Strategic Brand Management: Meaning and Importance

Strategic Brand Management: Meaning and Importance

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Chanchal
Chanchal Aggarwal
Senior Executive Content
Updated on Sep 5, 2023 12:54 IST

Imagine a company launching a new line of sneakers. They meticulously craft a unique brand identity through strategic brand management, positioning themselves as the epitome of style and performance. Their targeted marketing campaigns, celebrity endorsements, and engaging social media presence create buzz and generate a loyal following. This strategic approach allows them to stand out in a crowded market, captivate consumers, and become a sought-after brand in the world of sneakers.

This article covers what is strategic brand management, how renowned brands use its key components and the importance of strategic brand management. Let’s explore!

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“Strategic Brand Management” comprises two words- Strategy and Brand Management.

Strategy is the thoughtful planning and execution of a plan to achieve specific goals.
Brand management involves overseeing and nurturing the elements that shape a brand’s identity and perception.

When we combine both together, it becomes Strategic Brand Management. It is the holistic approach of using well-defined strategies and effective management techniques to build and cultivate a brand. Strategic brand management encompasses crafting a unique brand identity and positioning it effectively in the market. It also includes consistently managing its communication and customer experiences. By aligning strategy with brand management, companies can create a powerful and enduring brand that differentiates itself, resonates with consumers, and ultimately drives business success.

Explore: Brand Management Online Courses

Table of Content

What is Strategic Brand Management?

Strategic brand management refers to building, developing, and maintaining a brand to achieve a competitive advantage and meet specific business objectives. It involves creating and implementing strategies that enhance the perceived value and image of a brand in the minds of consumers, ultimately leading to increased brand equity.

Explore: Objectives of Strategic Management Process

The primary goal is establishing a strong and favourable brand reputation that resonates with the target market. It requires careful planning and execution to ensure consistent brand messaging, positioning, and differentiation from competitors.

Also read: What is Strategic Brand Management Process?

Key components of strategic brand management include Brand Identity, Brand Positioning, Brand Communication, Brand Equity, Brand Extension and Brand Monitoring and Evaluation.

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Let’s understand each component of strategic brand management with the help of an example.

Example of Strategic Brand Management

Here, we have used the renowned brand Coca-Cola to illustrate this concept. Coca-Cola has successfully implemented various strategies to establish itself as one of the most recognizable and valuable brands globally.

Brand Identity: Coca-Cola has a distinct brand identity with its iconic red and white logo, unique contour bottle shape, and signature font. These visual elements create instant recognition and differentiation from other beverage brands.

Brand Positioning: Coca-Cola has strategically positioned itself as a refreshing and enjoyable beverage for moments of happiness and connection. Coca-cola has associated its brand with positive emotions and social interactions through its marketing campaigns and slogans. For example, “Open Happiness” and “Share a Coke”.

 

Brand Communication: Coca-Cola consistently communicates its message through various channels. It comprises of television commercials, print advertisements, social media, and experiential marketing campaigns. Their advertising campaigns often feature themes of unity, happiness, and togetherness, resonating with diverse audiences worldwide.

Brand Equity: Coca-Cola has built strong brand equity over the years. It is recognized globally for its quality, taste, and consistent brand experience. Consumers’ emotional connection with the brand and its widespread availability and brand loyalty have contributed to Coca-Cola’s high brand equity.

Brand Extension: Coca-Cola has successfully extended its brand into various product lines. It includes Diet Coke, Coca-Cola Zero Sugar, and Coca-Cola Energy. These extensions leverage the original Coca-Cola brand’s strong brand equity and consumer trust to enter new markets and cater to diverse consumer preferences.

Brand Monitoring and Evaluation: Coca-Cola consistently monitors its brand performance through market research, customer feedback, and tracking brand metrics. This allows them to assess consumer perceptions, identify emerging trends, and adjust their brand strategy to stay relevant and competitive.

Through strategic brand management practices, Coca-Cola has established a powerful and enduring brand deeply embedded in popular culture. The company’s ability to consistently deliver its brand promise, adapt to changing consumer preferences, and maintain brand integrity has contributed to its long-standing success and global recognition.

Importance of Strategic Brand Management

Competitive Advantage

Effective brand management helps a company differentiate itself from competitors. A strong brand with a unique value proposition can create a competitive advantage. Also, it establishes a positive and memorable image in the minds of consumers. This differentiation enables the company to stand out, attract customers, and command premium prices.

Increased Brand Equity

Brand equity represents the intangible value associated with a brand, including customer perceptions, loyalty, and brand associations. Strategic brand management enhances brand equity by consistently delivering on the brand promise, building trust, and creating emotional connections with customers. Higher brand equity increases customer loyalty, repeat purchases, and positive word-of-mouth recommendations.

Brand Awareness and Recognition

A well-managed brand generates awareness and recognition among target customers. Companies can ensure their brand awareness, is remembered, and easily identifiable through strategic brand communication and marketing efforts. This familiarity contributes to consumer trust and consideration, especially in purchasing decisions where consumers prefer brands they recognize.

Customer Loyalty and Advocacy

Building a strong brand fosters customer loyalty. When customers develop a positive relationship with a brand, they are likelier to remain loyal and continue purchasing its products or services. Loyal customers also tend to become brand advocates, promoting the brand to others through recommendations and positive reviews. This word-of-mouth marketing can significantly impact the brand’s reputation and attract new customers.

Price Premium and Profitability

Brands with a strong reputation and perceived value can command higher prices than generic or lesser-known alternatives. It helps justify a price premium by creating a perception of superior quality, reliability, and trustworthiness. This ability to charge premium prices contributes to higher profit margins and increased profitability for the company.

Brand Extension Opportunities

Well-managed brands enjoy greater flexibility in extending into new product categories or entering new markets. A strong brand provides a foundation of trust and familiarity, making introducing new offerings to existing customers or attracting new customer segments easier. Brand extensions can lead to business growth, diversification, and the capture of additional market share.

Resilience in Market Turbulence

Brands with a strong reputation and loyal customer base are generally more resilient during market fluctuations. In challenging times, consumers are likelier to stick with brands they trust and have a positive relationship with. Strategic brand management helps build brand resilience by maintaining consistent brand messaging. It also brands to adapt market changes and address customer needs effectively.

Conclusion

Strategic brand management is a roadmap for effectively managing and nurturing a brand. It ensures its relevance and success in a dynamic marketplace. It is a continuous process that requires careful analysis, adaptation to market trends, and consistent evaluation to meet evolving customer needs and expectations. By implementing this, companies can cultivate strong, valuable brands that resonate with their target audience and drive business growth.

FAQs

What is strategic brand management?

Strategic brand management is the process of creating and maintaining a strong and differentiated brand through effective strategies and tactics, including brand positioning, communication, and brand experience management.

Why is strategic brand management important?

Strategic brand management is important because it helps businesses establish a unique identity, build customer loyalty, and gain a competitive edge. It enhances brand equity, drives business growth, and contributes to long-term success in the marketplace.

How does strategic brand management impact customer perception?

Strategic brand management shapes customer perception by crafting a consistent brand identity and delivering a compelling brand experience. It influences how customers perceive the brand's value, quality, and relevance, which ultimately impacts their purchasing decisions and loyalty.

How can strategic brand management help in attracting new customers?

Strategic brand management helps attract new customers by creating a strong brand presence, developing targeted marketing campaigns, and offering unique value propositions. By effectively positioning the brand and communicating its benefits, it can capture the attention and interest of potential customers.

About the Author
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Chanchal Aggarwal
Senior Executive Content

Chanchal is a creative and enthusiastic content creator who enjoys writing research-driven, audience-specific and engaging content. Her curiosity for learning and exploring makes her a suitable writer for a variety ... Read Full Bio