Brand Strategy and Analysis - Essay Example

? Brand Strategy and Analysis 25th August Brand Strategy and Analysis How a Analysis Helps In Creating Brand StrategyIdeally, customer analysis is one of the fundamental aspects of brand strategy development. Indeed, upon identification of the market, the management analyzes the target consumers of the company’s products or services (Alameda County SBDC, 2013). This involves data research and customer segmentation which helps to create a brand strategy by deriving a critical understanding of the customers’ preferences, behavior, and needs (Alameda County SBDC, 2013). For instance, companies can carry out frequent brand audits and perform multi-dimensional analysis to enable the company understand the customers’ use of the brand and their resultant experience. This helps to establish whether the brand meets the customers’ expectation and hence establish the need to modify or maintain the brand. Moreover, the managers can carry out an analysis on the customers’ data with a view of developing a marketing strategy that will communicate the brand messages to the target customers and help in predicting future market demands for the brand. For instance, the management can derive a strategic plan for the marketing department with an aim of helping them understand the customers’ needs and henceforth design a brand that meets those needs and reaches the customers in an effective way. Additionally, customers’ analysis helps in brand positioning through the analysis and understanding of different customer segments which defines their usage, needs, and experiences (Alameda County SBDC, 2013). Indeed, such an understanding clearly helps in creating brand strategy as the brand design seeks to satisfy each customer segment. How a Competitor Analysis Helps In Creating a Brand Strategy A strong brand strategy is the one which positions the company’s strengths above its competitors’ weaknesses or the one which expose no threat to the competitors (Czepiel and Kerin, 2009). To achieve this, the company’s strategists must have adequate knowledge about competitors' strengths and weaknesses which comes through competitor analysis (Brown, 2010). As such, competitor analysis helps in creating a brand strategy. For instance, the strategists may seek to establish what the competitors does best and what they perform poorly with an aim of designing a brand strategy that will capitalize on the competitors’ weaknesses and dilute the competitors’ strengths with an aim of gaining competitive advantage. Indeed, brand strategy uses competitors’ analysis to establish a profile of opportunities and threats for the company against its competitors. In addition, competitor analysis has a goal of knowing all aspects of the competitor with a view of relating to them and designing a brand strategy that will address the competitors' probable actions and responses (Czepiel and Kerin, 2009). For example, the strategists can analyze the competitors’ mission statement and future policies with a view of using that information to develop a brand strategy that will position the company in a strategic position. Indeed, brand image and brand strengths are components of competitor analysis which significantly define brand strategy. Knowledge about the competitor’s current and possible future position is fundamental in the overall strategy of a company. More so, competitor’s analysis entails the competitors marketing strategy which helps in designing brand strategy. For example, the strategists may seek to know how, where, what, and who their competitors’’ advertisement target. Such information would be necessary for the company in devising a brand strategy for the future. Example of a Customer Analysis This is a customer analysis for a car manufacturing company. The customer analysis will address the market research, customer needs, and current or targeted customers (Jersey Business, n.y). Customer Needs Most car buyers seek for high quality, low maintenance, comfortable, and durable cars. They need a car that is readily available, affordable, and will function at all climates and in various environments with minimal maintenance. Indeed, they need a car whose price relates to value and comfort while compared with other cars in the market. Moreover, they need a car with a great warranty which assures them of high performance for a long time. This helps to define the customers of the car manufacturing company (Jersey Business, n.y). Current/Potential Customers The current customers of the company’s cars are middle class citizens, young people, and business persons. These customers have a considerable purchasing power and buy the cars for adventure, basic travels, and carrying business items. Other customers include car vendors, government agencies, and companies who buy these cars in wholesale. On the other hand, the target customers for these cars will be middle-class citizens aged 35 years and above who have earned a disposable income which is above average. The target customers also include sportsmen and professional who seek to have cars with speed, comfort, and large engine capacity. Notably, the target market must be ready to pay higher for quality and comfort. Market Research I will use a multi-dimension market approach to reach out to our target customers and expand the business to the international market. To achieve this, I will do a research on the dynamics of the motor industry to understand the motor vehicle market. I will also carry out surveys on the current customers to establish which cars they purchase, their car needs, their satisfaction, and why they purchase car from our company (Jersey Business, n.y). This will enable me to reach a wide scale of customers. Moreover, I will do a study on internet marketing and how it affects the car industry. I will carry out interviews on car vendors to establish what they sell and the customer’s needs with a view of knowing whether what the customers need is available in the market. Ultimately, I will do a research to establish where most government agencies and companies buy their cars and why. Example of a Competitor Analysis Identifying Competitors The current competitors of the car company include Toyota, Nissan, and Chevrolet. These companies produce the same products as our company. We also have are other indirect competitors like ATK motorcycles, Arlen Ness, and Roehr Motorcycles who target the same customers (Bord Bia Vantage, 2010). Additionally, there are potential competitors because the barriers to entry are low. Indeed, companies like Boss Hoss Cycles may in the future shift to the motor vehicle industry because it can easily maneuver various to entry to the industry. Competitor Objectives Ideally, most competitors like Toyota and Nissan aim for rapid growth and establishing a large market share (Bord Bia Vantage, 2010). As such, these companies are wooing customers by selling at low prices, offering great warranties, and recalling cars that do not meet the required standards. Hence, I will need to produce high quality cars and offer them at standard prices to maintain and improve the company’s market share. Competitors’ Weaknesses The competitors like Toyota are facing challenges of achieving the required quality while others struggle to make profits. Moreover, they are not engaging in product development and have poor marketing strategies. As such, I can use this opportunity to attract their customers (Bord Bia Vantage, 2010). Competitor’s Strengths These competitors have a strong capital base and an established network. They also have renowned brand images and brand name. They also have wide experience in the motor vehicle industry. As such, they will use their strengths to respond to any market challenges. The Competitor's Response Profile Indeed, since the competitors are bigger than our company and they have the capacity to invest heavily, then they can significantly prevent me from attracting their customers (Bord Bia Vantage, 2010). They respond aggressively by offering financial incentives. As such, I can only offer quick responses to customer’s demand and use well-known suppliers to establish market advantage. References Alameda County SBDC (2013) Customer Analysis for Marketing. Available at: http://acsbdc.org/business-topics/customer-analysis (Accessed: 27 August 2013). Bord Bia Vantage (2010) Competitor Analysis. Available at: http://www.bordbiavantage.ie/marketingbusiness/marketing/competitivestrategy/pages/competitoranalysis.aspx (Accessed: 27 August 2013). Brown, C. (2010) Informing a Branding Strategy: A Competitive Analysis for the School of Jewish Communal Service. Los Angeles: School of Jewish Communal Service. Czepiel, J. and Kerin, R. (2009) Competitor Analysis. Available at: http://pages.stern.nyu.edu/~jczepiel/Publications/CompetitorAnalysis.pdf (Accessed: 27 August 2013). Jersey Business (n.y) Customer Analysis. Available at: http://www.jerseybusiness.je/media/Documents/Consumer%20Analysis.pdf (Accessed: 27 August 2013). Read More