Devising A Branding Strategy

There is a reason why the biggest brands in the world invest considerably in branding. Whether it is to announce a new line to complement its existing products, or to create a separate offering altogether, branding is important.

Not only does great branding help generate awareness, but it also defines the USP, tone and communicates the value propositions effectively. Most business owners and marketing professionals struggle when it comes to devising the best branding strategy.

In this resource article, we speak with experts at a leading brand strategy agency. We highlight the following important details in the article-

1. Meaning and Definition of Brand Strategy
2. 4 Major Brand Growth Strategies in 2021
3. Mistakes to Avoid when Devising a Branding Strategy
4. The Final Takeaway

If you are a Founder, CEO, or Marketing Head entrusted with the task to devise a brand strategy, this article is for you.

Brand Strategy: Meaning and Definition

In very simple words, a Brand Strategy refers to strategic planning for the businesses’ overall long-term sustenance and growth. A brand strategy is targeted to align all the different verticals within a business organization. For example, a brand strategy’s plans and executions need to be handled by the Sales, Marketing, CRM, and other teams.

All brand strategies are formulated towards achieving the following objectives-

• It needs to appeal to the consumers and allow them to strike an identification with the brand. Addressing the pain points and presenting the brand as a solution.
• The brand strategy needs to be in line with specific stories and emotions that align the consumer’s interests with the business. The brand’s storytelling narrative is critical.
• Brand strategy should be able to effectively set apart the business from others in its competition. In other words, it should give the business a competitive advantage.

A brand strategy always has at its starting point the goals and visions that the key stakeholders have for the business. In this way, it works best when you have certain defined objectives. Questions like- what are you trying to achieve with the brand? Or, who is the target audience that you want to attract?

You also need to be careful about not committing the mistakes that are associated with branding. This will allow you to create a strategy that helps guarantee effective ROIs.

List of 4 Major Brand Growth Strategies in 2021: By Branding Experts

In this section, we are going to list down the four different types of brand growth strategies that businesses need to be aware of-

1. Line Extension-

In this brand strategy, a business extends its range of offerings to the customers in response to their demands.

For example, a Five-Seater SUV is launched in a Seven-Seater Configuration by the auto brand in response to customer demand. This means that the same product is now able to target an extended customer base.

Customers who have the requirements for a five-seater one can continue using the product, while a new set of customers can be attracted with the seven-seater one. It pitches the brand as an entity that is ready to take feedback.

2. Brand Extension-

A number of brands want to branch out, albeit within their own niche, by offering solutions. A bigger brand in one area might look to use its goodwill and build on the credibility in a newer area of business.

To explain the same with an example, a brand like Hitachi that has a range of home air conditioners now wants to start a product line for commercial air purification devices.

It already has the expertise and goodwill from its existing products and would not want to stretch its expertise in a related niche. This is something that helps the brand diversify.

3. New Brand-

This is probably the most challenging one. It involves setting a new branding strategy for a business from scratch. However, it also gives the biggest scope for experimentation and creating new ideas.

In this regard, everything from marketing fundamentals to CRMs needs to be defined. An entirely new brand in a competitive business ecosystem requires a lot of thought, expertise, and the right support systems.

By hiring a specialist brand agency that has experience in handling similar businesses like yours, you will be able to successfully carry out the same.

4. Flanker Strategy-

There are different ways how brands target consumers psychologically. In some instances, they use a flanker brand strategy to pitch their own products in front of a target audience.

This is done at either end of the price spectrum. A similar product that is being pitched in the same launch can help attract the attention of the target consumers.

They would want to purchase a product that has more features, is better looking, and ultimately is more expensive. Smartphone brands usually pursue this flanker strategy to push the sales of expensive models.

Brand pursue any one of the branding strategies when they are launching a new product line, extending the existing ones, or starting a new business altogether.

Mistakes to Avoid when Devising a Branding Strategy

In this section, we are going to outline some of the major mistakes you need to avoid when devising a branding strategy.

• Firstly, a brand strategy is never something that is pursued over a short period. This means that you cannot expect to pursue a brand strategy in the hopes of getting a quick return. This is never the case. A brand strategy is always a long-term project.
• Secondly, working with inexperienced brand strategists is a fatal mistake. successfully formulated and executed brand strategies require specialized agency work. This means that you only need to work with agencies that have prior experience.
• Thirdly, businesses should never try to pursue branding for more than one entity at a time. In other words, the focus, emphasis, and concentration of manpower should be focused on one brand or product at one point in
• Fourthly, branding is not about outlining the benefits of your business or product. IT is about presenting those features and functionalities in answer to the problems of customers. Your branding requires you to identify the pain points of your customers.
• Fifthly, mistaking branding for marketing. Both are unique and distinct entities in their own rights and should not be confused with one another. Branding is understanding and showcasing what your brand is. Marketing is spreading awareness. A fine line!
• Sixthly, brands need to stop thinking of B2B and B2C branding as the same. There are fundamental differences between the two. When it comes to target audiences, goals, purchase considerations, and other factors, B2B and B2C branding are poles apart.
• Lastly, branding is not all about your brand’s visual cues and identity. To relegate branding to a change in logo is a cardinal mistake that you need to avoid making. The logo or any other visual cues are just a small part of what branding is.

The Final Takeaway

With digital playing such an important part in branding, businesses need to start taking it far more seriously. In this article, we have tried to outline some of the key factors that you should be paying attention to when devising a branding strategy.

If you have any more questions on devising a branding strategy that you would like us to answer, let us know in the comments below. We will be more than happy to clarify as many of your doubts as possible.

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