As they navigate through changing times and tighter markets, more companies nd they need to seek a new point ofattack. Or rather, a stronger point ofconnection in a world where customers are nding it easier to detach. A company’s brand is its most powerful ally in nding and strengthening that connection. Dened as a company’s unique way ofdoing business, brand is a promise brought to life across all customer touchpoints which, if properly managed, creates identication, dierentiation and value. In many cases, brand strategy is the missing link in the chain of events that leads to improved performance. Because it’s built around a deep understanding of the customer and a keen awareness of the company’s own values, brand sheds light on how to renew meaning to tired or me-too oerings. Meaning can be turned into ac tion. For a retailer, the most crucial of those actions is an engaging shopping experience. When a company—even a highly valued global brand—makes business decisions stretching the brand to include GapMaternity, BabyGap, Gap Kids and 1969 Jeans but without considering how the pieces work together. The brand meaning has been diminished at the core and through the entire system. “There are no really clear principles. They have lost the connective t issue that makes the br and meaningful.” About three years ago, another global icon sought help with its brand to reverse its loss of momentum. Holiday Inn recognized its relevance was at risk, especially for the lucrative business traveler. Like Gap, the company began its brand renewal with an identity change. But unlike the jeans retailer, Holiday Inn created a framework within which to develop a new brand strategy. Business insights from the people of Holiday Inn, such as cultural beliefs and business needs were essential in crafting a business case for change. Ethnographic studies assessed guest emotion and behaviors, identifying key moments where the hotel experience had opportunity to engage. By aligning critical consumer touchpoints—key brand hallmarks—with benchmark data, Holiday Inn was ready for the next step. A Retail Publication Ideations Issue 4 • 2010 (continued on back) without considering its brand, the results can be dismal. Gap took a beating from the media this month when it published a new logo, only to withdraw it amid a urry of questions and criticism. Retail pundits who’ve been watching Gap’s performance weaken over the last ten years saw the debacle as further proof that the brand refuses to tackle the large issues in favor of ddling with fonts, fashion-forward images or media-focused communications. It’s a brand without a heart. Gap has bee n valued among the Top 100 Best Global Brands for ten years, according to our annual study. However, it is steadily dropping through the ranks and if the trend continues, Gap could be othe list entirely in two years. Despite its global scale, retail experts agree the iconic brand has lost its way. “This is not a problem unique to Gap,” says Justin Wartell, Director of Strategy for Interbrand Design Forum. “It’s something that can befall ver y successful companies.” According to Wartell, it’s possible that the retailer may have been opportunistic, The Cost of Working Without a Brand Strategy
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8/8/2019 Interbrand Design Forum Newsletter: The Cost of Working Without a Brand Strategy
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Samsung and all the rest. They even allow
Apple to sort content, such as the apps tha
must pass muster. Basically, Apple curates
how to act in the digital world.
Target, with its zealous followers, is a
Reactive type of agent brand. The brand
lters the consumer culture by asking, “Isit Target?” While they are not inventing
anything new, Reactive agents are curatin
from the latest ood of mass merchandise
or in the case of a brand like Crate & Barrel,
home furnishings. There is a transfer
of values and sensibilities between the
consumer and the agent. As a result, we
trust them not to waste our time, to focus
on the things that are relevant.
Whether companies choose to become
either an Agent, Enabling or Anity
brand, at heart it’s all about building andcultivating relationships. A business needs
a strong sense of itself as well as a deep
understanding of the target customer.
Without them, chances are slim for the
long-lived emotional attachments that lea
to long-term prosperity.
Three Ways
Potential brand strategies were ltered through a rened positioning, guest needs,
experiential research, brand expression, and regional adaptation to determine which
ideas would align best with the brand and the business. Once the strategy was
determined, the rst task was updating the Holiday Inn logo which needed to
signal major change, yet not go so far outside its legacy that consumers couldn’t
relate. Next, signage, curb appeal, a calming sensory experience at the check-in
moment, bedding and bath experiences—all were redesigned guided by the
strategy, the basis of the refreshed global branding program.
The before-and-after of the Holiday Inn guest experience speaks for itself. The
entire look and feel of the space welcomes and refreshes “road warriors” with
what matters most to them.
Brand strategy provides clear, concise and quantiably supported guidance on
where to leverage opportunities, reduce in-store costs, better manage space and
reallocate resources. It eectively switches retailers from reactive mode to creative
and innovative mode. Strategy denes a distinct “voice” that consumers quickly
recognize and understand. It ameliorates inconsistencies and unlocks potential.
“The creation of a brand strategy is one of the most important exercises an
organization can undertake,” says Wartell. “Yet many companies avoid it or deneit inadequately. It is, indeed, a big undertaking, but depending on the scope of
your business objectives, there are a variety of smart methods to help you achieve
them. In terms of return, it’s a very, very wise investment. It can be much more
costly to work without a brand strategy.”
Basically, to put a brand strategy in place, three dening steps need to be
accomplished: elucidate the values that make up the fabric of the company,
understand the needs of the target customer in order to align them with the
company’s brand values, and stake out a clear, dierentiated market space.
Only then will a brand have insights powerful enough to support the work of
reviving itself.
Gap’s mistake may have been trying to design a new way to express its brand withoutthe insight provided by these three basic steps. Until that is addressed, it’s reasonable
to expect the company’s numbers will continue to slide. “You have to dene who
you are before you can decide how you look and feel,” says Wartell. “That’s why
brand matters.”
Working Without a Brand Strategy
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