Faced with the need to navigate the complexities of today's business reality, brands must embrace a strategic, authentic and innovative approach.
In a debate launched by Ziarul Financiar on the occasion of the publication of the first edition of the Romanian Brands Yearbook 2024, Mona Ursu, CEO of Brandfusion, explores the fundamentals that define the success of a brand at the beginning of its journey and the sustainable impact of branding, both for new and traditional businesses, offering some essential tips for young entrepreneurs.
1. What chance of success does a brand at the beginning of its journey have today, given how competitive the market is, not only locally but also internationally?
Essentially, the brand reflects the effectiveness of its business model, its products and services, and its ability to resonate with customers and their needs. So, the journey of a brand begins from the moment the business idea was born. Therefore, the short answer to the question: What chances does a brand have at the beginning of its journey, would be: As many chances as the business has.
And the chances of success of a business are influenced by many factors, among which I would mention:
The uniqueness of the business idea. In other words, how viable is that idea or that product/service. As we know, ideas are born from the opportunities that entrepreneurs identify, at the level of needs and expectations of the market or of an audience. That's why new businesses need to take some uptime and verify the viability of the idea. Otherwise, they find that the idea, although good, does not have enough market, is not exactly a topic of maximum interest to audiences, requires much more resources than predicted, etc.
Articulated business model. We have seen businesses that started from the idea that the online environment, i.e. an online store, is enough to put a product on sale and that, along the way, made a series of zigzags, introducing into the business model various distribution channels, including physical stores. All this pendulum of being or not to be, has only stretched the patience of entrepreneurs to the maximum, erode their enthusiasm and, in the end, turn an idea into a failure with delayed effect.
Financing. The dream of “making a deal” instantly and with little or no money is long over. Today, businesses can start from a brilliant idea, which is based on a unique, proprietary resource (knowledge, recipes, skills, exclusives, etc.) that can be implemented in a short time, in which case financing is relatively easy, through investors or other modern forms of financing, which causes the brand to receive attention and investment considerable, to support the rapid growth and dominance of the category.
Or, the most common case of businesses, in which the establishment occurs after a long period of time, years of involvement of entrepreneurs, with financing from their own resources, situation in which the brand will not be able to benefit from investments to be created and then promoted.
Resilience. To achieve sustained success, businesses should prioritize their long-term results, not be distracted by short-term ones. The construction of the brand is the result of long-term work, constant investment and close attention to it.
2. What advice would you give a young entrepreneur to make his brand stand out?
My advice to young entrepreneurs is that when they think about the brand of their business, they do not forget that it is the faithful mirror of what they do in the business, of the way they think and deliver the services and products, and above all, the brand is the mirror of the idea that animated them to start the great adventure of the business, other than that of making a profit. I advise them to remember that the business brand is not a construction independent of it, that tells a romantic, imaginary story, designed to project a different image than the business itself or that just wants to shock in order to be noticed.
If I were to adapt the motto attributed to Oscar Wilde - “Be yourself; everyone else is already taken!”I would say to young entrepreneurs, “Build your brand on that authentic place of your business. Because the rest of the places are already occupied by other brands.”
3. How much can a brand contribute to the success of a business, especially one that is at the beginning of its journey? What about an old business?
Whether we are talking about a new brand or an old brand, it should be seen as a tool for organizing information about the business and, at the same time, a tool for transmitting information in a creative form. Thus, the brand manages, on the one hand, to create connections with its external audiences (customers, consumers, partners, shareholders, media, etc.) and on the other hand, to put into action the business strategy among internal audiences (employees, management).
This strategic organization of information is called brand strategy, the pillar around which important activities of a business are operationalized, from the creation of products, to the optimization of the portfolio of services and products, from the employer strategy, to the promotion strategy, etc.
With this in mind, it goes without saying that the role of the brand at any stage of the evolution of a business is decisive for its healthy development.
Businesses at the beginning of the road benefit from cost reductions due to price war protection, brand support in negotiations with distribution partners, attractiveness as an employer, implementation of strategic decisions, which the brand transmits to the organization. In the case of legacy businesses, it also adds to the list of benefits and increased revenue due to customer loyalty, premium price that customers are willing to pay, attractiveness for potential co-branding partners, chances of success for new products launched, etc.
In figures, the study mentioned in the book Brand Asset Management by author Scott M. Davis states that more than 50% of customers/consumers would be willing to pay a 20%-25% higher price to the brand they are loyal to before moving to a competing brand, and that 40% of them are willing to try new products from a favorite brand because of their credibility and trust in it.
4th. What do you think are the elements related to branding that can make the difference between success and failure?
As I said, the brand serves as proof of the viability and success of a business. It can be called proof of concept of a business. From this perspective, here are some of the elements related to branding that can make the difference between success and failure for a business:
Brand identity. Maintaining a consistent brand identity across all channels and at all points of contact with customers helps establish their trust.
Value proposition. The clear, convincing and effective communication of the unique value proposition that the brand makes, attracts the attention of customers and influences their loyalty.
Authenticity of the brand. Authenticity builds credibility and fosters consumer trust. Brands that stay true to their values, beliefs, and promises resonate with customers on a deeper level, leading to stronger connections and repeat purchases.
Marketing and communication. Effective marketing efforts, which communicate brand messages to the target audience, are decisive for the success of a business. Captivating stories, compelling visuals and consistent messages help capture attention and increase brand affinity.
Innovation and adaptability. Brands that innovate and adapt to changing market dynamics demonstrate agility and relevance. Being ahead of trends, adopting new technologies and continuously improving products or services shows a brand's commitment to meeting the ever-changing needs of customers.
Brand Reputation Management. Proactively managing your brand's reputation and promptly addressing any negative feedback or issues, is essential to maintaining brand trust and credibility. Building a positive reputation through transparent communication, ethical practices and delivering on promises, can ensure the long-term success of the brand.