Here's a big statement, "Branding is not rocket science".
Sure there is science involved but in the end branding is as much art and gut instinct as it is hard numbers. But what you should know is that a good solid brand can be worth as much as 70% of a company’s value!
A few months ago I did a survey of a couple of thousand of readers of my Business & Brand News and I asked them this question: “Suppose I send you to purchase a simple pair of good quality, half carat diamond earrings. You can bring your goodies home in a plastic bag from Wal-Mart, a neatly wrapped package from Bloomingdale’s, or you can carry your purchase home in a distinctive blue box from Tiffany & Co. Tell me,”, “How much would you expect to pay at each of these stores?”
Two hundred dollars is the average Wal-Mart estimate.
Four to six hundred, for diamonds from Bloomies.
And the bright blue box from Tiffany carries a hefty premium… $800 and up, is the average audience response.
And that folks is the value of a brand. Brand value is a matter of relativity and could be expressed as “the premium a product or service can command over and above the cost of production.”
But what about building a brand from scratch? “Unique promise of value” These are the first three words that you have to employ in your business if you want to grow your business into a Big Brand.
“What is your Uniqueness”? This is NOT what you produce or deliver as a service; it’s the unique twist that you put on it that makes you different from the competitive set.
“Keep your Promises” This is probably one of the biggest opportunities that most companies have, because your competition is simply not keeping their promises for most of the time.
“Deliver Value” What your customers pay for your products goods or services is one aspect of the transaction, but the most important component is the perceived value that they got from, during and after the transaction.
Without a “unique promise of value” you become the “me too” brand. When your promise is not unique you are left to selling on price with no hope of commanding a premium for packaging your diamonds in little blue boxes.
Here’s what I know after 35 years of growing brands: Although there are many ways to define a brand the key points are that brands describe the way our business is perceived by the customer, if you want to sell on more than a low price you must be perceived as being a unique promise of value, and that every impression at every touch point must be identified, measured, and managed!
Think: Little Blue boxes!
NOTE: All rights reserved, but please feel free to use this article in any of your marketing communications as long as you give the following credit: Jack Sims is the founder of two international corporations including America's largest marketing agency. He is also the author of two business growth books including "Growing small Businesses into BIG Brands" and "How to Seriously WIN at Business & Golf". He is a guest lecturer at the Institute of Business (Trinidad), a member of the National Speakers Association and is a Professional Golf Teacher in New York.