What factors are important in building brand value?
Several factors are crucial in building successful brands, as illustrated in the diagram
Quality is a vital
ingredient of a good brand. Remember the “core benefits” – the
things consumers expect. These must be delivered well, consistently. The branded
washing machine that leaks, or the training shoe that often falls apart when wet will
never develop brand equity.
Research confirms that, statistically, higher quality brands achieve a higher market
share and higher profitability that their inferior competitors. Positioning
Positioning is about the position a brand occupies in a market in the minds of
consumers. Strong brands have a clear, often unique position in the target market.
Positioning can be achieved through several means, including brand name, image,
service standards, product guarantees, packaging and the way in which it is
delivered. In fact, successful positioning usually requires a combination of these
Repositioning occurs when a brand tries to change its market position to reflect a
change in consumer’s tastes. This is often required when a brand has become tired,
perhaps because its original market has matured or has gone into decline.
The repositioning of the Lucozade brand from a sweet drink for children to a leading
sports drink is one example. Another would be the changing styles of entertainers
with aboveaverage longevity such as Kylie Minogue and Cliff Richard.
Communications also play a key role in building a successful brand. We suggested
that brand positioning is essentially about customer perceptions – with the objective
to build a clearly defined position in the minds of the target audience.
All elements of the promotional mix need to be used to develop and sustain customer
perceptions. Initially, th