Brand Strategy is important – But why?

Our prospective clients often approach Sunnyday Consulting for help with their branding strategy and the first question that comes up in our discussions is ‘why is brand strategy important?’

We find it a tough question to answer because it’s not a one-word answer, nor can we supply one singular statistical data that would prove the importance of branding strategy conclusively. There is an overwhelming proof interconnected on various levels regarding the importance of brand strategy and it is this complex nature which makes it a tough question.

But we do answer it because if our clients don’t understand the importance, they will never be able to develop one of the foundational pillars of business. After all, branding strategy is what allows successful companies like Pepsi, Starbucks, Bata and Myntra to become recognized instantly. 

Just like a cook has a recipe written or memorized before they start creating the magic in a pot, businesses need to have their brand strategy in place to set themselves apart from their competition and build up a loyal customer base. 

This article is a more elaborate version of what we answer our clients when they ask us ‘Why is brand strategy important?’

So, let’s not waste time and look into the main reasons. But first things first – 

What is brand strategy in marketing?

Marketers conceptualise a strategic plan for a business. This plan includes specific goals and promotes a certain image to the targeted audience regarding the business. The aim is to increase the recognition for the business, generate more conversions and dominate the market. This is a brand strategy.

Oftentimes we have clients who tell us ‘But we have a brand!’ In such cases, an issue arises because of this tendency to use the terms brand and brand strategy synonymously. And we cannot emphasize enough how incorrect this is. 

Your brand is your logo – your symbol which helps your audience identify you.

Your BRAND STRATEGY is about coordinating the different aspects of your brand identity like the workplace culture, product packaging, website look and feel, and advertising in order to promote specific goals. You can call it branding strategy but never brand or marketing strategy. 

By using these two terms interchangeably in meetings and chats about business development you are turning them into corporate jargon, and communication about one of your business’s most crucial components breaks down. 

At Sunnyday Consulting we want to change this. 

Why is brand strategy important? 

Your business requires a brand strategy if you want to build a strong brand. An effective brand strategy allows you to concentrate on your long-term objectives and establishes who you are as a company. It enables you to establish a standard by which you can measure your business development. 

Following are some specific advantages of having a brand strategy in place:

1. You are able to articulate and communicate your company’s Value Proposition

You need to determine your brand’s values and how to convey them to people if you want to have a loyal customer base.  People don’t buy what you do, they buy why you do it. If you want to attract loyal customers, you need to figure out what your brand stands for, and how to communicate that to consumers. Your value proposition is more than just your USP – it’s the total set of advantages that buyers can anticipate when they make a purchase from you.

For example, when you visit Amazon.com, you instantly get to know and understand what’s on offer: a huge selection of products, top-notch customer care, next-day delivery, and access to special offers and discounts. The logo, motto, website look and feel, copy, and customer after-care are just a few of the many ways in which these USPs of Amazon—which make up the total value proposition—are presented.

Essentially, a strong branding strategy conveys a set of advantages across a variety of touchpoints, engaging potential clients and persuading them to choose you over rivals.

2. An effective brand strategy promotes Loyalty and Trust

The classic business adage, “People don’t purchase products, they buy brands,” captures the essence of what a brand strategy can do – create trust in the brand and promote loyalty.

“Customers trust your brand when their experiences consistently match or exceed their expectations,” says Marty Neumeier, author of The Brand Gap.

You will have trouble gaining clients’ trust and loyalty if their interactions with your business are inconsistent. The brand strategy is the driving force behind how customers come to know, trust, and ultimately buy from a specific product or invest in a particular business. Your brand strategy will support and promote the belief that a product will consistently deliver the same results by forging a distinct identity.

3. Brand strategy fosters a prudent decision-making process and laser focus in your marketing efforts

How many times have you adopted a new marketing trend only to realise down the road that it does nothing for you? A brand strategy promotes clarity in the decision-making process. With it in place you won’t be succumbing to the ‘shiny-object’ syndrome. It will constantly be on hand to remind you of your long-term plans and you will end up making prudent decisions. 

Your decisions also ensure a smoother and more successful execution of marketing campaigns by focusing and clarifying the scope of your marketing initiatives. You are aware of your target audience, their interests, and the best way to communicate with them because you have your brand strategy outlined and fleshed out.

You won’t waste thousands of rupees on A/B testing various initiatives; instead, you’ll hit the mark more quickly and increase the return on your marketing expenditures.

4. Your brand strategy distinguishes you from your competition 

Why is a customer buying a Mont Blanc instead of a Parker when both are selling pens which serve the same purpose? Some may say we are forgetting the price factor.

Then why is someone buying the Honda City 4^th Generation instead of the Hyundai Verna when both are sedans within the same price range?

Because these companies have used effective brand strategies that make it simple for potential customers to compare them to their competitors.

Your brand strategy enables potential customers to distinguish between you and the other alternatives in the market.

5. You boost your company value with an effective brand strategy

Brands are tremendously important corporate assets because they are strong promoters of familiarity, repeat business, and trust. 

Take the well-known example of Lego. On the surface, KIRKBI A/S and the LEGO Foundation (the parent companies) is just another toy-maker. However, the value of its particular product brands, which are known and trusted by millions of people, significantly boosts the company’s entire value.

Additionally, companies frequently expand into pertinent industries. Simply adding a popular name to a related product, like “Lego Harry Potter” or “Oreo ice-cream,” might boost its worth right away. 

Having a defined brand strategy demonstrates to potential buyers and investors that you’ve given serious consideration on how to grow the most valuable asset of your business, which can support a high valuation whether you are seeking funding from investors or contemplating an exit. 

6. It helps you to acquire and retain good employees

A good brand strategy is a helpful tool for attracting and retaining the right individuals since it communicates not only a company’s advantages but also its beliefs and mission. We are in an era of the ‘belief-driven’ employee. Today’s employee chooses and stays with a firm based on their beliefs just as much as today’s consumer chooses and sticks with a brand.

A company will automatically attract motivated and skilled personnel that share the same ethos when it is clear about what it stands for. Additionally, workers are more inclined to stick with an organisation that shares their sense of purpose. 

And we do not need to point out how this is essential for your overall success. Employees that are aligned and engaged with your business, work harder, provide better customer service, and increase revenue for your business.

Who should develop a brand strategy?

Anyone who wants to build a reputable brand for their company must give careful consideration to their brand strategy.

Early-stage startups can prevent many mistakes and ultimately save time and money by developing a brand strategy. As an established organisation, creating a brand strategy is important as it can help you re energize your operations and approach problems from a different perspective.

How can Sunnyday Consulting help you?

At Sunnyday Consulting we are particularly interested in the possibilities for small firms to use brand strategy to outperform the competition. The value of branding—and brand strategy—is already well-known among major organisations. However, a lot of small businesses that haven’t yet taken off, have a huge possibility for leveraging a proper brand strategy for success.  

As a brand strategy agency, we’ve assisted established companies and early-stage start-ups in developing and refining their strategies. So, feel free to contact us at support@sunnydayconsulting.com or call us at (+91) 79777 31552.