Brand as Core Enterprise Value: A Systematic Analysis from Awareness to Premium

As a business term, 'brand' is unavoidable. To achieve high added value, a brand is essential. From its inception, a company faces the challenge of building a brand, and as it grows, it must maintain brand vitality and sustainable development. However, not every enterprise fully understands or executes branding, and there is no single correct answer.

When discussing brands today, we often look to the experiences and practices of global, century-old international brands. Few Chinese local brands are held up as benchmarks. On one hand, the influence of Chinese brands on the international stage is not yet strong enough; on the other hand, how should we truly understand branding? Here are some perspectives:

1. Whose brand is it anyway?

In many companies, the boss believes the brand belongs to them, but in the minds of consumers, it may not be the core driver that truly attracts them. So, 'whose brand is it?' requires enterprises to think from the consumer's perspective. In fact, the brand always belongs to consumers because branding is not just about market share but also about consumer share, which is won by capturing minds, not just shelf space. Enterprises need a deep understanding of their brand, consider its positioning, and find their place in consumers' minds.

2. How important is a brand?

A brand brings brand premium, i.e., added value. As the former chairman of Coca-Cola, Woodruff, famously said: 'If my factory were destroyed by fire, or if a global financial crisis hit, as long as the Coca-Cola brand remains, I would rise again the next day.' Luxury brands like Chanel, Prada, and LV offer products of similar quality to high-quality alternatives, yet their prices are significantly higher. That is the power of a brand; you gradually realize how much added value it brings.

3. Brand competition is not about products but about consumer perception.

It's not about how good the product is, but what consumers perceive it to be. The impression in consumers' minds is as important as the facts. Therefore, consumer perception is reality. Thus, a brand must provide sufficient perceivable consumer benefits, focusing on psychological and emotional value, where rational and emotional perceptions are equally important. Communication strategies can combine rational and emotional appeals: initially use rational appeals to introduce product features and build awareness, then use emotional appeals to resonate and drive purchases.

4. A brand is a lifestyle.

For many consumers, a brand is a symbol, trend, or culture specific to certain contexts. For example, a Harley-Davidson motorcycle can sell for as much as a car because it taps into a consumer group's pursuit of a symbol. Research on Harley-Davidson owners shows that many buy the motorcycle to project a heroic image. Many brands gain popularity by creating trends; branding is about leading a lifestyle. When designing brand promotion activities, incorporating the lifestyle traits of modern urbanites can better align with their tastes and enhance the brand.

5. Brand awareness is not the same as brand reputation; a good brand balances awareness, loyalty, and reputation.

Advertising can build awareness, and event marketing can make a brand famous overnight, but awareness is just the beginning; being known and being liked are different. A simple formula: 'high awareness + low reputation = notorious.' Therefore, enterprises should cherish every aspect of their brand and be mindful of every piece of content they put out, not sacrificing deep brand communication and building for short-term attention. A brand can easily become famous overnight through various platforms, but achieving sustainable development requires long-term effort. Brands must continuously seek new sources of sustainable growth and manage themselves scientifically. When increasing awareness, it's crucial to simultaneously enhance brand loyalty and reputation, not neglecting one for the other.

6. In the new media environment, brand communication should emphasize integration.

Today, brands face a major challenge in shaping their image: the channels and methods of communication have changed dramatically. The rise of digital platforms has rapidly transformed how consumers access information and the paths of brand communication. Audiences' lifestyles have also changed significantly. Due to shifts in time and space, a single communication strategy is no longer sufficient to reach target consumers. Brands need an integrated communication strategy that follows consumer behavior trajectories. Brand communication must not only be visual but also auditory, even olfactory and mobile. Brand touchpoints need to be integrated across television, newspapers, magazines, radio, the internet, mobile internet, experiences, promotions, communities, roadshows, and word-of-mouth marketing, requiring online and offline coordination.

The future trend is a brand-centric world. Many enterprises are increasingly valuing brands, which presents excellent opportunities for growth. Understanding the meaning of a brand is not difficult; the challenge lies in execution—how to uphold the essence and core value of the brand, and how to combine it with your company's unique brand characteristics to plan effective brand promotions.