CLASSIC BRANDS

Classic brands are a part of modern society that have
become so deeply ingrained into our everyday experiences
that they have become unobtrusive. A classic brand can be
defined as one that, through careful and thorough advertising,
marketing, and product positioning, has become
synonymous with the product category of which it is a
part. Additionally, a classic brand may also be one for
which there is no other recognizable competition within
its product class. In this sense, a classic brand is one that
has been raised above the commodity level, creating its
own product classification in the consumer’s mind. This is
not to say that it is the only item of its type, but rather
that the other competing products hold such a small market
share that they are considered obscure, making the
classic brand a category killer within its market segment.
EXAMPLES OF CLASSIC BRANDS
Based on the aforementioned definition of what constitutes
a classic brand, there are many products and services
that may be considered classic. Coca-Cola, (or Coke, as it
is commonly known) is the undisputed leader in the softdrink
industry, so much so that a consumer in a restaurant
who wants a cola drink is programmed to ask for a Coke,
whether the establishment serves Coke, Pepsi, or any
other brand. In the same sense, an adhesive bandage is
better known as a Band-Aid, facial tissue is referred to as
Kleenex, and Xerox has become a verb for the act of photocopying,
as well as a noun used for what the photocopy
machine produces.
Household products such as Arm & Hammer Baking
Soda, Clorox Bleach, and Barbie dolls provide strong
examples of classic brands that have no major market
competition. Of course there are other baking sodas,
bleaches, and dolls on the market, but even a savvy consumer
would be hard-pressed to name them. This is true
not only of tangible products but of services as well. Service
providers such as H&R Block and AAA (The American
Automobile Association) are classic brands whose
names are synonymous with the markets that they represent.
VISUAL IMPACT OF CLASSIC
BRANDS
Much of the initial recognition of a classic brand stems
not from its performance but from its visual impact on the
consumer’s memory. Granted, the product must perform
superbly to maintain its status; however, the initial
impression is often the result of a memorable logo. Classic
brands generally have logos or brandmarks that have
changed little since the inception of their product. The
Coke bottle shape, the Golden Arches of McDonald’s,
and the yellow and red Arm and Hammer box are all
brand identifiers that need no written words to explain
what they represent. Consumers instantly recognize these
symbols and associate them with the brands that they
depict. In the twenty-first century, with Internet advertising
becoming more and more prevalent, such simple
images as these are a low-cost means of further perpetuating
the brands’ success.
HISTORY OF A CLASSIC BRAND
Taking a brand from common to classic is no small task
and does not happen overnight. It involves strong commitment
from many levels of the organization, along with
a well-executed plan for remaining the leading player. A
fine example of a classic brand through history is Coca-
Cola, probably one of the best-known classics in the
world.
Coca-Cola was created by Dr. John Smyth Pemberton,
an Atlanta pharmacist, in 1886 as a beverage served
at his soda fountain. He described it to his patrons as
“delicious and refreshing,” a line still used in Coke’s advertising
in the twenty-first century. In 1892, Dr. Pemberton
joined forces with Asa G. Candler, an Atlanta businessman
who understood the power of advertising, and registered
the Coca-Cola trademark one year later. In order to
create brand recognition, Candler created a wide range of
promotional memorabilia for soda fountains—clocks,
fans, and other novelties, all depicting the Coca-Cola
trademark.
In 1915, Candler introduced the contour bottle,
which itself was granted trademark protection in 1977—
something not usually done for product packaging. The
emergence of the contour bottle, along with bottling
plants, allowed consumers to enjoy Coca-Cola in their
own homes. World War II had a major impact in the
building of the brand, since sixty-four of these bottling
plants supplied the armed forces with more than five million
bottles of Coke. It was also at this time that Coke

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Classic Brands
became associated with the American spirit of a can-do
attitude and became a global depiction of camaraderie and
refreshment.
After the war, Coca-Cola capitalized on the technology
of radio and television to continue to spread its brand
imagery. Its longstanding slogans and ad campaigns, such
as “It’s the Real Thing,” have permeated American life to
the point that they are no longer just advertising; rather,
they have become cultural icons. Coca-Cola’s commitment
to quality advertising continues in the twenty-first
century through its use of not one but five well-known
creative agencies whose primary focus is to maintain
Coke’s classic status.
This rich history, however, is not perfect. In the early
1980s, Coca-Cola tampered with perfection and launched
New Coke, a reformulated version of its product with a
new taste and new packaging design. Within weeks, consumers
were dissatisfied with the change, and Coke moved
swiftly to repair the damage that had been done. It quickly
produced Classic Coke, which was the original formula
that consumers had come to know and love. This proved
very costly to Coke not only from the production and bottling
side but also from the marketing side, where a corrective
marketing plan had to be rapidly implemented. Of
course, Coca-Cola rebounded with a resounding success,
and it continues to be the market leader.
FORCES BEHIND CLASSIC BRANDS
The success stories of the countless other classic brands
read much the same as Coca-Cola’s. These classic brands
all have one common thread throughout their history—
successful utilization of the four Ps of marketing, which
are product, placement, pricing, and promotion. It is the
balance of these four significant factors that takes a brand
from a name to a classic.
First and foremost is product. Brands must outperform
their competition in order to become a classic. The
best placement, pricing, and promotion will not raise a
mediocre product to classic status, regardless of how many
marketing dollars are pumped into it. Before becoming a
classic brand, the product must taste better, go faster,
work harder, or last longer than other products it competes
against.
Second, a product must be properly placed in the
market in order to overshadow the competition. Its target
market must be carefully decided on and, in the case of
most classic brands, be rather broad. Most classic brands
appeal to a wide demographic range, rather than a small
slice of consumers. People from all walks of life use most
of the brands that have come to be considered classics.
Band-Aids, Coke, Levi’s, and Timex can be found in just
Coca-Cola Trade Card, ca. 1915–1925. ©LAKE COUNTY
MUSEUM/CORBIS

120 ENCYCLOPEDIA OF BUSINESS AND FINANCE, SECOND EDITION
Classical Management
about any home in America, regardless of income, geographic
region, education, or age.
Next, pricing must be addressed. When looking at
the cost of classic brands in comparison to their competition,
the classic brands generally fall in the median price
range of the product category. While higher in price than
the store house brands and generics, they are not usually
at the costly end of the spectrum either. In part, this is
because in order to be well received by the masses, the
product must be neither overpriced nor undervalued.
There are many quality wristwatches on the market, but
Timex, one of the least expensive, has made a name for
itself as a classic brand.
Last, a product must be adequately and appropriately
promoted to become a classic brand. Timex, for example,
has created memorable television commercials over the
years by using the same premise over and over—“Timex
takes a licking and keeps on ticking.” The public has
grown accustomed to seeing what the wristwatch can
endure and remain functional. Such a promotional idea
stems from a creative department committed to the success
of the brand through consistent promotional
processes. Promotion must also be constant. There must
always be some kind of promotional vehicle in motion to
keep the brand name in the forefront of the consumer’s
mind. Point-of-purchase displays, radio, television, print,
and Internet advertising, corporate sponsorships, and contests
are all used, often simultaneously, to maintain the
public’s awareness of the brand.
These four traditional guidelines of product marketing
are crucially important for classic brands, for the competition
is generally aimed directly at them. Pepsi, for
example, spends millions of dollars a year targeting itself
directly against Coke. Coca-Cola cannot afford to rest on
its classic brand status—they must be constantly engaged
in maintaining the perfect balance of product, placement,
pricing, and promotion, or risk having its market share
overtaken by the hungry competition.
Classic brands are not likely to change over the next
several generations. They will not disappear overnight or
be swept away by increasing technology. Companies fortunate
enough to have classic brands in their product
lineup protect their esteemed place vigilantly through
careful marketing, innovative ideas, and respect for their
place in history.