subject: Five Strategies to Increase the Value of Your Brand [print this page] Five Strategies to Increase the Value of Your Brand
An increase in brand value can help drive revenue growth through higher consumer demand, improve gross margin by commanding a premium on prices and reduce business costs through improved supplier agreements. One method of valuing a brand is to take the market value of a company (total shares of stock outstanding multiplied by the company stock price) and subtract the value of its assets (found on the balance sheet). Using this methodology, Coca-Cola ranks as one of the world's most valuable brands. Consumers choose Coca-Cola billions of times per day because of its authenticity, refreshment, originality, consistency and taste. The more The Coca-Cola Company can improve consumer demand for its brands, the more consumers will consume their products. For Coca-Cola, more consumption translates into more revenue and more profit.
So here are my five strategies to improve your brand:
Improve your understanding of what your brand means. Taking our first example, there are a variety of reasons why people choose to drink Coke. Many people drink Coke because of the way they are perceived by others. It has a certain "coolness" factor. Others drink Coke because they know they will gain social acceptance. Some drink Coke for the increase in energy it gives them. Still others drink Coke for its refreshment and great taste. By keeping abreast of how consumers perceive their brands, Coke continuously meets their consumers' expectations. This enables the Coca-Cola brand to maintain tremendous brand value.
Innovate your products to meet your consumers' unknown needs. When Nintendo launched the Wii, they revolutionized the way people play video games. Nintendo created a product consumers hadn't even dreamt of. In so doing, Nintendo not only delighted avid video game players they also converted millions who never played video games into Wii players. With games like Wii Sport and Wii Fit that enhance both skills and fitness, Nintendo eliminated the inactive aspect of video games one of its biggest negative perceptions and, in turn, permitted consumers hours of guiltless entertainment. Talk about a brand value builder!
Stay solution focused. Product engineers and marketers are notorious for creating all kinds of new features for existing products. If the features, however, don't provide a specific benefit that the consumer needs, or are not intuitive, those features may end up hurting the brand. Remember how hard it used to be to program a VCR? Conversely, a feature that meets a need can provide tremendous value to a brand. When the makers of Sharpie finally developed a retractable Sharpie (the feature) that could be operated with one hand and not dry out (the benefits), they delighted millions of brand loyalists enhancing their already high brand scores.
Pay attention to the details. There is nothing more exciting for consumers than when they buy a product that exceeds their expectations. That is why I love driving my Acura MDX. It is an SUV that drives like a car and offers so much more. The instrument panel is simple to read and easy on the eyes making driving safe and enjoyable. The four-wheel drive keeps me moving in all types of terrain. The blue-tooth audio provides perfect communication clarity. The vehicle seats seven comfortably or the rear two rows of seats can be folded down to haul as much stuff as a pickup truck. I could go on and on about my MDX, but more than anything it is the attention to detail put into each of these features that makes me thrilled to be an Acura owner.
Be consistent and reliable. In thousands of restaurants all around the world, people consume McDonald's burgers and fries millions of times a day. The fries they eat in the morning taste just like those they eat at night. The Big Mac they buy in Beijing is delivered to them in the same amount of time as the one they buy in Baton Rouge. The menu board, the restrooms and the seating area look the same in every restaurant. For this consumers reward McDonald's with their patronage more than any other fast food restaurant. And, while McDonald's food usually does not rank first in taste, they consistently rank first in market share and revenue. When consumers can trust that their brand experience will be the same every time, they will value that brand more and more over time.
Stay passionate Ok, I lied. There are six strategies for building brand value. The last strategy is to let your passion shine through in everything you do. Consumers love brands whose owners are as passionate as they are. That "never rest on your laurels" attitude translates into exciting and superior products that continue to wow and delight consumers. One of the reasons people love the Apple brand so much is because of the passion expressed by Apple employees. Despite being the little guy, Apple enjoys going toe-to-toe with Microsoft. As a consequence Mac users revel in the controversy. As a result, there is no other computer or mobile technology brand as loved as Apple.
