What Is Brand Strategy? - Definition, Examples & Development

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  • 0:00 Definition of a Brand Strategy
  • 0:47 The Coca-Cola Example
  • 2:55 Components of a Brand Strategy
  • 4:26 Who's In Charge of a…
  • 4:41 Lesson Summary
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Lesson Transcript
Instructor: Amy Kasza

Amy has a master's of library and information science and a master's of arts in history.

What makes a product like Coca-Cola an iconic brand? How is it so well known that people around the world instantly recognize and buy it? A big part of the answer is found in its brand strategy. Learn about the components of a brand strategy and how to formulate one.

Definition of a Brand Strategy

A brand strategy is a formal plan used by a business to create a particular image of itself in the minds of current and potential customers. When a company has created and executed a successful brand strategy, people know without being told who the company is and what they do. Companies as large and established as Coca-Cola, as well as small brands and even businesses that sell services to other companies, all benefit from a carefully created brand strategy. As a result of brand strategy, people develop a particular feeling or opinion about a company—a feeling that drives their buying decisions. This feeling equates to brand equity. The stronger people feel about a brand, the stronger the brand equity.

The Coca-Cola Example

Coca-Cola, or Coke as it's best known, provides a comprehensive example of an effective brand strategy. What began in 1886 as a syrup mixed with carbonated water and sold at soda-fountains in the American South is now a global, multi billion-dollar brand. It achieved this success through a carefully planned and consistently executed strategy aimed at making Coke popular, trusted, sought-after, and successful.

Shortly after the Coke formula was invented, one of the original Coke business partners suggested the name and designed the Coca-Cola logo still used today, including its distinctive font. Now that the product had a formula and a name, it needed customers. That's where the next step of the Coke brand strategy came into play—building relationships with potential new customers by handing out coupons for a free sample of Coke. This goodwill gesture of a give-away became the first Coke marketing campaign.

The next sign of success for Coke came in the form of competition. Other soft-drink makers began to try to imitate the Coke formula. It was easy to fool people in the days when sodas were sold primarily in glasses at soda fountains, with no ability to identify the product with a familiar bottle or aluminum can to ensure authenticity.

To counter the competition, Coke began its own bottling operation. At the same time, it began to build a distribution network so that Coke could be sold far outside the bounds of its native Atlanta, Georgia. But bottling operations in far-away cities used whatever bottles they had on hand, which meant that Coke was being sold in bottles of all different shapes and sizes. This inconsistency threatened the brand integrity of Coke—in other words, the expectations its customers had of the brand. Without a consistent appearance, a brand's ability to build loyalty is diminished. So, Coke designed its own unique bottle in 1916.

Throughout the 20th century, the evolution of the Coke brand followed a series of logical steps that, taken together, comprise a brand strategy. Not coincidentally, these steps share a lot in common with the components of a brand strategy for any product or company.

Common Components of a Brand Strategy

The answers to the following questions provide the framework for creating a brand strategy for virtually any brand. Thinking them over carefully and writing down the answers is an important exercise in creating a brand strategy.

What does your product or service do? In the case of Coke, their famous slogan explains what Coke does: 'The Pause That Refreshes.' So, Coke provides refreshment. An office supplies store might answer this question with 'we provide convenience and cost-effectiveness.'

Who is your product's target audience? It's important to narrow this down from everyone to the key groups of people who are likely to be interested in your product or service.

What is your brand's image? This question goes beyond logo and incorporates font styles, colors, types of imagery, style of language—everything perceived by the five senses that represents your brand.

How do you want your brand to make people feel? Coke might answer, 'Relaxed, happy.' An auto repair shop might answer, 'Relieved, treated fairly.' A clothing store that serves business women might answer, 'Sophisticated, confident.'

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