Tag: Family Business

Brands Family Business

Brands Family Business Through different historical stages, family businesses have played a great role in shaping the 100K Factory Revolution commercial offer for all markets around the world. At the global level, the family of the 60 companies represent 95 percent of the existing institutions; but there are a few areas of the world where this percentage will increase as is the case in the Arab world, where research showed, for example, that more than 90% of all business activities GCC is managed by family businesses. Is a family orientated companies behind most Arab economies element and represent a significant proportion of the brands chosen by consumers. In this article, dealing with Patrick Stahl consultant first consulting company “Interbrand”, the characteristics of brands are family businesses and puts her through standards that did not work and other signs that have been successful and have become an integral part of our lives.

Family businesses differ from other companies, where each is aware of has ever worked with or have a family owned company and realize that there is a strong characteristic of this system. It’s the middle of the unique features on the benefits and risks its own.



Brands are family businesses face their own challenges, and if it is not dealt with these challenges will become a serious competitive barriers. Perhaps you remember the catastrophic decline of the company “Gucci” in the seventies and eighties of the last century, or the recent crisis of the hotels “life,” which is rumored to have resulted from a family feud within the Pritzker family, or family declared conflicts inside the owner of the company “C & A” family?

Mohammed Abdul Jalil Al Fahim, Honorary Chairman of Al Fahim Group UAE, said in 2007 that “will be available for family businesses are increasingly an opportunity to get a large share of trading activity, and therefore we need to be ready to respond quickly and efficiently.” Part of this is to prepare a comprehensive assimilation as required by the process of creating and managing strong brands support and protect “the family element.”

Unfortunately, the role of trade discrimination within the family business has always been a subject of study. Brands are family businesses inherently less familiar with how to deal with the media and usually does not disclose the 100K Factory results or internal activities making them study harder. But given the importance of the role they play in shaping our economies especially in shaping the business arena that compete inside all signs Merchandise Trade For trademark owners care to learn from them.

Family businesses and commercial discrimination in the Arabian Peninsula

Launched from the Arabian Peninsula, many of the brands that are appreciated worldwide and respect in the last period, which extends from 10 to 20 years. Besides the brands famous aviation lines globally, such as Qatar Airways, Emirates Airlines, and the Union, there are brands such as Jumeirah, Aramex, and Aramco, and Al Futtaim, and the island, and Orascom, Etisalat, and other companies that have become symbols of quality, dedication and stability and order to the region.

As in other regions, many of the currently leading in the Arab region and beyond brands has made steady progress in the transformation of a symbol of quality to provide identical experience across all contact points with customers. With consumers getting used to in the Arab region on access to purchasing power and increasing diversity in the options, it is noticeable that behind many of the most successful brands there is a family company.

Interestingly, the possibility of identifying some of the factors common and distinctive patterns among family businesses in the Arab region. Featuring many of the most successful Arab family businesses some of the following features:

Closely linked to their societies
Its commitment to continuity and survival through successive generations
Intense awareness of the value of its reputation, where family members are aware that they are representing the family name of a company, whether they work or not.
Strong and effective management of the good reputation
Specific post in the company by large segments of the family prevails with a sense of dedication and commitment to the common and usually reflect the family structure of the company’s structure.
These characteristics are reflected in family businesses located outside the Arab region and some of them may be a blessing and a curse at the same time.

It began a lot of the great Arab family businesses-and especially in the region, the Gulf operations as agents or joint ventures with Western brands. This dynamic imposed a learning curve ascending to the commercial practices of discrimination on the Arab region. And Arab families were able to apply the lessons learned from Western brands are trademarks of their holdings as a family. Where he was able to transfer the task of market values ​​of the brands hosted by the brands to its (leadership, quality, innovation, and the like). On the other hand, for many global brands that are attributed to its success in the region linked to a family business are greatly appreciated within the community. And across all parts of the Arab world, we can find the trademarks of their holding companies bearing the family name, which provides quality brands owned in the region to ensure (such as Al Futtaim (UAE), and Nasser Bin Khaled (Qatar), the Kanoo Group (Bahrain)).

Besides the aforementioned agent model, there is a large percentage of the powerful Arab family businesses that have emerged in the region, where these companies have focused traditionally on the business activities of the company to a company which currently manages large industrial groups. Applauds these families strong companies, but it has not benefited from the lessons of the trade discrimination from close alliances with established Western brands are bound to follow certain practices. In spite of its good performance in the habit, these family businesses will need to further development of brand management for its tact in the future.

For these two models, as well as many other models of family businesses in the Arab region, we will in this article is to explain some of the most important teachings and the best practices of trade discrimination from all over the world, and that applies in particular to the family business.

Best practices and trade discrimination

While the trade discrimination is a complex issue, there are important lessons to be learned from some of the most prominent brands in the world. Here are some of the factors which must be taken into account.

Have very strong brands or obvious reason to be present. This end, the obvious working to distinguish them from other brands and create a sense of confidence and authenticity about the brand. Usually, it is not the expansion of the announcement of the internal main purpose of the brand, but this end is behind the company’s success every day. Company “Nike” and the idea of ​​its brand for “win-win” is a good example of that. Is the embodiment of this idea, the slogan “Just Do It”, and the idea of ​​working as a concept involves a comprehensive firm underneath all the products and services offered by the brand.
Know their customers leading brands and strives to remain a task for them. Strong high level of dedication to customer insights brands compared to other competitors appear. It is wonderful on this Philips examples and focus on the visions of customers and constantly follow the brand to ensure the survival of the concept of “logic and simplicity” important for many of the products and areas.
Characterized by the best brands coherence and consistency in the way of providing for themselves. Offering the experience of the brand announces what the brand over and over again across many points of contact. It is wonderful to this brand of the company “Apple” examples; become the “Apple” in the very consistency so that the products no longer need to carry the symbolic logo to be distinguished by consumers. All are experiences with the brand contact points with consistency and reliability, and continues to products from new innovations essential task for the company.
Leading brands include employees as a means to provide brand. Along with family members play the role of ambassadors for their companies, strong commercial Valalamat making a great effort to ensure that their employees the ambassadors of the brand when dealing with customers. It is wonderful on this multi-sections and a specialist in high-end goods in the United States, “Nordstrom” shop examples. There is a staff ambassadors for the brand, and be empowered to adopt any means necessary to meet the basic needs of the client and the value of the brand mission to provide great service to the customer.
Leading brands of the past remained the leading brands through the present to prepare for leadership development. McDonald’s switched from a brand concerned with size and the award to a brand associated with fun and find a space to celebrate the life and youth and health. This is a great example of a brand successful in leadership development.
Attachment to the idea of ​​a major

Most brands are family lucky because they arise out of attachment and passion key idea. The often-founder, who have a better vision of what could be the company and to whom, where and why, the leadership of the success of the family business.

Brand family of large German company “Henkel” thrive for being “a leader with its brands and technologies to make people’s lives easier, better and more beautiful.” This basic idea has remained the focus of the company for more than 133 years since the founding of Fritz Henkel company in 1876 in terms of the idea of ​​providing products make people’s lives “easier and simpler.” As it illustrated by Henkel, enjoying family businesses an advantage because they can easily give originality trademark ideas. This could help to differentiate them from competitors.

Stay in touch with customers – ensuring important

Even before the advanced research and analysis of brand appearance, branding the family business known as know their customers well. A unique combination of engagement and commitment on the part of family members and regulates the level characteristic of family businesses. Because maintaining the company’s customer satisfaction by family responsibility and position for personal pride, there is considerable attention directed to do this properly.

“March,” a family company has given priority attention to the 100k Factory customer. “Reciprocity” from the basic principles within the company, “March”, where it is establishing beneficial relationships with all stakeholders, particularly customers. By incorporating this idea in the philosophy of the institution, “March,” the company ensures that the focus is on mutually beneficial relationships and lack of concern about what makes them the importance and value for its customers.

However, Valatefh that a family company’s assets may be, may well become a barrier, where the focus is on emotional relationships between family members, not customers. Do you remember when it was Gucci is still a family business? He possessed all of the brothers Rodolfo and Aldo Gucci, 50 percent of the company, but the rivalry personal impact negatively on how has the company’s management. During the possess of the company, has been overlooked idea trademark of Gucci and ignore the real needs of customers to high-end products, Vdopt brand to produce a range of products below the level. To re-brand back on track purchased by an external company and years of dedication to regain its position by Tom Ford and Domenico de Sol required.

Stay the course

Instead of falling under the control of the deadlines for the final reports or shareholder pressure (as is the case with many brands), Valalamat commercial family businesses are managed through liability generations. This distinctive vision for the long term sets the stage for family businesses to focus on the coherence and consistency of the brand.

There are many family brands that provide a benchmark to measure the consistency and constancy. Fashion House “Chanel” and one may be the most prominent examples: the brand owned by a family company and run by the Wertheimer family. Although Coco Chanel has always been associated with the brand symbol in the minds of many, it is through family ownership of fixed managed brand to continue her career.

Company “Barilla” is another example of good global family company Fixed: after the passage of 130 years of the company, what the current leadership remains of the fourth generation maintains the tradition of the brand original family business, which has now become one of the leading food companies and Italian market leader global wheat products. Most of us know the brand through the famous pasta products sold in packages of blue cardboard.

Although the company currently employs more than 18,000 employees and increase their revenues to 4.2 billion euros, they do this through products are connected to the original spirit of Target brand. It is surprising that the visual brand identity remained so as they are over the years through the expression of the basic values ​​and build market value over time.

Post staff

Are trademarks of family advantage for companies to attract employees with respect and participation. These companies enjoy the status it is available for family members typically work as ambassadors emulated their brand. Yes, they are often away from the rest of the company, but most often the staff is looking forward to them for guidance on how to behave and what awaits them. As one of the family members Vofalk inside and outside the company will be reflected on the company. For employees, it is important to know how they can work as ambassadors for their company.

In the Arab world, often family businesses as a source to provide large employment opportunities within their communities. For consumers, there is usually associated with a strong symbolic value, led the family.

Through the founders and family employees of the company formed for the family of a strong sense of involvement, and family element as well as impose trademarks family a unique challenge: nepotism. Because the goal of family businesses is that extends for successive generations, the employees are exposed to a sense of the impossibility to reach the summit and that the success of their brand not be attributed to them. Family businesses need to manage career paths for family members to effectively reduce the reluctance of employees to participate as a result of their perception that there is nepotism. Expectations must be among the family members and the staff is very clear – if there is an individual family is prepared to take a leadership position, it must inform the staff – and the family members to prove their eligibility and their superiority on the existing staff at the same level. We often hear family members say: “I have been a lesson for all, and I had to make a greater effort to seek more and to prove to myself and my family and my worth of staff for the position of leadership.”

The source of the caliphate things dangerous for any family company and its brand. The question of definition is very important, and in some cases there may be a need to make difficult decisions not to allow family members to occupy positions of leadership to ensure the retention of employee participation.

Company “Ikea” is one of the strong global brand known for its superiority in its class regarding the participation of employees. “Ikea” is a family company, although some do not know it. What the company is still under the control of the family Kambard albeit indirectly. And what the original founder of the company Anajafard Kambard still involved in the work system by visiting the shops and facilitate the participation of staff and liaison with an IKEA commercial.

In addition to the personal involvement of the family, Ikea is investing a lot of time and resources to train their employees across the globe on everything from identifying the concept of IKEA and “Ikea style” down to the architecture of the stores IKEA and logistics inside the shops. Through she goes ahead on this, the company is not working on the mere participation of its culture with the staff, but it allows them to work as well as active ambassadors for the brand.

Prepare for leadership development

Perhaps the most difficult challenges facing family businesses are learning how to effectively develop. Ironically, what makes a strong family businesses usually (such as heritage, supreme vision, and participation personal family members) may also contribute in giving a certain level of inflexibility. Often brands are family businesses are emotionally charged and tangled with the family heritage. For this reason, it may be taking emotional decisions based on misleading defended (a good decision for the family name, but not as well as the brand of the company) or sometimes does not make any decisions at all.

In the Arab world, this may be one of the most important factors for family businesses. The economic crisis has affected the region and necessitated the companies to be flexible in adapting to new economic realities. And it became a customer that Etwaimwa with the largest range of options due to the entry of lower-cost alternatives to markets, and will is imperative for brands in the resistance to stay in the competition. It has become important now -More than did before the time for family businesses to identify traits and characteristics in its brands and what are the strategies that will be employed to compete effectively in the future. It may be difficult to make some of these decisions, but if taken at an appropriate level of insightful vision, will ensure the success of the companies.

Family businesses should benefit from the insights and the search for tools to take decisions related to the brand. Tools such as brand assessment and analysis of the value of prompt, and analyze the “role of the family”, along with a study of brand strategy and choose the position, may help families to take a lot of the decisions necessary to continue to guide the brand and developed in the future for the next generation.

Potential competitive advantage: “family element”

Family businesses are inherently something that is not available to other companies, namely “family element”. Whether it is based on the heritage or the fame or the promise of quality or continuity, it is very important to know the role that family plays in extracting value from the brand’s activities in order to increase value.

While “The role of the brand” scale refers to the evaluation of the brand, it must take “the role of the family” in mind for the family business. This means identifying the values ​​that can contribute to the “family element” and what are the values ​​associated with offline family aspect. And with a comprehensive view of these factors, it will enable the family business making its decision on how to use the family structure to guide value for the brand.

For example, with the recent decline in confidence in the global banking sector, the role of family just to grow within the private banking activities began. In this area, it may have family commitments to customers significant impact on the customer’s sense of security and confidence.

Altogether to say, the main aspects of trademarks include (family):

Identify key a clear idea of ​​the brand and creative writing formulated in a manner easily absorbed immediately. This was probably the idea already on the table throughout the generations that came to the company, but it is important to ensure the clarity of this idea and enthusiasm of internal and external benefits that derive them internally and externally. This will ensure the continuation of the main idea beyond the current generations.
Care to be the focus of attention is the client’s needs and not the relationships among family members. Strengthen the resolution, “intuitive” decision visions based on the finding process.
Expression of the stability of the mark industrial designs protect them from abuse, but at the same time, the study of these expedited procedures that may be required at times in response.
Take advantage of the deep feelings of the family members in the draw method to be followed on the staff to highlight the brand. Investment in staff and enable them to work as ambassadors of the brand as well.
Take advantage of the “family element”. Accommodate the family’s role in the overall presentation and how you can make the most of it to guide the brand value.
For family businesses, these are the five key aspects that must be taken into account during future of brand management. These measures may not be as complex plans, however, may help to ensure the continuity of the brand so that it can manage the next generation, and to ensure that the next generation will continue to add value to the company.

Strong brands are family businesses similar to those strong brands in all parts of the world. These brands are competing in the same markets, where the situation is so, it must be given the same family brands tools for companies and operations at its disposal like that of other leading brands. Although characterize its structure and regulations that permit the provision of the most powerful brands, the family companies often turn their backs to value through obey the emotion at the expense of the facts and not to be taken for arrangements to enable them to impose change when there is a real need for it.

Throughout the Arab region, family businesses represent important that the quantum of the commercial activity that the region needs to focus on the commercial discrimination for family businesses. For many companies, it is expressed and the announcement of the family element using sub-brands for a long time. The gain more insight to the dynamics of the family element will allow better decisions and more flexible to ensure the continuity of the company in the competition under the leadership of future generations.