How Branding Works?
What is a brand? We all are interacted by many different kinds of brands all day and night such as, maybe your preferred coffee, your hair shampoo, your sofa, your furniture, and many more. But, what is brand management? How do we identify it? How branding and brand management help sustain our businesses? We can start with identification and later I’ll be talking about what a brand manager does. But to start we need to understand what is brand and branding and what’s the process of brand valuation. How do you value a brand as an asset? Also, it’s good to know accountants are very strict about it, why? Because of things like taxation.
Brand management covers many aspects of a business like, focusing on business purpose to align with the brand purpose. Brand purpose, depending on the industry type, can be understood from the slogan of the organisations. Organisations like Pepsi Co, Coca Cola or Red Bull. For example, Red Bulls’ slogan is, Red Bull gives you wings, and it’s very easy to understand what is the message. And, its meaning Red Bull gives you energy, super power, and feel young. But the most common message is known as power and energy. So, this is where the message sits on the customers mind and there is an emotional feeling that has been created by the slogan. This is one of the spaces where the name becomes known as a brand component. Also, it is important to note that logos, virtual features and applications, a name, e.c, are just small parts of a brand and there is a lot more about brand when it comes to revenues, where brand actually sits on your business/organisation balance sheets.
The core of business in any kind of form is its brand. And it is the brand purpose and business purpose should really align to sustainable performance. For example here we have Tesco business model is built on Reinvesting, Customer, Channels, Products and their core and main focus is on Reinvesting.
Reinvesting is to improve Tesco for customers, committed to becoming more efficient and reinvesting some of the savings, to improving the shopping trip. The reason for this reinvestment is clear: they say, the better a job we do for customers, the more we will improve sales; the more our sales improve, the more we can reinvest. Tesco exists to serve customers – and our business model has customers at its core..
Customers
They listen to our customers and act on what is important to them to deliver the best shopping trip: price, service, range and availability.
Channels
To bring the best products to customers, we work through a range of channels – from small shops to large shops and through our growing online business. As part of improving our offer, we are investing in making our channels even more efficient and convenient for our customers.
Product
The offer we create for customers is developed by our Product team. Our ways of working in this team have been rewritten with an absolute focus on fair, transparent, mutually beneficial relationships with suppliers. The Product team works with our suppliers to source the best-possible range of quality products that meet and anticipate our customers’ needs.
Now time is to think about what is Tesco’s business purpose and brand purpose? Well, one of the ways to identify a brand’s purpose is to look at its slogan, like Tesco’s “Every little helps”. And, the message is that every help as little as possible matters to us and we aim to bring comfort and create the best customer journey “Experience is one of the three E’s models focusing on consumer shopping experience”. So, Tesco’s brand purpose is the best customer journey. Also, Tesco’s have saved money by reducing costs “Efficiency is one of the three E’s models focusing on being cost effective” to reinvest in the customer journey. Via its channels it actually aims to improve quality products and try to link convenient access to its channels for its consumers “Effectiveness is one of the three E’s models focusing on improving products and services”.
Now you know what the 3Es model and they are, Efficiency, Experience, and Effectiveness. To earn more money must align the business purpose with brand purpose and to do that all these three E’s should get aligned in action. In the next brand management blog I will talk about the 3B’s model. What is it? Why is it needed? How do we align them?
MBA Blogger 