A growing body of research shows that stakeholders in nearly every corner of the world, and in particular customers, feel more confident about buying from a family owned company, as compared to a publicly owned, non-family firm. In order to differentiate themselves from non-family businesses and help bolster their overall brand, a host of large and small family business like BIRLA, TATA and BAJAJ etc. have been promoting their family brand identity.
Branding the company as a family business can not only build family cohesion but it also helps to enhance customer loyalty. Research shows that consumers believe family companies make products they can trust and are more committed to their communities. It’s this cohesion of the family unit and its relationships with customers, partners, and employees that builds a remarkable brand. The family isn’t simply building a business to sell. They are building a business to grow through the generations.
As per a research by E&Y, 76% owners report that they refer to themselves as a family business in their advertising, websites, social media, press releases and other promotional materials. But it’s not simply family pride that influences this strategy. Survey respondents said the top three reasons they use family business branding are:
- 68% say their family strongly identifies with the company — it is part of who they are.
- 64% say it helps them differentiate themselves from their competitors.
- 64% say it improves the reputation of the company with customers.
As Professor Joe Astrachan of Kennesaw State University rightly remarks,
“Vibrant family businesses around the world know the limitless value of connecting their families to their stakeholders in messaging and all elements of image. It’s even better for business success and family health when the family gets engaged in shaping the message and delivering it personally.”
Importance of a Good Logo
Logos are a critical aspect of business marketing. As the company's major graphical representation, a logo anchors a company's brand and becomes the single most visible manifestation of the company within the target market. For this reason, a well-designed logo is an essential part of any company's overall marketing strategy.
From Nike's "swoosh" symbol to Starbucks' twin-tailed mermaid or siren, the world's largest companies take great care of their logos. For most people the logos of such firms immediately connect our minds to the business in question, without the need to see its name. This type of instant recognition is the Holy Grail for a business.
As per Robert Jones, professor of branding at the University of East Anglia, a good logo will successfully express a company's values. He says: "Your logo is how people recognise you, and it helps express how you're different from your rivals - warmer, greener, stronger, and so on.”
But at the same time, people assess a brand just not on the strength of its logo, but on the quality of their product or service. A logo won't allow a company to build a respected brand on its own.