Business-To-Business Brand Management - Essay Example

? Branding Introduction A brand is dubbed as the personality that identifies a product, company or service and is represented through the sign,term, symbol, design or a combination of all these factors (Donavan, Janda and Suh, 2006). A company uses brands for the purpose of enhancing their visibility in the market place and thus, branding is as an essential tool in the marketing strategy of a firm. Building better brand perception is therefore considered as primary for the successful firms. The notion of branding came into existence for the principal aim of giving identity to a product and simultaneously differentiating itself with the other products (Dunn, 2004). An organization attracts and maintains a base of loyal customers by promoting their prestige, image, value and lifestyle through the efforts of branding. A number of studies have shown that proper branding leads to higher sales of the products and other services associated with the brand (Hill, 2008). For example, if a customer likes Dairy Milk, a brand of Cadbury, he or she is more likely to taste Bourneville as well. A good brand has the ability to deliver the messages of the company to its target audiences, influence and motivate the buyers, confirms the credibility of the firm and emotionally connects with the target population. However, to achieve success by means of proper branding practices, it needs to understand the needs and wants of the customers (Clarke, 2001). It is often argued that a brand resides in the mind and the heart of a consumer and positively influences customer purchase behaviour, but few academicians disagree to this fact and deem that a brand image can influence the purchase negatively as well (Knox and Denison, 2000). This report seeks to analyse the opportunities for development of a particular brand. However, prior to the identification of the opportunities of the brand, the study will review and identify the weak points and challenges of the brand. On the basis of the findings and analysis, the study will elucidate the required changes in the brand and rebranding will serve the purpose of the company. The brand chosen for this purpose is Benefit cosmetics. A brief synopsis of the brand is presented below in order to help the reader understand the same. Benefit Cosmetics: A Brief Synopsis Benefit Cosmetics is a brand named after its company, Benefit Cosmetics LLC. The company is presently headquartered in San Francisco, California and was founded in the year 1976 (Benefit Cosmetics, 2013). The company specializes in offering beauty solution to the customers across several parts of the world. One of the key selling points of the company is their creative and vibrant packaging. Presently, the company operates in 35 countries and has successfully delivered the required services to the customers. Studies have shown that the brand has been performing well since the last few years and their financial situation reflects the same. One of the essential characteristics of the products of Benefit is that they are manufactured with natural ingredients and as a result of that, the products hardly have any negative skin effects. According to the experts of this industry, it is the quality of Benefit and instant solution capability that has made the brand a household name and a ‘must-have’ beauty product across the consumers of the world. Brand Analysis In this section, analysis of the brand, Benefit Cosmetics, will be carried out in order to identify the possible challenges and weaker areas of the brand (Kautish, 2011). In addition with this analysis, the study also seeks to underpin the opportunities of the brand. The brand will be analysed by considering certain parameters and factors that lead to higher brand value. Furthermore, brand analysis also has the ability to pin down the current state of a brand. This will help in satisfying both the aforementioned intentions. The factors to be considered in this context are emotional value, brand awareness, brand image, purchase intention, brand loyalty and perceived quality. (Source: Lee and Kim, 2008) The aforementioned factors will then help in identifying the general brand impression, the brand specification association as well as the brand commitment. These characteristics in turn will finally enlighten the situation of the brand. Emotional value: - The emotional value of a brand refers to those characteristics of a brand which appeal directly to the emotional state of the consumers, their needs and aspirations (Healey, 2008). Furthermore, this characteristic also has the ability to make the customers loyal and also, gains their confidence. In this context, Benefit Cosmetics tries to portray itself as a company enriching life of people with glamour and physical attractiveness. The journey of the twin sisters, the founders of Benefit Cosmetics, Jean and Jane Ford, resembles the uprising of the brand and acts as an emotional quotient. Brand Awareness: - Brand awareness highlights the degree to which a brand is recognized by the potential consumers (Glynn, 2009). This is usually addressed in terms of the percentage of awareness among the target consumers. In the context of Benefit Cosmetics, the company enjoys high brand awareness among the target consumers. One of the key reasons for high brand awareness is the comprehensive advertising through selective mediums. Ironically, it has been also found that the company lacks the required level of brand visibility. Brand image: - Brand image is regarded as the impression of the brand in the minds of the consumers (Glynn, 2009). Brand image is generally developed over time through various advertising and promotional campaigns. In this context, the company tries to portray itself as a brand responsible for spreading happiness among the users. In other words, the company means that usage of this product will lead to happiness among the consumers. Purchase intention: - Purchase intentions state the likelihood of consumers to buy a particular product. The purchase intention of a brand is also essential to recognise its health and is often considered in the studies of advertising effectiveness measurement. Studies have shown that majority of the existing consumers of the brand has greater repurchase behaviour. However, the purchase intentions are limited among the non-users. Hence, it is evident that the company faces the issue of low customer acquisition rate. Brand loyalty: - Brand loyalty is an essential factor deciding the success of a firm. In simple terms, it is defined as the extent to which customers carry out repeat purchases from the same manufacturer instead of switching to other companies. With more number of repurchase, the brand loyalty of a consumer is identified. A consumer who also acts as a word of mouth promoter for the company is dubbed as more loyal than any ordinary customer. Benefit Cosmetics, being one of the fastest growing cosmetic brands of the world, operating is 35 countries and delivering products from 3000 counters, embraces a set of loyal customers. A recent study by NYU Stern School of Business positioned the brand as one of the “Top 10 Luxury Brands with the Highest Facebook IQ”. Such achievements showcase the high level of consumer trust. Perceived quality: - Perceived quality is the measure of the quality or the quality that the customer expects out of a product. In the context of Benefit Cosmetics, consumers generally expect higher quality of products from them. Moreover, considering the price charged for the product, the expectation of quality is justified. Online Presence: - Another vital factor considered in this aspect is the online presence as it has been discovered that the brand has strong presence in the virtual world. Be it social media or other websites, the visibility rate is high. Moreover, products are also sold online through their official website. However, the company does not have any partnership with other companies which could also facilitate online sales through other channels. Therefore, from the above discussion, it is evident that the brand, despite being in a strong position, is dealing with certain issues and challenges. These issues have given rise to a number of weaker points for the brand. Simultaneously, the analysis also clearly shows that the brand has certain opportunities and capitalizing on those might offer the company to achieve greater competitiveness. The same is discussed in the subsequent sections. Challenges and Weaker Points Nowadays, brand along with other tangible assets represents considerable amount of the organization’s enterprise value. The traditional approach of brand management is not of much use these days as the notion of marketing is shifting towards a new paradigm. The analysis carried out above has showcased a number of weak points, which in turn acts as a challenge for the brand. One of the key negative points for the brand is low visibility. In addition, the company also faces difficulties to attract new customers. Deeper analysis have shown that the major reason for this challenge is related to branding activities, as new customers are facing difficulties to relate themselves with the brand. The company also do not have any tie-ups or agreement with online third party sellers, which could have boosted the sales. Hence to surmount this issue, the company is strongly recommended to make certain modification or changes into their current branding strategy. Opportunities & Proposed Change The analysis has showed that the brand has certain opportunities which can only be availed if proper changes and modifications are implemented in the branding strategy. It has been found that the company has the opportunity to target new customer bases with their existing products. Also, it is not possible to reduce the product prices for targeting the lower income group consumers, as this will change the image of the brand. Instead the company can try changing certain characteristics of the brand. The proposed new design is penned down in the below sections. New Design The identified changes in the brand characteristics of the firm are as follows: - Change in Logo Design: - The logo of the brand seems to be somewhat inclined towards animated characteristics and it makes it difficult for a new user to identify and relate oneself with the brand. Figure 1 – Company logo However, a logo that portray the activity and function along with benefit can be more beneficial. Even, a logo that portrays that the company is involved into cosmetics business will certainly help the firm. 2. Another suggested change for the brand is the slight modification in packaging. Although the packaging of the company has received positive feedbacks, yet a slight modification in the quality of packaging material, for instance, by changing it into recyclable items, will greatly serve the purpose of the firm. This will also help the company to establish themselves as a socially responsible firm. Agency Selection and Justification As mentioned in the previous section, a branding company will be selected who would be responsible for carrying out the branding activities for the company and also, act as the change agent for the firm. The following are the branding agencies selected for the activity and along with that, a justification is also provided for the company finally chosen. Name of the Agency About Nucleus The company has been operating for long in the market and have experience of handling various projects (Prweb, 2013). Think Farm Think Farm is also functioning for long but is comparatively a new firm. Moreover, the experience is also comparatively less. New Brand Vision Group New Brand Vision Group is reckoned as a renowned brand in UK and plays an active role in the branding industry. Moreover, they have lots of experience in this field. Therefore, given the experience and quality of New Brand Vision Group, it is obvious that the rebranding activity will be outsourced to this firm. Timeline Activity Date Wk1 Wk2 Wk3 Wk4 Wk5 Wk6 Designing the New Logo by the outsourced Agency             Designing brand messages and slogans             Implementing the changes into the brand             Addressing the stakeholders             Carrying out comprehensive advertising to rebrand the firm             Using other channels to promote the changes             Official implementation and establishing the change (rebranding)             Reference List Benefit Cosmetics., 2013. About Us. [online] Available at: [Accessed 4 December 2013]. Clarke, K., 2001. What price on loyalty when a brand switch is just a click away? Qualitative Market Research: An International Journal, 4(3), 160-8. Donavan, T., Janda, S. and Suh, J., 2006. Environmental Influences in Corporate Brand Identification and Outcomes. Journal of Brand Management, 14(1/2), 125-136. Dunn, D., 2004. Branding: The 6 Easy Steps. California: E-agency Glynn, M. S., 2009. Business-To-Business Brand Management: Theory, Research and Executive Case Study Exercises. Bradford: Emerald Group Publishing Healey, M., 2008. What is Branding. Minneapolis: Rockport Publishers Hill, D. A., 2008. What Makes Total Quality Management Work: A Study of Obstacles and Outcomes. Michigan: ProQuest. Kautish, P., 2011. An Analytical Study on Perspectives of Brand Awareness and Its Impact Upon Consumer Buying Behavior with a View to Facilitate Managerial Decision Making in Organizations. Munich: GRIN Verlag. Knox, S. D. and Denison, T. J., 2000. Store loyalty: Its impact on retail revenue. An empirical study of purchasing behaviour in the UK. Journal of Retailing and Consumer Services, 7, 33-45. Lee, M. Y. and Kim, Y. K., 2008. Brand analysis of a US global brand in comparison with domestic brands in Mexico, Korea, and Japan. Journal of Product & Brand Management, 17 (3), pp. 163-174. Prweb, 2013. 10 Best Branding Agency Companies in the United Kingdom Declared by bestwebdesignagencies.co.uk for August 2013. [online] Available at: [Accessed 4 December 2013]. Read More