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Why Is It Worthwhile? ---The strategies of Branding the Product
1
Why Is It Worthwhile?
---The strategies of Branding the Product.
Betty Ho(何佩憬)
Class 201
National Hsinchu Girls’ Senior High School
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Why Is It Worthwhile? ---The strategies of Branding the Product
2
I. Introduction
In early days, most of the corporations and business companies in Taiwan
didn’t care much about setting up their own name brands while the enterprises in
other countries, mostly the western countries, were making every effort and
grabbed every chance to introduce their own name brands to the world. For
example, now people all over the world think of Coca Cola when they want to get
a soda to drink, which is a clear proof that what they did in the past decades has
a lot to show for it. Being aware of the value of a well-known name brand and the
considerable profit it can make, more and more corporations and business
companies in Taiwan are putting emphasis on establishing name brands and
making them well known to people. Therefore, in addition to the production of
goods, how to popularize one’s own name brand, or marketing, is also becoming
the major concern for many businesses. Just as what Philip Kotler said in Kotler
on Marketing “In the coming decade marketing will be reengineered from A to Z.
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Why Is It Worthwhile? ---The strategies of Branding the Product
3
There is little doubt that markets and marketing will operate on quite different
principles in the early years of the twenty-first century.”1
In order to gain more profit, a company should understand the fascination,
power and effect of a successful name brand. Why do people like it? How can it
influence a company? Why is it so worthwhile? These are what many
entrepreneurs are intently discussing now. They know very well that the next few
decades will be the era of name brands. The one who succeeds in setting up a
well-known name brand with high popularity will turn out to be the winner.
However, to establish one’s own name brand is never an easy task. It takes
efforts and sharp insight. This essay is going to discuss the various strategies to
do it successfully.
II.Thesis
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Why Is It Worthwhile? ---The strategies of Branding the Product
4
1. The definition of brand and branding
In the book Marketing Management, Philip Kotler defined “brand” as “a name,
term, design, symbol, or any other feature that identifies one seller's goods or
service as distinct from those of other sellers.” But the definition published by
Philip Kolter was thought to be a more traditional view on the word “Brand”2.
Then in 1998, three American management consultants, Sam Hill, Jack
McGrath and Sandeep Dayal, defined “branding” as “creating a mutually
acknowledged relationship between the supplier and buyer that transcends
isolated transactions or specific individuals. This is an admittedly difficult task.
But those organizations that have successfully adopted this approach have
achieved superior and sustainable share and price premiums, even in the most
adverse of markets. ”3
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Why Is It Worthwhile? ---The strategies of Branding the Product
5
Indeed, different people may have different ideas about “brands” or
“branding”, but the most appropriate definition might be from Wikipedia, “Brands
were originally developed as labels of ownership: name, term, design, and
symbol. However, today it is what they do for people that matters much more,
how they reflect and engage them, how they define their aspiration and enable
them to do more. Powerful brands can drive success in competitive and financial
markets, and indeed become the organization’s most valuable assets.”4
2. More than just a product
Nowadays, there are more and more options for consumers in the
marketplace. Take the toothpaste for example; a consumer in the supermarket
will have more than ten different brands of toothpaste to choose from, and now
comes the question---which one will the consumer choose? Why does he choose
it? The reasons may be the advertisement he recently saw on TV, the suggestion
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Why Is It Worthwhile? ---The strategies of Branding the Product
6
from one of his friends, or even simply the appearance of the merchandise.
Anyway, a consumer tends to choose the product that he trusts, he knows, and
the one that he has some knowledge about. In other words, a consumer’s
impressions of the product play a very important role in the consumer’s decision.
It also means that without a well-known brand name, a company can hardly
make profit from a product even though it has high quality.
3. What is in a name?
A name brand contains many elements; among them, the concept is the
most important. We may even say that the concept is the spirit and soul of a
name brand. It is a promise, an agreement between the supplier and the
consumers, which helps to make people understand your product, and then trust
in it, thinking it is different from all the other competitors. The concept will be
reflected in the appearance and characteristics of a product. Even the person
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7
who endorses the product will have to fit in with the concept. With only one of
these failing to meet the standard, everything will be ruined, and the promise is
broken. In other words, the concept means everything. To build the concept of a
name brand, a lot of things have to be taken unto consideration, such as
consumers’ values, the trend of the market, the major rivals’ strategies, and the
capability of the company. After the concept is built, it still needs to be examined
and checked strictly and constantly to make sure nothing that is not in accord
with the concept exists. In short, a company has to build a concept for its name
brand, and then stick to it.
4. Branding
There are many factors that can make a name brand more remarkable than
others. We may even say that a successful name brand will never be complete
without any of these factors. When a company is trying to make its brand name
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Why Is It Worthwhile? ---The strategies of Branding the Product
8
well-known to people, the first step is to have an understanding of humanity. All
the strategies should be based on the concept of the product and then take
humanity into consideration. These strategies can be put into six categories.
4.1 Visual strategy
People are easily influenced by their impressions of a product when they are
shopping. Therefore, it is necessary for the product to have eye-catching
appearance so that the consumers can notice it easily. In addition to an attractive
look, a well-designed logo and front of the product are also essential. What’s
more, a spokesperson that suits the concept of the name brand is required. It can
be a fictitious character, which has its own personality and can be identified with
by the consumers. The advantage of a fictitious character is that, in contrast with
a real person, it won’t change as time passes by. The main purpose of visual
strategy is to arouse in consumers a special feeling for your name brand. That is,
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Why Is It Worthwhile? ---The strategies of Branding the Product
9
a good visual strategy should be able to make a deep impression on the potential
consumers.
4.2 Aural strategy
Through the advertisement on television, people can get the message of a
name brand easily, so having an exclusive theme song and slogan is necessary.
A commercial slogan should fit your concept and convey the features of your
product to the viewers. This will not only make your advertisement more effective
but also make the consumers choose your product over the other competitors.
4.3 Branding through the Internet
Nowadays, everything is on the Internet. By using the new technology, all
the information can be spread in a click, so can the advertisement of a name
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Why Is It Worthwhile? ---The strategies of Branding the Product
10
brand. What’s more, providing service through the Internet has become another
trend now. Therefore, setting up a website is increasingly important for a
company. In this way, the consumers can make their comments on the product
immediately on the Internet, which makes branding even faster and more
convenient.
4.4 Public recognition
Besides one-way broadcast advertising, a name brand needs public
recognition as well. The public recognition can be in the form of an interview from
a famous magazine or praise from one of your consumers. Sometimes they will
be more convincing than a boastful advertisement. So if a name brand wants to
expand its market, it should grasp the mechanism of public recognition.
According to Everett M. Rogers in his 1962 book, Diffusion of Innovations, the
most influencetial channel to popularize a new product and convey the concept
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Why Is It Worthwhile? ---The strategies of Branding the Product
11
of the brand to the society “ was not from some broadcast medium, but down an
echelon of levels, from a small number of "early adopters" to a larger number of
"secondary adopters", and from them to "tertiary adopters", then to "quaternary
adopters", etc. There was also lateral influence within each level. Broadcast
messages could reinforce the propagation from one adopter level down to the
next, but lower levels are unlikely to respond until the level above them has
adopted. It found that people were more likely to adopt, or even consider
adopting, if people they know and respect have adopted. Imitation is the
strongest influence channel. Therefore, the most effective marketing strategy is
to first sell to the early adopters, and then reinforce the diffusion to each
successive level, but not to waste resources on trying to reach any given level
before it is ready for it.” 5
4.5 The involvement in public welfare
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12
Involvement in public welfare can enhance the image of a name brand. A
public-minded enterprise will make a better impression on consumers than
enterprises that only care about profit. Generally speaking, people will not
support an enterprise or its name brand if it doesn’t do anything for the society. It
is believed that nowadays if an enterprise wants to be long conducting, showing
concern for public welfare is a must. In Europe, how deeply an enterprise is
involved in public welfare can even influence the price of its stock. So we can say
that doing public welfare is not only a good way to repay society but a good way
to gain public attention.
4.6 The development and innovation
No matter how popular a name brand is now, it will become out of date
without innovation and further development. It has to keep introducing something
new to its consumers. One of the good examples is Swatch, “From 1970s to
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13
1983, swiss watch manufacturers failed one after another, their market share
declined from 30% to 9%, while Japanese watches kept prospering. At that time,
it was Swatch that saved swiss watches from breaking down. It changed the
high-class images of Swiss watches into a young and fashion one, which is a
great example of business transformation. Since then, Swiss watches have
started to get its position back. ”6 The strategy that Swatch has adopted to
maintain its popularity is to keeping introducing new designs to the market. But
what matters most is that all the development and innovation should be in accord
with the concept. A name brand that changes its image and concept will make
consumers confused, and then lose their support.
5. The crisis
The odds will not always be in favor of a name brand. When faced with
business difficulties, the first thing for a company to do should be to find out the
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14
reason why your consumers are not satisfied. Following are two main reasons
that may cause a name brand to fall into disfavor with its consumers.
5.1 The product that is not in accord with the concept
When introducing a new product to the market, a company can hardly
predict the reaction from consumers. Even a very popular name brand can
encounter an unexpected problem. For instance, “In 1985, Coca Cola
announced to the world that they were going to replace their old formula with a
new one. At first, consumers’ reactions were quite good. However, they were
soon followed by suspicion and criticism. In contrast, Coca Cola’s long-standing
rival, Pepsi, grabbed the chance to strike Coca Cola. The event has still had
some effect on Coca Cola until now.”7 When faced with a problem like that, a
company has to stop producing the new product immediately.
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15
In fact, Coca Cola is not the only company that has been in a crisis. Before
introducing a new product to the market, a company should examine its product
carefully to make sure it is in accord with the concept of the brand.
5.2 The boredom
Another reason that causes a name brand to fail is boredom. Even though
consumers’ comments are quiet good today, nobody can guarantee that they will
still love this name brand tomorrow. Once consumers’ preference changes, the
company has to make some switches immediately. If consumers think a name
brand is out of date and does not meet their expectations, they may stop buying
its products.
6. Ways to maintain the popularity of a name brand.
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6.1 The precautions
A company has to understand why its consumers are not satisfied with the
products. However, the surprising thing is that “Although they are not satisfied,
only 50% of the consumers will make a formal complaint to the company, so if
there is one consumer complaining, that means actually there are twenty
consumers feeling unsatisfied.”8 What’s more, “An unsatisfied consumer is going
to tell other 15 people about his feeling on average!”9 However, if a company can
find some ways to cope with the difficulty, the image of the name brand may
become stronger and better than before. No matter what kind of difficult situation
a company is in, it should never give up. On the other hand, when the company
is prospering, it should not forget that pride comes before a fall; it still has to work
hard.
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17
6.2 Always making consumers satisfied
Consumers’ comments and requests must always be given the top priority.
Through consumers’ comments, a company can get a good idea of how
consumers think of the product. No matter how much marketing share a
company has, if it does not care about people’s opinions and the world trend, it
will lose its competitive strength sooner or later. Making every consumer satisfied
is much more important than getting a large number of new consumers in great
haste.
Besides, even though sometimes consumers’ requests may sound
unreasonable, remember the golden rule in the market, “The consumers are
always right.” Although it may not be easy to practice the rule at the moment, a
company should still try its best to keep the consumers satisfied. If the company
doesn’t do it, its rivals certainly will. If a company chooses to ignore its
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18
consumers’ request, it will lose its entire share of the market one day.
6.3 The special treat for regular customers
When people have long been supporting the products of a name brand but
do not get any “feedback” from the supplier, they will gradually lose their interest
in the product. That’s why the company should hold some activities to repay its
regular customers and make them feel privileged. These activities should be
aimed at the consumers that can help you make the most profit while providing
them with the best service. They can be some special service or treat that can
help you sell more or show your appreciation for their long support.
6.4 Expanding the name brand
Many companies will develop their own sub-brands so that they can expand
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19
their market at less risk. And when the sub-brand fails, it will not cause direct
harm to the main brand. Take the Procter & Gamble (P&G) for example, people
may not have heard of P&G, but everybody knows its sub-brands, such as
Pantene, Head &Shoulder (H&S), Olay, etc. 10 P&G not only managed to sell new
products in the market by building up new sub-brands but also put emphasis on
listening to consumers’ comments and getting more involved in public welfare,
which is a very successful strategy. What’s more, with a sub-brand, a fashion
company can even start to run food products business. From this, we can
conclude that developing sub-brands is also a good way for a company to make
more profit. Sometimes a company will even develop a sub-brand with low-priced
products in order to beat its rivals. Even though the sub-brand will cause harm
not only to its competitors but also to itself, a company will still do it to achieve
the goal of protecting the main brand.
7. About fakes
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Once a name brand becomes popular, there will be some other companies
that want to imitate it. It is very difficult to prevent and stop this from happening.
When facing this problem, a company should be more forgiving. People will not
imitate a name brand with poor popularity; it can be regarded as a kind of
compliment. In fact, a name brand should even be worried if there is no one
imitating its product. A name brand that always creates new products and leads
all the other name brands does not need to worry too much. After all, the moment
the fakes appear, they have already got out of date since by that time the original
name brand will have already created something even better.
III. Conclusion
We may conclude from the above essay that the true value of a name brand
lies in its concept, and the concept of a name brand should be based on what
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21
consumers need, namely, the humanity. Setting up a great name brand with a
fine concept can help a company make more profit. There are many ways to
introduce a company’s name brand to the consumers, and with those branding
strategies, its name brand can be more remarkable than its rivals’. A successful
name brand can build a strong bond between the supplier and its customers. Of
course, this is never an easy task. What’s more, there are various reasons that
may lead a name brand to a setback as we just mentioned above. But if a
company always cares about consumers’ needs and keeps up with the trend of
the world, the image of the name brand will be improved, and the name brand
may overcome the difficulties faster. A company can also take some precautions
before a problem really happens.
To sum up, branding may take lots of patience and efforts, but with sharp
insight and bright strategies, a company can catch up with the world trend and
stay prosperous in the era of name brand.
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22
IV. References
1. Kotler, Philip Kotler on Marketing, 1999 all about branding.com
http://www.allaboutbranding.com/index.lasso?article=113 “
The Ultimate Book of Business Brands: Insights from the world’s 50 greatest
brands Des Dearlove, Stuart Crainer,1999 2008/01/25
2. Kotler, Philip Marketing Management, Pearson Education, 2006
3. strategy+business http://www.strategy-business.com/press/16635507/16333
2007/01/25
4. Wikipedia http://en.wikipedia.org/wiki/Brand 2008/01/14
5. Wikipedia http://en.wikipedia.org/wiki/Diffusion_of_innovations 2008/02/25
6. 《黃金品牌成功術》,蘇西亞譯 Des Dearlove& Stuart Crainer著,The ultimate
book of business brands: insights from the world’s 50 greatest brands by 初
版 台北市:時報文化 1999年 p.41, 42
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23
7. 《黃金品牌成功術》蘇西亞譯 Des Dearlove& Stuart Crainer著,The ultimate
book of business brands: insights from the world’s 50 greatest brands台北市:
時報文化 1999年初版 p.109, 110
8. 《正太的黃金御飯團》陳惠莉譯 高橋 朗著 台北:如何出版社有限公司 2006 年
p.74
9. 《正太的黃金御飯團》陳惠莉譯 高橋 朗著 台北:如何出版社有限公司 2006年
p.74
10. 黃文博。《品牌,原來如此!》台北市:經濟新潮社 民國94 P.95
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Why Is It Worthwhile? ---The strategies of Branding the Product
1
Why Is It Worthwhile?
---The strategies of Branding the Product.
Betty Ho(何佩憬)
Class 201
National Hsinchu Girls’ Senior High School
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Why Is It Worthwhile? ---The strategies of Branding the Product
2
I. Introduction
In early days, most of the corporations and business companies in Taiwan
didn’t care much about setting up their own name brands while the enterprises in
other countries, mostly the western countries, were making every effort and
grabbed every chance to introduce their own name brands to the world. For
example, now people all over the world think of Coca Cola when they want to get
a soda to drink, which is a clear proof that what they did in the past decades has
a lot to show for it. Being aware of the value of a well-known name brand and the
considerable profit it can make, more and more corporations and business
companies in Taiwan are putting emphasis on establishing name brands and
making them well known to people. Therefore, in addition to the production of
goods, how to popularize one’s own name brand, or marketing, is also becoming
the major concern for many businesses. Just as what Philip Kotler said in Kotler
on Marketing “In the coming decade marketing will be reengineered from A to Z.
PDF created with pdfFactory trial version www.pdffactory.com
Why Is It Worthwhile? ---The strategies of Branding the Product
3
There is little doubt that markets and marketing will operate on quite different
principles in the early years of the twenty-first century.”1
In order to gain more profit, a company should understand the fascination,
power and effect of a successful name brand. Why do people like it? How can it
influence a company? Why is it so worthwhile? These are what many
entrepreneurs are intently discussing now. They know very well that the next few
decades will be the era of name brands. The one who succeeds in setting up a
well-known name brand with high popularity will turn out to be the winner.
However, to establish one’s own name brand is never an easy task. It takes
efforts and sharp insight. This essay is going to discuss the various strategies to
do it successfully.
II.Thesis
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Why Is It Worthwhile? ---The strategies of Branding the Product
4
1. The definition of brand and branding
In the book Marketing Management, Philip Kotler defined “brand” as “a name,
term, design, symbol, or any other feature that identifies one seller's goods or
service as distinct from those of other sellers.” But the definition published by
Philip Kolter was thought to be a more traditional view on the word “Brand”2.
Then in 1998, three American management consultants, Sam Hill, Jack
McGrath and Sandeep Dayal, defined “branding” as “creating a mutually
acknowledged relationship between the supplier and buyer that transcends
isolated transactions or specific individuals. This is an admittedly difficult task.
But those organizations that have successfully adopted this approach have
achieved superior and sustainable share and price premiums, even in the most
adverse of markets. ”3
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Why Is It Worthwhile? ---The strategies of Branding the Product
5
Indeed, different people may have different ideas about “brands” or
“branding”, but the most appropriate definition might be from Wikipedia, “Brands
were originally developed as labels of ownership: name, term, design, and
symbol. However, today it is what they do for people that matters much more,
how they reflect and engage them, how they define their aspiration and enable
them to do more. Powerful brands can drive success in competitive and financial
markets, and indeed become the organization’s most valuable assets.”4
2. More than just a product
Nowadays, there are more and more options for consumers in the
marketplace. Take the toothpaste for example; a consumer in the supermarket
will have more than ten different brands of toothpaste to choose from, and now
comes the question---which one will the consumer choose? Why does he choose
it? The reasons may be the advertisement he recently saw on TV, the suggestion
PDF created with pdfFactory trial version www.pdffactory.com
Why Is It Worthwhile? ---The strategies of Branding the Product
6
from one of his friends, or even simply the appearance of the merchandise.
Anyway, a consumer tends to choose the product that he trusts, he knows, and
the one that he has some knowledge about. In other words, a consumer’s
impressions of the product play a very important role in the consumer’s decision.
It also means that without a well-known brand name, a company can hardly
make profit from a product even though it has high quality.
3. What is in a name?
A name brand contains many elements; among them, the concept is the
most important. We may even say that the concept is the spirit and soul of a
name brand. It is a promise, an agreement between the supplier and the
consumers, which helps to make people understand your product, and then trust
in it, thinking it is different from all the other competitors. The concept will be
reflected in the appearance and characteristics of a product. Even the person
PDF created with pdfFactory trial version www.pdffactory.com
Why Is It Worthwhile? ---The strategies of Branding the Product
7
who endorses the product will have to fit in with the concept. With only one of
these failing to meet the standard, everything will be ruined, and the promise is
broken. In other words, the concept means everything. To build the concept of a
name brand, a lot of things have to be taken unto consideration, such as
consumers’ values, the trend of the market, the major rivals’ strategies, and the
capability of the company. After the concept is built, it still needs to be examined
and checked strictly and constantly to make sure nothing that is not in accord
with the concept exists. In short, a company has to build a concept for its name
brand, and then stick to it.
4. Branding
There are many factors that can make a name brand more remarkable than
others. We may even say that a successful name brand will never be complete
without any of these factors. When a company is trying to make its brand name
PDF created with pdfFactory trial version www.pdffactory.com
Why Is It Worthwhile? ---The strategies of Branding the Product
8
well-known to people, the first step is to have an understanding of humanity. All
the strategies should be based on the concept of the product and then take
humanity into consideration. These strategies can be put into six categories.
4.1 Visual strategy
People are easily influenced by their impressions of a product when they are
shopping. Therefore, it is necessary for the product to have eye-catching
appearance so that the consumers can notice it easily. In addition to an attractive
look, a well-designed logo and front of the product are also essential. What’s
more, a spokesperson that suits the concept of the name brand is required. It can
be a fictitious character, which has its own personality and can be identified with
by the consumers. The advantage of a fictitious character is that, in contrast with
a real person, it won’t change as time passes by. The main purpose of visual
strategy is to arouse in consumers a special feeling for your name brand. That is,
PDF created with pdfFactory trial version www.pdffactory.com
Why Is It Worthwhile? ---The strategies of Branding the Product
9
a good visual strategy should be able to make a deep impression on the potential
consumers.
4.2 Aural strategy
Through the advertisement on television, people can get the message of a
name brand easily, so having an exclusive theme song and slogan is necessary.
A commercial slogan should fit your concept and convey the features of your
product to the viewers. This will not only make your advertisement more effective
but also make the consumers choose your product over the other competitors.
4.3 Branding through the Internet
Nowadays, everything is on the Internet. By using the new technology, all
the information can be spread in a click, so can the advertisement of a name
PDF created with pdfFactory trial version www.pdffactory.com
Why Is It Worthwhile? ---The strategies of Branding the Product
10
brand. What’s more, providing service through the Internet has become another
trend now. Therefore, setting up a website is increasingly important for a
company. In this way, the consumers can make their comments on the product
immediately on the Internet, which makes branding even faster and more
convenient.
4.4 Public recognition
Besides one-way broadcast advertising, a name brand needs public
recognition as well. The public recognition can be in the form of an interview from
a famous magazine or praise from one of your consumers. Sometimes they will
be more convincing than a boastful advertisement. So if a name brand wants to
expand its market, it should grasp the mechanism of public recognition.
According to Everett M. Rogers in his 1962 book, Diffusion of Innovations, the
most influencetial channel to popularize a new product and convey the concept
PDF created with pdfFactory trial version www.pdffactory.com
Why Is It Worthwhile? ---The strategies of Branding the Product
11
of the brand to the society “ was not from some broadcast medium, but down an
echelon of levels, from a small number of "early adopters" to a larger number of
"secondary adopters", and from them to "tertiary adopters", then to "quaternary
adopters", etc. There was also lateral influence within each level. Broadcast
messages could reinforce the propagation from one adopter level down to the
next, but lower levels are unlikely to respond until the level above them has
adopted. It found that people were more likely to adopt, or even consider
adopting, if people they know and respect have adopted. Imitation is the
strongest influence channel. Therefore, the most effective marketing strategy is
to first sell to the early adopters, and then reinforce the diffusion to each
successive level, but not to waste resources on trying to reach any given level
before it is ready for it.” 5
4.5 The involvement in public welfare
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Why Is It Worthwhile? ---The strategies of Branding the Product
12
Involvement in public welfare can enhance the image of a name brand. A
public-minded enterprise will make a better impression on consumers than
enterprises that only care about profit. Generally speaking, people will not
support an enterprise or its name brand if it doesn’t do anything for the society. It
is believed that nowadays if an enterprise wants to be long conducting, showing
concern for public welfare is a must. In Europe, how deeply an enterprise is
involved in public welfare can even influence the price of its stock. So we can say
that doing public welfare is not only a good way to repay society but a good way
to gain public attention.
4.6 The development and innovation
No matter how popular a name brand is now, it will become out of date
without innovation and further development. It has to keep introducing something
new to its consumers. One of the good examples is Swatch, “From 1970s to
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1983, swiss watch manufacturers failed one after another, their market share
declined from 30% to 9%, while Japanese watches kept prospering. At that time,
it was Swatch that saved swiss watches from breaking down. It changed the
high-class images of Swiss watches into a young and fashion one, which is a
great example of business transformation. Since then, Swiss watches have
started to get its position back. ”6 The strategy that Swatch has adopted to
maintain its popularity is to keeping introducing new designs to the market. But
what matters most is that all the development and innovation should be in accord
with the concept. A name brand that changes its image and concept will make
consumers confused, and then lose their support.
5. The crisis
The odds will not always be in favor of a name brand. When faced with
business difficulties, the first thing for a company to do should be to find out the
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reason why your consumers are not satisfied. Following are two main reasons
that may cause a name brand to fall into disfavor with its consumers.
5.1 The product that is not in accord with the concept
When introducing a new product to the market, a company can hardly
predict the reaction from consumers. Even a very popular name brand can
encounter an unexpected problem. For instance, “In 1985, Coca Cola
announced to the world that they were going to replace their old formula with a
new one. At first, consumers’ reactions were quite good. However, they were
soon followed by suspicion and criticism. In contrast, Coca Cola’s long-standing
rival, Pepsi, grabbed the chance to strike Coca Cola. The event has still had
some effect on Coca Cola until now.”7 When faced with a problem like that, a
company has to stop producing the new product immediately.
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In fact, Coca Cola is not the only company that has been in a crisis. Before
introducing a new product to the market, a company should examine its product
carefully to make sure it is in accord with the concept of the brand.
5.2 The boredom
Another reason that causes a name brand to fail is boredom. Even though
consumers’ comments are quiet good today, nobody can guarantee that they will
still love this name brand tomorrow. Once consumers’ preference changes, the
company has to make some switches immediately. If consumers think a name
brand is out of date and does not meet their expectations, they may stop buying
its products.
6. Ways to maintain the popularity of a name brand.
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6.1 The precautions
A company has to understand why its consumers are not satisfied with the
products. However, the surprising thing is that “Although they are not satisfied,
only 50% of the consumers will make a formal complaint to the company, so if
there is one consumer complaining, that means actually there are twenty
consumers feeling unsatisfied.”8 What’s more, “An unsatisfied consumer is going
to tell other 15 people about his feeling on average!”9 However, if a company can
find some ways to cope with the difficulty, the image of the name brand may
become stronger and better than before. No matter what kind of difficult situation
a company is in, it should never give up. On the other hand, when the company
is prospering, it should not forget that pride comes before a fall; it still has to work
hard.
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6.2 Always making consumers satisfied
Consumers’ comments and requests must always be given the top priority.
Through consumers’ comments, a company can get a good idea of how
consumers think of the product. No matter how much marketing share a
company has, if it does not care about people’s opinions and the world trend, it
will lose its competitive strength sooner or later. Making every consumer satisfied
is much more important than getting a large number of new consumers in great
haste.
Besides, even though sometimes consumers’ requests may sound
unreasonable, remember the golden rule in the market, “The consumers are
always right.” Although it may not be easy to practice the rule at the moment, a
company should still try its best to keep the consumers satisfied. If the company
doesn’t do it, its rivals certainly will. If a company chooses to ignore its
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consumers’ request, it will lose its entire share of the market one day.
6.3 The special treat for regular customers
When people have long been supporting the products of a name brand but
do not get any “feedback” from the supplier, they will gradually lose their interest
in the product. That’s why the company should hold some activities to repay its
regular customers and make them feel privileged. These activities should be
aimed at the consumers that can help you make the most profit while providing
them with the best service. They can be some special service or treat that can
help you sell more or show your appreciation for their long support.
6.4 Expanding the name brand
Many companies will develop their own sub-brands so that they can expand
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their market at less risk. And when the sub-brand fails, it will not cause direct
harm to the main brand. Take the Procter & Gamble (P&G) for example, people
may not have heard of P&G, but everybody knows its sub-brands, such as
Pantene, Head &Shoulder (H&S), Olay, etc. 10 P&G not only managed to sell new
products in the market by building up new sub-brands but also put emphasis on
listening to consumers’ comments and getting more involved in public welfare,
which is a very successful strategy. What’s more, with a sub-brand, a fashion
company can even start to run food products business. From this, we can
conclude that developing sub-brands is also a good way for a company to make
more profit. Sometimes a company will even develop a sub-brand with low-priced
products in order to beat its rivals. Even though the sub-brand will cause harm
not only to its competitors but also to itself, a company will still do it to achieve
the goal of protecting the main brand.
7. About fakes
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Once a name brand becomes popular, there will be some other companies
that want to imitate it. It is very difficult to prevent and stop this from happening.
When facing this problem, a company should be more forgiving. People will not
imitate a name brand with poor popularity; it can be regarded as a kind of
compliment. In fact, a name brand should even be worried if there is no one
imitating its product. A name brand that always creates new products and leads
all the other name brands does not need to worry too much. After all, the moment
the fakes appear, they have already got out of date since by that time the original
name brand will have already created something even better.
III. Conclusion
We may conclude from the above essay that the true value of a name brand
lies in its concept, and the concept of a name brand should be based on what
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consumers need, namely, the humanity. Setting up a great name brand with a
fine concept can help a company make more profit. There are many ways to
introduce a company’s name brand to the consumers, and with those branding
strategies, its name brand can be more remarkable than its rivals’. A successful
name brand can build a strong bond between the supplier and its customers. Of
course, this is never an easy task. What’s more, there are various reasons that
may lead a name brand to a setback as we just mentioned above. But if a
company always cares about consumers’ needs and keeps up with the trend of
the world, the image of the name brand will be improved, and the name brand
may overcome the difficulties faster. A company can also take some precautions
before a problem really happens.
To sum up, branding may take lots of patience and efforts, but with sharp
insight and bright strategies, a company can catch up with the world trend and
stay prosperous in the era of name brand.
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IV. References
1. Kotler, Philip Kotler on Marketing, 1999 all about branding.com
http://www.allaboutbranding.com/index.lasso?article=113 “
The Ultimate Book of Business Brands: Insights from the world’s 50 greatest
brands Des Dearlove, Stuart Crainer,1999 2008/01/25
2. Kotler, Philip Marketing Management, Pearson Education, 2006
3. strategy+business http://www.strategy-business.com/press/16635507/16333
2007/01/25
4. Wikipedia http://en.wikipedia.org/wiki/Brand 2008/01/14
5. Wikipedia http://en.wikipedia.org/wiki/Diffusion_of_innovations 2008/02/25
6. 《黃金品牌成功術》,蘇西亞譯 Des Dearlove& Stuart Crainer著,The ultimate
book of business brands: insights from the world’s 50 greatest brands by 初
版 台北市:時報文化 1999年 p.41, 42
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7. 《黃金品牌成功術》蘇西亞譯 Des Dearlove& Stuart Crainer著,The ultimate
book of business brands: insights from the world’s 50 greatest brands台北市:
時報文化 1999年初版 p.109, 110
8. 《正太的黃金御飯團》陳惠莉譯 高橋 朗著 台北:如何出版社有限公司 2006 年
p.74
9. 《正太的黃金御飯團》陳惠莉譯 高橋 朗著 台北:如何出版社有限公司 2006年
p.74
10. 黃文博。《品牌,原來如此!》台北市:經濟新潮社 民國94 P.95
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