When a brand reaches a stalemate, management is to blame for neglecting constant evolving market trends, competitive pressures and ignoring customer feedback. If sales turnout to be lackluster for several quarters, it may be time to consider a re-branding strategy and implementation. Investing and continuously reinvesting in a brand’s nuance will earn and retain consumer loyalty. However, it is not adequate to merely change the look of the logo through an image makeover. The promise it conveys must be delivered each and every time – irrespective if selling a product or service. The advice offered herein concerns a fatigued brand and its product(s). As for a damaged brand, due to a company crisis, it is a subject on its own not reviewed in this article.
Complacency breeds mediocrity
In business, as with any other endeavor, progress is an ongoing process. Nothing should be taken for granted. Undoubtedly, the most profitable and enduring companies achieve their longevity and lengthy track record of success by constantly reinventing themselves. Once a brand is launched, it requires constant nurturing if it is to remain relevant, as well as customer engaged. This includes seeing opportunities and acting upon them in a timely and focused manner. Moreover, being aware of making adjustments according to ever changing trends in the marketplace, as well as through customer feedback, is paramount. The tools in a company’s chest is marketing research which uncovers needed information for a thorough understanding of its target market including perceptions its customers have for the brand. As a result, its knowledge will be updated with regards to consumer preferences and expectations. Following this, a short-term and mid-term approach should be implemented.
Customer centric vs product centric
Consumers today are more brand conscience, yet there are companies which continue to spend money advertising and selling product rather than brand. They place emphasis on price and quality as differentiators despite these two being overused by many copycats. Successful brands take a holistic approach to selling by exploiting the 5 senses which now constitute the brand. This is accomplished via “sensory/sensorial branding”, through a captivating designed setting, yet alluring. This adds character and invites clients to truly feel the brand experience.
Building and sustaining a brand necessitates continuous enhancements by means of innovation and customer centricity. The marketplace is also evolving and the consumer is more savvy, thanks to the internet. Add to that competitive and price pressures. In addition, there is a massive shift in purchasing behavior of the younger target groups most notably the Millennials, who unlike their parents, are very particular in their tastes and purchasing habits. This is due in part to an expanding world of choices and options for just about everything they ever need or want. Thus, new market realities should be contemplated when re-establishing a brand.
Branding in essence is the heart and soul of the business. It sets a business’s products and/or services apart from the competition. This is particularly true in certain sectors where price is the only differentiator, though competing merely on price is a dead end game as your product falls into a commoditized category. The only firms which can win at this game are those in high volumes and low margins. Needless to say, it is much better to target a niche market, especially in the premium category, where there is less competition and margins are higher.
Examples of brands which overhauled their brand to a higher level, reflect on the following:
Hyundai: From dull automobiles and inferior quality they transformed to developing striking designs, improved quality and sold at attractive prices. Taking their brand one step further, they added a halo effect by creating a premium category, in Genesis and Equus, to rival the well-established and pricier German competitors such as Mercedes, BMW and Audi models.
Apple: This strong brand began as a premium personal computer company with its first product, the Lisa, in the early 1980s. Much later, it introduced new and sought after categories in consumer electronics including the renowned iPhone. Fast forward to today, by hiring two former luxury domain senior executives and with the introduction of the Apple Watch, including an 18-Karat gold version (named Edition), the brand appears to be implementing a luxury strategy. Since perception and brand image is important in luxury distribution, Apple is considering opening separate stand-alone watch boutiques.
IBM: This brand went from computer manufacturing to IT consulting services. The company had to make a painful choice: innovate or die. It made the bold decision to abandon the core of its business model – selling low-margin personal computers, supercomputers and other computer hardware to a completely new focus – providing IT expertise and computing services to businesses. The business model revamp paid off. A few years in and IBM had acquired a significant number of companies in the IT services sector to dominate it with high margins.
To revamp a brand, consider carrying-out the following enhancements with purpose:
- Add an element of sensuality and desire: Read article
- Enhanced, appealing and easily recognizable identity: The logo, communication style, color scheme and any other visual elements of the company. Perception by its target market is key. Brand identity (company created and how it wants to be perceived) and brand image (what the consumers actually perceive) should be in sync.
- Improved product and service: It is not simply adequate to reinvigorate a brand without refining the company’s products and services which should also make a positive difference. Read article
- Compelling USP: The unique selling proposition should be meaningful and convincing if it is to be convey differentiation for the brand along with its products and services.
- Storytelling: Brands build relationships by the stories they tell. Stories add personality to products which customers can better relate to and feel affinity with. For example, luxury brands boast their pedigree.
- Lifestyle brand: Generally speaking, brands that are designed for a lifestyle should have a much higher emotional value to consumers than ones based on features like cost or benefits alone. Read article
- Prestige or premium category: Move away from a commoditized product to a prestige and premium category if you want to differentiate as well as charge a premium price which in turn improve margins. Doing so should justify the “prestige” and “premium” labels through high-quality workmanship and materials along with benefits which trump its competitors. Adding a story behind it increases justifies the price increase. The brand may also be considered “mass luxury” or “masstige” (“prestige for the masses” and defined as “premium but attainable” by the masses.). Lacoste apparel is a fitting example.
- Social media and PR savvy: Engaging with your target audience – this is conducted through social media and requesting Simply put, engaged customers help you build your business.
- Make it fun and effortless to do business with you: Make each touch point a pleasant and graceful experience. Hire for attitude and train for high standard of customer services including thorough product knowledge and a no pressure consultative selling approach. Read article
To add to the above, it is imperative to include a management team and subordinates who buy into, as well as apply the above-mentioned elements.
Image is perception – repositioning time
A brand should be sensitive to its image and equally mindful about what its perceived strengths and weaknesses are as compared to its competition. A SWOT analysis helps uncover these.
There are a good number of factors to recognize in regards to what can erode a brand. According to The Blake Project’s Brand Strategy Insider newsletter, an article entitled “60 Signs Your Brand is Dying”, it describes: “What kills a brand, more often than not, is what it lacks rather than what it does: conviction; energy; value; humility; cash; discipline; imagination; focus…” along with a list of 60 reasons a brand is dying. We witness this with the downfall of the Blackberry brand of smartphones. The executives at the company were so arrogant, that they did not initially see yet later ignored the disruption Apple and the now ubiquitous Android platform would bring to the smartphone market. As a result of Blackberry’s lack of a long-term strategy to outmanoeuvre its competitors, it hastily introduced new products which still left the brand two steps behind Apple and Google with its licensed Android.
The brand is the personality, as well as an (intangible) asset of the business since it possesses equity which in turn is its value and goodwill from a consumer perspective. The more valuable it is, the more can be charged for the product and/or service. The foundation of the brand is/are its product(s) and/or service(s), followed by the total customer experience ‒ which includes customer service. Thus, building and nurturing a brand is what makes an enterprise gather wind under its wings.
A brand ought to undergo rejuvenation and in some cases, a fundamental change if it is to be relevant with its intended audience. To do so requires a systematic understanding of its typical customer profile, its wants, desires and the changing marketplace. This is done through a market analysis – the results of which will be taken in consideration for a new/updated and creative strategy with efficient implementation. If the brand has become stale, which is usually revealed through a steady decline in sales and discouraging customer feedback, it is a strong indication that its products and/or sales ought to be improved and re-launched.
In the end, can you frankly answer the following?
– What do you aspire your brand to stand and be relevant in the mind of your target market?
– What is your unique selling proposition?
– What is your raison d’etre? (Watch this immensely popular TED video by Simon Sinek)
– Are you admired?
– What are you doing to align your goals, objectives and to remain a compelling brand in your market?