I often get the response from new clients that having a brand isn’t really necessary. Just come up with a good name for the company, go out and buy a logo for $10 (yes, you can do that), and start marketing.
“Why do I need to spend money on Branding ?” is the retort I hear when explaining the need for branding and its link to the mission and success of the business.
To prove my point I need go no farther than APPLE! Once a broken company on the verge of bankruptcy Apple was the first company in the history of the world to reach a $1 trillion valuation.
So, what did branding have to do with Apple’s rise and record-setting performance – EVERYTHING!
Steve Jobs, on his return as CEO, wrapped Apple in a very simple branding discipline – ‘focus on simplicity and technology. Breaking from the personal computer Apple ventured into new realms. Launching the iPod in 2001, the iPhone in 2007, the iPad in 2010, the Apple Watch in 2015, and introducing services like Apple Music and Apple Care.
Apple stayed committed to its brand which is currently the most highly valued in the world. Their products have and do command a premium price, ie. ‘brand equity’. Apple through effective branding turned consumers’ needs into wants! Charging more for the same or similar products vs. their competitors.
$1 Trillion Valuation
To put Apple’s worth (valuation) at over $1T in perspective here are some comparisons:
- At a $1 trillion valuation, Apple just falls short of the combined value of the four largest U.S. banks (BofA, Citi, Chase, Wells) at $1.17 T.
- Apple’s value is greater than the combined valuation of the top 24 automakers in the world at $964B. Therefore, Apple is more valuable than GM, Benz, Toyota, Ford, VW, and 19 others altogether.
- Apple is worth more than the entire American media industry. Including all major news publishers, TV channels, and media companies.
Is branding important? It’s everything. It’s the company – they are one and the same. Every business needs to build an iconic brand. Today, all products/services can be copied, it is only your brand that can not be copied.
Branding is just one part of a company’s marketing. Competition is fierce and you need all the help you can get!