Brand strategy

Brand strategy defines the long-term plan for developing and positioning a brand to achieve specific business objectives. The discipline emerged alongside brand management in the mid-20th century but gained distinct recognition through the work of consultancies like Interbrand and Landor during the 1980s^[1]. A well-crafted brand strategy aligns every organizational decision with brand purpose and values.

Unlike tactical marketing activities, brand strategy addresses fundamental questions about identity, differentiation, and value creation. It provides a framework that guides product development, customer experience design, communications, and corporate culture.

Core Components

Effective brand strategies incorporate several essential elements:

Brand Purpose The reason the brand exists beyond profit. Patagonia's purpose centers on environmental protection. TOMS Shoes, founded by Blake Mycoskie in 2006, built its brand around giving. For every pair sold, a pair was donated to children in need^[2].

Brand Vision Where the brand aspires to be. Tesla's vision extends beyond electric vehicles to accelerating sustainable energy adoption. This vision shapes decisions about solar panels and battery storage.

Brand Values Principles guiding behavior. Southwest Airlines emphasizes humor, humility, and heart. These values manifest in flight attendant interactions and corporate communications.

Brand Positioning The distinctive space the brand occupies relative to competitors. Positioning involves choices about target audience, competitive frame, and key differentiators. Jack Trout and Al Ries popularized positioning concepts in their 1981 book^[3].

Strategic Frameworks

Several frameworks help structure brand strategy development:

Product Brand Strategy Focuses resources on individual product lines. Pepsi-Cola invests heavily in market research to understand consumer segments. Each product receives dedicated positioning and messaging.

Global Brand Strategy Balances consistency with local adaptation. McDonald's maintains core menu items worldwide while customizing offerings for regional tastes. The McRoyale in France and Teriyaki Burger in Japan reflect local preferences without sacrificing brand identity.

House of Brands Multiple independent brands under corporate ownership. Procter & Gamble manages Tide, Pampers, Gillette, and dozens more as separate entities. Consumers often don't realize common ownership. This structure allows targeting different segments without brand confusion^[4].

Branded House All products carry the corporate brand name. Google, Apple, and Virgin follow this approach. Brand equity transfers across product lines. New launches benefit from established trust.

Differentiation Strategies

Brands can differentiate through various dimensions:

Cost Leadership Walmart promises everyday low prices. Costco's membership model enables wholesale pricing. IKEA designs for manufacturing efficiency.

Quality Leadership Mercedes-Benz emphasizes engineering excellence. Rolex positions as the pinnacle of watchmaking. Premium pricing supports quality perceptions.

Innovation Leadership Apple consistently launches category-defining products. The iPod, iPhone, and iPad each transformed industries. Design innovation reinforces brand distinctiveness.

Values-Based Differentiation Chipotle differentiates through ingredient sourcing, using farms rather than factories. The "Food with Integrity" platform resonates with health-conscious millennials^[5].

Implementation Considerations

Translating strategy into action requires attention to multiple areas:

Brand Guidelines Document visual identity, voice, and messaging standards. Coca-Cola's brand guidelines span hundreds of pages covering logo usage, color specifications, and photography style. Consistency builds recognition.

Employee Alignment Staff must understand and embody brand values. Zappos famously offers new hires $2,000 to quit if they don't fit the culture. This screens for brand alignment.

Customer Experience Every touchpoint reinforces or undermines brand strategy. Ritz-Carlton empowers employees to spend up to $2,000 resolving guest issues without approval. This policy supports the brand promise.

Measurement Systems Track metrics aligned with strategic objectives. Net Promoter Score measures advocacy. Brand tracking studies assess awareness and associations. Financial models estimate brand value contributions.

Brand Strategy Evolution

Digital transformation has reshaped brand strategy considerations:

Platform Brands Amazon, Alibaba, and Uber created new brand models as multi-sided platforms. These brands facilitate transactions rather than manufacturing products.

Community-Driven Brands Glossier built its cosmetics brand through community input. Customers co-create products and generate marketing content. Traditional brand control diminishes.

Purpose-Driven Expectations Younger consumers expect brands to take positions on social issues. Silence is increasingly interpreted as complicity. Ben & Jerry's consistently advocates for causes aligned with its brand values^[6].

Dollar Shave Club disrupted the razor industry through irreverent branding and direct-to-consumer distribution. The company's 2012 launch video cost $4,500 to produce and generated 12,000 orders in 48 hours. Unilever acquired the brand for $1 billion in 2016.

Infobox4 See also

• Brand
• Brand management
• Marketing
• Strategy
• Product
• Customer
• Organization

References

• Ries, A., & Trout, J. (1981). Positioning: The Battle for Your Mind. McGraw-Hill
• Aaker, D.A. (1996). Building Strong Brands. Free Press
• Keller, K.L. (2012). Strategic Brand Management. Pearson
• Kapferer, J.N. (2012). The New Strategic Brand Management. Kogan Page

Footnotes

[1] Interbrand, founded in 1974, pioneered brand valuation methodologies and strategic consulting.

[2] Mycoskie founded TOMS after witnessing shoeless children during a 2006 trip to Argentina.

[3] "Positioning: The Battle for Your Mind" remains one of the most influential marketing books, with over a million copies sold.

[4] P&G's house of brands strategy dates back to Neil McElroy's brand management system introduced in 1931.

[5] Chipotle's commitment to responsibly raised meat and organic produce differentiated it from competitors like Taco Bell.

[6] Ben & Jerry's has advocated for climate action, racial justice, and LGBTQ rights through product names and corporate campaigns.