A Superbrand is Invaluable
14/10 2009
Too many companies, and their managements, are still unaware of the fact that their brands are their main task and responsibility – even if their brands are their main source of profit.
A couple of years ago the research project, Brand Orientation Index, very clearly proved the link between brand orientation and profitability. This was clear in all lines of business and in companies of all sizes.The brand-orientated companies had approximately twice the profit of the companies which did not focus on their brands.
To be more exact, the brand-orientated companies had an average operating margin of 14 per cent, while the other companies only reached an average of eight per cent. It was quite revealing, though, to note that publicly listed companies were under-represented among the most brand-orientated companies. Brand building takes consistency and long-term views, rather than focus on the next quarterly report.
The conclusion is obvious: The brand is the very essence of the business and should be governed by the board on a very long-term basis. The brand is far too fundamental an asset to be handed over to a marketing or advertising manager. And it’s too important to be the subject of short term and varying advertising campaigns. Positioning and core values are not to be discussed and decided upon by an advertising manager together with an advertising agency. The brand strategy must be carefully discussed, decided on and firmly formulated by the company board and handed over to the managing director to keep as a guiding star for every step on the road forward. And no deviation is to be accepted. Every single staff member is to be informed of, and instructed on, these core values and must realize they are very important representatives and ambassadors of the brand.
When the entire organization really is aware of their role in living and communicating the brand, you are on your way to building a superbrand.
Carin Fredlund
Carin Fredlund is a journalist, author and columnist specializing in monitoring and analyzing marketing and branding. She has covered the marketing industry for 26 years and for 20 years as publisher of the trade magazine Quo Vadis. She has also been awarded “The Bengt Hanser Stipendium” from the Swedish Advertising Association and the prize “Marketing Book of the Year” by the Swedish Marketing Association.