Building Brand Vision Part 1-Brand Management-Lecture Handout | Exercises Brand Management

Brand Management (MKT624) VU

Lesson 8

BUILDING BRAND VISION

Brand vision must be written down as a statement like the one we have for the fast food

business. The question is how to build that statement, for it has implications for so many areas,

the prime one being finance. You need to commit yourselves to pre-production expenses

followed by full-fledged production, marketing, and other areas. Reaching the vision, therefore,

is very serious and cannot be the decision of just one manager.

It is a systematic process that involves people from the top management right down to the level

of brand managers. Development of the vision leads brand management to develop the right

picture for the brand. It is a four-part approach as expressed by Scot Davis1.

1. Seek senior management’s input

2. Determine the financial contribution gap

3. Collect industry data and create a brand vision starter

4. Meet with senior management to create the vision

1. Seek senior management’s input

One of the top responsibilities of senior management is to develop business. Their view of

the products to be introduced is important. Brand managers should talk candidly with senior

management about their opinions.

Senior management’s perception of their brand’s role toward brand’s growth, in overall

growth, and how far the brand will go should be shared by asking the following kind of

questions:

What markets, business lines, and channels the company will pursue? Markets can

be defined in terms of needs, segmentation, and geography. Company XYZ can

look at its markets in terms of fulfilling needs of children in addition to just the

lunch market of professionals. That will take the brand managers into the area of

segmentation and development of brands belonging to those segments.

XYZ may also consider expanding into different geographic areas to make its

outreach effective. The company, in all probability, will consider reaching its

customers through restaurants (in addition to serving them at restaurants) and

supplement selling through delivering direct to nearby customers at peak as well as

odd hours.

What are the financial and strategic goals of the company? The brand managers

must share with the senior management company goals in terms of financial returns

and other strategic goals like share of the market and brand’s standing against

competition.

What do they think are strengths and weaknesses of their brands? The senior

management must be honest in pronouncing the strengths and weakness in relation

to competition. The realistic spelling out of strengths and weaknesses by them will

allow brand managers to be proactive in capitalizing on strengths and safeguarding

their position against probable threats. They will (brand managers) come up with

strategic moves keeping reality in view.

How to reinforce strengths and rectify weaknesses? An extension of the preceding

question, the answer will allow brand managers to look into the areas needing

reinforcements either through perpetuated communication campaigns or boosting

their channel capabilities.

The answer to this question will also allow you to overcome weaknesses with the

confidence that all in the company view them from the same angle.

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Lesson 8 BUILDING BRAND VISION Brand vision must be written down as a statement like the one we have for the fast food business. The question is how to build that statement, for it has implications for so many areas, the prime one being finance. You need to commit yourselves to pre-production expenses followed by full-fledged production, marketing, and other areas. Reaching the vision, therefore, is very serious and cannot be the decision of just one manager. It is a systematic process that involves people from the top management right down to the level of brand managers. Development of the vision leads brand management to develop the right picture for the brand. It is a four-part approach as expressed by Scot Davis^1.

Seek senior management’s input
Determine the financial contribution gap
Collect industry data and create a brand vision starter
Meet with senior management to create the vision 1. Seek senior management’s input One of the top responsibilities of senior management is to develop business. Their view of the products to be introduced is important. Brand managers should talk candidly with senior management about their opinions. Senior management’s perception of their brand’s role toward brand’s growth, in overall growth, and how far the brand will go should be shared by asking the following kind of questions: What markets, business lines, and channels the company will pursue? Markets can be defined in terms of needs, segmentation, and geography. Company XYZ can look at its markets in terms of fulfilling needs of children in addition to just the lunch market of professionals. That will take the brand managers into the area of segmentation and development of brands belonging to those segments. XYZ may also consider expanding into different geographic areas to make its outreach effective. The company, in all probability, will consider reaching its customers through restaurants (in addition to serving them at restaurants) and supplement selling through delivering direct to nearby customers at peak as well as odd hours. What are the financial and strategic goals of the company? The brand managers must share with the senior management company goals in terms of financial returns and other strategic goals like share of the market and brand’s standing against competition. What do they think are strengths and weaknesses of their brands? The senior management must be honest in pronouncing the strengths and weakness in relation to competition. The realistic spelling out of strengths and weaknesses by them will allow brand managers to be proactive in capitalizing on strengths and safeguarding their position against probable threats. They will (brand managers) come up with strategic moves keeping reality in view. How to reinforce strengths and rectify weaknesses? An extension of the preceding question, the answer will allow brand managers to look into the areas needing reinforcements either through perpetuated communication campaigns or boosting their channel capabilities. The answer to this question will also allow you to overcome weaknesses with the

confidence that all in the company view them from the same angle. docsity.com

What resources the company is willing to deploy for supporting the brand? The support to the brand has to both strengthen its position and rectify weaknesses. You should get incisive insight into the matter of where you need the support – overall financial support, advertising and promotions, human resource, or investment into channel development and equipment etc. Companies always have finite resources. It is important to understand the senior management’s perspective and then match it with yours for the right development of vision with no gaps. Will the company be able to achieve its objectives? If not, why? If the management is confident of supporting the brand and has all the resources in place, then the chances of achievement of objectives should be bright. If not, then the whole exercise may end up in futility. It is at such a juncture that you need to review the possible negative factors and decide with the help of senior management about the alternative course of action. Do we have to redefine our business? If yes, what are the measures that the company should take now? Redefinition of business generally relates redefining the brand’s position. This area is discussed in lectures 18-20. For the sake of example, you may think of a company that deals in branded sandwiches for modern supermarkets, bakeries, and convenience stores at gasoline stations. The company’s business falls under an FMCG category. Success in FMCG sector may prompt this company to also develop the character of a fast food company. The whole marketing complexion will change and the company faces the challenge of redefining its business. The question that should tax their minds should be, are we going to remain an FMCG company, or should we be known as a fast food company with an impressive track record in FMCG area? The redefinition has its implications in terms of investment into fixed assets like restaurants and specialized staff. It will also need an effective communication campaign through which the company can talk with the target market about its intended position. If customers really perceive the image of the company the way its new identity is created, the redefinition of the business has worked. Are their any role models among competitors or associated companies that brand managers should follow? You should try to find out if there is a competitor that the senior management of your company really envies. Study the business model of that competitor and determine what can be done to excel that model.

2. Determine the financial contribution gap The contribution gap is the difference between company’s present financial position and the financial objectives. Filling the gap means having more revenue that can lead to better and higher contribution margin. Higher revenue is sourced from either new products, price increase on existing products, or both. Here, top management’s input also becomes important. What bear importance for the brand managers are the following questions: - Go for price increase - Expand markets and availability - Improve distribution – intensive and extensive - Improve communication - Introduce new offerings for new segments - Make acquisitions

Building Brand Vision Part 1-Brand Management-Lecture Handout, Exercises of Brand Management

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confidence that all in the company view them from the same angle. docsity.com

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