Alvin Wasserman: President, Wasserman + Partners Advertising
The classic answer to why branding matters came from Roberto Goizueta, the late CEO of Coca-Cola: "All our factories and facilities could burn down tomorrow but you'd hardly touch the value of the company; all that actually lies in the goodwill of our brand franchise and the collective knowledge in the company."
If you listened to Terry O'Reilly's "Under the Influence" recently on CBC, you would have heard about how fast Tylenol regained its market leadership share after the tampering deaths. A booklet by Johnson & Johnson states it bluntly: "Our company's name and trademark are by far our most valuable assets."
If brand equity is that valuable in times of trouble, cutting rebound time and protecting share of market, how important is it in the normal scrimmage for business?
Huge. B.C. was just another place in the Pacific Northwest until then agency McKim came up with it as Super, Natural British Columbia.
At retail, the difference between the No. 1 brand in a category and the No. 2 is often astounding. Nike is worth approximately $12.7 billion; Adidas, about $5.1 billion.
I recently shopped for a diesel-fuelled car. I discovered Volkswagen and Audi used the same engine, transmission and platform. There were a few cosmetic differences in two models, but get this: the Audi was priced at over $5,000 more. The brand speaks in a tonier manner and it nets the premium (although not from me).
Not only can you build a more profitable business by thinking brand, you can redefine the category you are in entirely. Think Apple versus anything else, or locally, Lululemon versus anything else.
Brand is not just buzz. It keeps you from the buzzards.
Isabelle Mercier Turcotte: Brand strategist, author, and business performance catalyst at LeapZone Strategies
Because you want your customers to say: "I absolutely want to work with you, regardless of price!" In this economy, you need to be extraordinary and always find ways to remain extraordinary or you will be eliminated. Period.
Most people think that branding is a logo or a look and feel. I call that an external makeover; branding is far more than that. A logo means nothing, unless the company behind it means something to you.
I'm not diminishing the importance of a well designed brand identity, but what I am saying is a look and feel does not get customers to say: "I absolutely want to work with you, regardless of price!"
What does?
An innovative product and/or service with a consistent, extraordinary experience delivery system.
Branding is when you take a good, honest look under the hood of your business and get crystal clear about:
- who you are and what makes you different;
- what problems you solve – how your service or product is making life better;
- what your measurable and differentiating promise is;
- who you are best suited to help and, most importantly, why they should care.
Uncovering the answers to these key questions, now, that's branding. Understanding what your ideal clients want and need, that's branding. Answering their needs with your unique selling proposition, that's branding.Do that well and you've just put yourself way ahead of your competitors.
Branding is much more than a logo. It's a never-ending journey to ensure that you stay extraordinary to avoid elimination – and that's why you should care about branding your business.
John Dehart: Co-founder and CEO of Nurse Next Door Home Care Services
Very few businesses focus on building their brand, but those that do, win. Here's why.
- Differentiation is the key, in any market, any vertical. How you communicate what you do, and how it is reflected in your brand, is the difference between offering a commoditized product or service (in the mind of the consumer) and a highly differentiated, unique product or service. When you lack that brand differentiation, ultimately, you're replaceable. Take our vertical, home care, as an example. There are thousands of businesses in North America that offer home care and, frankly, they almost all look and feel the same. Everyone uses the same tired visuals (mostly stock photos) and promise to do the same thing – provide a bath, or make a meal. We've now taken an approach to celebrate aging, showing seniors how they want to be seen and aligning ourselves with a fresh approach to aging.
- Don't think for a moment that your brand is a logo and some fresh visuals. Your brand is your reputation. It's what you stand for and your promise to your customers. Which is, of course, why it's so critical. What do you want your customer to think about you? To remember about you? To say to other people about you? This is what your brand is used for. A successful brand strategy will address these questions and answer them for your customers.
- Everyone has an exit strategy. If you don't, you're reading the wrong column – get one. At the end of the day, when you go to sell your business (almost everyone will), it is what the buyer will pay a premium for. Great profits, no brand? Decent value. Great profits, great, differentiated and recognized brand? You'll achieve a higher multiple in the marketplace than your industry peers.
