When I was in business school and I learned about Michael Porter’s five forces model as a way to understand the industry attractiveness and competitive intensity. It’s a great starting point to get you to think more strategically. However, I want to show you how you can go beyond Porter and start to see other sources of power, which reenforces the idea that the more loved a brand is by consumers, the more powerful and profitable that brand will be.
Start with Porter’s Model
I created the brand love curve, which shows the differences in how consumers feel about a brand as they move through five stages. It defines their feelings as unknown, indifferent, like it, love it and onto the beloved brand status.
For unknown brands, the strategic focus should be to stand out so consumers will notice the brand within a crowded brand world. For indifferent brands, the strategy must establish the brand in the consumer’s mind so they can see a clear point of difference. At the like it stage, the strategy is to separate the brand from the pack, creating happy experiences that build a trusted following. And at the love it stage, the focus shifts to tugging at heartstrings to tighten the bond with the most loyal brand fans. At the beloved brand stage, the strategic challenge is to create outspoken, loyal brand fans who are willing to whisper to their friends on the brand’s behalf.
Threat of Substitutes
As your brand moves to the loved and beloved stages, the power of buyers goes down. We see that Consumers start to feel more and think less. They become outspoken brand fans who can’t live without the brand. Your brand is becoming a favorite part of their life, built into their normal routines. These brand fans defend you, sell you and crave you at times.
The other source of buyer power are the Channels you sell through. In that relationship, it is the retailers who are powerless against a beloved brand. Consumers switch stores before brands. Stores can’t stand up to the beloved brand.
When it comes to the threat of substitutes, competitive brands cannot match the emotional bond that the beloved brand has with their brand fans. It becomes less about product and more about connection and how the consumer feels through the brand. The beloved brands have a monopoly on feelings.
When it comes to the power of Suppliers, they serve at mercy of the beloved brand. High volumes drive down costs and margins. Suppliers build completely around brand.
New brands can’t break through the emotional bond of a beloved brand. Their message can become lost in the clutter or shut out by the loyal brand fans.
Going beyond Porter
Porter is a great starting point for assessing brand power. However, Brands are in the midst of a significant change on a few fronts. The obvious one people can see and touch is Media. However, don’t forget to look beneath the surface and you’ll start to see a more significant change in brands than the media, and that’s the Brand Culture and the Conversations.
Brand love generates brand power over buyers
The tighter the bond a brand creates with their consumers, the more powerful the brand will become with all stakeholders. Think of brand love as stored energy a brand can unleash in the form of power into the marketplace. You can use that power with consumers, competitors, new entries, employees, influencers, media, suppliers and channel partners.
These beloved brands command power over the very consumers who love them, as consumers feel more and think less. These consumers pay price premiums, line up in the rain, follow the brand as soon as it enters new categories and relentlessly defend the brand to any attackers. They cannot live without the brand.
Beloved brands have power over channel customers, who know their consumers would switch stores before they switch brands. Stores cannot stand up to the beloved brand; instead, they give the brand everything in negotiations. The beloved brand ends up with stronger store placement, better trade terms and better promotions from retail partners.
Competitors can’t compete
The competitors, whether current competitors or new entries, cannot match the emotional bond the beloved brand has created with their brand fans. The beloved brand has the monopoly on emotions, making the consumer decisions less about the actual product and more about how the experience makes consumers feel. Unless a new brand has an overwhelming technological advantage, it will be impossible to break the emotional bond the consumer has established with the beloved brand.
The power over media
The beloved brand also has a power over the media whether it is paid, earned, social or search media. With paid media, the beloved brand gets better placement, cheaper rates and they are one of the first calls for possible brand integrations. The beloved brand is considered newsworthy, so they earn more free media via mainstream media, expert reviews and bloggers.
Being a famous, beloved brand helps 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. Beloved brands can use their homepage website to engage their most loyal users, inform the market of upcoming changes, allow consumers to design their version of the brand and then sell product directly to brand lovers.
The beloved brands have power over key influencers, whether they are doctors recommending a drug, restaurant critics giving a positive review or salespeople at electronics shops pushing the beloved brands. These influencers become fans of the beloved brand and build their own emotions into their recommendations.
Power over suppliers and employees
Suppliers serve at the mercy of the beloved brand. The high volumes drive efficiencies of scale that drive down production costs, backing the supplier into a corner before they offer up most of those savings. Plus, the supplier becomes willing to give in, so that they can use the beloved brand as a selling tool for their supplier services to other potential brands.
Beloved brands even have power over 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 on day 1 and want to help the brand achieve success.
Brand love means brand profits
With all the love and power the beloved brand generates, it becomes easy to translate that stored power into sales growth, profit, and market valuation. Here are the eight ways a brand can drive profits:
- Premium pricing
- Trading up on price
- Lower cost of goods
- Lower sales and marketing costs
- Stealing competitive users
- Getting loyal users to use more
- Entering new markets
- Finding new uses for the brand.
Beloved brands can use higher prices and lower costs to drive higher margins
To learn more about this type of thinking, you should explore my new book, Beloved Brands.
With Beloved Brands, you will learn everything you need to know so you can build a brand that your consumers will love.
You will learn how to think strategically, define your brand with a positioning statement and a brand idea, write a brand plan everyone can follow, inspire smart and creative marketing execution and analyze the performance of your brand through a deep-dive business review.
To order the e-book version or the paperback version from Amazon, click on this link: https://lnkd.in/eF-mYPe
If you use Kobo, you can find Beloved Brands in over 30 markets using this link: https://lnkd.in/g7SzEh4
And if you are in India, you can use this link to order: https://lnkd.in/gDA5Aiw
Beloved Brands: Who are we?
At Beloved Brands, our purpose is to help brands find a new pathway to growth. We believe that the more love your brand can generate with your most cherished consumers, the more power, growth, and profitability you will realize in the future.
We think the best solutions are likely inside you already, but struggle to come out. Our unique playbook tools are the backbone of our workshops. We bring our challenging voice to help you make decisions and refine every potential idea.
We start by defining a brand positioning statement, outlining the desired target, consumer benefits and support points the brand will stand behind. And then, we build a brand idea that is simple and unique enough to stand out in the clutter of the market, motivating enough to get consumers to engage, buy and build a loyal following with your brand.
We will help you write a strategic brand plan for the future, to get everyone in your organization to follow. It starts with an inspiring vision that pushes your team to imagine a brighter future. We use our strategic thinking tools to help you make strategic choices on where to allocate your brand’s limited resources.
Our brand playbook methodology will challenge you to unlock future growth for your brand
- Our deep-dive assessment process will give you the knowledge of the issues facing your brand, so you can build a smart plan to unleash future growth.
- Find a winning brand positioning statement that motivates consumers to buy, and gives you a competitive advantage to drive future growth.
- Create a brand idea to capture the minds and hearts of consumers, while inspiring and focusing your team to deliver greatness on the brand’s behalf.
- Build a brand plan to help you make smart focused decisions, so you can organize, steer, and inspire your team towards higher growth.
- Advise on advertising, to find creative that drives branded breakthrough and use a motivating messaging to set up long-term brand growth.
- Our brand training program will make your brand leaders smarter, so you have added confidence in their performance to drive brand growth.
To learn more about our coaching, click on this link: Beloved Brands Strategic Coaching
To learn more about our training programs, click on this link: Beloved Brands Training
If you need our help, email me at firstname.lastname@example.org or call me at 416 885 3911
You have my personal promise to help you solve your brand building challenges. I will give you new thinking, so you can unlock future growth for your brand.
Founder and CMO, Beloved Brands Inc.