How to Create Your Brand Development Strategy
How to Create a Brand?
How to Create Your Brand Development Strategy : There are four effective steps in a brand development strategy to create a brand:
- Choose a brand name and logo
2. Building a brand in the minds of customers
3. Brand Sponsor
4. Develop brand
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? That’s because of the convenience and authenticity that the iPhone brings to its users.
Apple through their years of research and experience has created a state in our minds of ultimate luxury and comfort in 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 edge 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 with selling books and has now expanded to 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 differentiate 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’ is 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 adage from a marketer- Products are created in factories, but brands are created in the mind. This can be done in a number of ways – At a basic level, it starts with 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 a brand can be positioned is by associating its name with the desired benefits. In doing so, the Kindle goes beyond the e-book reader – 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 just 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 be and 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 emerging big brands and are referred to as National brands. But for smaller Companies, it’s not always possible to support a brand at a huge cost. In such scenarios, brand sponsorship is very important. Unlike the National or Manufacturing brands, there are Store brands. In recent decades, store brands are gaining more and more 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 citing its advantages or comparing side by side with top brands. Association of large retailers with lesser known products manufacturers are recently tying up with Amazon to sell their phones. In fact, this strategy is working great as the ‘no-name’ brands are getting the support of the big brand stores be it online or offline.
Licensed Brand Sponsorship:
In this brand sponsorship, some companies buy the names and symbols of other manufacturers or creators with a fee and endorse its products under such brand name. This is a common thing in the fashion industry like Calvin Klein, Tommy Hilfiger, Gucci, Armani etc., where the Companies are using the names and initials of well-known fashion innovator. This type of branding turns out as an added fillip but with a pinch in the pocket.
Under such a brand sponsorship strategy, to established brand names of different companies are used on the same product. Because each brand dominates in a different category, the combined brands create broader consumer appeal and greater brand equity.
For example, Bajaj Allianz Life Insurance where Bajaj is a dominant player in the automobile sector and Allianz is a German financial service major. Now since Bajaj wants an entry in the insurance sector and Allianz wants an entry in the Indian market, they jointly made a brand ‘Bajaj-Allianz’ to reap the fruits of the Indian insurance market.
Co-branding carries some limitations too. Such relationships usually involve complex legal contracts and licenses. Co-branding partners must carefully coordinate their advertising, sales promotion, and other marketing efforts. The onus lies on both the partners to carry the co-brand with trust and dignity.
4. Developing Brands:
To augment the brand equity it is very important to prepare a brand development strategy incommensurate with changing business scenarios. There is no hard and fast rule to dictate over.
Brands name of a product can be extended to an existing line of products to accredit new forms, colors, sizes, ingredients or flavors of an existing product. However, line extensions involve some risks. An overextended brand name might cause consumer confusion or loss some of its specific meaning.
It happens when a current brand name is extended to a new or modified product in a new category. For example, Nestlé’s popular brand of noodles Maagi has been extended to its tomato ketchup, pasta, soup etc. A brand extension gives a new product instant recognition and faster acceptance. But one should be careful while extending brand as it may confuse the image of the main brand.
Multibranding offers a way to establish different features that appeal to different customer segments, lock up more reseller shelf space and capture a larger market share.
For example, a reputable company sells multiple varieties of soft drinks under different brand names. These brands are fighting each other to reign the market and as a result, they individually may have a smaller share of a pie, but as a whole, the Company is dominating the soft drink market. The major drawback here is the individual brands obtain only a small market share and may not be very profitable.
Brands are not created in a day or two; you ought to have the patience to grow it. The above – mentioned points suggest some best practices to build a brand, but the real test begins in the field.
Brand development strategy differs from place to place, even urban branding and rural branding are way different in their practical applications. Remember that behind a successful brand development strategy, there lie lots of endeavors, a vividly clear vision and above all an uncompromised quality of product or service.