Developing brands

A successful brand is developed by identifying consumer needs and tapping into their emotional response. It is then designed accordingly and a unique market position is created for it. Developing brands is a risky business with many never making it past the launch and for those that do it takes time to achieve a good reputation and to receive recognition.

There are four stages in a brand’s development.

1. Identifying consumer needs

   The consumer may not realise he needs something until he sees it, so consumer market research is vital in identifying needs and responding to them. Needs are not static as they are constantly evolving as a result of changing demographics, wealth and technology.

2. Designing products

   There is a close link between consumer needs and product design and packaging. For example, food can be processed by canning, baking, chilling and freezing. The process chosen will also be influenced by criteria such as ease of opening (for the elderly), portion size (for single person households) and affordability (for specific income or lifestyle groups.

3. Cost-effective production

   This is absolutely essential if the product is to give value and be competitive. Product efficiencies (speed, waste control, capital intensity), marketing efficiencies (economies of sale, media choice), distribution efficiencies (cost of protective packaging, transportation, warehouse and selling costs) are all vital if the brand is to be competitive and affordable at all points of sale and in all product forms.

4. Creating brand positioning

   This is the way in which the product meets the consumer need. For example, Pedigree® dog food is about nourishment and nutrition, Coca-Cola® is about continuous refreshment, KitKat® is an enjoyable and relaxing, between-meals snack. Positionings have physiological and psychological values and are given tangible expression by the unique selling proposition and reason why. For example, Pedigree® is “recommended by top breeders”; consumers are urged to “take a break, take a KitKat” . Since each brand is unique, its positioning must be too.

Managing brands

There are four necessary activities to ensure a brand continues to be recognised and have a positive reputation.

1. Monitor lifestyle changes

   Populations age, become richer or poorer, and change their behaviour and values. A brand must remain constant throughout, making any necessary change in design, packaging and price, while always being good value.

2. Explore technological changes

   Constantly changing technology can improve benefits, such as cans with easy-open ends. Brand leaders need to be one step ahead of the field in bringing those benefits to the marketplace.

3. Measure product performance

   To achieve quality, products must never deteriorate or become inferior to the competition.

4. Never change positioning

   The positioning of a brand is its promise to the consumer. Changing positioning is breaking faith with him. External factors, such as packaging, distribution and media communication will all change to ensure that the brand’s reputation and recognition are retained and strengthened, but its position must remain constant.
   

(Abridged from a paper by Dick Bell of Templeton College, Oxford)