Value Hierarchy of Companies
In the dynamic world of marketing, a strategic approach linking brand positioning, product innovation, supply chain, and customer experience can lead to a competitive advantage and business growth. This approach is encapsulated in the brand value chain, a model that traces the creation and delivery of brand value across multiple stages.
The brand value chain is a strategic roadmap for companies, serving as a guide to create, communicate, and deliver value through their brands. Some of the most successful companies in various industries have effectively implemented this strategy, as demonstrated by brands such as Lululemon, Everlane, Coca-Cola, Procter & Gamble (P&G), Ariat, Airbnb, and Fjällräven.
Lululemon, for instance, leverages innovation in its trademarked fabric and partners with influencers true to its yoga-centric brand, tightly linking product development, marketing, and customer engagement to its brand strategy and value chain.
Everlane practices "radical transparency" by showing customers the exact cost behind its ethically produced apparel, building brand trust by aligning its supply chain ethics and communication with its brand values.
Coca-Cola's personalized campaigns like "Share a Coke" create emotional connections that enhance brand equity by merging marketing innovation with consumer engagement.
P&G exemplifies how integrating supply chain leadership across sourcing, manufacturing, and distribution drives business growth and reinforces brand reliability with consumers, ensuring products meet expectations and maintaining market leadership.
Ariat realigned its supply and value chains by implementing automation in warehouses to increase productivity and improve customer delivery, demonstrating how operational improvements directly enhance brand value and customer experience.
Airbnb aligns its dual value proposition to both guests and hosts, linking its brand mission of belonging and authentic local experiences with operational platform improvements, reinforcing its brand promise in multiple markets.
Fjällräven integrates sustainable manufacturing (in-house materials and waxing) and functional design, crafting a brand value chain rooted in quality, durability, and environmental responsibility that appeals to conscious consumers.
These examples illustrate how a strategic approach to the brand value chain can lead to competitive advantage and business growth. By aligning brand positioning, product innovation, supply chain, and customer experience, companies can create strong brand equity and customer loyalty.
In addition to the brand value chain, several other marketing strategies play a crucial role in shaping brand perception and driving growth. These include brand association, sustainable marketing, marketing myopia, guerrilla marketing, meme marketing, multi-level marketing, newsjacking, relationship marketing, sensory marketing, brand identity, remarketing, services marketing, marketing personas, multi-channel marketing, microtargeting, brand equity, brand loyalty, inbound marketing, marketing mix, hunger marketing, 360 marketing, word-of-mouth marketing, neuromarketing, integrated communication, integrated marketing, net promoter score (NPS), push vs. pull marketing, and implementation strategies such as customer insights, integrated marketing communications, brand experience, innovation, and monitoring and measurement.
Understanding and effectively implementing these strategies can help companies shape their brand perception, drive growth, and stay competitive in today's fast-paced market.
- Companies can strengthen their business growth by strategically linking brand positioning, product innovation, supply chain, and customer experience, as illustrated by successful brands like Lululemon, Everlane, Coca-Cola, P&G, Ariat, Airbnb, and Fjällräven.
- The brand value chain serves as a guide for companies, offering a roadmap to create, communicate, and deliver value through their brands effectively.
- Leveraging innovation, such as Lululemon's trademarked fabric and influencer partnerships, can help link product development, marketing, and customer engagement to a brand's strategy and value chain.
- Brands like Everlane build trust with customers by displaying the exact cost behind their ethically produced apparel, aligning their supply chain ethics with brand values for better brand equity and customer loyalty.
- Brands, such as Coca-Cola with "Share a Coke," create emotional connections that enhance brand equity through marketing innovation and consumer engagement.
- By integrating supply chain leadership across sourcing, manufacturing, and distribution, companies like P&G drive business growth and reinforce brand reliability with consumers.
- Automation in warehouses, as demonstrated by Ariat, can enhance brand value and customer experience through operational improvements in the supply chain.
- Aligning a brand's mission and operational platform improvements, like Airbnb's emphasis on local experiences, can reinforce the brand promise in multiple markets and drive growth.
- Brands such as Fjällräven integrate sustainable practices and functional design into their manufacturing processes, creating a brand value chain that appeals to conscious consumers, fostering business growth, and customer loyalty.