What is a Brand Strategy And Why is It Important?

Did you know that as of March last year, only 80 percent of startups survived after one year of their launch? According to business owners, one of the main reasons for failure was ineffective marketing.

Not just startups, but even large traditional companies have succumbed to failure due to poor branding and marketing strategies. One such example is Kodak. Kodak’s brand was synonymous with photography with their print processing methods being global and technologies ahead of the competition; they invented the digital camera way back in 1975. However, even a pioneer and giant like Kodak ultimately came crashing down because the company didn't change their strategy with the market.

This clearly establishes the significance of having an effective marketing plan and a relevant brand strategy. In this article, let us explore what a brand strategy is, its elements and more.

What is brand strategy?

Simply put, brand strategy is a set of long-term plans developed with the goal of achieving a series of long-term goals for a business. A good brand strategy ultimately improves brand recall and establishes your company as familiar and identifiable in the minds of consumers, eventually influencing their purchasing decisions.

One common misconception about brand strategy is that it is a singled-out tangible thing like a product, logo, website, or the name of the company but in reality, it is all of that and more. It is a hard-to-pin-down feeling that separates powerhouse companies from forgettable ones.

Understanding the purpose of a brand strategy

For growth and scalability, a well-defined brand strategy is a must as it affects all aspects of a business- from aligning goals with consumer needs to syncing with current emotions and competitive environments to industry trends.

A brand strategy is a holistic approach to how a brand builds identification and favorability with customers and potential customers, and it encompasses several different elements like voice, storytelling, brand identity, brand values, and overall vibe.

Consistency is key to brand strategy

When it comes to brand strategy, consistency is key. It helps build trust, loyalty, and credibility with all stakeholders, including clients, customers and partners. A consistent brand strategy helps businesses provide a cohesive experience and build lasting connections.

Tapping into emotions

Almost two decades ago, Marc Gobé created the concept of emotional branding and detailed it in his bestseller book The New Paradigm for Connecting Brands to People. This philosophy advocates the observation that connections can take place on an emotional level in relationships between brands and people. Therefore, an emotional branding strategy enables businesses to develop a relationship with consumers.

This bond helps etch a certain product or brand in the minds of consumers and can be achieved by creating content that panders to their egos, dreams, needs, and aspirations. A Harvard Business Review found that this tactic can be over 50 percent more effective than a non-emotionally targeted advertisement.

Keeping up with changing consumer needs

A flexible brand strategy is a must, especially in today’s era where consumer needs and demands are ever-evolving. With a flexible brand strategy, the brand's visuals and strategy can be easily adapted to reflect evolving core values, focus, and consumer needs in a continuously changing market. Many businesses do not realize the importance of developing a strong and flexible brand but if history has taught any lesson with brands like Nokia and Yahoo that failed to innovate and evolve, this is something not to be taken lightly.

Employee Involvement is key to brand strategy

Employee involvement is yet another important aspect of any brand strategy. The participation of employees from all departments in various activities help the business reach and maintain its goals, mission, and brand position, and thus it is vital to have as many team members involved in brand strategy meetings as possible. From the front end to the back end- all aspects matter, and to be able to present a cohesive brand face, having input from all departments is crucial.

Reward customer loyalty to keep them engaged

According to a study by Accenture, the majority of consumers are willing to pay more to brands that meet all their needs and reward loyalty. In another study by McKinsey on loyalty, 62% of members in a paid loyalty program are likely to spend more with that brand.

What are other brands up to?

Competitive awareness and monitoring are also important. This not only helps brands keep up with emerging industry trends but also helps develop a competitive strategy. Competitive brand positioning is basically a brand strategy that defines how your business will establish and maintain a competitive advantage.