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Branding, with time, may have changed in form but elements of branding remain unchanged. Though branding is an enticing act for most marketers and consumers to associate certain positive, and exciting feelings with the process of brand management, there is a difference between the participation level of employees and customers. For the customer, it is an act of excitement and fun, which is done for awareness development. But for marketers, the same branding exercise means not only advertising and awareness development, but also strengthening the internal as well as the external core of brand.
Branding as an exercise is influenced by external and internal environments. The business functions, viz., marketing, sales, finance, production, research & development, and personnel have a definite role to play in brand-building exercise. Moreover, these functions are inter-dependent and intrinsically linked with one another for better functioning of business. The other set, which constitutes the external environment, comprises customers, competitors, advertising and public relation agencies, and distribution channels.
A company can develop power brands by maintaining a right balance between the external and internal environments. Bringing this balance helps brand create value through consistent positive quality delivery and its offerings, which satisfy customers and makes them opt for the brand regularly. At the other end, it also helps build a strong marketshare, maintain good price levels and generate strong cash flows. Companies like Coca-Cola, Microsoft, Intel, Nokia, Levi’s, Gillette, Disney, GE, American Express and Sony enjoy power brand status. These brands realized long back that brand management, as a function, has crossed the boundaries of marketing, penetrating into all other functions of business operations. They have also realized that the success of their business is mostly based on the success of their brands. They are experiencing brand-based business model. Sam Hill and Chris Lederer, associates of Booz-Allen & Hamilton, advocate that the next decade might see the brand-based business models becoming the dominant corporate norm. To develop a brand-based business, companies have to focus on a strong brand portfolio rather than an individual brand. To develop a portfolio of brands, it is required to classify brands of company into three groups: lead brand, strategic brand, and support brand. The lead brand is the center of brand portfolio – it carries most of the burden of the company’s sales and pulls customer to company’s product. The strategic brand lures new users to the brand portfolio. The support brands pull those customers who are on the fence, into the company’s product.
The key to the success of brand portfolio management is to think of brands as an asset and to measure the risk and return of brand. Moreover, developing a brand portfolio in this ever-dynamic business environment is not enough. Companies for sustained growth also need to convert their brand into Masterbrand, which helps create strong relationship with customers, provide direction to the employees, offer value proposition backed by entire company, help company erect greater barrier to entry, and infuse ability to innovate and change. Masterbrand also explains why a strong brand should reflect the organizational values, culture and strategy, which is very much reflected in branding strategy of global Masterbrand like American Express, AT&T, IBM, Samsung, and Sony. |
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