fashion brand management notes

7/27/2019 Fashion Brand Management Notes

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Brand equity, Brand awareness, association, loyalty, Perceived quality, Other

proprietary assets, Strategy and policies to develop brand equity

The value of a brand referred to as its equity is determined by a number of influences

and factors. In combination, these increase both the market value of a brand as well as the

measurable value to the business. This is important for any business as it determines whatthe brand is worth if the brand is bought, sold or licensed and also provides a business case

for investment in the brand whether seeking funding from external investment or

pitching for support from the business itself.

Brand equity is a set of assets (and liabilities) linked to a brand that adds to (or

subtracts from) the value provided by a product or service to a firms customers.

Components of Brand Equity are:

Awareness Perceived Quality Brand Associations Brand Loyalty Proprietary Brand Assets like trademarks , patents , channel relationships

Brand Awareness

Brand awareness is related to the strength of the brand node in memory, as reflected byconsumers ability to identify the brand under different conditions. Brand awareness

consists of 1) brand recognition reflecting the ability of consumers to confirm prior

exposure to the brand and 2) brand recall reflecting the ability of consumers to retrieve the

brand, when given the product category, the needs fulfilled by the category, or some other

type probe as a cue.

Brand awareness can be characterised according to depth and breadth. The depth of brand

awareness concerns the likelihood that the brand can be recognised or recalled and the

breadth of brand awareness relates to the variety of purchase and consumption situations

in which the brand comes to mind.

Brand associations

A brand association is any mental linkage to the brand. Brand associations may include,

e.g., product attributes, customer benefits, uses, life-styles, product classes, competitors

and countries of origins. The association not only exists but also has a level of strength. The

brand position is based upon associations and how they differ from the competition. An


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association can affect the processing and recall of information, provide a point of

differentiation, provide a reason to buy, create positive attitudes and feelings and serve as

the basis of extensions. The associations that a well-established brand name provides can

influence purchase behavior and affect user satisfaction. Even when the associations are

not important to brand choices, they can reassure, reducing the incentive to try other

brands.

Brand associations may take different forms. One way to distinguish among brand

associations is the level of abstraction, that is, how much information is summarised or

subsumed in the association. Within this dimension, the types of brand associations can be

classified into three

major types of

increasing scope:

1) attributes, 2)

benefits, and 3)attitudes. Several

additional

distinctions can be

made within these

types according to

the qualitative

nature of the

association. Figure

3 illustrates the

main types of brand associations.

Brand loyalty

Brand loyalty represents a favorable attitude toward a brand resulting in consistent

purchase of the brand over time. It is the result of consumers learning that only the

particular brand can satisfy their needs. Two approaches to the study of brand loyalty have

dominated marketing literature. The first, a behavioral approach to brand loyalty, views

consistent purchasing of one brand over time as an indication of brand loyalty. Behavioural

measures have defined loyalty by the sequence of purchases and/or the proportion of

purchases. Repeat purchasing behaviour is assumed to reflect reinforcement and a strongstimulus-to-response link.

The second, a cognitive approach to brand loyalty, underlines that behaviour alone does

not reflect brand loyalty. Loyalty implies a commitment to a brand that may not be

reflected by just measuring continuous behaviour. A family may buy a particular brand

because it is the lowest-priced brand on the market. A slight increase in price may cause


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the family to shift to another brand. In this case, continuous purchasing does not reflect

reinforcement or loyalty.

Perceived quality

Perceived quality can be defined as the customers perception of the overall quality orsuperiority of a product or service relative to alternatives. Perceived quality cannot

necessarily be objectively determined, because perceived quality itself is a summary

construct.

Perceived quality is valuable in several ways. In many contexts, the perceived quality of a

brand provides a pivotal reason to buy. It is influencing which brands are included and

excluded from the consideration set and which brand is to be selected. A principal

positioning characteristic of a brand is its location within the dimension of perceived

quality. A perceived quality advantage provides the option of charging a premium price.

The price premium can increase profits and/or provide resources with which to reinvest inthe brand. Perceived quality can also be meaningful to retailers, distributors and other

channel members and thus aid in gaining distribution.

Other proprietary assets

Other proprietary assets

such as patents,

trademarks and channel

relationships. If managed

well, these assets addvalue to the product or

service and create

additional customer

satisfaction, which, in turn,

provide a number of

benefits to the firm.

The monetary value of a

brand or its equity is

a total measure of thebrands impact on both

the company and its

market. This

measurement is

represented by its


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constituent elements in the diagram (right).

Determining the value of a brand is also important in business deals where the brand is

licensed. What is a brand worth when one company may license the brand of another,

particularly if the host company is providing other benefits rather than the brand itself?

Fashion and interior designers have long played on the equity of their own brands. It is a

common tactic for top designers to lend their name, and specific designs, to department

stores or retail brands. When international supermodel, Kate Moss, teamed up with the

iconic fashion retail shop, Topshop, she effectively licensed her image, as her audience buys

into her look her design skills are less important than her image. Moss signed a 3

million deal to design her own collection and, since its launch, her ranges have immediately

sold out. Designer, or supermodel, collaborations may be expensive but can greatly boost

the image of the host brand.

Strategy and policies to develop brand equity

The literature review reveals further that brand equity provides value for both the

customer and the firm. Brand equity creates value to customers by enhancing efficient

information processing and shopping, building confidence in decision making, reinforcing

buying, and contributing to self-esteem. Brand equity creates value to firms by increasing

marketing efficiency and effectiveness, building brand loyalty, improving profit margins,

gaining leverage over retailers, and achieving distinctiveness over the competition.

Building Brand Equity

Brand equity is built firstly, by creating positive brand evaluations with a quality product,

secondly, by fostering accessible brand attitudes to have the most impact on consumer

purchase behaviour, and thirdly, by developing a consistent brand image to form a

relationship with the consumer.

The first element in building a strong brand is a positive brand evaluation. Quality is the

cornerstone of a strong brand. A firm must have a quality product that delivers superior

performance to the consumer in order to achieve a positive evaluation of the brand in the

consumers memory.

Three types of evaluations can be stored in a consumers memory: 1) affective responses,2) cognitive evaluations and 3) behavioural intentions. Affective responses involve

emotions or feelings toward the brand (e.g., the brand makes me feel good about myself,

the brand is a familiar friend or the brand symbolises status, affiliation or uniqueness).

Cognitive evaluations are inferences made from beliefs about the brand (e.g., the brand

lowers the risk of something bad). Behavioural intentions are developed from habits or


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heuristic interest toward the brand (e.g., the brand is the only one my family uses or the

brand is on sale this week).

The second element in building a strong brand is attitude accessibility. It refers to how

quickly an individual can retrieve something stored in memory. Stored evaluations can be

retrieved from memory in two ways. Automatic activation occurs spontaneously frommemory upon the mere observation of the attitude object. Controlled activation requires

the active attention of the individual to retrieve a previously stored evaluation or to

construct a summary evaluation of the attitude object.

The third element in building a strong brand is to have a consistent brand image.

Consistency of the brands image is a part of managing the relationship between the

consumer and the brand. A relationship develops between the personality of the brand and

the personality of the consumer with each purchase.

Brand Equity Valuation Brand valuation cost base, market based, customer based,Inter Brand, Y & M BAV

Young & Rubicam

International advertising agency, Young & Rubicam, have a well-known model called the

Brand Asset Valuator (BAV) that is based on what consumers think about brands. It tracks

the consumer equity value of a brand, which is gauged from a comparative measure

against its competition, based on an annual survey of 38,000 brands across the world. It is a

valuation that also ties in with financial analysis so that the brands contribution to a

companys value can be determined.

BAV works in the following way: the BrandStrength is based on differentiation (D in the

facing diagram or powergrid, signifying the extent to which a consumer will choose that

brand) and market relevance (R). This creates the brands future value. In contrast,

lagging indicators, which show the Brands Stature, are based around the brandsesteem

(E) and knowledge (K). Together, these four aspects of the brand demonstrate a pattern

that can determine where the brand fits in the marketplace.

Brands at different stages of their life will tend to show similar patterns for example, a

young, recently launched brand will have low scores overall, while a new brand with

strength will display strong levels of differentiation but not relevance. This methodology

not only helps to gauge a brand against its competitors and better understand consumer

perceptions, but also reveals whether the brand is in a healthy position to be extended.


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Differentiation (Point of difference , How is the brand different from the restof the world, What does it offer which others are not offering)

Relevance (Is it relevant to significant segment, does it attract a largecustomer base , house hold penetration)

Esteem (Quality perception ) Knowledge (What brand stands for, awareness , recognition , recall)


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equity ultimately depends on what resides in the minds of consumers. Third, the

differential response by consumers that makes up the brand equity is reflected in

perceptions, preferences, and behaviour related to all aspects of the marketing of a brand.

The 4 Fundamental Questions

Who are you? (Brand Awareness) What do you do? (Brand Knowledge) What do I think about you? (Brand Attitude) What about you and me? (Brand Relationship)

Quantifying the value of a brand:


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Interbrand is an international branding agency best known for its brand strategy and

evaluation abilities. The company pioneered measuring techniques for branding in the

1980s during the era of some high-profile mergers and acquisitions (M&As) of brands that

were formerly not recognised for their values. It has also been an important leader in

progressing the idea of branding from straight identity work, such as logo and naming

development, to making the value of brands a key part of business and an important

business asset.

Each year, Interbrand releases its top 100 brand ranking list. Companies are measured

according to the brands international presence, financial data and potential future

earnings. Interbrand then quantifies a net value for the brand. Applying this kind of hard

and factual criteria to brands has strengthened the role of brands within business.

Interbrands

Interbrand has a well-recognised brand valuation approach that has been established for anumber of years. It attempts to apply quantitative and objective measures to rank the

worlds top brands. However, certain criteria must be met for the brand to be included: its

internationality and turnover (Interbrand only considers large global brands), its audience

and the data available and so some well-known global brands (such as the BBC) will

therefore inevitably be left out. Interbrand looks at three key areas in their brand analysis:

a. Financial forecasting

The revenue that is generated from products and services. Interbrand analyses both the

tangible and intangible assets of the business to determine their Economic Value Added(EVA). In Interbrands Best Global Brands report of 2008, EVA is described as a value-

based management concept. It determines the ability of the (branded) business to

generate returns above what is invested into the business. To calculate this, Interbrand

identifies the branded revenue that is generated from products and services. It then

deducts the brands invested capital such as its operating cost, employment bill and taxes

to get the economic value of the branded business.

b. The role of branding

This identifies business earnings that are attributable to the brand. This is dependent on

the sector in which the brand operates, as the brand may be a key driver for purchasing in

the fashion or fragrance sector, but may only be one attribute of many in the business-to-

business sector.

For example, while Intel has a strong brand, many people will be using it because of its

bundling with Windows-based computers, rather than necessarily choosing to purchase an

Intel-based computer.


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c. Brand strength

This assesses the risk profile of the current brand value. A risk profile may look at a brands

future vulnerability in its particular sector (for example, retail banking brands are

particularly vulnerable during the creditcrunch period as people have lost trust in these

brands). This risk factor is discounted from the brands current value. There are a numberof factors that are accounted for in the measurement process:

the brands leadership, stability, market dynamics, internationality, trends, support

and protection. In 2008, Interbrands top five brands were (in descending order) Coca-

Cola, IBM, Microsoft, GE and Nokia respectively.

Interbrand, a UK based consulting co. Criteria includes business prospects and brands market environment, as

well as consumer perceptions

Brands evaluated on 7 criteria: Leadership (25%) Stability (15%) Market (10%) International (25%) Trend (10%) Support (10%) Protection (05%)

Strategies to manage Fashion Brands Brand architecture, Corporate Branding,

Endorse Branding, Range Branding, Line Branding, Source Branding

Brand structures

Brand structure is also known as brand architecture and provides a map of relationships

between all of the brands in a companys portfolio. It helps companies to define the

relationship between the different brands and provides an overview that is easily managed.

The brand structure will cover a picture of the whole brand family, including the

relationship between the parent brand and its sub-brands, the relationships among sub-

brands themselves and also to brand extensions.


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A brand structure helps the brand manager understand the role and contribution of each

brand to the overall success of the business. It can facilitate decisions on how to invest in

specific brands, or whether they should be disposed of, rebranded or retired. It should also

offer a clear view of which brands are owned by whom, as well as the distinctive benefits of

each brand.

Types of brand structures

Brand structures are not necessarily visible to the customer and may not impact on their

choice of brand. For example, large consumer-goods companies such as P&G or Unilever

both own a number of different fast-moving consumer goods (FMCG) brands (including

toiletries and home care products like washing powder). Brands within the same family

may also compete with each other for the consumers wallet.

There are 6 Branding Strategies:

1. The Product Brand This strategy involves assignment of a particular name to one, and only one,

product.

Each new product receives its own brand name and a unique positioning. Here, the brand, the name of the product becomes a strict indication of identity. E.g. Procter & Gamble and HLL

2. The Line Brand

This strategy involves offering one coherent product under a single name, byproposing many complementary products.

This involves offering one product, and then extension of the offer by includingseveral related products within the same specific offer.

E.g. Studio Line from L'Oreal3. The Range Brand

Range brands bestow a single brand name and promote through a single promise arange of products belonging to same area of competence.

4. The Umbrella Brand

Under umbrella brand strategy, the same brand supports several different productsin different markets.


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Each product has its own advertising tools and develops its own communication. Yet each product maintains its own generic name. E.g. Canon- Canon cameras, Canon Fax machines, Canon photocopiers, Canon

printers etc.

5. The Source Brand

This is similar to umbrella brand strategy with the only distinction that products aredirectly named. (Instead of a generic name).

It provides a two-tiered sense of difference and depth that is by identifyingsource/ parent brand while at the same time providing a distinct identity through

the daughter brand.

6. The Endorsing Brand

The endorsing brand gives its approval to a wide diversity of products. It acts as a guarantor of quality. It allows dual brand equity to develop. Brand endorsement can be indicated in a graphic manner by placing the

logo/emblem of endorser next to brand name.

E.g. Nestle, Polo Ralph Lauren

The corporate brand

The corporate brand role depends on how prominent the company is in the brand

proposition. It may include elements of social or business conduct, the relationship with

suppliers and distribution channels and also be the employee brand (or internal facing

brand). Pure corporate brands are rare, but include companies such as General Electric

and Philips, where all the products reflect the same brand as the company. It is the

same as The Umbrella Brand.

Brand Extension & Line extension, Multibrand Portfolios Multi Brand Strategy, Pros

& Cons , power Branding


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WHY EXTEND THE BRAND?

(Benefits of Extension)

To energize the brand & aid innovation- helps identify logical new productcategories.

Helps capitalize paid-for equity in established brand names. Helps enter new product categories at significantly lower costs. Helps beat product obsolescence. Risk reducer for both the firm as well as consumers. Benefits of spillover of advertising. Helps expand core promise to new users. Helps block or inhibit competition.

Types of Brand Extensions

Product Form Extension


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Companion Product Customer segment Company Expertise Brand Image or Prestige

Store Brands v/s Manufactured Brands Private label/Store Brand Strategy, Benefits

for the customers and retailers, Store Brand strategy vis-- vis manufacture Brand


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Six Factors Affecting the Success of Private Brand

Quality of store brand relative to national brands is high.

The quality of store brand is consistent over a period of time.

The product category is large in absolute value terms in stores sales revenue.

The percentage of gross margins in the product category is high

The number of national players is fewer than in other categories.

National advertising expenditure in the product categories is low.

Economics of Private Labelling

The figure has been constructed with the underlying assumption that (a) it is technically

feasible for the store to introduce its own brand (b) the competitive scenario does not

change the position from one quadrant to another and (c) the switching costs for the

consumers are not high, per s .


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Quadrant I: Low-Low

This quadrant represents a situation in store where both types of competition are low.

A category that manifests low competition in both dimensions may be, per se, unattractive

for private label.

Such a phenomenon may be caused by

1.High degree of commoditization

2.Low importance of the product category for the customers

3.High input-output ratio in manufacturing.

The retail store may never enter such a category with its own label

Quadrant II: High-Low

This quadrant represents high competition between the stores brand and the major

National brand and low competition among National brands.

This occurs when consumers affective Attachment to national brands is high and

Achieving brand loyalty is a short-term process.

The retail brand will not suffer from me-too Syndrome.

The store is better off launching its brand.


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Quadrant III: Low-High

This quadrant represents high competition Among national brands but low competition

Between the store brand and national brands.

This happens when national brands are highly advertised and the customers awarenessOf those brands is high, both cognitive and Effective, while facing the store brand on their

Visit to the store.

Therefore, if the store assesses its position In this quadrant, it is better off not launching

Its brand.

Quadrant IV: High-High

This quadrant depicts an all-out competition among the national brands and if the store

Introduces its private label, it will come under Direct fire as much as it will be caught in the

Cross-fires of the national brands.

Therefore, it is expected that a store that Views itself in this quadrant is better off not

Introducing its private label.

Evidently, the quadrants in Figure 1 can be influenced by the strategic approach by the

retailer. For example, if the store reckons itself falling in Quadrant III which prescribes non-

introduction of the store-brand, it can generate competition between its brand and the

national brand by aggressive in-store promotion of its top Private Label versus National

Brands.

This shifts the in-store context from Quadrant III to Quadrant IV in the short-run and

eventually, once customer loyalty for the store brand has been built up to Quadrant II,

which is favourable to the store-brand.

The concept of luxury brands, Luxury Brand, Signature Brand

Globalization of Fashion Brands Audit for the Fashion Brand Global Branding

strategy, Tracking the performance of the Brand

For consumers who are already brand-savvy, luxury names come under one of two

distinct titles: classic brands and high fashion brands. Classic names include Chanel,

Gucci, Salvatore Ferragamo, Balenciaga, Christian Dior, Louis Vuitton and Prada names

that suggest enduring value. Among the contemporary brands that command consumers

attention are names like Armani, Versace, D&G, Moschino, Calvin Klein, Hugo Boss and


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Ralph Lauren. The luxury consumer in profile delivered a fascinating profile of the Indian

luxury consumer, leaning on the latest study by research group KSA Tecnopak:

Primarily resident in urban India

Lives in a household earning more than about INR800,000 (US$18,000) a year, wherethe chief wage earner is male, average age 3637

Owns a premium/luxury saloon car such as a Honda Accord, a Vectra, a Skoda

Octavia etc.

Among women consumers, 65%are housewives

Most are educated to post-graduate level

Incidence of foreign travel is 53%, 44% travelling abroad for holidays at least once a

year.

The KSA study categorizes luxury households into segments according to their attitudes to

luxury goods purchasing:

The Arrived: This is the most affluent group, comprising 49%of the target audience of

luxury goods companies.

The Actualized Ascetic: This group comprises largely self-made men, professionals or

businesspeople who are in their late 40s or early 50s. This is the smallest group (15%of

the target audience).

The Climbers: As the name suggests, this group wants to project a lifestyle image that will

gain them acceptance into the higher echelons of society, yet many lack the discernment

that comes with exposure to luxury brands and wealth over a long period. These are 19%

of the target universe for luxury brands, says the study.

The Laggards: Although well-heeled and targeted by luxury brands, this group remains

nonchalant about luxury goods consumption. This group comprises a high proportion of

college drop-outs and graduates who are in business or work as office executives. This

group is 17% of the target consumer base.

Five key forces that are shaping todays luxury mindset:

Growing incomes coupled with optimism about the future.

An expanding upper class, creating large peer groups and reference groups for aspiring

consumers. The new Indian mindset is deeply rooted in social hierarchy, with those who


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want to make the leap into the higher strata of society imitating the prestige purchases of

those they imagine are above them in the hierarchy.

Money, wealth and consumerism are emerging as the undisputed measures of success

and a life well lived.

First-hand exposure to products and lifestyles overseas. Over 6 million Indians travelled

overseas in 2004: 22% to the US, 24% to Europe and 34% to Southeast Asia

The influence of the media, coupled with the greater availability of lifestyle products and

services in the last five years.

What is a signature brand?

The word signature can be defined as a distinctive pattern, product or characteristic by

which someone or something can be identified. A signature brand is an original, cohesive

design based on the personality of your company that is carried across all print, digital andweb communications.

Why is it important to have a signature brand?

People remember you. People take notice when they see the same unique brand

repeatedly, and they remember you and your company. Down the road, when they need

your product or service, youre the one that they will call first. On the other hand, that

person may never need your product or service, but they may run across a friend, family

member or professional contact who does. Having a signature brand increases awareness

and visibility among your current clients, potential clients and your personal andprofessional networks.

You don't look like the business next door. In this day and age its easy to do it yourself.

There are plenty of inexpensive or free templates online for everything from logos and

business cards, to brochures, catalogs and web sites. The problem with those templates is,

that while they may look nice enough, they arent unique to your business. You will be

using the same template as hundreds of other businesses, and your company wont stand

out. If your brand isnt unique and memorable, and doesn't reflect the personality of your

company, you will miss out on potential opportunities.

It portrays a professional image. Having a signature brand created by a trained graphic

designer makes you look more professional, which increases credibility for your business.

Educated designers go through years of training about the history of graphic design, color

theory, use of typography, photography and study under seasoned designers. There are

sound reasons why we choose that particular placement for the logo, that font, that image

and those colors. All these elements combine to create an emotion that speaks to people
http://www.redsealdesign.com/signature-brands.htmlhttp://www.redsealdesign.com/signature-brands.html


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about your company. The emotion could be traditional, whimsical, progressive or

intellectual. Your signature brand speaks volumes to your audience, so you want to ensure

you portray the right image.

What happens when people remember you, you dont look like the business next door and

you portray a professional image? Your client base rises, your client retention rises, whichin turn helps your profits rise.

The globalization of fashion brands has occurred as major fashion designer houses have

expanded their product ranges and diversified into middle-market diffusion lines. Central

London has been the target for some of this development activity in the 1990s. Charts the

growth of designer outlets in the UK capital with particular attention to foreign companies

and their market-entry strategies.

As countries around the world are starting to recover from the global financial crisis, the

luxury industry is recovering as well. The fastest growing luxury goods are electronicpieces, such luxury mobile phones, and the weakest is travel goods.1 Within the US though,

consumer of luxury goods are starting to become more price-conscious and are buying one-

of-kind items (clothing/accessories/etc) that hold special emotional ties, rather than

expensive, mass-produced luxury goods.2

Despite the comeback, the luxury industry still faces the same challenges as other

industries, including high commodity prices (cotton, leather, silk and cashmere) linked to

natural and man-made disasters (floods in Pakistan and China, flood in Australia, loss of

silk trees from the urbanization of Shanghai, a harsh winter in Mongolia) impacting the

supply chain, as well as high transportation costs due to the rising fuel costs.3

The story and impact of luxury is the story of globalization. This analysis will examine the

history of the luxury industry, the rise of China, and the industrys impact on global culture.

Most clothing, jewellery, and accessory brands, such as Hermes, Louis Vuitton, Chanel, Dior,

Armani, Cartier, Versace, etc started out as small French or Italian family businesses,

centered around a creative designer. In the 1970s, many of the French firms, suffered from

a variety of management and ownership problems. These firms lacked capital and were not

yet mass-marketing their wares.4

The 1980s saw a revitalization of luxury firms. One reason was the use of celebrities to

promote brand awareness, such as using the Academy Awards to showcase designer

clothing.5 Another reason was the influx of capital to these firms. Leading this trend was

real estate manager Bernard Arnault, who took control of Agache-Williot-Boussac-Saint-

Frres and only kept the kept its affiliate Christian Dior. Arnault soon thereafter took


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control of Louis Vuitton and Mot-Hennessy, and united them under LVMH. From 1985 to

2006, he took over 64 brands.

In the 1990s, the luxury firms started employing new strategies either diversifying their

products toward mass consumption and/or focusing on select high-quality goods. Hermes

and Vuitton followed the latter by increasing the quality of their product and by increasingthe number and skills of its craftsmen.

LVMH also epitomized the strategy of diversification, segmentation, and differentiation, as

it sought to balance the market share and individuality of its various brands. Differentiation

was achieved through mass production and luxury production, ensuring that the luxury

products had enough distinction to justify their price. Diversification was achieved through

enlargement of the scope of products offered, such as cosmetics and other accessories9 In

search of increasing profit (and perhaps relevance), the luxury industry had become

democratized.

Global Branding Strategy

Brand strategy is aimed at influencing peoples perception of a brand in such a way that

they are persuaded to act in a certain manner, e.g. buy and use the products and services

offered by the brand, purchase these at higher price points, donate to a cause. In addition,

most brand strategies aim to persuade people to buy, use, and donate again by offering

them some form of gratifying experience. As branding is typically an activity that is

undertaken in a competitive environment, the aim is also to persuade people to prefer the

brand to competition.

A global brand needs to provide relevant meaning and experience to people across multiple

societies. To do so, the brand strategy needs to be devised that takes account of the brand s

own capabilities and competencies, the strategies of competing brands, and the outlook of

consumers (including business decision makers) which has been largely formed by

experiences in their respective societies. There are four broad brand strategy areas that

can be employed.

(1) Brand Domain. Brand domain specialists are experts in one or more of the brand

domain aspects (products/services, media, distribution, solutions). A brand domain

specialist tries to pre-empt or even dictate particular domain developments. This requiresan intimate knowledge, not only of the technologies shaping the brand domain, but also of

pertinent consumer behaviour and needs. The lifeblood of a brand domain specialist is

innovation and creative use of its resources.

(2) Brand Reputation. Brand reputation specialists use or develop specific traits of their

brands to support their authenticity, credibility or reliability over and above competitors. A


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brand reputation specialist needs to have some kind ofhistory, legacy or mythology. It also

needs to be able to narrate these in a convincing manner, and be able to live up to the

resulting reputation. A brand reputation specialist has to have a very good understanding

of which stories will convince consumers that the brand is in some way superior.

(3) Brand Affinity. Brand affinity specialists bond with consumers based on one or moreof a range of affinity aspects. A brand affinity specialist needs to outperform competition in

terms ofbuilding relationships with consumers. This means that a brand affinity specialist

needs to have a distinct appeal to consumers, be able to communicate with them

affectively, and provide an experience that reinforces the bonding process. A brand affinity

specialist is like a pet dog.

(4) Brand Recognition. Brand recognition specialists distinguish themselves from

competition by raising their profiles among consumers. The brand recognition specialist

either convinces consumers that it is somehow different from competition, as is the case for

niche brands, or rises above the melee by becoming more well-known among consumersthan competition. The latter is particularly important in categories where brands have few

distinguishing features in the minds of consumers. In some cases, a brand recognition

specialist needs to be able to outspend competition to gain unbeatable levels of awareness.

In other cases, a brand recognition specialist needs to convince a loyal following of

consumers that it is unique.

Measuring the brand performance

The increasing demand for brand valuation reflects the sophistication of the branding

sector as well as the proliferation of different kinds of media. The ability to gauge how a

brand is commonly perceived both among customers as well as how it is conveyed and

written about across media is vital in judging how the brand or company is performing.

Brand measurement and monitoring help marketing agencies (such as brand, public

relations and advertising agencies) to determine whether the brand objectives are being

met and, importantly, to prove their value to the client by showing what they have

achieved.

What creates value?

While a companys share price can be an indicator of brand strength, it should not be

viewed in isolation (and share prices are only applicable to publicly listed companies). Abrands success will be measured by the impact of the product, service and business that

underpins the brand. This includes its perception and reputation among its stakeholders;

the leadership of the business; its ability to differentiate and stay ahead of competitors; its

ability to innovate and adapt; as well as its market share, margins, scale of presence and

products sold. Measuring a brands performance, therefore, is complex because a brand is

affected by so much more than just financial indicators.

fashion brand management notes

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