If you are going to launch or market a company, you may as well try and build such a powerful brand that it creates tremendous brand equity. The difference could be worth billions. For example, global brand expert Kevin Keller cites PepsiCo, which has a net tangible book value of $6.5 billion but a market value of over $90 billion. Keller attributes about $83 billion of that market valuation to intangible assets, and more specifically, to PepsiCo’s brand equity.
A branding strategy helps establish a product within the market and to build a brand that will grow and mature in a saturated or even growing marketplace. Making smart branding decisions up front is crucial since a company may have to live with the decision for a long time. In order to consider what might be the right branding strategy for your company, here are commonly used branding strategies:
COMPANY NAME. In this case a strong brand name (or company name) is made the vehicle for a range of products (for example, Mercedes Benz or Black & Decker) or a range of subsidiary brands like YUM Foods which owns Taco Bell, KFC and Pizza Hut.
INDIVIDUAL BRANDING. Each brand has a separate name, putting it into a de facto competition against other brands from the same company (for example, Kool-Aid and Tang are both owned by Kraft Foods). Individual brand names naturally allow greater flexibility by permitting a variety of different products, of differing quality, to be sold without confusing the consumer’s perception of what business the company is in or diluting higher quality products.
ATTITUDE BRANDING AND ICONIC BRANDS. This is the choice to represent a larger feeling, which is not necessarily connected with the product or consumption of the product at all. Companies that use attitude branding include: Nike, Red Bull, The Body Shop, and Apple, Inc. Iconic brands are defined as having aspects that contribute to the consumer’s self-expression and personal identity.
BRAND IDENTITY VALUE. Brands whose value to consumers comes primarily from having identity value are said to be “identity brands.” Some brands have such a strong identity that they become “iconic brands” such as Patagonia, Coca Cola, Visa, and Harley Davidson.
DERIVED BRANDS. Some suppliers of key components may wish to guarantee their own position by promoting that component as a brand in its own right. For example, Intel, positions itself in the PC market with the slogan (and sticker) “Intel Inside.” Gore-Tex positions itself and its product formula as a protector of products through waterproofing other brands clothes.