HOW TO SUSTAIN YOUR BRAND’S VALUE?
A brand value is an intangible asset that is created in the minds of the customer through continuous sales and promotion. To sustain itself in the market, the brand has to adopt certain strategies that make them stand out in the crowd and give it a competitive advantage over its rival brands.
INTRODUCTION
‘Brand Name’ is considered as the most valuable investment in the intangible asset of the business. Studies have shown that the business which is consistent with advertising, spend around 11% of the budget annually to advertise its brand to maintain their position in the market. Businesses that are looking to grow on a long term basis spend an even greater percentage of their advertising budget on marketing to out-win their competitors in the market.
The ideal percentage or, the ratio depends upon the type of industry, as the percentage ranges from 0% in basic necessity products like notebooks, chart, and stationery items to more than 10% in luxury products such as clothing, accessories, and electronic goods. The type of advertisement strategy adopted by brands varies from industry to industry since the marketing expense can differ in models such as electronic media advertisement, newspaper publication, web-based content, door-to-door advertisement, direct mail, leaflets, etc.
Before the brand is launched in the market, these things should be defined:
- The objective of the brand
- The Product line
- The target customer
- The branding techniques
Brand awareness, reputation, and brand differentiation have a great impact on the customer; a strong brand name attracts the customer, influence their choice, and denote high-quality product. Once a brand is developed by the business, the next step would be to sustain itself in the market. A market is a complex structure with the combination of businesses selling goods and services to the target customers at a certain price in a competitive economy. When the brand is recognized by the target customers, it can sustain in the marketplace.
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To preserve and protect the brand’s value, the business must keep in mind the following principles:-
- Market Research
In the journey of sustaining a brand’s value, market research plays a vital role in ascertaining the needs and wants of the customer. Information collected form research is then analyzed for structuring the business, assessing the potential growth of the product, and decision making. Research helps the business to overcome anticipated loss and changing market trends in the dynamic marketplace.
- Define the Brand and its objectives
While stepping into the market, a business needs to define its objectives towards the customer, the market, and the world at large. One needs to define its obligation towards the society to gain the trust of the consumer. The objectives of the brand and its products can be portrayed by way of informative content. There has to be a story that every brand must tell.
- Target your customer
Once the business has undergone market research and collected the data, the data is then utilized to target the potential group of customers to which the business can sell its products in a long term basis. Targeting a particular segment of the customer helps the business ascertain the needs and buying behaviour of the customer.
- Marketing tools
Marketing strategies and tools adopted by the business also determines the long term growth. The strategies adopted by the business to communicate with the target customers in the form of content, slogans, mouth publicity, media advertisements, etc reflect the brand value. This is an important principle for sustaining a brand’s values as it creates awareness about the brand, increases performance, and aid the goodwill of the business.
- Registering Your Brand Name
The unique brand name is an outcome of the intellectual mind and it needs to be protected from possible infringement. The concept of Intellectual property emerged with the emergence of brand name and brand value. Trademark, Trade Secret, Industrial Design and Copyright are some common issues that arise in businesses. There is a thin line between the brand name and the Trademark, a brand name is a name adopted by the company, and the trademark can be referred to as the legal protection granted by law to that particular name. Registered brand names have the exclusive right to take legal action against the infringing party.
- Maintaining a high standard and quality product
Customer’s trust and loyalty can be gained by providing consistent products. The promise to deliver superior quality products, good performance, and accepting customer feedback are measures to maintain ‘Consumer Relationship Management’. A high-quality product not only ensures good performance but also offers a positive brand reputation.
- Welcome the valuable feedback
In this dynamic market where consumer’s preference is changing every minute, the fluctuation of demand and supply of the product influence the purchasing decision of the consumer. If at any point in time the consumer feels that the brand value is degrading or not improving as per changing market, they will shift to rival brands. Therefore, it is important to gather feedback to improve products and services.
- Growth and Diversification
Once the foundation is set and the road map is built, the brand needs to diversify and expand its reach throughout the market. While some brands stick to their deep-rooted norms of business, others evolve through adaptation of technological development. The brand value sustains in the market when the growth is constant.
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BY - SOUMYA SONI
