The other day I had to buy a gift for my daughter to take to a classmate’s birthday party. I was seeking a gift that would provide the maximum value for my money. But I drove 20 minutes out of my way to go to Target, although there is a Wal-Mart on my way home.
I started to ponder the rationality of my decision. My targeted purchase was a Barbie, which I knew was a dollar more at Target. In addition to the dollar, I spent extra money on gas by going to Target. Plus, the extra 40 minutes I spent in the car was time I could have invested in doing something useful. Despite all this, I felt like I got a good deal and a positive price/value. So why did I go to Target? I went because of their brand.
What is a brand?
A brand is a promise that you
make and
consistently deliver to your customers. Your brand includes both the tangible and the intangible aspects of who your organization is from the perspective of your customers. It is what causes them to position you in the marketplace. Target and Wal-Mart are both in the volume-discount retail business. However, their target markets, store personalities and customer experiences are quite different. The difference is in their branding, which can clearly be seen in their advertising, store layout and design, product choices, corporate partnership choices, employee apparel and many other significant strategic decisions.
Why is branding yourself essential to long-term success?
If you don’t take charge of your brand, it will be done for you. Your organization will be positioned by your customers, which means that their impressions of you may:
- Not be what you intended.
- Not be relevant to them, and thus cause a barrier to their considering your products/services.
- Be so unfavorable that any future business you want to do will be inhibited.
- Be so undifferentiated that you will not be able to compete effectively.
For example, Target’s brand is aimed at the yuppie market, which wants good value without sacrificing style. Wal-Mart, on the other hand, goes after middle-class Americans who want low prices and approachability. But what about K-Mart? If asked, most people would have a hard time explaining just who it is K-Mart seeks to serve and how that chain is unique. For this reason, K-Mart wasn’t even on my radar screen when I was seeking to purchase that Barbie. And I am not alone. Data collected on this subject shows that K-Mart lags significantly behind Target and Wal-Mart in terms of market share and revenue.
If you do take charge of your brand, it will yield incredible results over the long term. For example, it is estimated that Coca-Cola’s brand equity is valued at over $67 billion – making Coke the number-one brand in the world. This is amazing, considering that the company doesn’t do much more than sell sugar and water in a can. Another example is the Disney Company, which is fanatical about protecting the value of its brand. And, without even knowing the numbers, it is easy to see the value of a brand when most people consistently ask for a “Kleenex” as opposed to a “tissue.” In the short-term, a well-defined brand makes it easy to deliver a positive customer experience, which means that customers experience what was promised to them or what they expected. And in the long term, it is these brand lovers, customers who are loyal to your brand, who provide the base for brand longevity and exponential results.
What are steps involved with branding?
There are four basic steps to Branding:
- Market Research and Environmental Scan
- Completion of the Strategic Brand Profile
- Translation of the Strategic Brand Profile into Brand Charter Statements
- Organizational Alignment to Brand Charter
For market research and environmental scan, you need to be able to answer the following questions:
How are we perceived by our consumers?
- What is their awareness of who we are and what we do?
- What business do they think we’re in?
- How would they characterize our corporate personality?
- Is their impression of us favorable or unfavorable? Why?
- Are they motivated to try our products and services? Why or why not?
- If they have tried our products and services, how motivated are they to repeat their usage and recommend our products and services to others?
- If we came up with a new product or service, would they be interested in working with our organization again? Why or why not?
What do we know our about our consumers and the marketplace?
- How would we describe our consumers? (This includes demographics, income level, education, etc.)
- What are the expectations of our consumers? What is important to them?
- How do we see our consumers changing and evolving over the next 10 years?
- What choices do our consumers have that are in competition with our products and services?
- What do we have that appeals to our consumers? What do others have that appeals to our consumers?
- What are the trends in our industry that we need to be aware of? Which trends do we want to lead, be the middle of or lag behind?
Strategic Brand Profile
The table below is a strategic brand profile. When each box is filled out, the emotional and rational aspects of a brand are captured.
Translating the Strategic Brand Profile into a Brand Charter
Once decisions have been made on the Strategy Brand Profile, the concepts can be captured into a brand charter. There are four separate statements that comprise a brand charter:
- Vision Statement: This statement describes the ongoing state that the organization ideally wants to achieve.
- Essence Statement: This statement is written from the perspective of the customer/client and reflects how the organization wants its customers to feel when they are experiencing products/services.
- Positioning Statement: This statement is primarily used by individuals who create advertisement and printed collateral, and focuses on three things:
- Especially for Brand Lovers
- Our organization, product/service is the Frame of Reference
- That Product Difference
- Mission Statement: This statement clearly gives marching orders to the organization on what it needs to do, for whom and to what end, in order to deliver on the Vision Statement.
Organizational Alignment to the Brand Charter
Once the main strategic decisions have been made and articulated in the brand charter, the rest of the organization should be brought into alignment to support the strategy. Again, a brand is a promise that is made and consistently delivered. More often than not, this is where branding efforts fall apart. Promises are made, but they are made inconsistently. And, worse, promises are made but aren’t delivered on.
In terms of aligning external messages that are delivered to customers, review the following to ensure alignment:
- Website
- Products
- Services
- Atmosphere
- Printed materials
- Other customers
- Packaging
- Consumer messages in advertising
Review the following categories in terms of aligning your internal organization to support delivery of brand promises:
- Organizational structure Is work divided up in such a way that it supports strategic intents?
- Leadership Do your leaders understand and embody the brand?
- Processes Do processes support delivery of brand promises?
- Recruiting and Hiring Are the right people sought after and hired?
- Training Are employees trained on how to deliver brand promises?
- Compensation and Rewards Do these systems reinforce behaviors that support brand delivery?
The Bottom Line
During tough economic times, don’t cut your organization’s efforts to build an effective brand. You should never ignore your brand when you are “tightening your belt,” as tempting as it may be. Rather, that is the time to focus your resources on improving the touch-points between your organization and its customers.
You need to do more than make promises; you need to ensure that you deliver on them. You also need to do what it takes to ensure that your brand and strategic intentions are decision-making filters for employees at every level in your organization. Brands are defined by actions, not just words. What your organization does in bull and bear markets must reflect your brand identity in order to ensure long-term success.
Do you need to take greater charge or your brand? Give us a call at
407.235.8250 for a free consultation.