If you think branding is only for corporate giants, think again. Companies of every size, from single-store “mom and pops” to Coca-Cola, create an image in consumers’ minds at every point of contact. For better or worse, that’s branding. Building that image—your brand—takes time, but, say experts, it is well worth the investment.
“In a market churning with countless startups, a steady procession of mergers and acquisitions, and a seemingly infinite introduction of new products, companies—and their wares—have an increasingly difficult time standing out from the crowd. That’s why branding is so hot,” writes Inc. magazine.
Coca-Cola’s carefully crafted brand is worth approximately $67 billion, according to Interbrand Corp.’s annual ranking, which means that’s what price a buyer would be willing to pay for the words “Coca-Cola” or “Coke” should it ever be put up for sale. Coca-Cola might well be the most recognized brand name in the history of commerce.
Of course, The Coca-Cola Co. has spent billions building its image, and most small and midsize companies don’t have the resources to build a global brand. But, every company has the resources and, in this increasingly competitive marketplace, the imperative to create an image that reflects the company’s core values and purpose on a scale appropriate to the marketplace it’s in.
Richard Branson, founder of Virgin Atlantic Airways, knew that when he flew around the world in a balloon to promote his company. His publicity stunt was perfectly in keeping with Virgin’s brand: hip, fun, adventurous.
But branding is about more than pumping money into advertising and publicity. It encompasses everything from store layout and letterhead to the way employees interact with customers, clients, and vendors. Treating stakeholders well doesn’t cost anything.
Companies build their brands with every customer interaction and public communication, whether they know it or not. Savvy business owners manage brand-building, rather than just letting it happen, says branding expert Rob Frankel. He insists that a company’s branding strategy should be part of its strategic business plan. Because in the end, says Frankel, “branding isn’t about getting prospects to choose you over someone else; it’s about getting them to see you as the only solution to their problem amid today’s media clutter and price wars.”
So the simpler and more focused the branding message, the better. For example, Charles Lazarus’s Children’s Supermarket sold clothes, furniture and toys, but the company took off only when he changed the name to Toys “R” Us and concentrated on selling toys, even though other products were still offered. That brand told consumers that Toys “R” Us was the place to go for toys.
The search for a brand, however, shouldn’t grind business to a halt. Barry Moltz, a self-described “serial entrepreneur” and author, says that too many entrepreneurs end up with “analysis paralysis,” pondering what their brands mean before they serve their first customer. He points out that many businesses start out being one thing and end up being something else. “If you listen to the market,” says Moltz, “it will tell you what your branding should be.”
He’s right, and he’s not. Many companies, including IBM and AT&T, are no longer in the businesses they are best known for, but because both have built brands that are as much about image, customer satisfaction, loyalty and reliability, as they are about specific products or functions, they are successfully making the transition from one business to the next.
Small and midsize companies can start the brand-building process by asking themselves: What is the first thought I want my customer to have about my business? It’s a new take on the old question: What business am I really in? Hilton Hotels is not in the room-renting business; it’s in the hospitality business. And that differentiation instructs every business decision it makes.
All companies need to think broadly about the markets they’re in and the role their organizations play in meeting the needs of that market. Companies either offer products and services that solve problems or they appeal to consumers’ emotions or sense of self.
“The most successful businesses are doing well because they have a consistent image of what their brand means [to their customers],” says sales consultant and author Bob Phibbs, “Branding always matters.”
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