The power of your ‘family’ brand

Being a ‘family business’ can be a powerful plus for your brand. But, how do you reap the positives of a family brand and navigate the challenges?

It seems customers find a lot to love about family businesses. A business that is family owned or family run is more trusted than other business, a recent global survey has found.[1] Family businesses are also seen as more resilient and trustworthy.[2]

Family businesses trusted and preferred

To put that in numbers, the most recent Edelman Trust Barometer found that family businesses have a trust score 9 percentage points higher than other enterprises.[3]

A few years back, Edelman’s special report on family business found that 75% of people trust family business over non-family business globally; 54% would rather work for a family business; and 66% are willing to pay more for products or services offered by a family business.[4]

Should you wrap your family into a family ‘brand’?

Brand identity is primarily about an organisation’s reputation – branding is about positioning the business’ identity towards a reputation that the organisation wants to be known for. [5]

“Family businesses have a heritage – their own narrative – which is unique to their brand and a potential point of difference, enabling them to connect with people at an emotional level,” says Lowen Partridge, founder of PearTree Brand Strategy.

“It’s also an opportunity to build their values into their brand as a point of difference.”[6]

Claudia Binz Astrachan of the Lucerne University of Applied Sciences and Arts and a global authority on branding and family business, says that a having a distinct family-business brand may work very well for some family enterprises, but not for others.

“If the notion of family adds no value to your stakeholders, or if your family shies away from the heightened scrutiny that comes with a family-based brand identity, branding yourself as family-owned can come at a cost,” she advises.[7]

But that doesn’t mean it’s not an idea worth exploring.

What’s the benefit to your brand of being a family business?

A family-owned business engenders a strong sense of trust among consumers.[8]

Using the family name in branding can help gain a higher profile among consumers. Because family businesses have heritage – their own narrative – that is unique to their brand, this can be a point of difference and may allow the brand to connect with consumers on an emotional level.[9]

For example, 160 years after its founding, the difference with Coopers, is you can still meet a Cooper at Coopers Brewery, hence the messaging, ’Hand Made by the Cooper Family’. Glenn Cooper AM, Chairman of Coopers Brewery, said at a seminar on family business branding that ongoing family involvement in the business is critical for their brand identity.[10]

As a bonus, consumers view family businesses as being there for the long term. There’s also a perception that they focus on quality and customer relationships more than other businesses. That’s why family businesses may appear more consumer friendly and more approachable for customers.

That sense of stability may also make a family firm a more attractive workplace for employees.

What’s the benefit to your family of having a family business brand?

Brand represents your organisation as a whole, and how the world perceives it.[11] Therefore, the family business brand should reflect what is important to the family. It offers an opportunity to refine the family’s ‘mission statement’ and articulate goals beyond making a profit. It can even define a common purpose.

That mission statement also sets guard rails on what behaviour is acceptable in the business.

When the family brand is truly based on the family’s core values, it can help develop a legacy that perpetuates the family identity and purpose. It means the family can become known for something beyond the business.

Linfox Logistics began in Melbourne in 1956, with Lindsay Fox and one truck in Melbourne. Today it services nine countries across Asia Pacific. But that’s not all they do. The company leverages its services to help when natural disaster strikes, is a member of the Diversity Council of Australia, and runs the Fox Family Foundation, which contributes to different causes including supporting Indigenous young people, literacy and education efforts in disadvantaged communities, diversity in the workplace, and road safety.[12]

A strong brand can also foster family members’ identification with the business, so it stays cohesive even when the ownership group grows.

Knowing how the family and business define themselves can also assist with future plans. It can provide a ‘north star’ for business development and a moral framework for the next generation.

In fact, solid branding in family businesses was recently found to be linked to superior economic performance, with a recent study finding that it ‘can help owners, managers and staff to have a common view and purpose, with the result that everyone engages in creating and delivering brand value.[13]

Some things to consider when branding as a family business

Having the family name closely identified with the business increases public scrutiny of family members. That means they must consistently embody the ‘family brand’ and any misconduct among family members can threaten the reputation of the business.

If family members behave badly, there will need to be a public affairs strategy in place to protect the business from any reputational blowback. It can be the case that a well-known family name is a double-edged sword.

Finally, while the idea of building a legacy can appeal to some family members, it’s not certain that everyone will feel that way. Family members may have their own goals beyond the business.

Entrepreneur and author David Werdiger says that children must be allowed to go into business by choice, not obligation, and earn their place on merit, not name.[14]

Kennards Hire CEO Angus Kennard reflects:

“Dad never pressured any of us to go into business and I won’t be pressuring my kids. Our family value is you have to live a fulfilling life for yourself. When you are fulfilling your dreams, you do a better job. There are 14 in the next generation; hopefully we will get a couple interested.”[15]

Unlocking the benefits of family business branding

Before trying to rebrand your family business, it’s important to consider whether this branding is appropriate for your business. Ask yourself:

• Is the concept of family important to my customers?

• Is my family prepared to face a higher level of scrutiny from my community and customers?

• Do my family reflect the values of my business?

Remember that simply meeting these criteria isn’t enough to inspire that greater trust in your customers – you need to tell your family’s story and demonstrate your commitment to your business and community not only through your work but in your family values, too.

These behaviours need to be instilled in fellow family members and extended to employees and customers alike.

When done correctly, customers should come to share in your vision for the business and trust that your products and services come from an earnest desire to help them, not just to turn a quick profit.

A qualified adviser who specialises in multi-generational family business can assist your family through succession, structuring, wealth transfer, and so on.

Disclaimer

The views expressed in this content are those of the author, who is also responsible for any errors and omissions. Family Business Australia and New Zealand provides this article for your information only. The content of the article should not be taken as advice. If you wish to explore this topic, please consult an advisor who you consider to have the expertise to provide specific advice in relation to your family business.