Question

6. Analysis of the main challenges faced by the world organization in building brands and Halwani Brothers such as positioning, communication, environmental change, product life cycle, brand equity, market share, consumer behavior, etc. ... (400 words)

Answer 1

There are many challenges faced by the world organization in building brands. Building brands help in the awareness of the product introduced in the market. Any company needs to focus on promoting and building its brand in order to gain recognition and support in the market. Branding is a very important process that helps to communicate the values and importance of the product in the market.

The main challenges faced by the world organization in building brands are as follows :

The positioning of the brand: The three main core of the brand is Positioning, brand performance, and commitment delivered to the customer. Brand positioning helps the company to make customers visualize the quality and need for the brand. It is a strategy that focuses on maximizing the value of the brand. Commitment includes delivering the quality promised to the customer.

Market share: One of the main challenges faced in building a brand is maintaining as well as detecting the market share of the product. Market share plays a very important role in the growth of the business. It mainly focuses on market segmentation and the revenue generated by the brand. Innovation and remodeling of the brand play a very important role to maintain the market share and provide revenue to the company. In simple words, market share implies the number of customers owned by the company of that particular brand. An increase in market share results in an increase in customers and in turn increase in the revenue of the company. It also depicts that a company no longer needs to push its brand in the market as it already has acquired a strong place in the market.

Communication: The message related to the brand should be clear and delivered in a manner that is understood as well as recognizable by the consumers. The values of the brand should be communicated to the consumer to understand its importance. This helps the consumers to attach themselves emotionally with the brand. Sometimes, the companies are unable to deliver the right message to the customers, which leads to a reduction in the consumer graph.

Building of Brand Name: Brand name should be clear enough to match the product and to make consumers understand its quality. The brand name also acts as a USP( Unique Selling Price) of the product. A good brand name will be well understood by the consumers and will also be popular in the market. The popularity of the brand will also make it memorable and can also give a profit in the long run.

Consumer Behavior: Understanding consumer behavior is also one of the most important challenges faced by companies. They are considered as the ruler of the market place. Consumers are mainly attracted to brands that deliver quality as promised. They tend to be more loyal to these brands and continue to purchase even when the price rises. Consumer behavior is also one of the major factors that need to be considered in order to launch a brand. Post-purchase of the product, the consumer will help the company to understand the after-sales experience and the quality of the product. This, in turn, will help the companies to understand the importance of customer insights and take corrective actions to improve the quality as well as branding of the product.

Environmental Factors: There are many external and internal challenges faced by companies in building brands. Some of the internal factors are business strategy and market analysis, marketing mix, and implementation of the business strategies. The external factors include legal, political, socio-cultural challenges, environmental challenges, needs and demand of the products, technological intervention, etc.

Brand Equity: Another challenge faced by the company to build a brand is to maintain brand equity. Brand equity focuses on building the goodwill and customer loyalty of the brand. It helps to create a product with superior quality, helping it to grow in the market. The interest of the corporates is also high. With better brand equity, any company can gain a competitive advantage in the market.

Introducing digital techniques: Digital techniques are also one of the major challenges faced by companies trying to build a brand. There are new and improved techniques worldwide. With the commencement of techniques and advancement in technologies in the market, it becomes quite difficult for the company to maintain its popularity in the market. In order to become a success in the market and to curb its substitutes, a company needs to focus on introducing new and innovative techniques that will help them stand alone in the market. Branding the product in the digital platforms as well as social media is common these days and a company needs to understand the importance of digital branding as it tremendously helps in creating brand awareness and polularity among the customers.

Branding challenges also includes testing of the product, strategy for the brand, generating ideas that are understood by the consumers in the market. Effective branding is considered to be one of the cornerstones in marketing the product and making it visible to the consumers. It immensely helps the business to grow in the long run.