/ Christopher Vickers/
 

Content Writing

Essentials of Effective Brand Strategy

Brand strategy is a plan organizations develop to help articulate how it (the company, its products, services, employees, executives etc.) aims to be perceived. More than a logo, tagline or ads, well-built brands are part of a strategic foundation which can help guide business decisions and yes, shape customer and employee perception and experience.

Unlike promotional tactics which focus on short-term goals like digital KPIs, brand strategy is a blueprint for growth, establishing a clear positioning and identity. One component of a well-defined brand strategy answers the fundamental question "What makes us relevant, distinct and compelling to our target audience?" In today's competitive environment where customers have multiple choices, a clear brand strategy is essential for long term success, especially for consumer-facing products and services.

The Value of Brand Strategy

Brand strategy delivers value to organizations of all kinds. Below are some ways it adds value to organizations of different levels of size and maturity.

Start-ups For start-ups brand strategy establishes a unique position and identity. It can help attract early adopters and investors with elements including a compelling brand story and value proposition. A strong brand helps start-ups build interest and engagement.

Small to Medium-Sized Enterprises (SMEs) SMEs leverage brand strategy to distinguish themselves from competitors, increase recognition, trust and engagement with sharper messaging.

Large Corporations (Fortune 500) Large corporations rely on brand strategy to maintain relevance in changing markets, and evolve and enhance reputation. It can help brands appeal to customers abroad and help define exceptional customer experience.

The Process of Developing Brand Strategy

Research and Analysis Developing a brand strategy requires thorough research and analysis, including:

  • Market Research - To understand market trends, customer needs and the competitive landscape. AI-driven market research tools like MarketMuse can analyze vast amounts of data to identify emerging trends and customer preferences, improving efficiency and accuracy.

  • Customer research - To identify target audiences, perceptions, behaviors, motivations, challenges and goals. Tools like Qualtrics XM can gather and analyze customer feedback across multiple channels, providing deep insights into customer sentiment and needs, allowing for a more refined understanding of prospects and customers.

  • Competitive Analysis - To evaluate competitors' strengths, weaknesses, positioning, and brand strategies. In the digital realm for example, Semrush offers tools that enable identifying competitors' strategies (especially SEO and SEM) track online performance and uncover opportunities.

  • Company / Internal - To review the organization’s mission, vision, values, culture, and capabilities and how it stacks up against competitors. This helps ensure that the brand strategy aligns with the company's core identity and strengths and mitigates threats and weaknesses.

Defining Brand Identity

Typically involves articulating the core elements that make a brand relevant and compelling to customers and distinct among competitors. Components can include:

  • Brand Purpose - Articulates the reason for the brand's existence, beyond profit. Why the brand matters to customers, and employees — especially employees on the front line in service-based businesses.

  • Brand Vision - Describes the desired future state of the brand. Where the organization aspires to be longer term.

  • Brand Values - Establishes guiding principles for brand (e.g., organizational, employee, customer etc.) behavior and decision-making. Guardrails for how the brand does and does not behave.

  • Brand Personality - Defines characteristics of the brand, which can personify it. For example, innovative (Salesforce), trustworthy (Bank of America), or adventurous (Jeep).

  • Brand Positioning - Is a unique and compelling position in a market (e.g., product category, or classification within a category) relative to competitors. How the brand is distinct and attractive to customers on relevant dimensions.

Communicating Brand Identity

Effective brand expression communicates a brand's value proposition clearly and consistently. Components can include:

  • Core Message - A concise statement that communicates the brand’s unique value proposition. This should be easy to understand and remember.

  • Brand Story - A narrative that brings the brand to life and resonates with the target audience. For example, its founder’s origin story, when and how the ‘a-ha’ i.e. light bulb moment occurred, early challenges, customers, failures and successes through the years, the founder’s principles and values which still in practice today, etc. Should be authentic and engaging.

  • Tone of Voice - A consistent communication style of the brand. Reflects the brand’s personality and values.

Creating Brand Guidelines (aka Brand Styleguide)

These should be developed to guide consistent use of brand elements across touchpoints and experiences.

  • Visual Identity - Typically logo, color palette, type styles and imagery for all use types and conditions. These elements should be recognizable and consistent.

  • Verbal Identity - The brand's messaging, tone of voice and brand story.

  • Application - Clear specific direction on how brand elements should (and should not) appear and be used in various media including websites, social media, broadcast, collateral, etc.

Implementing Brand Strategy, From Vision to Action

Implementing a brand strategy requires collaboration, alignment and consistent execution across the organization. This typically includes:

  • Internal Alignment - Communicating the brand strategy to employees at every level and training them to embrace and “live” the brand values, ensuring that everyone understands their role in delivering on the brand promise.

  • External Communication - Integrates brand components into all corporate communications, including customers, vendors, partners and other types of stakeholders. Ensures a consistent brand experience across all touchpoints including digital, employees, physical locations, etc.

  • Product and Service Innovation - Aligns new product development with the brand strategy. Enhances existing products and services to reinforce the brand promise and meet evolving customer needs.

  • Partnerships and Collaborations - Selecting partners that align with the brand values and enhance brand credibility. Collaborate on initiatives that extend the brand’s reach and impact.

Measuring Brand Strategy Effectiveness

Means identifying and measuring leading and lagging performance indicators, relative to competitors.

  • Brand Recognition - Tracking awareness, recall etc. through market research, social media sentiment, ecommerce and website analytics. Digital analytics can provide insight into user behavior, demographics and more.

  • Brand Perception - Measures brand image, likability, admiration, trust, relevance and other important attributes, relative to competitors, through market research. Understanding how prospects and customers perceive the brand and evolving it is crucial to maintaining and growing relevance, engagement, consideration etc.

  • Customer Loyalty - Assesses customer satisfaction, retention, and advocacy through online channel feedback, including Net Promoter Scores (NPS), and rating and ranking companies like JD Power, Forrester, Gartner and more. Tools like Delighted can automate NPS surveys and provide real-time feedback on customer satisfaction and loyalty, enabling businesses to promptly address customer concerns.

  • Market Share - Monitors changes in market rank based on dollar and volume performance vs. competitors. Changes can be linked to a variety of factors, including product quality, price, availability and how well a brand resonates with customers.

  • Financial Performance - Typically for larger more mature organizations, brand strategy can be linked to revenue growth, profitability and shareholder value. A successful brand strategy should contribute to positive financial outcomes.

Case Studies - Real-World Examples of Effective Brand Strategy

Building a Brand from Scratch: Warby Parker In 2010 Warby Parker (WB) disrupted the eyewear industry by offering stylish, affordable glasses online, directly to consumers (DTC). The company’s brand strategy focused on providing high-quality eyewear at a reasonable price, coupled with a social mission like TOMS shoes - for every pair of glasses purchased a pair is donated to someone in need. The DTC model cut out middlemen (e.g., Walmart, Target, Lenscrafters) and offered a personalized online shopping experience. WB also emphasized transparency and social responsibility in their marketing. The company disrupted the eyewear industry, achieving rapid growth and building a loyal customer base. In part, WP’s success was due to its unique value proposition and clear brand identity and purpose, including a commitment to social impact.

Evolving an Existing Brand: Domino's Pizza Domino's faced significant challenges in the late 2000s due to negative perceptions of its pizza quality. The company embarked on a radical transformation, acknowledging its flaws and committing to improving its pizza quality and customer experience. It did this in part by launching a bold albeit risky ad campaign in which the company admitted its pizza wasn't good enough, and promising to make it better. They also introduced new recipes and improved their online ordering system. The company realized a dramatic turnaround in brand perception, sales and revenue. Their willingness to admit their shortcomings and commit to improvement resonated with customers, leading to increased sales and market share.

The Future of Brand Strategy

Technology, customer preferences, companies and competitors are constantly evolving, impacting how brand strategy is developed and implemented. Below are some more recent trends and innovation.

  • Generative Ai - Is revolutionizing every aspect of brand strategy, enabling general market and customer research, competitive and SWOT analysis, brand identity generation and more. AI-powered tools like Albert AI can automate and optimize ad campaigns, improving targeting and ROI.

  • Social Media and Influencer Marketing - Continue to play a crucial role in brand building. Brands are leveraging social platforms and influencers of every kind to engage with customers, build communities and amplify messaging.

  • Sustainability and Social Responsibility - Are increasingly important to consumers. Brands are aligning their values with environmental and social causes, demonstrating a commitment to making a positive impact.

  • The Evolving Role of Brand Purpose - Brand purpose is becoming a central driver of customer engagement and loyalty. Brands that articulate a clear purpose beyond profit are more likely to attract and retain customers who share their values.

The Enduring Power of Brand

A well-defined brand strategy is an essential component of long-term organizational success. In continuously evolving markets, strong brand strategy can provide a foundation for adapting to new challenges and opportunities. By understanding a market, customers, competitors and more, defining a clear brand, implementing a strategy consistently and measuring its effectiveness, organizations can achieve growth and lasting value.