Our Brands as Profit Generators

I was visiting a funeral house to express my sympathy and condolences to the family of one ex-colleague of a company that we both had worked before. In a discussion with a handful of ex-colleagues of the same company, among several topics we talked about the importance of branding even for a funeral services business.

Many companies these days still too focus on tangible assets rather than capitalizing on intangible assets such as their brands, network of customers, reputation and human capital.

Branding indeed enhances shareholder value as it contributes to the top and bottom line of the company. Google for instance is estimated worth US$114 billion. Apple is worth US$83 billion. Coca-Cola is another example with an estimated US$68 billion worth. A multinational where I spent slightly more than 8 years in the mid 1990s was also one that really understood the importance of branding and formulate it in its business growth strategy.

Brands should no longer be considered as just names in advertising campaigns or on the shelves in the stores. Branding is not only about fancy ideas or giving names to differentiate our products with those similar products marketed by other companies. Branding is activities that must be practiced by all functions in the company. We sure all agree that customer is the most critical component as their choices will determine the success or failure of the brand, the company. It is not only the marketing team but everyone in the company must be properly aligned with the branding messages and values. Employees in all functions must be well-informed about the significance of branding and how the right branding would affect functions in the company. Employees must have the understanding of their strategic contribution through the participation in various branding activities.

It is therefore very important that a brand or brands are brought to life within the company as employees are the ambasadors of the brands to the outside world, the customers. Branding activities should no longer be considered as the responsibilities of the marketing function. The overall strategy of the company must be aligned with the branding strategies so the Chief Executive and the senior management team must indeed take lead in the development of the brand strategy and managing its implementation.