Brand Building Case Study

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Designing, developing and achieving successful brands are perhaps the most difficult tasks a marketing professional will ever incur. The importance in building brands includes the answer to the question that a brand manager shall implement - “Know Before You Start” - at every moment. The challenge of developing a brand model for SMEs is easier to observe at all the opportunities that arise and to “filter effectively” all the different approaches and factors that affect the brand equity. In most articles the challenges are not presented from the perspective of SMEs, therefore some of them will be more important than others for this purpose. These challenges (or obstacles) are mentioned in this paragraph to have insight about them and to give…show more content…
Aaker (1996) describe eight factors that make the brand building process hard to implement successfully. For a brand there are many pitfalls that have to watch out for. These factors are described further below. Pressures to compete on price In today’s economy strong retailers are leading for price competition on many products. For the consumers it feels like an industry norm. Aaker (1996) claims that private-label brands are very limited to low-quality and low-price products a decade ago. Nowadays, retailers became continent for this and beside the so-called price brands at the same time they created a private-label brands to reclaim higher price (i.e. Monoprix and “Monoprix gourmand”). The difference is that now the costs can be divided over hundreds of products that increase even more pressure on prices. Proliferation of competitors This factor points to the face of increasing numbers of competitors. An increase in the numbers of competitors leads to decrease in possibilities to communicate a unique identity. This forces companies to position their brands more narrowly and target a smaller market. Further, new and desperate competitors get more motivated to take more risky approaches or to copy what has been successful in the past. This trend can result in a destabilization of competitive…show more content…
The relationships between the brand and its sub-brands must be clear both strategically and with respect to customer perceptions. Bias toward changing strategies A common problem with branding is that internal pressure is so high to build identity that the brand never reaches its potential. Aaker (1996) mentioned the Marlboro and Volvo as perfect models for brand that have chosen a clear identity and kept it. Organizational bias against innovation Often companies with a successful brand can be so satisfied with their past and current success that leads managers to become risk averse. This is a big risk to take since competitors not enjoying the same success constantly try to innovate and become competitive. Pressure to invest elsewhere Another pitfall for companies handling successful brands is that they tend to cut down on investments in the brand in order to support new business diversification. The brand most often suffers more than the company gains from their effort to diversify and the overall outcome is negative. Pressures for short-term

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