Why your company needs a brand strategy

We have all used and loved brands that were launched decades ago. There is pride and a sense of achievement in being associated with certain 'brands'. We identify with them as if they are breathing mortals. The days of taking pride in locally made shoes or clothes went out of the window in the 1990's. People wanted to own a piece of joy, desire, pride, hope or lust...as the brand-case may have been.

Companies spend a lot of time on planning, developing and managing the 'image' and all those intangible, equity-bearing assets that can be called 'brands'. Those could be a range of services or products or experience that the consumer gets by spending time and money on them. Even the reputation of a company and its reaction and action to commentary could be termed as a 'brand' because it directly impacts the image of the company in the eyes of consumers and the world.

Did these brands become famous overnight? Not by a long shot. As the Company evolved, grew and dared to take a stance, created its own 'brand' name and symbol, an identity that took on a meaning and life of its own, the Company's brand began to be 'somebody' instead of 'something'.

Can building a brand be the result of a happy accident?

The world's best known brands (in no particular order) - be it Ford, McDonalds, GE, Nike, Walmart, Tata, Dell, UPS, Toyota, Microsoft, Deloitte, Sony - had one thing in common. The founders wanted to build companies that lasted beyond their generation or two. They were less concerned about selling their company, unlike startups and unprofitable companies of today. They had a long-term plan for establishing and growing their company. The resultant name and recognition that appeals to us has a history of years of great products, design, innovation, attention to quality or customer service.

When companies faltered, their course was naturally corrected by irate customers and feedback though it took longer to do that thirty years ago than it does today in the digital age. Building a brand can't ever be the result of an accident. It takes time and patience, and perhaps many incidents. Just like Rome, brands can't be built in a day.

Why should a Company create a 'brand name' that conjures up other things?

The brand - the name, identity, promise, symbol, behaviour - and everything related to how the consumer would interact with the Company's products or services - is going to get inadvertently associated with 'certain kinds of people' (Target Audience) or 'things' (Associations). If someone famous is wearing a brand of clothing, that brand of clothing becomes 'elite' or 'fashionable' depending on the character and style quotient of the celebrity. If a rockstar drinks from a bottle of Coke on stage during a concert, the brand becomes associated with the passion and spirit of musicians.

Companies need distinct names to be remembered and also to differentiate themselves from one another (even if they happen to sell the same goods). It is important to have a name that's going to be liked by the employees and the customers, not just the Founders. The 'brand name' should be easy to remember and associate with the product or services the Company sells. One can't name drinking water, Poison, though its found favour with a company. Alternately, Water as a brand name could work for perfumes companies as we have seen from Davidoff's Cool Water.

It is a great opportunity for a Company to identify and create an image or persona of itself through a brand name and a symbol or logo to enable the right associations with people and things. Most sports companies do this really well like Nike and Adidas.

Why have a brand strategy at all if it is going to get linked to people and things?

The Company's brand is bound to be get associated with different kinds of people and things unless there is a conscious effort and plan on the part of the Company to define its reason for existence, its purpose and ideals, and finally, its promise to customers. In that case, only the kind of customers the Company seeks, is likely to get attracted to the brand.

If you are an entrepreneur and you want to outlast the next door cake shop that shut after being two years in business, you need to think long-term. If you wish to build your company only to sell it to the highest bidder, you still need a brand strategy. What's your plan to be 'seen' and 'experienced' as a Company that's worth buying? What are you offering besides bricks and mortar, and a handful of people with some skills that can get outdated in a year?

What does the 'brand strategy' determine?

The Brand Strategy is a company’s long-term plan for developing and managing those intangible, equity-bearing assets called ‘brands.’

Why is it important?

Because when brands are thoughtfully managed, they have the capacity to bolster a company’s competitive advantages and deliver huge financial returns.

If you work for a Company that already has a good name and image in the market and everyone employed there is content with the feedback and involvement of existing customers, you would still need to rethink the existing Company strategy and devise a Brand Plan. Ask yourself:

Will the Company survive competition?

Is it delivering more than what it could?

Would it leave a mark on the landscape and make news even when it sells?

How much is someone willing to pay for the 'brand'?

A sound brand strategy will determine the Company's attractiveness and saleability in an overcrowded market.

What is the Brand Strategy?

All touch points that shape the market's perception and behaviour towards the Company are the elements of a Brand Strategy that would serve the Company's business plan:

1. Corporate Identity (which must include the Mission, Vision and Values, Logo etc.)
2. Names
3. Message Systems
4. Product Branding
5. Use of Brand Guidelines
6. Brand Portfolio Structure (in order of priority, what we call the Brand Architecture)
7. Visual Systems

A wildly successful Brand Plan or Strategy always benefits from a strong 'brand' that stands out from its category be it Consumer Goods, Durables or Technology. The Company and its offerings have to be relevant and believable, because what the customers would buy is not just the product or service, but also what the Company stands for, which in turn should be built on credibility and a compelling truth.

Every Company needs a Brand Strategy to succeed in achieving their goals. But first, it must build a credible experience backed by the Brand Promise for its customers, which can't be anything less than the Compelling Truth.

Research and content credits: Thanks to the various brand companies and consultants from all over the world including Interbrand, The Brand Company, Best Brands, Clutch, Ogilvy.