Differences Between IPD And Meta-Examination - 1605 Words

large sample size the model use as well as the capability to directly authenticate the model also it can disclose their analytic advantage. Both IPD and APD meta-investigations are viewed as valuable for outlining the aftereffects of various individual examinations that are each too little to give substantial outcomes.Combined investigations of APD is adroitly the same as meta-examinations of independent analysis form on IPD including assessing study- calculating treatment impacts, surveying heterogeneity, evaluating the size and the impact of the heterogeneity. It is also evident that as well as substantial cost and years of exertion, IPD meta-examinations frequently require the unprecedented participation of every unique agent,†¦show more content†¦Once in a while does an IPD meta-examination give access to the patient information, for example, the patients, medical history, as well as a patients lab test. Or maybe, access is given to information separated at the time of care for every patient and the genuine precision of the APD is usually not confirmed. Haidich, A. B. (2010)It is contended that the benefit of IPD is the capacity to check the information recorded in the distributed trial. Haidich, A. B. (2010) While information checking is now and then thought of as, a exorbitant and tedious process and for this reason the process is seldom attempted. Haidich, A. B. (2010) At the point when the checked information has been contrasted with unchecked information, contrasts with predicted results are uncommon Even though all info rmation is accessible as opposed to just brief information, Haidich, A. B. (2010)examinations are for the most part in view of meta-investigation estimators of treatment results as in APD meta-examinations. Haidich, A. B. (2010)A few examinations have shown that when the mixture of studies is the same and comparative measures are applied, the results capacity is calculated for suitable strategies are basically the same as for IPD and APD meta-investigation. Haidich, A. B. (2010) Another conceivable benefit to IPD meta - investigations is the capacity to revise information from a past distribution this gives an individual an extended period to make inquiries with aShow MoreRelatedJuvenile Delinquency And The Nature Of Police Juvenile9755 Words   |  40 Pagesdisrespectful, whether a weapon is present, and, or whether a supervisor is present (Myers, 2004). Initially based on Myers’ (2004) examination of police-juvenile encounters in urban settings (Indianapolis, Minnesota and St. Petersburg, Florida), the present study examined police-juvenile encounters in the rural areas of the Mississippi Delta. It sought to describe the relationship between the types of behaviors exhibited by the police in their dealings with the juveniles, such as the police use of authorityRead MoreTraining and Development Literature Review Essay14850 Words   |  60 Pagespreferences and expectations and work styles of current trends of employees (Callender, 2003; CIPD, 2006; AGR, 2006) but implications for the design and implementation of development schemes have rarely been considered. The idea of generational differences is overstated here by some writers who acknowledged that experiences today are very different from those of a few years back, and different approaches to training and development are required (King, 2003). (Connor et al., 2003) have questionedRead MoreLeadership Development42674 Words   |  171 Pages......................................................................14 3.2.3 Issues in relation to management skills and competencies.....................................16 3.2.4 Ethnic minority groups in management and leadership and gender differences ....17 3.3 Management and leadership development: current state, recent and future trends.......18 3.3.1 Volume and nature of management and leadership development in the UK .........18 3.3.2 Trends in management and leadership development.....

The Global Financial Crisis Of The Usa - 1383 Words

The recent global financial turmoil started on July 2007 ,mainly in the USA and spread among developed nations in the later part of 2008 and subsequently shifted to the developing nations .this crisis consisted of some prime drawbacks not only for the developed countries but also for developing countries .the most talked about issue in the recent financial arena in the global financial crisis ,which started to show its effect in the middle of the year 2007.the turmoil ,however ,was rooted in the subprime mortgage crisis that began in mid -2007.the massive global crises ,already being dubbed by some as the great Recession since the great depression of the 1930s,began since the end of 2007with the subprime montage crisis in the USA .it subsequently and quickly spread to the international financial system, resulting in negative growth rates in key countries and regions ,including the US,UK and Japan .many developing countries were also infected by the contagion, from China, Brazil and South Africa to the countries of South Asia and Latin America. Asian countries were more affected by a strong recession in the USA Bangladesh Bangladesh is a developing country and globalization integrates it with the global market in diverse areas. Bangladesh is equally affected by this global turmoil in the short run as well as in The long run. It is very difficult to predict the scenario in the long term; however, short term impact should duly be taken into consideration. The globalShow MoreRelatedWhy India Recovered Quickly From The 2008 Global Crisis Essay1594 Words   |  7 Pagesrecovered quickly from the 2008 global crisis? Vivek Shah MBA AF 629 December 12, 2016 Introduction It’s the most heard term about the global economy in the recent years and it’s the year we have been always hearing about its 2008. We all have been a part of it in some or the other way and all the major economies had been affected by the global turmoil which eventually lead to the worst situation after the Great depression of 1929. The sub-prime crisis in USA which lead to great recession whereRead MoreFinancial Crisis And Its Effects On Businesses, Governments, And Consumers978 Words   |  4 PagesThe worldwide impact of the recent financial crisis outlines the importance of having a decent understanding of crises. Latest episode has definitely showed that status of economic as well as the financial performance is greatly affected by financial turmoil. During the crisis, world stock markets have been collapsed, largest financial institutions have been bought out or fallen, and the wealthiest nations like UAE, UK of USA had to stand up and aid their financial system s as well as the economic onesRead MoreThe World Experienced A Tremendous Financial Crisis Essay1131 Words   |  5 Pagestremendous financial crisis which rooted from the U.S housing market; moreover, it is considered by many economists as one of the worst recession since the Great Depression in 1930s. 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According to Burns (1946, p.3): â€Å"business cycle is a kind of fluctuation happened in aggregateRead MoreGlobal Financial Crisis 1067 Words   |  5 PagesThe best evidence so far for the existence of an American empire, despite denials to the contrary, is the Global Financial Crisis (GFC). The persistent removal of restrictions and oversights on the domestic financial system of the US, combined with the decisions of individual firms, other governments and foreign financial organisations, culminated in the singe largest depreciation of assets and currency valuations in history, surpassing even the Great Depression in its extents. The United States

Disneyland Resort Paris Case Study Free Essays

I believe that managers should adapt the resort to more local cultures for the 15th Anniversary in 2007. Even if Disney adapts to the local culture there is still going to be a sense of the American Disney World in the theme. Disney has expanded to countries all over the world yet they cannot change the fact that the characters are the same wherever they go. We will write a custom essay sample on Disneyland Resort Paris Case Study or any similar topic only for you Order Now There is always going to be a Winnie the Pooh and Lion King and cultures all over the world view the American made movies. However; like mentioned in the case, I believe that even though very little of Disney’s core product needs adaptation, they must focus and change how they position and sell their product in each of the markets. To one market Mickey may mean something totally different to another. In order to be successful I believe that they do have to alter the way they do things from country to country and culture to culture. If they do not adapt to the local culture they could see more financial instability like they did in the past and they may see less people coming to their parks in Paris. One of the mistakes mentioned in the case was about how Disney did not serve alcohol in the park when it first opened and how they had to change that to meet the needs of their consumers and even this minor mess-up was not forgotten by the locals and it took them a long time to get over it. I think Disney could implement my suggestion by looking deeper into the cultures of the surrounding countries and the people who travel to the Paris park and research what they want and what would make their experience better. Also, look into their cultures and figure out how they like to do things. There are numerous countries and cultures that travel to Disneyland Paris and it is hard to get a grip on who the average consumer is and what they look like. This is where Disney really needs to meet the needs of numerous culture and people. How to cite Disneyland Resort Paris Case Study, Free Case study samples

Promoting Policies and Macroeconomic Stability †Free Samples

Question: Discuss about the Promoting Policies and Macroeconomic Stability. Answer: Introduction The aim of this paper is to discuss about the stable equilibrium in the economy in both microeconomic and macroeconomic concept. Equilibrium is termed as stable if the returns to the initial equilibrium position through process of counteracting forces as it are deviated from equilibrium point due to external disturbances. According to the stable equilibrium of Marshall, disturbance in equilibrium quantity occurs. On the other hand, disturbance in equilibrium price occurs in Walrasian stable equilibrium concept (Dierker, 2012). In both circumstances, the position of equilibrium is restored. The paper also highlights on the determination of existence of stable equilibrium in the Australian economy. The study also recognizes the necessity of government intervention when external shocks deviates the economy from stable equilibrium position. Stability in economic equilibrium can be explained by both macroeconomic and microeconomic stability. Microeconomic stability in the economy is discussed with the help of market equilibrium shown in the figure below. This figure shows that the market equilibrium occurs at the intersection point between the demand curve (DD) as well as the supply curve (SS) (Rader, 2014). Now, owing to some disturbance, the price of a commodity rises to OP0 corresponding to which the quantity demanded is OQ0 and quantity supplied is OQ0 (Sutherland and Hoeller, 2012). However, as OQ0 exceeds OQ0, it outcomes in excess supply that is shown by Q0Q0. As the objective of the seller is to maximize profit, they would decrease production. Thus, price falls and ultimately reaches the initial point OP ** owing to competition among the retailers. In addition, if the price of a commodity falls to OP1 owing to disturbance , then the quantity demanded (OQ1) exceeds quantity supplied (OQ1) that results in excess demand. However, the seller increases the price of that particular commodity , which again shifts the price level to OP**. This highlights stable market equilibrium in free market. Economic stability in macroeconomic terms is defined by AD-AS (aggregate demand and aggregate supply) model. However, economic stability occurs when the AD curve intersects with the AS curve. This macroeconomic stability acts as shield against exposure to fluctuations in currency and interest rate in worldwide market. High fluctuation in currency, debt burdens and price leads to economic crisis and downfall in GDP of the nation (Creel, et al., 2015). Additionally, the government adopts monetary as well as budgetary policy for stabilizing inflation and hence proper public finances leads to long term economic growth. These policies help the economy to recover from bad phase and hence there occurs trade off. Determining whether stable equilibrium exists in the Australian economy As Australia has been known as mixed market economy, the decisions regarding production and distribution are taken with the help of government intervention. The current state of the Australian economy reflects that the economy is in stable equilibrium (Sangnier, 2013). The macroeconomic indicators including GDP, consumer price index (CPI), total employment, strength of the currency, interest rates and trade balance helps in appraising the stability for increasing growth of the economy. The main aim of the Australian government is to sustain economic growth by retaining low inflation and limiting debts as well as liabilities (Borio, 2012). Moreover, the government tries to intervene in the business as the fluctuation in business cycle impacts on the GDP of the economy. Australian government adopts macroeconomic policy for controlling price level as it linked with stability as well as growth of the economy. In this study, inflation rate and GDP is considered for illustrating the existe nce of stable equilibrium in the Australian economy. The GDP of the Australia has been stable over the recent period which reflects that there has been slight fluctuation in consumer spending, government expenditure, investment in business and balance of trade. Though there has been slight variation in GDP of the economy, it did not influence the stability of the economy. The Australian government tries to keep inflation rate low by implementing proper monetary policy. Recent study reflects that the inflation rate in this economy has been recorded within the target rate, which is 2-3% set by the Reserve Bank of Australia (RBA). The figure below shows stable inflation rate in Australia. Australian government restores economic stability by adopting monetary as well as fiscal policies (Angeli et al., 2012). They implements fiscal policies by using budgetary process and enhance the nation by running deficit budget. On the other hand, they also implements monetary policy through operations in the market that in turn affects the rates of interest. Thus, they keeps the interest rate low for stabilizing the economy. The two instruments that are devised by the Australian government for stabilizing the economy are Automatic stabilizers and Discretionary stabilizers. As automatic stabilizers affects the aggregate demand in countercyclical way, the government adjust budget by over viewing on the current economic phase (Agnor and Pereira da Silva, 2012). This tool includes tax receipts such as PAYTG tax, GST etc. On the contrary, discretionary stabilizer involves reforms in tax structure, government expenditure and in other sectors. It requires budget reforms that in turn influence aggregate demand and stability in the economy. For example, Appreciation of Australian dollar in mining boom in relation to other currencies helped in stabilizing inflationary pressures and ensures that Australian economy receive price signals for facilitating resource flow. It also benefits the mining boom by raising purchasing power of the households of Australia. Conclusion It can be concluded from this assignment that stable equilibrium exists in the Australian economy over the last few years. The Australian government intervenes for stabilizing the economy by implementing different stabilizing instruments. Hence, intervention of the Australian government is required for making economy stable as it topples during the phases of business cycles. References Agnor, P. R., Pereira da Silva, L. A. (2012). Macroeconomic stability, financial stability, and monetary policy rules.International Finance,15(2), 205-224. Angeli, D., Amrit, R., Rawlings, J. B. (2012). On average performance and stability of economic model predictive control.IEEE transactions on automatic control,57(7), 1615-1626. Borio, C. (2014). The financial cycle and macroeconomics: What have we learnt?.Journal of Banking Finance,45, 182-198. Creel, J., Hubert, P., Labondance, F. (2015). Financial stability and economic performance.Economic Modelling,48, 25-40. Dierker, E. (2012).Topological methods in Walrasian economics(Vol. 92). Springer Science Business Media. Rader, T. (2014).Theory of general economic equilibrium. Academic Press. Sangnier, M. (2013). Does trust favor macroeconomic stability?.Journal of Comparative Economics,41(3), 653-668. Sutherland, D., Hoeller, P. (2013). Growth-promoting policies and macroeconomic stability.

Problems and Prospects of Capital Market in Bd Essay Example

Problems and Prospects of Capital Market in Bd Essay Problems and Prospects of Capital Market In Bangladesh What is Capital Market? A capital market is a market for securities (debt or equity), where business enterprises (companies) and governments can raise long-term funds. It is defined as a market in which money is provided for periods longer than a year, as the raising of short-term funds takes place on other markets (e. g., the money market). The capital market includes the stock market (equity securities) and the bond market (debt). Financial regulators, such as Securities and Exchange Commission (SEC) for Bangladesh or for the UK Financial Services Authority (FSA) oversee the capital markets in their designated jurisdictions to ensure that investors are protected against fraud, among other duties. Capital markets may be classified as primary markets and secondary markets. In primary markets, new stock or bond issues are sold to investors via a mechanism known as underwriting. In the secondary markets, existing securities are sold and bought among investors or traders, usually on a securities exchange, over-the-counter, or elsewhere. What is stock? Stock is a security issued in the form of shares that represent ownership interests in a company. There is both common stock (often simply called stock, shares, or equity) and preferred stock. Common stock holders elect the companys board of directors and actively participate in the companys success (or failure) through a rising (or falling) stock price. Common stock holders may also receive dividends, provided the company is profitable, obligations to commercial creditors and bondholders have been met, and the board sees fit to declare them. We will write a custom essay sample on Problems and Prospects of Capital Market in Bd specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on Problems and Prospects of Capital Market in Bd specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on Problems and Prospects of Capital Market in Bd specifically for you FOR ONLY $16.38 $13.9/page Hire Writer How can it be traded? For example if you want to transfer your part of ownership of the firm to other then you should sell the deed of ownership to someone else. In that case, you have to maintain some papers. For example, a sale deed will be signed and the deed will be registered in government registry office. In case of stock when you buy stock/share of a certain company you will be given a share certificate. This certificate certifies that you own that much part of the company. In addition, you have to register your ownership certificate with companys register. However, due to some problems with paper certificate (such as copied certificate, maintenance of huge paper certificates) a new system of electronic stock (dematerialized share) is made. In this system, your stock is preserved in an electronic system rather delivering you the paper shares. Moreover, you do not need to register your ownership. The ownership is automatically transferred to you and preserved in an automatic system. This system is called Central Depository Bangladesh Limited (CDBL). What is stock exchange? A stock exchange is an entity which provides trading facilities for stock brokers and traders, to trade stocks and other securities. Stock exchanges also provide facilities for the issue and redemption of securities as well as other financial instruments and capital events including the payment of income and dividends. The securities traded on a stock exchange include: shares issued by companies, unit trusts, derivatives, pooled investment products and bonds. To be able to trade a security on a certain stock exchange, it has to be listed there. Usually there is a central location at least for recordkeeping, but trade is less and less linked to such a physical place, as modern markets are electronic networks, which give them advantages of speed and cost of transactions. For example Dhaka Stock Exchange has a electronic trading system called TESA and Chittagong Stock Exchange has an electronic trading system called VECTOR. These two systems work as an arrangement to help buy/sell of listed securities. Capital Market Participants: The participants of capital market are mainly those who have a surplus of funds and those who have a deficit of funds. The persons having surplus money want to invest in capital market in hope of getting high returns on their investment. On the other hand, people with fund deficit try to get financing from the capital market by selling stocks and bonds. These two kinds of activities keep the capital market going. Surplus Unit: Surplus Unit has enough funds over all of their liabilities to invest in the capital market. It may broadly be classified into two investors (i) Individual Investors; (ii) Institutional Investors. i)Individual Investors: Individual Investors participate in the capital market through purchasing Govt. Bonds Notes, Public Limited Co. ’s shares, or mutual funds. (ii)Institutional Investors: When the institutional investors have surplus funds that are not needed for a short time period, they seek to make money from their cash surplus by purchasing securities from the market. Institutional Investors may be Commercial Banks, Insurance Companies, Leasing Companies, Investment C orporation Bank (ICB), Asset Management Companies, and various other companies. Deficit Unit: Deficit Unit usually takes loans or capital by selling bonds or shares to the surplus Unit to arrange necessary funds for investment in different promising business. Deficit group may further be classified into two groups (i) Government; (ii) Public Limited companies. (i)Government: The Government of Bangladesh always experiences its expending requirements exceed their tax revenues. To balance this difference, it needs to collect fund through borrowing. Government also borrows on behalf of nationalized industries, municipalities, local authorities and other public sector bodies. It can borrow by selling Treasury Bonds and Treasury Notes to the surplus Unit through capital market. (ii)Public Limited Companies: Public Limited Companies arrange their equity capital and debt capital by selling shares bonds or debentures respectively to the surplus unit for the purpose of fund modernization or future business expansion. DIAGRAM OF FINANCIAL MARKET Dhaka Stock Exchange Dhaka Stock Exchange (Generally known as DSE) is the main stock exchange of Bangladesh. It is located in Motijheel at the heart of the Dhaka city. It was incorporated in 1954. Dhaka stock exchange is the first stock exchange of the country. The management and operation of Dhaka Stock Exchange is entrusted on a 25 members Board of Director. Among them 12 are elected from DSE members, another 12 are selected from different trade bodies and relevant organizations. The CEO is the 25th ex-officio member of the board. As of January 20, 2010, the Dhaka Stock Exchange had 444 listed securities with a combined market capitalization of TK. 2,049. 34 billion. Chittagong Stock Exchange BACKGROUND The Chittagong Stock Exchange (CSE) began its journey in 10th October of 1995 from Chittagong City through the cry-out trading system with the promise to create a state-of-the art bourse in the country. Founder members of the proposed Chittagong Stock Exchange approached the Bangladesh Government in January 1995 and obtained the permission of the Securities and Exchange Commission on February 12, 1995 for establishing the countrys second stock exchange. The Exchange comprised of twelve Board members, presided by Mr. Amir Khosru Mahmud Chowdhury (MP) and run by an independent secretariat from the very first day of its inception. CSE was formally opened by then Honorable Prime Minister of Bangladesh on November 4, 1995. As of January 20, 2010, the Chittagong Stock Exchange had 227 listed securities with a combined market capitalization of TK. 1,640 billion. The key Indicators of DSE and CSE are shown in the following table: (as of January20, 2010) Sl. No. Indicators DSECSE 01. Total No. of Listed Companies 282209 02. Total No. of listed Mutual Fund 1816 03. Total No. of listed Bond Debenture1362 04. Total No. of Listed Securities (01+02+03)436227 05. Total No. of shares4,428,589,137414,612,267 06. Total Issued Capital (Share)TK. 230. 62 billionTK. 223 billion 07. Total Market Capitalization (TK. )TK. 2,049. 34 billion. TK. 1,640 billion. 08. Total Market Capitalization (US $)29. 36 billion23. 5 billion 09. General IndexDGEN 4956. 73CSCX 9346. 70 The Potentiality of the Bangladesh Capital Market The capital market is the engine of growth for an economy, and performs a critical role in acting as an intermediary between savers and companies seeking additional financing for business expansion. Vibrant capital is likely to support a robust economy. While lending by commercial banks provides valuable initial support for corporate growth, a developed stock market is an important pre-requisite for moving into a more mature growth phase with more sophisticated conglomerates. Today, with a US $ 89. 04 billion (TK. 6149. 43 billion)economy and per capita income of roughly US $621, Bangladesh should really focus on improving governance and developing advanced market products, such as derivatives, swaps etc. Despite a challenging political environment and widespread poverty, Bangladesh has achieved significant milestones on the social development side. With growth reaching 5. 8 percent in 2009, the economy has accelerated to an impressive level. It is noteworthy that the leading global investment banks, Citi, Goldman Sachs, JP Morgan and Merrill Lynch have all identified Bangladesh as a key investment opportunity. The Dhaka Stock Exchange Index is at a 10-year high, however, the capital market in Bangladesh is still underdeveloped, and its development is imperative for full realization of the countrys development potential. It is encouraging to see that the capital market of Bangladesh is growing, albeit at a slower pace than many would like, with market development still at a nascent stage. The market has seen a lot of developments since the inception of the Securities and Exchange Commission (SEC) in 1993. After the bubble burst of 1996, the capital market has attracted a lot more attention, importance and awareness, which have led to the infrastructure we have in the market today. The Recent Surge in the Capital Market The Dhaka and Chittagong Stock Exchange Index was at a 10-year high in the 2009 year end. DSE General Index rose at 4,800 and CSE SCX rose at 8560 in the year end of 2009 which made it Asias one of the top performers. The steady investment atmosphere prevailing throughout 2009 is considered one of the main reasons behind this surge. Good return prospects, stable market growth, and uninterrupted trading as a result of political stability attracted foreign investors to invest in local securities. The banking sector, followed by the power, pharmaceutical and cement sectors, received the most foreign investment. The government has also attracted investors by pledging to sell securities of state enterprises. The state-owned companies Jamuna Oil Ltd, Meghna Petroleum Ltd, and Titas Gas Ltd debuted in the bourses in 2008. The P/E ratio now stands at least 20x as compared to 14.1x for emerging markets. It seems sustainable if the planned big IPOs of a few SOEs and the other telecom companies like Grameen Phone Ltd. take place in the market. More such large issues are required, which can emerge out of the energy, infrastructure and public sectors. Challenges Ahead of the Capital Market 1. Information Asymmetry Access to credible information is restricted Retail investors lack dedicated investment process infrastructure. Forced to look to brokers for advice that may consist of market rumors. Syndicate of large investors manipulate the market through price inflation, pump and dump strategies. 2. Supply Side Constraints Lack of fundamentally sound scrips as companies prefer traditional bank finance to capital markets Need to encourage listing of good scrips in the market. Reducing supply side constraints generates liquidity, reducing scope for price manipulation. 3. Lack of Professional Portfolio Management Ratio of institutional-to-retail investors remains low Institutional investors bring stability through non speculative long term investments. Listing of more mutual funds can be a starting point to increasing institutional activity. 4. Valuation Disparity Value of scrips is subject to speculative trading rather than sound fundamentals, resulting in market volatility Education of investors, overall development of capital markets through time can address this issue. 5. Lack of a Formal Debt Market Bangladesh does not have established secondary debt market Markets are unable to provide short term financing solutions to corporations, i. e., commercial paper. Listing of debt instruments from quality issuers and institutional trading can increase activity. Introduction of BASEL II guidelines by Bangladesh Bank likely to encourage banks to raise capital through debt instruments in 2010. 6. Quality Research and Analysis Development of quality equity research in the country is yet to match the growth of local capital markets Quality research increases investor awareness, reducing speculative trading and market volatility. 7. Central Co-ordination of Regulators Top down co-ordination between Bangladesh Bank, SEC and related bodies would: Streamline regulatory processes. Reduce time required for quality issuers and new capital markets products to reach mark. Recent Regulations and Opportunity Space in the Capital Market 1. Strengthening of Surveillance Following the stock market crash of 1996, measures have been taken to prevent future incidents of the sort Constant market surveillance by the SEC. Increasing standards of corporate governance. Dematerialization of Trading. Focus on investor education – establishment of Capital Markets Institute. 2. Introduction of BASEL II Guidelines Introduction of BASEL II guidelines by Bangladesh Bank likely to encourage banks to raise capital through debt instruments in 2010 Issuance of debt and equity by banks through capital markets likely to generate increasing liquidity. 3. Introduction of Book building / Price Discovery Introduction of book building is a big step towards developing Bangladesh capital markets Book building reduces risk of undervaluation for issuers. Ensures fair pricing by factoring in demand, likely to encourage listing of large, well-reputed companies. SEC qualifying conditions for book-building set certain criteria for companies to be eligible. 4. Infrastructure Development through Capital Markets Focus on infrastructure development may see Government of Bangladesh (GoB) seek capital markets as an avenue for financing GoB plans to issue TK. 5. 0 billion (US$72mm) in securitized bonds to fund Bangabandhu Bridge. Cabinet approval for the issue of TK. 42 billion (US$650mm) in bonds to fund Padma Bridge likely. Plans to construct second bridge over Padma at a cost of US$1. 89bn signals potential financing needs. Further GoB funding requirements arise from needed development in the power sector and development of roads and highways. Bangladesh Capital Markets – The Future 1. Institutionalization of the Market We expect to see more institutional investors bringing long term commitment and liquidity to the market -Longer investment horizons reduce market volatility. -Institutional investment strategies are fundamental focused rather than speculative. 2. Listing Fundamentally Sound, Well-reputed Companies With the improvement of corporate governance, we can attract sound corporations to come to capital markets -Quality scrips provide liquidity and motivation for educated investors to participate in capital markets. -Listing of large, reputable corporations attract foreign investments, increases liquidity. -Introduction of new scrips in different sectors provides investors with broader options. -Recent addition of telecom sector likely to generate interest among other large cap companies to list. -Inclusion of well reputed, large companies will reduce ability of select â€Å"investor syndicates† to manipulate prices. 3. Flotation of Mutual Funds Strong pipeline for listing of mutual funds (US $ 300mm in mutual funds expected to enter the market by mid 2010) -Provide retail investors with safer, indirect market access, preventing wealth capital losses. -Reduces dependency on retail investors, allowing institutions to bring commitment and stability to the market. -Bring much needed market stability that only institutional investors can provide. 4. Facilitation of Private Equity Investments Recent introduction of certain foreign private equity investors in Bangladesh -Provide stable flow of capital given mid to long term investment horizon of PE investments. High risk hurdles and selective investments direct PE funding to quality local corporations. 5. Inclusion in Global Indices Bangladeshi companies are now included in global indices -The Dow Jones SAFE Index already includes 5 Bangladeshi banks and a power company. -Inclusion of high quality scrips in the index can result in inclusion of our index in global indices such as MSCI Emerging Markets, etc. Other Major Future Prospects Within the next 2 years, 26 large profitable state-owned enterprises (SOEs) are going to be listed under Direct Listing Method to increase depth of the market. The Private Public Partnership (PPP) will be implemented through capital market for financing government projects. The Telecom companies (Aktel, Teletalk, and Banglalink) are interested to be listed in capital market like Grameen Phone. British High Commissioner of Bangladesh Stephen Evans has recently said about 1 million Bangladeshis living in UK are willing to invest in the capital market. Bangladesh Shipping Corporation (BSC) is almost ready to float the share and it is expected that it will raise TK. 50 billion from the market Power and energy sectors demand for capital is 5 to 10 billion dollar within short time to meet the immediate needs of 5000 MW power demand. Introducing book-building method that is well accepted by everybody and it is expected that the SOEs will also be off-loaded through the method. A deep-sea port requiring 1 billion dollar is going to start with a policy decision that it will also be listed. Export oriented food processing industry needs huge capital and technical capacity to meet the growing standards in global market for marine food, fruits and poultry. IT sector with our talented developers, yet to demonstrate the massive potentials of software industry of the country. Problems of the Capital Market in Bangladesh The unexpected rise and fall in share prices are mostly followed from the general confidence of the investors about political stability, euphoria of investment in shares, prospect of quick capital gains, a vacuum in respect of institutional presence in the share market, monopolistic dominance of member brokers, inefficiency of the SECS to cope up with the developments, xistence to Kerb market, and absence of proper application of circuit breaker etc. Delivery versus payment mechanism was used as one of the main vehicles of manipulation. Kerb market gave birth fake and forged share certificates. Although there are increasing trends in all the indicators, DSE, CSE are not free from problems. The problems of DSE, CSE may be summarized as under: 1. Price manipulation It has been observed that the share values of some profitable companies has been increased fictitiously some items that hampers the smooth operation of Stock market. 2. Delays in Settlement: Financing procedures and delivery of securities sometimes take an unusual long time for which the money is blocked from nothing. 3. Irregulations in Dividends: Some companies do not hold Annual General Meeting (AGM) and eventually declare dividends that confused the shareholders about the financial positions of the company 4. Selection of Membership: Some members being the directors of listed companies of DSE, CSE look for their own interest using their internal information of share market. 5. Improper financial statement: Many companies do not focus real position of the company as some audit firms involve in corruption while preparing financial statements. As a result the shareholders as well as investors do not have any idea about position of that company OTHER PROBLEMS The concept of centralization of the securities market has not been implemented that arises technical problems and political infighting. The intrinsic values for securities traded are sometimes estimated without considering the current market prices of the securities. The absence of comprehensive legal and supervisory framework. Lack of skilled manpower as well as financial and non-financial institutions involved in the securities market. The lack of proper policy framework that provides incentives and protection to investors. The dominance of bigger public sector and borrowing of public sector as well as government form the institutional sources rather than the market. Suggestions to Improve the Activities of Capital Market To introduce automated monitoring system that may control price manipulation, malpractices and inside trading. To introduce full computerized system for settlement of transactions. To force the listed companies to publish their annual reports with actual and proper information that can ensure the interests of investors. To control and abolish kerb market form premises of stock market. To take remedial action against the issues of fake certificates. The Composite Quotation System (CQS) should be introduced and implemented that available the exchange specialist bid-ask quotes to the subscribers. To create arrangement to set-up merchant banks, investment banks and floatation of more mutual funds particularly in the private sectors. Banks, insurance companies and other financial institution should be encouraged deal in share business directly. The brokers should not be allowed to deal in the Scripps on their own accounts. The management of DSE and CSE should be vested with professionals and should not in any way be linked with the ownership of stock exchange and other firms. Conclusion To expedite the market development process, it may be a good idea to decide on certain milestones and link them to the disbursement of Development Credit Support of the World Bank. The government is making good progress in other sectors, including monetary management, corporatisation of public-sector banks and others through this linkage. The missing link between the SEC, Bangladesh Bank, Bangladesh Telecom Regulatory Commission and other regulatory bodies is now getting established. Individually, they were not serving each other’s interests, and there was no effective coordination among them, hence the country was deprived of great initiatives. A dedicated financial market cell at the Ministry of Finance could be formed to coordinate with these regulators as well as other ministries. In terms of creating market depth, more state-owned-enterprises that are profitable should be listed. The supply of securities can be increased if the SOEs are allowed to operate through the stock exchanges. Floatation of SOE scrips is expected to expand the market by couple of times. Corporatisation of SOEs will bring in transparency as well as confidence on the government financial system. The Bangladesh capital market still has a long way to go. The recent measures taken by the transitional government have already begun to influence the markets positively. If more investor friendly policy reforms were to be implemented, the capital market will undoubtedly play a critical role in leading Bangladesh towards being the next Asian tiger with growth comparable to India, Vietnam and the other most dynamic economies in the region. Appended Part Index DSE: Dhaka Stock Exchange CSE: Chittagong stock Exchange DGEN: DSE General Index CSCX: CSE Selective Categories Index SOEs: State-Owned Enterprises SEC: Securities Exchange Commission CQS: Composite Quotation System AGM: Annual General Meeting BSC: Bangladesh Shipping Corporation GoB: Government of Bangladesh FSA: Financial Services Authority in UK IPO: Initial Public Offering CDBL: Central Depository Bangladesh Limited BSB: Bangladesh Shilpa Bank BSRS: Bangladesh Shilpa Rin Shashta ICB: Investment Corporation of Bangladesh Data Sources http://www. dsebd. org http://www. csebd. com http://www. scribd. com/document http://en. wikipedia. org/wiki/Capital_market http://en. wikipedia. org/wiki/Stock_exchange

The narrator presents the boys as being inexperienced and childish in order to put emphasis on their obliviousness Essay Example

The narrator presents the boys as being inexperienced and childish in order to put emphasis on their obliviousness Essay Example The narrator presents the boys as being inexperienced and childish in order to put emphasis on their obliviousness Essay The narrator presents the boys as being inexperienced and childish in order to put emphasis on their obliviousness Essay Hes done it before, with the murders committed by Mr. Gort, for instance, and the building of the transcontinental railway, or the underground passage between our two houses. The narrator uses bombastic language in order to accentuate their innocence and naivety. This is evident of their foolhardiness, as the two boys are constantly partaking in their own childhood adventures without contemplating the possible ramifications. It is blatantly exaggerated and puts emphasis on Keiths manipulative and domineering nature, as Stephen seems to play along with him. Moreover, these are antecedent events which further accentuate their obliviousness, as they are unaware of what they are up against. Therefore, the narrator presents them as such in order to emphasise the fact that they are out of their depth. The narrator presents Stephen as misled in order to emphasise his obliviousness. I understand now that it will involve frightening difficulties and wrenching conflicts of loyalty. I have a profound intimation of the solemnity and sadness of things. The narrator uses war connotations, such as wrenching conflicts of loyalty, in order to put emphasis on the gravity of their situation. This is a microcosm, in which Keith and Stephens world is perceived as being a war or conflict of some sort and acts as an embodiment of the Second World War, in which it is a sinister world of lies and espionage, as in the Second World War, many people changed sides. Furthermore, frightening difficulties can be seen as an allusion to the Second World War, as the many forces were to face a whole variety of hindering difficulties. In addition to this, wrenching conflicts of loyalty is a cataphoric reference as Stephen finds himself in a troublesome predicament at one point or another: saving Keith from a caning or withholding information to protect Mrs. Hayward. Furthermore, sibilance is used in solemnity and sadness, in order to emphasise the sombreness of their new adventure, with Stephen unaware of what is really going on. This is, in effect, a met anarrative, which puts emphasis on the various effects of espionage, as Keith and Stephens spywork acts as a minor representation of espionage as a whole in society. Therefore, Stephens gullibility is presented in order to foretell his ultimate exposure to the actual realities. The narrator presents Keiths family as chaotic so as to put emphasis on his misinterpretations regarding the Haywards. His family have taken on the heroic proportions of characters in a legend noble father and traitorous mother playing out the never-ending conflict between good and evil, between light and dark. Dramatic irony is used, as we know that Mrs. Hayward is not a traitor at all, yet at the same time is having an affair with Aunt Dees husband, Uncle Peter. This emphasises the sexual awakening and maturing of Stephen, as he has not been exposed to such things thus far. Furthermore, oxymorons are used, good and evil, between light and dark, which is ironic, as Ted is a sadistic, abusive husband and father whilst Mrs. Hayward is a victimised wife, someone who has engaged in an affair with her sisters husband due to the abusiveness of her own spouse. Stephen is not aware of these happenings until later on, and so it accentuates their respective facades, as Ted is a former war hero yet at the same time is a manic husband who abuses his wife and canes his son regularly, whilst Mrs. Hayward is a reserved wife and mother who is pleasant and described as being very attractive. Moreover, His family have taken on the heroic proportions of characters in a legend is both ironic and a hyperbole. It is ironic as Ted Hayward is a sadistic man who abuses his family, and because we later discover that Mrs. Hayward has entered an illicit affair with her sisters husband. It is also a hyperbole as it seems highly unlikely that commonplace people could attain the somewhat abnormal traits of characters from folklore. Therefore, Keiths family is depicted as being immersed in secrecy and as being vague in order to conceal their intentions. Stephen is presented as inarticulate so as to emphasise his insecurities. I find it very difficult now to reconstruct what Im feeling its so large and complex. Perhaps the largeness of the feelings is the most noticeable thing about them. A paradox is used so as to put emphasis on the genuinely sad tinge of the writing, as Stephens low self-esteem is pathetic and it reveals that Stephen might not be a remotely interesting person, which accentuates how insecure Stephen is. Furthermore, largeness is italicised in order to put emphasis on Stephens numerous emotions. Moreover, one can infer that Keith is a foil used to oppose Stephens strong values and so this accentuates his vulnerabilities. Due to Keith, he finds it hard to express himself. Therefore, Stephen is presented as being unable to express himself in order to emphasise Keiths hold over him.

Data Analysis Coursework Example | Topics and Well Written Essays - 1750 words

Data Analysis - Coursework Example The APS is intended to be representative of the whole of the population of the UK. The population covered by the survey is all people resident in private households and young people living away from the parental home in student halls of residence or similar institution during term time. The survey covers a target sample of at least 875 economically active persons for each Unitary Authority (UA)/Local Area District (LAD), and at least 450 economically active persons in Greater London Boroughs. The number of jobseekers is derived from the Work and Pensions Longitudinal Study (WPLS), which also contains data on jobseekers allowance claimants. The data was obtained from computer systems used to administer the benefits. Although the data downloaded covers the whole Great Britain, only figures relating to London were extracted for analysis. Both datasets were downloaded from government’s Neighbourhood Statistics website  http://www.neighbourhood.statistics.gov.uk Selection Process The process of selecting the jobseeker’s allowance data is as follows: on the Neighborhood Statistics website, click on Topics, then Economic deprivation, then Jobseekers allowance claimants, choose the year and tick download on the right hand side, choose Microsoft Excel file. The file download is initiated. The process is repeated for all five years. For the unemployment data, click on topics and then proceed to Economic deprivation, Worklessness: economic activity, choose the time period and check download on the right hand side, choose Microsoft Excel file. The file download begins automatically. The process is repeated for all five years. Since the analysis only sampled data from cities in London, the findings may be skewed and hence not applicable to all other cities in the rest of Great Britain. However, one strength of the paper is that it uses data covering duration of five years and therefore takes account of any seasonal or periodic fluctuations. Objective This pa per will investigate the relationship between the number of unemployed persons and the number of persons claiming jobseekers’ allowance in London region. To ensure that eligible persons are included in the survey, data pertaining to persons aged 16-64 years only was used in the analysis. Types of analyses to be conducted Analyses of the data provided will begin with an exploratory analysis followed by in-depth statistical analyses which will act as confirmatory tests to any hypothesized relationships made in the first stage of analysis. Under exploratory analyses, descriptive statistics will be computed, a relationship will also be hypothesized using a scatterplot and bar graphs. In the second phase of analysis, the equation relating the two variables will be modeled. Correlation analysis will also be used to investigate the strength of the relationship observed above. A residual plot will be used to confirm the presence or absence of outliers, the plot will also indicate whe ther there were any particular areas where the model greatly under or over-predicted the relationship between unemployed persons and persons seeking employment1. Detailed analysis and conclusions will also be made using a regression model. Data collected from the five year period has been consolidated in to two variables: unemployed (Unemployed Persons Count) and jobseekers (Jobseekers Allowance Claimants). EXPLORATORY ANALYSIS Descriptives of the data is as shown: A plot for the individual years covered during the study is shown

Corporate Risk Managemenet Assignment Example | Topics and Well Written Essays - 2250 words

Corporate Risk Managemenet - Assignment Example This paper seeks to provide an explanation on how to manage risk in a financial industry. Specifically, this paper provides an explanation on how to manage risks of a banking sector, and this is in regard to the taking of an insurance policy. In the banking sector, Risk management practices focuses on the operational risks, liquidity risks, credit risks, market risk and interest rate risk. This paper focuses mostly on the Credit risk of my hypothetical banking organization. The hypothetical name of my bank is the Bank of Venus. This is a bank, with a presence all over the country, and has more than 300 employees. This bank specializes in offering all manner of banking services, and this includes issuance of loans, safe keeping of precious commodities, money transfer and forex exchange. All these areas have their own risks. Credit risk refers to a situation where a borrower may fail to pay a debt, in which he or she is obligated to pay (Olson and Desheng, 51). The risks involved in th is situation include a loss on the interest, and the principal amount given as a loan. Occurrence of this risk also causes a disruption in the cash flow of the bank, and an increase the costs of collecting the debts owed to the bank. Effectively reducing the occurrence of these risks, results to the success of the banking institution. This is because the bank’s main source of income emanates from interests it charges on the loans issued (Mehta, 28). To achieve success therefore, the Bank of Venus took an insurance policy to safeguard and protect itself from negative experience in case there was the emergence of risks associated with issuance of credit. However, the insurance company seeks to increase the following year’s premium. This will increase the operational costs of the banking organization; as a result, there will be a reduction of profits. This paper therefore seeks to identify and explain alternative courses of risk management practices that the bank can init iate. This paper also seeks to explain the various thought processes and analysis that the bank should take for purposes of choosing the alternative course of action. Alternative Risk Management Course of Action in Managing Credit Risk: The first alternative method of managing credit risks is referred to as risk based pricing. This is a method in which the bank will charge a very high interest rate to individuals who are most likely to default. Under this method, the bank will look into the credit rating of the individual, the purpose of the loan, and the loan to value ratio (Hopkin, 31). Other factors that the bank will look at before issuing the loan and calculating interests are the employment status of the borrower, the amount of loan under consideration, and the levels of documentation involved during the process of applying for a loan (Hull, 22). Under this method of risk management, the bank will calculate the rate of interest by analyzing the time value of the money, and als o estimating the probability of the borrowing defaulting on the loan. However, this form of managing credit risk has come under a lot of criticisms. One of the major criticism of this strategy emanates from consumers who are of the view that initiating this type of policy in managing credit risk makes it difficult for shopper to locate affordable interest rates from lenders/ banking organizations (Tarantino and Deborah, 12). This is because it is difficult for sho

Real Estate Business Essay Example | Topics and Well Written Essays - 3500 words

Real Estate Business - Essay Example me scholars gave that the word real property coinage came from a Spanish word real which means a king it puts that all the land belonged to the king and the people using it had to pay taxes to the king for its use either directly or indirectly. Real estate has become one of the biggest aspects in recent times and owing to the ever increasing interests in private property ownership it is known as commercial real estate. The required substantial investment in real estates and the unique nature of each has necessitated the development of key distinct fields in development of its industry (Rees, and Hayward, 2000) some of these are; Valuation and appraisal -services offered by experts in this sector Development -fixing or replacing investments such as buildings on land to increase its utility. Corporate real estate- achieving the goals of a corporation by managing its real estates Property management-controlling and organizing the functions of a real estate for a given party Brokerage- effecting or facilitating real estate business transaction through mediation. Net lease-the tenants of a real estate sharing the property among themselves A business entity can deal with one or more of the above fields in a certain kind of real estate business such as commercial, residential or industrial property. It is clearly evident that almost all businesses in construction relate to real estate (Isaac, 2002). Real estate valuation and appraisal is development of market value opinion of real property in business concept. Different property investments are usually distinctly identical given the fact that even if they are of the same model they can never be in the same location at a time, this situation shows the significance of the need to make appraisals and valuations of real...The author of the research essay "Real Estate Business" begins with short introduction of the subject. He assumes that a real estate that is synonymous to real property or realty is a word used to describe land and or with its developments like buildings or any other development that lay on it. Its aspects are well stipulated in the law of many countries in the world. In law the real property is clearly distinct from personal property. A real property is immobile, that is any investment whose title is only transferable along with the land such as the land itself and any thing that is permanently fixed to it for e xample minerals, buildings trees among others on the other hand personal property is movable with the owner retaining title not necessarily along with the land. Although it is believed to be not true theory some scholars gave that the word real property coinage came from a Spanish word real which means a king it puts that all the land belonged to the king and the people using it had to pay taxes to the king for its use either directly or indirectly. Real estate valuation and appraisal is development of market value opinion of real property in business concept. Different property investments are usually distinctly identical given the fact that even if they are of the same model they can never be in the same location at a time, this situation shows the significance of the need to make appraisals and valuations of real estates to determine their nature as an investment.

Concepts of Brand Identity and Positioning

Concepts of Brand Identity and Positioning A brand is not the name of a product. It is the vision that drives the creation of products and services under that name. That vision, the key belief of the brands and its core values is called identity. It drives vibrant brands able to create advocates, a real cult and loyalty. Modern competition calls for two essential tools of brand management: ‘brand identity, specifying the facets of brands uniqueness and value, and ‘brand positioning, the main difference creating preference in a specific market at a specific time for its products. For existing brands, identity is the source of brand positioning. Brand positioning specifies the angle used by the products of that brand to attack a market in order to grow their market share at the expense of competition. Defining what a brand is made of helps answer many questions that are asked every day, such as: Can the brand sponsor such and such event or sport? Does the advertising campaign suit the brand? Is the opportunity for launching a new product inside the brands boundaries or outside? How can the brand change its communication style, yet remain true to itself? How can decision making in communications be decentralised regionally or internationally, without jeopardising brand congruence? All such decisions pose the problem of brand identity and definition which are essential prerequisites for efficient brand management. Brand identity: a necessary concept Like the ideas of brand vision and purpose, the concept of brand identity is recent. It started in Europe (Kapferer, 1986).The perception of its paramount importance has slowly gained worldwide recognition; in the most widely read American book on brand equity (Aaker, 1991), the word ‘identity is in fact totally absent, as is the concept. Today, most advanced marketing companies have specified the identity of their brand through proprietary models such as ‘brand key (Unilever), ‘footprint (Johnson Johnson), ‘bulls eyes and ‘brand stewardship, which organise in a specific form a list of concepts related to brand identity. However, they are rather checklists. Is identity a sheer linguistic novelty, or is it essential to understanding what brands are? What is identity? To appreciate the meaning of this significant concept in brand management, we shall begin by considering the many ways in which the word is used today. For example, we speak of ‘identity cards a personal, non-transferable document that tells in a few words who we are, what our name is and what distinguishable features we have that can be instantly recognised. We also hear of ‘identity of opinion between several people, meaning that they have an identical point of view. In terms of communication, this second interpretation of the word suggests brand identity is the common element sending a single message amid the wide variety of its products, actions and communications. This is important since the more the brand expands and diversifies, the more customers are inclined to feel that they are, in fact, dealing with several different brands rather than a single one. If products and communication go their separate ways, how can customers possibly perceive these different routes as converging towards a common vision and brand? Speaking of identical points of view also raises the question of permanence and continuity. As civil status and physical appearance change, identity cards get updated, yet the fingerprint of their holders always remains the same. The identity concept questions how time will affect the unique and permanent quality of the sender, the brand or the retailer. In this respect, psychologists speak of the ‘identity crisis which adolescents often go through. When their identity structure is still weak, teenagers tend to move from one role model to another. These constant shifts create a gap and force the basic question: ‘What is the real me? Finally, in studies on social groups or minorities, we often speak of ‘cultural identity. In seeking an identity, they are in fact seeking a pivotal basis on which to hinge not only their inherent difference but also their membership of a specific cultural entity. Brand identity may be a recent notion, but many researchers have already delved into the organisational identity of companies (Schwebig, 1988; Moingeon and Soenen, 2003). There, the simplest verbal expression of identity often consists in saying: ‘Oh, yes, I see, but its not the same in our company! In other words, corporate identity is what helps an organisation, or a part of it, feel that it truly exists and that it is a coherent and unique being, with a history and a place of its own, different from others. From these various meanings, we can infer that having an identity means being your true self, driven by a personal goal that is both different from others and resistant to change. Thus, brand identity will be clearly defined once the following questions are answered: What is the brands particular vision and aim? What makes it different? What need is the brand fulfilling? What is its permanent nature? What are its value or values? What is its field of competence? Of legitimacy? What are the signs which make the brand recognisable? These questions could indeed constitute the brands charter. This type of official document would help better brand management in the medium term, both in terms of form and content, and so better address future communication and extension issues. Communication tools such as the copy strategy are essentially linked to advertising campaigns, and so are only committed to the short term. There must be specific guidelines to ensure that there is indeed only one brand forming a solid and coherent entity. Brand identity and graphic identity charters Many readers will make the point that their firms already make use of graphic identity ‘bibles, either for corporate or specific brand purposes. We do indeed find many graphic identity charters, books of standards and visual identity guides. Urged on by graphic identity agencies, companies have rightly sought to harmonise the messages conveyed by their brands. Such charters therefore define the norms for visual recognition of the brand, ie the brands colours, graphic design and type of print. Although this may be a necessary first step, it isnt the be all and end all. Moreover, it puts the cart before the horse. What really matters is the key message that we want to communicate. Formal aspects, outward appearance and overall looks result from the brands core substance and intrinsic identity. Choosing symbols requires a clear definition of what the brand means. However, while graphic manuals are quite easy to find nowadays, explicit definitions of brand identity per se are still very rare. Yet, the essential questions above (ie the nature of the identity to be conveyed) must be properly answered before we begin discussing and defining what the communication means and what the codes of outward recognition should be. The brands deepest values must be reflected in the external signs of recognition, and these must be apparent at first glance. The family resemblance between the various models of BMW conveys a strong identity, yet it is not the identity. This brands identity and essence can actually be defined by addressing the issue of its difference, its permanence, its value and its personal view on automobiles. Many firms have unnecessarily constrained their brand because they formulated a graphic charter before defining their identity. Not knowing who they really are, they merely perpetuate purely formal codes by, for example, using a certain photographic style that may not be the most suitable. Thus Nina Riccis identity did not necessarily relate to the companys systematic adherence to English photographer David Hamiltons style. Knowing brand identity paradoxically gives extra freedom of expression, since it emphasises the pre-eminence of substance over strictly formal features. Brand identity defines what must stay and what is free to change. Brands are living systems. They must have degrees of freedom to match modern market diversity. Identity: a contemporary concept That a new concept identity has emerged in the field of management, already well versed in brand image and positioning, is really no great surprise. Todays problems are more complex than those of 10 or 20 years ago and so there is now a need for more refined concepts that allow a closer connection with reality. First of all, we cannot overemphasise the fact that we are currently living in a society saturated in communications. Everybody wants to communicate these days. If needed, proof is available: there have been huge increases in advertising budgets, not only in the major media but also in the growing number of professional magazines. It has become very difficult to survive in the hurly-burly thus created, let alone to thrive and successfully convey ones identity. For communication means two things: sending out messages and making sure that they are received. Communicating nowadays is no longer just a technique, it is a feat in itself. The second factor explaining the urgent need to understand brand identity is the pressure constantly put on brands. We have now entered an age of marketing similarities. When a brand innovates, it creates a new standard. The other brands must then catch up if they want to stay in the race, hence the increasing number of ‘me-too products with similar attributes, not to mention the copies produced by distributors. Regulations also cause similarities to spread. Bank operations, for example, have become so much alike that banks are now unable to fully express their individuality and identity. Market research also generates herdism within a given sector. As all companies base themselves on the same life-style studies, the conclusions they reach are bound to be similar as are the products and advertising campaigns they launch, in which sometimes even the same words are used. Finally, technology is responsible for growing similarity. Why do cars increasingly look alike, in spite of their different makes? Because car makers are all equally concerned about fluidity, inner car space constraints, motorisation and economy, and these problems cannot be solved in all that many different ways. Moreover, when the models of four car brands (Audi, Volkswagen, Seat and Skoda) share many identical parts (eg chassis, engine, gearbox), for either productivity or competitiveness purposes, it is mainly brand identity, along with, to a lesser extent, whats left of each car, which will distinguish the makes from one another. Diversification calls for knowing the brands identity. Brands launch new products, penetrate new markets and reach new targets. This may cause both fragmented communications and patchwork images. Though we are still able to discern bits and pieces of the brand here and there, we are certainly unable to perceive its global and coherent identity. Why speak of identity rather than image? What does the notion of identity have to offer that the image of a brand or a company or a retailer doesnt have? After all, firms spend large amounts of money measuring image. Brand image is on the receivers side. Image research focuses on the way in which certain groups perceive a product, a brand, a politician, a company or a country. The image refers to the way in which these groups decode all of the signals emanating from the products, services and communication covered by the brand. Identity is on the senders side. The purpose, in this case, is to specify the brands meaning, aim and self-image. Image is both the result and interpretation thereof. In terms of brand management, identity precedes image. Before projecting an image to the public, we must know exactly what we want to project. Before it is received, we must know what to send and how to send it. As shown in Figure 7.1, an image is a synthesis made by the public of all the various brand messages, eg brand name, visual symbols, products, advertisements, sponsoring, patronage, articles. An image results from decoding a message, extracting meaning, interpreting signs. Where do all these signs come from? There are two possible sources: brand identity of course, but also extraneous factors (‘noise) that speak in the brands name and thus produce meaning, however disconnected they may actually be from it. What are these extraneous factors? First, there are companies that choose to imitate competitors, as they have no clear idea of what their own brand identity is. They focus on their competitors and imitate their marketing communication. Second, there are companies that are obsessed with the willingness to build an appealing image that will be favourably perceived by all. So they focus on meeting every one of the publics expectations. That is how the brand gets caught in the game of always having to please the consumer and ends up surfing on the changing waves of social and cultural fads. Yesterday, brands were into glamour, today, they are into ‘cocooning; so whats next? The brand can appear opportunistic and popularity seeking, and thus devoid of any meaningful substance. It becomes a mere faà §ade, a meaningless cosmetic camouflage. The third source of ‘noise is that of fantasised identity: the brand as one would ideally like to see it, but not as it actually is. As a result, we notice, albeit too late, that the advertisements do not help people remember the brand because they are either too remotely connected to it or so radically disconnected from it that they cause perplexity or rejection. Since brand identity has now been recognised as the prevailing concept, these three potential communication glitches can be prevented. The identity concept thus serves to emphasise the fact that, with time, brands do eventually gain their independence and their own meaning, even though they may start out as mere product names. As living memories of past products and advertisements, brands do not simply fade away: they define their own area of competence, potential and legitimacy. Yet they also know when to stay out of other areas. We cannot expect a brand to be anything other than itself. Obviously, brands should not curl up in a shell and cut themselves off from the public and from market evolutions. However, an obsession with image can lead them to capitalise too much on appearance and not enough on essence. Identity and positioning It is also common to distinguish brands according to their positioning. Positioning a brand means emphasising the distinctive characteristics that make it different from its competitors and appealing to the public. It results from an analytical process based on the four following questions: A brand for what benefit? This refers to the brand promise and consumer benefit aspect: Orangina has real orange pulp, The Body Shop is environment friendly, Twix gets rid of hunger, Volkswagen is reliable. A brand for whom? This refers to the target aspect. For a long time, Schweppes was the drink of the refined, Snapple the soft drink for adults, Tango or Yoohoo the drink for teenagers. Reason? This refers to the elements, factual or subjective, that support the claimed benefit. A brand against whom? In todays competitive context, this question defines the main competitor(s), ie those whose clientele we think we can partly capture. Tuborg and other expensive imported beers thus also compete against whisky, gin and vodka. Positioning is a crucial concept (Figure 7.2). It reminds us that all consumer choices are made on the basis of comparison. Thus, a product will only be considered if it is clearly part of a selection process. Hence the four questions that help position the new product or brand and make its contribution immediately obvious to the customer. Positioning is a two-stage process: First, indicate to what ‘competitive set the brand should be associated and compared. Second, indicate what the brands essential difference and raison dà ªtre is in comparison to the other products and brands of that set. Choosing the competitive set is essential. While this may be quite easy to do for a new toothpaste, it is not so for very original and unique products. The Gaines burger launched by the Gaines company, for instance, was a new dog food, a semi-dehydrated product presented as red ground meat in a round shape like a hamburger. Unlike normal canned pet foods, moreover, it did not need to be refrigerated, nor did it exude that normal open-can smell. Given these characteristics, the product could be positioned in several different ways, for example by: Attacking the canned pet food market by appealing to well-to-do dog owners. The gist of the message would then be ‘the can without the can, in other words, the benefits of meat without its inconveniences (smell, freshness constraints, etc). Attacking the dehydrated pet food segment (dried pellets) by offering a product that would help the owner not to feel guilty for not giving meat to the dog on the basis that it is just not practical. The fresh-ground, round look could justify this positioning. Targeting owners who feed leftovers to their dogs by presenting Gaines as a complete, nutritious supplement (and no longer as a main meal as in the two former strategies). Targeting all dog owners by presenting this product as a nutritious treat, a kind of doggy Mars bar. The choice between these alternative strategies was made by assessing each one against certain measurable criteria (Table 7.1). The firm ended up choosing the first positioning and launched this product as the ‘Gaines burger. What does the identity concept add to that of positioning? Why do we even need another concept? In the first place, because positioning focuses more on the product itself. What then does positioning mean in the case of a multiproduct brand? How can these four questions on positioning be answered if we are not focusing on one particular product category? We know how to position the various Scotchbrite scrubbing pads as well as the Scotch videotapes, but what does the positioning concept mean for the Scotch brand as a whole, not to mention the 3M corporate brand? This is precisely where the concept of brand identity comes in handy. Second, positioning does not reveal all the brands richness of meaning nor reflect all of its potential. The brand is restricted once reduced to four questions. Positioning does not help fully differentiate Coca-Cola from Pepsi-Cola. The four positioning questions thus fail to encapsulate such nuances. They do not allow us to fully explore the identity and singularity of the brand. Worse still, positioning allows communication to be entirely dictated by creative whims and current fads. Positioning does not say a word about communication style, form or spirit. This is a major deficiency since brands have the gift of speech: they state both the objective and subjective qualities of a given product. The speech they deliver in these days of multimedia supremacy is made of words, of course, but even more of pictures, sounds, colours, movement and style. Positioning controls the words only, leaving the rest up to the unpredictable outcome of creative hunches and pretests. Yet brand language should never result from creativity only. It expresses the brands personality and values. Creative hunches are only useful if they are consistent with the brands legitimate territory. Furthermore, though pretest evaluations are needed to verify that the brands message is well received, the public should not be allowed to dictate brand language: its style needs to be found within itself. Brand uniqueness often tends to get eroded by consumer expectations and thus starts regressing to a level at which it risks losing its identity. Table 7.1 How to evaluate and choose a brand positioning Are the products current looks and ingredients compatible with this positioning? How strong is the assumed consumer motivation behind this positioning? (what insight?) What size of market is involved by such a positioning? Is this positioning credible? Does it capitalise on a competitors actual or latent durable weakness? What financial means are required by such a positioning? Is this positioning specific and distinctive? Is this a sustainable positioning which cannot be imitated by competitors? Does this positioning leave any possibility for an alternative solution in case of failure? Does this positioning justify a price premium? Is there a growth potential under this positioning? A brands message is the outward expression of the brands inner substance. Thus we can no longer dissociate brand substance from brand style, ie from its verbal, visual and musical attributes. Brand identity provides the framework for overall brand coherence. It is a concept that serves to offset the limitations of positioning and to monitor the means of expression, the unity and durability of a brand. Why brands need identity and positioning A brands positioning is a key concept in its management. It is based on one fundamental principle: all choices are comparative. Remember that identity expresses the brands tangible and intangible characteristics everything that makes the brand what it is, and without which it would be something different. Identity draws upon the brands roots and heritage everything that gives it its unique authority and legitimacy within a realm of precise values and benefits. Positioning is competitive: when it comes to brands, customers make a choice, but with products, they make a comparison. This raises two questions. First, what do they compare it with? For this, we need to look at the field of competition: what area do we want to be considered as part of? Second, what are we offering the customer as a key decision-making factor? A brand that does not position itself leaves these two questions unanswered. It is a mistake to suppose that customers will find answers themselves: there are too many choices available today for customers to make the effort to work out what makes a particular brand specific. Communicating this information is the responsibility of the brand. Remember, products increase customer choice; brands simplify it. This is why a brand that does not want to stand for something stands for nothing. The aim of positioning is to identify, and take possession of, a strong purchasing rationale that gives us a real or perceived advantage. It implies a desire to take up a long-term position and defend it. Positioning is competition-oriented: it specifies the best way to attack competitors market share. It may change through time: one grows by expanding the field of competition. Identity is more stable and long-lasting, for it is tied to the brand roots and fixed parameters. Thus Cokes positioning was ‘the original as long as it competed against other colas. To grow the business, it now competes against all soft drinks: its positioning is ‘the most refreshing bond between people of the world, whereas its identity remains ‘the symbol of America, the essence of the American way of life. How is positioning achieved? The standard positioning formula is as follows: For †¦ (definition of target market) Brand X is †¦ (definition of frame of reference and subjective category) Which gives the most †¦ (promise or consumer benefit) Because of †¦ (reason to believe). Let us look at these points in detail. The target specifies the nature and psycho-logical or sociological profile of the individuals to be influenced, that is, buyers or potential consumers. The frame of reference is the subjective definition of the category, which will specify the nature of the competition. What other brands or products effectively serve the same purpose? This is a strategic decision: it marks out the ‘field of battle. It must not under any circumstances be confused with the objective description of the product or category. For example, there is no real rum market in the UK, yet Bacardi is very popular. This is because it is perfectly possible to drink Bacardi without realising that it is a rum: it is the party mixer par excellence. Another example illustrates the strategic importance of defining the frame of reference. Objectively speaking, Perrier is fizzy mineral water. Subjectively, however, it is also a drink for adults. Seen in the light of this field of reference, it acquires its strongest competitive advantage: a slight natural quirkiness. As we can see, the choice of the field of competition should be informed by the strategic value of that field: how big, how fast growing, how profitable? But it also lends the brand a competitive advantage through its identity and potential. Perceived as water for the table, Perrier has no significant competitive advantage over other fizzy mineral waters, even though this market is a very large one. However, when viewed in relation to a field of competition defined as ‘drinks for adults, Perrier becomes competitive again: it has strong differentiating advantages. What are its competitors? They include alcoholic drinks, Diet Coke, Schweppes and tomato juice. The third point specifies the aspect of difference which creates the preference and the choice of a decisive competitive advantage: it may be expressed in terms of a promise (for instance, Volvo is the strongest of all cars) or a benefit (such as, Volvo is the ‘safety brand). The fourth point reinforces the promise or benefit, and is known as the ‘reason to believe. For example, in the case of the Dove brand, which promises to be the most moisturising, the reason is that all of its products contain 25 per cent of moisturising cream. Positioning is a necessary concept, first because all choices are comparative, and so it makes sense to start off by stating the area in which we are strongest; and second because in marketing, perception is reality. Positioning is a concept which starts with customers, by putting ourselves in their place: faced with a plethora of brands, are consumers able to identify the strong point of each, the factor that distinguishes it from the rest? This is why, ideally, a customer should be capable of paraphrasing a brands positioning: ‘Only Brand X will do this for me, because it has, or it is †¦ No instrument is entirely neutral. The above formula was created by companies such as Kraft-General Foods, Procter Gamble, and Unilever. It is designed for businesses that base competitive advantage on their products, and works perfectly for the lOrà ©al Group which, with its 2,500 researchers worldwide, only ever launches new products if they are of demonstrably superior performance. This fact is then promoted through advertising. There are cases where the brand makes no promise, or where the benefit it brings could sound trivial. For example, how would you define the positioning of a perfume such as Obsession by Calvin Klein in a way that clearly represented its true nature and originality? It would be wrong to claim that Obsession makes any specific promise to its customers, or that they will obtain any particular benefit from the product apart from feeling good (a property which is common to all perfumes). In reality, Obsessions attractiveness stems from its imagery, the imaginary world of subversive androgyny which it embodies. In the same way, Mugler appeals to young people through its inherently neofuturistic world, and Chanel stands for timeless elegance. What actually sells these perfumes is the satisfaction derived from participating in the symbolic world of the brand. The same is true of alcohol and spirits: Jack Daniels is selling a symbolic participation in an eternal, authentic untamed America. To say that Jack Daniels is selling the satisfaction of being the finest choice would be a mere commonplace, like the tired old clichà © that customers are satisfied at having made a choice that set them apart from the masses (a classic benefit stated by small brands attempting to emphasise their advantage over large ones). Faced with this conceptual dilemma, there are three possible approaches. The first of these is to define positioning as the sum of every point that differentiates the brand. This has been Unilevers approach: the 60page mini-opus known as the Brand Key, which explains how to define a brand across the entire world, starts with the phrase: ‘Brand Key builds on and replaces the brand positioning statement †¦. There are eight headings to Brand Key: 1. The competitive environment. 2. The target. 3. The consumer insight on which the brand is based. 4. The benefits brought by the brand. 5. Brand values and personality. 6. The reasons to believe. 7. The discriminator (single most compelling reason to choose). 8. The brand essence. Fundamentally, therefore, this collection forms the positioning of a brand. However, the concept that most closely resembles positioning in the strict sense of the word is referred to here as the ‘discriminator. McDonalds also adopts a similar reasoning (see Figure 7.3). Larry Light defends the idea that positioning is defined when this chain of means-ends is completed (this is a parallel concept to the ‘ladder moving from the tangible to the intangible): My position is that two tools are needed to manage the brand. One defines the brands identity, while the other is competitive and specifies the competitive proposition made at any given time in any given market. This is the brands unique compelling competitive proposition (UCCP). Thus the tool called ‘brand platform will comprise, first, the ‘brand identity, that is to say, brand uniqueness and singularity throughout the world and whatever the product. Brand identity has six facets, and is therefore larger than the mere positioning. It is represented by the identity prism. At its centre one finds the brand essence, the central value it symbolises. Second, the brand platform comprises ‘brand positioning: choosing a market means choosing a specific angle to attack it. Brand positioning must be based on a customer insight relevant to this market. Brand positioning exploits one of the brand identity facets. Positioning can be summed up in four key questions: for whom, why, when and against whom? It can be represented in the form of a diamond, the ‘positioning diamond (see Figure 7.2, page 176). In positioning, the brand/product makes a proposition, plus (necessarily) a promise. The proposition may additionally be supported by a ‘reason to believe, but this is not essential. Marlboro presents its smoker as a man a real man, symbolised by the untamed cowboy of the Wild West. No support is offered for this proposition; no proof is necessary. It is true because the brand says so. And the more often it is repeated, the more credible it becomes. In this way the brands proposition, which forms the basis of the chosen positioning at a given moment in a particular market, may be fuelled by various ‘edges contained within the brands identity: a differentiating attribute (25 per cent moisturising cream in Dove, the smoothness and bite of Mars bars, the bubbles of Perrier); an objective benefit: an iMac is user friendly, Dell offers unbeatable value for money; a subjective benefit: you feel secure with IBM; an aspect of the brands personality: the mystery of the Bacardi bat, Jack Daniels is macho, Axe/Lynx is cool; Concepts of Brand Identity and Positioning Concepts of Brand Identity and Positioning A brand is not the name of a product. It is the vision that drives the creation of products and services under that name. That vision, the key belief of the brands and its core values is called identity. It drives vibrant brands able to create advocates, a real cult and loyalty. Modern competition calls for two essential tools of brand management: ‘brand identity, specifying the facets of brands uniqueness and value, and ‘brand positioning, the main difference creating preference in a specific market at a specific time for its products. For existing brands, identity is the source of brand positioning. Brand positioning specifies the angle used by the products of that brand to attack a market in order to grow their market share at the expense of competition. Defining what a brand is made of helps answer many questions that are asked every day, such as: Can the brand sponsor such and such event or sport? Does the advertising campaign suit the brand? Is the opportunity for launching a new product inside the brands boundaries or outside? How can the brand change its communication style, yet remain true to itself? How can decision making in communications be decentralised regionally or internationally, without jeopardising brand congruence? All such decisions pose the problem of brand identity and definition which are essential prerequisites for efficient brand management. Brand identity: a necessary concept Like the ideas of brand vision and purpose, the concept of brand identity is recent. It started in Europe (Kapferer, 1986).The perception of its paramount importance has slowly gained worldwide recognition; in the most widely read American book on brand equity (Aaker, 1991), the word ‘identity is in fact totally absent, as is the concept. Today, most advanced marketing companies have specified the identity of their brand through proprietary models such as ‘brand key (Unilever), ‘footprint (Johnson Johnson), ‘bulls eyes and ‘brand stewardship, which organise in a specific form a list of concepts related to brand identity. However, they are rather checklists. Is identity a sheer linguistic novelty, or is it essential to understanding what brands are? What is identity? To appreciate the meaning of this significant concept in brand management, we shall begin by considering the many ways in which the word is used today. For example, we speak of ‘identity cards a personal, non-transferable document that tells in a few words who we are, what our name is and what distinguishable features we have that can be instantly recognised. We also hear of ‘identity of opinion between several people, meaning that they have an identical point of view. In terms of communication, this second interpretation of the word suggests brand identity is the common element sending a single message amid the wide variety of its products, actions and communications. This is important since the more the brand expands and diversifies, the more customers are inclined to feel that they are, in fact, dealing with several different brands rather than a single one. If products and communication go their separate ways, how can customers possibly perceive these different routes as converging towards a common vision and brand? Speaking of identical points of view also raises the question of permanence and continuity. As civil status and physical appearance change, identity cards get updated, yet the fingerprint of their holders always remains the same. The identity concept questions how time will affect the unique and permanent quality of the sender, the brand or the retailer. In this respect, psychologists speak of the ‘identity crisis which adolescents often go through. When their identity structure is still weak, teenagers tend to move from one role model to another. These constant shifts create a gap and force the basic question: ‘What is the real me? Finally, in studies on social groups or minorities, we often speak of ‘cultural identity. In seeking an identity, they are in fact seeking a pivotal basis on which to hinge not only their inherent difference but also their membership of a specific cultural entity. Brand identity may be a recent notion, but many researchers have already delved into the organisational identity of companies (Schwebig, 1988; Moingeon and Soenen, 2003). There, the simplest verbal expression of identity often consists in saying: ‘Oh, yes, I see, but its not the same in our company! In other words, corporate identity is what helps an organisation, or a part of it, feel that it truly exists and that it is a coherent and unique being, with a history and a place of its own, different from others. From these various meanings, we can infer that having an identity means being your true self, driven by a personal goal that is both different from others and resistant to change. Thus, brand identity will be clearly defined once the following questions are answered: What is the brands particular vision and aim? What makes it different? What need is the brand fulfilling? What is its permanent nature? What are its value or values? What is its field of competence? Of legitimacy? What are the signs which make the brand recognisable? These questions could indeed constitute the brands charter. This type of official document would help better brand management in the medium term, both in terms of form and content, and so better address future communication and extension issues. Communication tools such as the copy strategy are essentially linked to advertising campaigns, and so are only committed to the short term. There must be specific guidelines to ensure that there is indeed only one brand forming a solid and coherent entity. Brand identity and graphic identity charters Many readers will make the point that their firms already make use of graphic identity ‘bibles, either for corporate or specific brand purposes. We do indeed find many graphic identity charters, books of standards and visual identity guides. Urged on by graphic identity agencies, companies have rightly sought to harmonise the messages conveyed by their brands. Such charters therefore define the norms for visual recognition of the brand, ie the brands colours, graphic design and type of print. Although this may be a necessary first step, it isnt the be all and end all. Moreover, it puts the cart before the horse. What really matters is the key message that we want to communicate. Formal aspects, outward appearance and overall looks result from the brands core substance and intrinsic identity. Choosing symbols requires a clear definition of what the brand means. However, while graphic manuals are quite easy to find nowadays, explicit definitions of brand identity per se are still very rare. Yet, the essential questions above (ie the nature of the identity to be conveyed) must be properly answered before we begin discussing and defining what the communication means and what the codes of outward recognition should be. The brands deepest values must be reflected in the external signs of recognition, and these must be apparent at first glance. The family resemblance between the various models of BMW conveys a strong identity, yet it is not the identity. This brands identity and essence can actually be defined by addressing the issue of its difference, its permanence, its value and its personal view on automobiles. Many firms have unnecessarily constrained their brand because they formulated a graphic charter before defining their identity. Not knowing who they really are, they merely perpetuate purely formal codes by, for example, using a certain photographic style that may not be the most suitable. Thus Nina Riccis identity did not necessarily relate to the companys systematic adherence to English photographer David Hamiltons style. Knowing brand identity paradoxically gives extra freedom of expression, since it emphasises the pre-eminence of substance over strictly formal features. Brand identity defines what must stay and what is free to change. Brands are living systems. They must have degrees of freedom to match modern market diversity. Identity: a contemporary concept That a new concept identity has emerged in the field of management, already well versed in brand image and positioning, is really no great surprise. Todays problems are more complex than those of 10 or 20 years ago and so there is now a need for more refined concepts that allow a closer connection with reality. First of all, we cannot overemphasise the fact that we are currently living in a society saturated in communications. Everybody wants to communicate these days. If needed, proof is available: there have been huge increases in advertising budgets, not only in the major media but also in the growing number of professional magazines. It has become very difficult to survive in the hurly-burly thus created, let alone to thrive and successfully convey ones identity. For communication means two things: sending out messages and making sure that they are received. Communicating nowadays is no longer just a technique, it is a feat in itself. The second factor explaining the urgent need to understand brand identity is the pressure constantly put on brands. We have now entered an age of marketing similarities. When a brand innovates, it creates a new standard. The other brands must then catch up if they want to stay in the race, hence the increasing number of ‘me-too products with similar attributes, not to mention the copies produced by distributors. Regulations also cause similarities to spread. Bank operations, for example, have become so much alike that banks are now unable to fully express their individuality and identity. Market research also generates herdism within a given sector. As all companies base themselves on the same life-style studies, the conclusions they reach are bound to be similar as are the products and advertising campaigns they launch, in which sometimes even the same words are used. Finally, technology is responsible for growing similarity. Why do cars increasingly look alike, in spite of their different makes? Because car makers are all equally concerned about fluidity, inner car space constraints, motorisation and economy, and these problems cannot be solved in all that many different ways. Moreover, when the models of four car brands (Audi, Volkswagen, Seat and Skoda) share many identical parts (eg chassis, engine, gearbox), for either productivity or competitiveness purposes, it is mainly brand identity, along with, to a lesser extent, whats left of each car, which will distinguish the makes from one another. Diversification calls for knowing the brands identity. Brands launch new products, penetrate new markets and reach new targets. This may cause both fragmented communications and patchwork images. Though we are still able to discern bits and pieces of the brand here and there, we are certainly unable to perceive its global and coherent identity. Why speak of identity rather than image? What does the notion of identity have to offer that the image of a brand or a company or a retailer doesnt have? After all, firms spend large amounts of money measuring image. Brand image is on the receivers side. Image research focuses on the way in which certain groups perceive a product, a brand, a politician, a company or a country. The image refers to the way in which these groups decode all of the signals emanating from the products, services and communication covered by the brand. Identity is on the senders side. The purpose, in this case, is to specify the brands meaning, aim and self-image. Image is both the result and interpretation thereof. In terms of brand management, identity precedes image. Before projecting an image to the public, we must know exactly what we want to project. Before it is received, we must know what to send and how to send it. As shown in Figure 7.1, an image is a synthesis made by the public of all the various brand messages, eg brand name, visual symbols, products, advertisements, sponsoring, patronage, articles. An image results from decoding a message, extracting meaning, interpreting signs. Where do all these signs come from? There are two possible sources: brand identity of course, but also extraneous factors (‘noise) that speak in the brands name and thus produce meaning, however disconnected they may actually be from it. What are these extraneous factors? First, there are companies that choose to imitate competitors, as they have no clear idea of what their own brand identity is. They focus on their competitors and imitate their marketing communication. Second, there are companies that are obsessed with the willingness to build an appealing image that will be favourably perceived by all. So they focus on meeting every one of the publics expectations. That is how the brand gets caught in the game of always having to please the consumer and ends up surfing on the changing waves of social and cultural fads. Yesterday, brands were into glamour, today, they are into ‘cocooning; so whats next? The brand can appear opportunistic and popularity seeking, and thus devoid of any meaningful substance. It becomes a mere faà §ade, a meaningless cosmetic camouflage. The third source of ‘noise is that of fantasised identity: the brand as one would ideally like to see it, but not as it actually is. As a result, we notice, albeit too late, that the advertisements do not help people remember the brand because they are either too remotely connected to it or so radically disconnected from it that they cause perplexity or rejection. Since brand identity has now been recognised as the prevailing concept, these three potential communication glitches can be prevented. The identity concept thus serves to emphasise the fact that, with time, brands do eventually gain their independence and their own meaning, even though they may start out as mere product names. As living memories of past products and advertisements, brands do not simply fade away: they define their own area of competence, potential and legitimacy. Yet they also know when to stay out of other areas. We cannot expect a brand to be anything other than itself. Obviously, brands should not curl up in a shell and cut themselves off from the public and from market evolutions. However, an obsession with image can lead them to capitalise too much on appearance and not enough on essence. Identity and positioning It is also common to distinguish brands according to their positioning. Positioning a brand means emphasising the distinctive characteristics that make it different from its competitors and appealing to the public. It results from an analytical process based on the four following questions: A brand for what benefit? This refers to the brand promise and consumer benefit aspect: Orangina has real orange pulp, The Body Shop is environment friendly, Twix gets rid of hunger, Volkswagen is reliable. A brand for whom? This refers to the target aspect. For a long time, Schweppes was the drink of the refined, Snapple the soft drink for adults, Tango or Yoohoo the drink for teenagers. Reason? This refers to the elements, factual or subjective, that support the claimed benefit. A brand against whom? In todays competitive context, this question defines the main competitor(s), ie those whose clientele we think we can partly capture. Tuborg and other expensive imported beers thus also compete against whisky, gin and vodka. Positioning is a crucial concept (Figure 7.2). It reminds us that all consumer choices are made on the basis of comparison. Thus, a product will only be considered if it is clearly part of a selection process. Hence the four questions that help position the new product or brand and make its contribution immediately obvious to the customer. Positioning is a two-stage process: First, indicate to what ‘competitive set the brand should be associated and compared. Second, indicate what the brands essential difference and raison dà ªtre is in comparison to the other products and brands of that set. Choosing the competitive set is essential. While this may be quite easy to do for a new toothpaste, it is not so for very original and unique products. The Gaines burger launched by the Gaines company, for instance, was a new dog food, a semi-dehydrated product presented as red ground meat in a round shape like a hamburger. Unlike normal canned pet foods, moreover, it did not need to be refrigerated, nor did it exude that normal open-can smell. Given these characteristics, the product could be positioned in several different ways, for example by: Attacking the canned pet food market by appealing to well-to-do dog owners. The gist of the message would then be ‘the can without the can, in other words, the benefits of meat without its inconveniences (smell, freshness constraints, etc). Attacking the dehydrated pet food segment (dried pellets) by offering a product that would help the owner not to feel guilty for not giving meat to the dog on the basis that it is just not practical. The fresh-ground, round look could justify this positioning. Targeting owners who feed leftovers to their dogs by presenting Gaines as a complete, nutritious supplement (and no longer as a main meal as in the two former strategies). Targeting all dog owners by presenting this product as a nutritious treat, a kind of doggy Mars bar. The choice between these alternative strategies was made by assessing each one against certain measurable criteria (Table 7.1). The firm ended up choosing the first positioning and launched this product as the ‘Gaines burger. What does the identity concept add to that of positioning? Why do we even need another concept? In the first place, because positioning focuses more on the product itself. What then does positioning mean in the case of a multiproduct brand? How can these four questions on positioning be answered if we are not focusing on one particular product category? We know how to position the various Scotchbrite scrubbing pads as well as the Scotch videotapes, but what does the positioning concept mean for the Scotch brand as a whole, not to mention the 3M corporate brand? This is precisely where the concept of brand identity comes in handy. Second, positioning does not reveal all the brands richness of meaning nor reflect all of its potential. The brand is restricted once reduced to four questions. Positioning does not help fully differentiate Coca-Cola from Pepsi-Cola. The four positioning questions thus fail to encapsulate such nuances. They do not allow us to fully explore the identity and singularity of the brand. Worse still, positioning allows communication to be entirely dictated by creative whims and current fads. Positioning does not say a word about communication style, form or spirit. This is a major deficiency since brands have the gift of speech: they state both the objective and subjective qualities of a given product. The speech they deliver in these days of multimedia supremacy is made of words, of course, but even more of pictures, sounds, colours, movement and style. Positioning controls the words only, leaving the rest up to the unpredictable outcome of creative hunches and pretests. Yet brand language should never result from creativity only. It expresses the brands personality and values. Creative hunches are only useful if they are consistent with the brands legitimate territory. Furthermore, though pretest evaluations are needed to verify that the brands message is well received, the public should not be allowed to dictate brand language: its style needs to be found within itself. Brand uniqueness often tends to get eroded by consumer expectations and thus starts regressing to a level at which it risks losing its identity. Table 7.1 How to evaluate and choose a brand positioning Are the products current looks and ingredients compatible with this positioning? How strong is the assumed consumer motivation behind this positioning? (what insight?) What size of market is involved by such a positioning? Is this positioning credible? Does it capitalise on a competitors actual or latent durable weakness? What financial means are required by such a positioning? Is this positioning specific and distinctive? Is this a sustainable positioning which cannot be imitated by competitors? Does this positioning leave any possibility for an alternative solution in case of failure? Does this positioning justify a price premium? Is there a growth potential under this positioning? A brands message is the outward expression of the brands inner substance. Thus we can no longer dissociate brand substance from brand style, ie from its verbal, visual and musical attributes. Brand identity provides the framework for overall brand coherence. It is a concept that serves to offset the limitations of positioning and to monitor the means of expression, the unity and durability of a brand. Why brands need identity and positioning A brands positioning is a key concept in its management. It is based on one fundamental principle: all choices are comparative. Remember that identity expresses the brands tangible and intangible characteristics everything that makes the brand what it is, and without which it would be something different. Identity draws upon the brands roots and heritage everything that gives it its unique authority and legitimacy within a realm of precise values and benefits. Positioning is competitive: when it comes to brands, customers make a choice, but with products, they make a comparison. This raises two questions. First, what do they compare it with? For this, we need to look at the field of competition: what area do we want to be considered as part of? Second, what are we offering the customer as a key decision-making factor? A brand that does not position itself leaves these two questions unanswered. It is a mistake to suppose that customers will find answers themselves: there are too many choices available today for customers to make the effort to work out what makes a particular brand specific. Communicating this information is the responsibility of the brand. Remember, products increase customer choice; brands simplify it. This is why a brand that does not want to stand for something stands for nothing. The aim of positioning is to identify, and take possession of, a strong purchasing rationale that gives us a real or perceived advantage. It implies a desire to take up a long-term position and defend it. Positioning is competition-oriented: it specifies the best way to attack competitors market share. It may change through time: one grows by expanding the field of competition. Identity is more stable and long-lasting, for it is tied to the brand roots and fixed parameters. Thus Cokes positioning was ‘the original as long as it competed against other colas. To grow the business, it now competes against all soft drinks: its positioning is ‘the most refreshing bond between people of the world, whereas its identity remains ‘the symbol of America, the essence of the American way of life. How is positioning achieved? The standard positioning formula is as follows: For †¦ (definition of target market) Brand X is †¦ (definition of frame of reference and subjective category) Which gives the most †¦ (promise or consumer benefit) Because of †¦ (reason to believe). Let us look at these points in detail. The target specifies the nature and psycho-logical or sociological profile of the individuals to be influenced, that is, buyers or potential consumers. The frame of reference is the subjective definition of the category, which will specify the nature of the competition. What other brands or products effectively serve the same purpose? This is a strategic decision: it marks out the ‘field of battle. It must not under any circumstances be confused with the objective description of the product or category. For example, there is no real rum market in the UK, yet Bacardi is very popular. This is because it is perfectly possible to drink Bacardi without realising that it is a rum: it is the party mixer par excellence. Another example illustrates the strategic importance of defining the frame of reference. Objectively speaking, Perrier is fizzy mineral water. Subjectively, however, it is also a drink for adults. Seen in the light of this field of reference, it acquires its strongest competitive advantage: a slight natural quirkiness. As we can see, the choice of the field of competition should be informed by the strategic value of that field: how big, how fast growing, how profitable? But it also lends the brand a competitive advantage through its identity and potential. Perceived as water for the table, Perrier has no significant competitive advantage over other fizzy mineral waters, even though this market is a very large one. However, when viewed in relation to a field of competition defined as ‘drinks for adults, Perrier becomes competitive again: it has strong differentiating advantages. What are its competitors? They include alcoholic drinks, Diet Coke, Schweppes and tomato juice. The third point specifies the aspect of difference which creates the preference and the choice of a decisive competitive advantage: it may be expressed in terms of a promise (for instance, Volvo is the strongest of all cars) or a benefit (such as, Volvo is the ‘safety brand). The fourth point reinforces the promise or benefit, and is known as the ‘reason to believe. For example, in the case of the Dove brand, which promises to be the most moisturising, the reason is that all of its products contain 25 per cent of moisturising cream. Positioning is a necessary concept, first because all choices are comparative, and so it makes sense to start off by stating the area in which we are strongest; and second because in marketing, perception is reality. Positioning is a concept which starts with customers, by putting ourselves in their place: faced with a plethora of brands, are consumers able to identify the strong point of each, the factor that distinguishes it from the rest? This is why, ideally, a customer should be capable of paraphrasing a brands positioning: ‘Only Brand X will do this for me, because it has, or it is †¦ No instrument is entirely neutral. The above formula was created by companies such as Kraft-General Foods, Procter Gamble, and Unilever. It is designed for businesses that base competitive advantage on their products, and works perfectly for the lOrà ©al Group which, with its 2,500 researchers worldwide, only ever launches new products if they are of demonstrably superior performance. This fact is then promoted through advertising. There are cases where the brand makes no promise, or where the benefit it brings could sound trivial. For example, how would you define the positioning of a perfume such as Obsession by Calvin Klein in a way that clearly represented its true nature and originality? It would be wrong to claim that Obsession makes any specific promise to its customers, or that they will obtain any particular benefit from the product apart from feeling good (a property which is common to all perfumes). In reality, Obsessions attractiveness stems from its imagery, the imaginary world of subversive androgyny which it embodies. In the same way, Mugler appeals to young people through its inherently neofuturistic world, and Chanel stands for timeless elegance. What actually sells these perfumes is the satisfaction derived from participating in the symbolic world of the brand. The same is true of alcohol and spirits: Jack Daniels is selling a symbolic participation in an eternal, authentic untamed America. To say that Jack Daniels is selling the satisfaction of being the finest choice would be a mere commonplace, like the tired old clichà © that customers are satisfied at having made a choice that set them apart from the masses (a classic benefit stated by small brands attempting to emphasise their advantage over large ones). Faced with this conceptual dilemma, there are three possible approaches. The first of these is to define positioning as the sum of every point that differentiates the brand. This has been Unilevers approach: the 60page mini-opus known as the Brand Key, which explains how to define a brand across the entire world, starts with the phrase: ‘Brand Key builds on and replaces the brand positioning statement †¦. There are eight headings to Brand Key: 1. The competitive environment. 2. The target. 3. The consumer insight on which the brand is based. 4. The benefits brought by the brand. 5. Brand values and personality. 6. The reasons to believe. 7. The discriminator (single most compelling reason to choose). 8. The brand essence. Fundamentally, therefore, this collection forms the positioning of a brand. However, the concept that most closely resembles positioning in the strict sense of the word is referred to here as the ‘discriminator. McDonalds also adopts a similar reasoning (see Figure 7.3). Larry Light defends the idea that positioning is defined when this chain of means-ends is completed (this is a parallel concept to the ‘ladder moving from the tangible to the intangible): My position is that two tools are needed to manage the brand. One defines the brands identity, while the other is competitive and specifies the competitive proposition made at any given time in any given market. This is the brands unique compelling competitive proposition (UCCP). Thus the tool called ‘brand platform will comprise, first, the ‘brand identity, that is to say, brand uniqueness and singularity throughout the world and whatever the product. Brand identity has six facets, and is therefore larger than the mere positioning. It is represented by the identity prism. At its centre one finds the brand essence, the central value it symbolises. Second, the brand platform comprises ‘brand positioning: choosing a market means choosing a specific angle to attack it. Brand positioning must be based on a customer insight relevant to this market. Brand positioning exploits one of the brand identity facets. Positioning can be summed up in four key questions: for whom, why, when and against whom? It can be represented in the form of a diamond, the ‘positioning diamond (see Figure 7.2, page 176). In positioning, the brand/product makes a proposition, plus (necessarily) a promise. The proposition may additionally be supported by a ‘reason to believe, but this is not essential. Marlboro presents its smoker as a man a real man, symbolised by the untamed cowboy of the Wild West. No support is offered for this proposition; no proof is necessary. It is true because the brand says so. And the more often it is repeated, the more credible it becomes. In this way the brands proposition, which forms the basis of the chosen positioning at a given moment in a particular market, may be fuelled by various ‘edges contained within the brands identity: a differentiating attribute (25 per cent moisturising cream in Dove, the smoothness and bite of Mars bars, the bubbles of Perrier); an objective benefit: an iMac is user friendly, Dell offers unbeatable value for money; a subjective benefit: you feel secure with IBM; an aspect of the brands personality: the mystery of the Bacardi bat, Jack Daniels is macho, Axe/Lynx is cool;