Tuesday, July 24, 2007

Managing Brand system

Managing brand is the very strategic and grueling task. Deciding whether to introduce a new brand name involves gauging the trade-off between the value that the brand might create and the cost that it might incur. Any organization must explore on the following questions before doing so:
1. Is the brand sufficient different to merit a new name?
2. Will a new name really add value?
3. Will an existing brand be placed at risk if it is used on a new product?
4. Will the business support a new brand name?

A house of brands is like a family and each needs a role and a relationship to others. The brand role can be described as:

Driver Roles: A driver brand is a brand that drives the purchase decision; its identity represents what the customer primarily expects to receive from the purchase. The brand that plays the driver role represents the value proposition that is central to the purchase decision and use experience.

Endorser role: In the endorser role, a brand provides support and credibility to the driver brand’s claims.

Strategic brands: It is very important for the future performance of the organization. There are two main reasons why the brands are considered as strategic, first is it represents a meaningful quantity of sales and profits in the future and the brand could also be a linchpin of other businesses or of a future vision of the firm.

Subbrand roles: A subbrand is a brand that distinguishes a part of the product line within the brand system. The subbrand should be consistent with and support the parent brand’s identity.

Branding benefits: The problem facing many brands is that their identity is difficult to communicate because it lacks distinctiveness, credibility, or memorability. The solution for these lies in branding features, components or service programs that provide customer benefits.

Silver bullets: A silver bullet is a subbrand or branded benefit that is employed as a vehicle for changing or supporting the brand image of a parent brand.

1 comment:

Prabal Aggarwal said...

Sexy article man
So wat i can infer from this article is that brand is very critical strategical asset and tool for the company. But at the same time, we can't show its value on the balance sheet. So i think it should be coming under the good will asset. Am i right? if i m then can you throw some light on world's biggest brand sales.

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