What Great Brands Do

In today's competitive business landscape, building a strong brand is more important than ever. Denise Lee Yohn's book "What Great Brands Do" offers valuable insights into how iconic brands like Nike, Apple, and Starbucks have achieved their status and maintained their influence over the years. This comprehensive guide explores the principles that set great brands apart and provides practical advice for businesses looking to strengthen their brand identity.

Introduction

When we think of brands, we often associate them with logos, marketing campaigns, or specific products. However, Yohn argues that a brand is much more than that – it's the personality of a business that should guide every action and decision. This book delves into the strategies and principles that successful brands employ to create lasting connections with their customers and maintain their market position.

The Power of a Strong Brand

A strong brand offers numerous benefits to a company:

1. Higher profit margins: Customers are willing to pay more for brand-name products they trust and value.
2. Organizational alignment: A brand can serve as a strategic compass, guiding the company's culture, processes, and marketing efforts.
3. Customer loyalty: Emotional connections with customers lead to long-term relationships and repeat business.

Key Principles of Great Brands

1. Brand as Business Strategy

Great brands understand that branding is not just a marketing function but an integral part of the overall business strategy. They use their brand as a guiding force for all aspects of the organization, from product development to customer service.

For example, Starbucks doesn't compromise on the quality of its in-store experience, even if it means higher costs. This decision aligns with their brand promise of providing a "third place" between home and work for customers to relax and enjoy their coffee.

2. Corporate Culture as Brand Foundation

A strong brand starts from within the organization. Aligning corporate culture with brand values helps employees work together toward a common goal and amplifies the brand's power toward customers.

To achieve this alignment, companies should:

1. Educate stakeholders about the brand's values and importance
2. Help employees understand how their actions impact the brand
3. Use brand toolboxes and engagement sessions to reinforce brand values

For instance, Starbucks held brand engagement sessions where managers participated in a walk-through presentation following the journey of a coffee bean from farm to cup, explaining how the company's brand affected every step.

3. Emotional Connection with Customers

Successful branding is about creating an emotional bond with customers, not just selling products. Nike's "Just Do It" campaign is a prime example of this principle in action. The campaign featured both professional and amateur athletes talking about their emotions and accomplishments without mentioning Nike, evoking a powerful emotional response from viewers.

To build emotional connections, brands can use empathic research, asking customers questions like:

• How do you feel when buying the product?
• What need is satisfied when you buy and/or use the product?

This approach helps brands get closer to their customers' private lives and understand their deeper motivations.

4. Creating Trends, Not Following Them

Great brands don't chase after the latest trends; they create their own. Following trends can put a brand in a comparative position, where consumers see it as a follower rather than a leader.

Instead, brands should:

1. Challenge existing trends and industry dogmas
2. Anticipate and take advantage of cultural movements

For example, Chipotle challenged the notion that fast food chains need to cut prices and expand menus to be competitive. Instead, they focused on high-quality ingredients and better-paid staff, creating a unique position in the market.

5. Focusing on Core Customers

Trying to appeal to everyone can compromise a brand's integrity. Great brands focus their energy on core customers who align with their values and identity.

To identify and target core customers, brands can use needs-based segmentation:

1. Identify ideal potential customers
2. Analyze their daily needs related to the product
3. Focus marketing efforts on needs that align with the brand's identity

This approach allows brands to create a strong, loyal customer base rather than diluting their message to appeal to everyone.

6. Adhering to Core Ideology

Great brands maintain their integrity by staying true to their core ideology, even if it means saying no to enticing opportunities. This discipline helps brands avoid compromising their values for short-term gains.

When faced with difficult decisions, brands should look to their original intent and core values. Sometimes, this means turning down "once-in-a-lifetime" opportunities if they don't align with the brand's ideology.

7. Consistency Across Customer Touchpoints

To build a strong brand, companies must ensure that every detail of the customer experience aligns with their brand values. This requires:

1. Identifying all customer touchpoints (e.g., packaging, marketing, sales channels, customer support)
2. Aligning each touchpoint with brand values
3. Monitoring how employees at each touchpoint live up to these values

Attention to detail is crucial in forming a connection between the brand and customers. Apple, for example, carefully orchestrates every aspect of the customer experience, from product packaging to the feel and smell of their devices.

8. Brand-Relevant Social Responsibility

In today's socially conscious market, "doing good" has become a key factor in branding. Consumers are increasingly choosing brands based on their trustworthiness and sense of responsibility toward people and the environment.

However, it's important that a brand's charitable efforts are:

1. Generous and not calculated
2. Relevant to the industry, community, or target customers
3. Aligned with the brand's ideology

For example, Starbucks' "Create Jobs for USA" program, which provided financing for struggling local businesses, aligned perfectly with the brand's socially oriented culture.

9. Internal Brand Alignment

For a brand to function as a guiding compass for an organization, it's essential to operationalize the brand strategy across the entire company. This requires:

1. Distributing brand information to all employees and ensuring they stay updated
2. Implementing projects that align the whole organization with the long-term brand strategy
3. Appointing brand leaders and evangelists to represent brand values within the company

Companies can reinforce brand values through activities like brand toolboxes, engagement sessions, and rewards for employees who demonstrate brand values particularly well.

Case Studies of Great Brands

Throughout the book, Yohn provides numerous examples of how successful brands have applied these principles:

Nike

Nike's "Just Do It" campaign is a masterclass in creating emotional connections with customers. By focusing on the feelings and values associated with athletic achievement rather than the products themselves, Nike built a brand that transcends mere sportswear.

Starbucks

Starbucks has successfully created a "third place" between home and work, anticipating societal trends toward increased isolation. Their attention to detail in store design, music, and customer service all contribute to a consistent brand experience.

Apple

Apple's obsession with design and user experience, championed by Steve Jobs, has become a core part of their brand identity. This focus on design extends to every aspect of the customer experience, from product packaging to retail store layouts.

Red Bull

Red Bull's divisive brand strategy, which initially encouraged rumors about the drink's danger, helped create a strong identity that appealed to its core audience of young, thrill-seeking consumers.

Chipotle

By challenging fast-food industry norms and focusing on high-quality ingredients and better-paid staff, Chipotle created a unique brand position that resonates with health-conscious consumers.

Implementing Brand-Building Principles

To put these principles into practice, companies should:

1. Define their brand's core values and ideology
2. Align their corporate culture with these values
3. Identify their core customers and focus on building emotional connections
4. Create unique trends rather than following existing ones
5. Ensure consistency across all customer touchpoints
6. Engage in socially responsible activities that align with the brand's values
7. Educate and empower employees to become brand ambassadors

Challenges and Pitfalls

While building a strong brand offers numerous benefits, there are also challenges to be aware of:

1. Resisting the temptation to chase short-term profits at the expense of brand integrity
2. Avoiding the trap of trying to please everyone, which can dilute the brand's message
3. Maintaining consistency across all aspects of the business, especially as the company grows
4. Balancing the need for innovation with staying true to core brand values

The Future of Branding

As consumer expectations continue to evolve, brands will need to adapt to remain relevant. Some trends to watch include:

1. Increased focus on sustainability and social responsibility
2. Greater emphasis on personalized experiences
3. The growing importance of digital touchpoints and online brand presence
4. The rise of purpose-driven brands that stand for more than just their products

Conclusion

Building a great brand is not just about marketing or advertising – it's about creating a cohesive identity that guides every aspect of a business. By following the principles outlined in "What Great Brands Do," companies can create strong, lasting connections with their customers, align their organizations around a common purpose, and achieve long-term success in the marketplace.

The key takeaways from Denise Lee Yohn's book are:

1. A brand is the personality of a business and should guide every action and decision.
2. Great brands create emotional connections with customers rather than just selling products.
3. Focusing on core customers and staying true to brand values is more important than trying to please everyone.
4. Consistency across all customer touchpoints is crucial for building a strong brand.
5. Social responsibility efforts should be genuine and aligned with the brand's ideology.
6. Internal brand alignment is essential for creating a powerful, cohesive brand identity.

By implementing these principles, businesses can transform their brands from mere marketing tools into powerful strategic assets that drive growth, foster customer loyalty, and create lasting value for their organizations.