Thursday, March 08, 2007
Brand Strategy by David Aaker
BRAND STRATEGY
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“ by David Aaker “
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The strategic brand is one with strategic importance to the organisation. It is a brand that needs to succeed and therefore should receive what ever resources are needed. The identification of strategic brands is a huge step toward ensuring that brand building resources are allocated to the strategically most important business arenas.
There are , in general , three types of strategic brands : A current power brand ( or mega brand ) now generates significant sales and profits and is not a candidate for a cash cow status. Perhaps it is already a large , dominant brand and is projected to maintain or grow its position. Microsoft Windows is in this category. A future power brand is projected to generate significant sales and profit in the future, even though it is now a small or emerging brand. Centrino would qualify for Intel.
A linchpin brand will indirectly influence ( as opposed to ‘ generate’ ) significant sales and market position in the future, serving as the ‘ linchpin’ or leverage point of a major business area of the firm. The classic problem is that, if future power brands and linchpin brands have no current sales base, they get starved of resources.
The other side of the coin is when emerging areas and the linchpins of the future organizational vision get too much attention, and the existing power brands get neglected. Discipline must be used to identifying and prioritizing strategic brands based on future prospects.
--------------------------
“ by David Aaker “
---------------------------------
The strategic brand is one with strategic importance to the organisation. It is a brand that needs to succeed and therefore should receive what ever resources are needed. The identification of strategic brands is a huge step toward ensuring that brand building resources are allocated to the strategically most important business arenas.
There are , in general , three types of strategic brands : A current power brand ( or mega brand ) now generates significant sales and profits and is not a candidate for a cash cow status. Perhaps it is already a large , dominant brand and is projected to maintain or grow its position. Microsoft Windows is in this category. A future power brand is projected to generate significant sales and profit in the future, even though it is now a small or emerging brand. Centrino would qualify for Intel.
A linchpin brand will indirectly influence ( as opposed to ‘ generate’ ) significant sales and market position in the future, serving as the ‘ linchpin’ or leverage point of a major business area of the firm. The classic problem is that, if future power brands and linchpin brands have no current sales base, they get starved of resources.
The other side of the coin is when emerging areas and the linchpins of the future organizational vision get too much attention, and the existing power brands get neglected. Discipline must be used to identifying and prioritizing strategic brands based on future prospects.
