Branding Tag

Brand Strategy for Mission Driven vs Profit Driven Brands

How to Develop Brand Strategy for Non Profit Brands

How to Develop Brand Strategy for Non Profit Brands

We recently received a question from the Board Chair of a prestigious non profit foundation that supports basic science research around the globe.

“Is brand strategy different for mission driven organizations than it is for commercial organizations?”

It’s an important question for a few reasons. Many education and research non profits consider brand strategy to be appropriate only to commercial entities. Because “branding” is so tightly tied to “marketing” in most people’s minds, and many researchers consider marketing to be beneath them, “branding” is seen as a bad word (see our recent post Branding vs Marketing).

Other non profit brands, such as cultural organizations and international aid organizations understand the power of brand, and many use it to their advantage. Here’s how the approach to brand strategy is different, and important, for mission driven organizations.

Non Profit Brands: Understand, Believe and Support

  • Understand: Everyone involved, from internal to external audiences must understand the mission. People are most enthusiastic about the things they understand best. If they don’t really understand it, and what makes the mission uniquely important, they will never support it. For the strongest and most sustainable brands, you must start with a common understanding. Read how we helped the UC System create clear understanding of their mission and promise. 
  • Believe: Next, audiences must believe in the mission. It must be compelling.  It must be personally relevant. The organization needs to be able to show progress toward that mission, no matter how small. There must be some “there” there for a non-profit to motivate the types of behaviors and investments that will make them successful. A clear brand position, based on a clear understanding of the mission and supported by some proof is necessary to build belief. We helped a program in San Diego that teaches coding to kids inspire community-wide belief in their mission. The result is the League of Amazing Programmers, an aspirational idea that kids and their families want to be a part of.
  • Support:  This is clearly important when raising funds.  If your potential funding sources don’t understand you, personally relate to your mission or believe that you can accomplish what you’ve set out to do, they are less likely to help.  Consistent internal stakeholder support is also critical. In the non-profit world, especially in larger organizations, people may apply their good intentions in misaligned or counterproductive ways. The better they understand and believe what it is they are there for, the more likely they are to align their efforts in the right direction. Our foundational work for the World Wildlife Fund still inspires incredible support for their efforts. 

For mission driven organizations, everything hinges on clarity of the idea that makes your mission unique, meaningful and special.  Your brand strategy must be clear and valuable in the minds of your critical audiences. We’ve enjoyed helping many of our clients in higher education, research, and culture achieve positive and sustainable brand results.

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brand strategy for a commodity

Using Brand Strategy to Differentiate a Commodity

Differentiation is critical for commodities to achieve any marketing advantage. With few exceptions, such as monopolies like the cable companies and one-of-a-kind products like Polaroid was years ago, differentiation is critical to creating a preference or commanding a premium price. If your product or service is not differentiated, there is no reason to choose yours over others, and you will wind up competing on price.

The good news is that there are many ways to differentiate commodity products and services. I used to be in the business of selling flour, shipped by trainloads from the Midwest to large, commercial bakeries on the East Coast. Trains can get delayed for a variety of reasons, so the bakeries needed to build expensive flour storage facilities on their premises for back-up. We built our own flour storage facilities in locations from which we could reach the bakeries by truck within a few hours. This gave the bakeries an assured supply on demand, and it eliminated the necessity of tying up their capital by building storage facilities. In this way, we created a preference and price advantage for our commodity.

There are many other ways to differentiate commodity, such as:

  • Risk – eliminate or reduce your customers’ potential risks.
  • Inventory – offer inventory management or convenience.
  • Financing – develop customer financing options, appeals and incentives.
  • Rewards – consider a rewards program to encourage loyalty.
  • Sustainability – appeals to customers, employees and communities.
  • Packaging – use packaging for convenience, or badging, to stand behind your commodity.
  • Ingredient – create a proprietary ingredient or concept available only in your commodity.
  • Bundle – or unbundle, your products and services.
  • Segment – your market, and tailor your marketing to the most profitable segments.
  • Experience – provide a superior purchase or usage experience: easier, faster, more flexible.
  • Consulting – become an expert in your customers’ industry and become a valued authority.
  • Facilities – showcase impressive facilities, operations and equipment as sales tools.
  • Safety – commitment to the health and safety of yours and your customers’ workforce.
  • Marketing – create appealing marketing materials and concepts.
  • Brand Strategy – build and support a compelling identity, story or promise.

Let’s talk about Brand Strategy: Gasoline is a commodity that relies on differentiated brand strategies. These strategies usually involve ingredient branding: Shell NiTRO gasoline (to protect your engine); Exxon/Mobil Synergy gasoline (Better for the environment); Chevron “With Techron” gasoline (to maximize your mileage).

Some of the most successful brand strategies have been created to differentiate a commodity. Think about Morton’s Salt, Gold Medal Flour, C&H Sugar, Sunkist Oranges. Water, once the ultimate commodity, is now a range of differentiated products aimed at different market segments and desires. Water is differentiated by its source (Fiji, Lake Geneva, Glacial Iceland, Artesian Springs) or by its character (Vitamin Water, Mineral Water, Smart Water).

With a clear brand strategy, good market data, strategic naming and design, creative communications, and resources aligned to support your goals, you can differentiate any commodity to create a preference or command a premium.

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branding_v_marketing

Branding vs. Marketing

Sometimes our clients ask us, “What is the difference between branding and marketing?” The question arises because most people and organizations use these terms interchangeably. Unlike Medicine, Law or Finance, practitioners in the field of brand and marketing don’t share a common professional language. When one doctor says a patient is suffering from nephritis, another doctor will understand that the patient has inflammation of the kidneys. When one lawyer says he has an affidavit, another lawyer will know he has a written statement made under oath.

Ask 20 marketers what branding is, and you may get 20 different answers. To some it may mean creating a logo, to others it may mean developing an advertising or public relations campaign, to others it may mean initiating social media conversations. Because the term “branding” is used to mean so many different things, it doesn’t have a specifically agreed upon meaning. For some clients, especially higher education, we sometimes have to avoid the word altogether, because it not only misunderstood, it is looked down upon as “beneath” academics.

We make a point of telling our clients at the outset of any assignment what we mean when we use particular words, so at least, they’ll know what we are talking about. We fully recognize that others may use these words differently. We use them in this way:

A Brand – is the promise you make to your audiences. Strong brands are valuable assets, because when the promise is fulfilled, it creates an emotional response. Strong brands can create a preference or command a premium and assure a future stream of revenue. The name and visual expression of that promise is called a brand identity, because it gives you a way to identify with the promise being made.

Branding – is about positioning the brand to fill a need, meet expectations, build trust and develop relationships. It’s about keeping your promise differentiated, relevant, compelling and true.

Brand Strategy – is about determining how many brands you need and can afford to support, what each brand should stand for, and what relationships should or should not exist between the brands and the parent organization.

Marketing – is about finding and growing a market for the brand that leads to profitable sales, or in the case of non-profits, that leads to appreciation and support among key audiences.

Marketing Strategy – is guided by business goals, and involves segmenting markets, selecting target audiences, determining pricing, packaging and distribution, integrating media, and executing creative campaigns.

Consider a stand out brand like Nike. The Nike brand promise is to bring inspiration and innovation to every athlete in the world. “If you have a body, you’re an athlete” says Nike. This brand promise demands a diverse, creative attitude-laden execution across the many customer touchpoints. That is branding. Nike’s innovative use of celebrity athletes and digital, social, mobile and retail channels to engage with existing and aspirational athletes, is marketing. Nike’s marketing strategy is highly influenced by the brand promise and expression – and the resulting ads, promotions, communications and offers feel like they could come from no other sports brand.

Bottom Line: We define branding as making, communicating and delivering a promise. Branding is a long-term commitment. We define marketing as finding and connecting with the audiences who will most benefit from that promise. By its nature, marketing tends to planned out with shorter term goals. Marketing strategies and campaigns will come and go, but brands should endure. While definitions of branding and marketing may differ, it is important that people use agreed upon definitions of terms, to ensure that you meet both short and long-term objectives for your business.

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Ten Principles for Renaming, from Alina Wheeler’s Designing Brand Identity V | Marshall Strategy

Ten Principles for Renaming

from Designing Brand Identity, 5th Edition, by Alina Wheeler
We’re pleased to be included in the fifth edition of Designing Brand Identity, by Alina Wheeler. This comprehensive guide to brand identity is a valuable resource for designers, marketers, CEOs, brand builders and internal teams. For the new edition, we contributed a list of key principles to consider when renaming your product or a company.

Ten Principles for Renaming

by Marshall Strategy

  1. Be clear about why change is needed. You should have a compelling reason, and clear business benefits, for going through the name change process. Making a strong case for change – whether legal, market-based or other, will help rise above emotional issues and enable a more successful and meaningful effort.
  2. Assess the impact of change. A name change is more complicated than creating a new name because it affects established brand equity and all existing brand communications. You should conduct a thorough audit of equity and communication assets, to fully understand how a name change will affect your investments and operations.
  3. Know what your choices are. Depending on your reason for change, it can be very difficult to consider change in the abstract. It is much easier to commit to a change when you have alternative names to consider that solve your communication issues.
  4. Know what you are trying to say before you name it.  Naming is a highly emotional issue that can be hard to judge objectively. By first agreeing on what your new name should say, you concentrate your efforts on choosing the name that says it best.
  5. Avoid trendy names – By definition, these are names that will lose their appeal over time. Choosing a new name simply because it sounds “hip” or “cool” generally results in names that wear quickly.
  6. “Empty Vessel Names” require filling. Made-up or meaningless names will require more investment to build understanding, memorability and proper spelling than names that have some inherent meaning. Compare the immediate meaning and relevance of names like Google and Amazon to empty vessels like Kijiji and Zoosk.
  7. Avoid names that are too specific. This may be the reason you needed to change  in the first place. Names that identify a specific geography, technology or trend might be relevant for a period of time, but in the long run they could restrict your ability to grow.
  8. Understand that a new name can’t do everything. Names are powerful tools, but they do not tell the whole story. A name change alone – without rethinking of all brand communications – could risk being seen as superficial. Consider how new taglines, design, communications and other context-building tools should work with the new name to build a rich new story that you can own.
  9. Ensure you can own it. Check patent and trademark offices, common law usages, URL’s, Twitter handles and regional/cultural sensitivities before you decide, and make the investment to protect your name. This is best done by an experienced intellectual property attorney.
  10. Transition with confidence. Make sure you introduce your new name as part of a value-oriented story that conveys clear benefits to your employees, customers and shareholders. The message “we’ve changed our name” on its own generally falls flat. Commit to the change with confidence and implement as quickly and efficiently as possible. Having two names in the market at the same time is confusing to both internal and external audiences.

If you wish to make a meaningful statement, a name change is not enough. The name should represent a unique, beneficial, and sustainable story that resonates with customers, investors, and employees.

Philip Durbrow, Chairman & CEO, Marshall Strategy

Companies change their names for many reasons, but in every case, a clear rationale for change with strong business and brand benefits is critical.

Ken Pasternak, Managing Director, Marshall Strategy

Notable Renaming

Old Name

New Name

Anderson Consulting Accenture
Apple Computer Apple
Backrub Google
The Banker’s Life Company Principal Financial Group
Brad’s Drink Pepsi Cola
Ciba Geigy + Sandoz Novartis
Clear Channel iHeartRadio
Comcast (Consumer Services) Xfinity
International Business Machines IBM
Datsun Nissan
Diet Deluxe Healthy Choice
Federal Express FedEx
GMAC Financial Services Ally Financial
Graphics Group Pixar
Justin.tv twitch
Kentucky Fried Chicken KFC
Kraft Snacks Division Mondelez
Lucky Goldstar LG
Malt-O-Meal MOM Brands
Marufuku Company Nintendo
Mastercharge Mastercard
Mountain Shade Optic Nerve
MyFamily.com Ancestry
Philip Morris Altria
Service Games SEGA
ShoeSite.com Zappos
TMP Worldwide Monster Worldwide
United Telephone Company Sprint
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Blizzard Entertainment, BlizzCon

Becoming a Beloved Brand

In 2017, when the Golden State Warriors won the NBA Championship for the second time in three years, the Bay Area exploded with excitement.  The victory parade drew more than one million fans in their blue and gold to cheer and bask in the glory of “our” victory. The Warriors are truly one of San Francisco’s few beloved brands. They are respected and adored by men and women, young and old, in winning and losing seasons.  People want to wear their colors, they know the players like neighbors, and they internalize the team’s struggles and celebrate its victories. This highly emotional connection is known as community branding, and is the envy of most brands.

Are there business benefits of community branding?  The W’s have sold out every home game for the last several seasons. The Warriors have become a major attraction for out of state and foreign tourists. Win or lose, W’s fans are behind their team in every way, emotionally and economically.

How does community branding work, and how do you become a beloved brand? If we think beyond sports teams, what other brands can truly say they carry this esteemed mantle?  Certainly many universities could make the claim – whether you are a Harvard Man or a Cal Woman, your alma mater is often a beloved brand worthy of your lifetime support. Other brands are a beloved part of their communities and even the world at large.  Blizzard Entertainment’s BlizzCon gathering is an epic celebration of their game universes and their communities. Some players spend months crafting elaborate costumes of their favorite characters. Coca-Cola energizes Atlanta GA; the NYFD has become one of New York’s most beloved and respected brands, (beyond its sports franchises); Disney is a beloved brand trusted by families and their children around the world; and Chevy and VW have captured our imaginations and elevated our pulses more consistently over time than other car brands have been able to manage.

What do these community brands all have in common? Each satisfies a universally human motivator.  Sports teams ignite the thrill of victory. The Fire Department embodies bravery and valor. Beloved consumer brands provide happiness and escape. These motivators are deeply and universally felt and part of our shared human experience. Brands that are successful enough to become and remain beloved are those that most consistently address, and fulfill, these instinctual needs. They become a part of how we define ourselves.

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It Never Pays to be a Copycat

It Never Pays to be a Copycat.

A recent WSJ Article trumpeted “Copycats Rule the Skies.” It was about how the three largest U.S. airlines have all become so much alike.

Why are the Delta, American and United brands so much alike? Patrick Moynihan, the former Harvard professor and U.S. Senator had a theory called, “The Iron Law of Emulation.” His theory held that nations that competed against each other became more and more like each other. This certainly seems to be the case with our airlines, hotels, banks, etc.

Moynihan pointed out how the U.S. and Russia once emulated each other: We got the bomb, they got the bomb; we got intercontinental missiles, they got intercontinental missiles; we got nuclear submarines, they got nuclear subs, and on and on.

During my 20 years at Landor, we designed the brand and identity strategies for dozens of leading airlines. Our purpose, always, was to differentiate each airline in a way that was relevant, true and compelling. To create a preference or command a premium, we built on each airline’s unique brand characteristics which were often its national characteristics: British Air was about their understated global competence. Singapore Air was about the pride that Singaporeans take in providing personal service. Alitalia was about Italian style. Hawaiian Air was about sunshine, flowers and relaxation. These identity strategies influenced all the decisions each airline made. Whom to hire, how to train, what kind of fleet to operate, and what passenger offerings and style of operations would reinforce their particular identity.READ MORE

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Why One Identity is More Powerful than Many

Why One Identity is More Powerful than Many

Many organizations – whether corporations, non-profits, or educational institutions – develop broad stables of identities to segment their offerings to different audiences. Some of them succeed with this strategy, but many of them do not. Our client, The University at Buffalo (UB)’s recent success can help explain why a singular identity lends more collective strength to an institution than can a handful.

UB is an AAU institution, which means it has been carefully selected to sit among only 61 peers in the American Association of Universities. It is the largest and most comprehensive research university in the SUNY system, and has multiple nationally ranked departments. Over the years, however, UB has had multiple names, and adopted specialized identities for athletics and other departments. These changes had a dampening effect on awareness, appreciation and internal pride.

Now, the university is committing to a singular identity, backed by a strong and unifying brand strategy, and is already reaping huge rewards in local pride and national momentum.

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CVS Quits Smoking, Scores Rebrand Win

CVS Quits Smoking, Scores Rebrand WinMy mom quit smoking recently, after fifty years of it. The fact that CVS is no longer selling cigarettes had nothing to do with this, of course. But the company’s decision to go smoke-free, now—a month ahead of schedule—had particular resonance with me.

Opponents of this move argue that it’s hypocritical, a stunt. They have a point—but in that case it’s a pretty expensive stunt (more than $1 billion in lost annual revenue). This is a clear example of a brand-driven business decision. In addition to pulling tobacco, CVS has changed its name from CVS Caremark to CVS Health, indicating a commitment to something bigger than themselves.

So how much financial loss is CVS willing to sacrifice for a bold brand promise? Does that mean they’re pulling Frito’s and M&M’s off the shelves? (I hope not.) The store will still carry plenty of products that contribute to major health problems, so can it really be the flagship of health it’s aspiring to?

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An “Olympian” Brand Attribute

An “Olympian” Brand AttributeHow much do you really think about the words that you use to define your brand? What are their definitions, what feelings do they inspire in people?

As the excitement of the winter Olympics fades—a week spent watching some the world’s best athletes compete against each other—I’ve thinking about the word “Olympian.” What does it mean to be an Olympian?

The American Heritage Dictionary lists “Olympian” as both a noun and an adjective. In the context of the Olympic Games, the noun is the literal definition: “A contestant in either the ancient or modern Olympic games.” To be an Olympian is to be recognized by your country as the best they have in a given sport at the time of the Olympic games. It is an elite circle and the level of athletic excellence, competitive drive and dedication to their sports that Olympians have is unquestionable.

The more interesting expression of the word for me, though, lies in the adjective’s definition: “To surpass all others in scope and effect.”The highlight Olympian moments are the ones that demonstrate a courage, determination and desire to leave it all on the field—the ones where the athlete finds an inner strength to rise beyond the competition, despite all obstacles.

Sometimes Olympian efforts are gold medal winning, like ski racer Mikaela Shiffren’s cool recovery to win the slalom. “No matter what else was happening, I kept thinking that I had to keep my skis moving down the hill. Keep going, don’t quit, don’t stop…Then see what happens.” Other times they display a fierce resolve, like Jeremy Abbott, the American ice skater who fell disastrously early in his routine, but got up and finished to a standing ovation with some of the most spectacular jumps of the evening.

Why do these definitions matter? In our business, we often describe a brand with key attributes or personality traits; words that capture the essence of a brand. Often these words are descriptive, but not deeply meaningful. I’ve never seen “Olympian”used as a brand attribute, but maybe in time. A brand that included “Olympian” as one of its attributes and aspirations would be inspiring, and one I’d love to be a part of.

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Focus First on Your Brand’s Message, Not Appearance

Focus First on Your Brand’s Message, Not AppearanceSeveral years ago I took a Harvard Business School course on business thinking for design leaders. Toward the end of the course, one professor told us that what we do as brand strategists and designers frightens some CEOs. Why? Because what we do, while vitally important to their success, is not always directly quantifiable. It’s hard to measure emotional connection with a number.

This unsurety and discomfort can cause business leaders to judge brand expression solely on its aesthetics, rather than on the idea the expression is meant to represent. Ironically, this can increase CEOs’ discomfort; what sits before them does not appear to be immediately satisfying. Without a clear understanding and appreciation for the meaning behind the brand expression, executives will miss out on the value brand thinking can create for their organizations.READ MORE

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