Creating a new brand in trying times – embrace the fundamentals PART 1

PART 1 of three blog posts

Sitting here writing this in balmy 30 degree sunshine and blue skies overlooking the most beautiful harbour in the world, I seem momentarily a million miles away from the economic trauma impacting on businesses all around the globe. Connecting to the internet on my laptop, the BBC News website however brings reality into play with graphic depictions of terrorist strikes in Mumbai, Woolworths in the UK looking for a bailout; and GM, Chrysler and Ford in dire straits in the US. We are being assaulted by endless bad news on the business and political scene.

It seems that countless television news articles, media sites and business blogs are only too keen to update us on the bad news. Distinguished captains of industry, business analysts and academics at leading universities are revelling in the opportunity to lecture us on how recessions happen and the financial, psychological, historical, political, scientific and geographical implications, and the impact it is having on the price of petrol we put in our tank… that this is the recession we had to have, driven by greed and flawed governance of global financial systems.

Get it right on the inside first before you unleash it on the outside

The reaction from many companies affected by the downturn is to go on the defensive and either batten down the hatches and hide below decks until the storm passes, or slash and burn marketing budgets, delay business building initiatives and identify the poor performers in the workforce who are most expendable.

The last thing you would expect someone to be attempting in these trying conditions is to kick start a new business venture and crank up the brand building process. Yet for the more astute entrepreneurs this is probably the most opportunistic time in the last twenty or more years to be planning and building a new business. Why do I say this?

> You are likely to have fewer competitors now than you would have had this time last year.

> Established competitors need to reposition their brands and educate customers in line with the new market conditions

> Businesses are averse to change – those that can adapt to change are the new leaders of tomorrow

> It is a lot easier to catch the attention of customers in a market experiencing low levels of marketing activity

> History tells us that downturns breed innovation, and innovation breeds success

> The present market conditions are changing consumer loyalties – they are re-considering their choices, opening up the opportunity for new brands to steal market share

> Consumers will become more demanding and want more value and reward from the brands they associate with

> Brands with the strongest proposition will be the new winners

Make sure it is uniquely different from those of your competitors

Yes people are cautious, but the world doesn’t stop even for a recession. After the initial slashing and burning of marketing budgets, companies will begin to realise that to maintain their hard won position in the marketplace, they will have to start marketing with strong conviction.

Entrepreneurs will be naturally cautious to start up a new business, particularly in the first half of 2009. Market analysts are suggesting that consumers deprived of their natural spending habits will start to feel the retail itch and the need to satisfy their cravings for new products and new experiences, spurred on by the potential for some of the biggest January/February sales in history.

So how do you go about establishing a new brand and priming it for success in these trying times? You must focus much more on getting the basics right. After more than 20 years in the branding business, I have come to recognise the essential considerations that ensure a brand gives of its best. Here’s a sobering thought – if you don’t get all of these right, there is every chance you will never gain maximum benefit from your brand, which in this economic climate may just make the difference between success and early failure. Here are several of the more important ones:

Invest in advice from an experienced branding consultant

Select an experienced branding consultant
Always work with, and gain advice from, people who are specialists in their field. At this critical juncture, don’t rely on ‘gut feel’. Establishing and building an effective brand is critical to your future success. Select carefully, as there are plenty of ‘creatives’ disguised as branding experts who will be only too keen to take your money and design for you a new logo, brochure and some stationery – which won’t get you very far. An experienced branding consultant goes much further by helping you to define your business, differentiate it, market it and prepare you for success. Ensure they are attuned to the changing market conditions.

Part two of this blog post to follow shortly…

Tony Heywood is an international branding consultant and founder of Heywood Innovation in Sydney and co-founder of BrandSynergy in Singapore.

View some of Heywood’s work on www.heywood.com.au

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