The truth about brand strategy. And why your company needs one

You’ve just opened an email about brand strategy. This probably means that you’re interested in some of the nitty gritty topics of brand building and that’s exactly why we’ve started this newsletter.

May 20, 2024

Welcome to OFF Brand – a newsletter from Koto. In every issue we will deal with branding topics you’ll normally find us talking about with our clients and peers.

Our goal is to share the latest and greatest thinking (not just our own) on a range of critical subjects. We want this to become a trusted voice for marketing operators and brand enthusiasts alike. Think practical tips, actionable insights, useful frameworks, topical examples - all so you can elevate your brand to new heights.

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What you’ll learn about brand strategy

What it is
What it isn’t
Why it matters
How do you build one?
How do you use one?
Tips, tools and frameworks

Brand strategy. What is it?

Brand strategy, much like the word ‘brand’ is one of those terms that means different things to different people.

But to keep things simple we’ll define it this way:

Your brand is ultimately a result - one formed in people's minds - of everything you say and do. Brand strategy is about thoughtfully and intentionally guiding these perceptions in your favour.

Whilst a brand strategy captures the “softer” sides of a business like the vision, mission and values, it cannot be built in isolation of the harder more functional business strategy. Together, the two strategies address the commercial opportunity (how to generate revenue) and category distinction (how to raise awareness and maintain relevance). The success of both lie in how closely connected they are.

At Koto we focus on what gives a business the edge over its competitors, search for hidden category truths that should be leveraged, and identify the shared beliefs between a business and its customers that need highlighting.

These strategic elements help us get to the heart of our brand strategy framework – the brand idea. A brand idea is a north star that influences every part of a business – from internal culture to product development and everything in between.

For Bolt, an instant checkout solution for online shopping, we created a brand idea that captures the speed of the experience. It not only guides their comms (obviously), but holds them accountable for how the product should always behave.

For Meatable, a sustainable meat production company, we crafted a brand idea that unapologetically normalises cultivated meat. A step change from the traditional scientific and sustainable tropes that had smothered the category.

And for Airtasker, the online community of DIY volunteers, we developed a brand idea that tapped into the energetic can-do-will-do spirit of both the taskers and the company.

These brand ideas are simple and reframe not only the problem they solve but how the brand uniquely goes about solving it. Additionally, they heavily influence the creative direction and execution of the visual identity. With a clear and compelling brand idea at the heart of a brand strategy, a business can focus on what it does best and move forward with confidence.

So in summary, a brand strategy is a framework that outlines what a business does, how it shows up in the world and why anyone should care. And it should work hand-in-hand with the strategy for the business to help it reach its commercial goals.

Brand strategy. What it isn’t.

You’d think that once you know exactly what a brand strategy is, it would be easy enough to know what it isn’t.

If only that were the case.

It may or may not come as a surprise, but brand “experts” must shoulder much of the blame in making brand strategy far more complicated than it needs to be.

If brand strategy is a plan that brings business commerciality and cultural relevance together then it makes sense that it can’t just be a…

Comms tagline (far too basic)
Multi-layered framework of boxes (far too complex)
Collection of words, phrases, and loosely connected ideas gathered to placate every stakeholder (far too generic)

Instead, it should be…

Focused (so people understand what success for the business and brand looks like)
Accessible + Actionable (so everyone in the business can understand it and make use of it)
Inspirational (so people can believe in and buy into it)

If your brand strategy isn’t built to deliver on these things then chances are you’ve got a whole different type of BS.

In recent times it has been extremely popular to be purposeful and this turned brand strategy into an exercise in blind idealism. Grandiose statements without proof points might sound good on paper, but in reality are paper thin.

Proper brand strategy on the other hand is an exercise in sacrifice and discipline. Instead of encouraging a business to talk about everything it does in relation to its competitors, a brand strategy gets a business to focus on reframing the one thing it does in a way that competitors can’t.

Stripe doesn’t see itself as a B2B payments business (like so many others), instead they’re the payment infrastructure for the internet (a unique position). Mailchimp isn’t an e-marketing service (like so many others), they’re a growth engine brand with a twist (a distinctive personality). And Slack isn’t just messaging for work (like so many others), it’s a symbol of culture and collaboration that has become a verb synonymous with modern-day office culture.

In this context, brand strategy becomes a powerful tool that allows a business to not only think differently about the product / service it provides, but the entire category it belongs in. And when this is done well it makes it easier for customers to know why they should choose you over the competition.

Which leads us nicely to…

Why brand strategy matters

Brand strategy is important because it provides clarity. Clarity on what a business is (and what it isn’t), on what a business should do (and shouldn’t), and on what makes a business unique (and what doesn’t).

Clarity is priceless but confusion is expensive, which makes brand strategy an essential and dare we say, undervalued asset.

Brand strategy can be likened to a foundation for a house. It doesn’t matter how beautiful the finishes or how spacious the rooms, at some point the weak foundations will buckle and it’ll all come crumbling down.

But putting visual metaphors to one side, there are commercial repercussions for not having a solid strategic foundation in place for your brand.

A common myth that we hear is that the value of a brand cannot be measured. The truth is that a strong brand (born from a solid brand strategy) adds value to the bottom line.

In an increasingly metric-centric world, there is increasing evidence to suggest that intangible assets are increasingly important to business value.

In other words, a strong brand not only drives growth but also offers flexibility on pricing.

Source: The Meaningfully Different Framework, Millard Brown.

This of course is connected to the understanding that a brand is so much more than just a logo and colours (yes, this still has to be said). And yes, brand strategy is a fundamental part of that.

Take Airbnb for example. The category was hospitality, and the competition wasn’t just other b&bs but hotels too.

The catalyst for Airbnb came in an exercise that not only reframed the offering, but turned the category right on its head by positioning the copy and paste formula of a hotel room into a negative. Hotels became generic. But staying in someone’s home? Well that just hits different.

The brand strategy and new brand was built around a simple yet compelling idea; ‘Belong Anywhere’. An idea that not only tapped into the human need of belonging but also reframed our expectations of a holiday experience – one where you could be home away from home.

This brand idea shapes comms, influences new features and experiences as the company continues to grow. It informed the creation of airbnb.org – a charity arm that supports those who have been displaced during disasters to help them feel like they belong once more. It lives and breathes through the internal culture and this was evident through the tone with which Brian Chesky communicated mass layoffs during the pandemic.

But it’s the commercial impact of this catalyst of an idea that highlights the value of brand and great brand strategy. That once simple bed and breakfast business now has a market valuation of $79.58bn and has listed almost double the number of accommodations than hotels like the Hilton, Intercontinental and Marriott have… combined.

Number of Airbnb accommodations vs. Hotel guest rooms.

What this example highlights is one of the powerful outcomes of a great brand strategy. A great brand strategy, much like an insight, helps you reframe your understanding of a problem, a solution, and your role in solving that problem.

That reframing can be transformative because it opens your eyes to possibilities beyond the category norms.

This isn’t true for global businesses only, the same principles apply to smaller businesses too.

When Back Market, a refurbished technology company on a mission to reduce e-waste approached us, they were lost in a category of competitors that all looked the same. The intent behind the service was noble but the category lacked any appeal when stacked up against the world of all things shiny and new.

A common category problem is that everyone eventually ends up looking and saying the same things, and when this happens it becomes harder for anyone to take notice let alone change behaviour.

The brand strategy for Back Market didn’t just identify the obvious need to stand out, it unearthed the fact that saving the planet isn’t a compelling enough reason on its own to reuse older tech. The brand needed an edge to it to combat the apathy and inertia that surrounds sustainability and tech. It needed to provoke a reaction and an alternative perspective and so the attitudinal brand idea of ‘Screw New’ was born.

With a healthy dose of rebellion balanced with the need to show up as a reputable tech business, a category disrupting brand was born. Again, the idea stretched far beyond the identity, heavily influencing product, comms and campaign.

The impact? Today the market valuation of the company sits at $5.7bn.

So, how do you build one?

Building a brand strategy requires getting your hands dirty and pulling yourself away from the comfort of the marketing department. It involves getting under the bonnet of the business and being honest about what’s required to push the brand forward.

Brand strategists are typically good at absorbing vast amounts of information and synthesising that information into something simple and structured. Too much detail and people will switch off. But too little substance and people won’t know what to do with it. Building a brand strategy isn’t about capturing everything the business does or is about. Instead it’s about identifying what’s most important. It might sound paradoxical, but building an effective brand strategy actually involves a lot of stripping away.

Remember, the objective of a brand strategy is to provide clarity. And clarity helps the business focus on the things that will help the business stand out and meet its commercial goals.

The following principles are important when building a brand strategy:

Assess the current state of play. It’s essential to first understand how everyone talks and feels about the brand – both customers and colleagues. Establishing the truth of how the brand is perceived in comparison to where the brand wants to go will give you a clear indication of the task at hand and one of the key objectives of the brand strategy.
Make the business case. As mentioned earlier, a brand strategy must support the business strategy and so demonstrating how the two are related is key to getting buy-in beyond the marketing team. Since it requires a collective effort to bring a brand to life, it’s important to get engineers, product managers, sales teams and yes of course founders on side. The earlier the better. Doing so requires understanding their worlds (and priorities), speaking their language and helping them to see how brand strategy directly impacts not only what they do, but the broader vision for the business.
Go wide, go narrow. Think short and long term. Customer acquisition is important but so is customer retention. Product market fit is crucial but so is innovation and evolution in a world that constantly changes. The key here is to think of the big picture whilst simultaneously paying attention to the small steps required to get you there. This approach lends itself to an always-in-beta mindset that will help keep your brand strategy fresh and fluid.
Use data but tell stories. Data gives you evidence, narratives give you motivation. A brand strategy that is built with both ingredients is not only irrefutable but inspirational. And the larger the organisation, the greater the need for the brand strategy (or any strategy for that matter) to travel. The overarching objective is for the brand strategy to influence key business decisions across the entire organisation. Storytelling and stats give you the best chance of doing that at scale.
Revisit and reassess. It is often said that if you stand still you’ll go backwards, and the same can be said for brand strategy. Whilst consistency is crucial to building attribution (see our previous newsletter on this), remaining relevant is equally important too. As a business grows and adapts to meet the changing needs of its customers, a brand strategy must evolve to help the brand keep up. How frequently a brand strategy is revised and how much it should evolve depends on a number of different factors – the key is that any change must make sense and should strengthen the role the brand plays in the lives of its customers.

How do you use a brand strategy?

Building the brand strategy and the right narrative is arguably the easy part. The real work comes in the implementation and execution. You can have the best tactics to defeat an opponent, but if you don’t carry them out, then those tactics – your strategy for success – is deemed useless.

As mentioned earlier, the overarching objective is for the brand strategy to not only inspire how a brand shows up, but to also influence key business decisions. For this to happen the brand strategy must leave the guidelines and take up residency across the entire organisation.

But how?

One simple way is by asking relevant questions about various aspects across the business. Categorising these questions ensures that the brand is being considered across all ends of the business and isn’t confined to comms, campaigns and creative execution.

Here are some examples of questions to help a brand strategy add value:

Marketing:

How can we use language and tonality to tell our story in a way that is unique to us?
How can brand help us bring our activations, OOH campaigns and digital marketing to life in truly authentic and distinctive ways?

Product:

How will new features in the product roadmap reinforce what we’re known for as a brand?
How do we consistently talk about the product in a distinctive and on-brand way?

Sales:

Which features of our product resonate most with our customers and does our brand do justice in highlighting those?
To what extent does the sales experience match up to the promise and expectation our brand conveys?

People and Culture:

How connected is our in-market brand with our employer brand?
What type of potential employees is our brand attracting and why?

PR:

Are the key messages our leaders share publicly aligned to the way our brand positions the business?
What is the right way for the brand to communicate during a crisis or when tough decisions are made?

Board level:

What impact will a merger, acquisition or partnership have on brand perception? And does such a strategic play require us to completely revisit our brand?

This is just a snapshot of some of the questions that help put a brand strategy to use. The truth is that there are countless ways a brand strategy can influence a business, internally and externally.

The key is to manage resources and prioritise the parts of the business that are most critical to growth at any given point in time. But being aware of the influence brand strategy should have across the business and getting your non-marketing peers to understand this too, is a win in of itself.

Tips and frameworks to get you started

Believe us when we say there is no shortage of brand strategy frameworks, diagrams, and models to choose from. The trick here, and it goes without saying, is to build what makes sense for what you’re trying to achieve as a business.

At Koto, we prioritise finding the hidden truths within the category, the shared beliefs between the brand and its customers, and the unique aspects of the brand that give it a competitive advantage. Once we’ve captured these, the brand idea falls into place.

It’s not the only way we go about it but it is at the very least a starting point for us to work from.

Below are three hot tips and four frameworks for anyone to get started on building a structured approach to building a fit-for-business brand strategy.

🔥 Hot tip #1 – Get tight on terminology and get the business to use it correctly and consistently. If Logo Cop watches the brand then PC terminology protects the strategy. It can get really confusing if positionings and propositions are used interchangeably. They’re not the same thing.

Agree on the terminology you’ll use as well as their respective definitions and stick to it.

🔥 Hot tip #2 – Balance consistency with flexibility. There’s a traditional school of thought that suggests your brand strategy should rarely ever change. But there’s a reality of modern business that suggests adaptability in uncertain times is essential for survival. Establish your core (what’s true of you no matter what), and determine your playground (where you’re prepared to flex if needed). This approach keeps your brand strategy equal parts fresh and familiar.

🔥 Hot tip #3 – View your business and brand strategy like siamese twins; individually unique but ultimately inseparable. Brand strategy has a responsibility to unlock commercial opportunities, inspire comms and creative, and influence internal culture. If brand strategy lives in isolation of its business counterpart, then it’s just pie in the sky thinking and arguably not brand strategy.

Now on to frameworks:

📐 Framework #1: The 4C’s – Short and sweet, tried and tested. This simple framework combines the macro view with the micro perspective helping you to look at the wider Cultural context with which a business operates, right down to the needs of the Customers a business serves. Sandwiched in between is Category insights and the strengths (and weaknesses) of the Company. When used correctly, this framework can provide some connected insight that can help reframe the role of the product/service which will help position the brand in a relevant way.

📐 Framework #2: Mission, Vision, Values – Again, super simple but an effective way of covering the basics in brand strategy of what, how, and arguably most importantly (we see you Simon Sinek), the why.

📐 Framework #3: The 5P’s – You’ve heard of the 4C’s, but did you know there are the 5P’s too? Much to the point earlier, getting clear on terms is really important, and this framework is evidence of that. Some consider this the more traditional take on Mission, Vision, Values, but with the added element of brand Personality – a feature that covers how the brand writes. The other P’s include Purpose (the why), Positioning (the one thing that identifies you in relation to your competitors), the value Proposition (the #1 reason why customers buy you), and operating Principles (a less top down dictatorial approach to values). Where relevant these will be backed up by yet another P, Proof points. Phew!

📐 Framework #4: Brand Idea – The brand idea is the shorthand for the brand strategy and drives the creative for the brand. It’s succinct, compelling and drives the direction of how the brand will show up. Often a brand idea is accompanied by a brand narrative, a story that is rich in meaning, feeling and inspiration, articulating the journey the brand has been on, but more importantly where it wants to go.

📐 Framework #5: The Golden Circle – A simple three circle model made popular by Simon Sinek that focuses on the What, How and most importantly, Why of a company.

In conclusion

A brand strategy is an essential foundation for any business. It gives customers clarity and points an organisation in the right direction. It aligns teams and helps a business stand out from its competition. Decision making, hiring, and the ability to scale and enter new markets are all impacted by the strength and clarity of a solid brand strategy. And whilst it might be used day in and day out by the marketing and brand team, the true value is felt when the entire organisation puts it to use.

Deep-Dive further with more reads

To deepen your understanding of the topic and continue your brand strategy journey, we recommend the following books and blogs:

“Good Strategy Bad Strategy – The difference and why it matters” by Richard Rumelt
“The Brand Gap” by Marty Neumeier
“How to Define Your Vision, Values, Purpose and Mission Statement” by Nobl Academy

Let us know what you think

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