Assignment

By

Sahithi Paruchuri, 1701137, L.H. - 14

The Importance of Branding and Rebranding for
Strategic Marketing
Branding is steadily getting significance as every year passes by. A declaration in this setting is
the making of the Marketing science Institute in 2002; additionally, at the appropriate time of time,
Branding Strategy was limited to simply items or administrations has turned out to be prominent
to the point that it has turned into a vertical independent from anyone else in Strategic Marketing.

The objective or target of Branding is in accordance with that of Strategic Marketing i.e. making
an upper hand or edge in the market, in the long haul. The unmistakable quality of a brand is known
by the way that a brand improves the estimation of an organization, as it were, to the tune of about
7% of the offer estimation of the organization, whenever oversaw appropriately.

In money related viewpoint, mark value is the exceptional that a brand directions well beyond the
first presumptive worth or the market esteem. To cite a precedent, the Walmart's obtaining of
Flipkart's lion's share controlling offer was considered as Walmart over buying in and over paying
for getting the equivalent. This could happen simply because Flipkart had a decent brand value in
the Indian market. In the event that Flipkart had less brand value or brand esteem, Walmart would
have paid far lesser than $16 Bn. or would not have thought about assuming control over the
organization. That demonstrates the conspicuousness of brand value.

Brand extension is when a brand leverages its popularity and familiarity in the customers’ minds
to introduce a new brand on its side-lines. One such example could be the Galaxy Note series by
Samsung, in the mobile segment. Samsung itself is an established brand, but it has taken special
efforts to create a community and following for the brand “Galaxy Note” series. In the event of
any company restructuring and consolidation, it is possible that Samsung could sell off only the
‘Note Series’ within its SBUs as it has a great Brand equity by itself and could fetch an amazing
deal for the company.

An organization can have a focused edge just for certain length of day and age as the opposition
would not be a long ways behind and would in the end get up to speed with the market pioneer.
Thusly, organizations must make utilization of the edge however much as could reasonably be

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 expected and proceed to advance and make further novel and extraordinary highlights in their
items and administrations which the clients find alluring, subsequently helping the organization to
keep the aggressive edge unblemished, within a reasonable time-frame.

The opposite of the previously mentioned technique that can prompt an organization's defeat is
'Promoting Myopia', wherein, an organization is so focused on its items alone, deprived of what
the opposition is advancing on and in this way lose the piece of the pie. The best guide to refer to
that is in simultaneousness with this is – Nokia. The organization Nokia had incredible things
making it work and was the market pioneer in nations like India and couple of different nations
too. In any case, Nokia was so separately focused on simply enhancing its item and administration
contributions to the most ideal degree and endeavoring to stay in the best recognize that it didn't
factor in the opposition and their progressions in the market outside the organization's four
dividers. In the end, this prompted its items getting to be out of date or non-particular and not as
much as standard to that of the contenders'. Furthermore, thusly was left for takeover by different
organizations.

Branding itself is a humungous undertaking which can just let us know, the amount progressively
complex “re-branding” would be. Re-branding is the way toward reshaping the picture of the
organization in the brains of the general population, with the end goal that the clients and the
partners everywhere would see the organization uniquely in contrast to what they used to, up to
that point.

This would help the company to

i. Attract new customers,

ii. Set the company in tune with any huge changes within the organisation or the market

iii. Venture unchartered territories, and more.

Pizza Hut is a good example of Re-branding. In the last decade, Pizza Hut suffered from stiff
competition on many fronts. Restaurants and other food outlets offered pizzas ranging from
different flavours and different prices. They served pizzas quick and cheap. But, Pizza Hut’s pizzas
were neither instant nor affordable. Eventually, the chain fell out of favour and lost considerable
market share.

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This led to a huge changeover and rebranding, on the part of the company. In 2014, Pizza Hut
rebranded itself and came out with a modern logo and a ‘Flavour of Now’ menu. On doing a study
with the food truck owners, the company realized that the youth wanted more local and indigenous
flavours of pizza, which resulted in the creation of the new menu to cater to the changing tastes
and preferences of the younger generation.

To sum up the case study in few words, the prominence of ‘Branding and Rebranding’ is crucial
and necessary for the survival of a company in this fast changing and cut-throat competitive world
of today. Those firms that can leverage the best out of the Brand’s value in the market and alter it
to suit the requirements of the company and the customers will outlast the competition in the long-
run.