Brand development is an improving process between a brand and a consumer.

Importance of Brand Development

• Managing the company leads to success and more developed

• Nurturing the brands will remain successful in facing competition

• Adopting right strategy enhances your brand

• Proper branding helps your customers identify your brand

• Creating positivity to your brand build trust to your customers

Example

In its earlier days, Coca-cola was a strong believer of the 3As brand development strategy – Affordability, Availability and Acceptability. The strategy worked well for them, making Coca-cola one of the most recognisable consumer brands. However with changes in consumer mindset and increased competition, Coca-cola found the need to refocus its brand development strategy on the 3Ps – Price Value, Preference and Pervasive Penetration. Today, Coca-cola remains a global leader in the beverage industry.

Tip

There are many activities that your company can embark on to develop your brand. You can run an advertisement campaign, create a website, print corporate materials or develop a more professional approach to building relationships. Remember that you need to manage consumer perceptions while communicating your brand. There must be consistency in the delivery of your brand message to create a holistic consumer experience. You need to constantly drive the message across to consumers that you are better than your competitors so that they can identify you, associate with you and remember you.

A strong brand is important to consumers that impact both internal and external.

Strong Branding

• Saving time to research and choose your products

• Recognising your brand will help consumers to purchase without hassle

• Quality and reliable branding reduce risk to consumers in buying

• Reflects your consumers personal values will connect and identify your products

Example

• When Apple launched the iPhone with no track record in telecommunication, consumers trusted the Apple brand and believed that they would be able to deliver the same quality they had experienced in the iPod.

• The Body Shop is a popular brand amongst consumers who are concerned about environmental and social issues because the brand represents values they personally hold.

Tip

Trust in the brand plays an even bigger role in the purchase of an industrial product, as the value and risk involved are much higher. A plant manager would not risk his company’s reputation or his own by buying equipment and parts from a company that he does not trust.

Perceived risk refers to the customer’s perception associated with any purchase decision might potential or loss.

Types of perceived risks

• Functional risk: a product not performing

• Physical risk: for safety issues and health

• Financial risk: perceiving value of a product

• Social risk: causing customers credibility

• Psychological risk: affects well-being

• Time risk: time management

Example

Purchasing products that are expensive such as houses or cars or products that are complex and have many features such as Computers or laptops.

Tip

When buying products that have a higher perceived risk, Consumers often consult experts, family or friends about the product and then make their decision. A common observation is that for products with high perceived risks, a majority of consumers tend to favor the market leader – which already has a good review.

Step 1: Brand Positioning

• Consumers will able to identify your brand

• Associate the set of values of your brand descriptions

• Know your potential customers

• Identify your competitors

• Performance of your products

Example

When the highly anticipated iPhone 4 was released on 24 June 2010, hundreds of thousands of customers queued up to be one of the first to get their hands on one of them. In just 3 days, an estimated 1.7 million units were sold.

Subsequently, issues with the phone started to surface – ranging from reception issues to display discoloration on its fragile casing. However, demand for iPhone 4 remained strong and 3 million units were sold in just 3 weeks.

Step 2: Communicate your Brand

• Brand Value: firm information about your products

• Brand Message: consistent attitude and clear perception to your consumers

• Brand Recognition: strong association to a certain product category

Example

Nokia uses “Connecting People” to tell people that they facilitate human communication, rather than just manufacture mobile phones. Increase the familiarity of your brand through repeated exposure.

Step 3: Build Confidence

• Product Reliability: perform functions consistently

• Product Durability: withstand wear and tear for long time

• Product Serviceability: servicing and repairing your products

• Service Effectiveness: serving customer properly

• Service Efficiency: serving customer effectively

Example

If your brand stands for quality, make sure that consumers are able to see or at least perceive quality in your products. Always live up to your brand promise to create and maintain positive consumer perceptions.

Step 4: Establish Connection

• Brand Association: refers to anything that connect and develop consumers perception to your brand.

• Brand Image: refers to the total impression created in your brand to its functional and emotional associations.

• Style and design: refers to components of your brand image, design and presentation of your brand.

• Brand personality: refers to personality traits and characteristics assigned to a brand for differentiation.

Example

Sincerity: Toyota, Hallmark, Coke

Excitement: Pepsi, Porsche

Competence: Volvo, Hewlett-Packard

Sophistication: Lexus, Mercedes, Chanel

Ruggedness: Timberland, Harley-Davidson

Step 5: Internal Branding

• Understand your brand

• LIve up to your brand promise

• Support your brand

• Be patient with the brand

• Manage your brand properly at all times

Example

In Feb 2008, Starbucks closed its 7,100 shops across America for 3 hours to conduct staff training on brewing “the perfect coffee” and transforming customer experience. It reflected on Starbucks’ strong commitment in helping all 135,000 employees live the Starbucks brand and in equipping them to live up to the brand promise. This unwavering dedication to live up to their customers’ expectations is vital to Starbucks’ success.

Step 6: Create Brand Loyalty

• Increase customers value of your product

• Customers satisfaction

• Building confidence in your brand

• Gain customers trust

• Connect with your customers

• Reward customers

Example

Today a few great and charismatic brands run far ahead of the pack. These brands build on respect, but they also make crucial emotional connections. They are products, services or entities that inspire loyalty beyond reason – people love and fiercely protect them.

Kevin Roberts, CEO Worldwide of Saatchi & Saatchi, calls them Lovemarks. You can Google his blog to find out more.

The Tesco Clubcard

In the mid 1990s, Tesco held a distant second place in the British grocery market, trailing far behind Sainsbury’s. Then in 1995, Tesco launched a customer loyalty program – the Tesco’s Clubcard, which allowed customers to earn points to exchange for cash vouchers. It went on to become their distinct competitive edge. Within 5 years of the launch, sales increased by 50% and by the 10th year, Tesco had 10 million registered loyalty program users. Today, Tesco is the number one player in the market with its share doubling that of its closest competitor.