What is a brand strategy?
A brand strategy is the long-term orientation of a brand based on the business strategy, with the aim of successfully positioning it in the market, differentiating it from competitors and increasing business success.
What are the dimensions of a brand strategy?
The brand strategy basically includes the clarification of the brand architecture and the definition of the brand positioning. The brand strategy also defines the brand’s stakeholders and evaluates their purchasing drivers.
For a new brand, the development of a concise and registrable brand name is also part of the brand strategy.
What elements does brand positioning include?
Brand positioning is the unique position of a brand in the market compared to its competitors, based on specific characteristics and values.
To this end, a relevant and differentiating brand promise, an inspiring brand story and a concise brand personality are developed. Brand positioning also includes key messages that convey the positioning – along defined thought leadership topics.
The positioning is based on the business strategy and relies on purchase drivers, market opportunities and the corporate vision.
What is the purpose of a brand architecture?
The term brand architecture refers to the structured organization and hierarchy of a brand or brand portfolio, including the relationships between corporate, product and sub-brands.
A brand architecture project clarifies, for example, the question of how many and which brands a company needs to successfully operate its business and reduce costs.
What are the biggest mistakes when developing a brand strategy?
- Unclear positioning: a brand with an unclear positioning does not develop relevance – and will not become a preferred brand.
- Lack of differentiation from competitors: a brand that does not stand out positively from the competition will not attract attention. A clear differentiation is crucial to succeed in a highly competitive market.
- Neglect of stakeholder needs: a brand that does not address the purchase drivers of its customers loses relevance and will also find it difficult to reach new customers.
- Too large a brand portfolio or a complex brand architecture: a brand portfolio that has grown historically or has a complicated structure dissipates the attention of customers and weakens the overall perception of the company. In addition, a large brand portfolio requires considerable financial and human resources.
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