When we think of brands, we think of iconic names and logos. The cursive white script on red of Coca-Cola. The golden arches of McDonald’s. Starbucks coffee.
There’s no question that establishing brand recognition has value. According to The Economist, “Brands account for more than 30% of the stockmarket [sic] value of companies in the S&P 500 index.” When Imperial Tobacco decided to spend $7.1 billion to expand to the US, the lion’s share of that money was spent on purchasing brands recognizable in the US.
But what about small or local businesses? Can they build a brand? How can they compete in getting recognition behind multi-billion-dollar behemoths?
Branding for local businesses is different from branding for national brands
Although local businesses compete with national brands, the mistake many local businesses make is competing with them on their platform. For example, going toe-to-toe with a national brand or big box store on price or selection puts the local business immediately at a disadvantage.
Instead, compete on your turf and strengths. Consumers value local businesses for quality work, personalized service and trustworthiness, among other things. Local business branding should emphasize these areas.
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