Rethinking Brand Strategy and Business Strategy
By Levina Kusumadjaja
I think many people confuse brand strategy and business strategy. It seems like there is this competition to prove which is more important: setting up the most efficient inventory management, or designing the best packaging? But I don't think that's the case. I think they actually work hand-in-hand. It is when these two strategies come together and collaborate that the company might actually reach their goals.
Business strategy: everything a business does to build a profit-oriented system
Brand strategy: everything a business does to build customers’ perception of the business
Here's an illustration that might explain the relationship better. In a basketball game there is this thing called an “assist”. An assist happens when player A passes the ball to player B, and then player B immediately throws the ball into the rim. These two players are both crucial in this moment. The score that they got wasn’t just the effort of player B, player A was also a part of the winning moment. If the two players wanted to compete and focused on getting the glory for themselves instead of getting the ball into the basket, the team won't benefit. To win the game, they have to do whatever it takes to score. And to score, they have to work together.
Basketball: Different players, different roles, one goal.
Business: Different strategies, different functions, one goal.
I think brand strategy and business strategy works the same way. It is like an assist in basketball. It can be player A giving the assist so that player B can score, or it can also be player B giving the assist so that player A can score. But the point is, you need both of them to score. A brand strategy won't work if from the business standpoint, they don’t have the budget to pull off the brand strategy. A business strategy will not be as effective if the customers don't connect with the company’s brand. The value of the business will not be as competitive and as high as it could be without the right perception from the customers. And how can a business connect with the customers? Through brand strategy.
Any business needs a good business infrastructure because it in order to be profitable, they need to know how to run the business effectively and efficiently as a whole. This is why companies model their business differently depending on their capital, resources, capacity, target market, and so forth. But no matter how good a company’s business model is on paper and in practice, it will not yield value to the company if the customers don’t understand the quality of this business. How much the customers are willing to pay for the company’s products and services will depend on how the customers perceive the company’s brand. So, to communicate this quality, a business needs a powerful brand strategy.
A business strategy and a brand strategy both aim to reach customers and grow the business.
A brand strategy and a business strategy must work hand-in-hand to achieve the common goal of the brand and the business. As a brand strategist, you will give your customers more value by considering the two strategies as a synergy. Your client needs a business strategy to ensure the business' profitability and competitiveness in the market, but your client also needs a brand strategy to make sure it can connect to the customers.
It’s like that assist in basketball. Someone has to pass the ball, someone has to receive the pass and shoot the ball into the rim. They work together, not against one another, towards a common goal: to score and win the game. Business strategy and brand strategy. Different roles, different functions, but all to achieve the same goal: to reach customers and grow the business.
Cheers!
Levina
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About the author:
Levina is a writer based in Indonesia. Because of Melinda Livsey, she recognized the power of brand strategy for every creative. She is sharing about her learnings as she goes to help creatives have fun in their growth and journey of building brands. Connect with her on LinkedIn and say hi!