Branding For Long Term Results

by Jeff Hilton, Integrated Marketing Group, 2005

Marketing vs. Branding
Business is all about strategy and execution. Thinking through a plan and then making it happen. Marketing is much the same, but the ever-present temptation is to focus primarily on execution 1) because it’s more fun, and 2) because it’s easier than thinking about strategy. That can sometimes cause one to lose the vision regarding branding and what it can accomplish, and get overly focused on the details of day-to-day execution. That becomes a problem because simply executing marketing activities in isolation brings short term and immediate results, while branding builds long-term customer loyalty and equity but requires a broader horizon or perspective. Effective marketing programs require both.

What Is Branding?
Branding isn’t the specific tasks or activities; it’s the strategy or approach one brings to the marketing tasks. It’s a business philosophy. It must be built into the marketing plan from the start. Branding is the consistent and creative use of all available corporate communications vehicles to create a focused product position and identity in the mind of the customer or consumer. It involves the advertising, public relations and sales promotion disciplines, along with customer service, sales and Internet marketing. Your customer's perception of your product or service is constantly in flux, changing and evolving with every competitive move and shifting trend. A strong branding effort must be focused and persuasive, but most of all consistent over time. The goal of branding philosophy is to have all of the elements in your marketing plan “speak with one voice.”

Results. Results. Results.
I understand and agree that marketing as a business tool must perform and be a contributing factor on the profit and loss statement. But manufacturers and suppliers often assume that branding activities will take the place of the sales force, which is an unreasonable expectation certain to result in disappointment. Marketing activities must be accountable, but they must also be evaluated relative to the other elements of the mix and be given time to develop and mature. Great brands are not born, they are built. Ad by ad. Package by package. Press release by press release. That doesn’t mean giving up on short-term sales efforts. That’s why we have sales promotion tools like coupons and rebates and samples and POP materials. But ultimately to be successful you need to move consumers through the brand equity-building process by 1) generating awareness, 2) stimulating interest, 3) encouraging trial, 4) facilitating re-purchase and 5) rewarding loyalty. That is what branding is all about, and it seldom happens overnight.

What is the Key to Successful Re-branding?
The brand-building process is a dynamic one. Your brand should evolve over time and your key selling message should become more refined and focused as the brand matures. Course corrections will undoubtedly become necessary. That is not an adverse event, nor should it be viewed as a mistake or a failure. Its often just part of the product lifecycle.

For example, let’s consider the most fundamental of branding shifts, specifically a change in graphic design direction for your packaging. Since your package is your face to the consumer, launching a re-design is an important step. Here are some guidelines to follow in successfully managing this important transition.

Assess your risk. Just because sales are down doesn’t mean that the packaging is to blame. Or your logo. Or your advertising campaign. There is risk in moving away from an established image or direction. Which doesn’t mean it’s not the right thing to do. It just means that you should think through what is at risk and assess the downside before proceeding.

Understand why you are making the change. If you are completely changing the positioning of the product in the marketplace, it may sometimes be easier and more productive to create an entirely new brand. Old attitudes die hard and convincing the consumer that what once was “A” is now “B” is generally an uphill battle, unless you have a lot of money to drive home the message. We learned that lesson at Nature’s Way when we introduced vitamins under the Nature’s Way leaf. If you are simply trying to update your look, refresh existing graphics or even move to an entirely new design, it is best to keep your product positioning and key selling message constant to avoid confusing the consumer.

Understand where your existing consumer equity lies, and protect it. Ideally you have a bank of qualitative data gathered through focus groups or customer surveys which tells you how consumers perceive your brand generally and your current packaging specifically. Unless there is some compelling reason not to, it is usually wise to maintain some graphic ties to your past look and image. Those “ties” can take the form of a logo, color scheme or central visual. Even perhaps an art treatment or dominant typeface. Assuming that you have built some consumer loyalty over the years, you want the consumer to readily recognize the brand on the shelf. This is a critical and sensitive issue, because most manufacturers and suppliers tend to underestimate the awareness and loyalty they have built with customers. How often do we walk into a retail outlet looking for a product whose name we cannot remember exactly, but whose packaging we immediately recognize? Think through the consumer’s past and current relationship with your packaging, and then proceed accordingly. The same goes for a re-design of your logo or even an established advertising campaign.

Phase in the new look gradually. As soon as you announce the new design on an existing product, retailers and sales brokers and distributors will want to send back their old to get the new. It is usually wiser to phase in the new approach and then hype it once you reach critical mass at the point of purchase. If it’s a new brand to the market, then fire away. The more noise the better.

A Brand-Building Attitude is Key to Your Success
Whether you are a manufacturer or a supplier, branding your ingredients and finished goods effectively will reap many long-term benefits. The average U.S. company loses half of its customer base every 5 years. Brand loyalty overall is declining at a record pace. You can stand by and watch your market share slip away, or you can start today to brand your products more aggressively. It starts with a sound strategy and plan. Good execution is only valuable if you are doing the right things. Start from the beginning and infuse a branding perspective into your marketing efforts.

Jeff Hilton is president of Integrated Marketing Group. He can be contacted at (801) 538-0777, or visit www.imgbranding.com.