Question

In the context of Branding Strategy and building Strong Brands:

Define brand equity and discuss the major brand strategy decisions. Give examples for each element and include diagram(s)  

(600 Words)

Answer 1

Brand Equity refers to a marketing term that describes the brands value. There can be two types of brand equity, positive and negative brand equity. If consumers are liking that brand and have a great experience with it then it has positive brand equity and If consumers are disappointed with their service or quality and not liking their products at all it is known as negative brand equity.

Major brand strategy decision are as follows:

1) Brand Positioning: A brand must be positioned in the consumers mind. This can be done on the following basis:

a) On the basis of product attributes such as colours, new design and etc. This is the least desirable level for brand positioning as other competitors can copy the same attributes. For example- If a car has launched with fancu colours, unique design and features then the competitors will copy those features.

b) On the basis of beliefs and values, Big and successful brands connect with their consumers emotionally. For example- Brands like Mini and Aston martin rely very less on tangivle attribute but more on creativity, passion and excitement around the brand.

2) Brand Name Selection: It is the base of the brand as it is the first thing comes to your mind when you imagine for a brand. It is a very difficult task to choose one. The brand name selection is the is the most important branding decision. Following qualities should be in a brand name:

a) It should define your product or your product's quality. For example: "Never Dull", This name suggests that it is for polishing as it says never dull, It is for polishing the metals so they keep shining.

b) It should be easy to pronouce, remember and recognize. For example: Apple and Nike are so easy to remember and recognise.

c) It should be different and extendable. It means the name should be unique and not similar to other brand anmes and it should be like this that no. of other products can also be included under that line.

3) Brand Sponsorship: A manufacturer has four brand options:

a) Manufacturer's Brand- This refers to national brand. A product can be launched as a manufacturer'sbrand only. For example- Kellogs and Sony.

b) Co- Brand- In this two companies joins and co- brand a product. It is a method in which one established brand join with other brand. It is highly benefitted as they consumer attention of other brand also. For example- Nestle uses its co branding for its nesepresso machines.

c) Private Brand- This refers to a situtation where mnufacturer give their product to resellers. This is also called a store band. When consumer become price conscious they get ready to purchase a product from private band too.

d) Licensed Brand- In this you donot have to spend millions of rupees to create your own brand name. Some comapnies licensed the anme or symbols which are created by the previou manufacturers. Example of licensed names are as follows- Hello kitty or disney and etc.

4) Brand Development: A company can choose four choices to develop a brand. Choices are given below-

a) Line Extension: This refers to extending your brand horizontally. It includes comping up with new sizes, colors, patterns or etc. It is a safest way and low risk to expand your business. Sometimes, it becomes confusion fo the consumers.

b) Brand Extension: It means combing or launching a new product in your other product list. This gives an instance recognition and faster growth. This includes a huge risk as sometimes consumer cant fix this in their mind and the brand gets fail but in other cases it also went successful.