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Cover of 'A new brand world'

A new brand world

Scott Bedbury

8 principles for achieving brand leadership in the 21st century

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Description

Brand values are back in focus as companies aim to differentiate themselves and build trust with customers. Clearly defined values act as an organizing framework, guiding business decisions and accountability.

They communicate what a company stands for, fostering emotional connections over time. As brands scrutinized for their global impact grow in value, building a strong brand remains a key priority. Companies that establish meaningful brand values can stand out amidst competition and shifting consumer expectations.

Brand building brings out the best in businesses as they aim to be seen, heard, and respected. Values-driven brands that consumers relate with will be well positioned to succeed in the years ahead.

Table of contents

01

Principle #1 – focus on relevance and resonance, not just awareness.

Branding is more than just creating awareness or recognition. It's about forging emotional connections and building relationships with consumers. A brand encompasses the entire experience a customer has with a product or company. Everything from award-winning ads to product failures, receptionists to hold music shapes how people perceive a brand. While companies cannot fully control a brand, they can guide it through consistent messaging, high-quality products and services, and positive interactions.

In the past, many believed brand awareness alone was the key to success. However, awareness does not guarantee differentiation or loyalty. Good brands make relevant, meaningful connections with their customers. They stay attuned to changing consumer needs and preferences. Brands can achieve this by providing extensive customization options, allowing customers to tailor products to their exact specifications. Brands like Intel and Nike consistently push boundaries, making existing products obsolete with ever-improving new versions. Great brands continually reinvent themselves just as consumer tastes evolve. They refresh messaging, offerings, and experiences so they remain deeply aligned with target audiences. Stellar brands craft cohesive yet flexible brand narratives with the customer at the heart of each new chapter.

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02

Principle #2 – know the past to grow the future

A brand's essence and ethos are fundamental to its identity, resonating with core customers, potential customers, and employees. This "mantra" is instrumental in brand growth, guiding the development of advertising and marketing strategies that reflect the brand's values and future aspirations.

Consider the mantras of some renowned brands. Nike's mantra, "Authentic athletic performance," emphasizes its commitment to integrity and the sporting ideal. All Nike products are designed for athletic performance, meeting the demands of top athletes. Disney's mantra, "Fun family entertainment," reflects its focus on delivering wholesome, reliable, and age-appropriate family fun experiences. Starbucks' mantra, "Rewarding everyday moments," encapsulates its success in transforming the coffee break into a memorable experience that enhances customers' lives. Chrysler, with its mantra, "An engineering company," has returned to its roots, producing cars that people want to drive, exemplified by the Dodge Viper. Apple Computer's mantra, "Daring to be different," underscores its reputation as an innovative industry leader, creating products that captivate consumers.

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03

Principle #3 – bigger isn't necessarily better

Growing a brand is a delicate balance between risk and reward, with the ultimate goal being controlled, brand-positive growth that strengthens brand equity. One strategy is co-branding or forming strategic alliances with complementary brands. This can expand reach and access to new customers, but it requires careful evaluation of potential partners, brand control, success measurement, and an exit plan if necessary.

Brand extensions into new segments or niches can also drive growth by leveraging existing brand equity. However, this strategy risks overextending if not managed prudently. The key is to retain control and avoid dilution of core brand values.

Another approach is expanding into new distribution channels, which can widen customer access points and enable innovative offerings. For example, Starbucks partnered with Pepsi to produce bottled Frappuccinos, leveraging each company's strengths.

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04

Principle #4 – re­la­tion­ships are the heart of great brands

Great brands build emotional connections with customers by appealing to fundamental human needs and desires. This is similar to how movies tap into powerful emotions. As Abraham Maslow outlined in his hierarchy of needs, people have innate emotional drivers related to needs like security, belonging, esteem, and self-actualization. Brands that link themselves to these needs can form strong emotional bonds that foster loyalty and advocacy.

For instance, Volvo connects car safety to the human need for security, showcasing advanced safety features to make owners feel protected. Kodak's nostalgic advertising highlights family connections and special moments, linking its brand to the human need to belong. BMW associates its vehicles with status and wealth, appealing to the esteem one gets from driving an ultimate driving machine. The most successful emotional branding strategies connect authentically to a brand's values and positioning, while superficial celebrity endorsements or gimmicky promotions usually fall flat.

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05

Principle #5 – everything matters in building a brand

Brands are often likened to sponges, absorbing and reflecting everything in their environment, both positive and negative. This analogy underscores the importance for companies to always present their brands in the best light, adopting the role of "brand environmentalists" who take responsibility for their brand's image across all consumer touchpoints. In the past, retailers played a significant role in this at the point of sale, but today, manufacturers seek closer control over product details and brand messaging. Effective brand environmentalists influence customer interactions, guide brand growth, ensure brand integrity, seek improvement opportunities, and convey compelling brand stories.

For example, Nike created Nike Town retail showrooms to directly showcase its brand essence to shoppers. Shell differentiated itself in the gasoline market by enhancing station restroom quality, attracting more families. The Gap transitioned from a record store to a leading apparel brand by first selling Levi's, then outsourcing production, and eventually manufacturing its own branded goods. IBM unified its messaging with the "Solutions for a small planet" tagline, and Starbucks reinvented the coffeehouse with a consistent global design that elevated its brand while reducing costs through an efficient build-out toolkit.

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06

Principle #6 – people give brands life and sus­tain­abil­i­ty

Building a strong brand is akin to raising children; there are no shortcuts. Brands reflect the values of the people who drive the company, and it's the people who bring a brand to life, manage, and sustain it. Brands evolve over time, absorbing the energy of the people within the organization. Therefore, proactive brand management is crucial to prevent unexpected detours.

The question arises: who should manage the brand? Front line employees who interact with customers and personify the brand, or the CEO who represents the brand to investors and media? However, CEOs have many other responsibilities, and front line employees may not be consistent due to turnover.

A viable solution is the stewardship of a Chief Brand Officer (CBO). Reporting directly to the CEO, the CBO champions, protects, and grows the brand internally and externally. They approve any organization proposal impacting the brand, including advertising, positioning, corporate design, marketing, and analysis. The CBO takes a long-term perspective, forecasting where business initiatives will take the brand in the future. They become the brand's conscience, ensuring everyone understands what builds the brand and what does not.

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07

Principle #7 – principles over profits defines great brands

As brands grow in success and scale, they inevitably face increased scrutiny. The larger a business becomes, the more it is perceived as the industry's "Goliath," attracting criticism for every action. To counteract this, successful brands must proactively leverage their size and influence to improve the quality of life for those interacting with the company, building a reservoir of goodwill with stakeholders before a crisis arises.

Increased scale and market dominance come with increased accountability. Brands must anticipate and prepare for intensified criticism by implementing proactive social responsibility programs. These could include joining coalitions against human rights violations, seeking certification from nonprofit watchdog groups focused on global societal issues, developing technological initiatives to address environmental problems, and avoiding deceptive practices. These initiatives convey that bigger does not necessarily mean "bad" and that authenticity is paramount.

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08

Principle #8 – relevance, simplicity and humanity distinguish brands

Building an enduring brand requires a steadfast commitment to simplicity, patience, relevance, direct consumer engagement, human qualities, strategic omnipresence, and innovation. Simplicity ensures that brands remain straightforward and focused, offering superior experiences that resonate deeply with customers. Patience is crucial, as brand building is a gradual process that cannot be rushed for short-term gains. It's about evolving naturally and maintaining a steady development pace.

Relevance is key to staying connected with customers by adding value and tailoring products to individual preferences through mass customization. Direct engagement with consumers, facilitated by the rise of e-commerce, allows brands to foster closer relationships and make purchasing seamless. Human qualities, such as compassion, authenticity, and a sense of humor, help build emotional connections and give customers insight into the company culture.

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