In the modern buying process, a strong brand is more important than ever. Strong brand is easy to say and we consultants love to use the term – but what is a “strong brand”?
Many people make the connection “strong brand = well-known brand”. But that is not necessarily true. My definition of a strong brand is a brand that drives behavior, which in most cases means that it creates associations with the target group that makes it want to buy more and/or is willing to pay more for a product or service. The fact that a brand is popular can contribute to its strength, but not necessarily.
We often use two well-known brands to exemplify: Saab Cars and Ryanair.
Saab’s brand was very strong in the early 2000s. Saab was a beloved car with a loyal crowd of buyers. Saab was praised in various contexts for its ability to innovate and as an innovator of the industry. But despite the fact that very many people “liked” Saab, far too few actually bought the car. Saab was, in short, well-known and well-liked for the wrong things – things that did not drive sales. We know how the car brand Saab came to a sad end.
Ryanair is basically the opposite to Saab. Ryanair is a brand that evokes at least as strong emotions, probably stronger, and often negative. But despite the fact that Ryanair is most often allowed to run amok in the media due to lack of security, poor personnel policy and strange “innovations” to save on costs, it was one of the world’s most profitable airlines before Corona – and will probably be again. Everything about Ryanair makes us associate them with being cheap. But Ryanair is well known and unpopular for exactly the right parameters – the one’s that actually drive sales.
And this is the core. Building a strong brand is not a beauty contest – it is a sales contest. The brand should make sure that you are mentally available, or often called “on the buyer’s list”, and once you are considered in the race to sell more and get better paid than your competitors, ie to build a profitable business.
Part of “building profitable business” is to do it consistently over time, and here the relation to the brand is key. If you are engaged in a brand you tend to forgive certain mishaps and stay loyal. One example from sports is Manchester United. Since Sir Alex left, the club has been a disaster, this year in the bottom of Premier League. A handful coaches has been fired and players are coming and leaving in rapid pace since few are performing. Still, if you are a Manchester United fan, you stay a Manchester United fan…