Kissmat Konnections Brand Management - Research Paper Example

Brand Management Introduction to the company and the brand Kissmat Konnections is an emerging cosmetic brand that has been launched in the UK market very recently. The company has gained increased popularity in its range of body care and personal hygiene products that have been in the market for the last ten years. The success of the company in this sector triggered their decision to launch the cosmetic brand that includes a wide range of cosmetic products. In the last one year of its launch Kissmat Konnections has managed to generate a lot of interest and curiosity among the consumers. Presently the brand shares a market share of 5 percent in the cosmetic industry. The impressive growth of the brand is largely attributed to the growing market demand for quality products in the cosmetic industry. The brand positioning of Kissmat Konnections relates to high quality cosmetic products available at different price ranges to cater to an increased market segment. This strategy has made a huge difference to the current market shares of the company. The attractive price ranges and availability of high quality products at affordable prices has appealed to the masses and this has induced sales at the counters. One of the significant features of the brand positioning of Kissmat Konnections is its promotional campaigns that have made a distinct impression on the consumers. Brand positioning consists of how a particular brand is better and different from its competitors. It assesses the functional aspects of products and services. It signifies the ability to command a position in the consumer minds and distinct its qualities in terms of service value from the competitive brands existing in the industry. The Kissmat Konnections logo used in its promotional campaigns appeals to the consumers that relates to the passion factor. Selling cosmetic products is a challenging task since the functional aspects of various brands remain the same and it is the differentiation factor that triggers sales and demand. Consumers of cosmetic products get emotionally bonded with the brands they use and it is very rare for them to change brands often. Hence, brand positioning plays a critical role in increasing market shares and success of the cosmetic products in the market. Additionally the brand name Kissmat Konnections has an intriguing impact on the consumers and this is one of the reasons for its success in the markets. The name has registered well with the consumers owing to its uniqueness and the offbeat nature of the brand name has managed to generate sufficient interest and curiosity in the consumers. Brief description of the selected company Sophos Home Products Ltd, the owner of the Kissmat Konnections brand has been operational for the last twelve years. The company started its operations with the launch of wide range of body care and personal hygiene products under a separate brand name “Sophos”. The Sophos brand was widely popular in the market owing to its aggressive marketing and promotional strategies that ensured increased visibility of the products on the store shelves and increased recognition of the brand name among consumers. The success of the company in its body care and personal hygiene product range was the primary reason for the company to enter the cosmetic market with a new brand name – Kissmat Konnections. Introduction to Brand and Designing a Branding Strategy Branding is important for companies to create significant impact on the business environment as well as to gain a good market share. In an increasingly competitive market, brands serve to simplify the buying decision for the consumers. The trust placed on specific brands by the consumers is a strong driving force in the market. The World Organization for Industrial Property defines a brand, as cited in the book The New Strategic Brand Management by Jean-Noel Kapferer (2004) as “a symbol serving to distinguish the products or services of one company from those of another”. Thus, brands not only distinguish one product from the other but also indicate the product’s origin. The company has launched the cosmetic brand as a distinct line of products with a distinctive brand name that does not bear any connection to the existing brand name “Sophos”. Success of a product in the market eventually correlates to consumer satisfaction. An understanding of the consumer needs and expectation is primarily important for planning and implementing a successful business strategy. Hence, the company has adopted a branding strategy that communicates the uniqueness of the brand to the target consumers and its value in terms of high quality of products. The primary objective of the branding strategy is to promote brand recognition and popularize the products in the market through a combination of effective marketing mix strategies. This will focus on increasing market penetration enabling increased access to the consumers, offering wide range of price structures to increase affordability, and promoting the brand values that translate to high quality cosmetic products that appeals to fashionable consumer segment. The intended targeted audience for the brand includes females in the age group of 18 to 55. Branding in relation to consumer physiologically and socially The brand of an organization is its most valuable asset and business strategies revolve around marketing and positioning of the products or services. These products or services are established as brands in the markets and the value of these brands is perceived by its qualities and attributes. “A brand is a product that provides functional benefits plus added values that some consumers value enough to buy” (Jones, 1999). A brand is successful in the market if it meets the customer’s needs and requirements. Brands promote repeat purchase and help the businesses to increase revenues and market shares. John Phillip Jones in his book How to use advertising to build strong brands observes “A successful brand will build a preference – a psychological predilection – in the minds of its users that encourages them to buy the brand repeatedly.” Strong brands are a result of consumer loyalty and appreciation for the value provided by a specific goods or services. Brands are used by managers to differentiate their products from the others in the market and create a distinct image in the minds of the consumers. The brand represents both the “tangible and intangible value perceived by the customers” (Dermascope, 2005). A popular brand is strongly appreciated by its customers for the value and attributes it represents and has the ability to connect emotionally with the consumers. A brand is recognised by its consumers through its distinctive qualities and attributes. The products, packaging, price, marketing and sales all contribute to the creation of an image or impression in the minds of the consumer. The specific brand defines the way the product can fulfill the needs of the consumer and his expectations while making the purchase. “For customers, brands identify products and services and are generally associated with a level of quality and reliability, thereby lessening the risk of purchasing decisions” (Dermascope, 2005). The existence of brands in the markets helps the consumers to distinguish one product or service from another that simplifies the purchasing decision to a great extent. “In a commodity market where features and benefits are virtually indistinguishable, a strong brand will help your customers trust you and create a set of expectations about your products without even knowing the specifics of product features” (Dolak, 2003). There are many consumers who prefer to stick to a single brand for years owing to the value it represents to them. Moreover, the customers recognize the associated values of the brand name that guides his demands and expectations. The brands also create a strong emotional attachment to specific products or services if they have been in existence for a long period of time. “Branding creates trust and an emotional attachment to your product or company” (Dolak, 2003). Consumers realize that a strong brand will remain in the market for years providing them with the necessary attributes and value that it represents. Brand development and Justification of brand development decisions Creation of a strong brand is not a coincidence or by sheer chance. “Brands thrive by working continuously – in good times and bad – to remain relevant and in touch with the changing world around them” (Reuters, 2009). The brand image and value creates expectations within the customer. The customer identifies the brand with its functional aspects, utility and value for the money paid towards the purchasing of the products. The company strategies to promote the brand in the market should focus on the customer requirements and expectations. The attributes of the brand must be communicated to the consumer in a well planned and organized manner. However, simply communicating a message to the consumer is not enough. The company should deliver its promise to the consumers in terms of quality and values it represent to the consumers. The cosmetic brand strategy will focus on using high quality tested ingredients for the manufacture of the products. The customers of the cosmetic products are highly influenced by the promotional campaigns that reflect their needs and expectations. The quality of the products makes a big difference to consumers since skin allergies and related problems may cause extensive health damage to consumers. Consumers are increasingly aware of the benefits and potentials of the cosmetic products they use. The increased information available to the consumers makes it increasingly important for companies to deliver the desired quality to prevent loss in brand reputation. The impact of the Internet and Advertising on the brand development Advertising and creating consumer awareness for the products in the specific markets is essential to carve a market niche. This requires consolidated efforts from the sales and marketing team. Positioning the brand and creating brand awareness of the intended product involves great deal of planning and execution of advertising campaigns that will assist customers in recognizing the brand and creating brand loyalty. Effective brand loyalty strategies include identification of target client group, market acquisition, and understanding client needs and alternatives available in the market. This type of market research will enable the company to understand the specific market needs and choices available to the customer in the market. The next strategic step that the company needs to take is the effective use of marketing campaigns and advertising strategies to promote the product and trigger brand recognition. A popular form of advertising option that is widely gaining popularity is advertising or endorsing the products on the Internet. Most people resort to detailed product research online before making the final purchase decision. Adequate information access about the products over the Internet will result in increased sales. The company proposes to establish an online presence that will provide detailed product information and benefits to the consumers. Consumers today are more informed and aware of where they spend their money and this information is availed mostly from online sources. Keeping this in mind the company proposes to provide comparative product features and advantages on the Internet will enable the consumers to understand the product benefits and distinctions. Success of a product in the market eventually correlates to consumer satisfaction. Brand positioning plays a vital role in creating a successful retention strategy. Effective retention strategies include client segmentation, market acquisition, and customer service. Knowing the clients needs and alternatives available in the market is vital for any brand to position their product or service. Armed with this information the next step should be effective use of marketing campaigns and advertising strategies to promote services and increased visibility of the brand. These efforts are targeted towards increased sales and revenue collections that determine the success story of the brand promotion. Another avenue of advertising that holds immense potential in the present market environment is the use of social networking options like blogs, forums, content and direct marketing strategies that enable increased reach and effective factors influencing the purchase decision of consumers. The increased popularity and usage of blogs and forums in context of analyzing product information and influencing consumer behaviour has offset a new trend in the field of marketing and promotion. Co branding, Brand Damage and brand confusion in relation to the selected company Companies introduce other products in the market as they grow to capture different market segments. Extension of product line is both attractive but dangerous. It is one of the many different ways of increasing sales, extending an existing brand name onto a new product. It reduces the risk of launching a new brand. Using a recognized brand name gives the product immediate market presence saving on advertising and other promotional costs. However, a low quality product can damage the existing brand reputation or can eat away the market shares of the old product. The perennial appeal of some brands reveals that although products go through life cycles that can be delayed but not avoided, brands are there to stay and escape the effects of time. But lack of proper brand positioning and brand architecture may lead to damage in a brand’s reputation and result in huge loss in market share. It is imperative that the company categorizes its products and implements proper branding strategy. Effective brand communication can bridge the gap between the target consumer segment and the product or service offered by the organization. Co branding and its impact upon the selected brand/company The decision of Sophos to introduce a new brand of cosmetic products in the market is part of the marketing strategy for increasing the market shares and revenues for the company. The co-branding concept used by the company to introduce the line of cosmetic products has helped the company to leverage its line of products in the market. Co-branding is used by companies to “draw new customers, to increase the brand awareness, to support the customer loyalty or to win some other individual advantages offered by the partnership” (Panda, 2000). The brand reputation of Sophos will induce the purchase of Kissmat Konnections products since consumers identify the quality products offered by the company and expect similar features in terms of utility, quality of ingredients and consumer satisfaction. Often the establishment of brands takes a long time and it is only after an extended presence in the market that the consumers are able to identify with the brand. In its efforts to establish a brand the company invests in marketing the products through various distribution channels and other marketing strategies that involve distinctive approach to packaging, promotion and pricing. Registering a brand name can be a costly affair in most countries but companies have found this investment pays off well in the form of increased loyal consumer base and revenues. Since consumers are the key to increased market share, companies should invest in researching consumer needs while formulating brand positioning strategies. “From the perspective of brand equity, much of the investment spending each year on creation of brand power should be sought as an investment in consumer brand knowledge” (Kotler et al., 2006). Co-branding hence offers a feasible marketing alternative to the company ensuring success in increasing market shares and consumer loyalty. Internationalization of branding and justification of the selected company Global markets today offer a great potential for businesses across all industries and organizations are investing in extensive research programs to develop innovative products and services that can reap huge profits under these favorable economic conditions. New markets offer new opportunities to businesses and managers are adopting innovative strategies to widen their access and market reach. These business strategies play an important role in deciding the market share and product positioning in new markets. However, one of the critical challenges facing the businesses remain in understanding the existing culture, taste and preference of consumers within this geographic region. Extensive market research and analysis of economic forces driving the market in these regions are much required in formulating effective business strategies and establishing market presence. Tapping the consumer needs and researching their preference requires continuous feedback and assessment of market trends to enable the businesses to change their product outlook to meet consumer preference. Foraying into new geographic areas also requires in-depth analysis of existing requirements and habits inculcated by the people in that region. Respecting traditional practices and adopting local preferences earn considerable respect and acceptance among the locals of that country. Kissmat Konnections plans to extend its markets to new emerging consumer markets of Asian and Middle Eastern countries. The large population base and increasing fashion awareness in these countries holds a promising market for cosmetic products. Summary The liberalizing of economies and global business strategies has redefined management perspective and marketing approach for most companies since local market forces that drive the economy needs to be assessed and addressed while taking strategic decision on marketing, pricing and positioning of products. The consumer needs assessment and expectations drive the market share for any product. At the end of the day it is the consumer satisfaction that dictates the success story of any product launch in the market. References - 1. Grossman, Andrew. 2005. Promoting Passion categories. http://chiefmarketer.com/presence/promotion/promoting_passion_categories_0409/ 2. Kapferer, Jean-Noel. 2004. The new strategic brand management: creating and sustaining brand equity long term. Kogan Page Publishers. 3. Spring Smart Inc. 2006. Building strong brands: Research issues in technology marketing. http://www.springsmart.com/SpringSmart-StrongBrands.pdf 4. Dermascope. 2005. Building a strong brand. http://www.spamarketing.net/building_strong_brand.pdf 5. Jones, John Phillip. 1999. How to use advertising to build strong brands. SAGE. 6. Kotler, Phillip, Waldemar, Pfoertsch, and Michi, Ines. 2006. B2B Brand Management. Springer. Page 166. 7. Dolak, Dave. 2003. Building a strong brand: brands and branding basics. http://www.davedolak.com/articles/dolak4.htm 8. Reuters. 2009. Protecting your brand equity investment in 2009. http://www.reuters.com/article/pressRelease/idUS170737+14-Jan-2009+BW20090114 9. Panda, Tapan K Dr. 2000. Strategic advantage through successful co-branding. http://dspace.iimk.ac.in/bitstream/2259/203/1/Strategic+Advantage+through++Successful+CoBranding.pdf 10. Imperatives LLC. 2007. Building your brand: 5 steps to building a strong brand and an optimized customer experience. http://www.imperativesllc.com/docs/5StepsBuildingBrand.pdf 11. Roll, Martin. 2008. Faceshop brand strategy, Korean cosmetics brand, fashion brand, Asian brand. http://www.venturerepublic.com/resources/Faceshop_brand_strategy_Korean_cosmetics_brand_fashion_brand_Asian_brand.asp Read More