3 Agenda Introductions Research: Latest Trends & Developments Insights: Brand and the Family Business Life Cycle Case Study: Generational Life Phases of the Family Business & Brand Opportunities and Options Distill “Take Homes”
4 What Are We Talking About? BRAND The use of a name, term, symbol, or design (or a combination of these) to identify a product or service
5 What Are We Talking About? BRAND IDENTITY Important intangible asset…arguably a primary basis for competitive advantage (Aaker 1991). Represents a set of promises that, for the buyer, implies trust, consistency, and a defined set of expectations (Davis 2000). Refers to the set of associations that link customers with the brand. Such brand associations—attributes, benefits, and attitudes linked to the brand—have the potential to influence customer decision making (Keller 1993).
6 What Are We REALLY Talking About? FAMILY BRAND IDENTITY Resource-based View of the Firm: VRIN A valuable, rare, imperfectly imitable, non-substitutable resource that could vest competitive advantage (Carney 2005; Habbershon and Williams 1999; Habbershon, Williams, and McMillan, 2003) A contributing resource and capability that provides family businesses a potential advantage by highlighting their distinctive ‘familiness’ (Habbershon & Williams, 2003).
7 Our Research Action Research O’Reilly Family (JSBED, 2002; Elgar, 2006) Smith Family (FBR, 2005) Dennis Family (FBR, 2002; FBCJ, 2004) Observations S. C. Johnson (FBN, 2002) Australian Family Businesses Oregon Family Businesses A. B. Jenson & Son Hendersons & Daughter
8 Research Questions that are Relevant How does the promotion of family-based brand identity influence competitive orientation (customer service versus product differentiation) and firm performance in family businesses?
9 Findings and Implications Family businesses benefit by ensuring that they communicate truly unique and relevant family-brand values to their customers. In other words… Introducing family business-centric aspects to brand identity is important Continuous and intentional communication to customers is paramount to effecting performance
10 Family Brand Identity Family Brand Identity is a Valuable Rare Imperfectly Imitable Non-substitutable Resource That highlights distinctive familiness …and that our research empirically establishes contributes positively to firm financial performance
12 Brand and the Family Business Communicating Shared Values Trust Honesty Passion Good old fashioned service Longevity Social conscience Stability A commitment to not compromise but strengthen family values
13 Brand and the Family Business Where does the ‘Family Business Brand’ (FBB) currently sit? What can the FBB do for a family business? Some thoughts about the best way to use it
14 Strengths Trust Honesty Passion Good old fashioned service Longevity Social conscience Stability Weaknesses Old fashioned Staid Boring Conservative Irrelevant Brand and the Family Business What is the status of the generic ‘Family Business Brand’?
15 What can the FBB do for a family business? Branding is now a science Ideally synergistic with the brand of your business Alignment with market values = The value proposition The political environment Social benefits Regional benefits Employment Brand and the Family Business
16 What is the best way to use the FBB? Understand what it is and where it sits Ask yourself and your employees Ask your market Is there alignment? Distill the common elements Does it drive value? Pricing premium Simply a reason to choose your business ahead of others Brand and the Family Business
18 Options Include the family name Exclude the family name Include the family Intentionally include family in marketing Actively engage family members in community May be possible to divide “options” into actions and activities
19 Potential Opportunity Macro approach/benefits Legislators will take notice of family business ‘movement’ if they see their constituent companies branding themselves ‘family business’ Global partners may be attracted to common values of Australian firms that label themselves family businesses
20 “Take Homes” 1. Your ‘familiness’ is a VRIN resource 2. Your Family Brand Identity is values- driven 3. Continuous and intentional communication to your customers is vital if your intention is that your family business is…
21 ‘Built to Last’ Thank You …and let’s continue discussion over lunch