Brand Building Blocks

96400 WordsOct 21, 2010386 Pages
BRAND BUILDING BLOCKS Building Strong Brands: Why Is It Hard? It is not easy to build brands in today 's environment. The brand builder who attempts to develop a strong brand is like a golfer playing on a course with heavy roughs, deep sand traps, sharp doglegs, and vast water barriers. It is difficult to score well in such conditions. Substantial pressures and barriers, both internal and external, can inhibit the brand builder. To be able to develop effective brand strategies, it is useful to understand these pressures and barriers Different factors that make it difficult to build brands are shown in the figure above. The first, pressure to compete on price, directly affects the motivation to build brands. The second reason, the…show more content…
What, then, happens to the people who support the brand with market research or other brand-building activities? They are vulnerable to the organizations new cost culture. 2. Proliferation Of Competitors New, vigorous competitors come from a variety of sources. A host of food categories have watched Weight Watchers and Healthy Choice enter their markets through brand extension strategies. In the snack category, Frito-Lay has seen regional brands expand and Budweiser 's Eagle brand break out of its niche to become a major competitor. New product forms that provide real alternatives for the customer have encroached the soft drink market, bottled water, carbonated water, fruit-based drinks, and "new age" drinks, among others. Additional competitors not only contribute to price pressure and brand complexity, but also make it much harder to gain and hold a position. They leave fewer holes in the market to exploit and fewer implementation vehicles to own. Each brand tends to be positioned more narrowly, the target markets become smaller, and the non-target market becomes larger. Efforts to market to a broad segment thus become more difficult in the face of the complex ‘brandscape’ Further, some new or desperate competitors may be motivated to take risks or attempt unusual approaches. The result can be destabilization of the competitive dynamics. There is also an enhanced motivation to copy anything that is successful, in part because the risks of

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