Posts Tagged ‘brand analysis’
In the first of two parts we explore what is a Brand Audit and why tech companies choose to conduct them.
Remember the fantastic scene from “A Few Good Men” where Lt. Daniel Kaffee (played by Tom Cruise), an inexperienced military trial lawyer, confronts a seasoned Marine Colonel Nathan R. Jessep (played by Jack Nicholson) about the facts surrounding the apparent murder of a fellow Marine? “I want the truth!” exclaims Kaffee in the courtroom. “You can’t handle the truth!” shouts back Jessep.
Although it is sometimes hard to ‘handle’ or swallow, the truth is the idea behind conducting a brand audit. More so than some other industries, tech companies need to know the cold hard truth of how they are perceived in the marketplace. Even if the results hurt the technology brand ego. Because the first step in strengthening brand weaknesses or vulnerabilities is learning precisely where the brand value stands now.
This year, some tech companies won’t need a full-tilt, top-dollar rebranding. They may have just finished a complete rebranding last year, or recently merged or acquired other brands. They might just need a brand audit to help them with this year’s strategy and resourcing decisions.
What is a brand audit?
A brand audit is a thorough, multi-dimensional analysis to understand a company’s brand(s), its internal and external perceptions, and their strategic implications. Brand audits often include rigorous competitor brand evaluations to deliver strategic context and recommendations to its findings.
A brand audit answers questions such as:
- How do prospects really view the technology brand?
- Which brand attributes and personality does it and its competitors ‘own’?
- How much ‘permission’ does the brand have to offer new products or enter new markets?
- How cohesive and compelling is the tech brand story and promise?
- What internal and external challenges stand in the way of developing and strengthening brand to drive business forward?
- Which touch points have the most impact for building this technology brand?
- How should brand position change to be most effective against competitors?
- Is it wise to go ‘head-to-head’ with primary competitors? Why or why not?
- What differentiators do the brand offer that cannot be easily copied?
- How relevant is the brand in today’s marketplace? How believable is brand promise? How differentiated?
In many cases, technology brands ‘lead with the tech’. They believe it will be compelling enough to drive the trial, preference, and repeat business that drive future revenue. Technology is only part of the value offered by Apple, Google or Microsoft. These technology leaders all carry brand value and associations far beyond the technology they offer: prestige (or ‘everyman-ness’), cool (or not-so-cool) ‘geekiness’, self-expression, social or economic status, values, etc.
Top technology brands also carry associations related to value delivery, service quality, and relative pricing, whether it’s their products or stock. The brand value goes far beyond a technological development.
Unfortunately, executives do not always want to hear the truth about their brands. Lack of honest insights can cause uninformed decisions and leave them wondering why the numbers or performance of their brand is not improving.
Can your team handle the truth? Let us know how you uncover the honest data that leads to informed decisions.
Next time, we’ll look at the specific elements of a brand audit, and why it can be a relatively inexpensive and extremely effective tool.
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.