Building strong brands

A value proposition is pivotal in driving consumer decisions and establishing the brand-customer relationship. It comprises three key elements: functional benefits, emotional benefits, and self-expressive benefits.

Functional benefits are the practical advantages a product offers, like Crest reducing cavities or 7-Eleven providing convenience. However, these alone may not sufficiently differentiate a brand as they can be easily replicated. Emotional benefits add depth, relating to how consumers feel when using the product. Brands like Coke and Volvo integrate emotional benefits, making consumers feel energetic or safe, respectively.

Brand positioning is a strategic approach that defines a brand's unique spot in the consumer's mind, distinguishing it from competitors. It encompasses the brand's value proposition, including tangible and emotional benefits. For example, Nike is known for its advanced technology in athletic performance.

Positioning targets specific consumer segments rather than a broad audience. Clinique, for instance, appeals to women who prefer a clinical approach to skincare. Active communication is key to shaping brand identity, as demonstrated by Subaru's focus on all-wheel drive to revive sales.

Achieving communications excellence is a complex task that demands creativity, the use of potent symbols and metaphors, and continuous testing. Creativity involves exploring uncharted territories to differentiate oneself, such as sponsoring unique events, creating communities around products, leveraging direct marketing, focusing on public relations, orchestrating bold publicity stunts, or revamping product packaging for visual impact. The more innovative the approach, the higher the potential impact.

Organizations often feel compelled to change their brand's identity or positioning, but building upon what works well is usually more effective than starting anew. Companies may believe their brand concept was flawed, the image is outdated, or it appeals to a limited audience. However, the benefits of brand consistency are significant, including market position ownership, strong consumer associations, and cost efficiencies.

Maintaining brand consistency is compelling, as altering an effective brand identity carries risks. New managers may want to make their mark by changing established elements, but brands should evolve in response to market changes carefully and judiciously to preserve built equity.

A brand system strategically manages different brand identities within an organization, ensuring each brand's role is clear and synergies are exploited without causing confusion. The driver brand is central to purchase decisions, offering the main value proposition, while endorser brands lend credibility, often being well-known corporate names. Strategic brands, though not currently major sales drivers, are considered crucial for future success and receive more resources. Subbrands differentiate products within a line, targeting specific segments and facilitating market extensions.

Leveraging a brand to create new assets is crucial for organizations, employing strategies like line extensions, brand stretching, brand extending, and co-branding. Line extensions introduce new versions of existing products, such as different flavors or packaging sizes, which can expand the customer base and block competitors if executed well.

Brand stretching involves moving a brand up or down market to target either the high-end segment with better margins or the value segment with affordability, often using sub-brands to mitigate risk to the brand's perceived quality. Extending a brand into new product categories can offer significant rewards by leveraging existing brand goodwill but risks confusion if the brand doesn't fit the new category.

Measuring brand equity is essential for understanding the value and strength of a brand in the market. David Aaker's emphasis on measurement as the foundation of good management underscores the importance of identifying and consistently tracking the most relevant brand equity factors over time. Customer loyalty and the willingness to pay a price premium are pivotal indicators across many consumer product categories. Metrics such as repeat purchase rates and willingness to recommend can illuminate loyalty, while controlled market experiments can help quantify price premiums. In other sectors, like ingredient brands, metrics around quality perceptions, awareness, and availability may be more critical.

For a brand building program to be successful, it's crucial to have clear leadership and a disciplined approach. Appointing a single brand manager or leader is essential for guidance and ensuring consistency across business functions. Various organizational models can effectively oversee brand identity and equity programs, including roles like brand manager, brand equity manager, range brand manager, global brand manager, CEO, brand champion, category manager, brand committee leader, or communications coordinator.

The brand manager model assigns full responsibility for the brand to one executive, focusing on the brand's identity, positioning, and consistent media usage. This model fosters focus but may neglect other business needs. A brand equity manager focuses on developing brand identity and equity, requiring close coordination with divisional managers for executing specific marketing tactics. The range brand manager oversees a brand covering multiple business lines, aiming for consistency while balancing competing priorities. In the global brand manager model, a senior executive manages global brand identity and strategy, with local managers adapting tactics for their markets.

Brand building is a strategic, long-term process that demands consistent effort and investment, even during economic downturns. David Aaker emphasizes that strong brands result from deliberate strategies and steadfast commitment. When facing financial challenges, companies might consider cutting back on brand investments. However, such periods offer unique opportunities to enhance brand value and competitive advantage. Competitors reducing their brand spending create openings for proactive organizations to strengthen their market position and customer relationships. Economic slumps, therefore, should be seen as times to intensify, not decrease, brand-building efforts, with the potential for significant long-term benefits.