How To Create A Brand?
There are four effective steps in brand development strategy to create a brand:
Choose the brand name and logo
Establish the brand in the minds of customers
Develop the brand
What Is Brand Equity?
How to create a Brand is
no way different from founding your business. It takes time. Gradually
you can create Brand Equity. Brand equity is the differential effect
when consumers react more favorably to a brand than to a generic or
unbranded version of the same product. Whenever we think of buying a
smartphone the very first name strikes us is – the iPhone. Ask why? It’s
because of comfort and authenticity delivered by iPhone to its users.
throughout their years of research and experience has created a state
in our mind of ultimate luxury and comfortability in using their
products. There may be a few more similar products of others in line
with Apple iPhone and may be superior to that, but the identity of
iPhone gives it the edge over others- no matter what the price tag is.
This edge is the Brand Equity.
4 Steps of Brand Development Strategy
1. Choose the Brand Name and select the Logo:
building a brand development strategy name plays a vital role. A good
name and style can add positives to a product’s success. It is the most
difficult task to start with. Simplicity is the first step. The name
should be easy to pronounce, recognize and remember. Moreover, it should
suggest something about the product’s benefits and qualities.
like Google, Nike, Facebook, Apple, KFC etc. are among the most
established brands all over the world. Interesting fact about those
names is that they are easily translatable in different languages around
the world. Hence the meaning of a particular word should not be
something which indicates bad, wrong or negative.
Again the name
should be extendable to cover up multiple product lines. For example,
Amazon.com started its business with bookselling and now has been
extended to multiple product categories.
Once chosen, the brand
name should also be protected. Means in many instances brand names were
eventually mixed up with the product category and people cannot
differentiate the brand identity from the product category.
example, Xerox is a company builds copier machines, but doing a
photocopy is often termed as doing xerox.’Xerox’ is to be pronounced as a
noun and not as a verb. Many people find it hard to distinguish between
the product and the service which ultimately hampers the brand name of
2. Establishing the brand in the minds of customers:
interesting saying by a marketer- Products are created in the factory,
but brands are created in the mind. This can be done in multiple ways-
At the basic level, it starts with introducing the target customers the
product and its distinguishing characteristics.
Let’s took the
example of Amazon’s Kindle- e-book reader. Amazon targets its customers,
saying that it’s an e-book reader having a distinguished feature of
reading books in a virtual format. In this stage, they are simply
introduced with the product and has a very low level of impact.
more effective way a brand can be positioned by associating its name
with desirable benefits. Thus, Kindle is beyond an e-book reader- it is
lightweight, on the go dictionary, stores thousands of books which are
easy to search, no glare and zero distractions.
brands go beyond establishing features and benefits in customers’ mind
and positions itself on strong values and beliefs, rooted to a deep
emotional bonding. Like reading books in Kindle is an absolute pleasure
and presents itself as booklover’s new best friend. When placing a brand
in human mind, the marketer should establish a mission for the brand
and a vision of what the brand must be and do.
3. Brand Sponsorship:
Brand sponsorship can be of three types:
Private Brand sponsorship
Licensed Brand sponsorship
Private Brand Sponsorship:
advertisements and social marketing strategies work behind the big
brands to emerge and are termed as National brands. But for smaller
Companies, it may not always be possible to endorse brands with a huge
out of pocket expenses. In those scenarios, brand sponsorship is very
important. As against National or Manufacture’s brands, there are Store
brands. In recent decades store brands are gaining more from the market.
Big shopping malls like Big Bazaar, Walmart resale
products at significant discount rates especially the generic or no-name
brands. They endorse the products citing its advantages or putting side
by side comparison with the top brands. The association of the big
resellers with less known products works as an aid in uplifting the
brand value of the product once termed as ‘no-name’.
sponsorship is also followed in online shopping too. As we can see
small or lesser known mobile manufacturers are recently tying up with
Amazon to sell their phones. In fact, this strategy is working great as
the ‘no-name’ brands are getting the support of the big brand stores be
it online or offline.
Licensed Brand Sponsorship:
this brand sponsorship, some companies buy the names and symbols of
other manufacturers or creators with a fee and endorse its products
under such brand name. This is a common thing in the fashion industry
like Calvin Klein, Tommy Hilfiger, Gucci, Armani etc., where the
Companies are using the names and initials of well-known fashion
innovator. This type of branding turns out as an added fillip but with a
pinch in the pocket.
such a brand sponsorship strategy, to established brand names of
different companies are used on the same product. Because each brand
dominates in a different category, the combined brands create broader
consumer appeal and greater brand equity.
For example, Bajaj
Allianz Life Insurance where Bajaj is a dominant player in the
automobile sector and Allianz is a German financial service major. Now
since Bajaj wants an entry in the insurance sector and Allianz wants an
entry in the Indian market, they jointly made a brand ‘Bajaj-Allianz’ to
reap the fruits of the Indian insurance market.
carries some limitations too. Such relationships usually involve complex
legal contracts and licenses. Co-branding partners must carefully
coordinate their advertising, sales promotion, and other marketing
efforts. The onus lies on both the partners to carry the co-brand with
trust and dignity.
4. Developing Brands:
augment the brand equity it is very important to prepare a brand
development strategy incommensurate with changing business scenarios.
There is no hard and fast rule to dictate over.
name of a product can be extended to an existing line of products to
accredit new forms, colors, sizes, ingredients or flavors of an existing
product. However, line extensions involve some risks. An overextended
brand name might cause consumer confusion or loss some of its specific
It happens when a
current brand name is extended to a new or modified product in a new
category. For example, Nestlé’s popular brand of noodles Maagi has been
extended to its tomato ketchup, pasta, soup etc. A brand extension gives
a new product instant recognition and faster acceptance. But one should
be careful while extending brand as it may confuse the image of the
offers a way to establish different features that appeal to different
customer segments, lock up more reseller shelf space and capture a
larger market share.
For example, a reputed company sells multiple
varieties of soft drinks under different brand names. These brands are
fighting each other to reign the market and as a result, they
individually may have a smaller share of a pie, but as a whole, the
Company is dominating the soft drink market. The major drawback here is
the individual brands obtain only a small market share and may not be
Brands are not created in a day or two; you ought to have the patience to grow it. The above – mentioned points suggest some best practices to build a brand, but the real test begins in the field. Brand development strategy differs from place to place, even urban branding and rural branding are way different in their practical applications. Remember that behind a successful brand development strategy, there lie lots of endeavors, a vividly clear vision and above all an uncompromised quality of product or service.