Creating the Name and the Blue Sea (Brand Equity)

In today's world, competition is fierce, and everyone strives to be the best. In his book "Shortcut for a Better Life," Ziad Rayess talks about how creating one's own space beyond competition is vital to success, regardless of the product or sector. Rayess offers personal examples of how brand equity and consumer trust can artificially increase the value of a product. He emphasizes the importance of positioning, which involves creating a unique position for oneself or one's product based on a system of values and respect within one's own community.

Positioning and Brand Equity:

In his book "Shortcut for a Better Life", the writer Ziad Rayess mentions: The film "The Japanese Planted the Jewels" ⁽¹⁾ discusses how the Japanese significantly manipulated the value of cherries, bringing their value to over $4500 for just 15 cherries. They tried to impart respect to the product in every way possible as justification for raising its value so much, as they would no doubt find someone to buy it at that value despite knowing its real value.

25 years ago, in the late 1990’s, we were working on launching a brand in the market under the name Golden Fields. The brand was a group of food products, including powdered milk, with the same name. We were marketing it in several countries in the Persian Gulf and the Middle East, even though there were already over 28 brand names in the market. Nido, a product of the Swiss company Nestle, had the largest share in the market; its cartons sold for 280 riyals each. There were 2–3 other, smaller brands like Anchor and Luna, whose cartons sold for approximately 260 riyals each, occupying the second-largest share in the market. We, Golden Fields, were competing with 25 other brands in the market, and all of these brands had prices ranging from 210 to 215 riyals per carton.

We later found out that all the companies were using the same source for packaged powdered milk, and it was all of the same type and quantity. But the name carried value and trust. The fact that Nido continued to occupy a leading position was what gave it this significant difference in value, while others were in fierce competition with one another. Any unexpected event or change in the price of primary materials or support services spelled huge losses for the owner, to the point that they might leave the market entirely.

It is important for a person to create their own space for all their outputs; regardless of the type of product or sector; to be beyond competition, out there in the blue ocean. There should be a study of the product from the outset so it can be number one in the market and removed from the competition, however attractive and varying the data may be in the beginning.

In the marketing world, this is known as “positioning,” and it goes hand-in-hand with artificially increasing the brand equity. Another example from that period is a French clothing product manufactured in Egypt under a then-famous French brand name. The factory management knew that the price of the product for the company that owned the name was no more than 10–15% of the market value. But the brand equity and consumer confidence, as well as many other factors, gave it its value.

Surely everyone knew that most of the gifts being exchanged were valued based on the name and the brand, not the real value of the product itself.

This concept also applies on a personal level; to give yourself a position based on a system of values and respect within your own community, to treat others according to that system and not based on other peoples' dictates or reactions that make you exist beyond your own circle of values; without labeling others as superiors or inferiors.

Conclusion:

In conclusion, one must study the product from the outset to make it number one in the market, be it through brand equity or positioning. The lesson is not just limited to products and marketing but also applies on a personal level. One must establish a position based on a system of values and respect within their own community and not based on others' dictates or reactions. Ultimately, as Rayess discusses in his book, making one's own space can result in success and a better life.