If you’re a small business with a relatively new brand, you might still be working on finding your place in your industry. Many small businesses focus on actions and getting things done so they can start selling to their customers. They often overlook the importance of building a brand identity and strategy to position themselves in the right place in the market to appeal to customers. There are several critical reasons that brands should work on their strategy as part of their journey in defining their values, logo, messaging and much more. Here are some key reasons why every brand needs a well-thought-out strategy to succeed. 

Set you apart from your competitors

A brand strategy identifies why you’re different from your competitors and why your target audience should choose your product or service. It is essential to define this internally so you can create the right impression and messaging that effectively communicates this to your potential customers. Suppose you’ve opened up a new pub in your local town where there are already several other pubs for consumers to visit. You need a strategy to encourage people to switch from their favourite pub and come and try your venue instead. This could be your alternative selection of unusual beers or your street food combined with the music you play for your customers. Defining this difference at the start of your business journey will help shape your entire business strategy. If you don't determine what sets you apart from your competitors on paper, how will you communicate your vision to your customers? 

Creates a focus for your business

Businesses often try many different things if they're experiencing a dip in sales or a quiet period. This can be more damaging to your business than riding out the storm and persevering with your primary business focus. A brand strategy creates a guide for your business and rules out ideas that go against your brand ideals and values. For example, if you’ve created a strategy that includes sustainability as a key element, you should stick to this strategy. If someone suggests switching your environmentally friendly packaging to a cheaper plastic alternative, you can firmly refuse this idea because it goes against your brand strategy. Everyone in the business will be on the same page and understand what is and isn’t important to uphold the brand values. 

It helps steer your brand design

Having a clear brand strategy helps to steer design decisions. A good brand strategy clearly identifies what the logo, colours and imagery need to portray to designers. If you don’t provide designers with a high-quality brief, you may end up with something generic that doesn’t stand out from the competition or reflect your product. Some companies may struggle to match their brand strategy and design elements; a brand consultancy can help with this process. They can objectively look at your current brand image and ensure it marries up with your brand strategy. Suppose you don’t have a brand strategy. In that case, an expert can help your business to identify your position in the market and carve out a brand strategy that provides clarity and enables your business to evolve. 

Increases your company value 

If you have a clearly defined brand strategy that matches your product or service and sets you apart from your competitors, the value of your brand will be higher. Investors will be able to understand your company's purpose and brand clearly and are more likely to want to invest in your company. If you want to sell your brand to another business, a brand strategy is highly valuable; you will get more money for your business, and a larger number of buyers will be interested.

These are just a few reasons why it is important to have a clearly defined brand strategy that examines your company's position in the marketplace, your values as a brand and how your product or service is different from your competitors. Your brand strategy should also include a detailed explanation of your target market. This will help to help focus your marketing efforts and prevent an approach that is too broad and therefore doesn’t appeal to anyone. 

Resources:

• Brand Positioning Agency - Ameba Ownd

• Marketing Agency Hong Kong - Mataroa