Benefits of Developing a Brand

The Benefits of Brand Development

The Benefits of Brand Development

Brand development is defined as, “A metric of marketing success that measures the number of sales within a specific market. . . ” (Dictionary.com, n.d.)Developing the brand of a company is an essential and necessary aspect of marketing a product, as well as a business. Brand development is about creating a name that is known in the public, and that gets the public to spend their dollars.When brand development is done properly, it’ll translate into the success of the company and its products.

The Children’s Collective, Inc.

The Children’s Collective, Inc. is a nonprofit child development program. The organization has more than 40 years of services to children and their families. As a result of the work withchildren and their families in the community they have earned the trust of residents and the child development centers continue to provide child care and developmental services to thousands of children each year. There are more than nine licensed child care centers located in the Greater Los Angeles area, it’s safe to say the organization has branded itself well in the community. However, TCCI does not just offer child care services to the community, the company also offers support to youths, working parents, and expecting women through programs designed to provide needed services to support the continued growth of family. In essence, the company has expanded its brand from child care and developmental services, to an overall community base program offering many different types of services to the community and its residents.

Over the years the organization has had the opportunity to expand its brand into offering low-cost medical services to the community; however, making that transition has proven to be more than challenging. Diversification of services is important to the continued building of a brand, yet at the same time it can become a problem if it begins to cause damage to the brand. For TCCI, breaking into the medical industry would mean taking its attention away from a brand that’s already winning; it’s just not worth the risk.

Nike

Nike was originally founded as the Blue Ribbon Sports Company in 1964 and in 1971,changed its name to Nike. A track athlete and his coach started Nike; creating the original shoes and selling the shoes from the trunk of their car. After early success they expanded to retail shops and gained a 50 percent market share in the United States by 1980. Developing a brand with catchy ad slogans was non-existent until Nike came around. Nike’s most infamous ad slogan “Just Do It” is known worldwide through many different languages. The “Just Do It” slogan was also awarded a top five slogan for the 20th century. Making a brand a household name is tough; these accomplishments are signs of great brand development and awareness.

Since the inception of the Nike running shoe, they’ve crossed over into many other categories of the sports apparel industry. Nike sponsors countless athletes and are consistently innovating new technologies. One of the major line extensions is the brand Nike Golf. Other sports like basketball have been a huge developing sport for the brand of Nike. Nike’s Jordan brand shoes are one of the most collected items in the entire sports world. Although some of the sports Nike diversified have not been as successful, they continue with the production providing consumer’s high quality option over its competitors.

Levis Strauss & Co.

In 1872 Levi Strauss made the first pair of blue jeans at the request of Nevada tailor. Soon after making the first pair of jeans Strauss realized there was a market for blue-collar workers to have sturdy pants. Strauss did what had never been done before; using denim to create pants and called it jeans. Strauss knew he has something special as the only company to design pants for men’s work wear and decided to patent and develop a brand. The benefits of branding Levis jeans were to set apart the design of pants from any competitors. When customers hear the name Levis jeans they instinctively know that they are getting strong denim work wear. Levis Strauss & Co. did not stop once it became the number one jean company in the world but used line extension to benefit itself. Levis used its brand to promote a different type of product “Dockers Khaki Pants” designed for white-collar workers. Although Levis achieved great success with ‘Dockers Khaki Pants” it was sure not to venture too far out with product spreading because of diversification. Consequences of diversification using Levis brand can result in loss of power if customers lose sense of direction in the brand name (Maariotti, S. 2007). The same is true with licensing the Levis name to licensee this can tarnish the brand name. For example, it would not be good for business to allow another jean company to license their name to promote jeans not made by Levi.

Puma

The famous Puma Group are owners of the brand Puma, Dobotex, Brandon, and also Cobra Gold. Dobotex, is a brand out of the Netherlands, founded in 1979 (Puma Brand, 2015). According to “Puma Brands” (2015), Dobotex is the developer, producer, and the distributor for body wear and socks for Puma, and other well-known brand names. In the near future Dobotex will continue to expand and distribute other top international brands. The Brandon designs are the producers and distributors that distribute licensed merchandise across the world. Brandon designs help companies to maximize on their largest global return. Examples of companies that Brandon designs works with besides Puma, are the Italian federation football and Ferrari. Unlike the other two brands that create the Puma brand, Cobra Gold completely integrated with Puma and is how they got their name as Cobra Puma Golf. Cobra Puma Golf has allowed Puma to sell golfing gear making Puma a harder competitor to compete with and become a very important player in the golf sector.

A benefit of developing a brand is that the company achieves customer recognition. The benefit of line extension is the company becomes a harder competitor to compete with, with larger variety. The consequence of diversification is all products are spread out and one market could do better, causing products to not sell quick enough missing the trend. A benefit of licensing is the brand owner owns the brand and no one would be able to copy or steal ideas.

Under Armour

Kevin Plank was an ordinary college student playing football. Changing up to five cotton shirts a practice during two a days was just not cutting it. He decided to develop a product for his needs, creating Under Armour. He was able to work out of his grandmother’s house until it was out grown. A brand was created because there was a need. He was able to extend his line with great performance shirts and other productive products. In 1997, Under Armour introduced the now-famous ColdGear® fabric, which keeps athletes warm, dry, and light in cold conditions, and then the AllSeasonGear® line, which keeps athletes comfortable between the extremes (“Under Armour”, 2015).

Kevin’s wants to expand quickly became a bit of holt in his plans in 1999 when it made him reevaluate what he was set out to do to in the beginning. He realigned his company and its goals and pushed forward. Not only had he created this successful athletic line he was able to license it out to see how successful it truly could be.

Conclusion

In conclusion, brand development is an important part of the marketing strategy of any business. As the public begins to know the name of the business and the products that it offers, revenue begins to increase. An increase in revenue over a period of time is a clear indication that the brand name of the business and its products are a success. However, in the development of a brand it becomes important not the stretch the brand too thin. Going too far outside of the original brand could prove to be a disaster. In short, it is important to stay close to what the organization originally built, while not being afraid to take risk. This is known as successful brand development.

References

Mariotti., S. (2007). Entrepreneurship: starting and operating a small business. Retrieved

from The University of Phoenix eBook Collection database..

Dictionary.com. (n.d.) http://www.businessdictionary.com/definition/brand-

development.html#ixzz3owGB4Z5w

The children’s collective, inc., (n.d.). Retrieved from http://www.childrenscollective.org/https://en.wikipedia.org/wiki/Nike,_Inc. (n.d.). Retrieved October 15, 2015.

Puma Brands. (2015). Retrieved from http://about.puma.com/en/this-is-puma/brands

https://en.wikipedia.org/wiki/Nike,_Inc. (n.d.). Retrieved October 15, 2015.

Under Armour. (2015). Retrieved from http://investor.underarmour.com/company/history.cfm

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