1-minute Summary: Key Concept Brand’s Business
Why is a Brand’s Business Important?
The simplest question, what do you do? But often the hardest to answer well. Find the best definition of our brand’s commercial role and focus within the defined category. Obvious? Try asking around and see if your colleagues agree!
How do you Explore a Brand’s Business?
Consider past Brand Heritage (why originally created), todays Brand Challenge (key barrier to growth) and decide the brands future. Consider the category and competitor drivers. What do we do now and what business do we want to be in?
What Does the Right Answer Look Like?
A simple human (not business) expression of a complex concept. A future-proofed definition of the core business: What we do. And the key business focus: What we are good at.
5-minute Tutorial: Key concept Brand’s Business
Meaning (why are we asking the question):
Here, we explore the past and the present to decide the future, considering the past business heritage and the current business challenges to define the future business role for the brand. Simply put (and avoiding much practical and academic debate), we want to find the best definition of our brand’s commercial role and focus within the defined category.
There are three strategic considerations (or nuances) here, which I have avoided so far for fear of overcomplication. However, I feel that discussing them here will add clarity to this simple sounding, but quite often complex concept.
Firstly, if brands exist in consumers’ heads, we should consider the consumer motivation within the category (the next section) first and foremost. I believe any brand positioning strategy needs to be loyal to the product or service and the business. Hence, we could create any brand positioning – even a perfect one – but if it is not faithful to the business, it will fail. If the business claims ‘full-service’, ‘low cost’, ‘healthy’, ‘family values’ or ‘customer first’, it must be in a commercial position to deliver those things. This is why we focus on gaining insight and defining the Brand’s Business first.
Secondly, as marketers, entrepreneurs, and just good businesspeople, we will be looking for a consumer insight or benefit of our brand to promote. This is only natural, but it is critical to approach the Brand’s Business Core Concept from a commercial point of view. Considering the commercial context for our brand, how might we describe the business the brand is in and its focus. One technique outlined next asks us to consider our focus against competitors. This places the business within the commercial and not consumer context. Here are some fictitious examples of core business focus for illustration.
- If we are a bank, do we seek to give a comprehensive service of products through nationally available stores, or are we supplying essential consumer products online only?
- If we sell pasta, how are we distinct from other pasta brands? Is it fresh or dried? Are we international, local or an importer? Are we a new or heritage brand? Do we specialise in ingredients or focus on food trends?
- If we are a restaurant, compared with the competitive set, how might we define ourselves? Via national style – Ethiopian, Thai, Chinese – or do we push contemporary fusion? Are we family-friendly, quick-service, or high-end dining? Is our focus locally sourced produce, sharing plates, diffident or gregarious service?
- If we sell furniture, are we online only? Do we use recycled materials? Is our business prestige focused, handcrafted, or mass-produced, focused on lower cost?
- If we work in real estate, is our business local, national, or global, independent, or part of a network or franchise? What makes our business distinct from the competition, lower or fixed commission, faster or higher sales, integrated services, or customer service?
Now, let’s consider this last aspect of a common business focus, customer service. In a modern marketing age, with little product differentiation, one common (initial) brand positioning area is around ‘customer first’. A Brand’s Business can focus on customer service, but like consistency, good service is mostly a given. In very few cases, like the Avis of old and FedEx of today, service can be demonstrably different to the competition, and so can be useful to include as a focus unpacked within the next Core Concept.
However, we can’t use this option as a ‘fall back’ or ‘usual suspect’. The core business aspect should describe ‘what we do’. The business focus aspect should explain ‘how we do it’ differently or distinctly from the competitors.
Thirdly, in terms of definition. Within this guide, when I refer to ‘a Brand’s Business’ we are seeking to define the role of that brand commercially and articulate its focus within the competitive category. This is separate and different to articulating the business strategy within the marketplace. This is a brand, not a business strategy model. Business strategy is more concerned with making money than building brands. However, obviously, one way of making money is building a strong brand, so the two strategies do and should overlap. But business strategy should always lead brand strategy. It is impossible or at least inadvisable to try and formulate a brand strategy without a firm business strategy already in place.
We are more concerned with description, definition, and then the focus of the existing business the brand is in – identifying and focusing on what is already there.
In some cases, however, the current role of the brand may be commercially unsatisfactory. It might be spread too thin, it’s focus might be too narrow, it could have become obsolete or less salient. This is one of the reasons we include the ‘Our Challenge’ section within this Core Concept.
Hence, when determining the outcome for this Core Concept, we first need to understand if the current role of the brand is the best. Once this is decided, we can then consider the competition within that category and define our focus to complete our definition.
Process (how to find the answers):
We must first ask ourselves a critical question:
- ‘What is our business focus (for the brand) now, and what do we want it to be in the future?’
An important question! One with the power to transform our brand (and potentially the business). Considering our heritage, is there a mismatch between what the brand was and what it is today? Either way, it is worth consideration. We may decide the evolved state of the brand is justified and use the past to influence, or nudge, the direction of the future. Considering the defined summary of the brand’s heritage, are there other opportunities on the table? Can we take this learning about our brand and apply it to other categories or even markets? Is there potential for any vertical or horizontal expansion opportunity? The opposite is sometimes also true: can we refocus on a core range of products? Having identified the brand’s original focus, it may be that it has lost its way or expanded too far, signalling a need to return to its core.
Considering our key business challenge, the size, scope, and potential impact of the challenge may make the current business less attractive. We may have to expand, contract, or jump into new markets and categories because of the insurmountable nature of our challenges.
However, brands seldom need dramatic change; often a slight shift in focus or reframing can nudge them back on course. Often the products (or at least core products) will remain unchanged, but the brand itself will need to evolve.
This question is vital. We should embrace the chaos that might follow! It will either confirm and define the current focus, or one element will evolve in some way. If this happens, fantastic; spend some time defining the newly developed category (from a business point of view) and the new evolved business focus within that category.
Whatever happens, the question facilitates an exciting debate about what exactly the brand should or should not focus on. With the core business focus initially explored and defined, we can now consider the competition in that category to determine the focus.
- ‘How do the competitive set define their business, and how do they describe their brand’s focus?’
From a strategic point of view, it is obviously a good idea to build a picture of what our competition is doing, not least because this is the market environment and consumer perceptual context in which your brand will ultimately be assessed. It is useful to consider how the other brands in our desired competitive set describe their business. A simple shortcut is through some analysis of competitor websites. In viewing these sites, we can usually determine how they summarise their business and focus. Their definition and approach will be evident in any information they offer about themselves, their history, what they do, and the products or services they offer.
We are not looking for the competition’s brand positioning in this exercise. We are looking at the way they describe the business they are in, and what they are particularly good at. Identify themes, trends, and ideas in the way they talk about their business and business focus.
With the results, we can again make an informed decision. We will have a frame of reference for how the competition describes their brand. We should be led by the process to define our Brand’s Business, but we should do it with the knowledge of how the competitors within our category describe themselves.
Outcome (what the answer looks like):
The process within this Core Concept is driving us towards a simplistic and clear summary definition of our Brand’s Business and focus or speciality. The nature of the exercise will allow the previous questions around heritage, key challenges, desired business, and competitor definition to permeate our answer.
If we were to gather business partners, colleagues, departments, or board members together and ask them ‘What is the core business and focus of our brand?’ The answer would seldom be the same. In fact, the answer is often very different. Getting the right answer is, therefore, tricky. In fact, it is probably the most difficult within this process!
The answer should be concise and clear. We are seeking clarity over cleverness. Define ‘our core business’ and ‘our business focus’ – once we have these elements, we have the pieces to create the Core Concept: The Brand’s Business. Definition of terms is critical here so let’s explore the definitions and some potential answers to illustrate the theory.
Core Business
There is always historical business language to cover different business areas within small or large brands. If you gather together all the products and services that the brand offers, how might we talk about them?
At this early stage in the process, we should say what we see. We don’t want to overcomplicate this answer. While I have seen this Core Concept fundamentally change the focus of brands and their associated business, most of the time, the answer is obvious. But subtleties in definition, at this stage, make a big difference later. For example, I am often asked to run through this process for marketing service agencies. In their continually changing landscape, this is often a Core Concept that causes great debate.
This is a timely point for discussion around the varying importance of each Core Concept. The process is sequential; hence, each Core Concept is important, but for each of the hundreds of brands I have worked with, one concept becomes more important in terms of the final answer (the Brand Story and Brand Essence). If this section provides a breakthrough moment, then it could well be the catalyst for change for the brand. If it is obvious (and you are sure you have been rigorous) then move on – the breakthrough will be within the other Core Concepts.
The definition of the brand’s business within marketing service companies is as complex as it is critical. Twenty years ago, an advertising agency did pretty much everything: client services, creative, production and media planning, and buying. Now, through successive fragmentation, we can pretty much find a specialist for every one of these services, and the services themselves have splintered into specialist areas. Added to this, there has been a revolutionary change with the introduction of digital and social platforms, resulting not just in further fragmentation of services but in muddying the waters of responsibility. When considering agencies, clients often ask me, ‘Where exactly do you go to get this service?’ And further, ‘Where does their role start and stop?’ Hence, for a modern marketing agency, defining their focus and the scope of their services (the Brand’s Business) is fundamental to their and their clients’ understanding of who they are and what they do.
An advertising agency could be full-service (e.g., strategy, creative, digital, design and media), specialist (e.g. brand identity), traditional (focused on client service), this is rare, though I have seen it work, or contemporary (e.g. only working with technology brands or digital based communications). Or – and here we get to the point – as is the modern fashion, ‘customer experience’ agencies. Hence, their Brand’s Business definition is the provision of customer experiences (through all or some of these services). When we consider the overall category, there is always the right definition that gives the brand the freedom to be everything we want it to be.
Business Focus
If the Brand’s Business is the commercial definition of the business, the brand’s focus is the speciality within the desired commercial context. We therefore need to identify the business focus of our brand within our desired category.
Larger, often older brands will have expanded over time to offer a full range. Smaller, often younger brands will be very focused. But there will (or should) be a singular commercial focus.
Another way to think about this question is, what is the brand’s commercial ‘claim to fame?’ Or, what does it do commercially well or better than the competition? In a workshop context, I sometimes also ask the question in reverse, ‘What would this category be missing if you didn’t exist?’ People’s brains work in different ways. It is a constant within the workshop context that you repeat the same questions in different ways – allowing everyone to comprehend and respond.
Reducing a large and iconic or small or new brand to a single commercial focus is not easy. However, be led by the process. It may be obvious, and it may take work. The result will be liberating, or at least satisfying.
For illustration, let’s take some globally recognised brands (brands I have had no direct contact with) and, using information within the public domain, let’s see how they express their core business and business focus.
The following examples are interpreted corporate and/or brand statements from the public domain.
Danone
‘We have become a world leader in four businesses: Essential Dairy and Plant-Based Products, Early Life Nutrition, Medical Nutrition and Waters. Building on a unique health-focused portfolio that allows us to be a key player in the food revolution.’
Here we have a sophisticated example of a global multi-faceted food company, succinctly describing its business and focus. The core business is the ‘Health-focused portfolio’, and the business focus is the … ‘a key player in the food revolution’. This is a commercial, not a customer, benefit. But you can see how a well-defined brand business can give clear direction for a brand overall.
(Danone website. Retrieved June 2020, from: https://www.danone.com/about-danone/at-a-glance/our-businesses)
Google’s business is…
‘…to organize the world’s information and make it universally accessible and useful.’
Unsurprisingly, considering its success, Google has always had an impressive grasp of its brand strategy. Its core business is organising the world’s information, the focus is to make it accessible and useful.
(Google global website. Retrieved June 2020, from: https://www.google.com/search/howsearchworks/mission )
Toyota
‘Toyota will lead the future mobility society, enriching lives around the world with the safest and most responsible ways of moving people.’
Toyota is not in car manufacturing – they are in the business of mobility. Their focus: moving people safely and responsibly. This is an excellent illustration of the increased scope a well-defined brand business can bring.
(Global Toyota website. Retrieved June 2020, from: https://global.toyota/en/company/vision-and-philosophy )
IKEA
‘Our business idea… to offer a wide range of well-designed, functional home furnishing products at prices so low that as many people as possible will be able to afford them.’
The core business of IKEA is a wide range of well-designed functional home furnishings, and its focus is low price and affordability.
(IKEA Global website. Retrieved June 2020, from: https://www.ikea.com/au/en/this-is-ikea/about-us/vision-and-business-idea)
Virgin
‘Virgin is known for challenging the status quo – taking on industry giants and championing people and the planet.’
I’ve always been a big fan of this brand’s business definition, although for many years it was a given and not articulated. Now, as they say, ‘Disruption is in our DNA’. As a brand, this is what Virgin has always done, and I presume this is the premise for expansion, the Brand’s Business is ‘challenging the status quo’, its focus is ‘taking on industry giants and championing the people’.
(Virgin Global website. Retrieved June 2020, from: https://www.virgin.com/virgingroup/content/our-purpose)
I have tried to stay with analysis through publicly available materials to illustrate the method discussed. When we are looking for our own definition of the Brand’s Business, we can easily conduct online research, to some degree, to review the category and competitors. If we are the competition (or even in the same category) to these examples, inspiration and understanding can be found from reviewing them.
Within our process, the actual expression should be a short statement that reflects the two elements outlined. In this section, we are seeking clarity, not differentiation.
The answer is logical and sequential, hence inescapable. We sometimes find some similarity with competitors; this is not unusual and is expected within this section. The expression of the answer is up to us. It is here we can seek differentiation if we find ourselves with the exact same definition as our leading competitor. But we shouldn’t seek to change the essence of our findings: our brand is what it is.
To close, let’s consider our fictitious examples. In our two banking examples the Brand’s Business was: ‘providing access to a range of financial services across all of our customers’ life stages’ and, ‘supplying banking essentials at low cost through all digital platforms’. In other words, what they do and want to focus on.
