Archive for June, 2010
Part 1 of 3: What is a Brand Council, and why tech companies need them
It is now commonly understood that brands represent significant corporate value and are among an organization’s most valuable assets. This value has been demonstrated in brand valuation rankings and acquisition prices worldwide.
Properly created and managed, your brand helps generate operational and economic value by:
- Enhancing awareness, consideration, trial and loyalty
- Adding value to your offering beyond price or technology, both of which can be copied
- Attracting and retaining customers with an engaging promise and experience
- Guiding and informing business decisions and activities
- Attracting and retaining top-tier talent and partners
- Easing entry into new markets
- Commanding price premiums
- Facilitating brand extensions into new products and categories
One of the most pressing challenges we address with clients is how to make business decisions that are consistent with their brand. Technology companies especially struggle to enhance the value of their brands by aligning their activities to deliver a fulfilling customer experience beyond the functional and/or technological benefits they offer.
Consider the following questions:
- Our tech firm has developed a new offering/product/service. Do we need a separate brand? Why or why not?
- One or more aspects of our performance may be hurting our brand image. How can we prioritize where we should take corrective action to protect and build our brand?
- We’re considering a merger, partnership or divestiture. How might that affect our brand(s)? How do we assess which brands to use, how to transition them, over what time period, and why?
Your organization is collectively responsible for creating an expected and consistent brand experience. The challenge becomes how your organization, with its multiple layers, multiple divisions and multiple markets, comes together to address the strategic and tactical issues related to brand management.
The Brand Council defined
A Brand Council is a leadership group, led by the CEO and representative of your larger organization, with one mandate:
To ensure that business strategies, processes, decisions and actions are aligned with the brand’s positioning and values – namely, your organization’s unique promise of distinction.
This, in turn, focuses the entire organization on delivering the fulfilling customer experience that secures loyalty and future earnings. Apple’s brand practically guarantees that every new product or partnership will meet with huge demand, forgiveness for mistakes and general success. Apple has a top secret Brand Council, led by Steve Jobs and other key leaders, whose job it is to steward the brand, and with it, Apple’s success.
The Brand Council provides strategic brand governance in four categories:
1. Creation/management of the brand
2. Challenges and opportunities for the brand
3. Brand compliance
4. Brand measurement and refinement
5. Brand culture
Next week, in Part 2 of 3, we’ll look at the specific makeup of Brand Councils around the world, the 5 functions they typically perform, and the process by which they do it.
In the final installment, in Part 3 of 3, we’ll look at specific ways to turbocharge your Brand Council, and pitfalls to avoid.