Branding Deep in the Russian Federation

In March 2005,1 was invited by one of Canada's economic development agencies to create a branding program for a leading business school in the Russian Federation. My client was the Nizhny Novgorod Commercial Institute, or NKI. Created about 10 years ago, after the breakup of the Soviet Union, it has

Nizhny Novgorod is Russia's third largest city, with a population of more than 2.5 million people, and yet it's barely known in the West. (Imagine telling people you've just returned from Chicago and having them ask you where that is.) Only four hours east of Moscow and situated at the union of the mighty Volga and Oka rivers, it was fortunate in escaping both world wars unscathed. During World War II, it was a major producer and supplier of armaments and food supplies. It still has a large industrial base that includes the massive Gaz automotive plant, as well as a submarine building facility. But Nizhny also has more than 12 educational institutions, its own kremlin,' an opera house, a ballet, and a symphony. The schools, of course, give it a huge student population, but it also boasts new shopping centers and cinemas, and a very active real estate market, especially in the historic downtown area.

The rector of NKI, Natalia Sumtsova, is unique in the Russian executive landscape. In a country where men hold all the status positions in business and government, she has not only made her mark as an innovator and leader, but is also an inspiration to other women with management aspirations. NKI has a growing reputation for being innovative, international in scope, and very successful in both job placement and other growth metrics. At one time, it was funded entirely by the State, but just as with many educational institutions in the West, times have changed and government funding has been reduced. Now, only 10 percent of its budget comes from the State, and NKI has to rely on its own initiatives to grow enrollment and fund new investment. The competition for students of higher learning has become more active, and the college needed to strengthen its brand.

A Personal Challenge

At first glance, this project looked a bit daunting. For one, few people spoke English, so I had to use an interpreter for almost every conversation. second, I was unfamiliar with their marketplace, and I had only a month to come up with a complete branding program. Furthermore, only a few people knew what branding was in the first place; and there was definitely some reservation about its true value.

I met with the college's marketing director, Igor Siziomov. He was concerned about the college's marketing efforts and felt he had to work on the brand. He had spent several months going through numerous logo designs and advertising slogans. He was the first to admit that branding wasn't "just a logo and a slogan"-he knew there had to be something more.

Siziomov was extremely helpful and made sure I had the resources I needed. He gave me access to all the market feedback they had, and he instructed his staff to assist me in any way they could in the weeks ahead. After making it clear to the stakeholders that we had a very aggressive timetable, I initiated the first crucial step in discovering what the NKI brand was all about.

Brand Sleuth

I followed my standard procedure of investigation. It consisted of interviews with executives, marketing staff, administration, students, and professors. The college had already done some of the usual marketing studies, comparing themselves to the competition. Fortunately for me, some of this work was perception-based feedback, and that was more important to me at this point-marketing metrics could come later. I needed to discover, articulate, and outline four core areas of the organization:

1. The brand values

2. The brand promise

3. The brand personality

4. The brand icons

I discovered that it doesn't take long to find out how authentic an organization is, even if it exists in another culture and language. I began by asking people what values were important to them and their work. Initially, people did not perceive values as having any relevance at all-they talked instead about features, benefits, comparisons, and personal preferences. "You've just got to tell people about our new computer facilities!" one of the board members proclaimed. I looked for values inside the answers I received; and it soon became apparent to me that I was working with a great brand.

Quality

This was a word that was mentioned many times. I looked for evidence that this value was legitimately demonstrated. To my delight, it was shown by the quality of the teaching staff, as well as by the school's commitment to technology and the IT staff to support that commitment. The superior student services provided, and the certification process established with university partners in Britain and Germany, added to the value. And it was clear that someone was paying attention to details. "The food is good here. You may not think that's important, but it's important to a student," one of the students told me.

Mobility

The idea of mobility is very important to educators in Russia. In an economy that has been unstable for so long, people are looking for a decent education that gives them a secure future with prospects for growth. NKI has an excellent rate of job placement (98 percent) as a result of its many partnerships with the business community. Moreover, international certification is built into the programs.

Success

The college was growing in terms of enrollment, as well as physically (the library, for example, was being expanded, and satellite schools were being created in other regions). Students who were enrolled in the programs rated NKI number one compared with competing institutions.

Perception vs. Reality

My next task was to create a list of thoughts and assumptions found in the marketplace about NKl in order to determine what was true and factual. This would help me to articulate a core brand message that addressed perceptions that needed to be altered, or ideas that needed to be promoted. Marketing studies showed the following: (1) parents thought the college was limited to only a few areas of study; (2) students graduated with a degree that was of questionable value; and (3) the college was a number seven wannabe in prestige and desirability in student's minds rather than the number one that it really is.

Some of these perspectives were related to the college's history. The Institute was created by the business community at the turn of the century as a school for bookkeeping, filing, inventory management, and other "commercial" areas of study. During the Soviet era, it was a technical school for administration skills. The misinformed assumption was that it was still a trade school for an education in retailing.

In fact, I was delighted to discover, the college could boast quite a few firsts. It was first in job placement success, first in salary levels for professors, and first in establishing international credentials and partnerships. During my short stay, NKI connected its library with the University of Moscow archives, another first for the region. There was a very important and distinct pattern of innovation here.

Making a Difference: The Brand Promise

The purpose of a brand message is to communicate an ongoing brand promise. This brand promise has to be authentic and deliverable. Imagine if FedEx didn't meet its promise to "get it there overnight!" Weak brands talk about themselves, but great brands create "imagination value." NKI needed to speak directly to its target market with this kind of messaging. The following two statements make up the core brand message of NKI: "First in so many ways. Higher education for a secure future."

Since the college is first in so many areas, recipients of this message can imagine themselves also being first. The statement suggests leadership and opportunity; and it begs the question: "Which firsts?" A whole campaign can be built around this statement alone. In Russia, the term higher education goes beyond the perception that a college is only a trade college. secure future implies the practical training and relevance of the curriculum, and the high rate of job placement. Where North Americans choose simplicity, Russians prefer complexity. This brand promise has a little more weight than usual, and as a result is more appealing in the cultural context in which it is designed to work. It calls out to leadership in the international arena, as well.

Brand Icons

The brand icons that existed included the logo that Siziomov had commissioned, the various shades of green that were used on everything from stationery to gymnasium walls, and some outdated symbols from the early 1980s. I am always very careful with an organization's logo, because it usually has some recognition and brand value already; and people tend to be emotionally attached to it whether it has any relevance or not. Fortunately, this one had only been around for a few months. Previous incarnations of the college logo were various versions of the name laid out in the Cyrillic alphabet with little variation or styling.

Discovering the Brand Name

In my first meeting with Rector Sumtsova, a vivacious woman with a great sense of humor, she mentioned Bill Gates and Oxford in the same sentence. The inference was that if someone like Bill Gates recommended the institute, and if the institute had a reputation like Oxford's, NKI would be even more successful! This tongue-in-cheek statement was useful to me-I was able to use these potent references when it came time to argue the case for an improved and representative logo.

There were several obstacles in the creation of this new identity. For one, embedded in the Nizhny Novgorod Commercial Institute is the word commercial, a concept we wanted to deemphasize. The English acronym was NNCI. The Russian acronym was in the Russian Cyrillic alphabet. The new logo had to work locally, in Russia proper, as well as internationally.

I knew that no one would bother using the full name in conversation, so I needed to know what the community called it. "It is known as NKI (en-kaa-ee)! That's what everyone calls it," students told me. So, I went out on the street and asked someone where NKI was. The answer they gave me was correct. This was an important distinction, and not something I had picked up through my interpreter. We always referred to the college as "the institute" in conversation (institute, in Russian, is actually the way Russians translate college).

The marketing department had commissioned a dozen logos before deciding on the clock logo pictured on page 84. It contains symbology that is redundant and sends a mixed message. The K, which represents commercial, was emphasizing a concept that needed to be deemphasized. "It's time to go to NNCI" is a passive statement, does not convey any brand value, and has no emotional resonance.

We examined the logos of other great schools around the world (including Oxford); and I used this analysis to convince the stakeholders that a more literal word-mark had more merit than the abstract shapes they had commissioned. I had noticed that the logos of many of Russia's colleges and universities were quite obscure, and I felt the new design would not only stand out, but also reflect the international bias the school had so carefully fostered.

The purpose of the new logo was to:

* Symbolize, but not emphasize, NKI's heritage

* Capitalize on name brand recognition

* Be recognizable internationally

* Work equally in English and Russian versions

EN-KAA-EE is how Russians refer to the institute, and this is great brand recognition within Russia. The "crest" incorporates this literal name. We embedded the K, using it as a symbol of the institute's history. Most of the top universities have their name beside a crest on a white background, and we've done the same. The English versions maintain the Russian Cyrillic in the crest, for consistency.

Over a period of nine months that included two one-month visits, I presented the brand program to management, staff, and students. I gave some lectures, appeared on television, and taught some classes. Rector Sumtsova, the marketing department, and other members of management wholeheartedly endorsed the new brand. The students were enthusiastic and wanted to participate. However, the teaching staff of approximately 300 full-time and part-time instructors were indifferent. Some seemed to question what was in it for them, and why did they need a foreigner to tell them about their brand? Others, however, approached me on their own initiative and expressed enthusiasm and support.

Results

Since the new brand's inception in early 2005, awareness in the Nizhny Novgorod region has improved. In 2004,9.7 percent of potential enrollees said they preferred NKI when asked about their preference for higher education. In 2005, the number grew to 13.4 percent of all respondents. Enrollments have improved, as well. The following numbers reflected applications for registration in NKI programs:

2003: Full-time, 1,510; correspondence, 1,427

2004: Full-time, 1,463 (-3 percent); correspondence, 965 (-23 percent)

2005: Full-time, 1,534 (+5 percent); correspondence, 1,062 (+9 percent)

Internationa] awareness has also improved. The college agreed to launch a joint MBA program with the High School of Management & Economy in Essen, Germany, which boasts 16 education centers and 6,500 students. Agreements have also been signed with other Western universities for cooperative teaching and student exchanges.

In one of the workshops we had, I made the suggestion that the college have a pre-enrollment process. At present, enrollment is passive, in that the college does its marketing and other promotional activities and then waits for prospective students to make contact or to apply. I suggested the college pre-enroll people online through its web presence, or in person at exhibitions and elsewhere. This would not be a formal application, but rather a way to pursue students who have an interest. Leads could be followed up and appointments for application could be made.

This subtle change in strategy is a very proactive one. In fact, Natalia Sumtsova told me that it was a very North American idea. It suggested that we were making it easier to get accepted at NKI. It was only recently that the Russian minister of education told the press that the more difficult it was to get into a school, the better the school! (I'm of the opinion that he was running cover for the more bureaucratic organizations.)

However, we'll see if they come around to my way of thinking. After spending a couple of days thinking about the values and the brand message I had suggested, Nelly Savitskaya, NKI's director of advertising, contacted me.

"You've provided us with the missing piece," she said. "It feels as if until now, we've just been throwing facts out into the marketplace. This gives us so much more to focus on and communicate."

Reprint #06172ROB81