Establishing brand values is crucial for successfully branding your business. In a competitive market, brand values help differentiate your business from competitors. They define what your brand stands for and what sets it apart. Clear and well-defined values give your business a unique identity that resonates with your target audience.
What is Brand Value?
Rani Cohen, Chief Marketing Officer, Australian Family Lawyers, defines brand value as, "Brand value is the ‘perceived value’, and how often people will choose one brand over alternatives. Brand value is important because when people perceive that a brand is distinct and aligns with their personal values, it’s a really powerful competitive advantage."
So, as per standard definitions, brand value refers to the worth of a brand to its customers. It's a matter of debate in the world of branding and marketing, and there are two schools of thought on it.
The first one is Financial worth which is the monetary value assigned to a brand. The second one is Perceived worth which is the worth that consumers perceive your brand.
Let’s have a look at both.
Financial worth signifies the market value of a brand. It can be calculated on the basis of the current and future sales, as well as the potential for the future growth of the brand. For eg., the financial brand value of Coca-Cola is around $78 billion, as per a report by Statista.
On the other hand, the perceived worth of a brand denotes how important customers feel your brand is to their life, job, or social status. For eg., both Pepsi and CocaCola are both soda companies, but many soft drink consumers perceive Coca-Cola to have a higher brand value than Pepsi as per market research reports.
When customers find value in a brand, they can develop loyalty towards it, thus discouraging other companies from joining the market and protecting the market share of an existing company. For eg., a diaper brand like Pampers is well-known in the market for its brand value and reputation. Other companies in the hygiene or baby products industry may opt for other product lines outside of diapers to avoid competing with market leaders, which may be detrimental to their bottom line.
Other than Financial and Perceived worth, there are other benefits of Brand Values too.
Consistency: Brand values serve as a guiding framework for all aspects of your business, from product development to customer interactions. They ensure consistency in messaging, visuals, and overall brand experience. Consistency builds trust and familiarity, making your brand more memorable and reliable.
Attracting the Right Audience: Brand values help attract customers who align with your beliefs and principles. When your values align with those of your target audience, it creates an emotional connection and builds long-term relationships.
Employee Alignment: Clearly defined brand values provide a foundation for your company culture. They guide employee behavior and decision-making, helping create a cohesive and aligned workforce. When employees share and embody your brand values, it enhances internal communication, teamwork, and overall company performance.
Reputation and Trust: Strong brand values contribute to a positive brand reputation. When your business consistently demonstrates its values through actions, it builds trust with customers, partners, and stakeholders. A reputable brand is more likely to attract new customers and maintain loyalty from existing ones.
Flexibility and Adaptability: Brand values act as a compass during times of change or crisis. They provide a foundation for decision-making and strategic direction. Brands with well-established values can navigate challenges while maintaining their core identity and purpose.
Brand Advocacy: When customers connect with your brand values, they become brand advocates. They are more likely to share their positive experiences, recommend your products or services, and engage with your brand on social media. This organic word-of-mouth marketing amplifies your brand's reach and impact.
Establish Your Brand Values
By establishing clear brand values, your business can create a distinct identity, build trust, attract the right audience, and foster long-term loyalty. Consistently living up to these values strengthens your brand and sets the stage for success in the marketplace.
Ascentspark Software can help establish your Brand Values and formulate a branding strategy and plan that suits your business and target audience.