Techniques for Measuring and Managing Brand Value
Added on 2021-02-16
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LO3:Evaluate how brands are leveraged/extended over time domestically and internationally.A brand is known and related with its brand name and equity. Every product that is released and introduced in to the market is done under the brands name. With time, brandsearn and gain recognition as their products mature. When the brand comes up with an innovative idea and want to introduce a new product, they extend their brand which is therefore called brand extension. This is done under the same name of the brand. “IT’SFARLESSEXPENSIVETOLAUNCHANEWPRODUCTUNDERAWELL-KNOWNBRANDTHANTOLAUNCHANENTIRELYNEWBRAND. A BRANDEXTENSIONHASAWARENESSANDRECOGNITIONBUILTIN. A FAMILIARBRANDNAMEINSTANTLYCOMMUNICATESMESSAGESTOCONSUMERSBASEDONTHEEXISTINGBRANDPROMISE.”as said by Gunelius [CITATION Sus20 \l 1033 ].The well-known product that is already in the market has a set reputation, popularityand brand loyalty which is linked with the brand, thus when the new product is launched it acquires the same elements which the brand is known for. Customers expect the same quality which they received from the brands other products. This is far more efficient that creating a whole new brand. There should be some kind of association between the brand and this new product or brand. It is then considered to be “fit” and will succeed. Research is done to see which category will the customers accept and will be considered “fit”. Leverage is needed to lead the customers to believe that the product will be better than their competitors due to their brand image. If not, this could negatively affect the brand and cause it to dilute. “HAVINGAGREATREPUTATIONFORQUALITYISNOTENOUGHTOLAUNCHABRANDEXTENSION. HUNDREDSOFBRANDSHAVEAGREATREPUTATION. WHATISRELEVANTISWHETHERCUSTOMERSINTHENEWTARGETCATEGORYFINDSOMEREASONTOPREFERTHENEWBRANDEXTENSIONTOCURRENTOFFERINGS”[ CITATION Edw12 \l 1033 ] Brand extension is usually done to gain competitive advantage and have control of larger market share. Apple is an example of a successful brand extension which have extended their brand into many different categories. They haveused this to increase their overall core business by extending their brand and leveraging it. Apple has introduced iPod, iPhone and iPad which use the software IOS which after many studies have shown that they find the GUI (Graphical User Interface) to be easier to use thanits competitor Android. Studies have shown that 70% of the market is mainly android but studies showed that every android user that used IOS for a month grew to enjoy it more than android [ CITATION Ovi17 \l 1033 ] Due to the software being available on all these devices, any product that is bought introduces this operating system to this customer. As they use it more and more every day, they grow to find it easier than android and are unable to move back to it. As customers start being loyal to Apple and its operating system, they opt for purchasing MacBook’s and iPad’s. Each correlating with each other. However, brand extensions are also bound to fail if they are totally mismatched and have no relevanceat all. An example of an unsuccessful brand extension which occurred in the 1980s by Levi’s Strauss and Co. when they decided to extend their brand and launching three-piece suits under the sub brand called Levi’s Tailored Classics. Years of really low sales later they stopped producing the product completely. This happened due to the customers image of Levi’s being casual rough clothes and not formal business suits. This is why it is important forbrands to research their brand and consumers to effectively introduce an extension which will suit their customers and target audience. After analyzing and listening to their
customers were, they able to introduce a sub brand 5 years later being Khaki Pants under Levi’s Dockers. Offering clothes that their target audience knows them for but with a different touch. [ CITATION Kir19 \l 1033 ]“Determine who you are and what your brand is, and what you’re not. Therest of it is just a lot of noise.” – Geoffrey Zakarian, RestaurateurThere may be many different strategies that can be used when brand extending, these are done after doing extensive research on the customers and what it is that would cater to them. As their needs and wants change, the brand has to act accordingly to acquire more brand equity and gain more market share. One of the strategies is to extend the brandvalue which can include repositioning a product in a different form or repositioning a different product in the same form. An example of this being Coca Cola repositioning its Coke, which is the same product but is sold in a glass bottle rather than a metal tin. This is done because some like the more expensive feel which tackles the mentality of the customers to relate it with the brand itself. "IT'SREALLYHARDTOPINPOINTONEORTWOSPECIFICREASONSWHYPEOPLELIKEIT, BUTWHATWEKNOWISTHEYDO." [ CITATION Hol16 \l 1033 ]. Some other ways which this can be done is through having design or price changes. Features can be renewed such as the ingredients. Canada Dry has done something similarly by introducing different flavors to their brand. A few of them being blueberry, lemon and orange. Many forms and strategies are used to maintain the brand equity of the brand. One of them is by reinforcing the brand. Reinforcement of brands is basically keeping the brand alive and well known within their current customers and new ones. This is done by showcasing the audience and target market by portraying to them how they are different from their competitors. What the core benefits of the product are and how it will be satisfying the demand of consumers. Monitoring is needed to be done during the product life cycle when it is first introduced and grows eventually into the maturity phase. By doing so, analysts are able to know what the consumers want and how their needs are changing accordingly with time. This is done to remind the consumers what it is that the brand standsfor and its benefits that make them stand out from their competitors. [ CITATION Arp20 \l 1033 ]To keep up brand awareness, it is important to introduce innovations through research and tackle the needs of the customers. As the quote below by Seth Godin states catering to the customers wants and needs will keep up the brand image.“Don’t find customers for your products, find products for your customers.”– Seth GodinSome other ways of being able to reinforce your brand is through marketing, by advertising consistently and showcasing commercial on television regularly which will be brought to the eyes of the consumers repeatedly. This increases brand awareness and recollection of the brands image in their head. An example of this is a Pakistani brand QarshiJam-e-Shirin which has used this strategy to gain its brand awareness through its addictive jingle which gets stuck in your head. Consumers or audience end up singing it unconsciously. The slogan “light light refreshing... Qarshi Jam-e-shirin” is used in the advertisements in commercials which are repeatedly played. [ CITATION Ari18 \l 1033 ] Similarly, the audience
which is the Pakistani residents are the people they target. Customers complained on loving their products but due to many of the audience having Diabetes in Pakistan were not able tohave it often. They listened to their customers’ needs and reinforced their brand by introducing a new product Sugar Free Qarshi Jam-e-Shireen to cover more market and increase brand loyalty. Being able to revitalize a brand is as important as reinforcing the brands image. This strategy is basically implemented when the product reaches the maturity stage in the product cycle. At this stage the product is at its peak where profits are highest and have already made its mark in the market. After the maturity stage it starts to decline and fall down with lesser profits. At this stage it is time to revitalize the product due the numerous amounts of competitors offering the same product which makes the original one almost forgetful. Technology and design have to be met to sustain their market share. Keeping the brand relevant and introducing new elements or products is always important to maintain brand image in customers eyes. Globalizations is another aspect which is important as sometimes the target market can be achieved by expanding to different countries and be revitalized. Some new technological aspects can also be introduced to products to meet trends which can subside them from their competitors. [ CITATION Pra19 \l 1033 ] To increase the usage of this product, reminders of the brands through advertisements similarly as Qarshi Jam-e-Shirin has done mentioned above can increase it. Targeting new audiences which were not tackled before. The product can also be augmented by giving something extra with their products to increase loyalty of customers and have them purchase their products again. “BRANDREVITALIZATIONBRINGSABOUTACONSIDERABLETRANSFORMATIONINTHEWAYTHEOUTERWORLDPERCEIVESTHECOMPANYANDITSPRODUCTS”[ CITATION Pra19 \l 1033 ]. An exampleof this is Johnsons which used to mainly cater items for babies, the main purpose of them being for soft skin and hair. They repositioned and revitalized their products effectively and started selling to women. A new target audience was tackled as well. [ CITATION Hit19 \l 1033 ]The collaboration of two brands is both of them coming together and creating an alliance which creates a unique product to gain competitive advantage. Including this, its purpose is to gain profits and dabble in each other’s markets. This ultimately is an easier way to expand to newer audiences. This is supposed to be beneficial to both parties. Brands which share the common goals, values, target market and objectives usually come together and collaborate to create a product which will help them achieve it by using each other’s brand image. Brands have recently started doing this a lot more often when introducing a new product or extending the brand as it is easier and more market is available instantly. The benefits of this are the increase in market share, increase in profits, and more customers. “INTODAY’SDYNAMICMARKETSANDTHEEVER-CHANGINGBUSINESSSCENARIOS, ITISVERYIMPORTANTFORTHEBRANDSTOSURVIVEANDTHRIVEINTHEMARKETRETAININGTHELOYALSETOFCUSTOMERSBYOFFERINGTHEPRODUCTSTHATAREUNIQUEANDINNOVATIVEAMIDSTTHETOUGHCOMPETITION.” [ CITATION Hit18 \l 1033 ] An example of a brand collaboration on an international level is the clothes outlet brand Forever 21 and the Cheese snack Cheetos. These two brands collaborated together to create a line of clothes, accessories and swimwear which had elements of the Cheetos branding incorporated in them. This collaboration was effective and very smart as they share the same main key audience. Both
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