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Category: Branding

  • Branding – How to Succeed – Part 2

    Branding – How to Succeed – Part 2

    BRAND MANAGEMENT

    Types of Brand: Part 1

    There are, in fact, many different types of brands each with its own recognisable features. The following characterises the essential features:

    A Premium Brand – Compared with other products in the same category, the price is pitched at a premium. The age group that is identified more than any other with premium brands is that of the 30-65 grouping. Furthermore, this age sector continues to increase in its receptiveness.

    An Economy Brand – This is a brand that is targeted, which means that it is focusing on a specific market rather than following the marketing strategy of mass marketing, to a high price elasticity market segment. The price elasticity of demand is a measure of how the quantity demanded is affected by changes in price. It is measured as elasticity. Water is an example of a product that has inelastic demand in that people will pay anything for it. Conversely, sugar is very elastic since, as the price of sugar increases, people will turn to other products, such as saccharin, which are treated as sugar substitutes.

    A Fighting Brand – It is a brand that is created specifically to act as a challenge against the threat from a competitive product. A typical example is a low-priced manufacturer’s brand sold with the minimum amount of advertising. This brand is designed to compete with the dealers’ brands.

    Corporate Branding – This refers to a company that uses its own name as the designated name to be used on a product brand. This means that the product and the company name become the brand name. An excellent example is the drink Coca Cola.

    Family Branding – It involves selling a number of products, which are related to each other in some way, under one brand name. It differs from individual branding whereby each product is given an individual brand name. Product quality is an important facet. Should one product within the range prove unsatisfactory, it could reduce sales of all the others. This feature figures prominently in Family Branding.

    Individual Branding – When all a company’s products are given their own individual brand names. Each product has its own image and identity, and it is this that constitutes the added value. A case in point is that of Coca-Cola and Bacardi Mixers. They both have their own brand name, and so can be identified individually, but are owned and marketed by the Coca-Cola Co.

    Brand Leveraging – A company can use the brand equity inherent in an existing brand name in order to introduce a new product or product line. Hence, consider the case of an existing range of products. Should another product be added and it was found that this was of better quality than the other products in the range. This would be characterised as trading up or brand leveraging at

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  • Branding – How to Succeed

    Branding – How to Succeed

    BRAND MANAGEMENT

    Overview

    The application of marketing methods in respect of a particular product, range of products, or a specific brand is commonly referred to as Brand management. Its role is to increase the product’s perceived value in the eyes of the customer, and at the same time increase the strength of the brand and its brand equity, which refers to the benefits associated with a product that has a particular brand name as compared with the benefits that the same product would achieve if it did not have that brand name.

    A brand is regarded as being synonymous with a product whose quality, effectiveness and desirability is perceived by the customer to be maintained no matter how often the product is purchased. The purpose is to increase sales by increasing the profile and desirability of the product in relation to competitive products. An associated benefit is that the manufacturer may feel able to increase the price of the product.

    A brand’s value can be assessed in a number of ways, but a particularly pertinent method is the level of profits that it can generate for the manufacturer. Factors that can increase the value of a brand include increasing sales volume, increasing unit price, reducing the product’s cost of sales, and more efficient marketing.

    The control and management of the marketing effort applied to the brand, and overall responsibility for its profitability, is a succinct definition of the role of the Brand Manager. He is seen as the driving force behind the brand and holds a pivotal role in the overall marketing strategy. For this reason, Brand Management is invariably seen as a broader and more strategic role than that of the Marketing function alone.

    It is an interesting fact that, in respect of many of the world’s leading brands, from the viewpoint of the annual survey published by the prestigious Interbrand and Business Week magazines, the market capitalisation of the companies to which they are associated often consists largely of the value of the brand equity.

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