The natural products industry is finally starting to get some respect. The $23 billion industry has entered the mainstream, and now, more than ever, manufacturers, marketers, brand managers and new product developers need to prioritize and harness the power of proper branding and packaging design.

As the natural products industry competes within the mainstream marketplace, it must 'raise the bar' significantly and expect much more of branding and packaging communication. With national listings, natural products marketers must consider in-store presence and merchandising, sales promotion initiatives, advertising, direct mail, trade shows and the Internet as never before. What this means is considering a brand strategy. Why put the time and money into such an endeavor? Building and investing in a brand creates a very real and relevant asset; the brand and its value.

* Consumers connect with a brand and its benefits on both an emotional and rational level. 

* Without a strategy, brands can be threatened by plagiarizing and weakened by the competition.

* Brand strategies offer a clear identity that guides the expansion of the company and its products over time.

* Strategizing helps to develop a hierarchy of sub-brands with an approach that is clear and consistent.

* Brand strategy adds value to your proposition, thereby adding value for your consumer that builds loyalty to your brand.

* Developing a brand strategy goes beyond advertising. It delves into packaging and how it communicates the brand identity and benefits while giving it a personality. Packaging is a core component of brand strategy and communication.

Seventy percent of the purchasing decisions are made at the shelf. Consumers generally know what they want, but sway between two or three of their favorite brands, whether shopping for toothpaste or a nutrition bar. In terms of brand strategy, the job of packaging is to entice the consumer, tilting the odds in favor of your brand, so it will be selected regularly and becomes part of the consumer's repertoire.

Packaging plays an important role in portraying the brand. Communication delivered by the packaging is the key to building a consumer relationship. A brand should clearly convey the '5 P's'. The first is Prominence, or a strong, confident voice and distinctiveness amongst competitors. Second, Propriety, clearly communicating what is inside--what the consumer is buying. Next, Product Attributes, which are a product's unique benefits. Proposition involves communicating the value of the brand, perceived or otherwise. And Personality is the character or emotional cues the brand exudes.

Creating & Executing Brand Identity

Fundamentally, brand identity aspires to what the organization wants the brand to stand for by capturing values and culture. It can be defined by a set of associations. A brand should be created by using a value proposition and the brand position.

In setting a value proposition, a brand/customer relationship is based upon a combination of intrinsic product values and communication-acquired values, which together create added value, consumer appeal and preference. The value proposition is how functional, emotional and self-expressive benefits are communicated. A brand's position is the sum of the brand identity and value proposition that must be effectively communicated to the target consumer, hopefully trumping the competition in doing so.

While the retail price of the brand also relates to the brand position and its benefits, price should not drive the value proposition. Competing on price does not necessarily create long-lasting value in the consumer's mind. Those involved with the brand and its management should be able to articulate the brand identity and care about it personally. Without leadership, a brand will drift aimlessly and appear to stand for nothing in particular.

Creating an organization structure that provides the framework within which the brand can develop and mature in a strategic, relevant and evolutionary path is essential to executing a brand strategy. First, look at setting your brand architecture--the organization of brands in your company's portfolio. By extending product lines, a company can improve its exposure on the shelf and appear more dominant. However, brand extensions should only be used if they reinforce brand identity.

Create a brand system by ensuring consistency in your brands and helping them to work synergistically together. Establishing a brand system is all in the execution; make it a goal to disregard trends and maintain a consistent identity, position and execution over time. Employ this strategy across all the media the brand uses to communicate. A brand manual, derived from a brand strategy, is often a useful tool in communicating and maintaining brand guidelines both internally and externally, such as when you are communicating with design or advertising consultants.

Managing a Brand

Once a brand is created and developed, it has real economic value. Many companies know the dollar value of their brands and treat them as real assets. Often they make the actual brand a line item in budget and financial statements. Any property with large sums of money invested requires good management, maintenance and support to maintain and, hopefully, increase its value. The same is true with a brand.

Track your brand's equity by reviewing the brand's communication over time to see if you are accomplishing your brand's goals. Appoint a manager to be in charge of your brand(s). Empower that person to create the identity and position and coordinate the execution across every segment. Then invest in your brand(s)--even when financial goals aren't being met. Don't let a temporary slump distract you from the long-term goal of building your brand and nurturing consumer loyalty. And keep in mind that specialty branding and packaging design consultants are available to companies hoping to build a brand strategy and optimize their brands' performance.

Ronald de Vlam and Scott Power are associates with Chicago-based Webb Scarlett, a brand and packaging design firm. Contact them via e-mail at [email protected].