Unbranding: Marketing’s New Strategy

Hot off the press: Brandless, a startup that is considering themselves the “Procter & Gamble for millennials,” has raised $50 million throughout three rounds of funding. The concept is basic but perhaps that’s the key. In hopes of eliminating a “brand tax” and selling products at a uniform and cost-effective price, Brandless sets out to take everyday items and sell them at an average 40% less compared to well-known consumer goods.
Their business model highlights online sales, which helps eliminate additional costs throughout the distribution and sales process. They also seek to focus on the differentiating factors that now contribute to the sales of a product: organic, fair trade, non-GMO. Their strategy evolves around the concept that when costs are similar, consumers are likely to put their dollars behind a brand that contributes to a core value or mission statement.
But is creating an unbranded company a branding strategy? Forbes featured a fantastic article back in 2011 titled “What is a Brand, Anyway?” Although the term was minimal in scope when it first originated, branding has evolved to encompass what comes to mind when someone first hears your company’s name. It all comes down to the value of perception. For example, try this exercise. Compare what you say your company does with what someone’s perception is about your company. If these do not align, that means your messaging needs to be re-targeted.
Millennial consumers are getting tired of the collection of famous brands that have been around for ages. Companies are listening and trying innovative approaches. Take Target for example. Their stock price plummeted from its 52-week high and sales have dropped 5% in the past year. In hopes of rejuvenating their brand, Target is launching four new brands starting this Fall which include A New Day and Goodfellow & Co. According to Elizabeth Holmes, a reporter at the Wall Street Journal, Target is hoping to “make an emotional connection with shoppers — something Merona (a brand that is included in Target’s current lineup) never was able to do.”
In pulling away from the traditional concept of branding, Brandless and Target are they themselves starting a new trend in marketing strategy. By moving away from the popular names that many consumers were once drawn to, companies are evolving by focusing on the human connection of simplicity and tying in to the emotional experience of their followers.


