From hidden champion to industry leader

The brand is a key factor for business success, also in B2B. Because in B2B, too, it’s not just the price that counts: the brand significantly contributes to the purchase decision. And purchasing decisions are fundamentally made by people. Trusting a brand is key.

The basis for a successful B2B brand is the clear alignment of the brand with the corporate strategy: how can the brand help to implement the strategy, for example, to achieve growth, enable internationalization or increase profitability? 

Precise brand positioning ensures that corporate goals are translated into attractive communication. The positioning is the foundation for the development of the brand experience. To ensure successful implementation, the brand identity must be systematic, efficient and easy to use. This ensures that brand management cost can be reduced in the long run.

A strong B2B brand 

• creates preference: the brand turns into a preferred brand.
• enables a price premium: the company can realize a higher price compared to similar competing products.
• reduces costs: through high communication efficiency and a focus on one or a few brands, a company increases its profitability.
• reduces risks: established and well-known brands find it easier to introduce new products and services.

In B2B, the brand contributes between 2% and 20% to the purchase decision.² This value is called “role of brand” and depends strongly on the industry and the positioning of the brand.

While the role of brand can be as high as 20% in innovation industries such as med-tech, the brand plays a lesser role in the commodity sector (e.g. basic chemicals), where the focus is on standardized quality and availability of the substances. Positioning also influences the role of brand: premium brands contribute significantly more to the purchase decision than low-priced entry-level brands.

Discover here our detailed guide to B2B Branding.