There was a moment in history, when there was a huge roar that Branding was dead. This moment in history is known as “Marlboro Friday”. As per Wikipaedia,
“Marlboro Friday happened on April 2, 1993 when Philip Morris announced a 20% price cut to their Marlboro cigarettes to fight back against the bargain brand competitors who were increasingly eating into their market share. As a result, Philip Morris’s stock took a major dive, along with the share value of other household brands including Heinz, Coca Cola and RJR Nabisco Fortune magazine deemed it “the day the Marlboro Man fell off his horse”
Investors interpreted the price slash as an admission of defeat from the Marlboro brand, that Philip Morris could no longer justify its higher price tag and now had to compete with generic brands. Since the Marlboro Man was an image that stood since 1954, it was considered one of the biggest marketing icons. Investors reasoned that to see the Marlboro icon give into a price war, the marketing itself must be ineffective. As a result of plummeting stock value in major American brands, 1993 marked a slight decrease in U.S. ad expenditures. Companies began investing in promotions rather than advertising. In 1983 in the U.S, the average expenditure on marketing was 70% advertising and 20% on promotions, by 1993 it had made a complete turn around, to 70% on promotions and 20% on advertising.
It was the only decrease to occur since 1970. At the time, this event was regarded as signifying “the death of a brand” and the advent of a “value-minded” consumer generation who pay more attention to the real value of products and not the brand names. This view soon proved to be incorrect, with the rest of the decade’s economy being dominated by brands and driven by high-budget marketing campaigns.”
And that more or less laid to rest any doubt over the future of branding internationally. But due to ignorance, most of our local businesses think they can survive in the branding era without branding. We might need the arrival of one such “Marlboro Friday” to put an end to this branding debate once and for all.
Shahriar Amin is a full time brand enthusiast who is the creator of the first brand blog in Bangladesh (http://shammograffity.wordpress.com) where he disburses brand related knowledge for Bangladeshi students and businesses
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