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The value of a strong brand.
Remember, "People don't buy something;
they buy from someone... "
And that's what "brand" is all about.
Who are you?
So, what is a strong brand do for a business?
Well, first of all it engenders trust.
In fact, one of the definitions of brand is trust mark.
When you think of a business like Johnson & Johnson, for example.
You may remember that some years ago there was a poisoning scandal;
some nut decided to open up
some Johnson & Johnson Tylenol capsules and put in poison and several people died.
Well, Johnson & Johnson's behavior immediately,
they simply withdrew all of the product off
all of the shelves and it costed them hundreds of millions,
if not billions of dollars.
And then they proceeded to investigate it and explain it and so on.
Because Johnson & Johnson had such a strong brand,
people trusted it.
And so, it went back immediately to being the number one brand of that kind of a product.
Fact, they had a second poisoning scandal
very much like the first one they behaved exactly the same way thus,
earning the trust. And again,
they are the number one brand in that kind of a product.
So, the value of a strong brand,
a primary value, is engenders trust.
Union Carbide on the other hand,
you may remember the Bhopal scandal where actually it was sabotage in
India and their brand did not have that core trust. And so,
they were blamed for something that actually wasn't
their fault and it ultimately destroyed the company.
Had they had a brand with the kind of a strength and
confidence that Johnson & Johnson had,
they might have survived.
Remember, trust isn't earned by what you say;
it's earned or lost by what you do.
And Union Carbide immediately tried to deny all responsibility.
The chairman never went to India to see those people whose families were damaged.
The way you behave is part of who you are,
which of course is what the brand is all about.