Question

In the context of Branding Strategy and building Strong Brands:

Define brand equity and discuss the major brand strategy decisions. Give examples for each element and include diagram(s) when needed.

Answer 1

Brand equity can be seen as a common phrase that is used in the marketing in order to address the perceived worth or importance of a brand in and of itself that means it is the estimation of the social value of the well-known brand name

Brand strategy decision= There are a number of decisions that are to be made by the marketer to popularize the given brand which is called brand strategy decision

These decisions are as below=

1.) Brand positioning:- There are three main methods that can be used by the marketer to create the image of the brand

i)        Attribute: In this method, the attributes of the products are used in order to create the image and positioning of the product. Example=Pears face wash focuses on the cleaning of the face.

ii)   Benefit: Here the benefits received from the products are highlighted. For example= Dove makes the skill softer

iii) Beliefs and values: The strong image of the brand can be developed in the mind of the customers through strong belief. Example- Dove soap makes your skin softer that can attract others

2.) Brand name selection:- The selection of the brand name is quite important for any company. It must be decided after having a detailed analysis of the product, target market, and the benefits of the product.

Individual brand name = The company uses a different brand name than any other product in its product line. Example= Lux,.

Family or umbrella brand name = The company uses the family brand to brand the other products. Example= Cadbury

Company brand name Here the company uses the name of the company itself with the product. For Example- Coca-Cola diet

3.) Brand sponsorship:- This decision involved the mediums of selling the product

i) Manufacturer’s brand: The company can have the same brand as that of the producer. Example= Honda City

ii) Private brand: Here the producer gives the product to the seller who can give its own private brand name. Example- Brands used in Wal-Mart

iii) License brand: Here the producer provides the authority to use its own brand. Example= Reid & Taylor, John player etc.

iv) Co-branding: Here two major brands come together to form a new brand.

4.) Brand development:-The brand can be developed by the following methods=

i) Line extension: here the current product line is used to introduce the new brand. Example=Colgate total, Colgate gel, Colgate active.

ii) Brand extension: here the successful brand is used to extend the product line. Example= Cadbury silk. Cadbury bubble

iii) Product flanking: Here the products are sold at a different price, different package size. Example= Maggie noodles in small, medium, and family packs.

iv) Multi-brand: here the same product line is used to launch the new brand. Example- Unilever uses the brand such as Dove, Lux in bathing soap