Brands run our lives daily. We usually buy things because of the brands. The success and failure of a business can be very much attributed to proper branding.
That’s why businesses spend millions on branding. You see, branding creates many ripple effects, including:
- Better Recognition
A well-designed brand serves as the “face” of your business. It is one of the first things your potential customer sees before spending on your products or your competitors. - Better Business Value
If you want to future-proof a business, branding is one of the key components, as a strong brand will increase the value of the products. A good branding foundation will also open new investment opportunities in the future. - Easier to Get New Customers
Have you ever heard a friend saying, “I got an excellent service from X brand.” and showing you the picture of the brand? The effect on you is that you will be more inclined to buy from the brand because it has established its connection with you. - Better Employee Sense of Belonging
Internally, a good brand can help your employees feel more empowered. With a good brand, employees will feel highly regarded in their professional circle because they work for the brand. I know of a friend who proudly says, “I work for Google,” and he gets admiration from his peers. - Builds Customer Loyalty
If you want to get returning customers, brands will be one of the keys to building customer loyalty. A well-established brand will help build loyalty amongst its customers. That’s why we often see customers returning to Starbucks because of Starbucks’ strong branding.
As you can see, branding is very important and should be the core activity of any business.
What is a Brand?
Let us define “What is a brand?” A brand builds an impression in the customers’ minds that emotionally drives them to establish a long-term relationship.
There are 3 keys that we must highlight in the above definition:
- A Brand is an Impression
A brand builds an experience in the customer’s buying journey. From the customer’s experience, it will form an impression in the customer’s mind. - A Brand Should Drive Emotions
We have heard of the “battle of Android and Apple products,” where we see 2 distinctive camps of supporters. Brands that drive the emotional aspects of the customers will help strengthen the brand’s image. - The Purpose of Branding is Long-term
We see how people queue up for new iPhones at every launch umpteen times. This phenomenon results from strong branding where Apple customers keep returning for the latest iPhone.
If you want to build a strong brand, it is important to keep the above keys in mind.
You see, a brand is not just a logo or a design. It speaks volumes about the business and what it represents.
That’s why branding should never stop at just the logo design. The business should actively advertise and promote its brands and what it represents. This advertising spending will return back in multiple folds in the long run.
Example: The Nike Brand
Let’s look at one classic example. We know this famous swoosh logo:
It’s the logo of Nike. Do you know how much Nike paid for this logo? The answer may surprise you: $35. Yes, it was only $35. On the surface, it may look like a steal.
However, a logo is nothing without advertising and promotion. With the logo, Nike spent heavily on advertising, with a reported $0.5 billion dollars in 2009 via multiple channels like sponsorship, celebrity endorsements, etc.
Success with Micheal Jordan
Amazingly, Nike’s partnership with Micheal Jordan came with unexpected success. In 1984, Nike inked a 5 years deal with Micheal Jordan for “Air Jordan.” It was reported that Nike spent $2.5 million for the deal, doubling what Adidas had offered, and Micheal’s first choice was Adidas.
Nike expected to sell about $3 million worth of shoes in 3 years. They were wrong; Nike went on to sell $126 million in the first year alone!
Today the value of the Jordan brand is worth $10 billion dollars. It’s a win-win situation for Nike and Micheal Jordan and an advertising campaign with unexpected results.
The partner saw Nike’s brand recognition goes higher than their competitor, creating the “Sneaker Culture,” even after Micheal Jordan’s retirement. According to TheRichest, “Nike saw a continued boost in sales even after Jordan had retired from basketball. This saw a new generation of customers buying Air Jordans who had no idea about the identity of Michael Jordan. They were buying shoes for brand recognition.“
We may not see the same success as the Nike-Jordan partnership, but we may never know how the promotion of the brand can help give unexpected results.