Brand Strategy : A Business Essential

Are you pondering the importance of brand strategy for your business?

Whether you're aiming to convince clients of its value or considering adding it to your skillset, this article offers solid evidence on why investing in?brand strategy?is essential for success.

BRANDS: A SIGNIFICANT CONTRIBUTOR TO BUSINESS VALUE

Intangible assets often carry more weight than tangible ones on a company's balance sheet, especially in sectors like software, retail, technology, and consumer services and goods. For the 13,000 largest publicly traded companies, brands contribute up to 40% of their business value.?

The Marketing Accountability Standards Board?(MASB) reveals that brands account for an average of 19.5% of enterprise value, and in some cases, over 50%. This demonstrates that investing in your brand can directly impact your company's bottom line.

ENHANCED SHAREHOLDER RETURNS THROUGH STRONG BRANDS

Kantar's annual BRANDZ study, which has tracked brands for 25 years, shows that the world's strongest brands consistently outperform stock market benchmarks.?

Interbrand's 30-year research on the world's strongest brands also supports this, with their top 100 brands valued at over US$3 trillion in 2022. This indicates that strong brands generate superior shareholder returns, making it a worthwhile investment for any business.

BRAND STRATEGY'S IMPACT ON REVENUE AND COMPETITIVE ADVANTAGE

A robust?brand strategy?can increase revenue by driving?perceived value, allowing businesses to charge a?price premium?and attract more customers. Research from?Harvard Business Review?in association with?EY?discovered that companies with a clear and driving sense of purpose beyond profit outperform the S&P 500 by a factor of 10.?

Deloitte's insight shows that purpose-driven companies experience higher market share gains and grow three times faster on average than their competitors, all while achieving higher workforce and customer satisfaction. By investing in brand strategy, businesses can differentiate themselves and outperform the competition.

TALENT ACQUISITION, EMPLOYEE ENGAGEMENT, AND MOTIVATION THROUGH BRAND STRATEGY

A strong brand can significantly impact a company's ability to hire top talent, as employees seek a sense of purpose. A recent LinkedIn study found that 80% of talent leaders agree that the brand has a substantial impact on their ability to hire exceptional talent. A company with a strong sense of purpose fosters more professionally and personally fulfilled employees, resulting in higher levels of engagement and motivation.

STREAMLINED SALES AND MOTIVATION FOR SALES TEAMS

Brands with strong clarity contribute 70% more to sales, according to?Kantar's study. A clear brand strategy simplifies the sales process for sales teams, enabling them to sell products or services more effectively. It also provides salespeople with a sense of purpose beyond monetary gain, leading to increased effort and adaptability.

BRAND STRATEGY ATTRACTS INVESTORS AND SHAREHOLDERS

Investors and shareholders are increasingly drawn to companies that effectively link strategy to purpose. When CEOs communicate corporate purpose effectively, stock prices and trade volume rise in subsequent days. By investing in brand strategy, businesses can attract more investors and shareholders.

ENHANCED BUSINESS TRANSFORMATION EFFORTS THROUGH BRAND STRATEGY

A 2015?HBR?study found that 84% of executives agreed that their business transformation efforts would be more successful if integrated with purpose, and 84% agreed that an organization with a shared purpose would be more successful in transformation efforts. By investing in brand strategy, businesses can have a clear sense of purpose, making it easier to transform and innovate.

IMPROVED CUSTOMER ACQUISITION COSTS AND PRICE PREMIUMS THROUGH BRAND STRATEGY

A strong brand outperforms weaker ones by 3:1 in terms of customer acquisition costs (CAC), according to a study by?Rokt. This demonstrates that a strong brand allows businesses to acquire customers at a lower cost. Additionally,?Kantar's research?shows that consumers are willing to pay, on average, 37% more for brands they perceive as meaningfully different, indicating that investing in brand strategy enables businesses to?command a price premium.

THE SIGNIFICANCE OF BRAND STRATEGY

Investing in brand strategy is a long-term commitment that can help businesses achieve their goals. A brand strategy is a comprehensive plan outlining how a business will cultivate, communicate, and maintain its?brand DNA. It should be a top priority for business owners or marketers aiming to build a strong brand that resonates with customers and drives revenue growth.

A strong brand strategy is vital for businesses seeking long-term success. A clear brand strategy enables businesses to differentiate themselves from competitors, attract more customers, and foster a loyal following. It can also help businesses communicate their values, build trust with customers, and create lasting impressions.

ADVANTAGES OF BRAND STRATEGY

Investing in brand strategy offers numerous benefits to businesses, including:

1. Differentiation: A clear brand strategy allows businesses to distinguish themselves from competitors and create a unique?brand DNA?that stands out in the marketplace.
2. Customer Loyalty: A strong brand identity encourages customer loyalty, enabling businesses to build a dedicated following of customers who identify with their brand values and feel an emotional connection to the brand.
3. Increased Revenue: A strong brand strategy directly impacts revenue by driving?perceived value, helping businesses charge a?price premium?and attract more customers.
4. Talent Acquisition: A strong brand can significantly impact a company's ability to hire exceptional talent by communicating a clear sense of purpose and values.
5. Improved Customer Acquisition Costs: A strong brand can help businesses acquire customers at a lower cost, as customers are more likely to choose a brand they recognize and trust.
6. Attract More Investors and Shareholders: A well-executed brand strategy can attract more investors and shareholders, as they increasingly focus on companies that effectively link strategy to purpose.

BRAND STRATEGY SUCCESS: A CLOSER LOOK AT RECENT CASE STUDIES

APPLE : A TESTAMENT TO INNOVATIVE BRANDING

Apple?Inc. has consistently positioned itself as a purveyor of innovative, high-quality, and user-friendly products. Their "Think Different" campaign, launched in the late 90s, perfectly encapsulated this brand identity, setting Apple apart from competitors and resonating deeply with consumers. As a result, Apple has cultivated a loyal customer base willing to pay?premium prices?for their products, contributing to their status as one of the most valuable brands in the world.

DOVE'S "REAL BEAUTY" CAMPAIGN: CHALLENGING INDUSTRY NORMS

Dove's "Real Beauty" campaign serves as a powerful case study in brand strategy in the consumer goods sector. Launched in 2004, the campaign aimed to challenge beauty standards and celebrate diversity, a stark contrast to the typical beauty industry?messaging. This strategy not only differentiated Dove from its competitors but also fostered a strong emotional connection with consumers, leading to increased brand loyalty and market share.

BRAND USA: BOOSTING TRAVEL INTENT WITH 'DISCOVER AMERICA' CAMPAIGN

Brand USA, the destination marketing organization for the United States, launched the 'Discover America' campaign to boost travel intent. The campaign was successful, resulting in a 22% increase in travel intent, demonstrating the power of a well-executed brand strategy in the tourism sector.

KRAFT: DRIVING BRAND FAVORABILITY AND PURCHASE INTENT

Kraft Heinz, a globally trusted food producer, partnered with Mavrck to drive a double-digit lift in brand favorability and purchase intent. The company executed a tiered influencer campaign strategy, recruiting micro and macro?influencers?who are parents to showcase Kraft products and recipes on Instagram. They then identified top performers based on content quality and adherence to brand standards, inviting them to apply to the 'LoveForKraft' ambassador program. The?ambassadors?were instructed to purchase their favorite Kraft products and feature them in their Instagram posts. The campaign resulted in a +40 point lift in brand favorability among non-Kraft users and a +15 point lift in purchase intent among non-Kraft users, demonstrating the effectiveness of their brand strategy.

NAVIGATING CHALLENGES AND SOLUTIONS IN BRAND STRATEGY IMPLEMENTATION

MAINTAINING CONSISTENCY ACROSS PLATFORMS

One of the most common challenges in implementing a brand strategy is maintaining consistency across all platforms and touchpoints. Inconsistencies in messaging can confuse customers and?dilute the brand's image. This can be particularly challenging in today's digital age, where brands are present across various online and offline channels.

Solution: The key to overcoming this challenge is to establish clear brand guidelines that detail the brand's voice, visuals, and core messages. These guidelines should be shared with all team members, ensuring everyone is on the same page when it comes to representing the brand. Regular training and updates can also help ensure that the guidelines are followed consistently.

DIFFERENTIATING IN A CROWDED MARKET

Another significant challenge is differentiating the brand in a crowded market. With so many businesses vying for consumers' attention, standing out can be difficult. This challenge is amplified in industries with many similar products or services, where distinguishing one brand from another can be tricky for consumers.

Solution: The solution lies in understanding the unique value proposition of the brand and communicating it effectively. This could involve highlighting unique product features, exceptional customer service, or a compelling?brand story. Market research can also be invaluable in understanding what consumers value and how the brand can meet these needs in a way that competitors do not.

MEASURING BRAND STRATEGY SUCCESS

Finally, measuring the success of a brand strategy can be complex, as it involves both tangible metrics like sales and intangible factors like brand perception. It can be challenging to quantify the impact of brand strategy on factors like customer loyalty or brand awareness.

Solution: The solution is to establish clear?key performance indicators (KPIs)?that align with the brand's goals. These could include metrics like brand awareness, customer loyalty, or market share. Regularly tracking these KPIs can provide valuable insights into the effectiveness of the brand strategy and inform necessary adjustments. Additionally, customer surveys and feedback can provide qualitative insights into brand perception and the impact of brand strategy initiatives.

CONCLUSION

Investing in brand strategy is a critical investment for businesses seeking long-term success. A clear brand strategy enables businesses to differentiate themselves from competitors, attract more customers, and foster a loyal following. By communicating a sense of purpose and values, businesses can attract top talent, lower customer acquisition costs, and attract more investors and shareholders. In summary, investing in brand strategy is a long-term commitment that can help businesses achieve their goals and build a strong brand that resonates with customers.

KEY TAKEAWAYS :

1. Brands contribute up to 40% of business value for publicly traded companies, making brand strategy essential for success.
2. Strong brands consistently outperform stock market benchmarks and generate superior shareholder returns.
3. A robust brand strategy can increase revenue, drive perceived value, and attract more customers, while also providing a competitive advantage.
4. A strong brand can significantly impact a company's ability to hire top talent, foster employee engagement and motivation, and simplify the sales process.
5. By investing in brand strategy, businesses can attract more investors and shareholders, achieve higher workforce and customer satisfaction, and transform and innovate.
6. The advantages of brand strategy include differentiation, customer loyalty, increased revenue, talent acquisition, improved customer acquisition costs, and attracting more investors and shareholders.