In order for your product to continue its life after its creation and be able to succeed in the market, it is necessary to develop a brand promotion strategy.

Trademarks or established brands eventually lose their positions in the market, despite the approved high quality of the product, when consumer loyalty is not supported by anything, they begin to lean towards the products of competitive companies.

Therefore, if you want to not only win, but also retain your customers for life, expand the company's market share or capture new segments and niches, you must create a strategic framework, or rather a brand promotion strategy.

An effective strategy progressively moves the product towards the intended goal, coordinating tactical activities and defining the concept of brand positioning in the market.

You'll get

Brand development plan for 3 years

Detailed Brand Promotion Guide for the Year

Formation of a clear brand image in the minds of consumers

Sales growth

Increased brand awareness

What determines the cost of developing a strategy and promoting a brand?

1. From the timing of development. If you need to develop a PR strategy as soon as possible, the cost will be higher.
2. The size of the brand and the goals of the company - the higher they are, the higher the cost of creating a promotion strategy.
3. Competition in the market in which the brand operates. The higher, the higher the cost.

Stages of developing a brand promotion strategy

Brand awareness, holistic perception, emotions and impressions inherent in the product (service), vision of the product in the future - these are all functions of the brand strategy. The product development program preserves the whole concept of the product, inspires the consumers with the right emotions.

Brand strategy creation includes:

1. Determination of the target group of the future brand, the concept of brand positioning. We conduct a thorough analysis of the target segment, with the allocation of groups with which the product will be in contact;
2. Developing individual messages (emotional messages) is a basic communication strategy;
3. Developing evidence of the message for each target audience group;
4. Definition of a set of impressions - an opinion that needs to be formed in the subconscious of each target audience group;
5. Formulation of brand ambitions for the future brand.

What is brand strategy?

Brand strategy is a comprehensive program to develop a product's identity and increase its assets. It defines the key target audience of the product, lays down the main idea of ​​the brand and the attributes of its presentation, emotional and physical characteristics, visual image, pricing strategy, sales and communication channels for product promotion.

It predetermines its future - what the product will become, who will be its consumer, in which direction the brand will develop. It is no less important how the brand's communication with the consumer will take place. Therefore, the development of a brand promotion strategy includes planning a PR campaign and a detailed study of possible communication channels with the target audience.

Elements of brand strategy

Brand development and promotion are two key pillars of his strategy, which includes many separate elements and processes.

1. Description of the target audience- drawing up a portrait of a consumer (demographic characteristics, culture and values, interests and life priorities of the consumer), a description of the consumer value curve and consumer behavior model.
2. Analysis of competitive products.
3. Branding(brand creation and promotion) - the choice of positioning ideas, product values, name development (naming), brand design (corporate identity, logo design, packaging and label concept, brand book compilation), design adaptation for advertising media.
4. Product strategy- highlighting the key features of the product, the formation of an assortment policy and a policy of expanding the assortment, the choice of individual and group packaging, merchandising.
5. Pricing strategy- product pricing policy.
6. Sales strategy- selection of sales channels for products.
7. Product development strategy- determination of the best methods for popularizing the product and communicating with the consumer.

PR strategy on the example of Impression Electronics

Choosing the right communication strategy with the consumer guarantees hitting the target audience and increasing sales. The Ukrainian electronics brand Impression Electronics focused its attention on low-income consumers in its PR campaign. A video has appeared on the network that makes fun of the majors and those who are chasing "show-off" and expensive toys.

The video spread well on social networks, collected more than 100,000 views, and successfully conveyed the message to the audience: “It is important to be real, to choose practical and convenient tools for work, and not the most expensive and discussed”. The strategy of the company involved the release of budget products that quickly found their consumer - sales of smartphones and tablets of the company increased after the launch of the PR campaign.

Why does a brand need a promotion strategy?

The development of a product development program on the market provides the following opportunities:

• identify flaws and problems of the current state of the business;
• identify basic needs target audience and create a new need based on your product;
• adjust or create a new direction of development trade mark;
• emphasize important competitive advantages companies and distinguish among competitive firms;
• create brand image, the desired impression of him, to demonstrate his main idea and make the brand popular;
• strengthen market position and the level of consumer confidence, create a strong connection with the audience and attract new consumers;
• increase the value tangible and intangible assets companies.

The basis for brand success is the heart of the strategy - it is the main idea, the main principle, the product advantage and the reason for the purchase that distinguishes the new product from the competition. It is extremely important to follow the chosen strategy to the end - to manage the goods. This gives a great chance to firmly gain a foothold in the mind of the consumer for the long term and become a legendary brand.

Branding agency KOLORO takes care of your brand and will develop a successful strategy for the development of a leading brand in its market!

Everyone loves to throw in terms and demonstrate their awareness and experience. Business is no exception, and most employees, from the middle management to the very top, have already got into the habit of pouring a stream of smart words on the interlocutor to show their own competence. However, sometimes it is very useful to abandon this habit and remember the phrase “I know that I don’t know anything”, which has repeatedly sounded from the lips of people who are very worthy and respected. And then, everything turns out to be completely "not so", so it was considered that. And this “not so” can lead us to new meanings, new approaches and new efficiency. In this article, we would like to look at the concept of "brand strategy", to consider with an open mind, "knowing" what we have learned over more than 10 years of work in the field of brand consulting, and at the same time, "knowing nothing."

Brand strategy: what and why?

What is brand strategy is pretty simple. Obviously, this is a strategy for creating, developing, changing and adapting to the market for a brand that is an integral, unique and attractive image inherent in a product or a group of products united by common identification symbols. This image is based in the consciousness (and possibly in the unconscious) of the consumer; it “helps” the consumer, in the face of a difficult choice, to make the “right” purchase, which will solve his “problems”. Of course, the product itself (or a group of products) must correspond to this image. As a result, we should see a brand - a consumer item that enjoys a high degree of consumer loyalty, which is also sold at a higher price. Money, and only money, just business, nothing personal.

But when we talk about strategy, then the question of goal-setting arises. Why do you need a brand strategy, what goal is it planned to achieve with its help? As already mentioned - money? But no. Yes, money is the fuel and meaning of any business, but the brand, as it was said, is an image in the mind. How correct is it to measure the image with money? How suitable is this "ruler"? For a brand, financial indicators are only indirect indicators of performance. And putting them at the forefront is incorrect, illogical.

Imagine that you are sewing clothes. Yes, the main measurements here are either centimeters or rubles. Everything seems to be simple. But if you intend to appreciate the beauty of this clothing, will you be able to do it in centimeters and rubles? Of course, there will be dependence, since harmony also implies some mathematical models, and the cost of materials plays an important role. But you will agree to correctly assess the beauty with only a ruble and a centimeter. We need a different "ruler", a different criterion of assessment.

Likewise with the brand. To the question “why do we need a brand strategy?” The answer “to have more money” is incorrect. And with purely financial expectations, you should not approach the issue of creating and developing a brand. You will most likely be disappointed. If you just want "more money" - invest in distribution channels, in marketing, in packaging, in advertising, in expanding product lines, in sales personnel, in logistics, in a management system. All this will pay off much faster than investing in a brand. These are quite measurable and tangible things, and they can be measured by a financial "ruler". The position in the mind, the strength of the image that affects consumer behavior, and even in the context of various social groups, but taking into account the peculiarities of social engineering, you cannot measure with money. And what result will you come to if the goal and the way of achieving it do not corny correspond to each other? It's like going to a casino to get rich. Few have succeeded, most are disappointed, others become addicted. The goal and the means of achieving it must correspond to each other.

So why do you need a brand strategy then? It is needed to increase business efficiency, but it is only needed when other tools for making "more money" no longer work, or work too weakly. When investments in packaging, expansion, sales cease to pay off. It is then that the consumer has to get under the skull and try to introduce something there. That's when the attitude to the brand and branding becomes adequate, since branding is a serious, complex and deep enough process, not just drawing logos. When you begin to understand that in this situation all other actions no longer give the desired effect, then the time comes to engage in branding. Because as you grow, the situation gets more complicated, and the complexity of the business itself increases. The time comes for complex and subtle methods. In which you will have to thoroughly delve into. Moreover, to delve into all the decision-makers in the company! And then there will be an understanding of the correct branding goals that can be linked to the strategic goals of the company itself.

And not always, these goals will be formulated as "more money." Sometimes, even holding onto existing market positions is already a huge win. Branding should only be done when there is no other option. When you clearly understand why it is, and what you will get, excluding money. Then you will need a strategy for that brand as well. And before this difficult time, it is best to try to live without investing in the virtual realm of mass consciousness.

Brand strategy: what is needed and what should it be?

Over ten years of branding consulting, we have written dozens of brand strategies. And for a long time they tried to standardize this document, to outline the main points. Alas, both the companies and the market situations in which these companies found themselves were too different to speak of unification. And it is impossible to say clearly in advance what should be in a specific document dedicated to brand development. Sometimes, the main emphasis should be on the interior of retail outlets, sometimes on POSM, and sometimes - generally on souvenirs and exhibition stands. Too many factors play a role here. Even corporate identity guides in our time are no longer so easy to bring to a common denominator, business cards and fax forms are no longer limited. And the process of penetrating the rich inner world of the consumer is much more complicated than the development of visual identifiers.

The situation is aggravated by the fact that the consumer's psyche is a "black box", this is an area that is essentially unknowable. On the one hand, you need to work with this psyche, on the other, science knows very little about it. Do not forget that all psychological models are just a figment of the imagination, in reality they do not exist: there are no clearly defined areas in the psyche on which the names "super-I" or "values" are written with a marker. Nobody can describe what is happening in the psyche "in fact", since "in fact" a person does not have an adequate language to describe mental processes, just as there is no language to describe content devoid of form. And here, unfortunately, there are no clear criteria to distinguish a working concept from the paranoid delusion or fabrication of an amateur. We have come across “brand strategies” more than once, from which one could cry and laugh bitterly at the same time. Someone puts archetypes at the forefront, someone tries to justify everything from the position of NLP, which is definitely stupid. But there is no clear evidence base, since psychology is not mathematics. And with a certain skill of a salesperson, you can "sniff" anything a client wants, if he himself is not a specialist in psychology (but such clients either do not turn to consultants, or are crazy stronger than other business consultants).

And how to be here? And here everything already depends on the personality of the decision maker, on his ability to reflect. This person must thoroughly understand everything, reflect and personally make sure that the proposed concept makes sense. Yes, branding is the task of the first person, everything depends on it and everything depends on it. And if the first person does not pay enough attention and desire to understand the essence of the proposed strategy of his own brand, which is announced by consultants, then no matter how good the document is, most likely it will not be implemented. And it is even better if this first person involves his deputies and heads of departments in this matter. Still, one head is good, and several are better. Everyone should “digest” and reflect on the proposed ideas “from their own bell tower”. And make your own adjustments (which, as a rule, no one wants to do). Without this, any document will remain stillborn.

Brand strategy: how to implement?

And here managerial problems already begin. Brand strategy is something that is aimed at the "black box", at the psyche of the consumer. There are no clear criteria for quickly assessing the completion of the task. Therefore, they either do not want to undertake the implementation, or they take it, but let the tasks go down "on the brakes" - all the same, no one will understand how much something was done correctly or incorrectly. Only consultants can understand this if they accompany the implementation project. Without consulting support, everything very quickly turns into unsubscriptions, and no brand emerges.

To begin with, branding issues are usually entrusted to the marketing department or an otherwise unfortunate brand manager who was hired specifically for this project. What can he do? Change the logo, give some kind of advertising. And that's all. And this is the best case. At worst, he will not be given any authority at all, and the "bison" - salesmen, logisticians and economists will regard the brand manager as the fifth wheel in the cart. Good-bye, brand.

The question of brand strategy is a question of the first person, since he is the chief brand manager. This idea is not new, but the overwhelming majority of entrepreneurs (not only Russian, this is world practice, unfortunately) never reached it. The issue of implementation is even more complicated. And the main "implementers" of the brand are not marketers or even nonsense managers. These are the heads of the company's divisions. It depends on them whether the product, with all its aspects, will be able to take the desired image in the mind of the consumer. And they, firstly, do not understand anything about branding, secondly they do not want to understand, and thirdly, they will also resist all changes in their work.

The correct algorithm, which we can say, have suffered, is as follows:

• training of heads of departments in the basics of branding (along with psychology, along with training in the ability to reflect);
• explaining to the heads of departments of the essence of the brand strategy and adjusting this strategy in accordance with the specifics of the situation, the knowledge of which these specialists have.
• in the round table mode, separation of areas of responsibility, scaling, setting general and specific tasks, defining performance criteria.

Of course, this is additional work that should be rewarded. How many companies do this? Units. Therefore, there are no brands in the country, and hopes for their appearance are illusory. And the brand strategy should allow such operations, it should give an understanding of the departments what they should do. Because if a brand strategy consists only of psychologisms, then those who have to implement it in it will not understand anything. Alas, those areas in which brand building is limited only to packaging and advertising are either a thing of the past or are occupied by business giants with corresponding budgets. To create a brand in these difficult times requires much more intelligence and subtle decisions than ten years ago. Is there a description of them or at least areas of activity in the brand strategy? Yes - well, no - the brand strategy can be thrown away, no one will implement it.

Brand strategy: what is the result?

The principle by which the result is measured follows from the idea of ​​goal-setting. However, here economics and psychology already converge. At the stage of setting goals, it is almost impossible to assume an economic result, initially, the brand strategy is only a hypothesis. The hypothesis that a certain segment of the market will somehow react to the set of arguments that will be presented to it. He will react first of all within himself, creating a certain idea (image) that there is a certain object of consumption in the world that was offered to him. Yes, in order to plan investments and readjust a complex business machine, this is not the best justification. But there is no other justification at all! But you have to start with something. A brand strategy at the initial stage is this “something”, a description of the general direction of action, which may lead to a result. Will it lead? No one will ever give such guarantees. And if someone still guarantees something, then this should be doubly feared - such people either do not know what they are talking about, or, on the contrary, they know very well, but they do not act at all in the interests of the customer.

Only the experience and competence of business consultants give at least some weak confidence that the market hypothesis set forth in the business strategy will lead to success. But you need to understand that brand strategy is not a clear path to victory. This is, first of all, a launching pad in order to start at least some movement in a given direction. Brand strategy and its first results cannot be financial. This is just a sighting for further amendments. Because without it, you don't even know how to shoot, how to shoot, and even in which direction to shoot. Brand strategy provides this understanding, but does not guarantee hitting the target. The brand strategy sets the starting point. Based on which you can take more and more targeted actions to achieve the result.

At the initial stage, the result of the implementation of the brand strategy should be information about what has actually been done with the consumer's mind:

• What image and in which group (or groups) of people did you manage to form? All information is important here, from the level of knowledge of the brand as such to the associations created in relation to the brand. Do they know the brand with or without a hint, does the brand correspond to the values ​​of the consumer, which were initially guided in the brand strategy?

And that's just where real branding begins. Because systematic activity begins to develop success (at the initial stage, lack of success is also success, since it provides a fulcrum for further movement). Action - Feedback - Evaluation - Adjustment. And here the connection of economic indicators (however, not only them) already begins.

Knowledge level and strength of brand associative links: what level did you manage to achieve? In what ways? How can this be developed? In what ways? Is there a gap between the embedded image and the economic performance (why people know the brand but don't buy)? How can this be corrected? This is a really difficult analytical work to bring together psychology and economics. But there is no alternative to this path.

However, people are very fond of get-rich-quick stories, stories about how a startup in his garage put together a miracle machine and instantly became a millionaire. Love for freebies is ineradicable and it is much easier to dream of a miracle than to slowly but surely create this miracle with your own hands. Of course, miracles do happen sometimes. And brands created without any analytics and even without a strategy suddenly "shoot". But I would like to remind you of the inexorable statistics: up to 95% of new products and brands fail on the market without recouping the investment in their creation. So miracles do happen, but rarely enough. A technological, intelligent approach gives much more chances for success. But in order to reap its benefits, you will have to change a lot in your own head and in your own company.

So far, in Russia and the CIS (and in the world as a whole), this approach is not very popular. It is difficult, this is "long money", it can be likened to a high-tech business, only investments are made not in the development of new technologies, but in psychology, in the knowledge base about the consumer, which should be in the company. When it is much more profitable to engage in low-tech business (retail, construction, minerals), there will be few people willing to engage in high technology. The same is with branding: as long as there is an opportunity to sell without delving into the specifics of consumer behavior, no one will bother with unnecessary information and spend money on something that will not pay off immediately. But the markets are getting more complicated, the markets are changing. And suddenly (though not at all "suddenly") some markets come to the conclusion that they have to either engage in branding "in full" or put up with falling profit levels and a decline in market share. No one complicates his life according to his conscious desire, no one spends money that can not be spent. But life compels. And it is desirable to be mentally prepared for this when the time comes to create a brand. A brand in the full sense of the word, not a logo stuck on a product that few people are interested in.

The market is overflowing with a variety of products, the level of competition among companies is increasing every day. And no one will be surprised by the offer of the best price, of the highest quality. The most thorough analysis of customer needs is required to create the best product offer, improve the company's image and increase consumer confidence in it. The reality is that it is impossible to create a competitive brand without a whole host of marketing moves.

Definition of the brand. Concept and purpose of brand strategy

A brand is a complex of elements, the purpose of which is to make a company easily distinguishable from others and give it individuality.

A brand strategy is a plan for creating, developing, launching a brand into sales markets, which promotes the promotion of goods and services, provides an increase in profits and attracts the attention of customers. Constant monitoring of consumer needs, familiarizing them with a new product is the main goal of strategic branding.

Brand building: 4 core strategies

In marketing, it is customary to distinguish the following strategies:

Strategy creation process

The main stages of developing a brand strategy are:

Brand development

Building a brand that is resistant to market fluctuations is not an easy task, even for professional brand managers. It is even more difficult to make sure that the product can hold the consumer's attention for a long time. This requires the continuous development, implementation and improvement of a brand development strategy.

Brand development is a set of measures aimed at increasing brand equity by reaching new sales markets, introducing new products and advertising them. Those. this concept includes a set of tools to achieve brand improvement.

There are usually 2 strategies:

• stretching the brand;
• brand expansion.

Stretching the brand

Appears when a new product is launched, while the consumer group, product category, product purpose, brand identity remain unchanged. Only one indicator does not change: consumer benefit. This is the most commonly used brand strategy.

For example, the company makes a lotus extract face cream. The range of creams is replenished with a cream with lotus and ginseng extract. The product (cream) remains unchanged, but the consumer benefits from the ginseng supplement.

Stretching types:

1. Change in packaging volume (powder is available in packages of 1.5 kg, 3 kg, 6 kg). Provides the needs of different categories of consumers.
2. Increase in quantity at the same price (three toothbrushes for the price of two).
3. Renewal of the product packaging (coffee in a glass can and in a tin).
4. Changes in composition, taste, etc. (plain yoghurt and cherry yoghurt).
5. New quality of goods (packaging of familiar pasta, on which a recommendation for cooking from a famous chef is printed).

The use of this type of brand strategy, such as stretching, is designed to meet the needs of different categories of consumers and satisfy their needs.

Brand expansion

Brand expansion is the consolidation of the brand and its application in a new segment. For example, a brand of women's face cream is starting to release a men's cream to reach a male audience. This is extension.

Brand expansion types:

• production of products complementary to the main product (production of toothbrushes in addition to toothpaste);
• coverage of a new segment (a company that produces educational games for children is launching board games for teenagers, thereby attracting a new type of buyers);
• the use of the product in other conditions (most often this brand strategy is applied to clothing. Sneakers are sports shoes that can be worn in everyday life);
• new purpose for the product (release of chewing gum with a whitening effect for teeth, i.e. in addition to the usual function of chewing gum (cleaning teeth), whitening is added);
• replacement of goods with another with similar functions (the buyer is offered to purchase a gel with a repelling function instead of a mosquito aerosol).

Brand promotion

Brand promotion is a multi-tasking process that involves the application of a large number of marketing strategies.

The main objectives of brand promotion are:

• increasing consumer attention and increasing brand awareness;
• improving the image of products and customer confidence in them;
• strengthening competitiveness;
• development of the sales system.

Effective promotion strategies:

1.brand. Any brand promotion strategy needs to analyze the opinion of consumers about the product. Communication with the consumer copes with this task best of all. Feedback "producer-consumer" allows you to achieve the solution of the following tasks:

• increasing customer loyalty to the product;
• provide the consumer with useful news;
• make changes to the product in accordance with demand;
• achieve the fulfillment of the expectations of the target audience about the product.

The main features of the communication strategy are:

• Time constraints (the start and end dates of the strategy must be clearly defined. During this period, all tasks must be completed).
• The presence of an idea that the manufacturer would like to convey to the consumer through his product.
• Development of methods for conveying ideas to the consumer.
• Availability of space for the implementation of communication with the consumer (shops, events, the Internet, etc.).

2. Brand positioning. A strategy is a set of measures to present a product on the market. Positioning includes such necessary attributes as creating an image of a product, packaging, advertising, etc. The main task of positioning is to create positive associations in the consumer when a product is mentioned. In addition, correct positioning allows you to distinguish a product from the total mass of similar products, to create an image for it.

The positioning process can be roughly divided into several stages:

1. Marketing research of consumer opinion, which should provide information about the perception of goods by buyers.
2. Analysis of competitors and their proposals, which will reveal the strengths of the product, determine its competitiveness.
3. Development of the brand image.
4. Assessment of consumer perception of the new brand.

Image

Brand image is the point of view of consumers about a company's product, its quality, as well as all the associations that may arise when a product is mentioned.

Building an image is part of a brand management strategy. Any brand, brand, regardless of desire or unwillingness, has an image. It consists of the opinions of consumers of the product, their feedback and comments.

Brand strategy is to manage production, distribution, communications and economic structure, in order to develop a stable brand perception by a certain group of consumers, and thus ensure the maximum frequency of choosing it.

In theory, the strategies for international and national branding are not much different from each other. Both should aim to build the strongest possible brand through the development of its core values. In reality, there are special aspects in international brand management.

There are several approaches to classifying international branding strategies. According to the authors, it is most optimal to divide the vast majority of international branding strategies into four main categories:

• 1) global brand strategy - a single global brand for each new country;
• 2) double standard, when a uniform international strategy is applied, different from the strategy in the domestic market;
• 3) transnational brand strategy - a general approach to brand promotion in all countries with a significant volume of local adaptations;
• 4) multinational brand strategy - comprehensive adaptation to each new market.

Each of the strategies has its own advantages and disadvantages, as well as certain conditions in which it is worth or not to apply this or that strategy.

Global brand strategy not very common, but in a more or less strict form is successfully used by some companies and trademarks, such as Coca-Cola and Marlboro. Of course, there are many more global brands in the world. It's just that there are still blank spots in the understanding of global and international brands. Here is how you can only define with some degree of certainty what is global brand:

• - basically the same product or service with slight variations ( Coca-Cola, Guinness);
• - has an unchanging essence, personality and dignity ( Sony, McDonald's) ,
• - uses the same principles of strategy and positioning ( Gillette) ,
• - offering the same assortment ( Avon) .

Companies that use a global strategy do not adapt their branding concept to possible national differences and use the same brand name, logo and slogan around the world. Market proposition, brand positioning and communication are also identical across all markets. Standardized brand functioning leads to significant economies of scale in terms of brand investment.

The popularity of the global brand strategy is facilitated by a number of factors operating in modern society, for example, the internationalization of lifestyles and the decline in the role of national traditions and customs, the development of common standards and international business, the emergence of global information networks and communications, and high consumer loyalty to global brands.

The first thing that is necessary for the implementation of this strategy is a thorough study of the strategy itself, taking into account practical skills when developing implementation mechanisms. On the one hand, it avoids mistakes, on the other hand, it provides support for personnel in foreign offices. This strategy is definitely more suitable for a large brand than for a small one. In addition, it is necessary to have a large internal sales market in order to be able to draw resources from for the development and support of a global strategy.

Observations of successful global strategies show that if the characteristics of a brand are closely related to the true or imagined lifestyle in the host country of the brand, then it is easier to implement such a strategy, and there are more reasons to choose it. Coca-Cola is still strongly associated with the American way of life, and the cowboy Marlboro adjusts to a certain style, albeit more cinematic than real.

In addition, the global brand management strategy of an international company appeals to universal values, allows the brand to be a leader in many countries. For example, Coca-Cola emphasizes the value of human communication, which is universal in all languages ​​and in all countries.

The global strategy is well suited for product categories where there is a lot of similarity among buyers from different countries. These are categories such as electronic equipment, high-end fashion and art market sectors.

Despite the fact that this strategy has a number of advantages, the disadvantages and limitations of this strategy are also present (Table 11.1). An example of an unsuccessful use of this strategy is the company's attempt to Procter & Gamble run anti-dandruff shampoo Head & Shoulders in France, and the company used exactly the same marketing and positioning mix that enabled it to succeed in the UK and the Netherlands. However, this policy did not bring results.

Table 11.1

Advantages and Disadvantages of a Global Brand Strategy

The problem was that the company did not take into account one characteristic of this market that was not seen anywhere else. Consumers bought anti-dandruff shampoos from pharmacies, which served as a guarantee of the effectiveness and efficiency of treatment, a Head & Shoulders sold mainly in supermarkets. In addition, in France, the presence of dandruff is perceived as a social problem, no one should point a finger at it as a sign of condemnation, on the contrary, you need to sympathize with the person and his problem. But the ad campaign Head & shoulders, which had previously been successfully carried out in Holland and Great Britain, did not take into account the sensitivity of the French to this issue.

Such failures as such cannot be attributed to evidence of the failure of a global brand strategy, as you can see the worldwide success that companies such as Dell, Sony, McDonald's and Volkswagen.

Second category, dual strategy, common among companies with a developed sales market, but a more cautious approach to international branding. The duality lies in the fact that although the visual appearance of the product and the basic values ​​of the brand are the same, the promotion in the domestic and international markets is carried out in different ways. In particular, this is manifested in the accentuation of different aspects of the value of the brand. For example, in the case of Volvo the core values ​​are “family car”, “safety” and “driving experience”. The duality manifests itself in different attention to these aspects in different markets. In some places, for example, the driving performance of the "car for the driver" is valued above everything else.

Transnational brand strategy, adaptation within acceptable limits, most suitable for product categories with developed local traditions. It is somewhat similar to the dual strategy, but the readiness to adapt the brand in this case is higher.

Companies using this strategy develop customized branding concepts for all foreign markets in which they operate. Not only the brand, but also the market offer and marketing activities are specifically tailored to local conditions. However, the corporate brand concept remains visible and acts as a framework guiding local adaptation within its boundaries. At the same time, the company can position its brand in different ways and use adapted pricing and product policies. The transnational strategy is designed to best meet national needs. The negative aspects in this case are the high capital investment required to meet these requirements, as well as the lack of advantages of standardization.

Prominent examples of companies practicing this strategy are Danone and Unilever. Executive director of the company Danone F. Riboud states: "Our goal is not to develop brands that are number one in the world, but to create brands that become number one locally with global global concepts / products."

An interesting trend is being formed on the basis of this strategy. In multinational companies around the world, management proudly presents figures to prove their brand is perceived as local. One of the striking examples of such products is coffee. This is an example of a product category in which people take pride in their regional or national identity. Italians prefer Italian coffee; the Austrians consider their own, Austrian, to be the best; Scandinavians are sure that no one in the world makes coffee better than them. It is unlikely that consumers will be inflamed with a passion for a brand if they find out that it is not their "native" brand, but part of a large transnational operation. Therefore, it will be much more productive to adapt the strategy and position the brand as local, as consumers see it.

The fourth option for an international organization's brand management strategy is full adaptation. This strategy is also called multinational brand strategy . This strategy is characterized by comprehensive and complete adaptation of brands, market offerings and marketing activities. It targets different domestic markets - nations or regions. Companies sometimes have to use a multinational brand strategy under the influence of market regulation and external circumstances. In certain markets, full adaptation to local conditions is inevitable. For example, in some countries, legal services can be promoted using communication tools, while in others it is prohibited. A multinational brand strategy is most appropriate when a company faces high pressure to meet local requirements.

In addition to the strategies listed above, there are specific strategies for managing the brands of an international company. For example, companies that operate in international markets without extensively adapting their market offerings, brands and marketing activities to different local conditions use international brand strategy ... This strategy is suitable for companies whose brands and products are truly unique and do not face any serious competition in foreign markets, as is the case with Microsoft. In this case, internationalization has nothing to do with price pressures and economies of scale - the main driving forces behind global brand strategy.

Moreover, there is another alternative strategy - opportunistic strategy ... An opportunistic approach means that every decision regarding a particular country or market is made with the expectation of obtaining the greatest short-term result. At first glance, this strategy may seem silly, but in practice it is often successful. In a sense, the opportunistic approach corresponds to the classical marketing canons, which require full adaptation to the situation in each specific market.

Despite the variety of international branding strategies and approaches to their classification, one can single out the main factor that underlies such a division. It is the degree of globalization or localization of a brand. Each company must find its own balance between localization and globalization of its brand policies.

Research confirms that brands in such product categories as food and retail are in need of serious adaptation, first of all - they are the ones that most reflect the cultural traditions, tastes and habits of the local population. The minimum adaptation, on the contrary, is required for the market of computers, software. The percentage of people who prefer local brands to global ones differs from continent to continent (Figure 11.2). The optimal adaptation strategy, if necessary, will also be different.

In addition, tradition and culture tend to be more important to older low-income consumers and less to younger and wealthy consumers. Accordingly, brands targeting the first group of consumers should be more adaptable than those that are more focused on the second group.

Where does this hype around brands come from? For a long time, manufacturers have given a name to their firms and products, and the most savvy of them have sought to associate their products and their demanded properties with the company. However, it was at the end of the twentieth century that they understood the value of a stable trademark and the positive associations that it evokes in the consumer. Instead of intuitive feelings and fragmented theoretical groundwork, a powerful concept of brand capitalization appeared. The first groundbreaking work in this area was titled How to Capitalize a Brand Name (1991), and its author David Aaker was called by the Financial Times "the best candidate for the Nobel Prize in Marketing, if there was one." Since then, the brand has been placed on a par with strategic business assets that have real market value that can be managed.

Brand is a strategic asset of the company

Since the beginning of the XXI century, Business Week magazine, together with Interbrand Corporation, has published a list of the 100 most valuable brands in the world, and it is a great honor to be included in it. The criterion for the investment attractiveness of a company is not only healthy financial statistics, but also the strength and attractiveness of its brands, each of which is not a formal product label, but a business card that expresses status, values ​​and lifestyle.

Thus, a brand is a strategic weapon and a valuable asset that must be protected and developed. But no matter how simple this task may seem, choosing the right branding strategy is not easy: there are many options for creating a brand portfolio, each of which has advantages and disadvantages, distinctive characteristics that make it ideal for some companies and brands and unacceptable for others. Building a brand portfolio is an intellectual game that requires a keen eye, thoughtful moves, courage and creativity. The prizes for the winner are customer loyalty, growth in profit and market share, and competitive advantage.

Branding strategies are simple in their logic and at the same time very tricky: the choice of the only correct one and its correct implementation require serious calculation. A flawed strategy can turn a company's efforts against itself and its own brand. Therefore, if an idea arises to launch 30 new products under different brands, which will make the customer's head spin, or, for example, to start producing elite lingerie under his well-known “macaroni” brand, puzzling both fashionistas and housewives, then you should think about what it is fraught with and are there any options. Currently, experts identify several forms of brands' existence, each of which corresponds to a specific strategy. The task of specialists is to choose the most suitable for a particular brand.

Monobrand - one warrior in the field

Monobrand (or corporate brand) is one and only brand under which the company's products are manufactured. The mono-branding strategy relies on the strength and stability of the existing brand, on the persistence of consumer preferences, on the long history and good name of the brand. To use a mono-branding strategy, you need to be sure that the corporate brand has an impeccable, time-tested reputation - an aura that extends to all of the company's products. High product quality is an unconditional, but not the only requirement for a first-class mono-brand. According to a renowned expert Scott Bedbury(promoted brands Nike, Starbucks), who visited Kiev last year, there are thousands of good companies with quality products in the world, but only a few have a so-called aura, which consists of many additional details - customer treatment, advertising highlights, integrity and consistency of the image, philosophy of the company, its compliance with the inner world of customers. A great brand is a strong emotional bond that transcends the product.

Thus, mono-brand architecture is appropriate when the company has been working for the brand for a long time, and the brand acquires the ability to work for the company. Experts name Mercedes and Samsung as examples of successful mono-brands. In particular, Mercedes has been gaining its reputation step by step since the early 1900s and by the end of the 20th century acquired the status of a respectable manufacturer of luxury cars. To preserve the integrity of the image, the company does not exchange for many brands, using a linear expansion strategy: the buyer is offered cars of several classes (A-class, B-class, M-class, R-class, etc.), which have different purposes and properties, but all they are meant to represent the stability, respectability and taste associated with Mercedes. When the owner of the Mercedes brand, Daimler-Benz, incorporated the American Chrysler (1998), which excelled in style and image, steps were taken to preserve Mercedes' precious identity. The Mercedes Car Group remained autonomous, and the Mercedes image was proclaimed unchanged. An exception in the mono-brand structure of Mercedes is a fundamentally new product, a small maneuverable car for the city, created in conjunction with the Swiss Swatch, which in its essence and appearance is so different from traditional "Mercs" that it was logical to create a separate brand - Smart.

The main advantage of mono-branding is that a single positive brand image is automatically transferred to all new products and becomes an additional factor in product success. This strategy allows you to have a consolidated, highly focused marketing budget, ensuring rational use and cost savings. However, mono-branding is only suitable for companies that produce homogeneous or related products. A significant drawback of a mono-branding strategy is the possibility of a “chain reaction”. If at least one of the products "hits the face in the dirt", this will negatively affect the attitude towards all the brand's products. For example, in the early 2000s, technical defects were found in the popular Mercedes E-class, which became one of the reasons for losses and a significant weakening of the position of the Mercedes brand.

Another drawback is that monobrands are often conservative and do not have the opportunity to pamper the buyer with a novelty of their image. For example, in the early 2000s, the then director of the Mercedes Car Group Jurgen Schremp wondered if the image of Mercedes is too conservative and not to add some "peppercorns" to it. However, this idea was still abandoned: “split personality” would damage the integrity of the image of one of the world's oldest automakers. Going beyond the traditional image could be perceived as an unnatural step, could cause bewilderment of the buyer and lower the brand's status, because Mercedes remained itself - boring, but respectable.

"Boring" and lack of fresh energy, according to Aaker, is another inevitable drawback of mature monobrands.

Thus, the mono-brand strategy is to "lengthen" the product line in a given image segment and no unexpected leaps. According to experts, expanding the range of a strong brand within homogeneous / related product categories is a reliable and relatively low-cost strategy, but it does not provide much potential for diversification: the brand exists within a relatively narrow framework.

Two (three, four ...) under one umbrella

There is a way to provide the brand with additional ways of self-expression: through various subbrands... A subbrand (family, subsidiary, or umbrella brand) is a brand that represents a separate product (or a line of products), different from the parent, but retains a direct connection with it. A sub-branding strategy is used when a company wants to strike a balance between a strong, established aura of a parent brand and a fresh new sub-brand charm that can be directed to clearly differentiated target groups. Consumers are expected to think something like this: if a new brand is the brainchild of a reputable and respected parent, it should be bought.

Umbrella architecture, as a rule, emphasizes the dominance of the parent brand over the sub-brand, transfers the image and positive properties of the "mother" to it: for example, HP Deskjet printers from NOT It happens that the parent and subsidiary brands are equal - for example, Sony Walkman, where both components clearly identified by the buyer: Sony as a pioneer in electronics, Walkman as the world's first digital music player. It happens that sub-brands almost outgrow the parent brand and are perceived as independent, although they do not lose connection with it (for example, Celeron from Intel).

Experts identify several options for the formation of an "umbrella". First, the name of the manufacturing company acts as a unifying brand for products of the same / different categories (Sony, Panaconic, LG). Second, several product lines are produced under one of the company's successful brands (for example, Beiersdorf produces skin care products, hair care products, etc. under the Nivea brand). The third option - a "link" to the parent brand (Nescafe, Nestea, Nesquik from Nestle) is included in the company's sub-brands.

The main advantage of the umbrella strategy is that the "promoted" parent brand automatically gives strength to sub-brands, extends its quality mark to them. According to a representative of the advertising group Depot WPF, if a customer knows Nestlе as a manufacturer of delicious and high-quality chocolate, then this perception can be easily "stretched" into cookies and waffles. According to some experts, the “promotion” of a sub-brand may require 30-50% less funds than the introduction of a new independent brand. Another plus: retail chains are more willing to accept for sale a new product associated with a popular brand than a completely unknown one. In addition, sub-branding provides a more targeted appeal to the target audience, business diversification and support for the main brand (for example, crackers in addition to already produced beer).

The right sub-branding strengthens the underlying brand significantly. However strong the parent brand may be, it is dangerous to subbrand in categories that already have powerful players. When Xerox, the leader in the copier category, tried to enter the computer market dominated by IBM and other IT companies, the Xerox brand suffered. A similar situation happened with IBM when it tried to produce copying equipment (although it retired in time). Therefore, when choosing a sub-branding strategy, it is very important to determine which product categories to expand into. For those markets in which the company plans to stay seriously and for a long time, to fight for leadership, it is more expedient to create independent brands.

Subbranding has a significant drawback: if even one subsidiary brand causes a negative reaction, this will be reflected in the parent brand. According to experts, sub-branding, like mono-branding, is a risky placement of all market capital in one basket. An additional inconvenience of subbranding is the increased risk of “accidental purchases”: the shopper, confused by the variety of products and the identity of the packaging, often buys the wrong product of a known brand (for example, a recently launched tonic for dry skin instead of the usual universal lotion). According to experts, angry customers often do not forgive their favorite brand for not protecting them from mistakes.

Another disadvantage of umbrella architecture is that it requires a lot of funding, and it becomes more difficult to manage a growing system of sub-brands over time. The risk of competition between subsidiary sub-brands leads to the so-called cannibalization of individual sub-brands (“eating” their market share). The main danger of subbranding is the dilution of the main brand. If a brand has been associated with a certain image and product type for a long time, creating sub-brands in another or even a related category can mislead the buyer. When young people want to quench their thirst, they buy Sprite (youth image, famous slogan), but if some sub-brand associated with Sprite began to produce baby cereals, it would be less associated with youth drinks.

When multi-branding is appropriate

It happens, however, that the company, for whatever reason, considers it necessary to release a new product that is not typical for it. If a new product is not able to adequately reflect the traditional image of the main brand, such a move is disastrous for it. For example, in 2004, Harley-Davidson was recognized in Tipping Sprung's annual branding rankings for “Best Brand Expansion” for its signature boot that delighted its many motorcycle buyers. However, already in 2005, Harley-Davidson figured in the category of "worst brand extension": a brand associated with muscular guys on cool motorcycles offered its customers Harley-Davidson confectionery decorating kits. Business Week quipped about this: "Imagine a burly macho, covered in tattoos, wears an elegant apron with white polka dots over his leather jacket with metal rivets and begins to decorate the cakes." In 2002, Maxim Hair Color, a magazine for young successful men, launched the men's line of hair dyes Maxim Hair Color, which was also called an unsuccessful expansion of the brand. Although the names of the shades emphasize the macho image ("Desert Storm" - for blondes, "Red Rum" - for brown-haired people), in general, readers of the magazine would not want to be associated with men who lock themselves in the bathroom in the evening and dye their hair - at this time they have fun in the company of beautiful interesting women and friends. The production of paints was stopped, but the feeling of absurdity did not disappear immediately. Maxim has changed: by 2010 it promises to open a chain of characteristic casinos and hotels "in the style of Maxim".

Negative comments and annoyance of regular customers can be avoided by turning to a multi-branding strategy, creating independent brands for new products. Multibranding- maintaining several independent (individual) brands that exist separately, regardless of the main brands of the company. The advantage of individual brands is that they do not dilute the parent brand and do not transfer possible negative emotions from their customers to it. They help to avoid awkward (as in the case of Harley-Davidson and Maxim) or unfavorable associations. For example, the German Bayer is associated primarily with aspirin, so the decision of the company to produce pesticides under the same brand would not be liked by drug buyers. The multi-brand architecture also allows for more flexible distribution channels. For example, Schwarzkopf & Henkel sells conventional Schauma-branded hair care products through retail chains, and Seborin-branded medicated shampoos through pharmacies, which provide functional positioning and better targeting.

Multibranding also has a problem side: a large number of brands require significant maintenance costs. Opponents of multi-brand architecture argue that it is more profitable for a company to have one strong brand, represented in many markets, than several independent, albeit successful, brands. Maintaining one strong brand is certainly cheaper, but it is hard to believe that Unilever could produce mayonnaise under the Domestos brand, or Masterfoods - chocolate bars from Whiskas. But there are also successful examples of promoting different types of products under one brand. For example, British Virgin was able to combine air and rail transportation, CD sales, publishing, perfumery, cosmetics, clothing, soft drinks under one brand. However, all these categories are firmly united by the common philosophy of the brand: fun, curiosity, communication, a certain lifestyle. When in Russia more than 200 different goods, from vodka to biscuits, began to be sold under the Dovgan trademark, there was a failure, since there was nothing in common between dissimilar products. If a multi-branding strategy was used (in particular, it was advisable to separate vodka into an independent brand), the collapse could have been avoided.

The disadvantages of multi-brand architecture include the fact that with an increase in the number of independent brands of one company, the likelihood of competition between them in adjacent target segments increases. To prevent this, it is recommended that you do not split your target audience into extremely small segments.

Co-branding: two minds are better

Co-brand(co-brand, or joint brand, from the English co-brand) occurs when two or more brands decide to combine their efforts and get additional benefits from this (mutual strengthening of the image, sales promotion). The term co-branding is applied to a wide range of joint activities: sponsorship, industrial partnerships, joint promotions. Participating brands remain independent and retain their names, but at the same time reinforce each other, mutually enrich, exchanging positive characteristics. The power of co-branding is in synergy. In one experiment of the American Marketing Association, 20% of respondents said they were ready to buy Eastman Kodak digital video products, another 20% - similar Sony products. When people were asked if they would buy digital video products branded jointly by Sony and Eastman Kodak, the response rate reached 80%.

If co-branding participants invested in creating and promoting a “newborn” brand, the potential for value creation would be minimal compared to what can be achieved by combining existing “adult” brands. Therefore, co-branding is not even a way to conquer the market. This is the use of an already existing status to develop market success. For successful co-branding, participating brands must be popular with customers, have a clearly identifiable face, and embody the philosophy and values ​​accepted by the consumer audience. The essence of co-branding is to reinforce and promote these values, as well as create a new product that goes beyond the capabilities of individual brands. As a result of successful cooperation, an effect is achieved that neither side could have achieved alone. For example, French brand Tefal, a leading cookware manufacturer, has teamed up with Cordon Bleu, a French culinary academy to promote its new high-quality products, Integral, a brand that embodies the highest culinary standards. In their joint campaign, the academy's chefs used and endorsed Tefal Integral cookware, which firmly linked the brand to gourmet cooking, and the Cordon Bleu Academy reaffirmed its commitment to high quality products; sales of co-branded products were very strong.

With co-branding, it won't take long to convince the buyer of the benefits of new products - this function will be automatically performed by the brands themselves, but it is important to build an impeccable logic of the joint proposal. The advantage of co-branding is that this collaboration is not infinite, and the parties are free in their actions to fulfill their obligations under the project. The limiting factor is that not every brand, even a well-known brand, can be a co-branding partner. It is necessary that co-brands have the same "weight categories", that is, they are in harmony in status and express similar values ​​that do not contradict.

For example, in July 2006, the sports brand Nike and the high-tech brand Apple created a joint new product, the Nike + iPod Sport Kit, which the companies said will help people run differently. A miniature sensor can be placed in the outsole of the new Nike + Special Edition to send information about running speed, distance and calories burned to Apple's iPod. The runner can listen to his favorite music and receive information about his results in real time. Nike has developed a comfortable wrist strap with a case for a small iPod with 1,000 songs, and Apple's iTunes online music store has a reserved shelf for Nike Sports Music, which can be downloaded by fans of dynamic walks. Already the first sales results are good, but the project has a huge potential for success largely due to the successful composition of the participants. Nike has for many years embodied the philosophy of activity, movement, determination, it is called a revolutionary sports brand. Apple is at the forefront of science and technology in the 21st century, as well as dynamism and dedication. Both brands have a powerful aura, and the combination of their efforts creates a collective message: "If you are dynamic and purposeful, you use modern technology."

Thus, co-branding is a relatively inexpensive way to leverage the high status of participating brands to promote products. However, it requires accurate selection of partners, 100% confidence in their reliability and active management of the joint brand.