What is a Brand?
A Brand is a name, term, sign, symbol, design, or even a combination of these, that identifies the maker or seller of the product or service. Customers view a brand as an important part of a product. Branding is considered one of the important functions of marketing as under this function, the decision of the name by which the products/services should be marketed in the market is taken.
A Brand is a product’s identification and can be in the form of a symbol, design, name, etc. The purpose of branding is not to just identify the seller or producer, but also to make the product superior to the competitor’s product.
4 Steps to Build Strong Brands
Building strong brands generally involves Brand Positioning, Brand Name Selection, Brand Sponsorship, and Brand Development. Let’s study them in detail.
Step 1: Brand Positioning – Attributes, Benefits, and Beliefs
Brand positioning means placing the brand name in the minds of customers. Positioning refers to the act of designing the company’s offering and image in such a way that it occupies a distinctive place in the minds of customers. The activity of positioning involves placing the product/service in the minds of the target customers and making the image of the product/service superior as compared to other similar products. For example, Starbucks. Starbucks wanted to make itself ‘The Third Home’ between home and work so that people can come and relax whenever they are tired. They decided to target customers with medium and high-level income. Starbucks uses the following taglines to strengthen its positioning in the market: 100% Recycled Paper Use, The Finest Milk Use, The Best Coffee, Rich and Smooth Flavours, and Natural and Clean.
Further, a brand can position itself at three levels namely; Attributes, Benefits, and Beliefs.
- Attributes: A brand, at the lower level, can position itself through attributes. Attributes include the functioning of the core product. For example, P&G invented the Pampers with specific attributes like fluid absorption, fit, and disposability. However positioning through attributes is not very effective, as the attributes can be copied by the competitors.
- Benefits: Benefits that are derived from the products also provide the basis for brand positioning. For example, Pampers associated itself with certain benefits like skin-health benefits from dryness.
- Beliefs: A brand can be best positioned when associated with some beliefs. The brands must pack an emotional wallop. For example, Pampers ensures better sleep as a result of full-night dryness thus leading to brain development.
Step 2: Brand Name Selection – Selection & Protection
A good brand name is very important for a brand’s success. Brand name should be decided by the product, its benefits, target audience, and other marketing strategies. Desirable qualities for a brand name include various factors like,
- The product’s benefits and qualities should be revealed by its brand name. For example, Fair and Handsome.
- It should be easy to pronounce. For example, Tide, Nirma, Touch, etc.
- The brand name should be distinctive. For example, Indica, Lexus, etc.
- The brand name should be extendable. For example, Amazon.com.
After choosing the proper brand name, it must be protected. Firms have a goal of connecting their product category with their brand name. Brand names such as Kleenex, Levi’s, JELL-O, BAND-AID, etc., have succeeded in this way.
Step 3: Brand Sponsorship
Brand sponsorship is a form of advertising that involves the promotion of brands in exchange for some financial support. This type of arrangement is beneficial for both the parties, the manufacturer and the promoter. Brand sponsorships are considered one of the most effective ways of marketing. Brand sponsorship helps in boosting sales volume by promoting the brand to a larger audience. This activity complements the other marketing activities and works towards the betterment of relations with customers. The product may be sponsored as a national brand (or a manufacturer’s brand), as when Sony and Kellogg sell their output under their brand names (Sony Bravia HDTV or Kellogg’s Frosted Flakes). Or the manufacturer may sell their products to resellers to have a private brand for their product (also called a store brand or distributor brand).
Step 4: Brand Development
A company has four options when it comes to developing the brand. It can introduce new brands, multibrands, brand extensions, and line extensions.
- Line Extensions: Line extensions occur when a company extends existing brand names to new forms, colours, sizes, ingredients, flavours, etc. For example, Bata (one of the oldest footwear brands in most countries) has expanded its footwear line to include regular shoes, premium shoes, sports shoes, sandals, and socks.
- Brand Extensions: Brand extensions involve the expansion of a current brand name to modified products, generally in a new category. For example, Nestle has leveraged the strength of its Maggi brand to launch several new lines including Maggi Noodles, Maggi Tomato Ketchup, and Maggi Soups.
- Multibrands: Companies tend to introduce additional brands, in the same category only. For example, Hindustan Unilever markets different brands in their product categories.
- New Brands: A company might believe that the power of its existing brand name is declining and a new brand is needed. For example, Tata Motors created the separate Ace brand, targeted towards small transporters or those who have just started their business.