How to Build Your Brand Development Strategy
How to Create a Brand?
There are four effective steps in a brand development strategy to create a brand:
Choose a brand name and logo
Building a brand in the minds of customers
What is Brand Equity?
How to create a brand is not much different from setting up your business. This takes time. Gradually you can create Brand Equity. Brand equity is a differential effect when consumers react better to a brand than generic or unbranded versions of the same product. Whenever we think of buying a smartphone, the first name that comes to our mind is – iPhone. Ask why? It is because of the convenience and authenticity that iPhone brings to its users.
Apple through their years of research and experience has created an atmosphere of ultimate luxury and comfort in our minds when using their products. There may be several similar products from others that go hand in hand with the Apple iPhone and may be superior to it, but the identity of the iPhone gives it an edge over the rest – no matter what the price is. This advantage is Brand Equity.
4 Step Brand Development Strategy
1. Select Brand Name and select Logo:
While building a brand name strategy development plays an important role. A good name and style can add positivity to a product’s success. This is the most difficult task to begin with. Simplicity is the first step. Names should be easy to pronounce, recognize and remember. In addition, it should suggest something about the benefits and quality of the product.
Names like Google, Nike, Facebook, Apple, KFC etc. is one of the most established brands worldwide. An interesting fact about the names is that they are easy to translate in different languages around the world. Therefore the meaning of a particular word should not be something that indicates bad, wrong or negative.
Again the name should be extendable to cover multiple product lines. For example, Amazon.com started its business by selling books and has now expanded into several product categories.
Once selected, the brand name must also be protected. This means that in many cases the brand name ends up getting mixed up with the product category and people cannot distinguish the brand identity from the product category.
For example, Xerox is a company that makes photocopiers, but doing photocopying is often called doing xerox. ‘Xerox’ should be pronounced as a noun and not as a verb. Many people find it difficult to distinguish between products and services which ultimately hinders the Company’s brand name.
2. Building a brand in the minds of customers:
Interesting saying from a marketer- Products are made in factories, but brands are created in the mind. This can be done in a number of ways – At a basic level, start by introducing the product and its distinguishing characteristics to the target customers.
Let’s take the example of Amazon’s Kindle ebook reader. Amazon targets its customers, saying that it is an e-book reader that has a special feature of reading books in virtual format. At this stage, they are only introduced to the product and have a very low level of impact.
A more effective way to position a brand is to associate its name with the desired benefits. In doing so, the Kindle goes beyond e-book readers – a lightweight travel dictionary, storing thousands of books in an easy-to-find, glare-free and hassle-free way.
The strongest brands do more than build features and benefits in the minds of customers and position themselves on strong values and beliefs, which are rooted in deep emotional bonds. Like reading a book on the Kindle is an absolute pleasure and presents itself as a book lover’s new best friend. When placing a brand in people’s minds, marketers must establish a mission for the brand and a vision of what the brand should and should do.
3. Brand Sponsors:
Brand sponsorship can be of three types:
Private Brand Sponsor
Licensed Brand Sponsor
Private Brand Sponsor:
Many advertising and social marketing strategies work behind the big brands that emerge and are referred to as National brands. But for smaller Companies, it’s not always possible to support a brand at great expense. In such a scenario, brand sponsorship is essential. Unlike the National or Manufacturing brands, there are Store brands. In recent decades, store brands have increasingly emerged from the market. Is this the reason?
Major shopping malls like Big Bazaar, Walmart resell products at significantly discounted prices especially generic or no-name brands. They endorse the product by mentioning its advantages or comparing side by side with well-known brands. The association of large retailers with lesser-known products serves as an aid in increasing the brand value of what used to be called ‘no-name’ products.
Personal brand sponsorship is also followed in online shopping. As we can see, small or lesser known mobile phone manufacturers have recently teamed up with Amazon to sell their phones. In fact, this strategy works well because the ‘no name’ brand has the support of major brand stores both online and offline.
Licensed Brand Sponsor:
In this brand sponsorship, some companies buy names and symbols from other manufacturers or creators for a fee and endorse their products under that brand name. This is common in the fashion industry such as Calvin Klein, Tommy Hilfiger, Gucci, Armani, etc., where the Company uses the names and initials of well-known fashion innovators. This type of branding turns out to be a filler addition but with a little bit on the pocket.
Under such a brand sponsorship strategy, to assign brand names from different companies to be used on the same product. As each brand dominates in a different category, the combined brand creates broader consumer appeal and greater brand equity.
For example, Bajaj Allianz Life Insurance where Bajaj is the dominant player in the automotive sector and Allianz is a German financial services company. Now that Bajaj wants to enter the insurance sector and Allianz wants to enter the Indian market, they have jointly created the ‘Bajaj-Allianz’ brand to reap the fruits of the Indian insurance market.
Co-branding also brings some limitations. Such relationships usually involve complex legal contracts and licenses. Co-branding partners must carefully coordinate advertising, sales promotion and other marketing efforts. The onus lies with both partners to unite the brand with trust and dignity.
4. Developing Brands:
In order to increase brand equity, it is very important to prepare a brand development strategy that is not commensurate with the changing business scenario. There are no hard and fast rules to dictate.
The brand name of a product can be extended to an existing product line to accredit a new shape, color, size, ingredient, or taste of an existing product. However, line extensions involve some risks. A brand name that is too long can cause consumer confusion or lose some of its specific meaning.
It occurs when the current brand name is extended to a new or modified product in a new category. For example, Nestlé’s popular noodle brand, Maagi, has grown into ketchup, pasta, soup, etc. Brand extension provides instant introduction of new products and faster acceptance. But one should be careful while extending the brand as it can confuse the main brand image.
Multibranding offers a way to build features that appeal to different customer segments, lock in more retailer shelf space and capture a larger market share.
For example, a well-known company sells different types of soft drinks under different brand names. These brands compete with each other to dominate the market and as a result, they may individually have a smaller share of the pie, but overall, the Company dominates the soft drink market. The main drawback here is that each brand only gains a small market share and may not be very profitable.
Brands are not created in a day or two; You have to have the patience to grow it. The points mentioned above suggest some best practices for brand building, but the real test begins in the field. Brand development strategies differ from place to place, even urban brands and rural brands are much different in their practical application. Remember that behind a successful brand development strategy lies a lot of effort, a clear vision, and most importantly, uncompromising quality of product or service.