Brand strategy

 

Why does your brand need a defined brand strategy?

Successful branding creates brand equity. People would want to spend their money on your product just because it’s your product. Brand strategy is precisely the way you build up this equity.

The best example of a brand with high brand equity is Apple. Apple launches almost similar products in terms of features, yet their fan following is huge, and people want to buy their product just because Apple launched it.

They have achieved this recognition because they knew how to approach their customers. Their brand personality is about lifestyle, hopes, dreams, and aspirations. They were aware of the demands of their audience and found a way to communicate with them and function as a business that has ensured that they are here for the long term.
All in all, Apple is an example of designing and executing a good brand strategy.

What are the types of branding strategies?

Branding strategies come in different forms. While there is no universally applicable classification for them, roughly, they are regarded to be of five types:

Personal Branding Strategy

Here, an individual IS a brand. Think of life coaches, motivational speakers, or even experts like Marie Kondo. They have expertise in a particular field, and their brand is about establishing themselves as authority figures. The idea here is to build a brand around a person in a way that feels like a natural extension of their personality.

Product Branding Strategy

This is self-explanatory. When you have a tangible product, you build a brand around it in a way that it stands out from its competitors. Think of Coca-Cola- the drink has an instantly identifiable label, packaging design, logo, and slogan which sets it apart.

Corporate Branding Strategy

Corporate branding is about developing an overarching brand for an entity that has multiple brands or products under its umbrella. If you are looking for an example, what can be better than Tata? The highly diversified conglomerate has a set of principles, values, and mission that informs ALL its businesses. By virtue of being a product of the Tata Group, brands like Tanishq or Tata Salt command prestige in the market.

Attitude Branding Strategy

This applies to companies that go beyond a product- and come to embody an attitude or mood. Think of Nike- a sportswear brand that stands for a lifestyle instead of any individual products. Its signature is its tagline “Just do it”, which stands for passion, drive, motivation, and confidence. This is why it remains such a popular brand even among non-athletes.

Local Branding Strategy

When small businesses want to stand apart from the local competition, they engage in local branding. Think of Mumbai’s famous Café Leopold or Bade Miyan. Both are extremely popular food joints, located in the same area- but have built up their own following by defining themselves in sharp contrast to each other.

Apart from these branding strategies, we are seeing other types like media branding or location branding. Media branding applies to media channels and platforms that want to carve out a specific image for themselves and attract a specific crowd. Platforms like TED are a great example of media branding.

On the other hand, location branding works mainly for events that attract a niche audience and are held in one particular location. Think of the popular music and film festivals like Coachella, Sundance, Woodstock, or SXSW- they are location-specific events that have developed a distinct image and appeal to very distinct crowds.

Do you have a brand strategy in place?

How do we know if our company follows a defined brand strategy? Let’s look at the following three cases and identify the status of your brand:

BEST CASE:

• Your customers and prospects know what you deliver, and there is less convincing needed because they already know what you stand for.
• You can charge a premium for your products or services because people know why you are better, and they are willing to pay for it.

NEUTRAL CASE:

• You have not thought about branding yet because you think it’s not needed, but you know you can do a better job if you communicate consistently with the market.
• You are not earning profits, but you are not at a loss either.

WORST CASE:

• You don’t have a brand strategy at all, and the communication between you and your prospects becomes difficult because they don’t know much about your brand.
• What you say, what you do, and what you stand for contradict each other and confuse the customers and the prospects.

If your brand belongs to the neutral or worst case group, then you must prepare yourself and work on a defined brand strategy for your brand.

What are the components of a good brand strategy?

If you are making a brand strategy, make sure that you consider the following points:

1. Your purpose

What does your brand promise your audience? Yes, every brand wants to sustain itself- but what service does it pledge towards its prospects and customers? This is what is laid out in the company’s Mission and Vision statements. After all, your brand needs a good reason to exist that goes beyond scoring profits.

2. The emotions you invoke

People don’t always go by the rationale when making a purchase. They can- but it’s not the reason they stay invested in a brand. That comes from the place of emotions. When your audience can relate to, identify with, and appreciate your brand’s values, its message, and its mission- they become emotionally invested in it. Not only do they become loyal followers, but they also act as your unofficial ambassadors.

A good example of this is the Nike fandom. Nike has a strong emotional appeal, and as a result, it has emerged as one of the most powerful brands in the world. Not only do Nike users keep going back to it, but also act as its staunch defenders in times of crisis- which became apparent during the Colin Kaepernick fallout.

3. Consistent messaging

Brand building 101 states that your brand’s values and central message stay the same through the ages. You have to be consistent across all media and platforms, and find new ways to convey them so that you can build brand loyalty across generations and geographies.

4. Flexibility in approach

Naturally, if you want to survive and grow through changing times, your brand should be malleable in its approach. When your brand strategy has room for change, your brand can be flexible and adapt to new situations. Otherwise, it will stagnate and become irrelevant. Think of brands like HMV. They quickly lost ground to competitors by refusing to compromise on pricing, and with time, nearly vanished.

5. Awarding loyalty

If your brand has followers- you must show your appreciation for them. This is the reason why many brands have loyalty programs. However, you must go beyond that. Offer your loyal customers personalized experiences, ask them for testimonials and feature them on your brand channels. This not only shows them that you appreciate them, but also that they are participants in your brand.

6. Enthusiasm for competition

Finally, your brand strategy should always refer to what your competitors are doing, and have the spirit to go neck to neck with them. A market is a tough place, and if you slack off, your competitors will take the lead. You must stay alert and continuously audit the competition to understand what you need to do better.

A great example of this is Wendy’s, the sassy fast-food brand that is famous for dissing other fast-food brands in funny ways. In the process, Wendy’s has built up a highly engaged social media base.

Your brand strategy should be designed so that it takes all the above factors into consideration.

Now, let us look at a step-by-step guide for building a brand strategy.