A unique, versatile or killer brand can make millionaires but a broken or ruined brand can lead to bankruptcy.
A brand is defined as: “A name, symbol, or another marker that businesses use to distinguish their products from competitors and foster a public identity”. Boring to some but vital for businesses all over the world.
I can guarantee most will recognise the above brands. They have a huge value, for example, Apple’s brand is worth more than the total GDP of Turkey at over $947 billion. The next 5 largest brands are worth more than the total GDP of the UK – the 6th wealthiest country in the world.
So what exactly is a brand?
Arcadia Education’s brand is focused on high-quality education and teaching, and world-class facilities. The brand’s message is to nurture lifelong learning.
The term brand refers to a business and marketing concept that helps people identify the company, product or individual and are largely responsible for affecting people’s perceptions. A brand is considered to a company’s be most valuable asset.
What could possibly go wrong?
This slogan for a small Scottish drinks manufacturer called Barr proved utter genius. Irn-Bru used this slogan as a comedy theme in its advertising campaign, enabling it to outsell Coca-Cola in Scotland. Their quirkiness drove up Barr’s brand value and the value of its products and associated brands around the world.
But some things do go wrong, especially for the business owner, Gerald Ratner.
In 1990, Ratner’s Jewellery stores were on every UK high street. Everyone loved the affordable products but one fateful day ( April 23rd 1991) Ratner was a guest speaker at the Institute of Directors. The event was attended by over 6000 business employees and journalists. When asked how it was possible for his company to sell products at such a low price, Ratner responded with the following:
“We sold a pair of earrings for under a pound, which is cheaper than a shrimp sandwich from Marks and Spencer but probably wouldn’t last as long”.
The next day his company’s value dropped by 500 million pounds.
What can businesses learn from Ratner’s mistake?
It is absolutely vital to nurture and build a brand whether a company or individual.
Companies must determine their brand identity and how they wish to be viewed by the public. For example, the power of a logo, slogan, or product should not be ignored. The goal is to make the brand memorable and appealing to the consumer. The lesson here is by perfecting your advertising, your company will start to make more money.
But how does that work for individuals?
With every interaction whether that be a smile, frown, social media post or clothing choice we as individuals are telling the world what our values are and what our identity is. Our observers are continually building a perception of our character.
Our character is our brand and how we nurture could have an impact on our future value. The internet never forgets as we can see from celebrities and sports personalities currently facing backlash due to old Twitter posts.
Your personal branding will affect future careers and how friends and family perceive you, so it’s a great idea to begin focusing on what your brand is.
Investing in yourself, your brand and others’ perception really will be the best investment you can ever make. Make it your best asset like Nike or Apple.
