When you think about a product, is a particular product the first thing that comes to mind?
For example, if you are thinking of replacing your company’s copiers, do you naturally think of Canon as the copier (office equipment)?
This process of making consumers and the market aware of a company’s concept and brand and establishing a certain position in the market is called ”
branding
.”
Here, we will explain everything about branding strategy, from basic knowledge such as its meaning and content, to the branding methods used by successful companies.
What is “branding strategy”?
“Branding strategy” refers to a marketing method that makes a “brand” broadly recognizable to consumers and the market, and further establishes a certain position.
“Brand” here is a concept that distinguishes a product or service from other products or services in the same category.
This “brand” is not limited to one item.
Specifically, it can be said that a “brand” is established by combining the name, trademark, design, catchphrase, packaging, etc. of a product or service.
●Why is branding strategy important?
So why is “branding strategy” attracting attention?
The main reason why we place importance on a “branding strategy” is that it allows us to clearly differentiate our products and services from other products and services within the same category, and it also allows us to stand out one step ahead of others.
If your brand is naturally recognized in the market and a positive image permeates people’s consciousness, you won’t need to take any measures to get people to choose your company’s products or services.
In other words, it is possible to cut the cost of promoting the product. Specifically, it is possible to use the cash spent on marketing such as advertising and sales promotion costs to invest in product development, capital investment, and other activities aimed at future business expansion.
Also, if your brand is established in the market, you will not be swayed by the movements of your competitors. Another great appeal is that you can stick to your own path without having to participate in price competition.
●Branding strategy is necessary even for BtoB companies
Even BtoB companies need a branding strategy. This is because the purchasing process of a customer company involves individuals such as buyers and other purchasing personnel, internal reviewers, and upper management who make decisions.
When a person in charge actually considers which product or service to purchase, if the branding in that field is established, there is a higher probability that the product or service will be considered as a candidate.
In addition, when it comes to decision-making within a company, the higher the degree of penetration, the more likely it is that a contract will be reached smoothly.
Branding methods of successful companies
Now, let’s take a look at the methods used by companies that are actually successful with branding.
On April 4, 2019, the world flagship store “MUJI Ginza” will open on Namiki Dori in Ginza, Tokyo.
“MUJI” originally had a history as a private brand of Seiyu.
In the 1970s, competing supermarkets took the lead in producing unbranded products, which were associated with the image of being “cheap or bad.” There was an assumption that the reason the price was low was because the product was inferior.
MUJI, on the other hand, confronts this head-on and explains the reason for keeping prices low, and sends out an image of being “no-brand, but top-notch quality.”
Once the concept is decided upon, corporate activities will change accordingly.
Specifically, in order to stick to our concept, we opened an independent roadside store in a prime location in Aoyama in 1983.
Focusing on the concept of “comprehending food, clothing, and shelter, and adhering to one philosophy (a comfortable life)”, we opened the store as an independent roadside store to showcase the lifestyle itself.
The store itself had an old brick exterior and exposed concrete interior, and sold inexpensive, unadorned miscellaneous goods and food, and the “MUJI” brand quickly penetrated the market.
Currently, “Ryohin Keikaku”, the company behind “MUJI”, has established a corporate philosophy of “Naturally. Anonymous. Simple. Great for the Earth.” The company handles approximately 7,000 items, including furniture, home appliances, tableware, and cosmetics. It also extends to
MUJI products, which are particularly simple and easy to get tired of, are often used in corporate offices, and we are also developing corporate services that can coordinate offices.
It is widely used in offices, model rooms, schools, employee dormitories, etc.
In order to be successful with a branding strategy, the key is deciding on a concept and how far you can stick to it, in other words, unity and consistency.
What is important in branding strategy?
The important thing in a branding strategy is to make “branding” a major project shared within the company.
Actually, branding strategy does not involve doing anything specific.
The concept is not only marketing but also the entire company’s activities as a pillar. We must place the brand concept at the root of all corporate activities and derive from it.
Therefore, even if the marketing department carries out branding strategies alone, the results will be half-hearted, and there is a possibility that the brand will not be established enough to be recognized by consumers and the market.
The most important thing is to thoroughly embody the concept throughout the company until the brand is established.
It can be said that it is important to approach this as a project that can cross companies.
summary
◆There are various methods for branding strategies.
◆It is common to establish a “brand” for products and services, but there are also companies that use personal branding skillfully.
◆Tesla’s Elon Musk and Apple’s Steve Jobs are charismatic leaders who connect with companies and solidify their positions in the market.
◆ Consider which method is suitable for you