Branding learning
02
The Lifecycle of a Brand
In the previous section, we explored the origins of the word “brand.” This time, we look at the history of corporate branding itself.
“A Brand Is Infinite”
In 1948, the American company Haloid introduced a revolutionary product—a dry photocopier based on a technology known as “xerography.” Until then, photocopying typically involved wet “blueprint” processes, so this innovation was groundbreaking.
Shortly thereafter, Haloid changed its company name to XEROX.
The company’s leadership at the time coined a now-famous phrase:
“Patents are finite, but brands are infinite.”
While patents eventually expire, a well-maintained brand can retain its value and influence indefinitely.
So enduring was the impact of the Xerox brand that it even became a verb—to xerox—and made its way into English dictionaries. Over the following decades, Xerox expanded its business around the core of “xerography,” and redefined its positioning with the slogan:
“The Document Company”,
establishing itself as a global leader and widely recognised as one of the world’s most excellent companies.
“Good Design is Good Business”
The first company widely recognised for integrating corporate branding into its business strategy was IBM in 1956.
Although its official name remains “International Business Machines,” then-CEO Thomas J. Watson Jr. made a bold declaration:
“Let’s refer to our company simply as ‘IBM’.
We will design these three letters beautifully as a brand name—
something that instantly reflects our values and business domain.”
As a company at the cutting edge of computing, IBM sought not only the highest product performance, but also consistent and unified design—from the product level to showrooms and offices.
Then in 1978, IBM declared a new direction:
“IBM is not a company that sells machines.
It is a company that provides solutions.”
Alongside this strategic repositioning, the IBM logo was refined into the now-iconic striped version, and the company shifted its focus toward software development and more creative, engaging corporate communications.
Watson Jr. is also known for one of the most enduring statements in branding:
“Good Design is Good Business”
He emphasised that consistently managing how a company is perceived—by the market and society at large—is at the very heart of branding.
Breathing Life into a Brand
In the early 1990s, even IBM—then a global titan—began to falter. The company reported losses of $2.8 billion in 1991 and $4.9 billion in 1992. Its massive structure could no longer keep pace with the market shift known as “downsizing.”
This led to the sale of the company’s headquarters, factories, and 25 research facilities, as well as the downsizing of approximately 200,000 employees.
In 1993, Louis V. Gerstner Jr., former Chairman of Nabisco, was appointed Chairman of IBM. To revitalise the company and steer it towards customer-oriented value creation, he launched seven core transformation projects and three rationalisation initiatives.
The first and most critical of these was brand management.
The redefinition of IBM’s corporate posture, in response to structural changes in the information industry, and the restoration of the IBM brand as a strategic global asset, became top priorities.
The launch of the “e-Business” service brand and the evolution of existing product brands such as ThinkPad marked a turning point. By the early 21st century, IBM had once again regained its position as an excellent company.
The Meaning of Rebuilding
A corporation is not a machine—it is a living organism. In that sense, it is a bio-corporation.
It possesses sensitivity and intention, a body and a mind—even a soul.
Like all living things, it may fall ill, mature, and grow old. But unlike a human being, a company is capable of avoiding death—if it can adapt and renew itself.
The word “Design” comes from “De-” (to re-) and “Sign” (a signal or indicator).
What Thomas Watson Jr. may have meant with his phrase
“Good Design is Good Business” is that recognising the signs of change and consciously reconstructing oneself is the key to sustainable success.
To adapt to changing circumstances, an organisation must identify its position, transform itself, and continue to express that transformation clearly.
This may be the very essence of branding.
This time, we explored IBM’s story. In the next section, we will introduce a range of case studies from the food industry.