Can the 70 20 10 rule be used in branding?

The 70 20 10 rule is a versatile framework that can indeed be applied to branding. This model, often used in learning and development, can help brands allocate resources effectively to ensure a balanced approach to brand growth and innovation. Here’s how the 70 20 10 rule can be adapted for branding strategies.

What is the 70 20 10 Rule in Branding?

The 70 20 10 rule in branding suggests that a brand should allocate its resources as follows:

• 70% on core brand activities
• 20% on innovative projects related to the core
• 10% on high-risk, experimental initiatives

This strategic allocation helps maintain brand consistency while fostering innovation and adaptation to market changes.

How to Implement the 70 20 10 Rule in Branding?

70% on Core Branding Activities

Focusing 70% of resources on core activities ensures that the brand remains strong and consistent. Core activities include:

• Maintaining brand identity: Ensuring all communications reflect the brand’s values and messaging.
• Customer engagement: Regular interactions through social media, email marketing, and customer service.
• Product quality: Consistently delivering high-quality products or services that meet customer expectations.

By dedicating the majority of resources to these areas, brands can build a solid foundation that supports long-term success.

20% on Related Innovations

Allocating 20% of resources to related innovations allows brands to evolve without straying too far from their core identity. This can include:

• Expanding product lines: Introducing new products that complement existing offerings.
• Enhancing customer experience: Implementing new technologies or processes to improve customer interactions.
• Exploring new markets: Testing new geographic or demographic markets to extend brand reach.

These innovations should align with the brand’s core values and mission, ensuring a seamless integration into the brand strategy.

10% on Experimental Initiatives

The final 10% of resources should be allocated to high-risk, high-reward projects. These experimental initiatives might include:

• Testing new marketing channels: Exploring emerging platforms like TikTok or podcasts.
• Developing breakthrough products: Creating entirely new product categories that challenge industry norms.
• Pioneering brand partnerships: Collaborating with unconventional partners to reach new audiences.

While these initiatives carry risk, they can lead to significant breakthroughs that propel the brand forward.

Why Use the 70 20 10 Rule in Branding?

The 70 20 10 rule provides a structured yet flexible framework for resource allocation that balances stability with innovation. It ensures that brands maintain their core strengths while exploring new opportunities for growth. This approach can lead to:

• Sustained brand relevance: By continually innovating, brands can adapt to changing consumer preferences and market dynamics.
• Balanced risk management: Allocating a small portion of resources to high-risk projects limits potential losses while maximizing potential gains.
• Strategic growth: Structured innovation efforts can lead to more effective and efficient growth strategies.

Examples of the 70 20 10 Rule in Action

Coca-Cola

Coca-Cola uses the 70 20 10 rule to balance its traditional soda products with innovative ventures. While 70% of its resources focus on core products like Coca-Cola Classic, 20% is dedicated to related products such as Diet Coke and Coke Zero. The remaining 10% explores experimental products and marketing strategies, such as the introduction of new flavors or sustainable packaging initiatives.

Google

Google is another example of a company successfully using the 70 20 10 rule. The majority of its resources are dedicated to core products like search and advertising. The company allocates 20% to related innovations like Google Maps and Gmail, while 10% goes to experimental projects such as self-driving cars and other moonshot initiatives.

People Also Ask

How Can Small Businesses Use the 70 20 10 Rule?

Small businesses can apply the 70 20 10 rule by focusing their limited resources on maintaining core operations, exploring adjacent growth opportunities, and dedicating a small portion to experimenting with new ideas. This approach can help them remain competitive and innovative.

What Are the Risks of the 70 20 10 Rule?

The primary risk is misallocating resources, which can lead to neglect of core activities or excessive investment in high-risk projects. Brands must carefully assess their capabilities and market conditions to apply the rule effectively.

Can the 70 20 10 Rule Be Used in Digital Marketing?

Yes, the 70 20 10 rule can be applied to digital marketing by focusing 70% on proven strategies like SEO and email marketing, 20% on emerging trends such as video content, and 10% on experimental tactics like AI-driven campaigns.

How Does the 70 20 10 Rule Encourage Innovation?

By dedicating 30% of resources to innovation and experimentation, the rule encourages brands to explore new ideas and technologies, fostering a culture of creativity and adaptability.

What Are Alternatives to the 70 20 10 Rule?

Alternatives include the Pareto Principle (80/20 rule) and the Balanced Scorecard approach, which offer different frameworks for resource allocation and strategic planning.

Conclusion

The 70 20 10 rule is a powerful tool for brands looking to balance stability with innovation. By allocating resources strategically, brands can maintain their core strengths while exploring new opportunities for growth. Whether you’re a small business or a global corporation, this framework can help you stay relevant and competitive in a rapidly changing market. For more insights on branding strategies, consider exploring topics like customer engagement and digital marketing trends.