BUILDING Your Brand.

Why a branding initiative should be a core element of your strategic business plan

Whether your business is based on the new or old economy, an effective branding initiative should play a critical role in your strategic business plan. Successful branding can provide both business-to-business (B2B) and business-to-consumer (B2C) organizations with a competitive edge in the minds of the stakeholders. Conversely, if a company doesn't own a focused, meaningful branding expression, relationships and loyalty levels with stakeholders (i.e., employees, customers, prospects, suppliers and investors) will become vulnerable, particularly during tough economic times. All organizations must grow to survive. If a prospective customer is unaware of a company's products or services, they may be unwilling to do business with that company. An effective, focused branding initiative eliminates this barrier.

The lack of a branding initiative generally occurs because companies often consider a marketing plan and a branding initiative to be the same thing. While they are closely intertwined, there is a fundamental difference between the branding and the marketing component of a strategic business plan.

Branding vs. marketing plan

Branding is the desired "expression" or promise of a company and its products or services that is firmly embedded in stakeholders' minds. For example, the IBM brand expresses the highest level of technological support, while the FedEx promise of delivery and reliability supports it self-proclaimed leadership role. These corporations have placed the highest priority both on developing and consistently reinforcing their respective promises -- a strategy that turns many business decisions in their favour.

A traditional marketing plan involves the five "p's"--people, product, price, place and promotion, and is the "action" vehicle for supporting a company's branding expression. Each component of a marketing plan should support and deliver on its key promise. For example, IBM consistently communicates and cultivates its brand promise via integrated product/service solutions, pricing, distribution and advertising strategies. Thus, the brand is the company.

Branding and marketing plans are thus distinct, yet closely intertwined and highly synergistic partners in influencing stakeholder relationships and loyalty levels. Branding may be viewed in different ways within the same company. For example, it could be viewed as simply a corporate name and logo or as an advertising campaign. In reality, the essence and goals of branding are much more inclusive. Branding cultivates intimate, credible and trusting stakeholder relationships for a corporation's products and services, and combines with supporting marketing plans to influence purchasing decisions and ongoing loyalty levels.

This is a powerful concept because it represents the essence of any organization. It also recognizes the all-too-frequent reality that how a company perceives itself is not always commensurate with the stakeholders' perception. Over the long term, successful branding builds close, positive relationships by connecting a desired promise with the perceptions of all stakeholders -- a connection that produces a tangible payback on the financial and human resources costs of developing and cultivating a company brand initiative.

Effective branding is more a holistic art than a science. Nonetheless, there are four key guidelines a company should consider when undertaking a successful branding initiative.

1. Achieve internal consensus about the corporate vision and the supporting role branding should play within it.

It is virtually impossible for organizations to establish relationships while lacking a focused vision that unites all employees in a common goal. A focused vision establishes the framework, direction and guidelines to exploit identified market opportunities. It also reinforces the critical role branding plays in embedding this promise.

For example, Sun Life Financial's vision is to become one of the great global financial brands. Employees worldwide are therefore focused on effective brand-building by delivering on the company's promise and strengthening stakeholder relationships on a daily basis. To communicate this vision, one of the company's key initiatives includes a brand guidebook, which is distributed to all employees and endorsed by the CEO. It clearly identifies Sun Life Financial's brand strategy and specifies how each individual can support the promise on a daily basis to achieve the desired goal.

Coca Cola and Microsoft are other examples of organizations that have entrenched their brands firmly with the stakeholder. These companies have established credibility, trust and loyalty by consistently delivering on their promise. Despite increased competition, both organizations place an unwavering emphasis on branding, because it has proven to transcend both time and changing market dynamics.

Some questions to consider:

* Have you identified your key areas of opportunity?

* Does your organization have a meaningful, focused vision that inspires and unites your stakeholders?

* Does your company have an effective branding program that supports your vision and builds intimate relationships with your stakeholders?

2. To enhance the probability of success, ensure the strategic branding process is a thorough one.

Branding involves much more than simply designing a new logo or packaging. Rather, a successful branding program entails an in-depth analysis of a company's history, culture, strengths, competitive factors and market opportunities. This detailed analysis is therefore essential in developing a strong connection between the realities and the perception of a brand. A strategic branding initiative entails the following key components:

* A clear company vision and associated areas of opportunity

* Identification of the target group

* A unique, focused promise to exploit areas of opportunity

* Awareness, perception and relationship-building goals

* Integrated branding communications vehicles that support the promise through graphics, advertising, PR, Web site, newsletters, strategic alliances, etc.

* Tools to track performance results vs. goals

Clearly-defined objectives also mean that the branding evaluation process is less subjective. Occasionally, "outside the box" branding recommendations may take a company in an entirely new direction in resolving complex business issues or exploiting market opportunities. The decision to approve an aggressive or unique branding recommendation is much easier to make if the appropriate criteria have been met.

Some questions to consider:

* Do you have the appropriate market information (or access to it) needed to develop a branding initiative?

* Are you receptive to the in-depth business analysis required to develop an effective initiative?

3. Senior management should visibly support the ongoing branding endeavour to all stakeholders.

Once approved, it is critical that the CEO and senior management team commits fully to the new program. This dramatically improves the probability of employee buy-in. Employee communications should emphasize the importance of this major corporate endeavour in generating positive momentum. The same initiative should then be introduced to external stakeholders, supported by an integrated, ongoing marketing "action" plan.

Some questions to consider:

* Is your identified market opportunity worth devoting the time and resources to supporting a new branding initiative?

* What is the impact of failing to undertake a strategic branding initiative?

4. Understand the market opportunity presented by the digital economy and the importance a successful branding initiative plays in exploiting it.

In the old economy, marketers established the traditional five p's. Products and services were sold to customers through bricks and mortar channels. Mass communication vehicles (i.e., television, radio, etc.) were one-way only, and the organization controlled the message. Pricing was fixed and couldn't be negotiated. As a result, consumers had little influence on a company's business strategies.

The Internet has changed these traditional marketing practices dramatically. By providing the information and two-way communication tools to compare your offerings with those of your competitors, you are giving power to your stakeholders. In effect, companies are no longer selling to customers. Rather, customers and prospective customers are now able to easily compare and choose between competing offerings from the comfort of their homes. As well, educational information is easily accessible through various avenues. For example, Web agents scan Web sites 24 hours-a-day to compare offerings and provide subscribers with preferred, credible vendor option lists. If an organization's offering is not competitive, or if it is an unknown Web presence, it very likely won't get the business.

Consumer chat rooms discuss which products and services don't live up to their promise -- and bad news travels fast. Now an employee's mistake can be communicated to the world, with potentially dire consequences. At its absolute worst, an organization can lose its hard-earned equity within the e-world in a matter of days. A frightening prospect, surely, but in the new digital economy, an entirely possible one.

On a positive and far more salient note, there is huge potential for new business (primarily B2B) in the wired world. Unlimited opportunities exist to expand your brand and develop strong relationships globally with customers, prospects, suppliers, employees and investors. By identifying specific, realistic Internet goals (i.e., brand-building, strategic alliances, and sales objectives), you can gain a competitive advantage within the new economy.

Goal-oriented, Web-savvy companies that pre-emptively establish a strong branding presence on the Web and deliver on their promise will generate a great deal of interest. Consequently, they are also far more likely to appear on preferred business lists. Because research has demonstrated that Web purchasers prefer to buy established brands, effective branding is important in the e-world. An Ernst & Young study concluded that the top two (of nine) customer attractions to Web sites are: 1) a well-designed, easy to use site and 2) a strong company brand.

This finding is hardly surprising, as e-stakeholders need to have confidence in a company before they do business. If a brand is not established, there is no relationship equity.

Four Steps to Successful Branding

1. Achieve internal consensus about the corporate vision and the supporting role branding should play within it.

2. To enhance the probability of success, ensure the strategic branding process is a thorough one.

3. Senior management should visibly support the ongoing branding endeavour to all stakeholders.

4. Understand the market opportunity presented by the digital economy and the importance a successful branding initiative plays in exploiting it.

Why should they take a chance with an unknown entity if a competitor's brand offers essentially the same benefits?

Because the Internet transcends both time and distance, an effective Web initiative complements the traditional branding effort by providing an opportunity to expand products and services globally on a rapid and cost-effective basis. This is especially important if the product or service involves a new development or revitalization of a traditional brand promise.

Many of the e-world users are youths. If they represent a company's primary target group, their significant spending power will influence the long-term viability of the brand. Relationships with this segment should therefore be established early on to avoid competitive pre-emption. There is room only for the top two or three brand offerings, and any delay may mean a company is effectively missing out on the new digital economy.

You must be conscientious about how your brand is portrayed on the Web. Old economy executions won't work and are largely a waste of money.

While the established product or service promise should be retained, a different, more creative execution is required to accommodate the nuances of this global medium. A Web site is not about you and your product, it is you and your product. Thus, your content should not be merely read, but rather experienced to develop an intimate relationship with your customers. Focusing on interactive education and your unique value proposition will influence attitudes and purchasing decisions. To build a database of customer information and interests, you should also incorporate interactive capabilities. With this valuable database, ongoing relationships and loyalty can be cultivated by responding to the needs of all stakeholder groups.

Some questions to consider:

* Do you understand the new digital economy and its potential impact on your business?

* Do you have an Internet strategy that exploits your opportunity and manages your risk?

* Does your branding strategy support your Internet initiatives?

* Does your branding expression break through Internet clutter and build intimate relationships with all stakeholder groups?

A successful, strategic branding program connects with all stakeholders and builds strong, intimate and lasting relationships. As with all branding endeavours, it is important to understand that success will be achieved only through concerted, strategically-focused efforts. In today's fast-moving world, branding may well be the only key differentiator between success and failure.

Michel Viau is president and CEO of Ove Design & Communications Ltd., a branding, strategic design and interactive communications firm in Toronto.