Branding that Means Business

1. Brand meaning is the cornerstone of successful branding

Brands matter when, and only when, they matter to consumers.

Brand value creation. Successful brands go beyond mere product utility to create deep, meaningful connections with consumers. This meaning is not dictated by the brand itself, but co-created through interactions with consumers and society at large. Brand meaning manifests in two primary forms:

• Functional value: How the brand changes the consumer's experience of the product
• Financial value: The brand's ability to command premium pricing and loyalty

Brand associations and personality. A brand's meaning is built on:

• Tangible elements: Logo, motto, color palette
• Intangible elements: Brand personality, values, and emotional connections

Brands that successfully cultivate meaning become integral parts of consumers' lives, influencing their choices and experiences far beyond the product's basic utility.

2. Co-creation builds deeper connections between brands and consumers

Brand meaning can't be dictated to consumers. Brand purpose is similar, and benefits from a collaborative effort.

Consumer collaboration. Successful brands recognize that meaning is not unilaterally imposed but co-created with consumers. This approach involves:

• Actively listening to consumer feedback and insights
• Adapting brand strategy based on consumer interpretations
• Embracing user-generated content and community-driven initiatives

Cultural sensitivity. Brands must be attuned to cultural nuances and adapt their messaging accordingly. Examples include:

• KitKat in Japan: Adapting to local dialect and cultural associations
• Pizza Hut: Positioned as a luxury dining experience in some Asian markets

By involving consumers in the brand-building process, companies create more authentic, resonant, and enduring brand identities.

3. Brand purpose is the antidote to technological commodification

Now more than ever they must create brand meaning: Brands only matter when they matter to consumers.

Technological disruption. The rise of e-commerce platforms and digital technologies has led to increased product commodification. Brands must differentiate themselves beyond product features to remain relevant.

Purpose-driven branding. Successful brands in this environment:

• Articulate a clear, authentic brand purpose
• Align purpose with consumer values and motivations
• Operationalize purpose throughout the organization

Examples:

• Zappos: Delivering exceptional customer service
• KIND: Building a platform around health and wellness
• Red Bull: Embodying an "extreme" lifestyle

By focusing on purpose, brands create emotional connections that transcend product utility, fostering loyalty in an increasingly commoditized marketplace.

4. Social identity shapes brand loyalty and community

For brands to be inked for life with the consumer's social identity, they need to consider the following.

Identity-based branding. Successful brands tap into consumers' social identities, becoming extensions of how they see themselves and want to be perceived by others.

Key strategies:

• Aligning brand values with consumer identities
• Creating shared experiences and rituals
• Fostering brand communities

Examples:

• Jeep: Building a community around adventure and outdoor lifestyle
• Harley-Davidson: Embodying rebellion and freedom
• Nike: Associating with athletic excellence and personal achievement

Evolving identities. Brands must also be mindful of shifting societal norms and adapt their identity positioning accordingly. This may involve:

• Redefining traditional gender roles (e.g., Gillette's shift from "The Best a Man Can Get" to "The Best Men Can Be")
• Embracing inclusivity and diversity
• Addressing emerging social values and concerns

5. Warmth and competence drive brand loyalty

When trust is established between the brand and the loyal customer, all other aspects of the marketing strategy become more effective, giving the brand a distinctive competitive advantage.

Human-like perception. Consumers judge brands similarly to how they judge people, primarily on two dimensions:

1. Warmth: Perceived good intentions and trustworthiness
2. Competence: Ability to deliver on promises

Building trust. Brands that excel in both warmth and competence create strong emotional bonds with consumers, leading to:

• Increased loyalty and repeat purchases
• Greater resistance to competitor offerings
• Positive word-of-mouth recommendations

Strategies for cultivating warmth and competence:

• Demonstrating genuine care for customers (e.g., Zappos' customer service)
• Consistently delivering high-quality products or services
• Responding authentically to crises (e.g., Johnson & Johnson's Tylenol recall)

By focusing on these fundamental human perceptions, brands can create deep, lasting relationships with consumers that go beyond transactional loyalty programs.

6. Brand communication thrives in a fragmented media landscape

While brands might lose the total control they once had over their brand communication, the good news is that relinquishing some degree of control, engaging in conversation with consumers and even leveraging their user-generated content can be a winning strategy.

Decentralized influence. The traditional mass media model has given way to a fragmented landscape of niche channels, influencers, and user-generated content.

Successful brand communication strategies in this environment:

• Embrace micro-influencers with highly engaged, niche audiences
• Leverage user-generated content to build authenticity
• Engage in two-way conversations with consumers across multiple platforms

Integrated content. Brands are moving beyond traditional advertising to create content that seamlessly integrates into consumers' lives and media consumption habits.

Examples:

• Red Bull: Creating extreme sports content and events
• Glossier: Building a community through beauty-focused content and conversations

By adapting to this new landscape, brands can create more authentic, engaging, and impactful communications that resonate with their target audiences.

7. Social signaling enhances brand value beyond product utility

Social currency is the ability to develop influence. When it comes to brands developing meaning with a brand community, it isn't about the product's utility; it's about the deeper meaning of what the product symbolises and the social currency it can develop.

Symbolic value. Brands can create additional value by enabling consumers to signal their values, status, or affiliations to others.

Types of social signals:

• Status and luxury (e.g., Hermès Birkin bag)
• Environmental consciousness (e.g., Toyota Prius)
• Cultural awareness or insider knowledge (e.g., Supreme streetwear)

Strategies for enhancing social signaling:

• Creating exclusivity through limited availability or high pricing
• Developing subtle brand identifiers recognizable to "insiders"
• Aligning with specific cultural movements or values

By tapping into consumers' desire for self-expression and social belonging, brands can create value that extends far beyond the functional benefits of their products.

8. Brand activism requires authenticity and alignment with core principles

The authenticity of a brand in the context of taking a political or controversial position is about the alignment between the position the brand is taking and the consumer's understanding of the brand image.

Strategic considerations for brand activism:

• Ensure alignment with brand history and core principles
• Assess potential risks and benefits to brand image
• Consider the diversity of consumer opinions within the target market

Successful brand activism examples:

• Nike's support of Colin Kaepernick
• Ben & Jerry's vocal stance on social justice issues

Potential pitfalls:

• Inauthentic or opportunistic messaging (e.g., "woke-washing")
• Alienating segments of the consumer base
• Inconsistency between stated values and corporate actions

Brand activism can be a powerful tool for differentiation and building deeper consumer connections, but it requires careful consideration and authentic commitment to be effective.

9. Understanding social norms is crucial for brand innovation and expansion

Social norms are the conventions that we navigate in our everyday lives and which we seldom notice. They can have a significant impact on brand acceptance.

Cultural adaptation. Brands must be attuned to the social norms of different markets to succeed in expansion efforts.

Examples of cultural missteps:

• Walmart's customer service model in Germany
• Starbucks' initial struggles in Australia

Strategies for navigating social norms:

• Conduct thorough on-the-ground market research
• Adapt brand messaging and experiences to local contexts
• Collaborate with local partners or influencers

Changing social norms. Innovative brands can also challenge and reshape existing norms, creating new market opportunities.

Examples:

• Airbnb: Normalizing staying in strangers' homes
• Uber: Reimagining transportation and trust

By understanding and strategically engaging with social norms, brands can more effectively innovate, expand into new markets, and create meaningful connections with diverse consumer groups.

Last updated: July 29, 2024