The symbiosis of brand and business holds the key to success. The brand inspires, the business executes—a dance of visions and actions. This reciprocal relationship enables both to continuously evolve and adapt to the changing needs of customers, fostering sustainable competitiveness.
Harmony and dynamics between brand and company
In the dynamic world of marketing, companies face a crucial question: Who leads whom? Does the brand shape the company and determine its strategies, or does the company shape the brand and give it direction?
To illustrate this relationship, we can imagine a vehicle. In this scenario, the brand could function as the steering wheel, guiding the company. A strong brand with clearly defined values and a compelling vision can inspire a company to develop innovative products and align with customer needs. An example of this is Apple, whose brand identity includes values like innovation and user-friendliness, which drive the company to constantly develop new technologies and designs that reflect these values.
On the other hand, the company can also be seen as the driver steering the vehicle. In this case, the company controls the strategic decisions that shape the brand. Coca-Cola is a good example, as the company actively influences the perception of its brand through targeted marketing strategies and product innovations. Here, we see how the company directs the brand into new markets and adapts it to current trends to stay relevant.
In this article, we will further explore the complex and dynamic relationship between brand and company, analyze the various influencing factors, and show how a harmonious interaction between both can lead to long-term success. Let’s discover how you can harness this dynamic to align your brand and company optimally.
The Brand as a Strategic Foundation
The brand brings a values-based perspective to corporate strategy. This means that decisions must be made in alignment with the brand’s values and identity. For example, at a company like Tesla, the strategic direction is strongly influenced by the brand and the associated values (such as innovation).
The performance standard and development of the company are shaped by the brand, which sets clear standards for the quality and value of the products and services offered. In this way, the brand also shapes customer expectations and the company’s market positioning.
A brand provides guidelines for brand-consistent decisions in corporate management and ensures that the brand’s identity and values remain consistent. This not only affects marketing decisions but also product development, customer service, and corporate communication.
The Company as the Brand's Performer
The company fulfills the brand’s promises by delivering concrete performance. In this role, the company steers the brand by providing the day-to-day services that support the brand. These services include products, services, and the experiences associated with them, which shape and strengthen the brand's core. The company’s operational actions are crucial in meeting the expectations set by the brand.
The company’s expertise and innovation are continuously developed. For instance, Apple uses its technological expertise to strengthen the brand through innovative products.
By maintaining consistent quality and fulfilling the brand promise, the company continuously adds substance to the brand and reinforces its credibility in the market. A brand name gains significance through the long-term fulfillment of the promises associated with it.
Mutual Influence
In practice, the relationship between brand and company is closely intertwined. The two levels—strategic brand management and operational company performance—mutually influence each other.
Brand management sets long-term guidelines and directions that the company should follow. This strategic leadership affects the company’s operations in all areas, from product development to sales to customer service.
Corporate management is also responsible for implementing these guidelines operationally, keeping the brand alive, and further developing it. It interprets the brand’s values and goals into concrete actions and ensures that these align with the brand identity.
Brand-consistent decisions and the quality of the company’s performance, in turn, impact the brand by strengthening or weakening its identity and market value. The way a company embodies its brand through its actions significantly influences the brand’s perception and market position.
Conclusion
Neither the brand nor the company dominates this relationship; rather, there is mutual dependency and continuous exchange. The brand provides strategic direction by defining values and identity, guiding the company. In turn, the company brings the brand to life through its performance and operational decisions. Only when both areas work closely together can a strong brand identity be built and maintained.
