How do I create a brand?
There are four effective steps in brand development strategy to create a brand:
Choose the brand name and logo
Establish the brand in the minds of customers
Develop the brand
What is brand equity?
Creating a brand is no different than starting your business. It takes time. Gradually you can create brand equity. Brand equity is the differential effect when consumers respond more positively to a brand than to a generic or unbranded version of the same product. When we think of buying a smartphone, the very first name that comes to mind is the iPhone. question why? It’s because of the convenience and authenticity that the iPhone offers to its users.
Apple, through its years of research and experience, has created, in our eyes, a state of ultimate luxury and comfort in using its products. There may be a few more similar products from others that can equal and be superior to the Apple iPhone, but the iPhone’s identity gives it an edge over others – no matter the price. This benefit is brand equity.
4 steps of brand development strategy
1. Select the brand name and logo:
When building a brand development strategy, the name plays a crucial role. A good name and style can contribute to the success of a product. It is the most difficult task to begin with. Simplicity is the first step. The name should be easy to pronounce, recognize and remember. In addition, it should suggest something about the benefits and qualities of the product.
Names like Google, Nike, Facebook, Apple, KFC etc. are among the most established brands worldwide. What is interesting about these names is that they can be easily translated into different languages around the world. Therefore, the meaning of a particular word should not mean anything bad, wrong or negative.
Again, the name should be expandable to cover multiple product lines. For example, Amazon.com started its book retail business and has now expanded into multiple product categories.
The brand name once chosen should also be protected. This means that in many cases brand names have been confused with product category and people cannot distinguish brand identity from product category.
For example, Xerox is a company that makes photocopiers, but making a photocopy is often referred to as copying. “Xerox” is pronounced as a noun and not as a verb. Many people find it difficult to distinguish between the product and the service, which ultimately affects the company’s brand name.
2. Establishing the brand in the minds of customers:
An interesting adage from a marketer: Products are made in the factory, but brands are made in the mind. This can be done in a number of ways. At the base level, it starts with introducing the product and its differentiators to the target customers.
Let’s take Amazon’s Kindle e-book reader as an example. Addressing its customers, Amazon says that it is an e-book reader that has the outstanding feature of reading books in a virtual format. At this stage they are simply introduced with the product and have a very low impact.
The more effective way a brand can be positioned by associating its name with desirable benefits. Thus, the Kindle is more than an e-book reader – it’s lightweight, a dictionary on the go, stores thousands of books that are easy to search, no glare and no distractions.
The strongest brands go beyond establishing traits and benefits in the minds of customers and position themselves on strong values and beliefs rooted in a deep emotional connection. Thus, reading books in Kindle is an absolute pleasure and presents itself as the new best friend of book lovers. When embedding a brand in human memory, the marketer should establish a mission for the brand and a vision of what the brand needs to be and do.
3. Brand sponsorship:
Brand sponsorship can be of three types:
Private Label Sponsorship
Licensed brand sponsorship
Private Label Sponsorship:
Behind the big brands that emerge are many ads and social marketing strategies at work, known as national brands. But for smaller businesses, it may not always be possible to support brands with huge outlays. In these scenarios, brand sponsorship is very important. Unlike National or Manufactory brands, there are private labels. Private label has been gaining more of the market in the last few decades. Here’s why?
Large malls like Big Bazaar, Walmart resale products at significant discount prices, especially the generic or no-name brands. They endorse the products citing their benefits or juxtapose the comparison with the top brands. The association of the major resellers with lesser-known products helps increase the brand value of the product that was once considered “no-name”.
Private label sponsorship is also pursued for online shopping. Recently, as we can see, small or lesser-known phone manufacturers are partnering with Amazon to sell their phones. In fact, this strategy works great as the “no-name” brands get the support of the big brand stores, be it online or offline.
Licensed Brand Sponsorship:
In this brand sponsorship, some companies buy the names and symbols of other manufacturers or creators for a fee and endorse their products under that brand name. This is common in the fashion industry like Calvin Klein, Tommy Hilfiger, Gucci, Armani, etc. where the companies use the names and initials of well-known fashion innovators. This type of branding turns out to be an added zing, but with a pinch in the bag.
As part of such a brand sponsorship strategy, two well-established brand names from different companies are used on the same product. Because each brand is dominant in a different category, the combined brands create broader consumer appeal and greater brand equity.
For example, Bajaj Allianz Life Insurance, where Bajaj is a dominant player in the automotive sector and Allianz is a major German financial services provider. Since Bajaj wants to enter the insurance sector and Allianz wants to enter the Indian market, they have jointly established a brand “Bajaj-Allianz” to harvest the fruits of the Indian insurance market.
Co-branding also comes with some limitations. Such relationships typically involve complex legal contracts and licenses. Co-branded partners must carefully coordinate their advertising, promotions and other marketing efforts. The responsibility lies with both partners to wear the co-brand with trust and dignity.
4. Develop brands:
In order to increase brand value, it is very important to prepare a brand development strategy that meets the changing business scenarios. There is no fixed rule to dictate.
A product’s brand name can be extended to an existing product line to accredit a new shape, colour, size, ingredient or flavor of an existing product. However, line extensions come with some risks. An overextended brand name can confuse the consumer or lose some of its specific meaning.
This happens when a current brand name is extended to a new or modified product in a new category. For example, Nestlé’s popular Maagi pasta brand has expanded to include tomato ketchup, pasta, soup, and more. Brand extension gives a new product instant recognition and faster adoption. But one should be careful about brand extension as it may confuse the image of the main brand.
Multi-branding provides a way to set up different features that appeal to different customer segments, secure more shelf space for resellers, and capture a larger market share.
For example, a well-known company sells several types of soft drinks under different brand names. These brands battle each other to dominate the market, and as a result they may individually have a smaller slice of the pie, but as a whole the company dominates the soft drink market. The big downside is that each brand has a small market share and may not be very profitable.
Brands are not created in a day or two; You should have patience to grow it. The points above suggest some best practices for building a brand, but the real test begins with practice. The brand development strategy differs from place to place, even urban branding and rural branding are very different in their practical application. Remember that behind a successful brand development strategy is a lot of effort, a clear vision and most importantly, an uncompromising product or service quality.