Saturday, December 1, 2007

Schwab 3D Branding

3D branding is a concept mentioned in a McKinsey article of 1999. It advocates adding to products functional benefits, process benefits and relationship benefits. They are the three dimensions.

In this article, Schwab is mentioned as a company that practices 3D branding.

Branding in 3-D

Marketing in three dimensions also means branding in three dimensions, which represents an opportunity to extend what a brand represents beyond narrow functional lines?and to gain leverage by doing so. Research shows that leveraged brands, which branch out into a number of businesses?earn returns that are 5 percent above the industry average.2

This expansion of the branding space represents an enormous opportunity. Charles Schwab originally built its brand as a low-cost retail discount brokerage that appealed to a large but limited segment of the population. By building in greater process and relationship benefits, such as Internet investing and the OneSource mutual-fund "supermarket," Schwab has developed what used to be a functionally based brand into a three-dimensional one (exhibit).

For more

No comments: