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What
is brand creation?
Brand creation is
the birth of a strong brand, which reminds the user
not only about the product but also the manufacturer.
In today's era when more and more new companies are
coming up with new and innovative products it is evident
that those with strong brands will survive through thick
and thin of thus competition.
In today's environment,
building strong brands is becoming more and more challenging.
Increased pressures to compete on price, increased competition
through product introductions and store brands, and
the fragmentation of advertising and market segments
are just a sample of the pressures being faced by companies
in today's highly competitive environment.
To quote some hard
facts over 21,000 new brands were introduced worldwide
in 1995 alone, yet history tells us that better than
90% of them disappeared from the shelf a year later.
Why such a high failure rate and why has this been a
historical trend? The development of a successful brand
- which includes the product, the package, the product's
name and identity - is a challenging, but not insurmountable
task. The likelihood for success can be greatly enhanced
if one focuses on certain critical issues.
Brand creation does
not end at forming a brand but at forming an identity
of the products, brand awareness and brand loyalty.
Why brand creation?
Throughout the 1980's
and 90's, there has been a growing corporate emphasis
on increasing shareholder value (i.e. making the stock
price rise). Typical headline-grabbing stories of these
decades have included waves of layoffs, corporate restructuring
and an emphasis on operating efficiencies. In today's
shortsighted environment, the only concern the CEO is
expected to have is how to keep the company growing,
retain the loyal following of the investment community,
and keep shareholders happy ?
One solution is to
create and establish the brand. This serves to build
consumer and investor confidence and loyalty to the
company. A strong brand acts as a promise, leading faithful
customers to pay a premium over competitive products.
Clear brand definition and proper execution and implementation
of that definition can lead to success and longevity
in the market. Likewise, the stocks of highly reputable
companies trade at premiums to others in their respective
industries.
Today branding is
such a strong force that anything from salt to lemon
juice and water is branded. The following are the advantages
of branding to a seller:
- Branding makes it
easier for the seller to process orders and track down
problems.
- Brand name and trademark provides legal protection of
unique product features.
- It provides an opportunity to attract a loyal and profitable
set of customers.
- It helps the seller to segment markets.
- Finally, strong markets help build a corporate image
and makes launch of new products easier.
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