This paper aims to clarify some of the concepts which link brand and strategy.
In the following document, we will refer to branding and reputation in the same breath. This is because branding and reputation are vital elements of the same endeavour – to be well-considered in the marketplace. Looking at branding takes a wider view of reputation than simply what is said about you externally; it forces you to examine what you stand for by considering the vision and business direction (or mission) of the firm.
Why does my company need to develop a brand vision now?
The purchase of services and products is becoming more and more sophisticated. What differentiates organisations and service providers is not the basic elements of the service, which are almost an entry to the market, but the intangible elements which are so hard to emulate by your competitors. These are, primarily:
This means:
What is a ‘brand’?
Essentially, brands are about making client choice and client communication simpler and faster. We buy a particular product or service because just seeing the logo makes us think of a host of positive associations - quality, price, design, fashionability or reliability, for example.
All definitions of a brand revolve around the concept of a promise. For example:
“The promise of an experience and an ongoing relationship between supplier and customer, made up of tangible and intangible values that provide a security of demand, and therefore of earnings to its owner”.
In other words – a promise and a reputation for meeting the needs (rational and emotional) of the client so that existing clients remain loyal and new clients are attracted to the firm. In professional services the terms ‘brand management’ and ‘reputation management’ are, for all practical purposes, synonymous.
What is ‘strategy’?
At its worst, a strategy is a thick report compiled by a consultant and used by no-one. At its best, a strategy makes the firm more successful by providing a rational basis for making the following types of choices:
In short, strategy should answer the basic question – where do we want to go and how do we get there?
Many people in companies think that the rough direction of the organisation has entailed making sensible choices.
But few think they are rocket science. This is because a strategy often identifies the final destination (e.g. better profitability, top 5 player etc) without setting out the path to reach it. Strategy documents tend to be rational, hard to argue with logically but not very motivating on a personal level and very ‘samey’ for all firms.
So - what can a “brand promise” do for strategy?
A good brand promise can engage everyone to do with the firm (partners, staff, clients, potential clients etc.) on a motivating, human level and thereby increase the chances of business success. It can inject emotion, excitement and enthusiasm into the strategy and can help to guide action. Strategy tells people what the firm wants them to do; the brand promise tells them how to do it.
Consider some strong brand promises:
People in these firms must surely find it easier and more motivating to contribute to business success by using the brand promise as a guide to their individual behaviour than by relying on any ‘traditional’ mission statements to do with being on time, pricing well, outselling competitors or – agony of agonies – ‘being the best’; whatever that means!
People buy from people – so it is evidently essential to have a people focus in the strategy! We believe that brand delivers this focus …and ultimately your reputation.
How to develop a strong brand promise
A strong brand promise is derived from a clear, compelling philosophy (a vision) and is brought to life within the organisation by defining and implementing guidelines to behaviour (values):
The vision
For example:
Ikea: ‘Good design should be a democratic privilege for all’
The brand promise:
For example:
Ikea: Improve the everyday life of the majority of people
Benefits of branding
Benefits |
Examples |
|---|---|
| Gives unfair advantage | Orange was fourth to the UK mobile telephone market but its vision of ‘wire free’ communication where people call people – not places – led to massive growth |
| Demonstrates your leadership | BP’s new vision of playing a role in a sustainable future |
| Opens more doors for other services | Virgin brand covers airlines to financial services based on the same entrepreneurial, conglomerate-fighting platform. Also M&S |
| Gives you “must have” status on pitch lists | e.g. Magic Circle effect |
| Makes you stand out when others look similar | e.g. HSBC has rolled out a philosophy of one bank, one customer focusing on customer relationship management. This has seen the conversion rate improve from 1 in 3 to 1 in 3, supported by reward and recognition strategies. Also rated as the UK’s most admired bank |
| Implies consistent quality built on current strengths | (M&S food, furniture, clothes) |
| Simplifies the management task by giving you a route map for all functions | You may not do the same things, but you have core behaviours in common |