Question

Discuss branding strategy- the decisions companies make in building and managing their brands.

Answer 1

Hi friend,

The action plan that organizations use to differentiate their products , services and identities from their competitors is referred to as  branding strategies. It helps to identify the image you want to create in the customers for the benefit in the organisation . It is more than a logo /company name.It is the perception that a client /customer have regarding your business. So branding strategies are needed to define the organisation so that the brand becomes the best friend of customer.

Major branding decisions are

1) BRAND POSITIONING :A brand should be clearly positioned in customer's mind . It can be done in any of the three levels

a)On product attributes: This strategy focus on the attributes of the products . This is least desirable levels of brand positioning as competition can easily copy it.

b)On benefits of products :This strategy is better as a brand can be positioned on basis of a desirable benefit.

c)On belief and values : successful brand engage customer on deep emotional level.

So brand positioning is expresses the vision and mission of the brand

2)BRAND NAME SELECTION :   

The name of the brand is the base of the brand .It is a part science , part art and certainly a measure of instinct.Brand name should suggest the benefits and qualities of brand .It should be easy to pronounce , recognize and remember. It should be distinctive and should not confuse with other brands.It should be extendable (example:amazon.com) , so that it can expand to other areas of business. It should translate easily into foreign language .It should be capable of registration and legal protection.

3)BRAND SPONSORSHIP

A manufacture has 4 brand sponsorship options - co-brand , manufacturer's brand , private brand ,and licensed brand.

A product can be launched at a manufacturers brand . A manufacturer can sell it as private brand .Instead of spending money to create own brand , some manufacturer choose licensed brand .Example:children's products using names like Disney , hello kitty etc .Also two companies can join forces and co-brand a product. This has the advantage that the combined brands create broader consumer appeal and larger brand equity.

4)BRAND DEVELOPMENT

For developing brands there are 4 method

a) line extension :This existing brand name is extended in new form , size ,color etc .Example Cocacola(diet cola with vanilla)

b) brand extension : The existing brand name is extended to a new product category . So new product can be introduced with less cost on advertising . This gives faster acceptance to new product. Example : Kellogs introduced special K healthy breakfast inline of cereals , biscuits and snacks .

c) Multi brands and new brands : Many products are marketed in a single brand name . Example: Unilever sells soaps ,shampoo, toothpaste and a wide variety of items. company can capture a larger market share by this method.

When the enters a new product , a new brand name may be needed when existing name is not suitable for the product.

Based on the above strategies companies manage the brand for strengthening their market positions.

Thank you..