Brand Development Plan - Essay Example

Brand Development Plan Executive Summary This report is a presentation of a brand plan for a period of 12 months for a new product intended to be launched by Last Chance. Last Chance is a corporation that has its products in different sectors. The company now intends to penetrate the market for soft drinks in Australia and is therefore developing a new product under the brand “Dew Fresh.” Some of the key competitors of the brand are identified as Coca Cola, Pura, Pepsi, Berry, Schweppes, Cottee’s Cordial, and Solo. The specialty of the brand lies in its herbal ingredients and the composition of its variants and it marks its point of difference with the other brands in the market. The point of parity with the other brands in the market is the quality of the product and matching standard of the Dew Fresh brand with the international brands. This report recommends that Last Chance Corporation focus on developing brand awareness and a good communication strategy in order to ensure good brand equity for Dew Fresh. Table of Contents Introduction 3 Assumptions 3 Position Strategy 4 Target Market 5 Competitor Analysis 6 Point of Difference 8 Point of Parity 9 Building Brand Equity 9 Brand Awareness 9 Selection and Justification of Brand Elements 10 Brand Image 11 Communication Strategy 11 Measuring Brand Equity 12 Recommendation 12 Conclusion 12 References 14 Introduction Last Chance is a diversified corporation based in Australia that produces and sells products of different kinds. The company now does not have any product in the beverage industry. It has, therefore, decided to make an entry into the Australian market for soft drinks. The company intends to develop a new product for the beverage market. In order to launch the brand successfully in the market, the company has to conduct a research on the existing brands in the market and their performance. The company has planned to introduce the item with the name “Dew Fresh.” This item is made of various herbal ingredients and would provide energy to the customer on drinking it. The consumer would have a refreshed feeling after consuming the drink and would also feel energized after drinking a full bottle of 500 milligrams. This paper presents a one year plan for the development of the new brand and provides a detailed analysis of the strategic positioning of the brand. A proposal has been presented in this article on how the brand can effectively manage its functionalities so as to yield positive and encouraging outcomes. The paper provides insights into strategic positioning of the brand, the target customers, potential and incumbent firms, strategies of developing brand equity and building the brand’s communication strategy on the basis of evaluation of the various factors that have been identified to make probable effects on the brand’s image. Assumptions Last Chance is planning to penetrate into a new market. It is important to note that this market has a number of established players. Hence in order to develop its brand image and retain it in the minds of the customers for a long period of time, Dew Fresh has to make certain reasonable assumptions about the characteristics of the market in which it is venturing. The most important assumptions are mentioned below: 1. The prime customer group for Dew fresh is the young population belonging to the age group of 12 to 30 years. The people of this generation are young, active and enthusiastic. 2. Trends in the soft drink industry show that the majority of customers belong to the above mentioned age group. They are open to new ideas and are willing to experiment with the products that they use in their daily lives. 3. There are various kinds of beverages in the Australian market. However, any kind of herbal energy drink has not been yet developed. Hence this new kind of soft drink is expected to gain a comfortably big customer base. 4. Although the brand is expected to face tough competition, the support extended to the brand from its well known parent company would ease out the load of making marketing campaigns from scratch. People are quite aware of Last Chance and the company has a good share of loyal fans in the market, who buy various kinds of products sold by it. Position Strategy Creation of a long lasting impression of the product is equally important along with achieving a good sales record in the short run. The positioning strategy developed by a company relates to this process of imbibing into the minds of the customers a strong and good image about the brand (Lamb, Fair, & McDaniel, 2011). The strategic positioning of the item would revolve around the name of the product, Dew Fresh, which bears an indication of the herbal contents in the product. The very name of dew brings into the mind the idea of freshness of nature. It tags along with it the idea that the drink would give a feel good effect to the person who drinks it. Besides, the commercials and promotions would incorporate images and visual effects that would hint towards the energy providing elements in the drink. The commercial would show a cheetah waking up from its slumber as a drop of dew falls on its head. It then feels the vigor to run across the forest in a playful manner. The cheetah is well known for its speed, agile nature and sinewy body. The abilities of the mammal would be used to symbolize the good effects of the drink. It is an effort to link the brand name with product attributes and benefits, thereby associating the product with the values generated by it (Michman, Mazze, & Greco, 2003). The expectation of the company would be that the target audience would relate the attributes of a cheetah with the energizing effects of the beverage. Target Market One of the cornerstones that a new brand heavily relies upon is the target customer. Identification of the target market is crucial for the promotion of the new brand. When a company takes the decision to promote its new brand, it has to make a concrete study about the features of the market in which it is going to launch the new product, in order to ensure successful launching of the product. Soft drink is a product that can be consumed by people of all ages. However, the brand Dew Fresh is targeted at the youthful and vibrant population. These people are in the prime of their life and are engaged in lots of activities. Hence they can be transformed into a loyal customer base by explaining to them the utility of this drink. While choosing soft drinks, these days, customers are increasingly reflecting consciousness about their health (Michman, Mazze, & Greco, 2003). The refreshing lime flavor along with its energizing capacities would be unique in the Australian market for soft drinks. The plausible market for this drink has been analyzed using the approach of behavioral market segmentation. It is a very powerful approach towards understanding of the market and identification of the target market for the brand. Behavioral segmentation approach has been used since it makes distinctions among different segments of the market according to the needs of the customers (Ferrell & Hartline, 2010; Lamb, Hair, & MacDaniel, 2008). People of the age group of 12 to 30 years are the primary targets, while the older generation comprises the secondary target market since they are expected to buy the product more infrequently than the other market segment. Competitor Analysis Being a new brand in the soft drink industry, Dew Fresh would be facing stiff competition from existing players in the soft drink industry. The market for soft drinks is buzzing with competitors in the Australian market. The new brand has to be prepared to face this steep competition utilizing its resources tactfully in order to establish its position in the market. The main firms that Dew Fresh has to compete with are Pura, Berry, Schweppes, Cottee’s Cordial, Solo, Coca Cola, and Pepsi. Coca Cola. Coca Cola is a famous brand worldwide and has its presence felt in Australia equally well. This brand emphasizes the hydrating needs of people. The company also claims that this drink provides energy to the consumer and that it is dedicated to the responsibility of saving the population from dehydration and satisfying their energy requirements. This drink is very popular among the people of Australia. Schweppes. Schweppes is a well known brand name in Australia and has a very strong consumer base. It produces more than forty types of good quality products and woos the minds of adults besides alluring the younger generation. Schweppes presents a sophisticated drink for any occasion and this name is at present used synonymously with style statement and icon of refreshment. The different blends range from classic mixers to new exotic flavors. Cottee’s Cordial. This is a non-alcoholic beverage that has remained a favorite for the Australian population. The beverage comes in the form of concentrated liquid in easy-to-carry packs. Estimates say that more than 1 billion cups of cordial has been consumed in 2012 in Australia (Schweppes Australia, n. d.). Solo. Solo is very popular as the thirst crusher in Australia and is particularly loved by the population since 1973. This drink has a lemon tang and renders a fresh feeling on intake. It has a light fizz so that the consumer can drink the beverage really fast. This brand has a very strong marketing team and possesses a strong brand image. The advertisements of Solo are famous throughout the country. Pepsi. Schweppes has the license to distribute Pepsi in Australia. Pepsi is a famous beverage all around the globe and it also has a strong customer base in Australia. PepsiCo is one among the largest beverage manufacturing companies in the world and has a wide range of products that add to its fame, such as Pepsi Next, Pepsi Max, Pepsi Light, Pepsi Max kick, and Pepsi Light caffeine. Pura. Pura offers a range of beverages and ranks as one of the brands in the country that has a very loyal customer base. Pura Milk remains one of the key rivals to the other beverage selling companies in the country (Business Review Weekly, 1998). Some of its products are Pura New, Pura Kids, Pura Heart Active, and Pura Boost. The Australian Cricket Board (ACB) has sold naming rights of the National Cricket Competition held during summer every year in the country to National Foods Limited and the competition is now named “Pura Milk Cup” (Jones & Shaw, 2012; Rowthorn, Landragin, & Daly, 2002). Berri. Berri is one of the leading fruit juice brands in Australia (Anonymous, 2005). Berri is famous for the various fruit juices offered by the brand. It is the largest processor of fruit juice in Australia (S. Holland & R. Holland, 2000). The drinks are based on both vegetable juices and fruit juices. The juices are delicious in taste and the company offers many flavors. Point of Difference Dew Fresh has an edge over the other manufacturers of beverages in Australia. The other beverages are mostly soft drinks that primarily provide a thirst quenching effect to the consumer. But Dew Fresh is unique due to its special feature that is missing in the products offered by the other competing brands. A blend of various herbs imparts a tangy flavor to Dew Fresh that leaves a refreshing effect on the customer. Besides, the customer would also feel energized on drinking the beverage since it contains certain concentration of glucose. Thus the entire composition of the drink would be different from the existing beverages available in the market. The drink would be sold in two different packages: one with normal levels of glucose and the other one with low levels of glucose, which is meant for those customers that do not want to consume high amounts of glucose. This diversification would be done in order to meet specific demands of different customers. Till now, almost all the available beverages have offered customers variants of their drinks in terms of flavors. There is no such beverage company in Australia that provides a variant of the item by making alterations in its basic composition so as to suit the health condition of customers. Despite such specifications, Dew Fresh would come in affordable prices to remain within the reach of the average consumer. In addition, the name of the brand Dew Fresh naturally instills a feeling of freshness and vitality among the consumers. Brand name is an important part of a brand’s existence and the presence of a symbolic meaning helps the brand to find its own place amidst steep competition (Aaker, 1995). This attribute is not present in the other big brand names such as Schweppes, Cottee’s Cordial, or Solo. Point of Parity Dew Fresh would be manufactured by employing the most advanced technology. Being a subsidiary of Last Chance, the brand would have access to the best technology available in the country. Last Chance would provide all the technical and financial support for the best ingredients to be used in the process of manufacturing, the best herbs to be identified by the R&D team of the company, the appropriate measurements of glucose to be blended with the beverage and the best channels to be used for marketing of the brand. This is similar to the international brands existing in the market, such as Coca Cola, Pepsi and others. Although Dew Fresh is a new product, it would have the capacity to offer products that would satisfy the international standards set by the multinational corporations. Building Brand Equity Brand Awareness Brand awareness is a vital aspect of a firm’s growth process that involves the level and degree of knowledge possessed by the customers about the brand and its performance in the market (Shimp, 2008). Products are manufactured keeping in mind the needs of the consumers. If considered in this way, a brand’s image is of no worth if the consumers are not aware of it. Hence, in the building up of brand equity a company has to pay attention to building up of proper brand awareness. Different means of advertisement and various media channels would be utilized to promote the new brand. In order to make the target customers acquainted with the new product, the company would make sponsorships in different social events such as college programs and office parties. Australia is a cricket loving country. A large mass of the population comes to the cricket stadiums to watch the cricket matches. Dew Fresh would make promotional distribution of the beverage in all these events free of cost. The Dew Fresh brand would also be endorsed by a famous personality from the field of athletics to make a deep impression on the minds of the consumers. Selection and Justification of Brand Elements According to Aaker (1995), brand is not a limited identity that is only associated with the product. A brand consists of five fundamental elements such as name, logo, slogan, image and association (Kotler & Pfoertsch, 2006). These elements help in development of brand equity (Pride & Ferrel, 2011). Dew Fresh would focus on the promotion of its brand slogan and brand associations in the first one year of promoting the brand. Brand Slogan. Dew Fresh would have a brand slogan which is “Jumpstart to Life.” The brand slogan would reflect the benefit of the drink and encourage the customers to believe in the energizing capabilities of the beverage. Brand slogan enhances the capacity of the brand to make deeper impression on the customers. Brand Associations. The evaluation of the brand by the consumers depends on the brand’s associations with certain desirable features that are adored by customers. Dew Fresh intends to associate the brand with an eminent personality in the field of athletics. It also intends to associate the brand with environment friendly production procedures. This would make a positive impression on the minds of the customers since the people are now becoming increasingly environment conscious. The presence of herbal ingredients would help the brand to emphasize that it would not make use of synthetic chemicals in the production of the drink. Brand Image The brand image of Dew Fresh would be established as a herbal energizing drink. It would position itself as Australia’s first energizing drink made of herbs. It would embody the power of nature and impart this power to human beings. Communication Strategy An effective communication strategy is essential for brand promotion. Brand communications are very influential in increasing profitability of the brand. Some of the communication strategies included in brand communication are public relations, advertising and product labeling. Advertising avenues are a lucrative way to spread the brand message to the target market. Dew Fresh would put advertisements on the Internet. Apart from that, different newspapers and billboards twould be placed in strategic positions in different place in the country. These three avenues of communication are used most widely these days (Rogers, 2001). Therefore, using these channels to promote brand image would help the company to reach out to the potential customers easily. The social media is the most widely used interface among the technology literate population of the country. Advertisements put on the social networking sites would allow the new brand to develop a network of clients and customers at a low cost. Labeling of the product would promote the brand’s name and also its image. The logo of Dew Fresh would help the company to convey the brand message to its customers. Besides providing identification to the brand, the brand name also helps the product to be differentiated in the crowd (Lamb, Fair, & McDaniel, 2011). This affects consumer perception and eventually purchasing behavior of customers. Maintaining good public relation is the basic key to brand success. It helps the company to manage its promotional activities and ensures the optimum outcome is derived from these activities. Measuring Brand Equity Brand equity is the value associated with the brand image of any product. The more a brand is capable of influencing consumer behavior, the more sustainable it is and the brand value automatically rises (Kapferer, 2005; Keller, 2003). While measuring the brand equity of Dew Fresh, the important dimensions to be evaluated are brand awareness, market share possessed by the brand, and customer perception about the brand. Recommendation Last Chance should maintain focus on a few things to ensure good brand performance by Dew Fresh. The company should give attention towards development of brand promotion before the brand is launched, in order to draw public attention to the launch of a new brand in the market. Secondly, the company has to make efforts to develop customer relationship by collecting feedback from the customers after distributing sample drinks. Finally, Dew Fresh has to maintain appealing brand associations even after the brand is successfully launched. Conclusion This report presents a brand plan for the upcoming 12 months for the new brand Dew Fresh. This report depicts that the primary target customers are the young generation who is willing to experience something new and is highly enthusiastic. The competitor analysis included in this report shows that the brand would be facing steep competition from both local competitors and internationally renowned brands. In order to bring assured success to the brand, Last Chance has to maintain top priority on building a good communication strategy and developing the brand elements, most importantly, a brand slogan and brand associations, in the first year after its introduction into the market. References Aaker, D. A. (1995). Building strong brands. Burlington: Free Press. Anonymous. (2005). Fruit processing. Munich: Flüssiges Obst GmbH. Business Review Weekly. (1998). Business Review Weekly: BRW, 20 (29-33). Sydney: Business Review Weekly. Ferrell, O. C., & Hartline, M. D. (2010). Marketing strategy. Connecticut: Cengage Learning. Holland, S., & Holland, R. (2000). Australians. New York: Simon and Schuster. Jones, R., & Shaw, B. J. (2012). Geographies of Australian heritages (Epub): Loving a sunburnt country? Hampshire: Ashgate Publishing Ltd. Kapferer, N. (2005). The new strategic brand management. London: Kogan-Page. Keller, K. L. (2008). 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