Towering over giants: Story of On’s masterclass in strategic branding

Key takeaways:

1. Establish a clear brand vision: Define your brand's vision and mission that guides all actions.
2. Embrace continuous innovation: Adapt and innovate relentlessly to stay ahead of changing market demands and customer needs.
3. Identify and amplify your USP: Clearly define your unique selling proposition and make it the cornerstone of your brand.
4. Prioritise authentic brand building: Invest in genuine connections and build trust with your audience through consistent values and actions.

Every time I lace up my On shoes, I can't help but marvel at the brand's remarkable journey. Here's a Swiss start-up that dared to enter the fiercely competitive running shoe market, an arena long dominated by giants like Nike, Adidas and Puma. And not only survived but has thrived in the presence of giants. How did they achieve this? It wasn't about outspending their rivals; it was about outsmarting them through a potent combination of strategic branding, a relentless culture of innovation, and exceptional execution. On's story serves as a powerful reminder that in today's business world, strategic branding isn't just for the established players—it's the crucial foundation that allows businesses of all sizes to carve their own path to success and leave a lasting mark.

Being strategic and clearly defining its core brand was necessary for On, a new entrant challenging the established running shoe market. This saturated, multi-billion-dollar industry, dominated by established players, presented On with a significant visibility challenge.

On leveraged key strengths to overcome this. On’s core brand strategically on a singular vision focusing on serious runners, supported by a culture of continuous innovation, the drive to build a better future, and the global perception of the Swiss brand.

A focus on serious runners

On’s unwavering focus allowed for dedicated product development without early distractions. Olivier Bernhard, founder of On, wanted to create a running shoe with a totally new feel, focused on high performance, for serious runners. On trudged forward with a vision to revolutionise the sensation of running.

A culture of innovation

A powerful culture of innovation swept in to support Bernhard’s vision. Starting out with a makeshift prototype using pieces of garden hose, On’s innovations today are spearheaded by the On Lab in Zurich. Berhard’s prototype was refined repeatedly until the CloudTec^TM technology was developed, giving runners the experience of ‘running on clouds’. Today, every On shoe incorporates this technology setting them apart from conventional cushioning systems. The On Lab did not stop there. They continued to uphold Bernhard’s vision to deliver the best possible running experience. Other innovations followed suit such as, LightSpray^TM, OnDryTec^TM, and Helion^TM ensuring On’s products continue to delight runners with a smoother and more effortless run.

Building a more sustainable future

On’s vision is driven by a desire to build a better future through sustainable innovations. The On Lab pioneered Cyclon^TM, a running shoe subscription model, where On would manage the start and end of life of its shoes. Subscribers to Cyclon^TM receive On shoes, and return them once they’re worn out, before receiving a new pair. On’s Cyclon^TM is arguably the first to combine a subscription model with a strong emphasis on a direct, closed-loop recycling process for high-performance running shoes. Cyclon^TM is currently only available in 34 countries worldwide, such as China, USA, and Japan.

Leveraging on the Swiss brand

On strategically leveraged its 'Swiss-made' origin, tapping into the global perception of Swiss products as synonymous with high quality, precision, and reliability. This deliberate association instantly lent On an aura of trust and technical excellence, a valuable differentiator in the crowded running shoe market, appealing directly to serious runners seeking performance and dependability.

Beyond a compelling core brand, On's rapid ascent can be attributed to its strategic and multi-faceted execution.

A key element of this has been their consistent brand messaging, which has always centered on the core promise of improving the sensation of running. Every communication, from their website copy to their social media campaigns, emphasises the unique 'running on clouds' experience and the performance benefits derived from their innovative CloudTec^TM technology. This clear and consistent message resonates directly with serious runners who are actively seeking a better running experience.

To amplify this message and enhance brand visibility, On has implemented both online and offline approaches.

Online approach

On has cultivated a consistent and engaging digital presence across various platforms. In today's digital age, a strong online presence is paramount for brand building, allowing for direct communication with consumers, fostering community, and providing valuable information about products and technologies. Recognising the power of influencer marketing, On has also strategically partnered with high-profile figures such as Zendaya and Roger Federer.

Zendaya,a prominent figure in fashion and popular culture, helps On reach a broader, more lifestyle-oriented audience, potentially attracting new consumers who appreciate the brand's design aesthetic and aspirational image.

Offline approach

On actively engages in experiential branding by ensuring runners have the opportunity to experience their shoes firsthand. An example of such opportunities would be runners at the On Store, Zurich. Early birds to their weekly running events can try and test On’s wide range of running shoes before deciding on making their purchase. These direct interactions allow potential customers to experience the unique feel of On shoes and build a tangible connection with the brand, potentially converting curiosity into loyal customers.

On's remarkable journey offers valuable lessons for businesses of all sizes. Their strategic playbook highlights key principles for building a resilient and impactful brand in today's competitive landscape. Key takeaways for businesses are:

1. Establish a clear brand vision: Define your brand's vision and mission that guides all actions.
2. Embrace continuous innovation: Adapt and innovate relentlessly to stay ahead of changing market demands and customer needs.
3. Identify and amplify your USP: Clearly define your unique selling proposition and make it the cornerstone of your brand.
4. Prioritise authentic brand building: Invest in genuine connections and build trust with your audience through consistent values and actions.

Ultimately, On's remarkable ascent exemplifies the power of strategic branding. From a Swiss startup challenging industry giants, their success highlights the critical importance of a clear and compelling brand identity for businesses of all sizes seeking to not just compete but truly stand out and make a lasting impact.

Inspired by On's strategic branding success? At Binomial Consulting, we focus on strategic branding to help companies develop sustainable, long-term growth – just like On’s success story. Let Binomial Consulting strategically re-brand your company and chart your unique path to success. Contact us today!