Driving Profitable Growth Through Your Brand

Distinguish Yourself From Your Competitors;
Be Rewarded By Your Customers.

Most people think of "branding" as a luxury only large corporations can afford. But small companies who want to become big companies should pay close attention to branding. It's an amazing concept. When exercised properly, it allows you to break the rules of business.

Brands are among a company's most valuable assets and smart companies today realize that capitalizing on their brands is important. Doing so can help you achieve growth objectives more quickly and more profitably. Having the name brand in a product category means that you can force the hand of your competitors. You can leverage your company's brands into a valuable asset that will let you charge a premium for your products and services and still retain market leadership.

While it may be easy to articulate revenue goals, developing a brand identity requires a different thinking process. In his book Brand Asset Management, Scott Davis suggests a four-phase process:

Phase 1. Developing a brand vision
The vision you develop for your brand must be linked to your corporate vision and must fill a financial growth gap. Senior management must share the vision you create.

Phase 2. Determining your brand picture
It's important to view your brand as the customer views it, and understand what your brand stands for, why customers choose your brand over others, and what additional needs and wants your brand could fill. What does your brand promise customers and how do you deliver on those promises?

Phase 3. Developing a brand asset management strategy
Once you have developed your Brand Vision and Brand Picture, you need to create a brand asset management strategy. Your strategy should include how to position your brand, how to expand into new areas, when to charge a premium price, and how to keep your brand fresh and new.

Phase 4. Supporting a brand asset management culture
The purpose of this phase is to determine how to get your company to rally around the brand as an asset and make sure the strategies you recommend are implemented and measured. Specifically, you'll measure your return on brand investment (ROBI) and establish a brand-based culture that affects the roles of every functional area of your company's reward and measurements systems.

Once you've determined who your customers are and what they want, you are ready to position your brand for success. The real challenge is transitioning your communication and culture from a features and functions orientation to the customer's desired outcome - the customer experience. Remember that a strong position is customer-driven. Women don't buy make-up; they buy hope. Parents don't buy car seats; they buy safety and peace-of-mind. If you melt down a Rolex, there would probably only be a few hundred dollars worth of gold. Yet, customers gladly pay thousands of dollars for a perceived touch of class. What really matters is what the customer believes, not what management thinks.

Here are a few examples of company brands positioned for success.

• Disney = Family Fun Entertainment
• Nordstrom's = Highest Level of Retail Service
• Saturn = Your Car Company
• FedEx = Guaranteed Overnight Delivery
• Wal-Mart = Low Prices and Good Values
• Hallmark = Caring Shared
• McDonald's = Food and Fun
• Nike = Performance

Implicit in this list is a high level of trust in the brand name. The essence of a good brand is that people trust it.

Same Industry Positioning
I often hear the complaint that products are becoming commodities. That's no excuse to neglect your customer value proposition. Books are an example of a commodity, which we can all relate to, yet companies within the same industry have been able to differentiate themselves. Borders targets those looking for a community meeting place. Crown Books appeals to price-sensitive shoppers, who want discounts and shop in strip malls. It's interesting to note that they're having trouble, since everyone discounts these days. Barnes & Noble targets those looking for a quiet gathering place and provides a library-like setting. Amazon targets Internet shoppers, who want personalized online service.

Define your target market
Start developing your brand's position by defining the target market you are pursuing, the business your company is in or the industry it competes in, and by stating the key point of difference and key benefits of your brand in the market. To get to this point, think about how your customers describe their experience with your company. What are the critical issues that keep them awake at night? What are the business reasons driving those critical issues? What is your customer's vision? What capabilities do they need to accomplish their business objectives?

Customer connection
A brand is the collective experience of your key constituencies - customers, suppliers, investors, and employees - and is defined more by deeds than by words. It's what your company stands for and how it behaves with each of these groups. That's why developing a brand-customer relationship is so important - either you make the customer experience or it gets made without you. At every touch point, create a meaningful relationship and lasting competitive advantage.