Landor: Tap branding as the key to corporate transformation

In the ever-evolving business world, the role of branding is becoming increasingly important in determining a company's value. 

Lulu Raghavan, APAC president and managing director of WPP's branding consulting firm Landor in Singapore and India, explained that branding has a very significant value, not only as a visual identity but also as a financial asset recorded in the company's financial statements.

In an exclusive interview, Raghavan said that in many countries, brands are even counted as one of the assets that have financial value on a company's balance sheet, just like land or intellectual property.

“Brand is one of the most important assets, which can reach around 33% of the total value of a company,” she told  Marketeers in an exclusive interview. She emphasized the importance of taking the brand seriously, both from an internal and external perspective.

Raghavan cited the example of the transformation undertaken by Microsoft CEO Satya Nadella as he led the company to shift to cloud services in 2014.

In addition to focusing on business strategy, Nadella also reinforced the brand's purpose, which reads, "to help every individual and organization achieve their full potential."

This strategy not only changed the public perception of Microsoft but also built a more inclusive corporate culture, emphasizing empathy and collaboration.

According to Raghavan, brand transformation is not just about changing a logo or an advertising campaign.

"Many people think that a brand is just about a logo or an advertisement, but it's actually deeper than that. A brand is about how we want to be perceived by the public and consumers," she added.

In the transformation process, it is important for companies to ensure that all internal stakeholders understand the purpose of the change before introducing it to the public.

“Transformation has to start from the inside, before going outside,” said Raghavan, who calls it an inside-out approach.

One of the biggest challenges in brand transformation is getting buy-in from all stakeholders, from the CEO to the management team.

“Many transformation projects fail because they are driven by only one party without agreement from the rest of the management team,” she explained.

In addition, overcoming resistance to change is also key to success in brand transformation, where companies must convince internal teams to look far ahead.

Raghavan also highlighted global trends in branding strategy , including the importance of brands having a meaningful purpose and impacting consumers’ lives.

She cited the example of Patagonia, an outdoor clothing brand that focuses its mission on environmental sustainability. “Today’s consumers are looking for brands that have more value than just a product, such as how the brand has a positive impact on society or the environment,” she said.

In addition to having a strong purpose, personalisation and an omnichannel approach are also important trends in modern branding .

Raghavan said that brands that are able to offer personalised experiences, such as Netflix which tailors recommendations based on user preferences, will be more successful in creating closer relationships with consumers.

Likewise, the integration of technology into conventional products, such as what Chanel did by adding chargers to their bags, shows how important a digital-first approach is in today's branding strategy.

Raghavan believes that education about branding has a huge impact on a company's development in the real world.

As a teacher at various business schools, he often sees his former students who are now leaders in various companies, still applying the branding concepts they learned in class.

“This education provides a mindset shift, and when they enter the organization, they become evangelists and pioneers who drive the important values of a brand,” she said.

Through the insights shared by Raghavan, it is clear that a brand is not just a logo or a product offered to consumers, but also reflects the values, goals, and aspirations of a company. In the digital era with fierce global competition, a strong branding strategy can be the key for a company to grow, thrive, and stay relevant in the eyes of consumers.

This article was first published in Bahasa Indonesia in Marketeers magazine.