A Blank Check and Branding: The Power of Name Recognition
In a market where demand is rapidly growing, companies perform better than one might think while providing low-quality products and services. However, the companies that eventually come out on top are those that provide brand recognition and offer high-quality products and services. The movie 'Founder' can offer important lessons about what brand recognition truly is.
The McDonald brothers implemented a concept that dramatically reduced waiting time, as the customers wanted fast service. The brothers eliminated all unnecessary menus and introduced their 'kitchen speed system' to reduce customer waiting time from 30 minutes to 30 seconds.
After seeing McDonald's signature logo, the 'Golden Arches', he proposed one more new concept. Kroc wanted to raise the McDonald's Golden Arches to a level of instant recognizability, reserved hitherto for the Christian cross of a church, or the American flag of a courtroom. He also wanted McDonald's to represent a communal space in this same way.
Don't you think this concept is apparent in the world around us? Starbucks, and its recognizable Siren logo, represents ‘the third space’ where people gather in an area that is not home or work.
Kroc became an industry magnate after expanding McDonald's from just a few stores to countless franchisees across the United States. He then offered a blank check to the McDonald brothers and gained all rights to the McDonald's company for $2.7 million.
After signing this contract, Kroc told Dick McDonald his reasoning for what made McDonald's so successful:
Kroc: " Do you know why so many people looked at the system and didn't succeed? They all lacked one thing that makes McDonald's special."
McDonald: "Which is?"
Kroc: "It's the name, that glorious name 'McDonald's,' It could be anything you want it to be. It sounds like America"
Every unicorn that has risen like a comet in their respective industries had brand names and logos that were special, friendly, and imaginative.
What is the first thing that comes to mind when you see the items below?
A coin, a K-pop singer, an electric vehicle, an energy drink, a search portal, coffee, a mobile phone, a messenger app, or an accommodation-sharing platform.
Warren Buffett, a value investor, also invested in companies with high brand value, such as Coca-Cola and See's Candy.
Today, I suggest that startups develop products and services that capture and occupy new markets. Why not create a cool, concise, imaginative name for your company or a fantastic brand name for your products and services that exudes innovation and approachability?
Who knows? These changes could be the next powerful weapon to defeat your competitors.