A Blueprint for Branding a Business at Every Stage
By Harper Willis
Has your branding strategy changed since your business was in its initial start-up phase? More importantly, should it?
A recent study published in the Journal of Brand Management concludes that the life of your brand goes through stages. Study authors Mari Juntunen, Saila Saraniemi, Milla Haittu and Jaana Tähtinen of the University of Oulu, Finland looked at small- and medium-sized businesses and research in the field of corporate branding and concluded that that not only should your branding evolve, it must match your current stage of growth.
Here's how they define each stage, and what each one calls for in terms of brand-building activities:
Stage 1: Pre-establishment
During the pre-establishment stage of growth -- that is, before the company is actually operating -- it's mostly the owner and his or her friends, family, and financiers who impact company decision-making.
Most important brand-building task: At this point you're still formulating your business idea -- why the company exists and what it will do -- and (hopefully) creating a list of core values. This isn't the time to ramp up your marketing campaign. Your goal is to find a clear direction as soon as possible. "This is how [you] will attract the right people -- employees, management, investors -- to help [you] achieve [your] goals," says Ricardo de la Blanca, CEO of the multinational marketing consultancy DLB Group Worldwide.
Stage 2: Early growth
In the early growth stage, a company is up and running, but might not be profitable or even earning revenue yet. Now that the company is established, it has a whole new group of stakeholders including customers, suppliers, investors, employees, and partners.
Most important branding task: Come up with a clear and consistent message -- based on the company's core values that are already in place -- to communicate and build healthy relationships with stakeholders, especially employees. Many companies do this by attending industry trade shows. But it can be as simple as management meeting and talking directly with stakeholders
De la Blanca adds that while it's important to have a big picture message, at this point you need to be able to tailor your message to different parties. "Customers don't want to hear about the company's profitability -- they're the ones who are paying for it. Shareholders, on the other hand, do."
Stage 3: Effective growth
Once a company enters the effective growth stage, this means it's earning revenue, it has a coherent brand identity and is looking to expand and grow.
Most important branding task: Don't lose touch with your core values. "Coca Cola made that mistake. They got sucked into competing with Pepsi's more hip brand, and were punished for it. That's when they had to go back and add Classic to their name," says de la Blanca.
Of course, branding -- like most things in business -- rarely follow a tidy three-step plan. What do you think, readers? Are the academics on to something here?
For a different perspective, check out this take on why small businesses don't need to worry about branding.