Do you know how big brands across the world make a particular image for themselves in the mind and soul of their customers? The brand strategy of the big brands empowers them to connect with their audiences in the most sustainable, loyal, and profitable manner possible.
We will be unraveling the hidden layers of brand strategy in this post, so you can understand how you can be able to make a results-driven strategy for your brand.
First thing first, let us understand why brand strategies are considered so important in today’s time.
Why is Brand Strategy Important for Businesses?
When you don’t have a proper vision for the company, then there is a chance that you might end up having to face some losses, or worse, just lose your business.
Ineffective marketing inconsistent messaging and ill-formed decisions for the business are some of the most common reasons why the businesses these days aren’t able to taste the fruit of success.
You might have a successful brand and all, but then it doesn’t mean that you shouldn’t stay on guard. Every single decision that is made by your company is going to have a direct effect on this brand of yours.
So, what is the solution to all of these problems that we have listed just above?
With the help of a proper and effective brand strategy, all of these problems can be solved in the easiest of the ways.
We are going to have a little discussion about brand strategy and how it has been affecting the business these days.
5 Steps to make an Effective Brand Strategy
1. Know What is Brand Strategy
The brand strategy is something that your team and you will decide for the future of your company.
The plans that any business owner makes with the team to create, mold, and market the brand are known to be the brand strategy, and it is one of the most important things that a business needs to take care of to have the best results for their brands and businesses.
To be completely simple, a brand strategy is simply an articulation of the plans that you have for your brand in the future times. You will be aspiring for the brand, creating a particular purpose for it and then communicating that purpose to the rest of the people in the industry?
Don’t know what we are at? Well, it is generally a plan that you make to ascertain the success of your company. So, by now, you must have understood that brand strategy is one of the most important tools for any business to use.
So, why not incorporate a particular brand strategy for your business? We are going to help you with that. However, before we move into the important details, let us have a look at why exactly is this brand strategy so important for the businesses and the companies out there.
2. Learn how a Brand Strategy establishes a connection between Customers & Brands
A brand strategy is a plan that you make to have a connection between the company as well as the people that your company serves.
Along with that you also aspire to please the people that work for the company and those who are in support of the company too.
These are some of the most important relationships that a business owner needs to take care of, and the person needs to be completely intentional to fulfill that part.
With the change of times, there has been a significant amount of change which has been made into a relationship between the customer and the brand.
There is no longer a transactional relationship between the two because there is a presence of an emotional connection as well.
The people of today value principles and beliefs more than anything else.
There are 80% of the people who are customers and believe that the purchases they are making are based on the values of a particular brand.
So, if the brands want to succeed in the best way, then they need to attract the customers and then have some genuine forms of relationship with them. There is a need for transparency as well as authenticity in the relationship between a customer and a brand.
Only then, the business will be able to gain the trust of the people and as a result, will have more and more success as a whole.
However, in case a brand doesn’t realize the importance of communicating with the people and providing them with a relationship base, there is no doubt that the company will incur losses as people will not want to purchase their products or services.
This is one of the reasons why having a proper strategy matters a lot in this day and age.
But having a proper brand strategy doesn’t just help with the relationship between a customer and the brand. You will also be able to build a better business with the help of a strategy.
About 85% of the business in total have experienced amazing growth and popularity after they understood the importance of having a strategy for their business.
The bottom line here is that with the assistance of a brand strategy, the business will be able to have better relationships with not just the consumers but the employees as well. This will ultimately result in the growth of the business.
So, these are some of the main reasons why the creation of a brand strategy is one of the most important things that a brand has to look into. There is no doubt that after reading this, you want to create a brand strategy of your own. Well, we are going to help you with that too.
Let us move on to the next part, and then you will have an idea of what we are talking about.
3. Know Components Of An Effective Brand Strategy
Now that you know a bit about the importance of the brand strategy, let us move into the other details which might be of interest to you.
To create a brand strategy is not an easy thing, to be honest. There are certain factors that you need to look into so that you can have the best results for your business. We are going to provide a list of these factors so that you can have a better understanding of the subject here.
One of the most important things that you need to take care of in a business is the purpose that you have. There are so many promises that the brands have to make to the people. So, it is not a deciding factor when we talk about uniqueness.
But the purpose of the business surely has a very important role to play in that. We understand that it is important for the business to make certain promises to the people when they want to make sure that they trust the brand completely.
However, the purpose is one of the most specific things that you need to focus on. This is something that would make you different from the competitors that you have. So, how does one define the purpose that they have for their business?
Well, the business could either be functional or intentional. The functional business would put the main focus on the success of the business, and by success, we mean commercial factors. The purpose of such a business would be just to make some money and be rich.
However, in the case of an intentional business, the company would focus more on doing good deeds and earning money from it. So, it is important to recognize the purpose of the business to make a proper strategy for the brand.
One of the main things to achieve consistency in the business is to avoid talking about the topics which would not relate the brand enhancement.
You need to make sure that your business is consistent with the message that it is trying to send the people so that you can see the results in the performance of the business.
This is one of the most important things that you have to keep in mind when you have to create a proper strategy for the business. It doesn’t matter what actions you do for the business until and unless it has a role to play in maintaining the consistency.
There is no doubt that customers wouldn’t always be rational about the purchases that they make. We have already established that most people take into account the values of the brand before they make a purchase.
So, why wouldn’t your brand give these values some importance? It will be a help to the brand if you factor in this concept when you are creating your brand strategy in the best way.
The flexibility of a company is another one of the most important things that you need to focus on. The times are certainly changing a lot, and to get with the times, you need to have some flexible plans which would make your company a big success.
So, the one thing that you can do in here is to have a creative mindset so that you can achieve the results that you wanted to for your company.
4. Make the right Strategy for Defining your Brand
This is very important for you to know what exactly your brand represents, what is the USP, who your target audiences are, and accordingly, your market presence should define your unique characteristics.
Your logo, advertisements, office interiors and exteriors, employee management, social media presence, your business cards, dresses of your employee, customer services, etc. will define your brand.
So your brand strategy should always pay attention to these details.
5. Focus on your Customers and Know the Barriers
The success of your business is always based on how your customers think about you. And as I had said earlier, the relationship between a brand and its customers decide the effectiveness of any business.
You should also do marketing and competitor analysis to know about the barriers that can impede your growth as a brand in the market.
Paying attention to all these will enable you to make a brand strategy that is conversion driven.
The Multi-Brand Strategy Explained
A Multi Brand strategy is defined as the approach of the company to market several similar and competitive brands of the same company under the guise of different brand names. The idea of Multi-brand strategy is to restrict or end the competition and increase the market share.
Relatively larger corporations run Multi-Brand Strategy since they have different brands running in the market same time. It is ensured that there is no internal competition amongst them and they are positioned in such a way that they do not cross each other and appeal to different segments of the market.
There are primarily three types of Multi-brand classified, although there may be variations industry to industry. These types are based on the approach utilized by the companies to distinguish their brands to the customers.
1) Separation by Brand Identity
When the only thing that differentiates products from competitors is the brand image or identity.
For example, FedEx has various services like FedEx Premium, FedEx Cargo, FedEx Lite, FedEx Office etc. here the differentiation is with respect to the function of the brand identity and the brand name is kept the same.
2) Separation is done by distinct Brand Names
Here the separation is done by distinct brand names but the parent company supports by keeping the parent name.
For example Vodafone Connect, Vodafone Play, Vodafone Pay, Vodafone Plus etc.
3) No relation to Parent brand
In this case, the brand names are kept separate and the audience has no clue as to which brand belongs to the parent company and which doesn’t.
For example, Instagram and WhatsApp belong to Facebook but there is nowhere mention of the latter on the former two.
Importance of Multi-Brand Strategy
- Leadership : The ultimate purpose of any firm in applying a multi brand strategy is to gain leadership and be a market leader in the respective segment. This will lead for the firm to become a gold standard in that specific category as compared to other competitors.
- Serving needs : The more ethical purpose of that would be to serve every need of every customer. The brand wants to be one stop for all kinds of the needs and serve its purpose in the market. For example Different brands of Soap of Unilever like Cif, Surf, Rin, Robin etc.
- Effective competition : A large corporation will have numerous competitors and to compete effectively, a multi brand strategy is a must. This establishes the value and vastness of the company in the market amongst the customers.
Advantages of Multi-Brand Strategy
- Having Multiple brands helps the companies to establish its superiority over the markets and over the competition. This increases the shelf space of the company and less for the competition which in turn results in a better sale, better brand visibility, and ultimately better profit.
- The multi Brand strategy is very useful for the brand switchers who keep on changing brands to try different products. Having a large product line and multi-brand gives a very high chance that even after switching the brands, the customer is still associated with the company.
- The company having multi brands can promote a healthy internal competition between managers so as to increase the performance.
- Successes of initial business ensure that the company can now venture into developing another brand with the profits of the first brand or through the way of franchising.
- More alternatives for customers is another advantage of following and implementing the Multi-brand strategy. The customers can change themselves according to the time and their taste.
Disadvantages of Multi-brand Strategy :
- A major problem of this strategy is Cannibalization between similar brands if the company does not differentiate into the brands correctly causing confusion in customers. The cannibalization is a common problem with large MNCs with multiple brands. Often companies have to either discontinue or modify the product in order for both to survive.
- Branding plays a very important role in this strategy. Ineffective branding will dilute the separating factor amongst brands and lead to confusion. The sales of either or both may drop down, making the company adopt either a new strategy or changing the product altogether.
- Constant overlapping of the brands may confuse the customers and eventually, they may end up shifting outside the brand umbrella.
- A major disadvantage of a multi-brand strategy is that the company’s image may become that of not customer oriented but profit oriented. This can damage the reputation of the company in long run.
Examples of Multi-brands include :
Adobe: Adobe Photoshop, Adobe Lightroom, Adobe Stock, Adobe Illustrator
Google: Google Cloud, Google Drive, Google Cloud hosting services
Wrapping it up!
We hope that this article was a bit helpful to you in understanding the concept of brand strategy in the best way.
What do you consider the most important factor of a successful brand strategy? Share with us in the comments below.