Branding Tech - Lessons from Brand Leaders

One has to learn from brand leaders when it comes to branding. Technological companies can
learn lessons from them in order to build better brands and achieve their business goals. Brand
leaders have switched from tactical and reactive approach to strategic and visionary approach.
Technology sector is one in which innovation, movement, new products and developments take
place at a rapid pace so the tactical approach does not work. Brand leadership will be achieved
only when it is realized that building brands take a long-time. A brand champion is one who
understands that consistency creates connections, which can withstand market commotion. Solid
positioning and competitive differentiation is affecting the brand equity and brand leaders who
have realized this are moving from brand image to brand equity.

Some of the brand leaders follow the multi-product and multi-market approach but they have to
be aware of the complexity of brand architectures, which is an organized event. Brand is the
central focus of the enterprise according to brand leaders. By this brand leaders ensures that brand
lives beyond the image and pay-off. Brand is living nerve, which runs through the customers at
every touch point and makes sure the congruency between the brand promise and business action.

Experts have realized the significiant effect of the words and action of a business leader on the
brand. Most of the emerging companies can learn a great deal from traditional companies, which
lead their category. A brand like Coca-Cola can show the importance of clear and recognizable
identity. A brand like Me Donald's can show the supremacy of consistency. One can learn how
emotional relationship can be created from Harley Davidson and a brand like Marmite teaches the
importance of building lasting relations. These brands also teach how to change without
sacrificing inner core, how they can sustain in bad market conditions and also solve modern
market dilemma, where all products are same and brand image drives the consumer's loyalty and
choice.

Insights

 Managing brands on a stand-alone basis does not always result in the optimum value for
the company as a whole. Instead managing brand portfolios would lead to a better-organized
and efficient management of brands from the company's point of view.
 Brand portfolio at its most exhaustive level includes all the brands that influence the
customer's purchase decision even if they are not the company's brands, because ultimately
the brand influences this decision.
 Brand portfolio molecule is an objective, graphic presentation of the various brands. It
represents the core brands, the strategic brand and support brands. The graphic representation
helps in making objective analysis and implementation of the various tools of. brand portfolio
management.
 Brand portfolios are like snowflakes; no two look exactly alike, behave exactly alike or
are exactly alike.
 One of the biggest influences on a brand portfolio is the management approach behind it.
  In the arena of brand portfolio management it pays to make a careful analysis of the
various ‘what if’ scenarios before implementing a decision.
 Brands are assets for the company, hence calculating and understanding their risk-return
characteristics is of importance.
 Brands are infinite assets in the sense that they are timeless and their lore lasts longer, in
fact crossing generations.
 Strong brands have an effective marketing program and have more leverage with the
customers.
 A brand's strategic importance and the role it plays in the overall state of affairs at the
company should determine the future of the brand.
 Brand extension is the simplest and oldest tool of brand management. In this context, it is
better for a company to cannibalize its own brands than to have them successfully attacked by
other competitors.
 While pruning brands, the best practice would be to cut decisively. Allowing brands or
portfolios to "wither away" is seldom successful.
 Good portfolio management of brands will roll up the value between brands and create
value in the empty spaces where no value existed previously. It will open whole new vistas of
brand value.
 The more intense the competition, the more valuable the brand in relative terms.

Why Brands are Becoming More Valuable and More Vulnerable

The cost of building up a brand is very high and not all companies are successful in building up
their brands even after spending huge amounts. Thus the protection of brands is very important.
Companies invest a lot of money in building up brands and the cost of ignorance or muddled
thinking about brand can have adverse result on the financial performance of the organization.
Brand risk is multi-faceted and can be conducted effectively only when all the risks are identified,
measured and managed in an integrated manner. Brand risk has no definition of its own but can
be defined as the sustainability of current and future demand for a company's products or services
from the stake holder’s point of view. Brand risk can be generated by company's own conduct,
behavior of customers, political or community opposition to a company that might limit its ability
to develop or transact business. Differentiators like safety, competency, trust and market related
changes are the various dimensions of brand risk, which might affect brand directly or indirectly.
Brands are becoming more susceptible as brands are being stretched across a number of products
or services and brand failure in one area can't spoil awareness of brand in other areas. Brand
stretching will be harmful when the brand crosses its boundaries and loses powers. Value
concentration i.e., profits from one product, product substitution, and outsourcing are the reasons
for vulnerability.
Companies can make a risk management strategy that addresses all the threats to its brands by
adopting these steps. Firstly, they have to evaluate the brand and assess its strengths and
weaknesses in the context of strength. Secondly we should not confine brand to customer
perceptions only. Employee's perspective is also important. Then we have to measure the risks to
the brand by incorporating brand risk into broader area covering all the major strategic, and
operational hazard, and financial risk to the company. We have to use external and internal risk to
evaluate and implement the risk management strategy.