What is brand strategy and who needs it?

Brand strategy defines what a brand stands for, who it is relevant to, and how it differentiates from competitors. Every business has a brand — the question is whether it was intentionally built or accidentally formed. SMEs that define their positioning clearly before investing in design save money and attract better-fit clients.

When do I need a brand strategy consultant vs. a branding agency?

You need a consultant for the strategic foundation: positioning, target audience definition, differentiation, and messaging architecture. The agency then executes the visual and communicative identity based on that brief. Hiring an agency without a strategic foundation first means paying twice — once for the design, once for the correction.

What does brand positioning mean in practice?

Positioning is the strategic decision about what meaning a brand should occupy in the minds of its target audience. In practice it answers three questions: For which specific problem are we the best solution? For which specific group? And what do we do better or differently than everyone else solving the same problem?

When is the right time to work on brand strategy?

Brand strategy matters most at three stages: at founding or relaunch (to avoid wasting marketing budget on the wrong audience), during growth and scaling (when the brand needs to communicate more consistently than the founding team can manage alone), and during repositioning (when the market shifts, the offer evolves, or differentiation has been lost).

Brand Strategy Consulting for SMEs

Q: What does the Red Dot Award have to do with brand strategy?

Simon Förstemann has worked with Red Dot Award-winning companies throughout his career. The award itself is not a marketing tool — but the discipline behind award-winning design is a lesson in brand thinking: consistency, the courage to reduce, and prioritizing the user's perspective over self-promotion. Strong brands have internalized this not as aesthetic preference but as strategic discipline.

Key Takeaways

— Brand strategy is the foundation that defines what your business stands for, who it serves, and why someone chooses you over a competitor — it comes before any logo, color, or website.
— In 7 out of 10 SME engagements, that foundation is missing or never written down — which makes design, website, and sales message pull in different directions.
— A consultant builds the strategy (positioning, audience, differentiation, messaging); the agency executes the visuals. Hiring the agency first means paying twice — once for the design, once for the correction.
— The businesses achieving +74% revenue growth over 16 months are not the ones with the best design — they are the ones with the clearest positioning. Design amplifies direction; it cannot replace it.

What brand strategy actually is

Brand strategy is the foundation that determines what your business stands for, who it serves, and why someone should choose you over a competitor. In 7 out of 10 SME engagements, Simon Förstemann finds that this foundation is either missing entirely or has never been written down — which means the design, the website, and the sales message are all pulling in different directions.

Brand strategy is frequently confused with branding: logo, colors, typography, imagery. That is the visual identity — it matters, but it is not the strategy. Brand strategy comes first.

Brand strategy answers three foundational questions: What does the brand stand for? (position and meaning), Who is it relevant to? (target audience and relevance), Why should someone choose this brand? (differentiation and promise). Only when those questions are answered can a design agency develop a visual identity that does not just look good but actually works.

Positioning: the foundation of every brand strategy

Positioning is the strategic decision about what meaning a brand should occupy in the minds of its target audience. That sounds abstract — it is not. It is the most concrete decision a business can make, and the one that most small businesses and SMEs avoid making explicitly.

A clear positioning answers: For which specific problem are we the best solution? For which specific group? What do we do better or differently than everyone else solving the same problem?

Positioning test Ask your best client why they chose you over a competitor. If the answer is "price" or "you were available" — you do not have clear positioning. A strong brand generates a different kind of answer: "Because you are the only ones who..." or "Because with you I always..." That is what brand strategy consulting builds toward.

Red Dot Award: what design recognition reveals about brands

Throughout his career, Simon Förstemann has worked with companies that have received the Red Dot Award — one of the most respected design prizes in the world. The award itself is not a marketing instrument. But the discipline behind award-winning design is a lesson in brand thinking: consistency, the courage to reduce, and the discipline of prioritizing the user's perspective over self-promotion.

Companies with strong brands have internalized this thinking — not as aesthetic preference, but as strategic discipline. They know what to leave out. That clarity is the foundation of every effective brand strategy.

Quotable Strong brands know what to leave out. Every element that dilutes your positioning costs you more than it adds — in attention, in clarity, and eventually in revenue.

Consultant vs. agency: who does what

In practice, the division of labor between brand strategy consultants and branding agencies is often unclear — which leads to costly duplication of work and strategically inconsistent results.

The consultant builds the foundation

Positioning analysis and competitive comparison
Target audience definition and customer insights
Brand values and brand personality
Messaging architecture and tone of voice
Brand strategy document as the brief for the agency

The agency executes

Visual identity system (logo, colors, typography)
Brand guidelines and application examples
Website design and communication materials
Campaign design based on the defined strategy

Common mistake Many SMEs commission a branding agency directly — without a strategic foundation in place. The agency delivers good design that carries the wrong message or speaks to the wrong audience. That costs twice: once for the design, once for the correction. Simon Förstemann has seen this pattern in small businesses and mid-market companies alike, across the Lake Constance region and beyond.

When is the right time for brand strategy consulting?

Brand strategy is not only relevant for established companies. It is especially important at three stages:

Founding or relaunch: A clear positioning from the start means no marketing budget wasted on the wrong audience
Growth and scaling phase: As the business grows, the brand needs to communicate more consistently than the founding team can manage on their own
Repositioning: When the market shifts, the offer evolves, or the differentiation that once existed has been lost

From practice Simon Förstemann, growth strategist with 14 years of experience and 6 successful ventures, consistently finds that the businesses achieving +74% revenue growth over 16 months are not the ones with the most sophisticated design — they are the ones with the clearest positioning. Design amplifies direction. It cannot replace it.

Free intro call

Sharpen your brand positioning

In the intro call we analyse your current positioning and identify where the biggest opportunities for clarity lie. No aesthetics discussion — real strategy work, directly with Simon Förstemann.

Book a time →

30 minutes · free · no obligation · directly with Simon

About the author

Simon Förstemann

Growth strategist & marketing advisor with 14 years of experience. 6 ventures founded, 3 exits, Red Dot Award and German Design Award winner. Works 1:1 with decision-makers — no agency, no workshops that lead nowhere.

LinkedIn →