
Brand leadership
The next level of the brand revolution
Description
Building strong brands is vital for business success, as brands enhance financial value, deliver competitive edge, and boost profitability. However, the approach to brand building is evolving from traditional brand management focused on tactics and single markets, to more strategic brand leadership with a global perspective.
The key driver is also shifting from short-term sales and market share growth to long-term brand identity and purpose. To build global brand leadership, businesses must commit to the brand building process, lay a solid foundation, stick to a structured plan, create consistent messaging, and continuously track impact and learn.
Ultimately, authentic, consistent, and purpose-driven brands inspire trust and emotional connections with consumers across borders and cultures.
Table of contents
01New brand leadership
The traditional brand management system that worked well for decades is being replaced by a new brand leadership paradigm. This shift is happening because brands now face greater complexities - more competitive pressures, evolution of sales channels, global competition, managing multiple brands and subbrands. The new approach makes several key assumptions: Brand building strategy must align with overall business strategy; brand leaders should be visionary, not just tactical; brands are long-term assets that enable premium pricing and future success when built up over time. Brand value is hard to quantify but can be estimated as a percentage of earnings.
This new paradigm is rapidly replacing the old brand management system that was effective when brand managers were proactive planners and doers. Today's more complex business landscape needs a more strategic, forward-looking and experience-based brand leadership approach. Consider today's brands aiming for leadership: Virgin Atlantic founded by Richard Branson to provide top-quality, low-cost travel; L.L. Bean with its 100% satisfaction guarantee; Marriott extending into hotel residence inns; Adidas now focused on mass participation instead of just elite athletes; Nike with flagship stores and Air Jordans; Swatch building a youthful brand around fun watches; MasterCard sponsoring the World Cup.
02Identity and positioning
Crafting a strong brand requires carefully developing two key elements - brand identity and brand positioning. Brand identity encapsulates the vision for how a brand should be perceived by its target audience. It represents the specific associations a company wants customers to make with its brand. Brand positioning refers to the communication strategy used to focus and prioritize that identity in the marketplace.
Successful brands excel at creating a rich and unambiguous identity, paired with a positioning program that clarifies and builds upon that identity. The brand identity sets forth what the brand should represent, driving all associated brand-building efforts. A compelling identity has depth and aspirational qualities.
When developing a strong brand identity, it is important not to define the brand too narrowly. Instead, aim for a broad, multifaceted identity that provides a rich brand experience. While a simple tagline may be memorable, it reduces a brand to a soundbite rather than capturing its complexity. The identity should link the brand to a single, compelling functional benefit that is both expressive and differentiating. An associated visual metaphor can further reinforce and communicate this attribute.
While tempting, brands should avoid incorporating too many dimensions when defining their identity. The focus should stay on one or two key brand dimensions that are most relevant, impactful and differentiating. All other associations should be secondary. When shaping the identity, cues should be taken from loyal customers and insights into what resonates with them. However, this perspective needs balancing with an understanding of competitors and a broader market view to ensure differentiation. Ideally, brands maintain a single identity across their product portfolio and geographic markets. This often involves emphasizing certain identity aspects depending on the specific market while keeping the core intact. Crucially, the brand identity should drive marketing execution rather than the other way around. Ensuring alignment across the organization is key so that identity and implementation remain linked. The brand identity should be clearly articulated and lived to influence future decisions.
03Architecture for direction
Brand architecture refers to the strategic structure of brands within a company's portfolio. It defines the relationships and differentiation between brands to create clarity, consistency, and synergy. An effective brand architecture aligns brands to support business strategy and growth.
The brand portfolio encompasses all brands and sub-brands owned by the business. These are categorized by strategic role - whether revenue generating, critical to the future, enhancing image, or established. Brands may simultaneously fulfill multiple roles. Product-market context further defines brand relationships as co-brands through collaboration, endorsers to augment brands, benefit brands that add value, or driver brands that lead purchase decisions. These context roles enable brands to generate synergies.
04Programs and tracking
Building a powerful brand transcends mere advertising; it's an intricate process involving a variety of strategies to bring the brand to life. Companies like Nike and Adidas have demonstrated this through memorable initiatives that resonate with consumers. For instance, Nike's "NikeTowns" and the "Just Do It" campaign, along with Adidas's "Adidas Streetball Challenge" and "Impossible is Nothing" slogan, have helped these brands to rebound and thrive. These efforts were bolstered by innovative products such as Nike's Air Jordans and Adidas's "Feet You Wear" technology, which not only provided substance but also helped shape the brands' distinctive personalities and emotional connections with customers.
The management teams at Nike and Adidas played a crucial role in this process, directly overseeing brand development and fostering emotional connections with consumers. They also used sub-brands effectively, with Nike leveraging Air Jordan and Adidas enhancing its brand with the Equipment line. This approach helped to build equity in their master brands.
Creating a powerful brand involves three core tasks. First, it's essential to create visibility, ensuring the brand is recognized, remembered, and top-of-mind. Second, brands must build positive and differentiating associations, often by aligning themselves with established players to benefit from a halo effect. Third, deepening customer relationships is vital, turning the brand into a meaningful part of the customer's life or self-image, leading to loyalty and advocacy.
05Organization viability
Building a powerful brand is a complex and multifaceted endeavor that goes far beyond simple advertising. It's about creating a living, breathing entity that resonates deeply with consumers, much like the iconic brands Nike and Adidas have achieved through their innovative strategies and memorable initiatives. These companies have shown that with the right approach, a brand can become more than just a name or a logo; it can become a part of people's lives, influencing their choices and building a loyal customer base.
Nike and Adidas have both launched initiatives that have left lasting impressions on their audiences. Nike's creation of "NikeTowns" and the launch of the "Just Do It" campaign, along with Adidas's "Adidas Streetball Challenge" and the "Impossible is Nothing" slogan, are prime examples of how these brands have managed to rebound and thrive in competitive markets. These efforts were significantly supported by groundbreaking products such as Nike's Air Jordans and Adidas's "Feet You Wear" technology. These products did more than just offer innovative features; they helped to sculpt the brands' unique personalities and forge emotional connections with their customers.
The management teams at Nike and Adidas have been instrumental in this brand-building process, taking a hands-on approach to develop their brands and foster these crucial emotional connections. They have also skillfully used sub-brands, with Nike leveraging the Air Jordan line and Adidas enhancing its brand appeal with the Equipment line. This strategy has been effective in building equity in their master brands, demonstrating the importance of a cohesive and strategic approach to brand management.













