The future of a brand is affected by several impending factors.Let us examine these factors under five categories.
Manufacturer
Brand objectives must be communicated to all in the organisation. Organisational culture (OC ) and brand must match each other. Distinctive competence must be utilised to contribute to brand planning. Swatch uses its distinctive competence of design and production to satisfy the need of novelty watches of its fashion conscious consumers.
Organisations may decide to cut costs. But it should be seen whether the market is mature enough to put a product on par with the competitor but at a reduced price. If yes, then all aspects of the organisations value chain must be geared to cost reduction, e.g. operational efficiency by longer production runs, compact product mix, avoiding C class customers who contribute marginally, eliminating operational inefficiencies etc. It is to be seen whether the brand name can be leverged by charging a premium. The unique charactertic could be high quality, innovative production process, exceptionally good customer service, acclaimed advertising etc. When consumers expect a brand to deliver clear benefits, all the departments in the organisation must work harmoniously to maintain these benefits, e.g. helpful customer support executives on phone lines, the promptness in answering a query, the cleanliness of transportation etc. Sometimes an inherent added value is diminished by a link in the value chain — sale of quality insurance from a shabby office.
Organisational staff should have beliefs, values and attitudes conducive to brand success. Organisational culture must contribute to the brand’s mission.
Distributors
Brand strategy and distribution are related to each other. Distribution support is a pre-requisite for brand success. Each retailer has his own objectives. Manufacturer chooses those retailers whose objectives match his own objectives. Manufacturer must assess the strengths and weaknesses of each distributor. Retailer power is on the rise. It affects the bargainning power of manufacturers producing weaker brands. Retailers deal with manufacturers on their own terms. This undermines the well-being of manufacturer’s brands. Manufacturers must assess distributorwise sales proportion of their brands.Such analysis shows the respective strengths of the distributors. We have to see the synergy between our brand and the distributor outlet.
We have to assess the appropriateness of distributors for each brand. We have to consider what support must be given to the distributors. As shelf-space is limited,while introducing new products, research is necessary at the level of trade, apart from consumer research. A triangular design may be acceptable to the consumers, but retailers may resent it on account of stacking problems.
Consumers
Buying process, in essence, is a problem solving exercise for the consumers. A problem may be identified, say a proposed summer holiday. We then seek information through, travel literature and visit to a travel agent. We evaluate the information, say assessing three different destinations, and make a decision by selecting one of them through the travel agent. The process can vary depending upon the product, the buyer characteristics and experience. But this process is worked out for brand selection. Though someone may select the brand, someone else may use it. Marketers have thus to appeal to both the users and buyers. In industrial marketing, several individuals may be involved in buying. Marketers develop brand strategy in such a way that the benefits get communicated to each target group in a relevant fashion.
Brands minimize consumer search for information and evaluation. Brands bring to our memory a whole lot of relevant information. Consumers should be exposed to high quality bits of information. Surfeit of information causes confusion.
In the buying process, a brand plays a role at each stage. A business meeting calls for formal dress which tends to reduce the risk. In other situation, a Gucci Watch can make a life-style statement.
Competition
Brands are always compared to the competitive brands. But prior to this, it is necessary to identify our key competitors.Consumers can be asked to assess competitive brands which are similar to our brand. Once competitors are identified, their brand objectives and strategies must be studied.Previous experience may be a guide but we must also anticipate competitive response.
Returns are based on market share. The bigger the market share, the bigger the returns. Strong brands give us a better market share.
A brand leader becomes aggressive when assaulted by rival brands. Leader loss price is followed by a longer firm with a good portfolio. Loss leader underprices the small-time competitor. Later the prices are increased by the brand leader when competition falls off the way.
Brand strategy is ingrained into company’s plan in anticipation of competitive response.