discipline separate from advertising, branding can be seen as an instrument capable of manipulating surface perceptions via visual identity. Companies dealing with integrity issues change their identity in order to seem credible (in the short term) according to their momentary business context. Those operating in very competitive markets try to appear relevant by imitating the packaging aesthetics of their foreign competition, but retaining some advantage resulting from their product’s price point. Generally, we’re speaking about “red-ocean” strategies, where players copy one another and lose themselves in their attempt to remain cost-competitive.
Romania is a market characterized by social extremes. There is not much of a middle class. You get either poor classes or prosperous ones. The behavior of brands in Romania is mostly a feudal one, in relation to the people. The simple needs of the poor (such as health, food, and housing) are being exploited by advertising campaigns exclusively promoting excessive and imperative commercial messages. Primetime TV is dominated by campaigns for food supplements, pharmacy networks, personal loans, or digital gambling services. The rest comprises of campaigns for beer brands, mobile services providers, and — every now and then — a new car. The branding strategies seen here are mostly mere echoes of those used in the West some 20- 30 years ago.
Furthermore, the anthropological structure includes an active population consisting of grandparents who lived in a prosperous Romania between WWI and WWII, parents educated in the Communist era in Romania, and youngsters who grew up after 1990 (during the years of transition to a market-based economy) charmed by the Western mirage. Basically, Romania encompasses in its collective culture living references of extreme totalitarianism, as well as democratic references, from before and after the fall of Communism. This peculiarity of the Romanian collective culture led to the formation of a civic movement extremely influential during the past years. This is evident in the activity of NGOs dealing with social programs, in the civic movements related to environmental issues, as well as in the reaction of the society in the streets each time political derailment is noted.
For all the reasons above, I believe that the biggest opportunity in branding is the development of new strategies centered on brand activism. Design thinking methods, used to bring objectivity and integrity to the branding process, can produce that “higher purpose branding.” This is the way to build a long-term relationship with the people (not with target groups) based on social responsibility, equity, and respect rather than on the strictly commercial exploitation of basic needs. We have the opportunity to innovate in branding, by converting the commercial purpose into a social one. Responsibility as a status, in a country such as Romania, will become a more efficient commercial vehicle than vanity, precisely because a large part of the middle class are those who advocate on the streets of the big cities against the injustices of some corporations or politicians.
First, in order to need branding, we need to assume that the client has already surpassed the macro-economical factors of an emerging economy. It is fundamental that the business has a reasonable level of financial sustainability in an unpredictable economic climate such as Romania.
“One of the main roles of a branding program is clarifying the vision, making it desirable for all the categories of the public, both inside and out, and, consequently, transferring this into the attributes of the products/services sold.”
One of the main roles of a branding program is clarifying the vision, making it desirable for all the categories of the public, both inside and out, and, consequently, transferring this to the attributes of the products/services sold. The value of a branding program lies in the reputation that it sets out to build, internally and externally. Sometimes, companies following “red-ocean” strategies have a huge potential of exploring “blue-ocean” strategies, given enough courage from management. Oftentimes, however, companies in the red-ocean area limit themselves to reformulating their visual identity; therefore, the longterm economic effects prove to be inexistent or merely circumstantial.
We are far from having a clear distinction made by the market between all these disciplines. The fact that an agency dealing exclusively in branding is an unsustainable business is precisely what led to the explosion of fullservice agencies that offer marketing, advertising (above- and below-the-line), public relations, branding, interactive, media services, and so on. There are multiple factors contributing to this fragmentation. First of all, ever since the 90s, we’ve been influenced by international advertising agencies having offices in Romania. They implement campaigns for international brands — and Romanian companies aiming to copy global success by using their services — for high budgets. Obviously, the interest of such agencies was to polarize the market around them and, so, the business environment reduced our whole industry to merely two words: marketing and advertising.
The signs pointing to the need for a branding program are fluctuation of human resources, lack of talent within the company, inconsistency in sales, and lack of a dedicated public. The first visible signs are always noted within the company itself, in the motivation of the employees as team players (beyond material gain). Without a proactive organizational culture inspired by an entrepreneurial vision, economic performance begins to fluctuate and it is probable that the positive periods are merely circumstantial.
There are multiple factors contributing to this fragmentation. First of all, ever since the 90s, we’ve been influenced by international advertising agencies having offices in Romania. They implement campaigns for international brands — and Romanian companies aiming to copy global success by using their services — for high budgets. Obviously, the interest of such agencies was to polarize the market around them and, so, the business environment reduced our whole industry to merely two words: marketing and advertising.
Beyond these full-service agencies, the academic environment is extremely superficial in developing curricula on topics such as communication, marketing, or design. Basically, the respective faculties continue to send students for internships in advertising agencies, while the graduates (armed with a very limited perspective on the instruments available to them) become the future marketers of Romanian companies.
Precisely for these reasons, Romania’s branding and design agencies still represent a niche segment. The better part of them, in fact, are limited to visual identity projects related to online communication.
Nonetheless, it is not impossible to exist as an agency dedicated to branding and strategic design, although it is a much more difficult business sustainability-wise. The agency I founded is now 14 years old, and there are a few older ones — as well as new teams — doing very good work. I strongly believe that the market is moving towards specialized disciplines and that branding, as a strategic instrument, is becoming ever-so-relevant as our economy matures.
First and foremost, the brand is a business strategy. A brand-driven business must be able to grow around the value of the brand experience it proposes. Primarily, a branding agency is involved in the business, service, and product design. It shapes the business, from employees to consumers, from procedures to operations. Marketing is a support service, belonging to the value chain of the company, together with sales and post-sale services. Advertising is a support discipline, ensuring the implementation of the communication as defined by the brand strategy, together with the marketing strategy.
Beyond design and storytelling, a branding agency integrates marketing consultancy services, as well as sociology/anthropology and economics. Most of the time, these are necessary for the audit phase, where the client is being assessed and insights are being determined. It doesn’t mean that a branding agency also becomes an outsourced marketing service. It is important that marketing has an organic role within the company.
The main advantage of a relationship with a branding agency must be a new, long-term (and preferably “blue-ocean”) business strategy based on the projected value of the brand and design experience. An advertising agency aims at short-term economic effects, which can be spectacular, but easily destabilized by the more efficient campaigns of a competitor.
“Unfortunately, branding is seen mostly as an instrument for influencing surface perceptions, mainly through aesthetic elements.”
In 90% of situations, Romanian clients turn to branding agencies for graphic design needs. As stated before, because this is an emerging market, the needs as identified by the company are limited to the surface level. A new logo, a website, communication collaterals around participating in an event, etc. This is why many agencies will only provide services related to the needs voiced by the clients. For what regards us, no matter the need that brings the client to us, we explain that our “product” is a branding program based on a design thinking approach and that the result we produce is a strategic brand. We were one of the early Romanian agencies to apply a branding program to the projects in which we are involved. But, despite our 14-year, consistent focus on the strategic goal of the brand, most of our clients still hope we will only build their visual identity. We have also dealt with situations in which clients, eager to boast that they have worked with us and too confident in their own strategies, went through the whole branding process only to implement the visual identity.
The quality of the brand mirrors the respect of the company for the people — from employees to consumers. On the other hand, branding on the surface cannot replace a lack of vision or relevance as a product. If clients don’t have a business that actually (and distinctly) responds to a certain need, then branding cannot save their business. People buy products that respond to their needs, and love brands that inspire them to evolve. They will not become loyal to companies that just try to exploit them.
Brand activism, when the products/services already have clear differentiators, not only helps companies build their reputation, but also contributes efficiently to empowering communities and creating a better society. In a digital and globalized era, brands are directly responsible for the effects they create en masse. The best advice: Responsibility, as a brand strategy, produces equitable effects for all those involved!
It must be said that entrepreneurs have a very fragmented perception regarding which kinds of strategies actually produce effects. One business consultancy can suggest a strategy based on more efficient operational costs, while others can focus on the management of human resources or outsourcing of certain operations. After a while, because a majority go into a business based on temporary opportunities, Romanian entrepreneurs discover their lack of sustainability and start looking for solutions. Many of them don’t have a well-articulated business vision.
In this context (and for many of them), the fact that branding represents a strategic tool becomes an even more abstract concept.
What clients can easily understand, however, is the short-term perceived value of visual identity. They sometimes sense that the effects go deeper than they appear, but it is extremely rare that entrepreneurs study the strategic role of a brand and look for specific services related to that.
Not at an academic level! There are various elements or initiatives of quality, but they lack the power to change macro perceptions. In the short term, companies will more easily adopt branding and design processes through the fiscal facilities of financing programs.
For macro effects, in the long run, we need to institutionalize design as a government entity and develop public policies that will bring on design as a discipline of research and innovation. The future performance of Romania’s economy greatly depends on increasing the value of local entrepreneurship. The national economic strategy would have to allot a fundamental role in creative industries and, consequently, establish an educational system capable of producing competencies long-term.
Otherwise, we will remain a solely reactive economy, capable only of superficially imitating global brands.
First and foremost, I believe that, as an emerging market, we still have the opportunity to shift our focus from the KPI-driven approach, towards an empathy-driven model. We can educate ourselves to take an early role in fueling organizations towards innovation and behavioral change. Human-centered branding and design can better serve organizations and society as a whole. We are at the beginning of a global paradigm shift. The sharing economy is challenging the status quo of established global brands. New initiatives and start-ups are emerging from Eastern Europe. We can have an influence on how this part of the world will take shape in the future.
To see in branding the intersection between design, sociology, and economy, and to give each field equal weight. The most powerful educational environment is society, in its anthropological whole. It is vital for them to know people, behaviors, and needs from all social classes, not only from a bubble convenient to their lifestyle. A brand influences the doorman of a company as much as it does the workers, management, and most of those who interact with its final products.
They must study the identity manuals of big brands, their strategies; look for data on effects at the organizational level, as well as for consumers’ reactions to the products themselves. Try to track the behavioral change a brand is responsible for – the consequences it produces – not only economically, but how it impacts the quality of life. Set yourself a human-centred purpose before taking a role!
As far as design styling, look for the classics, such as Massimo Vignelli, Saul Bass or, closer to the present, the Pentagram team. Look mostly for references reflecting the timeless perception of design, instead of the profiting of some trends, templates, and royalty-free stock assets. Craft authentic identities, when possible, throughout all of the design system of a brand.
Branding in industrial sectors.
Down with aspirational adjectives.
Design Thinking for community engagement.
How you end up going in the wrong direction.
