Brand and reputation

The Lizard has been reading an interesting article in The Marketer magazine on brand and reputation. It can be found here.

The article attempts, with some degree of success, to conflate many different marketing and brand ideas. One, which I would dispute, is that the Internet has changed everything when it comes to the consumer’s relationship with a product.

When Perrier had a problem with their bottled water in the 80s (benzene was found in the drink and the recall was handled very poorly) the consumer knew all about it and when Perrier brought their water back on sale, the bottles were smaller and the price higher. The customer appeared to be paying for Perrier’s mistakes and they weren’t happy. As a result Perrier was soon gulped down by Nestle. What’s different now, and it is largely a product of the Internet, is just the speed with which consumers can gather information and voice their opinion.

The other issue the article raises is M&A. Particularly when a corporate giant buys a boutique brand well liked by the public. It’s a tricky move for all sides to pull off as Green and Black and Innocent have found. As Ben and Jerry’s point out, when a small brand is gobbled up it must protect its own identity.

One example would be Pret a Manger. It’s an expensive but generally well-liked lunchtime grab and gobble food store that makes much of its green image. This is on the front page of it’s website: ‘Pret creates handmade, natural food avoiding the obscure chemicals, additives and preservatives common to so much of the 'prepared' and 'fast' food on the market today.’

In 2001 it was snapped up by McDonald’s the very antithesis of all that is ‘Pret’ and in 2008 it was bought by private equity house Bridgepoint – capitalists red in tooth and claw and very far from a small boutique brand. However because Pret have managed to keep clear blue water between their owners and their brand they haven’t suffered. A lesson for any corporate giant that wants to swallow a small but much loved minnow.