Invest In Brand

24 Aug 2011, Posted by Samantha in brands, 0 Comments

CO-OP’s very own Creative Partner, Paul Newman, enlightens us on how the power of brand investment has both sustained and created growth in certain companies through a downturned economy.

INVEST IN YOUR BRAND

As we witness market volatility on both sides of the Atlantic with more European bail- outs and the U.S. coming to grips with a historic downgraded credit rating, it’s unsettling to think what the future may hold. As a CEO, entrepreneur, or business leader, how can you prepare and protect your company so that it will withstand this kind of unpredictable turbulence? That’s the billion dollar question.

One of the key things we’ve observed is that successful companies think long-term and see the big picture. This means being smart about aligning business strategies with an overarching brand vision. This takes foresight, confidence, and belief in your product and people.

With this fundamental understanding in place, you have a solid foundation for creating enduring company value. Here are a few brands that have subscribed to this way of thinking and have outperformed the market over the past five years:

Brands that got funny

Volkswagen (VOW) +96.45%*
In a time of uber-sharable media, the web is filled with people trying to find or make the next viral, hilarious clip. Volkswagen’s laugh-out-loud campaigns and approachable identity make it a brand that not only consumers want to buy, but a part of culture that we’ve all become a part of.

Brands that got epic

Nike NKE +108.44%*
Certain brands can inspire you to a point where you feel bigger than what you are. Nike’s heroic attitude has garnered it loyal consumers who truly feel like the Nike brand can propel them to greatness, no matter what obstacles they may be facing.

Brands that got real

Apple AAPL +485.08%
To put it simply, Apple has created its own world, and we all want some real estate. From its cult-like product following to its experiential, destination stores, its brand is alive in all its forms. This is the brand to catch.

Brands that got different

McDonald’s MCD +140.97%*
It’s important for a brand to be true to itself at all times, but the ability to adapt to your consumer is just as integral to success. McDonald’s embodies a staple of our culture that still consistently evolves, to keep its consumer base smiling and hungry for what’s next.

So treat brand as an investment. Here are a few things to consider:

Create a true brand story: Think of Brand as your DNA — it’s at the core of everything your company stands for. A distinctive positioning in the marketplace (what it stands for), a unique identity that stands out (what it looks like) and a clear voice that delivers the right message (what it has to say).

Make a brand connection: Think of yourself as the consumer — to get news updates, you log on to an online newspaper more than a few times a day, you get alerts on your smart phone, and you’ve probably signed up for RSS feeds. To connect with your friends, you can go onto Facebook rather than wait for a weekend get-together. And for a job search, you’re probably on LinkedIn. If a brand has to compete for your attention in this world, it needs to engage you through multiple channels.

Give your brand value — internally and externally: Think of your brand from an internal and external perspective. Your employees can be your biggest brand ambassadors if given the opportunity. Take Pret A Manger, a UK chain offering fresh (made daily!) fast food that’s exploding globally. The company motivates its staff to live the Pret brand everyday with its customers and gives performance incentives via £50vouchers — a payment that Pret calls a “shooting star.”

Use Brand to Align Business & Marketing: Marketing is too often treated as a simple cost center. Make use of non-traditional business thinking to drive solutions that achieve business goals. Use brand to align business, communications, and marketing teams in a more integrated, seamless way that can have a big impact your bottom line.

Brand is an investment on many levels. We feel that it’s not only the true heart of a company—it’s also a living breathing force that should continually be evaluated for maximum performance. Whether you’re looking at it short or long-term, a strong brand will succeed in even the most tumultuous of markets.

 

*Changes in stock value were all acquired from Google Finance and represent change between the periods of August 2006-2011.