I have often wondered at the power of a brand and its influence on whatever market it may serve. Brands that come quickly to mind typically are McDonalds, and KFC. However, lesser brands also serve their own sector of the community very well and in turn are supported.
It was with a sense of satisfaction and "loyalty" that I observed that Banks Shoes, a shoe store group which had originated in Wellington had gone into receivership and then been rescued by a member of the Banks family and it seems will continue trading. I remember the original store well, it was located in Lower Hutt’s high street, and it was a faithful servant to the local and wider community. Naturally it was a family business and as such, the relationship between the company and customers was somewhat personal. Consequently it was not really a surprise that a family member rescued the company from receivership.
Brands are seriously protected both by the company they serve and the people who work under the brand, some believe in the brand however more than others, and in some cases consumers are dominated by a brand rather than the other way round as demonstrated by the McDonald's and KFC examples.
Well represented brands however particularly in publicly listed companies are essential as a relationship between the company and its performance, a recent example of which was the "Fletcher" brand affected by a decline in its profit warning. Naturally this then impacts on the shareholding value, and investors will ponder the value of the shares and the "brand" comes under scrutiny.
Another example was the similar downsizing of the profit forecasting made by The Warehouse group. As a result negative comments emerge about "The Warehouse" and its performance, something the "brand" could do without.
"Brands therefore are a key element of any business."
Once a brand is created, its owner is constantly looking at ways of protecting and enhancing its representation. Happy employees who understand the culture of the brand will inevitably be the keynote to the company's success.
It isn't always about growing the brand which is what ultimately led to the collapse of the Banks Shoe Store Group, but rather protecting and enhancing the brand we have, protected by good Corporate governance, culture, and most importantly recognising what the brand stands for by its users, employees and stakeholders. Retention of "Banks Shoes" as a brand is therefore important not just to its long term customers but by the traditional values that its original founders perceived at the outset back in the 1930s.
We all go to a lot of effort to develop a new brand; signage, social media and the original culture all play a key part.
"Sometimes it is important that we pause and consider the part played by the brand we represent whatever form of business that brand may be part of."
Sooner or later, it will reap the benefits of its success or conversely its failure!!!
Sharewatch | BurgerFuel
After a busy few weeks away from Share Watch, we wanted to come back with something meaty, and BurgerFuel Worldwide’s 2017 annual report certainly qualifies. BFW continued to grow revenue and posted a modest profit, a good result for a growing company.
BurgerFuel Worldwide is mainly a franchisor, so their operating revenue of $22.3 million is just a fraction of the total sales across all BurgerFuel outlets (which has just ticked over $100 million). There are now 86 BurgerFuel stores in New Zealand, Australia, the Middle East and the US – with the first American store opening after balance date.
BurgerFuel has grown to become hugely popular in New Zealand, and this presumably makes up the bulk of its profits so far. Australia has been much trickier – the company dipped a toe in the water some years ago, then pulled out, and is now having another go, but is still struggling. The Middle East is “a good contributor”, despite being a turbulent region politically, and of course if BurgerFuel can succeed in the US the opportunity there could be huge. Watch this space…
In the Press
As house prices in Auckland start to fall, Election 2017 attention turns now to Auckland transport as the next National vs Labour battleground.
Transport Minister Simon Bridges on Friday announced a bunch of National Party plans for improving the city’s transport network that are being worked on with Auckland Council.
Skills and labour shortages have been rated the construction sector's biggest issue, according to a survey of construction industry players.
Spearheaded by Civil Contractors New Zealand (CCNZ), the survey found labour and skills shortages was a major issue for 69 per cent of respondents, and for 84 per cent of those in management roles.
A firm owned by two Wellington grocers has bought a large inner-city office building for $56 million.
Kilbirnie Pak n' Save owners Brian Galt and his son Dean bought a 14,414 square metre property on Tory St through their investment company Nag Investments.
New Zealand Post and The Warehouse are teaming up to launch Shipmate - a free delivery service in which, for a single payment, shoppers will get an unlimited number of purchases with no delivery fee from participating retailers.