Why Branding Matters, Especially If You’re a Midsize Company
When you think of Apple, the word “innovation” will likely pop into your mind. When you’re lacing up your Nike Air Jordans, you’re probably feeling excited to get out on the court and make some jump shots. When you crack open an ice-cold Coca-Cola on a hot summer’s day, life suddenly feels simpler, happier. Chances are, when anyone else types on their Macbook, puts on Air Jordans, or sips a Coke, they’ll experience similar, if not the same, feelings. But this is no coincidence. What creates this powerful congruence is branding, and it’s what sets great companies apart from mediocre ones.
There are many definitions of branding out there, but perhaps the simplest one is “a company’s relationship with its customers.” And like any relationship, it’s not automatic. It’s cultivated, earned, and maintained through consistent and effective strategy. This is how Apple, Nike, and Coca-Cola, three of the most popular and admired companies in the world, have each earned their respective audiences.
The main objective of branding strategy is to differentiate companies from their competitors in the market while creating a cohesive image, message, and experience for all of their consumers. In other words, a strong brand is unique enough to stand out, but consistent enough to be reliable. This is, quite simply, the key to why some companies succeed and some don’t.
But branding doesn’t apply only to large multinational corporations; in fact, midsize companies may have the most to gain.
According to a 2015 report by American Express and Dun & Bradstreet, America’s middle market employs approximately one-third of the private sector workforce and contributes a whopping $6.2 trillion in revenues. However, this vast and nebulous economic space is crowded with companies that are true to their category: middle-of-the-road, unnoteworthy, and operating well below their potential. But with the right branding strategy, any midsize company can break from this mundane pack and propel itself to the top of its category or, with sustained branding, to the next one.
So how do you build your brand exactly?
Seek an Untapped Space in the Market
The first step to defining your brand is understanding your market inside and out. There will be areas that are overcrowded, areas dominated by a few major players, and areas that are virtually untapped, which is where you want to explore further. Once you have determined a niche to focus on, make sure that there is an actual need for your company’s services in this space. Sometimes certain areas of the market are unexplored for a reason.
Understand Your Target Audience
Now that you’ve chosen your corner of the market to settle into, get to know your potential customers. Rather than serving everyone, choose a target audience that you can truly cater to. To effectively serve and cultivate your target audience, it is paramount to thoroughly research their motivations, wants, needs, shopping habits, and any other factors that shape this very crucial demographic today, as well as the trends that are likely to shape them tomorrow. In order to make a compelling case for your company and perform better than your competition, you must get to know your target customers better than they even know themselves.
Define a Unique Position
Once you have chosen your niche, dominate it. How? By defining a strong and unique position within your space. Brand positioning is the process of positioning your brand in the minds of your customers with the goal of creating a distinct and attractive impression that makes your brand stand out in the market.
The first step of your positioning strategy should be to assess what your true expertise is in order to specialize in one outstanding service or product instead of trying to offer multiple services that don’t play to your strengths. But the crux of your strategy will be to communicate your positioning through all of your brand’s touchpoints — the logo, website, store display, advertising, social media, etc. — so that your customers experience a seamless, memorable experience anytime and anywhere they interact with your brand. These touchpoints help to reinforce and reassert your positioning with every customer interaction.
But there’s more. The brands that truly stand out emphasize more than their services in their positioning; they also include their values, such as the importance of community or commitment to challenging norms. These companies understand that consumers choose brands that are a reflection of themselves. As Starbucks CEO Howard Schultz says, “If people believe they share values with a company, they will stay loyal to the brand.”
Let’s take a look at a specific case of strong brand positioning: Naked Juice. Every aspect of the company’s branding reflects its unique positioning, which is high-quality, nutrient-rich 100% juice smoothies made with real fruits and vegetables. From its packaging to its story to its social media, Naked Juice is communicating the same, cohesive message: we’re all about healthy juices for a healthier life. To round out its positioning, Naked Juice also clearly communicates its values. Through the company’s website, customers can learn that it is committed to its sustainability mission with its reNEWabottle® initiative, which lets consumers return their empty juice bottles to be recycled and repurposed into new bottles. Every touchpoint therefore reinforces the brand’s well-defined position.
Have a Purpose
Speaking of missions, while having a unique positioning, strong identity, and clear values are all important, what further separates you from the pack is having a brand purpose. Brand purpose is a company’s reason for existing that goes beyond making a profit. Whether it’s fostering sustainability or feeding the hungry, a brand’s purpose turns its values into actionable strategies. Author Simon Sinek famously said, “People don’t buy what you do, they buy why you do it.”
To explore his theory, let’s look at TOMS. To set itself apart from other shoe brands, the company established a strong purpose: to provide shoes, eyesight, and clean water to those in need through its One for One initiative. TOMS’ customers aren’t just choosing their shoes; they’re choosing to participate in the brand’s mission.
Create a Strong Identity
One of the most integral aspects of your brand is your identity, which is essentially how you want your audience, and the public, to perceive you. Your identity is expressed both visually (through your logo, photographic style, color pallette, patterns, etc.) and verbally (through your slogan, website content, and any other text about your brand). Both are valuable opportunities to further set your brand apart, so be sure to choose aesthetically appealing and unique visual artifacts and engaging, memorable text. To support your brand’s well-defined positioning, it’s imperative that your visual and verbal identities are cohesive and consistent throughout your branding.
Deliver an Unforgettable Experience
Once you have figured out your niche, target audience, positioning, identity, and purpose, it’s time to make good on your promise. Branding does not end with creating an attention-grabbing logo or defining a unique service; one of the most important aspects of your brand is the experience you deliver. If every step before this gets the customer through the door, it’s this crucial step that keeps them coming back. And make sure that your customer gets the same unforgettable experience every time, because that’s how that powerful congruence (all of your customers sharing the same feelings about your brand) is created. But that’s not all — consistency also generates customer loyalty, inspires word-of-mouth advertising, and makes you a leader in your industry.
Going back to the heavyweights — Apple, Nike, and Coca-Cola — it may be difficult to picture any of these companies having to start somewhere, but they all did, and they were able to achieve the status they have now by consistently prioritizing their brand. Major brands are not established overnight. It takes time, dedication, and oftentimes sacrifice (just like any worthy relationship in life), but your company will have a remarkably better chance of reaching those heights if it has a strong brand to stand on.
Image: Flickr user Terry Johnston