Companies Packed With Energy Are The Winners

In the 1980s much was said about hard values such as quality. Nowadays it is soft values that must be associated with a brand. Innovative, unique, professional and engaged are examples of values that most people have probably encountered.
“In future it will be all about energy and community,” believes Johan Anselmsson, Associate Professor and brand researcher at the School of Economics and Management at Lund University.

“Every brand must find its own place, it’s difficult to generalise. But there are a few new values that everyone’s talking about. Exuding energy and a forward-thinking approach are usually synonymous with being a very successful, fast-growing company today.”
Typical examples include Google, and in the past Apple as well.
“Creating a sense of community with the customer is something that is starting to become increasingly evident, with examples such as Mini Cooper and Nike.”

At the same time, the trend is towards fewer and bigger brands with more clearly defined market positions.
Johan Anselmsson also believes that in every sector there is room for two or three companies to operate in the niche of the environment and social responsibility. But even those companies that do not position themselves in the niche of sustainability still have to deal with those issues, even if the environment and social responsibility are well down the list of factors that drive a purchase.
“Companies work with these issues because they’re terrified of being pointed out as villains. So the environment and social responsibility become a hygiene factor for the company, even if this is not the case for the brand.”

Don’t stand out

While there is a trend in terms of which values a brand should embody, there are many companies saying that their brand must stand out from the crowd and represent a value that none of its competitors have. But that’s not necessarily a good strategy, believes Johan Anselmsson.
“Many companies spend incredible amounts of money in their ambition to differentiate themselves. But I wonder – do you have to stand out?” He believes that a company’s market position must guide the brand’s direction.There are often about 20 competitors in each category of industry. Three are really big, a handful are medium-sized and 15 are very small, niche companies.
“To determine the direction of their brand, people need to give some thought to which of these strategic positions they have and which they want to have in the market. This is something that all Economics students learn, but it’s soon forgotten,” says Johan Anselmsson.

Market position is the key

The companies that are market leaders need to defend their positions, but shouldn’t stand out too much in their marketing – this can have the effect that the company loses its relevance, as the customer doesn’t understand what the company is doing, one consequence of which may be that the public at large no longer want to buy from the company. But things are a little different for those companies that are a touch smaller.
“Numbers three, four and five can be a little bit different, but they still shouldn’t push themselves too far. The other small companies can stand out properly and be very strongly niched, for example focusing on the lowest price, highest quality or most environmentally aware.”
Depending on the company’s market position, it’s a question of striking a balance between being similar to their competitors and differentiating themselves from them.
“The biggest one doesn’t need to be best at anything, it’s enough for people to be aware that the company is there and that it’s working. Most market leaders are usually strong in many areas, but they’re not best at anything. For example, a major bank doesn’t need to offer the best interest rates, while a small bank has to stand out and maybe offer low lending rates or be located close to the customer,” says Johan Anselmsson.