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potent brand

2. Check business basics – when a brand deviates from its core brand strengths, selling more or less than its equity might suggest, there may be a structural issue that deserves more investigation. Pricing may be out of sync with buyer expectations or distribution may be limiting sales, for example.

Strong brands influence shareholder value

What next?

Strong brands are built on the basis of sound business practice and a great brand experience. When solid fundamentals are accompanied by a clear, compelling brand proposition and a strong sense of momentum, a brand is likely to increase both sales and shareholder value.

Brands are valuable to companies because they are valuable to consumers. People will pay more for a branded product than a generic one, and more for a favoured brand than alternatives. It seems obvious, then, that a brand that has forged a strong and enduring relationship with consumers should provide a financial advantage to the company.

The brands in the upper-left quadrant tend to be more volatile than the brands on the right-hand side of the map. Many do gain share, but a fair number decline. The brands in this region, which include the likes of Pret A Manger, H&M, Zara and Tom Tom, run the risk that, as they struggle to grow their footprint, they may move away from the branding formula that made them successful. These brands are also vulnerable to competitive actions, such as aggressive pricing and the introduction of ‘me-too’ product offerings.

In comparing these metrics across the groups, you can see that brands in the upper-right quadrant tend to dominate their product categories, with high market shares, good growth prospects and low volatility. Brands such as Coke, Nike and McDonald’s are included in this group. By contrast, brands in the lower-right quadrant, which have strong presence but weaker voltage, tend to lose share year on year. The size of their market shares helps to reduce their volatility, but these brands are less likely to grow and are actually much more likely to lose share than their stronger counterparts. Brands in this quadrant are often described as being past their prime.

A brand is strong when it condenses the peak performances of a company and makes them tangible over a long period of time, and credibly presents its uniqueness at all brand touchpoints. For instance, BMW conveys “Joy (of Driving)” in every interaction – whether in the car itself, on the web site, or in the company's own BMW museum.

Strong brands have clear brand core values, an unequivocal positioning, and a long-term brand strategy. Consistent brand management with the help of brand rules ensures that the brand strategy is consistently applied in operative business. This helps to prevent a brand from overstepping its credibility limits.

Strong brands are therefore desirable and highly attractive. This has diverse positive effects on corporate success:

A strong brand always has an impact internally as well as externally. It is not only the foundation for success in marketing and communication – rather, it is often a powerful and enthusiastic leadership and management instrument, which provides a clear action framework with defined brand limits, both internally and externally.

A brand strategy always has a content component and a style component that both have to be implemented so that the brand can always be clearly recognized by its brand messages and its brand style. In short: Strong brands give consumers a clear image of the brand and what it stands for.

No business can thrive without a brand. But anything worth doing is never easy. This book has been created to make the complex as simple as possible, so that anyone can dive in and start building a brand.

The short chapters are very much in a jot format, packed with straight-to-the-point advice and views on all things ‘brand’. The intention is for business owners, entrepreneurs, investors and marketers to pick this book up and finish it in one or two evenings. Then you can jump back into certain chapters whenever required.

All royalties from the sale of this book go directly to our chosen charity: Holibobs .

Holibobs are dedicated to helping children diagnosed with Cancer and Leukemia spend precious time as a family through the provision of short breaks and holidays.

Holibobs are dedicated to helping children diagnosed with Cancer and Leukemia spend precious time as a family through the provision of short breaks and holidays.