The choice of name clearly demonstrates the family element of the business. It's no accident that many family businesses are named after their founders - Wal-Mart after Sam Walton, Denmark's Bang & Olufsen after Peter Bang and Svend Olufsen and Forbes after B. "Four years after introducing a clear branding strategy for Aars we have attracted better candidates and more relevant investment cases," says Haavik. However, there's no more reason to worry about family members disagreeing than about non-family members disagreeing, and a strong, inspiring back-story positively influences investors' perceptions as well as consumers.'įor Sigurd Haavik from Aars, branding the business as family-owned has had a positive impact on both the business and the bottom-line. Another reason is that, rightly or wrongly, investors may worry about potential disagreements between family members. This is because investors first approach companies that are top-of-mind - and family-owned firms often miss that optimal positioning. It also unites employees and managers across business areas by creating a common sense of belonging to the family.Īll businesses, including family businesses, need to attract investment partners, but unless a company is already prominent, a family-owned firm may have to work harder to be offered the best investment opportunities. Internally it unites the owners, especially the next generation when their assets grow to include more than what’s historically been the core business. In general the family aspect gives most people positive associations. CEO Sigurd Haavik has several reasons for moving in the family-owned direction with their branding: The Møllers have been strongly involved as a family in their business operations for over 80 years, but only recently started to actively communicate the family aspect as part of their branding strategy. Take the Møller family, owners of Aars, one of Norway’s leading automotive importers and retailers. Actively promoting a multi-generational story grounds your brand in the public mind in a positive way. One analysis showed that only one-third of the top 100 family businesses in the world actively highlight their brands as family-owned. While many of the truly successful family-owned businesses consider family branding extremely important, not all of them are using this potent marketing tool. Recognizing and using the value of a family back-story Tell the family story, take it to the bank. Trust equals sales, sales equal profitability. Interestingly, even the appearance of a family connection increases market visibility and consumer trust: witness the completely false "family name" of the Haagen Das ice cream brand. Which brings us to the warm and fuzzy factor: family-owned businesses seem more stable, more customer-friendly, more approachable and more trustworthy. Are the principals brilliant teenagers who may or may not flame out tomorrow, or stable grownups who have worked hard to create something real for future generations? While not all family-owned businesses are de facto moral or reliable, a family-owned business nevertheless engenders a strong sense of trust in consumers. Branding for any business is more than a snappy logo, a marketing budget, excellent product or great customer service - for good or ill there’s always the backstory.
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