Good branding, good sales

Good branding, good sales
By Nurul Syuhaida | Posted: 27 June 2011 2239 hrs

SINGAPORE: A strong corporate brand can boost sales and lead to higher revenue growth.

That is according to a recent study which showed that about 80 per cent of companies with a branding campaign achieve consistently higher incomes, compared to firms that don't have a branding strategy.

The study by consulting firm StrategiCom surveyed the branding initiatives of about 100 companies listed on Singapore Exchange (SGX).

Companies that engage holistic branding that include internal communications, relationship management, and market communications have recorded a higher average annual revenue growth rate from financial year 2006 to 2009.

Most companies are still holding back from spending big bucks on branding, but experts at a branding seminar held Monday urged companies to "think big" and stressed on how vital it is for companies to build their brands to capture a bigger market share.

The seminar, 'Create Your Brand Legacy', was organised by The Association of Small and Medium Enterprises (ASME).

Some 200 participants attended the seminar held in conjunction with the Singapore Prestige Brand Award 2011.

A study by StrategiCom showed that about 80 per cent of listed firms had benefited with consistently higher revenues over a three-year period, after undergoing a holistic branding approach.

It also highlighted that the positive impact on branding strategies is not limited only to listed companies but will benefit small and medium enterprises (SMEs) as well.

But industry players said one of the biggest challenges companies face is a consistent brand message.

EpiCentre Holdings Limited executive chairman & CEO Jimmy Fong said: "The challenges involve how to communicate our brand to our employees, our stakeholders, and to the rest of the customers - why they should trust our brand, why they should continue to buy from us again and again".

Experts said good brands are built on a two-way relationship.

Customers engage with brands and vice-versa, so branding needs to be emotionally connecting and interact on a personal level with customers.

Adam Khoo Learning Technologies Group co-founder & executive chairman Adam Khoo said: "Dare to invest in branding.

"I think a lot of people always think that advertisement is only for established, big companies.

"But unless you first think like a big company when you're small, you never become a big company.

"So even if you are 'one man show', think about how you brand yourself in terms of not just your media but as well as the way you interact with your customers".

Almost half, or 49 per cent, of the companies that participated in the study are engaged in all three areas of corporate branding.

These are internal communications, relationship management and market communications.

The most practised area of corporate branding is internal communications with 81per cent of the companies who participated in the study applying the approach.

-CNA/wk

- wong chee tat :)