In recent posts, perhaps I’ve been a little sour on marketers’ efforts to emerge from the economic doldrums to provide growth for their businesses in 2010 and beyond. One more sour point, and then I promise to make some lemonade. Fifty percent of the share you lose to private label this year, you will never regain. Stick with me, you optimists – our research shows if your brand can use the recession to jump into the top quartile in your industry, you’ll likely retain that premium position for at least three years.
Here’s the challenge I’m seeing in recent client meetings, from financial services looking to recover to media companies searching for identity. The single biggest asset we have as marketers is also the likeliest thing we de-emphasized as budgets were slashed in the past 18 months: our brands.
In 2008, MLC studied the attributes of high-growth companies (members click here for details). We found that a clear, consistent brand positioning, internalized by the company and executed with single-minded focus, was one of only four drivers of growth.
Fast-forward to 2009 – transition from growth to loyalty – and despite a seismic shift in business conditions, the impact of brand remained unchanged. High-loyalty brands had 62% higher revenue growth than all other brands. Consistent positioning that hinges on an emotional connection still wins.
So why the neglect of brand investments? Why the shuttering of brand-level marketing communications? My sense is that we as marketers haven’t made the case for brand to non-marketers. Ask a non-marketer to define brand (especially your finance partners). Too often, we’ll get a squishy, pie-in-the-sky definition that includes things like “our logo” or “the colors in our print ads.” I wish I was joking.
When understood correctly, the brand and its positioning prescribe for the organization how to achieve growth by differentiating—from competitors—your ability to emotionally connect with consumers. Brand becomes the foundation upon which all other strategic decisions are made – hence why the best companies show unwavering commitment to a well-defined positioning. Brand wins, and they know it.
MLC Members, watch a short video outlining the building blocks of a strong brand positioning. You can also see how Clorox rejuvenated their flagship brands with a laser focus on consistent positioning, and learn how leading companies are establishing emotional connections with consumers through the brand.
