BrAND LECTURE: the 22 immutable laws of branding.

1. the law of expansion : the power of a brand is inversely proportional to its scope. When you put your
brand name on everything that name loses its power. In 1988 american express had 27% of the market.
Then it expanded into offering senior cards, student membership miles, optima, optima rewards plus
gold, and a whole range of other cards. Their market share is 18% today. It lost its market share because
from prestige they started to cater masses. Example is Samsung and sony. Brand extension is needed
not only for the need of profitability but company has to wait and be ready for the risk. Brand extension
can be done on diluting you rbrand equity then you must rethink.

2. The law of contraction: A brand becomes stronger when you narrow its focus.

A powerful branding program always starts by contacting the category not expanding it. TO be the brand
that rules your category these are the five basic steps:

1. narrow the focus example cocoa cola always focused on happiness

2. stock in depth nothing can hurt your brand but its unavailability in the market. There are two types of
sales the first is primary sales and second is secondary sales.

3. buy cheap when you forecast in a way that you can buy cheap, you can go for cheapest supplier that
will also not affect your quality

4. sell cheap

5. dominate the category

3. Law of publicity

4. the law of advertising

5. the law of word

6. the law of credentials