Brand Strategy
Standing out amid a massive chorus of competitors is a challenge for any company in todays business climate. Want evidence? Look at any magazine, TV show or surf the Internet. The number of offers and sales pitches one receives on a daily basis is simply staggering and increasingly ineffective. Its no wonder, then, why businesses are seeking new and more effective ways of increasing the influence of their brand strategy in the marketplace. A strong brand strategy can increase the awareness of a company and its offerings in such a way that establishes strong feelings and reactions and a favorable view towards the company as a whole. To create this sort of brand awareness in your market, it takes skillful Brand Strategy knowhow. Successfully out-branding your competitors is a continuous battle for the hearts and minds of your customers. The proposition your brand strategy makes must be very compelling, attractive and unique among competitive offerings. The proposition must also be consistently reinforced throughout all phases of an organization, from senior executives to customer service, research and development, business development and even your business partners. What entails a comprehensive and effective Brand Strategy process? Thats a much longer answer than what we have space for here, plus it varies from industry to industry, but here are some very basic guidelines about what makes a good Brand Strategy. Brand Strategywhats the big deal? Brand Strategy is nothing new. Yet, the expectations consumers have for a product or service they buy is stronger than its ever been. This is why companies interested in long-term success must create the most promising, targeted brand experience possible. Whether you know it or not, you already have a brand, and your customers are having a brand experience when they interact with you, whether it be with your products and services or the people in your company. In order to craft this brand experience in a calculated way that is beneficial for your company, you must have a strong understanding about what exactly a brand is. Brand is the Alpha and Omega In other words, brand is the totality of your company and its business. A brand is the sum of the good, the bad, the ugly and the off-strategy, says Scott White, one of the nations leading branding consultants and a valued expert companies like Sun Life Financial and Franklin Sports rely on. It is your best and worst product. It is your best and worst employee. It is communicated through award-winning advertising as well as those ads that somehow slipped through the approval cracks and sank anything riding on them. It is your onhold music and the demeanor of the receptionist who puts that valued client or prospect on hold.
It is the carefully crafted comments by a CEO as well as negative buzz by the water cooler or in chat rooms on the Internet. Brand is expressed through written, audio and visual content. It is interpreted through emotional filters every human being haswhere anything can happen. Ultimately, you cant control your brand. You can only hope to guide it. The Road to Branding Success Building on the inherent values of a brand should be the core of any branding strategy. If theyre not clear, get a good grip on them first. Is the brand about honesty or integrity? Quality? How about excellent communication and customer satisfaction? Knowledge of a companys values, at least in a literal context, is typically an internal matter; yet, those values become evident to everyone in contact with the company, from customers and prospective customers to business-to-business relationships and employee relations. Consistency is the key here. If members of the organization arent accurately representing the values of the brand, steps must be taken to rectify the chink in the armor. And unlike a brands key business proposition, values should never change even though the landscape in which the company operates and even its products may. Winning brand strategies starts with top-notch research With values set, a brand proposition is ready to be established. Objective and comprehensive branding research are the keys here. At a minimum, both must be done to establish clarity on the brands strengths and weaknesses, the target audience and the competition. If possible, branding research should also be done on the brands industry, its history, the status of the market and possibilities for future expansion. Your target customer will determine your success If its only possible to do one body of brand research, discover as much as possible about your target customer. Find out who they are and what their needs and desires are. Make it your mission to get as detailed information as possible on their age, gender, income, shopping habits (online and off) and anything else of relevance you can determine. If youre targeting a business market, these criteria will differ, depending on the industry. Understanding your target market and what they want is key to developing a winning brand. Knowing these things should also give you an idea for what communication medium and content would work to engage your market. Other research you might want to do is find out what your competitors offerings are like. How do your offerings stack up? What can a customer get from your product that they cant get from anyone else? Find out these things, and you have the seeds for a winning branding strategy, not to mention great fodder for an ad campaign. What does your brand promise? The brand statement, often called the brand promise or proposition, is a derivative of branding research. It states the benefit of buying and using your companys products or services. For
clothing, it could be about style or comfort. For a car, it could be about safety or reliability. Whatever it is, it must be clear, engaging and presented in a context relevant to the customer. One example of an effective brand promise is that of BMWs. Its stated right in the companys tagline: The Ultimate Driving Machine. Your promise should be golden If your companys products and service dont live up to their brand promise, new customers will become lost customers and loyal customers might leave, too. Simply put, your deliverable, what ever that is, must follow through on the promisein fact, it would be best if it actually overdelivered.
Your promise should be unexpected, but welcome Dont reuse something a competitor has already promised even if it works for your product or service, and dont be vague in trying to position your company favorably against your competitors (such as saying youre the best pizza in town.). Be specific because specific is exponentially more memorable. Besides, people expect you to be good. Otherwise, they wouldnt give you their business. Hearts and minds first, wallets later Creating a positive emotional association in your market for your product or service is key. It can create want and desire by the mere mention of your brand, product or service name. Needless to say, thats powerful. For instance, the mere mention of Ben & Jerrys conjures up images of numerous unique premium ice cream flavors and with the anticipation for your favorite (in my case, Cherry Garcia). Such positive emotional associations are built over time through good branding practice and a time-tested relationship between you and your customer based on intrigue, trust, understanding and support. To create a brand promise that creates such emotional connections, it should be: 1. Grounded in the brands core values 2. Clearly relevant and engaging to your target market 3. Able to create some sort of positive emotional attachment beyond just being good 4. Repeated internally and externally within your organization 5. Adaptable to the business climate 6. Continually reinforced 7. Consistent across advertising and marketing mediums 8. Known and echoed by business partners Scott White, president of Brand Identity Guru Inc., is a highly sought-after branding consultant and speaker. He has conducted hundreds of proprietary Pump Up Your Brand workshops to companies of every size from large multi-national public companies to one and two-person
shops. If youre interested in having one, contact Mr. White at 617.504.2305 or via email at swhite@brandidentityguru.com. Follow these links to learn more about brand strategy, branding, along with brand design. If you're looking for Web site development that will build brand awareness on the Web, our search engine optimization and PPC advertising programs offer better value than youll find with anyone else. We have one of North America's best search engine optimization experts on staff. Bring us your Web site, and well create a brand presence on the Internet you've only dreamed of. To learn more about corporate internet brand consulting services and how Brand Identity Guru can improve your Internet branding, call us at 617.504.2305 or email us at sales@brandidentityguru.com.
BMW - Overview of Corporate Communication, Corporate Identity, Corporate Image and CSR
Scholarly Essay, 2010, 9 Pages Business economics - Marketing, Corporate Communication, CRM, Market Research
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7001MKT Tim James is the PR & Corporate Communications Manager of BMW Group Australia (BMW Insights) and responsible for the current corporate communication activities and tools of BMW Motorrad in Australia. 3 Corporate Identity
The section is about corporate identity. After introducing corporate identity theory, the current identity, activities and tools of the BMW Group are presented. 3.1 Theory Corporate Identity According to Argenti and Forman (2002, p. 68), the identity of a company is the concrete, often visual, manifestation of its reality. Moreover, the corporate identity of an organisation is conveyed by an organizations logos, products, services, buildings, stationery, uniforms (Argenti and Forman, p. 68). It is important that a corporate identity is strong and consistent. An organizations identity should not vary from one constituency to another (Argenti, 2009, p. 54). According to Argenti, an organisation needs to build an identity and maintain it in order to be immediately recognized by its stakeholders. Table 3.1 further explains corporate identity theory. Table 3.1 Summary of Corporate Identity theory
3.2 Current identity, activities and tools BMWs identity is monolithic. The company provides one visual style all over the world. Figure 3.2 shows BMWs logo and the international slogan. Both are globally well known, especially the BMW logo has become one of the worlds most recognized symbols that exemplifies class, personality and sophistication (logoblog, 2008). 7001MKT Figure 3.2 BMW logo
According to logoblog (2008), The logo is remarkably simple and projects an identity that is smart, clear, sporty and image-conscious. It is one of the most distinctive logo designs in the world, speaking highly of a brand-led company. Internationally BMW uses as slogan The Ultimate Driving Machine as well as the translation of the German version of Freude am Fahren, which is Sheer Driving Pleasure (BMW). Lately BMW wants to evoke an emotion from potential buyers, stating that they do not just make cars-they make joy. So if you buy a BMW, you will feel joy (imaginelifestyles, 2010). This means, that BMW focuses on identity sales. 4 Corporate Image The fourth chapter gives an introduction to corporate image theory and afterwards illustrates the current image of the BMW Group. 4.1 Theory Corporate Image In contrast to corporate identity, image resides in the minds of audiences (Melewar, 2008, p. 11). A companys identity builds up the image as the image is a reflection of an organizations identity (Argenti & Forman, 2002, p. 69). As the stakeholders of a company interact with the company through the companys employees, its publicity, and the whole marketing concept in general, they get an impression of the company which is generally referred to as the corporate image (Argenti & Forman, 2002). It is perceived through experiences, beliefs, feelings, knowledge, associations, and impressions (Melewar, 2008, p. 11) of each stakeholder and is delivered through names and logos, and through selfpresentations, including expressions (Argenti & Forman, 2002, p. 81) of the corporate vision. Not only products and services, also relationships with the stakeholders, especially employees and the local community have a huge impact on the image. Furthermore, the consumers now want to know about the company, not just the products (Argenti & 7001MKT Forman, 2002, p. 81). However, according to Argenti (2009) each stakeholder can perceive a different image of the same company. Finally, all stakeholders perceptions together form the organisations reputation (Argenti, 2009). In order to ascertain its image, a company can carry out research with its stakeholders. This research should be both qualitative and quantitative in nature and should try to determine how consistent the identity is across constituencies. (Argenti, 2009, p. 69) 4.2 Current image Image association is much like word association. What words come to mind when you read the name [...] BMW? [...] the range [...] would include performance, style, speed, and other associations (Howard, 1998, p. 85). Indeed, asking some friends and relatives about BMW's image brought similar results. I
came to the conclusion that most people's perceptions are luxury cars, expensive cars, high-quality and sporty cars. They also referred to high reputation. Regarding BMW Motorcycles they mostly mentioned speed and style. This indicates that BMW's image building has been successful. The image of high-end car technology has been delivered effectively. 5 CSR programme and Corporate Communications The corporate social responsibility theory is briefly presented in this chapter. Furthermore, the role of corporate social responsibility within the BMW Group is introduced. 5.1 Theory CSR A companys primary goal is to pursuit the economic interests of its owners. However, a company has more issues to concern about than just the financial one. In order to not become an exploitive, antisocial, and corrupt organisation, or even lose legitimacy and its ability to pursue the economic goals of the owners over the long term, an organisation has to find a well balanced approach towards all of its stakeholders (Werther & Chandler, 2006, p. 1). This approach is synonymous with Corporate Social Responsibility (CSR). CSR deals with all the relationships a company has with stakeholder groups, the economic system, and the communities within which it exists (Werther & Chandler, 2006, p. 8). Furthermore, CSR embraces the range of economic, legal, ethical, and discretionary actions that affect the economic performance of the firm (Werther & Chandler, 2006, p. 10). However, CSR is not only about being social and philanthropic. An organisation has a successful CSR strategy when it is able to deal with stakeholder concerns while pursuing its financial goals
Celebrity Endorsements
Celebrity endorsements remain a popular tool for marketers. But too many times brands use the wrong celebrities.
Tiger Woods endorsing the Buick brand makes no sense at all. There is just no believability that Tiger is dying to drive a Buick. And without believability a celebrity endorsement is worthless. The $40 million General Motors reportedly paid Tiger for his 5-year contract ending in 2009 is not money well spent. The Buick/Woods example is the extreme of what not to do when choosing a celebrity. There was no believability; Tiger is overused and Tiger is too expensive. The brand personalities of Buick and Tiger go together like oil and water. Buick is an older persons car (Tiger is less than half the age of the average buyer.) Tiger is very young, very cool and at the top of his game. You imagine him driving a Bentley, a Mercedes or a Lexus. Never in a million years would anyone imagine Tiger saying to his hot Swedish-model-wife Hey Honey, lets go get a Buick! It was even worse when General Motors signed Tiger back in 1999. Then he was a cool, single guy in his 20s. No guy ever got a date by driving around in a Buick. If anything, it would have been a better idea for G.M. sign up Tigers dad, Earl Woods, as the celebrity endorser for Buick. At least he would be more of a believable Buick buyer but unfortunately it is too late for that since he sadly passed away last year. There are times when a celebrity endorsement makes sense and can be tremendously helpful. Think Michael Jordan and Nike or Gatorade. Or Kristie Alley and Jenny Craig. Here are the answers to some common questions to help you to decide if a celebrity is right for your brand. How can a celebrity endorsement help my brand? Having a celebrity endorse your brand can be helpful for a well-known brand in need of maintaining attention for its brand and category. Celebrities are most helpful because they can star in advertising campaigns and participate in company events. Consumers might be more apt to watch your ad if it has a celebrity. Employees might feel proud of having the celebrity endorsing their company. Customers might be more apt to participate in events when a celebrity involved. A celebrity is not a replacement for an idea. A brand without a focus will never find the correct celebrity to match the brand. Using a celebrity is also not a replacement for brand PR. Too many companies use a celebrity in an attempt to establish credibility with consumers. But the only thing that builds a brand in the mind of the consumer is PR and word-of-mouth generated by an idea. The PR attention generated by a celebrity does not build your brand.
People might talk about the celebrity but that rarely translates into much for the brand. The bottom line is that the only thing that makes a brand successful is owning a word in the mind. Paying Tiger Woods millions of dollars is no replacement for that.
When do celebrity endorsements work? Celebrity endorsements only work when the consumer has a credible belief that the celebrity would be interested in buying and using your product or service despite being paid to do so. If not, your money is wasted on the endorsement. You can have any actor deliver your sales pitch. The celebrity might even be a distraction from your message. Celebrity endorsements work best when you can line up a celebrity with as much exclusivity as possible. Athletes in their prime usually have endorsements with so many different brands that each has limited influence. Look at the cars of NASCAR drivers. Unless your name fills the whole car, forget it. All the little names get lost and ignored. Celebrity endorsements work best when the celebrity is believable. Seems obvious, but many celebrities have the reputation for saying anything for a buck. This is compounded by having multiple contracts that are short-term and change frequently. Celebrity endorsements work best if the celebrity is not too famous. Celebrities that are too famous and too much in the public eye are not as effective. They tend to overshadow the brands in the advertising. And consumers are fatigued of seeing the celebritiess face all over the place. Celebrity endorsements work best if you think long-term. Having a new celebrity ever few years doesnt make sense. Consistency is key. Some brands associated with youth and fashion will have a higher turnover rate. But most brands should think about a partnership of five years or more.
Are celebrity endorsements worth the money? A big, established, dominate brand has the money and weight to make a celebrity endorsement work. Its usually a brand that consumers are familiar with and the exorbitant costs can be worthwhile in defending the brands position in the mind and keeping the category relevant and interesting. Celebrity endorsements are usually not a wise choice for new brands with limited budgets. Better to use PR and a company leader as a spokesperson to build the brand first.
What if the celebrity gets in trouble? The recent PR disasters with Martha Stewart, Kobe Bryant, Mel Gibson, Paris Hilton and others makes many companies extremely nervous about signing up a celebrity.
People are fallible. Even Ms. Perfect (aka Martha Stewart) can suffer a fall from grace. But having a singular person as the spokesperson for your brand, whether it is a CEO like Steve Jobs or a celebrity like Tiger Woods, is extremely beneficial and so important in a brands success that is worth the risk. And if the worst happens, just be consoled that strong brands tend to survive regardless. Some of the worst celebrity endorsement choices: (Please post a comment with some of your favorites, too) Michael Jordan and Rayovac rechargeable batteries. I think he can afford to buy the real ones and throw them away. Dont you? Michael Jordan and Hanes underwear. Boxers or briefs? Neither. I am guessing Jordan would go commando rather than wear such stodgy drawers. Paris Hilton and Carls Jr. Stuffing her face with fast-food burgers, I dont think so. The only thing this heiress indulgences in is champagne, clothes and cosmetics. Fidelity and Paul McCartney. When you have billions, who needs to worry about retirement planning? Jessica Simpson and Pizza Hut. The overexposed Simpson is definitely cheesy but popping cheesy bites from Pizza Hut is far from believable
