Kratos, Creating a Brand Name - Case Study Example

Strategic Brand Management Contents Contents 2 Introduction 3 Significance of the brand and logo 4 Brand Management Strategy 5 Basis of the Brand value 6 Brand Decisions 7 Brand Management Theories 8 Development and expansion of Brand in the National and international Market 10 Sustainability of the brand in overseas market 11 Conclusion 12 References 13 Introduction The strategic management of the brand mainly deals with managing the tangible and the intangible aspects and characteristics of the brand. The tangible features of the brand comprise of the price, product and its packaging and the intangible features of the brand deals with the emotional connection or relation with the product. Branding is considered as the important and vital concept in the scope of marketing as it is engaged in the assembling of various tools of marketing mix which provides an identity to the product. Branding is engaged in creating a brand name and brand image in the mind of the customers. The brand name that is selected for discussion is Kratos which is an energy drink product and it has been developed for its valuable customers with the aim and objective of providing new and valuable product to its customers. The market that is selected for positioning the brand is UK market and this brand will be included in the category of nutraceutical and sports drinks. This brand is required to be positioned well in the market in order to gain competitive advantage since the strong competitors in this industry which includes the Monster, Rockstar and Red bull are capturing more than 90% of the market share. Since the energy drink market is mainly competitive monopolistically that is based on the existence of large number of competitors in the market and therefore it is easy for the new brands to easily enter and exit from the market and also provide differentiation in the product. Significance of the brand name and logo The significance of the brand name Kratos is that since it is an energy drink and the name has been derived from the Greek mythology which signifies the God of War. This name will signify a symbol of personification and strength and this name has been provided to convey a message to the consumers that by consuming this energy drink they can build their body and gain strength and energy (Keller, Aperia and Georgson, 2012). The brand logo has also been introduced signifying the name and resemblance of the brand and the advertisement of the brand will highlight on the concept of stunt and challenge. Since it is a new energy drink brand therefore the logo that will be used for this brand will apply the colours that will stimulate and generate a sense of excitement and it will mainly focus and target the young generation since the energy drink mainly fits the youth category (Chernatony, McDonald and Wallace, 2011). Figure 1: Kratos energy drink The logo that is used for this brand will resemble a sense of adventure, natural and youth which will be conveyed to a large number of audience or customers. Branding and designing of logo plays an important role since it is used for influencing the customer and generating a stimulus (Kapferer, 2013). Therefore in order to focus and target its audience or consumers the new energy drink Kratos is required to differentiate itself from the other energy drinks by identifying the sugar and caffeine content in the brand. Brand Management Strategy Figure 2: Brand management strategy Kratos is a new brand in the market and therefore in order to be successful the brand is required to be considered as the most valuable asset (Kumar and Steenkamp, 2013). Branding strategy is required to be designed for future marketing and branding decisions. There are large numbers of competitors in the energy drink industry therefore developing the brand strategy is a valuable and exciting activity (Alba, and Hutchinson, 2008).The brand strategy is designed in such a way that it will reflect the culture, philosophy, character and objective of the business which will provide a brand identity that will influence the communication and the marketing strategy and will connect the customers with the brand (Chernatony, 2009). The brand strategy mainly deals with the brand vision, brand audit, brand positioning strategy, promise, brand identification and communication. In the above diagram the steps which includes conducting research which includes brand audit, stakeholders analysis, the objective of the business and also the market analysis required for positioning the brand, then the strategy is required to be designed which includes positioning strategy and refining of the brand then the logo of the brand its colour, texture is required to be formulated and then the assets are required to be managed which deals with the brand identity and the brand image. Therefore brand management strategy is required to be implemented well for positioning of Kratos (Kuhn, Alpert and Pope, 2008). Basis of the Brand value The basis of improving the brand value is that it must be able to create an impression, perception on the minds of the consumers and the brand image is required to be developed in such a way that it will occupy a specific space in the minds of the consumers as compared to its competitors (Iglesias, Ind, and Alfaro, 2013). The product designing and the positioning strategy of the competitors are also required to be considered for the positioning of new brand. The brand image and the sensitivity of the brand is to be developed in such a way that it will influence the buying behaviour and the decision making process of the consumers (Sunil and Chiranjeev, 2009). The awareness of the brand is closely related or associated with trust, high quality, reliability, good quality and closeness to the people or consumers (Ambler, 2005). Brand value is considered as an important factor since it not only provides information about the new product or the brand in the market but also performs some important functions or activities that explain its monetary return and its attractiveness when the brands are valued by the consumers (Tjandra, Omar, Williams and Ensor, 2013). Brand Decisions Brand and the logo play an important role in the decision making process of the consumer (Keller, Aperia and Georgson, 2013). The new brand in order to advertise its brand and create the brand image in the minds of the consumer should use the mode of television for changing and modifying the perception about the energy drink in the minds of the consumers (Dubelaar, Chow and Larson, 2001). The new energy brand is required to use the self expression brand image and lifestyle for appealing the younger section of the people or audience (Maignan, 2008). The various events, sponsorship, radio, television and social media for differentiating the new energy drink brand from the other energy drink brand (Etzel, Walker and Stanton, 2004). The logo that is used for the new brand serves as a stimulus which influences the package design, price and promotion of the brand. The new energy drink brand is required to design its pricing strategy in which the new energy drink brand is required to price its product below the price of its competitors or the players of the same industry in the market (Lowson, 2001). The premium pricing strategy of the brand will facilitate the consumers with a different lifestyle brand. Energy drinks provides the consumers with energy through the consumption of sugar and caffeine for starting its day or in the afternoon to feel fresh and less sleepy (Mason-Jones, Naylor and Towill, 2000).The new energy drink brand is required to focus more on the millennial market for offering variety of products in order to fulfil the requirements of its target market and also covering various sub cultural segments (Perreault and MaCarthy, 2003). Brand Management Theories The brand management theories include the Keller Brand equity model which is also known as the customer based brand equity model and this model is used for developing the brand image among its consumers (Batey, 2012). The new energy drink brand is required to create and develop the positive feelings, thoughts, and opinions and perceptions about its brand among the minds of the consumers (Pride and Ferrell, 2014). When the new energy drink brand is able to build or develop the strong brand equity in the minds of the consumer it will attract more of its customers and will increase the loyalty of the customers in order to compete with its competitors or the other players that exist in the market (Pringle, 2008). Figure 3: Keller brand equity model The new energy drink brand in order to promote its brand in the market is required to focus on the salient features of the brand which includes describing the salient features and the unique selling price proposition of the brand and the features are required to be reflected in such a way that the consumers are able to understand the features and the characteristics of the brand and will influence the decision making process of the consumers (Bennett, Wood and Previte, 2013). The next step which includes describing the meaning of brand that explains the performance of the brand, it is required to fulfil the expectation of the consumers in order to increase or develop the customer loyalty (Fill, 2006). The next step includes the brand response which explains the response, reaction and perception of the consumer towards the particular brand and also the impact of the brand on the consumers. Kratos as a new energy drink brand is required to focus on quality, credibility, superiority and consideration of its brand in order to receive positive response of its brand from its consumers and the last step in the brand equity model which includes the resonance that reflects the loyalty of the brand and since Kratos is a new brand therefore it is required to focus on its behavioural loyalty and the active engagement of the consumers towards its brand (Kotler and Keller, 2012). Apart from the Keller brand equity model the other model that is used for promoting new brand is the 4D model of place brand management model Figure 4: 4D model of place brand management. The 4D model which includes the first step that is deciding which explains the place in which the brand is required to be positioned. Kratos as it is a new energy drink brand therefore adequate decision is required to be taken for positioning of its brand, the next step is designing which explains designing the brand in such a way that the brand is able to achieve its aims and objective (Lasserre, 2012). Delivering the quality brand to the consumers and also delivering the adequate information to its consumers that will influence the decision making process of the consumers. The last stage is determining the importance of the stages of deciding, delivering and designing the brand which will determine the success of the brand strategy of its new energy drink brand (Picton and Broderick, 2009). Development and expansion of Brand in the National and international Market Various aspects are required to be considered by the new energy drink brand Kratos in order to market its brand in the national and international market. The new brand is required to consider the challenges that it might face in the international market (Porter, 2008). The new energy drink brand is required to consider the marketing mix which includes the product, price, place and promotion of the brand, the distribution network that is the channel of distribution, the marketing environment that includes the various internal as well as the external factors that is required to be considered (Wintzer, 2007). The new energy drink brand Kratos is introduced in UK market and it has been introduced in consideration with the aspects of the UK market but if it succeeds in the UK market it does not signifies that it will also succeed in other national as well as international market. Kratos is required to identify and find out the other players that exist in the national and international market and also its competitors, the target market is required to be identified in which it can target its customers in delivering its brand successfully and since at the time of expansion of its brands in the international brand it will target new and emerging markets therefore the packaging and labelling as well as the cultural perspective are required to be taken into consideration (Onkvisit and Shaw, 2009). The name and significance of the logo is required to be verified as the significance and the meaning of the logo may indicate some other meaning in some other countries of the world therefore the logo is to be properly verified (Bruner, 2007). The trademarks and also the domain name is to be registered in order to sell the brand in the international market and since Kratos is a new energy drink brand in order to expand its brand in the international market it must ensure that its intellectual property is protected (Proctor, 2014). In order to expand the business and create the brand image, the brand is required to promise its customers that it is different and unique as compared to the brand of its competitors and an effective brand is capable of gaining an edge in the increasing competitive markets of the world. The concept of geo targeting is required to be adopted with the application of location based services in such a way that the brands can convey their message directly to its targeted customers (Barney, 2007). Sustainability of the brand in overseas market Kratos which is a new energy drink brand in order to be successful in the overseas market is required to signify the value added terms in order to provide social and environmental benefits to its customers who will make it different from its competitors (Capon, 2008). The sustainability of this brand in the market will depend on the ability of the brand in creating and maintaining the identity of the brand in the minds of the consumers and in order to sustain in the overseas market Kratos is required to focus on the needs and requirement of the customers in the overseas market (Carpenter and Hamilton, 2008). Sustainability implies that the company is able to create a long lasting image and reputation in the minds of the consumers and therefore if Kratos is able to sustain in the overseas market than it will be able to gain competitive advantage over its competitors (Cheverton, 2005). Conclusion Kratos is a new energy drink brand that is introduced in the market of United Kingdom but it has the aim and objective of expanding its business and introducing its brand in the overseas market and therefore it has adopted various branding strategy in order to successfully position its brand in the national and the international market. In order to compete with its competitors in the market it is required to sustain in the market and gain competitive advantage over its competitors. The brand equity model developed by Keller and the 4D place dimension model has been applied in order to increase the brand name and brand image in the market. The energy drink industry is monopolistically competitive and therefore it facilitates the brand to easily enter and exit from the market and capture the market. Kratos have mainly focused on the young generation as the brand name signifies the sense of excitement and happiness. In order to be successful in the market Kratos is to be priced below its competitors for gaining an edge over others and Kratos have focused on targeting the millennial market, differentiating its energy drink from that of its competitors and fulfilling the requirement of various subcultures that exist in the target market. References Alba, J. W., and Hutchinson, J. W., 2008. Dimensions of consumer expertise. Journal of Consumer Research, 24(3), pp. 411-454. Ambler, T., 2005. Building brand relationships. Financial times mastering management series, 13(4), pp. 13-56. Barney, J., 2007. Gaining and sustaining competitive advantage. 4rd edition. New Jersey: Pearson Education International. Batey, M., 2012. Brand meaning. USA: Psychology Press. Bennett, R.R., Wood, M. and Previte, J., 2013. Fresh ideas: services thinking for social marketing. Journal of Social Marketing, 3(3), pp. 223-238. Bruner, G. C., 2007. Music, mood, and marketing. Journal of Marketing, 64(8), pp. 94-104. Capon, C., 2008. Understanding strategic management. New Jersey: Pearson Education Limited. Carpenter, G. S., and Hamilton, A., 2008. Handbook of marketing strategy. Stamford: Cengage. Chernatony, L., 2009.Towards the holy grail of defining brand. Marketing Theory,9(1), pp. 101-105. Chernatony, L., McDonald, M. and Wallace, E., 2011. Creating powerful brands. London: Taylor & Francis Routledge. Cheverton, P., 2005. Key marketing skills: strategies, tools and techniques for marketing success. Great Britain: Kogan Page Publishers. Dubelaar, C., Chow, G. and Larson, P., 2001. Relationships between inventory, sales and service in a retail chain store operation. International Journal of Physical Distribution & Logistics Management, 31 (2), pp.96-108. Etzel, M.J., Walker, B.J. and Stanton, W.J., 2004. Channel of distribution. Boston, Mass: McGraw-Hill/Irwin. Fill, C., 2006. Simply marketing communications. UK: FT Prentice Hall. Iglesias, O., Ind, N. and Alfaro, M., 2013. The organic view of the brand: A brand value co-creation model. Journal of Brand Management, 20(8), pp. 670-688. Kapferer, J.N., 2013. The new strategic brand management: Advanced insights & strategic thinking (5th ed). London: Kogan Page. Keller, K., Aperia, T. and Georgson, M., 2013. Strategic brand management: Global edition (4th ed). Harlow, England: Pearson. Keller, K., Aperia, T. and Georgson, M., 2012. Strategic brand management: A European perspective. Harlow, England: Pearson. Kotler, P. and Keller, K., 2012. Marketing management, global 14 Ed. Harlow, Essex: Pearson Education. Kuhn, K.A.L., Alpert, F. and Pope, N. K. L., 2008. An application of keller’s brand equity model in a b2b context. Qualitative Market Research: An International Journal, 11(1), pp. 40-58. Kumar, N., and Steenkamp, J.B., 2013. Brand breakout: How emerging market brands will go global. London: Palgrave Macmillan. Lasserre, P., 2012. Global strategic management. Singapore: Palgrave Macmillan. Lowson, R., 2001. Retail operational strategies in complex supply chain. International Journal of Logistics Management, 12 (1), pp.97-111. Maignan, I., 2008. An international review of sponsorship research. Journal of Advertising, 36(4), pp. 13-24. Mason-Jones, R., Naylor, B. and Towill, D. R., 2000. Lean, agile or leagile? Matching your supply chain to the marketplace. International Journal of Production Research, 38 (17), pp 4061-70. Onkvisit, S., and Shaw, J., 2009. International marketing: strategy and theory. New York: Routledge. Perreault, W.D. and MaCarthy, E. J., 2003. Essential of marketing: A global-management approach. Boston, Mass: McGraw-Hill/Irwin. Picton, D. and Broderick, A., 2009. Integrated marketing communications, 3rd edition. Harlow: FT- Prentice Hall. Porter, M. E., 2008. Competitive advantage: creating and sustaining superior performance. New York: Simon and Schuster. Pride, W., and Ferrell, O.C., 2014. Foundations of marketing. UK: Cengage Learning. Pringle, H., 2008. Brand immortality: how brands can live long and prosper. Great Britain: Kogan Page Publishers. Proctor, T., 2014. Strategic marketing: an introduction. New York: Routledge. Sunil, T. and Chiranjeev, K., 2009. A brand is forever, a framework for revitalizing declining and dead brands. Business Horizons, 52(4), pp. 377-386. Tjandra, N. C., Omar, M., Williams, R. L. and Ensor, J., 2013. Runway logic: "Y" Generation Y prefers fashion brand over country of origin. Transnational Marketing Journal, 1(1), pp. 22-40. Wintzer, E., 2007. Global competition and strategic management. Germany: GRIN Verlag. Read More