Why investing in protecting your brand is equally, if not more important, than investing in the brand itself
If you hear “Red Bull”, “Apple”, “Netflix” or “Qantas”, odds are you have an immediate reaction and you may not have even used the product! Why? All these companies invest heavily in their brand and allow it to transcend their products or services and become a broader representation of their business, their vision and most importantly you, their customer.
Companies that invest in brand equity realise three key things:
a strong and unique brand identifies your business and vision (allowing you to stand apart from your competitors);
consistent branding communicates integrity and builds your reputation in the market; and
a reliable brand attracts high-quality customers.
All these things lead to growth and success of your business.
Creating a distinctive brand can set you apart from your competitors and become one of your most valuable assets. Done well, a brand, slogan, colour or image is more than just your company name in a fun font or distinctive colour – it creates an identity of your business in the market and proactively communicates your company’s vision. Plus a strong brand will build the trust and credibility of your business and ultimately influence stakeholder behaviour.
The value of a strong brand and building a trusted reputation in the market is critical when it comes to attracting investors, raising capital and building customer loyalty. For investors, who are typically looking for a value proposition and a return on their investment, a strong reputation in market and trusted brand is a key selling point. Moreover, consistent branding and business narrative builds customer trust and loyalty. When customers recognise your brand as one that is trusted in the market they will build a connection with your business which inevitably leads to customer loyalty and repeat purchases. This leads to business growth (and proving future growth potential) that is imperative when seeking investment.
The bottom line is: invest in your brand, so your customers and investors invest in you.
But before you start spending capital investing in and building your brand, it’s critical that you protect it. This is often an important first step that is forgotten, and yet, it is equally as important as building the brand itself. Afterall, why bother building a stellar brand and reputation for it to be at risk?
How to protect your brand
One of the most effective (and affordable) forms of brand protection is trade mark registration.
A trade mark is generally made up of a distinctive word, phrase, logo, shape or picture (or a combination of these), but it can also include a letter, number, sound, smell, movement (i.e., think of the Toyota jump) or an aspect of packaging (for example, a unique neck on a bottle of a beverage).
A trade mark is a way for you to distinguish your business and vision in the market (and prevent competitors from using that same branding or mark). Once registered, a trade mark provides you with an exclusive right to use it in respect of the goods and services the trade mark covers. Another benefit is your ability to use a Ⓡ (registered trade mark) symbol next to your brand which can act as a deterrent for competitors and signal that any infringement on your intellectual property rights in respect of your brand may have legal consequences.
The risks of not protecting your brand
If you invest in your brand, but don’t invest in protecting it, odds are someone (probably a competitor) will take advantage which may result in:
damage to your business’ reputation (by competitors using features of your brand to sell similar, often of lower quality, products or services);
dilution of your brand equity (where customers are misled into thinking a competitor’s product or service is yours, and experiencing poor or lower quality service);
loss of market share (by competitors using your brand to attract customers, who may otherwise have been your customer); and
lowering your ability to attract investors (investors want to have confidence that you own all the intellectual property of your business, and your position in the market is strong and growing, and not in threat of decreasing).
Key takeaways
One of the best (and easiest) things you can do to protect your brand is to register your trade mark. Tiger & Bear Partners have skilled intellectual property lawyers who can advise you across a full range of services, including applying for a trade mark to protect your brand. We’d love to talk to you about the practical steps to create (and protect) your brand equity. Get in touch today!