Monthly Archive: February 2011

Have You Calculated Your Company’s “Brand Value” Lately? Coca-Cola Has.

Steve McKee, president of McKee Wallwork Cleveland, offers some valuable advice to brand managers and business owners in his latest piece for BusinessWeek.

Companies often mismanage their brands by neglect, and doing so harms their top lines, their bottom lines, and their prospects for long-term success. Like the subtle movement of the hands of a clock, brand neglect happens slowly, almost imperceptibly, which makes it even more sinister.

What makes it so nonsensical is that your brand is the ultimate asset—or should be. Your brand, unlike a building, inventory, or furniture, fixtures, and equipment, needs never depreciate. Quite the contrary—brands can increase in value indefinitely as long as they’re well-managed.

McKee neatly captures what our business is all about. It’s not about social media marketing or mobile marketing or even expensive Super Bowl spots, it’s about building long-term value in concert with meeting short term sales objectives.

“Build your brand, grow your business” is our tagline for a reason.

There are brand gurus in the world who do not care about short term sales objectives, but who has time for that type of ivory tower nonsense? The work has to drive purchase intent today and create long-term value for the brand at the same time, every time. No, it’s not easy to achieve. That’s why it’s the work of pros.

Rebranding: Get It Right The Second Time

Seth Newman, president of Action Envelope, a $12 million envelope retailer based in Lindenhurst, New York, paid $400,000 for a new domain name that would better serve his business. He now owns and operates Envelopes.com, and is in the process of migrating from the old site to the new.

The Inc. story about Envelopes.com is focused on search.

Newman believed the Envelopes.com domain name would make his company the definitive destination for envelopes online. “The name Envelopes.com has instant credibility and market leadership,” he says. The only problem was that Envelopes.com wasn’t on Google’s radar.

Of course, when a business relies on traffic from search to drive sales, search marketing is a serious matter. But there’s something else about this story that I find compelling. Here’s a small business leader who is resoundingly pro-brand. In fact, Newman believes in “the brand” so much, he’s willing to fight through the hassles and lost income that come with building out an entirely new site at a new domain.

The article also mentions that Newman spent about $500,000 to develop ActionEnvelope.com (his old site) and make it search-engine friendly. If he does that again for Envelopes.com, he’ll have nearly $1,000,000 invested. So, Newman not only believes in the long term value of the brand, he’s also committed to marketing. I don’t know Newman or his company, but I’d like to believe these factors contribute mightily to his bottom line.