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Introduction Of Brand Management
Brand Management is an activity to plan and analyze how a brand is perceived in front of its customers as well as in the market. It requires companies to develop effective relationships with their target markets. It undertakes all the aspects about a firm's offerings like the offering itself, its appearance, price, packaging and so forth. The project below is based on Samsung, which is a multinational company with effective brand image in the market. The report covers an understanding on how a brand is built and managed overtime and analysis of how brands are organized in portfolios and brand hierarchies are built and managed. It also covers the evaluation of how brans are leveraged overtime domestically and internationally and techniques for measuring and managing brand value.
Brand is Power
A brand is referred to as a service, product or a concept that distinguish the offerings of a company from other products and services so that it could easily be marketed and communicated. Brand Equity is a term which is used to determine the perception of customers towards an offering of the company, i.e., a commercial value of products and services of an organisation by their brand names. Any company, functioning under any industry in order to build a strong brand name must effectively follow certain steps.
- Firstly, they must effectively determine target audiences, i.e., customers actually interested in buying their products.
- The next step requires them to determine their brand mission, which includes creation of mission statement which clearly defines their ideology.
- Companies then must effectively determine their competition, their activities as well as factors that differentiate them from other companies.
- After their detailed analysis, firms must create value propositions which requires them to determine the uniqueness, value and benefits of their products and services.
- The next step requires them to decide brand guidelines which undertake tone and strategy of their brand.
- The last step requires them to market their brands. Marketing Department plays a prominent role in creation of brand equity. They analyze the marketplace to determine the exact needs of customers and communicate the brand effectively to the customers. Most importantly, they acquire their feedbacks through which firms get an opportunity for strengthen brand equity.
In this era of tough competition and dynamism, it is very crucial for companies to effectively apply certain successful strategies to strengthen their brand equity. There are various companies in electronic and telecommunication industry which have applied such strategies that have effectively aided the purpose. One of the most prominent examples of companies that have adopted strategies for brand equity is Apple, Inc. The firm has effectively manage to retain its position as the most valuable brand quite recently with the growth of brand value up to 16% at $214.5bn (...). The firm has used various strategies that enabled it to gain such status and enhance its brand equity. However, according to …., there are various uncertainties and risks associated with these strategies.
- The most proTASK 1minent strategy used by Apple recently is innovation. The firm has been consistent in empowering customers who have a different ways of thinking and thus, it produces products and services that satisfy these unique demands of the customers. The most evident example of such product is AirPods, which are unique earphones by Apple that don't involve wires and work via Bluetooth. However, the risk in such a strategy is that if the firm fails to fulfil their innovative demands, they would shift their preference to another firm.
- Another strategy of the company to enhance their brand equity was its pricing strategy. Brand equity is quite influenced by the price of a firm's products or services. The firm is again consistent with its premium pricing policy for its new products in the market. This creates a perception of receiving a high value with its offerings. The firm, however, has experienced certain pitfalls from their pricing strategies. During mid-90's, the company's pricing strategy wasn't quite beneficial at that time and faced backlash (…). This remarks that the strategies used by companies must be effectively channelised to avoid any kind of risk that could serve the firm in a negative manner.
Above example clearly shows how important branding is for a company. Organisations can use various models to enhance their brand equity. One such model is Aaker's Brand Equity Model and the company that could effectively apply the same is Samsung. It is one of the biggest companies in telecommunication and electronic industries. The company has customers worldwide and this model could help it achieve utmost brand equity in the market. This model was developed by David Aaker and suggests that brand equity could be overviewed as an accumulation of brand loyalty, quality perceived and brand awareness which are also components of a successful brand strategy as per the model. This model describes how effectively brand management could begin with building up of brand identity. There are four major elements of Brand Identity which are mentioned below:
- Brand as a Product:This effectively deals with the scope, attributes, value and quality of firm's offerings.
- Brand as an Organisation:As a company, this element deals with attributes of the organisation, its local as well as global activities.
- Brand as a Person:According to the model, this element consists of personality of the brand as well as customer relationships.
- Brand as a Symbol:This element requires the brand to create effective visual and audio imagery as well as metaphorical symbols that appeal customer attention.
As for Samsung, this model could effectively be used by the organisation to create effective brand value in ways which is mentio