Every company lives by the arrow of progress. The three components of the arrow are branding, business strategy and knowledge. The primary purpose of this blog is to discuss business strategy, but as a core part of business strategy we need to make a diversion to discuss the other two. Lets start with branding.
Branding of a company's products and services is critical and very powerful. A good example of the power of branding is Santa Claus. When he was first conceived, he was presented in a number of forms; green, brown or white clothes, thin or fat body forms and different color beards. Coke saw the opportunity not only to brand Santa, but also to do it in their colors. They did just that through the power of their brand and some great advertising. Santa took on the red, white and black Coke colors and was forever deemed to be slightly chubby (probably from drinking too much Coke). He remains that way to this day. Thank you Coke (I think).
When you think about your brand, there are five factors that you should consider:
* Brand identity
* Consumer value perception and brand relevance
* Brand reception/esteem
* Brand linkage to marketing
* Consumer understanding
Lets briefly discuss each.
Brand identity -- How is the brand for your product/service different or unique to your target audience? What value do you bring to the table that no one else is duplicating? Do you appeal to customer status/style, entertainment, efficiency, or do you solve an every day problem of life.
Consumer value proposition and brand relevance -- Do the target customers understand and appreciate the value that you are offering then. You can have brand identity and still not appeal to the target customers. You must find a brand identity which is valued.
Brand reception/esteem -- How is your brand received within the market. Is it valued and held in esteem by the target customers (think BMW, the driver's car in the US or Tiffany, the only jewelry store for the Japanese)?
Brand linkage to marketing -- How will you market your brand of products and services in a way that will highlight brand identity? How will you get your message across?
Consumer understanding -- Do the customers really understand what you are offering and how to best use it to better their lives?
The bottom line is that your brand identity is your promise to the target customers -- you must demonstrate that using your brand is in their own best interest based upon the individual values of each target customer. You had better be true to your brand promise; let the customers down just once and the brand may be trashed.
Once you identify your brand, every professional in the company should have it on top of their mind. It must become a common touch stone for all in the company. If you want to test this, ask your key employees to write your brand identity on the back of a single business card. Are the results completely different or are they identical or at least similar?
Branding is intellectually difficult for most companies, but especially so for many non-profits. Non-profits are usually short staffed and overly busy. Spending time on branding is often seen as a waste of time. Yet, in today's world where more and more organizations are requesting donations every day (you should live in Charleston where I do), unique branding is critical. The exercise is likely to be difficult unless your organization is working with children (emotional branding) or reducing crime (safety branding). Those heading museums, aquariums, foundations, or providing assistance to the poor may have a very challenging time.
Many people believe that a business strategy can be developed prior to a brand identity and branding strategy. It is possible to reverse the order and develop the business strategy first and then build the branding strategy, however I believe that brand identity must be at least initially framed (a formal strategy does not have to be complete) prior to the development of a great business strategy.
What do you think?
