Industry Insights

How can local low-cost brands use digital to achieve global impact

Posted by Sam Zalcman on Aug 1, 2014 6:00:00 AM

Competing on price alone leads to product commoditization and does not allow the building of a brand. Successful branding is always based on what I call a “Power Offer”, composed of a strong core product and of additional value elements, the “+++”. In a competitive environment, as in the airline industry, even low cost brands need to have the strong core product and the “+++”, and this is certainly the case of Southwest Airlines or Virgin Atlantic. 

When starting on the branding route, one has to place the initial efforts on the development of a strong core product and some “+++” to obtain a perceived competitive advantage in a targeted consumer segment. This has to be built progressively at a local, regional and national level before having global ambitions. Global expansion on a weak national brand is the sure avenue to dispersion and failure. The exception to this rule is the direct acquisition of a strong global brand and this can certainly accelerate global expansion while reducing its risks.

A digital strategy can certainly build an existing brand’s image, but only if the brand already has strong qualities. Indeed, a strong brand with a deficient digital strategy is more likely to perform better than a deficient brand with a strong digital strategy. The priority should thus be first to build a strong brand, and then to develop it further through a digital strategy. And, as I mentioned earlier, a successful digital strategy should be dynamic, developed with the help of specialized experts, and supported by an internal digital culture.

More Insights

4 Examples of Successful Agile Companies

Before we explore some of the most successful Agile companies,...

Learn More

How to Lead and Manage Diverse Teams

It has been said countless times that “diverse teams perform...

Learn More

How to Improve Employee Development Within Your Business

Investing in the development of employees should be one of the...

Learn More

What is Customer Centricity and how to implement it in your business

Embracing a customer-centric business model in 2021 is...

Learn More

How Simulators Have Changed the World

As a fundamental tool used within our experiential learning...

Learn More