David Brier said, “If you don’t give the market the story to talk about, they’ll define your brand’s story for you.” Having a specific brand identity, core values, tone, and communicate it efficiently will come a long way in building brand equity.
Why is having a brand important? What are the benefits? The second question is critical to get the decision-makers of your company to support you in building a successful brand.
Benefits of a strong brand
When you picture big brands, you think of Google, Apple, Coca-Cola, Disney, or Amazon. You can also think of big sports teams like Real Madrid, The Lakers or the Yankees.
If you work in a specific industry, you can probably think of big behemoths in the B2B world like Intel, Boeing, IBM, or others.
Having a strong, recognizable brand not only provides a loyal fan base, like for example me, who refuses to drink Pepsi if Coke is available. It will also increase your financial value as a company, the recently mentioned companies have built brands worth over billions of dollars, fueled by sales all over the world.
But for a small business, why does building your brand make sense? You may tell yourself that there is no way to get your business to the level of a Coca-Cola or an Apple, jet you are missing the point. If customers recognize your brand favorably, they will not only become loyal; they will even be willing to pay more. This concept is called premium pricing.
Premium pricing how big can it be?
The best example of premium pricing comes from the water bottle product segment. People pay for the brand because they could get the water from the kitchen sink, or just wait for it to rain to literally have it fall from the sky. However, we can the cases Poland Springs and Fiji water and their prices from Walmart for exactly the same volume of water, just different brands, packaging design, and positioning result in a price difference of almost the double.
Invest in your brand and aim to be a Fiji; you will certainly begin to taste the benefits and powers of brand equity.
How to position your brand?
After seeing the power of a brand, let’s continue using Poland Springs and Fiji as our examples. What makes them different?
There are three factors we can mention: Packaging, use of brand elements, and positioning using points of parity and differentiation.
- Packaging: Fiji has invested in a better package or presentation for customers; it honestly seems like artwork.
- Brand elements: The Logo, slogan, and image. They don’t really provide value, but they are increasing the price. And customers are paying for it.
- Point of parity: Both make it clear that they are water; they satisfied the immediate need to keep us hydrated.
- Points of differentiation: Fiji makes a strong effort to differentiate positioning itself as artisan water, although we know that there is no artisan making water, it’s just H2O. However, their message using their brand elements and packaging becomes an idea and a story that engages with customers.
Packaging matters and can be part of your communication strategy. Remember to communicate that your product satisfies the primary expectation of your customers using the point of parity, but also work hard to differentiate from your competition by describing what makes your product special.
I hope you enjoyed this week’s article. I invite you to mention some of your favorite brands in the comment section below and why you have a special connection with them. Look forward to hearing from you.