The tighter the bond you create with your consumers, the more powerful your brand will be with all stakeholders.
A beloved brand with a loyal group of followers has so much more power–starting with a power over the very consumers that love them. These consumers feel more and they think less. They will pay a premium, line up in the rain for new products and follow the brand as it enters into new categories.
Using Porter’s 5 forces model, we can see that brand love also gives the beloved brands power over their consumers, channels, substitutes, new entrants, or suppliers. We can see that a beloved brand can leverage all 5 forces as a competitive strategy to beat down on the less loved brands. In the fast food category, look at how McDonald’s beats down on Burger King, Wendy’s and Hardee’s with such a force the other brands are confused and suffering.
A beloved brand starts with a certain power over the buyer–whether that’s consumers or the channel. In terms of consumers, they feel more and think less. The brand becomes a part of their lives. They are fans, craving the brand and build it into their life. They can’t live without the brand. The channel customers are powerless against the beloved brand. They know that consumers would switch stores before brand. Stores cannot stand up to the beloved brand.
Once the beloved brand has a power over their two main buyers, they can use that power over the other forces. There are no real substitutes who can match the emotional bond that the beloved brand has with their brand fans. They have a monopoly on feelings. The beloved brand makes it less about the actual product and more about the experience and how the brand makes the consumer feel. Unless it is “better” what really can the substitute do.
It is even harder for new brands, who just can’t break through the emotional bond that is already established with a beloved brand.
Suppliers are at the mercy of the beloved brand. The high volumes help to drive down costs and provide favorable margins. Because of the size of the beloved brand, the suppliers build completely around the brand. They would opt to give a discount to the beloved brand, and then use their relationship with the beloved brand to sell their supplier services to other potential brands.
Going beyond Porter’s Model to show how the beloved brand continues to exert power
We have three other sources of power that a beloved brand can generate.
The beloved brand has a power over their employees, who want to be part of the brand. They are brand fans, who are proud to work on the brand. They embody the culture and feel vested in the success of the beloved brand. For instance, the baristas at Starbucks love working there. They wear that green apron with a sense of pride. These brand fans know the culture on day 1 and will do whatever it takes to preserve it.
The beloved brand has a power over the media whether it is paid, earned, social or search media.
- With paid media, the beloved brand can get better placement, cheaper rates and they will be the first call for an integration or even big events such as the Super Bowl or Olympics.
- With earned media, the beloved brands are considered newsworthy receive much more free media via mainstream media. Brands need to create and manage the news cycle with mainstream media, expert reviews and blogs.
- Being a famous beloved brand helps to bypass the need for Search Engine Optimization (SEO).
- The beloved brands become part of the conversation whether it is through social media or at the lunch table at work. The best brands manage their advocates who actively are engaged with the brand, then express their positive views to their own social network.
- Beloved brands can use their home page website to engage with your most loyal users, inform the market of changes coming, allow consumers to design their own version of the brand and sell product directly.
The beloved brands have a power over key influencers whether it is doctors recommending Lipitor, restaurant critics giving a positive review for the most beloved restaurant in town or Best Buy sales people selling a Samsung TV. The influencers become fans of the brand and they build emotion into their recommendation. They become a loud influential voice in the community.
Using the brand love and brand power to generate brand profits
With all the love and power the beloved brand has generated for itself, now is the time to translate that into growth, profit and market valuation.
The beloved brand has a perceived premium quality difference allowing you to command a premium price. They have relatively inelastic price as the most loyal brand fans pay a 20-30% price premium and the weakened channel customers cave in during negotiations to give deeper margins. Satisfied and loyal consumers are willing to trade up to the best model.
A well-run beloved brand can use their high volume to drive efficiency helping to achieve a lower cost of goods structure. Not only can they use their growth to drive economies of scale, but suppliers will cut their cost just to be on the roster of a beloved brand. The beloved brand will drive much more efficient marketing spend. They can use their power with the media to generate lower rates and plenty of free media. Plus, the higher volumes make the spend ratios look much more efficient.
Beloved brands have momentum with consumers, able to reach a tipping point of support to help make share gains. Crowds draw crowds which spreads the base of the loyal consumers. With a power over consumers, the beloved brand can get loyal users to use more, building the brand into life’s routines and rituals.
It is easier for the beloved brands to enter new categories, knowing their loyal consumers will follow. These brand fans buy into the Big Idea of the brand. And finally, there is opportunity to find more uses or usage occasions for the beloved brand, helping to increase the number of ways that your brand can fit into the consumers life.
The more loved a brand is by consumers, the more powerful and profitable that brand can be.
Brand Love + Power = Profit
Below is one of the workshops we run to help Brand Leaders enhance their strategic thinking.
Beloved Brands: Who are we?
At Beloved Brands, we will make your brand stronger and your brand leaders smarter. We lead workshops to define your brand, helping you uncover a unique, own-able Brand Positioning Statement and an organizing Big Idea that transforms your brand’s DNA into a consumer-centric and winning brand reputation. We lead workshops to build a strategic Brand Plan that will optimize your resources and motivates everyone that touches the brand to follow the plan. We coach on Marketing execution, helping build programs that create a bond with your consumers, to ensure your investment drives growth on your brand. We will build a Brand Management Training Program, so you can unleash the full potential of your Marketing team, enabling them to contribute smart and exceptional Marketing work that drives brand growth. We cover strategic thinking, analytics, brand planning, brand positioning, creative briefs, customer marketing and marketing execution.
The fundamentals of Marketing
At Beloved Brands, we can build a Brand Management Training Program, to unleash the full potential of your Marketing team
- How to think strategically: We believe that Strategic Thinking is an essential foundation, to help Marketers ask big questions that challenge and focus brand decisions. We teach the value of asking good questions, using four interruptive questions to help frame your brand’s strategy, looking at your competitive position, your brand’s core strength, the connectivity with your consumer and the internal situation your brand faces.
- Write smarter Brand Plans: We demonstrate how to write each component of the Brand Plan, looking at brand vision, purpose, values, goals, key Issues, strategies and tactics. We provide a full mock brand plan, with a framework for you to use on your own brand. We show how to build Marketing Execution plans as part of the overall brand plan, looking at a Brand Communications Plan, Innovation Plan, In-store plan and Experiential plan. This gives the strategic direction to everyone in the organization.
- Create winning Brand Positioning Statements: We show how to write a classic Brand Positioning statement with four key elements: target market, competitive set, main benefit and reason to believe (RTBs). We then show how to build an Organizing Big Idea that leads every aspect of your brand, including promise, story, innovation, purchase moment and experience.
- Write smarter Creative Briefs: The Creative Brief frames the strategy and positioning so your Agency can creatively express the brand promise through communication. The hands-on Creative Brief workshop explores best in class methods for writing the brief’s objective, target market, consumer insights, main message stimulus and the desired consumer response.
- Be smarter at Brand Analytics: We show how to build a deep-dive business review on the brand, looking at the category, consumers, competitors, channels and brand. We start with the smart analytical principles that will challenge your thinking and help you gain more support by telling analytical stories through data. We teach how to turn your analysis into a presentation for management, showing the ideal presentation slide format.
- Get better Marketing Execution: We provide Brand Leaders with tools and techniques for judging communication concepts from your agencies, as well as processes for making decisions and providing effective feedback. We teach how to make marketing decisions with the ABC’S, so you can choose great ads and reject bad ads looking at tools such as Attention (A), Branding (B), Communication (C) and Stickiness (S). We teach how to provide copy direction that inspires and challenges the agency to deliver great execution.
- How to build Media Plans: We look at media as an investment and as a brand growth strategy, exploring various media options—both traditional and on-line. We bring a more consumer centric approach to media, aligning the media choices to where your consumer will be most likely to engage with your brand message. We look at all the types of Media through the lens of the Brand Leader, with advice on how to use traditional media options, such as TV, radio, newspaper, out-of-home and Modern media options such as digital, social and search.
- Winning the Purchase Moment: We provide brand leaders with analytics, planning and decision making tools to help their instincts and judgement for moving consumers to purchase. Complete in-store business review, looking at categories, consumer shopping behavior, competitors, customers and the overall brand performance. We teach the basics of customer marketing planning, identifying the target consumer, in-store messages, strategies, tactics and project management. We look at the available tools for customer marketing including pricing, promotions, retail shelf management, merchandising and operational execution.
If you need any help, email me at email@example.com