Branding: Brand new problems for pubs

When I graduated and reluctantly left university, I was offered a job as an advertising account executive. When I expressed surprise at my success versus stiff Oxbridge competition, the ad agency replied: "You really understand brands - and that's going to become very important over the next few years."

I only mention this because it seems extraordinary now to remember a time when the whole concept of branding seemed fresh and novel, and that I was in any way special because I understood it. Everyone understands brands now.

Back then, brands were logos on cans that you bought in supermarkets. But what my boss was saying was that branding was about to break out and apply to everything - shops, TV channels, financial services, even individuals. It was about to become the force that would shape our economy and our culture more than any other.

Consistency

The best definition of a brand I ever read was by a man called Paul Feldwick, who defined it as "a collection of meanings held in common by individuals". The point is, we all think the same thing of the brand in question. This is important because the key promise of a brand is consistency. Heinz Tomato Ketchup succeeds because you know every single bottle will taste the same as the last one, wherever you buy it from.

This promise of consistency and reliability, coupled with the emotional aspects of brands (the abstract feelings they give us, what we think they say about us) has seen branding become the modus operandi of every large corporation.

And so our high streets and towns have become completely branded, with the same shops offering the same products from Aberdeen to Brighton. Get off a train in a town you've never visited before, and you just know where WH Smith's will be, and next to that, Starbucks, and so on.

Pubs have always lagged behind in this branding revolution. While the most popular pub names in our towns are the Red Lion and Kings Head, there is no guarantee that pubs sharing the same name will be anything alike. It's one of the quirky charms of the British pub, which looks increasingly isolated in otherwise identikit high streets.

Branding behaviour in pubs

But if every other branch of commerce is embracing consistent branding, should pubs follow suit? If brands offer a promise of consistency and reliability, in a recession that's claiming 29 pubs a week should pubs be branding and standardising to offer drinkers a reassurance of quality and value?

Some certainly seem to think so. Whether it's rolling out a fully branded chain, standardising signage across previously diverse-looking pubs, indulging in the corporate nonsense of pretending they're not called pubs any more, or simply issuing menus that are identical up and down the country, the last few years have seen a definite increase in branding behaviour, with pubs belonging to a particular chain or division looking increasingly similar wherever you go.

The problem with this kind of logic is that it misunderstands what people want from pubs. And there's increasing evidence that when pubs fall for the lure of branding, it's not just the drinker who suffers, but the pub itself - and even the local economy.

People go out less often in a recession, and they look for cheaper prices while shopping. But that doesn't mean they're happy about it. The number of people who say they prefer to spend their free time at home has actually fallen over the last two years. They go out less - but when they do go out, they want to make it really count.

And while managed pub groups can use their buying power to drive down costs and offer competitive pricing, a standardised experience with the emphasis on low prices feels less special - not more.

Independent approach

This is why market analyst Mintel claims independent pubs and bars are actually outperforming the rest of the pub market.

Despite their lack of bargaining power, Mintel claims freehouses will emerge from the recession in the best shape, concluding: "The strength of independent pubs over tied or managed operations lies in their ability to be both more reflective of and responsive to their localities, offering more of a personalised experience with an added sense of character."

This manifests itself in two ways. Firstly, the licensee can build up more personal relationships with his customers - something people have always wanted from pubs and still do.

Secondly, freehouses have the ability to focus on particular specialisms. The rise of interest in locally brewed cask ale, imported craft beer and real cider and perry is the most visible example of an increasing rejection of standardisation and conformity by publicans and, more importantly, their consumers.

So pubs that have some individuality are prospering - because that's what cash-strapped punters are looking for on the occasions they still go out.

But the whole issue of chain brands has much deeper ramifications. The New Economics Foundation (NEF) produces a report on 'Clone Town Britain', warning of the real economic and social dangers of too much standardisation.

"An average supermarket has 30,000 products, but they're all owned by just 10 companies, and the decisions to stock them throughout the UK are made by just 120 people," says the report's co-author, Paul Squires.

"This is important because if you spend £100 in a chain store or supermarket, £60 of that leaves the local economy straight away, to pay shareholders and distant suppliers.

"And when a chain like Woolworths goes down, suddenly 700 high streets have boarded up shops on them, and that spreads.

"But if you shop locally, that money is reinvested in the community. That same £100 can effectively end up being spent three times in the same street, so the community benefits."

NEF argues for the urgent need for more balance between chains and independent shops. But Squires believes pubs have already begun the fightback.

Pubs are ahead of the game, he says, citing the growth of microbreweries as "putting a break" on the cloning of pubs. But he suggests that the other key strength of independent pubs - personalisation and knowing your customer base - could have an even bigger role to play.

"Our high streets are not just about shopping," he says, "they're also about social interaction. When we go from shop to shop, talking to different people to make our purchases, this promotes social cohesion and well-being."

You might not be able to put a direct monetary value on this social aspect of the transaction when buying a pint. But pubs that disregard it tend to be the ones that struggle.

Beneath the supposed glamour and excitement of building brands, the main reason branding has become so widespread in recent decades is that in an age of mass-produced, easily replicable products, brands help cover up the fact that there is nothing distinctive beneath the whistles and bells, nothing that sets one product apart from its competitors.

But pubs - or at least good pubs - do offer something distinctive, even something unique. People love them because they are not like other retail establishments.

If you own a chain of pubs, retaining that individuality may not be as easy as standardised brand management. It may not be as sexy. But in the long run, it will definitely be more profitable.