Current Branding Strategy of Cinnabon Inc - Assignment Example

?Branding Table of Contents Introduction 3 Current branding strategy of Cinnabon Inc. 3 Multi-Channel Operations 4 Protection of Brand Image 5 Selection of partners 6 Branding Strategy 6 Advertising 7 Social Media Presence 8 Online Business 10 Brand Management 11 Reference List 12 Introduction Around the centuries branding has been acting as a simple way of distinguishing the goods of one producer from another. As per the American Marketing Association brand is defined as the design, symbol, sign, term, name or a combination of all of them, which helps the customer to distinguish the goods and services of one seller or a group of sellers from those of the competitors. The companies look at branding to create certain amount of awareness and reputation related to the product and the organization and places the firm at a better place in the market. The real value of brand comes from its ability to add values and delivering profit to the organization by creating loyalty among the customers. Branding is not only used in terms of marketing but also from the financial perspective. Getting the value recognition and image for the customers helps the organization to gain financial impact (Schatte, 2010; Clifton, 2010; Blackett and Boad, 1999; Franzen and Moriarty, 2008). This report focuses on the company Cinnabon Inc., that started its first operation in the year 1985 in the Sea Tac Mall. The company was specially known for its “world's best cinnamon roll”, which was prepared after the team found the best flavoured cinnamon in Indonesia and mastered the recipe (Cinnabon, Inc., 2012a). This company has grown into a world famous brand with its unmatched craving appeal among the customers for their baked goods and various types of beverages. This report aims to design a branding strategy for Cinnabon Inc. Current branding strategy of Cinnabon Inc. Few decades ago Cinnabon Inc. was known as the rapid growing chain of franchised kiosks in high populated venues and was specially known for their cream cheeses, butters and sugar-frosted cheese. However, in the last few years the organization has been seen to expand their brands and identity by selling new products via new channels. This area has opened new challenges for Kat Cole, the president of Cinnabon to the distribution channel along with the varied range of products and at the same time making sure that the expanding brand of Cinnabon continuous to operate as an integrated and seamless whole (Fehrenbach, 2013; BusinessWire, 2013). Multi-Channel Operations Cinnabon Inc, does not operates as a one-dimensional brand that plays in just one segment or channel. They are into a multichannel business leading the brand across different channels and ensuring that every channel integrates with each other so that it can accelerate the brand image. Thus, the multichannel brand management successfully is the major challenge for the organization. The organization is currently operating in about 48 countries with over 900 franchises and is approaching towards the annual sales of about $1 billion (Fehrenbach, 2013; Goudreau, 2012). In recent years the organization has experienced a magnificent growth by creating and marketing new products that can looked through two new conduits such as licensed product that are sold by other outlets like fast-food restaurants and consumer packaged goods that are sold in grocery stores. Immediate consumption food services has been operating as the main channel through the franchise bakeries, which is the most common company’s face to the consumers; but now the company has planned to move towards few more newer channels like grocery retail and food service licensing (Thorn, 2013). Therefore, the main aim of Cinnabon Inc. at present to manage these multichannel operations such they mingle among themselves well and enhance the brand image of the organization. Protection of Brand Image Using multiple channels to make the products available to the consumer opens door to other challenges too like protecting the brand. According to Cole there are inherent complexities when the product or the brand moves from a single space to multiple. This signifies that there is not just one place or a single way in which the consumers can access the organization. Therefore augmenting and safeguarding the values that the brand of the company holds is the most crucial and driving factor. In this context the management of Cinnabon should decide on which opportunity to accept and which one to reject (Fehrenbach, 2013; Goudreau, 2012). Every good brand has equity and it is responsibility of the management to safeguard the equity of the brand. The value carried by the brand should be enhanced. Cinnabon Inc. has been managing this aspect very strategically. For instance the introduction of Cinnabon’s International Delight Coffee Creamer made by Cinnabon is the way in which the organization creates new channels for business, which in turn enhances there brand value. However, this remains a constant challenge for the organization to maintain their brand value and image (Fehrenbach, 2013). Selection of partners Careful selection of the partners is also crucial during expansion of the organization in new sector. Presently Cinnabon is in expansion mode and is looking for groups with whom they can partner and launch new products. In this context they are very selective about their partners. They always try to get best-in class partners. This is because of the fact that though they are snacks brand but they belong to a premium brand and always tries to tie up with brands that are having a high brand value. When marketing a co-branded product the research and development of both the organizations work together in order to present superior and premium products to the customers. This maintains their brand image (Fehrenbach, 2013; BusinessWire, 2013). Branding Strategy The overall discussion shows that Cinnabon are in an expansion mode and are operating through multiple channels. This has made them open to various challenges and opportunities at the same time. This offers opportunities such as exploring and entering into new market that can complement their own brand and products and partnering with new organizations such that benefits can be derived. Apart from this, the organization will also subject to various challenges such as choosing the right partner, protecting the brand image and managing the multi channel operations (Dunn, 2004; Glynn, 2009; Healey, 2008). Therefore, the branding strategy suggested below will be exploiting the opportunities present to Cinnabon and at the same time cater to the challenges so that the organization can be beneficial. Building a strong brand image is the main priority for the management of Cinnabon. In this respect advertising, social media presence and online reputation management are some of the preferred ways. Advertising Branding literature suggested that advertising is not always the most effective way of strengthening the brand especially in case of the brands that are badly positioned, related to inferior quality products and services or in cases where behaviour of product and services are subjected to frequent changes (Harris, 2008; Lee, 2001; Schenck, 2011). On case of Cinnabon the above mentioned cases doe not applies since they belief in consistent and quality service and product delivery. Whenever, the organization is going for some other product, which is different from their core product the organization should take ardent steps in order to make the customers feel that the new product will be complementing their existing core products. This will not only enhance their brand image but also will help them retain their brand value, which will not get hampered by their ties up with other partners (Harris, 2008; Lee, 2001; Schenck, 2011; Kotler, 2009; Elliott and Percy, 2007). Cinnabon may go for advertisements through flyers. Like in case where the organization is making their products available in the retail stores or groceries stores, should inform the same to their customers through flyers. They can also go for advertising through radio. In this context the organization should conduct an initial research regarding how they will be which time slot or in which channel they need to air their advertisements. Print media and television are other two major sources that can serve as a major potential for giving advertisements. The print media mainly signifies the newspapers and magazines, where the organization can put their advertisements. In this context the magazines and channels that deal with food can be targeted. Social Media Presence The emergence of technology social media has taken an important place in everyone’s life. Social media has also changed the way in which traditional marketing was done. Social media is the latest sensation in the world of marketing. A large number of people are seen to get connected through social media networks and the numbers are increasing in leaps and bounce. With large number of audiences present in the social media it serves as a striking competitor to the television, radio, magazines and newspapers. Facebook, Twitter, LinkedIn and YouTube are some of the popular social media networks that are used many of the organization to market their products and create brand image and brand awareness among the customers (Harris, 2008; Lee, 2001; Schenck, 2011; Kotler, 2009; Elliott and Percy, 2007). Social media sites are proving their abilities in selling products, providing insight regarding requirements of the customers, enhancing search engine ranking, nurture sales lead and create long term relationship with the customers. Cinnabon is operating in many countries across the world which makes social media a highly potential way to reach to a huge base of customers with a smaller period of time. Any video or picture related to their product or the news of launch of any new variation of product can be given in the social media network. This will help the organization in making the people aware of the new changes and at the same time increasing the presence of their brand (Albarran, 2013). Therefore, through this social media optimization Cinnabon will be able to create awareness among the customer related to their products and partnership and at the same time will also be aware of the reaction and customer’s feedback related to the matter. The organization can work on any negative feedback given by the customers. Online Business Internet marketing is the marketing practice through which the online business owners creates brand awareness and bring massive contribution towards the business. Today most of the organizations have their websites through which they make their customers aware about the products that they are offering. The website of Cinnabon is quite attractive and provides details about their products and business. This can serve as an important source for creating brand image among the customers (Harris, 2008; Lee, 2001; Schenck, 2011; Kotler, 2009; Elliott and Percy, 2007). (Source: Cinnabon Inc., 2012b) The above figure shows that the organization has designed their website in a very strategic way that not only makes the customers aware of the different locations where the store is located, their product and online deliveries but has also touched the emotional points of the customers. Image clearly shows how the organization has taken care about the halal and vegetarian customers and this information has provided to make them feel safe while consuming their products. Brand Management Brand management is an essential activity that every organization should follow after a particular brand is launched. Through this process a particular brand can sustain for longer period of time. The job of a marketer does not get over by just creating a brand name and making people aware of it. The brand name created should be maintained and protected by the organization (Kotler, 2009; Elliott and Percy, 2007). In this regards the primary actions that Cinnabon can follow are: Maintaining consistency in the brand experience that the organization is offering to the customers. Cinnabon has entered into multi-channel service and product delivery. Thus, it becomes essential for the organization to maintain the consistency through their multi-channel service delivery (Dummies, n.d.). Maintaining and leveraging the value of the brand is very important for Cinnabon. They have already established themselves in the market as a reputed brand. While choosing their partners in business they should select carefully so that their brand image is enhanced. Protection of the brand from legal rules and rights related to the area of operations is also important. Apart from this, the organization should also look at the probabilities of brand development (Kotler, 2009; Elliott and Percy, 2007). 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New York: Oxford University Press. Fehrenbach, P., 2013. Kat Cole successfully integrates Cinnabon’s multichannel branding. Business Smart [online] Available at: < http://www.sbnonline.com/component/k2/2-atlanta-editions/26259#.UqFjFdIW3p8> [Accessed 6 December 2013]. Franzen, G. and Moriarty, S., 2008. The science and art of branding. New York: M.E. Sharpe. Glynn, M. S., 2009. Business-To-Business Brand Management: Theory, Research and Executive Case Study Exercises. Bradford: Emerald Group Publishing. Goudreau, J., 2012. From Hooters To Hot Buns: How Kat Cole Turned Cinnabon Into A $1 Billion Brand. Forbes [online] Available at: < http://www.forbes.com/sites/jennagoudreau/2012/11/27/from-hooters-to-hot-buns-how-kat-cole-turned-cinnabon-into-a-1-billion-brand/> [Accessed 6 December 2013]. Harris, J., 2008. 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