Iranian brands,

an experience in the dark!

Shahrzad Esfarjani

Rumi the renowned Iranian poet narrates an allegorical story in his book Mathnawi Manavi that’s applicable to all times. The story is about the people of a village invited to a house to watch a creature called elephant. When they step in the room where the elephant was they notice it is dark and nothing visible. So by touching the body of the elephant in the dark they try to sense what the creature looks like. Each touch a part of the elephant’s body and describes his own understanding of the animal to others. The one touching the elephant’s foot describes it as a thick column. The other touching the ear assumes it is a fan. The one who feels the elephant’s trunk finds it similar to a drain pipe. Rumi states that everyone had their own perception of the animal so they all gave different opinions. Apparently, this story besides its social and philosophical messages can be applied to the issue of brand management because in our country as well brand experience resembles Rumi’s story because every group presents a different definition of brand according to their own perception and understanding. For example, manufacturing managers see brand the same as the product while advertising managers associate brand with fame. Public relations managers also believe that brand is the same as the slogan. Designers regard brand as symbolic and having visual identity and research and development managers see it as product functionality. This is while every director generally finds brand as the organization’s history. It is not so strange then if we liked the story of the elephant in the dark to that of brand situation in Iran. Interestingly, none of the people who gave descriptions of the elephant in the story exaggerated. All of the definitions are correct but since none of them have experienced the brand in whole they can not present a comprehensive definition of the brand. Every one of the descriptions only covered a part of the brand that despite correctness ignored brand’s other aspects. Unfortunately, in our country the brand proprietors or product manufacturers and managers of service companies have not yet realized the importance and value of trademarks and are not aware of how vital it is to manage the brand. They fail to realize brand is the most important asset in their organization; therefore, they leave the fate of this precious asset in the hands of just about anyone. Unlike the prevalent belief that product-service introduce organizations it is the brand that introduces an organization. The more precisely companies and organizations invest on their brand’s structure the more directly they gain valuable results over time. We may wonder how such a result can be achieved. There’s only one answer: consistency on sales! All of us from the past to the present have known many brand names. Names such as Nescafe, Coca Cola, Nokia, etc., each bear a conceptual, sentimental and nostalgic meaning that can be summarized in a concept called “differentiation” or “distinction”. Different names can bring certain popularity for brands that ultimately result in choosing a particular one.

Now, if we have not seen this allegorical elephant or failed to understand its extended dimensions how can we precisely and effectively describe it to others? Certainly, we have to reach a single correct definition of brand: a definition whose image has already been drawn by intellectual collaboration of specialists on brand management.

What is brand duty?

Brands express their nature and tell us what they offer. In addition, they give their consumers the opportunity to demand responsibility from the brand manufacturers. Consumers with regards to past experiences with the brand and the producers’ marketing programs find out whether or not the brand meets their demands. In modern day world, people’s lives have become more stressful, time passes more quickly and everyone leads a hasty life. In such circumstances brands reduce complexities and while simplifying decisions in every day life they also lower the risk factors involved in every purchase.

What is brand management?

Brand management means choosing and blending the obvious and obscured characteristics of the product-service of an organization; a process by which it creates “difference” in an attractive, meaningful and boisterous approach. Our main tools in trade after the product’s constant improvement involve the transfer of its characteristics to the consumer through brand management. As a result of these activities our brand turns into a symbol that has to constantly be aware of its obligations with regard to the consumer. Many tradesmen and organizations mistake the meaning of brand management for other affairs such as marketing or oddly enough with design. Unfortunately, sometimes the designer also becomes disillusioned so that he can do that. More than anything, brand management is a discipline; it is a conceptual foundation that before it takes shape it has to express the brand and its duties. Nowadays, on average an urban consumer can identify up to ten thousand brand names. Every brand attempts to its best ability to penetrate the consumer mind and gain popularity. Today’s generation unlike the older generation that only knew a few brand names knows way too many. About thirty years ago the number of snacks produced for children were limited to one or a few brands hardly totaling 10. Today that even adults get confused over a mass of diverse brand names you can guess how children feel towards them. Every brand while creating distinction between itself and other competitors in the consumer mind also expresses its organization’s characteristics for them. Brands are valuable hidden assets of an organization that need to be carefully managed. Experimentally, brand management includes visible and invisible management of brand. Today in Iran compared to the past, more attention is paid on the visible aspects of brands such as packaging, consumer satisfaction or price. They have not yet mastered the management of the intangible aspect which involves consumer feelings that can only be altered and managed through communicative skills; name, slogan, symbol, color and composition make up the most important communicative factors.

Brand management and social evolutions in Iran

The most significant economic era in Iran, in its modern definition, goes back to the1960’s. The starting point of social change in our country goes back to the years before then. In fact, the constitutional revolution marks the beginning of new information into our country and relations with other countries as it provided grounds for advancement of cultural atmospheres. Although at that time the majority of people were not literate and news in the press circulated by word of mouth. The era of cultural change began with the Pahlavi rule. From 1925 to 1940 the modernist politics of the government were followed by drastic changes in a short time. The structure of ministries changed. New entities such as the universities emerged and the preliminary foundation of the industry took shape. On the other hand the public mind also changed. These changes resulted in widespread repercussions that gradually gave way to a new culture in society. This culture resulted in change in customs and the type of consumer products. The new style of home decorations, use of furniture and new commodities created new demands for their import into or production in Iran.

Even in Western societies that are considered as birthplace of world’s first brand names, the main elements of brands have been somehow preserved for the people to identify them. We also know that conforming to times they have rapidly changed and reconstructed and redesigned. Factors such as economic growth, communication expansion, societies’ increased level of education and visual culture cause for the brand to constantly improve and correct itself in order to maintain its market niche. The differences between eastern and western societies are aplenty. That is why such a trend started in eastern countries much later yet the paths of brand growth are very similar.

In our country in the early decades the image and symbol of every brand was much more effective than its name and slogan. In those times brands were created by use of animal images to make simple consumer recognition and choice. The first factories were established in those times. The match manufacturing company in Tabriz in 1930 sent its first products to the market. Limited products were manufactured back then of which matches and tobacco products are the most significant. In 1941-1953 political tensions halted economic growth. The urban middle class was expanding. Meanwhile, concepts such as modernism or westernization were being introduced in Iran by students returning to Iran after finishing their studies abroad.

The outset of brand management in Iran

Without a doubt the first consumer mass product factories are also considered the first brand makers in Iran. Although this happened in the 1960’s but its economic foundations had been set since many years back. The government’s second development program from 1955-1962 provided the opportunity for product circulation in Iran. The Iranian government had entirely gained political stability and investors found opportunity to invest supported by new banks that gave them credits (e.g. Industrial Credit Bank, 1956 and Mine Development Bank 1959).

The Chamber of Commerce was established and provided opportunity for foreign investment. On the other hand, small incomes from oil were obtained for the first time. This all led to a structure that in the next decade or the 60’s turned Iran into a country with a capitalist system.

1960, the birth decade of brand names in Iran

The third and forth development programs that were executed in the 1960’s resulted in economic and social change followed by stronger ties with product manufacturing and appearance of brand names. Roads, railways and airports were expanded in the country. Land reforms drew work force from rural areas into cities. Industrial factories began to operate. Shah-Pasand and Ghoo edible Oil, Golnar and Nakhl-o-Zeytoon (Palmolive in Iran) Soaps, Tide and Barf detergent powder, Khorousneshan chewing gum, Madar biscuits, Vitana crisps are among memorable consumer brand names of those times. Arj and Azmayesh were famous names in household appliances. Jahan, Shahrzad and Golestan teas, department stores such as General Mode for clothing or Sayehroshan for curtains and shades are among other brand names in Iran. Since industry had not grown large enough many consumer products were imported and brought their own culture with them; for example, tea in metal boxes with beautiful English designs. At that time a kind of economic and social changes were happening and compared to the previous decade there was a giant leap in product identity and shape followed by tremendous growth in the first products massively produced with remarkable packaging. Combined modern and traditional designs revived the new brands. Notably, the long-term economic doctrine automatically became basis for choosing the brand name and creating organizational identity became necessary.

The 1960’s can be called the age of product leadership because all products were bought with respect. Urban life was in its early stages and had a slower pace. People were informed of the products through television and radio. The television network spread all over the country and people watched it. The best artists were drawn to making advertisements and design for products and trademarks. The attractive and new brands were then accepted by people and even today people remain loyal to those brands.The visual elements also advanced and instead of animal signs and symbols human faces and characters appropriate with the content were replaced. For example, in an important and widely consumed product such as tea, instead of animal motifs (horse, camel, sheep, eagle) that helped recall the package, commercial names and new packaging with Iranian national identity appeared. Names such as Iran Tea, with a metal box and image of a northern Iranian woman and Golestan tea with a fancied image of Shahrzad the story teller in a chalice are to name a few.

Brands die the same way they are born

The sweet story of the birth and growth of brands reached its inherent imbalance and on the other hand socio-political problems scored to a point that resulted in the emergence of the 1979 Islamic revolution. For a couple of years after the revolution production and economy proceeded with previous standards but rather slowly. With the outbreak of the imposed war in years 1981-1989 production and industry came to a halt and consequently, the decline of brands. The ratio of supply and demand changed to acquiring coupons for necessary items. Not the kind of product or its packaging but its volume became important. After the end of war however, and removal of its scars during a couple of years after fortunately our country entered new eras of its independent economy. Older names along with new names became active again which continues to date but some remained in the middle of the way and some for a while stayed away from industry and manufacturing or left the scene completely. The new eras therefore, based on new changes created empty and new niches for the products and brands.

Conclusion

About 40 or 50 years ago the old names small or large were reckoned and brands were formed and until now some of them have still remained the forerunners in the international markets. If we carefully review successful brands we will see that all of them share six major benchmarks. The first three for creating the identity of a brand and the other three for maintaining brand niche through time.

Important benchmarks for creating brand identity

- Recallable (to remember quickly)

- Meaningful (related to content or consumer)

- Amiable (consumer likes brand form, name and literature)

Necessary standards for maintaining brand niche

- Transferable and expandable (how can the new product be expanded)

- Conformity to time (how capable of conforming to be updated or vice versa)

- Legally protected (how easily can it be imitated)

Brand management means management of details

The position and status of powerful names in the market shows us that the brand precedence and people’s faith in it is an asset that can not be easily obtained again. That is why we should carefully establish and protect what we make and link it to a position in the future. Now the most important role of informed and up to date managers of our country is to guide and protect the brands that are considered as children of industry and manufacturing. Our economy in the past 15 years has severely changed and it will continue to do so even more in the next fifteen years. By a more careful look at the trends in the past fifteen years we will see that many brands and numerous commodities have appeared in the market and never before has our country witnessed such level of diverse domestically manufactured products. The number of names that you choose on oil, tea, ice cream, detergents and other products are way more than before. On one hand consumers face greater supplies and on the other demands for buying because of financial limitations on the part of families, inflation, etc, have dropped. What makes us prefer a product over another is the kind of relation that we sentimentally build with that product. What do we like in it? How much has it been engraved in our mind? And how popular is it among us and others? Iranian brand owners however, pay less attention to the intangible aspect of creating a brand and we witness how the least respect to consumer sentiments have yielded great and valuable answers to organizations. We can divide organizations into two groups of old and new brand owners. The old brand owners have rarely been able to preserve their brand name’s value and merit. Managements have changed and short-term economic prospects affected their fate. Instead, new products replaced old brands with newer promises to the new generation. In the years 1991-1997 many old brand names embarked on renewing their old identity conforming to modern times. Brand owners in order for a powerful presence in modern day world need a comprehensive understanding of concepts such as brand and brand management. Achieving such integrated understanding will smooth the path to the future for the country’s economy and industry and once again I recall this brilliant verse from Rumi: If everyone holds a candle in their hand Differences of perception will pour out of each

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