Today's companies increasingly realise that a strong brand is one of the most important factors for long-term success. According to research by Kantar, high-value brands can increase a company's profits by up to 3 times the average market growth. Bain & Company's research shows that increasing customer retention by just 5% can lead to an increase in profits of up to 95%. These figures clearly demonstrate the importance of a thoughtful and well-implemented brand strategy.
What is a brand strategy?
A brand strategy is a comprehensive plan of activities to shape a company's unique identity and position in the market. It encompasses all aspects of communication with customers, from the visual identity to the marketing message and values that the brand represents. An effective brand strategy goes beyond a simple logo or slogan. It is the main pillar on which relationships with customers, employees and business partners are built. It also defines how a company wants to be perceived and what emotions it wants to evoke in its audience.
Brand strategy differs from business strategy. While the latter focuses on financial and operational goals, brand strategy focuses on building long-term relationships and customer loyalty. Both strategies should be harmonised to jointly contribute to the success of the company.
Why invest in a brand strategy?
Investing in a brand strategy brings many benefits to a company. First and foremost, it helps to build a strong position in the market and stand out from the competition. A well-designed brand strategy translates into increased customer loyalty, which in turn leads to stable revenues and business growth opportunities. Research by Havas Group has shown that brands perceived as 'meaningful' to consumers perform 206% better financially than those without a clear strategy.
An example of a brand that has succeeded with its strategy is Apple. The company has consistently built an image of innovation, exclusivity and quality. This allows it to afford higher prices for its products, and customers are willing to accept them because of the value they place on the brand.
Another example is Nikewhose slogan 'Just Do It' has become an integral part of popular culture. The Nike brand does not just sell shoes or sportswear, but promotes an active lifestyle and motivation to achieve goals. The strategy has allowed the company to become one of the most recognisable brands in the world.
How to create an effective brand strategy?
- Brand analysis and definition of the UVP (Unique Value Proposition) - Start with a thorough analysis of your company. Identify its strengths, values and what makes it unique. Based on this, formulate a UVP - a unique value proposition that differentiates you from your competitors. An example of an effective UVP is the brand proposition Domino's Pizza: "Fresh, hot pizza delivered to your door in 30 minutes or less. Guaranteed." The promise clearly communicates the value to the customer and sets the brand apart from the competition.
- Identification of the target group - Identify who your ideal customers are. Learn about their needs, wants and pain points. The better you understand your target group, the more effectively you can reach them with the right message.
- Competition survey - Analyse the strategies of competing brands. Identify their strengths and weaknesses. This will help you find a niche market and develop a strategy that will make your brand stand out.
- Development of visual identity elements - Create a consistent visual identity system that reflects your brand values and personality. This includes the logo, colour scheme, typography and other graphic elements.
- Communication planning - Develop a brand communication strategy, taking into account the different channels to reach customers. The message should be consistent across all customer touchpoints - from advertising to customer service.
- Implementation and monitoring - Implement the brand strategy throughout the organisation. Ensure that all employees understand and live the brand values. Regularly monitor results and be ready to make adjustments if necessary.
Inspiring examples of brand strategy
Apple - synonymous with innovation and style
Apple has always been driven by a clear vision - to offer products that are functional but also aesthetically pleasing and technologically groundbreaking. The key to their success is building an ecosystem where every device - from iPhone to MacBook - works together seamlessly and intuitively. But Apple doesn't just sell devices. It is a brand that creates a lifestyle in which the user feels part of a prestigious community. Rather than technical specifications, Apple's adverts showcase the emotions that can be experienced through their products. This strategy has meant that users often feel connected to the brand on an emotional rather than just a practical level.
Coca-Cola - emotions that bridge generations
Coca-Cola has remained a symbol of joy, togetherness and universal values for more than a century. The 'Share a Coke' campaign, in which bottles were personalised with names, generated global interest and inspired people to share joy. Coca-Cola's Christmas ads have become part of popular culture, reinforcing the brand's associations with moments of closeness and celebration. At the same time, the company is constantly refreshing its approach to better reach the younger generation, combining its rich history with modern marketing.
Tesla - a revolution in motion
Tesla is a brand that is shaping the future of motoring. At the heart of their strategy is a vision of technological innovation. Elon Musk's direct communication with customers - mainly through social media - makes the brand more authentic and human. Tesla avoids traditional showrooms, relying instead on online sales. For customers, Tesla is a manifesto of values and belonging to a community of pioneers.
Patagonia - activism as the foundation of strategy
Patagonia is proof that values and business can go hand in hand. The brand builds its identity around environmental activism. This can be seen in their campaigns encouraging customers to repair worn-out products instead of buying new ones. These actions may seem to go against business logic, but they reinforce the loyalty of customers who identify with the brand's values. Patagonia is not afraid to talk about environmental challenges and encourages action for the planet.
Airbnb - a home anywhere
Airbnb has changed the way people think about travel by offering more than just places to sleep. The brand has focused on the idea of creating authentic experiences and building a sense of belonging. Through user-generated content, Airbnb has gained a credibility that traditional hotels often lack.
Creating an effective brand strategy takes time, effort and consistency. However, this investment can pay huge dividends in terms of increased customer loyalty, stronger market positioning and improved financial performance. Your brand strategy should also evolve with your business and the changing needs of your customers. Regularly reviewing and adjusting your strategy will help you maintain a strong market position and build lasting relationships with your customers.