Brand strategy v business strategy
It’s a common point of confusion…
What is the intersection of business strategy and brand strategy? Do I need both? Which one comes first? What is more important?
I recently worked with an organisation who had spent considerable money on a corporate rebrand, had launched a new website and were in the midst of delivering a large and expensive signage replacement program.
The problem was that despite their good intentions, they had cut costs in the development of a brand strategy – there was nothing strategic underpinning their new brand.
Without a brand strategy, the organisation was struggling to differentiate itself in the market. They were unable to articulate their value proposition clearly; they were confused about who their target audience was, and their marketing efforts and budget were thinly spread to reach everyone and anyone.
Leadership held the misconception that business strategy would be enough to provide guidance and strategic direction, but without a brand strategy there was inconsistency, confusion, and missed opportunities to build a strong and recognisable brand.
Both strategies are critical to an organisation’s success… there are some clear cross-over points.
1. Purpose and vision: Both brand strategy and business strategy start with defining the purpose and vision of the organisation. The brand strategy defines how the organisation wants to be perceived by its customers and stakeholders, while the business strategy outlines how the organisation will achieve its long-term objectives.
2. Target audience: Understanding the target audience is crucial for both brand and business strategies. The brand strategy defines the ideal customer profile and the messaging that resonates with them, while the business strategy identifies the target market segments and how to reach them effectively.
3. Competitive advantage: Both strategies aim to establish a competitive advantage for the organisation. The brand strategy focuses on creating a unique brand identity and value proposition that sets the organisation apart from competitors, while the business strategy identifies how the organisation will compete in the marketplace and achieve sustainable growth.
4. Execution and implementation: The brand strategy and business strategy need to be aligned in their execution and implementation. The brand strategy informs the marketing and communication efforts to build brand equity and loyalty, while the business strategy guides the operational and financial decisions to achieve the desired business outcomes.
5. Long-term sustainability: Both strategies contribute to the long-term sustainability of the organisation. A strong brand strategy helps build customer loyalty and advocacy, while a well-defined business strategy ensures that the organisation is profitable and resilient in the face of market challenges.
In essence, brand strategy and business strategy are two sides of the same coin, with the brand strategy defining how the organisation wants to be perceived and the business strategy defining how the organisation will achieve its goals and objectives. Aligning these two strategies is essential for driving growth and success.
