Branding is predicted to become the most powerful strategic tool since the spreadsheet, playing a crucial role in defining company identity and could be the difference between thriving in a market and struggling to stay afloat. Put simply, a brand is a person's gut feeling about a product, service or organisation.
What Makes A Brand "Strong"?
Several things can strengthen a brand:
A clear message, uniqueness, a solid philosophy, a niche market, audience awareness, specific colours and designs.
A strong brand is not with only one of the above elements, but a comprehensive combination of multiple elements in a cohesive manner.
A great example of a strong brand is Nike. Along with their high-quality products and stylish designs, they have a recognisable logo and a strong brand personality synonymous with athleticism, winning, and all aspects of sports.
Apple is another brand that innovatively combines different elements to enforce its strong brand: sleek design, high-quality products, innovative brand personality, and an inspiring brand story.
Benefits of Having a Strong Brand
The aim of a brand is to help individuals or companies more easily differentiate themselves from their customers, and to provide a strong meaning and value to both the firm and its users. If done right, strong branding could offer the following benefits:
Customer recognition: Building a strong brand will mean you will lead to higher customer recognition. This means your brand will be at the top of their mind when they are considering buying a product or service in your category, leading to higher sales.
Customer loyalty: Customers are attracted to brands that they share values and world-views with. Once a brand can connect to the customers on an emotional level, the customers come back for more and build a community around the brand, or a "tribe". A loyal tribe who are will act as advocates for the brand. This can also lead to higher profits for the business, as according to the Pareto Principle, 80% of a company's sales comes from 20% of its customers.
Easier new product launches: When a company has good branding and a loyal tribe, it becomes less expensive to launch new products or test them before investing in them further.
Increased credibility: When a company has strong branding, it enhances its credibility with the industry, customers, and the collective marketplace. In turn, strengthening the company's recognition, customer loyalty and competitiveness.