1 Brands

unit

‘Products are made in the factory, but brands are made in the mind.’
Walter Landor (1913–1995), branding pioneer

overview
vocabulary
Brand management
listening
Successful brands
reading
Building luxury
brands
language review
Present simple and
present continuous
skills
Taking part in
meetings
case study
Hudson Corporation

starting up A Work with a partner. List some of your favourite brands. then answer these
questions.
1 Do you / Would you buy any of the following brands? Why? / Why not?

Coca-Cola Ikea Microsoft Tesco Chanel

IBM General Electric Virgin Nokia Kellogg’s
Toyota Google Intel Samsung Ford
McDonald’s Mercedes-Benz Disney Marlboro China Mobile

2 Which of the brands above do you think feature in the top-ten Interbrand list in both
1999 and 2007? (Check your answer on page 134. Are you surprised?)
3 Pick some of the brands above which interest you. What image and qualities does each
one have? Use these words and phrases to help you.

value for money upmarket timeless well-made classic

durable inexpensive cool reliable stylish
fashionable sexy sophisticated fun

4 How loyal are you to the brands you have chosen? For example, when you buy jeans,
do you always buy Levi’s? Why do people buy brands?
5 Why do you think some people dislike brands?

B CD1.1 Listen to two speakers talking about brands. What reasons does each
person give for liking or disliking brands? Which person do you agree with?

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 unit 1 •• Brands

vocabulary A Match these word partnerships to their meanings.

Brand b 1 loyalty a) the title given to a product by the company that makes it
management r 2 image b) using an existing name on another type of product
a 3 stretching c) the ideas and beliefs people have about a brand
n 4 awareness d) the tendency to always buy a particular brand
d
5 name e) how familiar people are with a brand (or its logo and slogan)

p
6 launch f ) the set of products made by a company
r
o 7 lifecycle g) the use of a well-known person to advertise products
d 8 range h) when products are used in films or TV programmes
u 9 placement i) the introduction of a product to the market
c 10 endorsement j) the length of time people continue to buy a product
t

m 11 leader k) the percentage of sales a company has

a 12 research l) customers of a similar age, income level or social group
r
13 share m) the best-selling product or brand in a market
k
e 14 challenger n) information about what consumers want or need
t 15 segment o) the second best-selling product or brand in a market

B Complete these sentences with word partnerships from Exercise a.

b r a n d 1 No one recognises our logo or slogan. We need to spend more on advertising to raise
brand awareness .
2 Consumers who always buy Sony when they need a new TV are showing .
3 A fashion designer who launches his or her own perfume is an example of .
4 The of Mercedes-Benz is such that its products are seen as safe, reliable,
luxurious, well made and expensive.

p r o d u c t 5 George Clooney advertising Nespresso is an example of .

6 A consists of introduction, growth, maturity and decline.
7 Tesco’s wide means that it appeals to all sectors of the UK market.
8 The use of Aston Martin cars and Sony computers in James Bond films are examples
of .

m a r k e t 9 Microsoft is the in computer software.

10 In countries with ageing populations, the over-60s age group is becoming an
increasingly important .
11 Pepsi is the in carbonated soft drinks.
12 Focus groups and consumer surveys are ways of conducting .

C discuss these questions.

1 What are the advantages and disadvantages for companies of product endorsements?
2 How can companies create brand loyalty?
3 Can you give any examples of successful or unsuccessful brand stretching?
4 Think of a cheap or expensive idea for a product launch.
See the DVD-ROM 5 What other market segments can you identify (e.g. young singles).
for the i-Glossary.
6 What action can companies take if they start to lose market share?

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 unit 1 •• Brands

listening A CD1.2 Chris Cleaver is Managing director, Business Brands at dragon Brands.
successful Listen to the first part of the interview and tick the points that he makes.
brands A brand ...
1 helps people to become familiar with a product.
2 gives a product an identity.
3 increases the sales of a product or service.
4 enables the target consumer to decide if they want the product or not.

B CD1.3 Listen to the second part of the interview and answer the question.
What is the main function of a brand?

Chris Cleaver
C CD1.4 Listen to the final part. in which two ways has Chris Cleaver’s
company helped nokia?
Watch the
interview on
the DVD-ROM.
D think of three brands you really like and discuss what ‘appealing and
persuasive’ ideas they communicate to you.

reading A What is the brand image of dior?

Building luxury
brands B skim the article on the opposite page quickly and say which of the following
points are mentioned:
1 The high profit margins on bags
2 Investing in markets that may take some time to grow
3 People are ready to pay a lot of money for very high-quality things because
they are beautiful.
4 Building customer loyalty through ready-to-wear

C read the article and complete the notes in the maps below. then correct the
ten mistakes.

3
need for
values of a historic
2
need for expansion
1

of shareholders
balances good times –
get out of office

bad times
communicates with tOLEdanO – time on
organisation
best advice

assistant
Bernard creative types 4

Arnault
6

calculator
wear – de Castellane jewellery – 5
Galliano
people from different
countries
newness what happens next

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 unit 1 •• Brands

Restless pursuer of luxury’s future

by Vanessa Friedman

Sydney Toledano (Dior’s Chief realised China would one day be

Executive) is one of the longest- prime territory for luxury.
serving chief executives in the 35 ‘I met some factory owners,
luxury industry. As the industry and they were working so hard,
5 goes global, he must balance the but then they would bring you to
demands of shareholders and the a restaurant and it was clear they
values of a historic label, the need wanted to enjoy life,’ he says.
for exclusivity and the need for 40 ‘And I thought: one day these
expansion. people are going to have money
10 He routinely communicates with and they are going to spend it.’
his demanding boss, Bernard Arnault, A few years later, Bernard
main shareholder of Christian Dior, Arnault contacted him. ‘The
and a number of creative types, 45 interview took 15 minutes. He
including Dior’s clothes designer knew exactly what he wanted,’
15 John Galliano and jewellery designer says Mr Toledano: to take a small
couture house he had bought
Victoire de Castellane.
out of bankruptcy and build it
‘The best advice I ever got was
50 into the biggest luxury group in
that, when times are bad, you the world. Mr Arnault has used
need to get out of the office; when Dior to create LVMH (Louis Vuitton
20 things are good, you can spend Moët Hennessy, the world’s largest
time on the organisation,’ says luxury group).
Mr Toledano, who travels almost 55 ‘Christian Dior can double in
every week to one of Dior’s 224 five years,’ he says. ‘There may
stores round the world. ‘You have to be difficult times coming, but if you
25 look for newness, look for what is look at the Middle East, China, even Sydney Toledano, CEO Dior
happening next. Forget the calculator. Europe, I believe there is growth
Understand the people from different 60 coming, and we have to develop our Mr Toledano believes not
countries and what they want.’ network and perfect our supply chain.’ only that a brand should go to
It was by spending time in China in The next wave of luxury buyers its customers but that it should
30 the 1980s, for example, when he is now in the new territories: anticipate their needs and invest
worked at the French leather-goods the Middle East, Russia, 70 early in markets that may not show
house Lancel, that Mr Toledano first 65 Hong Kong and South Korea. real growth for up to six years.

diOr
next wave
8
buyers

growth
Brazil
Russia China
India

coming need to
7

in five years
perfect market develop supply chain

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 unit 1 •• Brands

language review The present simple and the present continuous have several uses.
Present simple • We use the present simple to give factual information, for example about
and present company activities.
continuous Christian Dior Couture makes luxury, ready-to-wear fashion.
Dior Homme targets the male consumer.
• We use the present simple to talk about routine activities or habits.
Toledano routinely communicates with his demanding boss.
Toledano travels every week to one of Dior’s 224 stores.
• We use the present continuous to talk about ongoing situations and projects.
Fashion house Christian Dior is now selling baby bottles.
• We use the present continuous to talk about temporary situations.
Dior is currently looking to recruit a marketing director for the UK and Ireland.
Grammar reference page 146

A Which of the time expressions below do we usually use with the present
simple? Which do we usually use with the present continuous? Which are
used with both?
usually this year every day now
often nowadays once a month currently
at the moment these days

B Complete these sentences with the present simple or the present continuous
form of the verbs in brackets.
1 a) At the moment, eBay (work) with brand owners to remove fake items.
b) eBay now (spend) $20m a year analysing suspicious sales.
2 a) Louis Vuitton usually (sell) its products through authentic Louis Vuitton
boutiques.
b) At the moment, Louis Vuitton (negotiate) with Hubert de Givenchy.
3 a) Both Apple and BlackBerry (launch) important new products this year.
b) These days, a lot of people (have) a BlackBerry.

C Complete this text with the present simple or the present continuous form
of the verbs in brackets.
1
The Google brand (grow) rapidly. According to the Millward Brown Brandz
2
report, it (hold) first place in the list of top 100 brands. In fact, the IT field
3 4
(dominate) the top-ten corporate brands. Google (operate) websites
at many international domains, the most popular being [Link], and
5
(generate) revenue by providing effective advertising opportunities. Google
6 7
always (focus) on the user, and consumers usually (see) Google as
quite trustworthy.
8
Nowadays, companies (begin) to recognise that brands are amongst their most
9
valuable assets. They understand that brands (become) ever more powerful
10
in driving business growth. Strong brands (generate) superior returns and
11
protect businesses from risk. Google currently (hold) the top position, but it
has to keep innovating if it wants to remain number one. BlackBerry and Apple are the two
12
fastest-growing brands in the top 100, and China Mobile (grow) steadily, too.

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 unit 1 •• brands

skills A CD1.5 Four marketing executives at a sports sponsorship agency are

Taking part in talking about finding a new sport for their client, a well-known media
company to sponsor. Listen to the conversation and answer the questions.
meetings
1 Why does the client want to change the sport they sponsor?
2 Which four sports do the executives consider?
3 Which sport does Mario suggest? Why does he suggest it?
4 What must David do before he contacts Larry Harrington’s agent?

B CD1.5 Listen again and complete the extract.

1
Joy  ell, there are several possibilities.
W ice hockey? It’s an incredibly fast,
exciting sport, it’s very popular in America and in a lot of European countries.
2
David OK, that’s a possibility. , Natasha? Would ice hockey be a good choice?
3
Natasha M
 mm, . It’s not really an international sport, is it? Not in the same way
as baseball, for example, or … tennis.
4
David  – baseball’s got a lot more international appeal, and it’s a sport that’s
got a good image. I don’t know about tennis – I’m not sure it would be suitable.
5
Mario, ?
6
Mario  , motor racing would be perfect for our client. It’s fast, exciting, and
the TV coverage of Formula One races is excellent. They would get a lot of
exposure, it will really strengthen their image.
7
David T hat’s a great idea, Mario. get in touch with Larry Harrington’s agency
and see if he’s interested? Harrington’s young, exciting – he’d probably jump
at the chance to work with our client. They’re a perfect match. But first I must
check with our client and make sure they’re happy with our choice.

C Which of the phrases in Exercise B are:

1 asking for opinions? 3 agreeing or disagreeing?
2 giving opinions? 4 making suggestions?

D Role-play this situation.

Jeanne de Brion is a jewellery company in Boston, USA. A year ago, it launched a line
of jewellery with the brand name ‘Cecile’. This is the name of the French designer who
created the collection. Unfortunately, the Cecile line has not achieved its sales targets.
Three directors of the company meet to discuss how to improve sales.
Work in groups of three. Read your role cards, study the Useful language
box and then role-play the discussion.
Student A: Turn to page 134. Student C: Turn to page 143.
Student B: Turn to page 140.

useful language
Asking for Giving opinions Agreeing Disagreeing Making
opinions suggestions
How do you feel I think / I don’t think That’s true. I see / know what I think we should
about that? that’s a good idea. I agree. you mean, but I think reduce our prices.
What do you think? In my opinion, we there’s a problem.
Absolutely. How about a special
What’s your view? need new products. Exactly. I’m not so sure. promotion?
I think so, too. Maybe, but that’s not Why don’t we talk to
enough. the big stores?
Maybe / Perhaps
we could offer
incentives.

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 1 HUDSON
CORPORATION
Case study

A luxury luggage manufacturer is facing

increased competition from cheaper imports.
It must decide how to protect its brand and
create new markets for its products.

Background Market research

Hudson Corporation, based in New Jersey, USA, Hudson recently set up a series of focus groups to
makes top-of-the-range luggage and travel find out how consumers perceived the company’s
accessories. It is a well-known brand name in the brand in the USA.
USA. Its suitcases and bags are associated with
Which of the findings do you think may have
high quality, traditional design and craftsmanship.
contributed to the company’s lower market share
Hudson emphasises in its advertising that its
in its home market?
products are ‘made in America’. Recently, the
company’s market share in the USA has decreased.
One reason for this has been the increased
Do you think Hudson’s % of people
competition from Asian companies selling similar
luggage and bags are: answering ‘yes’
products at much lower prices.
A year ago, the management decided to boost expensive? 72
sales by entering the European market, focusing exclusive? 56
initially on Switzerland, Germany, France and value for money? 48
Italy. They set up a branch office and warehouse
good quality? 82
facility in Zurich, which would be the base for their
European expansion. old-fashioned? 68

What problems do you think Hudson will face exciting? 15

on entering the European market? Make a list innovative? 18
of your ideas.

CD1.6 Four of Hudson’s

American managers are
talking about the problems
they could face in Europe.
Listen and make notes on
the key points.

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 unit 1 •• Brands

MARKETING STRATEGIES
FOR EUROPE – OPTIONS
Reposition the brand Hire a top designer
Sell Hudson suitcases and bags at medium price Employ a top designer to produce a new range
ranges. Manufacture the products in a country of smaller suitcases and shoulder bags aimed at
where labour costs are low, e.g. India or China. businesspeople travelling in Europe and at rich,
Do not promote the products as ‘Made in America’. younger, fashion-conscious buyers. Sell the
Use a high-volume, low-cost strategy for Hudson’s products under a new label.
core products.
Develop a wider product range
Develop the Hudson brand Sell a wider range of products under the Hudson
Promote the Hudson products as an exclusive label, e.g. trolley-backpacks, document cases,
brand and keep the ‘Made in America’ tag. Sell briefcases, name-card holders, shoulder bags for
the products in the higher price ranges. Use product men and women. Sell at lower, competitive prices.
placement in films and television to support the
brand. Hire a famous, sophisticated, influential Stretch the Hudson brand
man and woman to endorse the products. Two Put the Hudson brand on high-quality watches
well-known French film stars have shown interest and jewellery. Make an agreement with the Swiss
in endorsing a new range. manufacturers of these top-of-the-range products.

Develop sales using e-commerce

Sell the existing product lines via the Internet at
very competitive prices.

1 Work in small groups as directors of the Hudson Corporation.

Writing
Task

Hold an informal meeting. Consider the advantages and as the CEO of Hudson Corporation, write an
disadvantages of each option listed above. Choose two of e-mail to the head of European Marketing
the marketing strategies which Hudson should focus on to associates, david Wright, summarising the
expand sales in European markets. actions you agreed to take at your meeting,
with your reasons. suggest a time for a meeting
2 Meet as one group and decide which two marketing with david Wright and his associates.
strategies you will use to develop sales in European markets.
Writing file page 127

Watch the Case study commentary on the DVD-ROM.

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