The Role of Online Brands

As Internet usage grows, brands are becoming even more important than they have been in other channels or environments. With more choices from many unknown providers, customers tend to choose a provider that represents a set of Values or attributes that are meaningful, clear and trusted. Breakenridge (2001:323) states that the strength of the brand together with technology has the potential to produce the "optimum brand". Pettis notes that branding has become much more important recently because of the proliferation of choice that's available to customers on the Internet. It is also important to note that branding is a critical component of the building long-term relationship on the Web. Mohammed et al suggest that, rather than viewing branding as a sub component of the product, it must be developed as moderating variable upon the elements of the marketing mix. Mohammed et al  explain that branding plays two roles in marketing activities. Marketing programmes affect how consumers perceive the brand, and hence its value. Second, branding is part of every marketing strategy. That is each marketing activity is enhanced if the brand is strong, or suppressed if the brand is weak. Therefore, branding is unique insofar it is both lever and an outcome of marketing actions.

By putting more information in the hands of consumers, digital technology might be expected to undermine the power of brands. Many said that the Internet would do away with the need for brands. This argument according to Bergstrom (2000:11) suggested that because people could  examine and access any product or services from every possible provider via the Internet, the brand would be irrelevant, since consumers would always choose the one with the lowest price. Whether decisions are solely base on price is questionable? A few years after Bergstrom's research, Rowley (2004b:131)) confirms that the notion of relying less on brands in the online environment still exists. The research further points out that since customers will gather detailed information on products and services and make their own judgment on the suitability of a product, brands can become superfluous. Both Bergstrom (2001:1) and Rowley (2004b:131), however, point out that over time it was proved that brands are even more important in cyberspace than they are in most other channels of environments.  The reason: " With more and more choices from many providers that are relatively unknown, customers tend to choose a provider they know--one that represents a set of values or attributes that are meaningful, clear, and trusted (a brand), especially if they cannot see or confirm that the provider is 'real'. "With many options to choose from and fewer personal relationship online, customers tend to turn to trusted and trustworthy brands that represent more intangible qualities. This was also the observation of Wind & Mahajan (2001: 12) who during the above period pointed out that as digital technology transcends national borders, companies need to pay more attention to the development of global brands. Breakenridge (2001:319) also warned that one must not underestimate the power of a well-known brand combined with a medium that enables it to reach audiences instantaneously, enhance user experience with engaging interaction ( prior to any purchase of a product or service), and increase overall awareness, allowing brands to reach new heights. Online Brands, according to Pettis (1995:209), delves into the depths of brands to a greater degree than most offline methods. Mohr (2001:287) argues that the growth of popular Internet companies shows that a brand  can grow and secure customer loyalty on the Internet. It is also a fact that brands are what people can rely on, and hence become even more important in an environment, such as the Internet, that has a low switching cost (The Economist, 1999:71). For some the idea of customer loyalty may seem outdated in the era of the Internet, where customers have the ability, to search and evaluate competing products at the click of a button (Calrke, 2001:160), However, the very fact that customers can so easily access alternatives, and then just as easily purchasing them, augments the importance of building strong ties of loyalty with online customers.

The Internet seems to be a marketing frontiers, in which tried and true models of advertising and marketing may not work in the same way traditional media.However, the reality is that emotional, fuzzy branding components that can be powerfully conveyed through television are not so easily conveyed in an online environment (Mohr 2001:287). It must be kept in mind that customers in a physical world can touch or feel products, but online customers do not enjoy the same level of sensory intake provided by online brands. Therefore, things such as speed and response time also play an important role. Online branding, for this reason, requires a credible and relevant promise with every interaction (Siegel & Zolli, 1999:50)

The opportunity are enormous for well-positioned brands on the Internet, since the potential audience for a product or service grows daily. it is however, important according Bergstrom (2000:12) to realise that branding on the Internet, if done correctly, can help to determine the difference between the winners and the losers. Despite the obvious advantage, many companies are likely to make some common mistakes in relation to their brands in Cyberland. They may for instance wrongly assume that their brands will have some appeal to Internet users as to traditional channel users, losing sight of the fact that Internet, users do have significant attitudinal differences.

How To Build A Successful Brand

In today's International Business World, it is more difficult to compete successfully and ultimately provide return to the investor's. The Challenge seems to overwhelming especially with many corporations working on a quarter to quarter basis for a fear of negative reactions from the stock market and stockholder.

Thus a number of companies small and large, strategically are attempting to build a brand for their companies. Why? Because a product can be imitated but a Brand cannot. The pressure of day to day to business, with a focus on volume, force many company into commodity business and they compete on price. The proliferation of competitors, short term objectives and opportunity to invest elsewhere also make it difficult to invest in building brands plus internal bias against innovations and changing strategies add to the complexity . And today's fragmented media and market, plus the complexities of creating branding strategies and relationship makes the process extremely difficult , if not impossible.

Thus a process has to be developed  that creates a team...a team leader, time line, a time table and a budget to accomplish the objective.

Building a brand takes commitment, focus and three to five years of complimentary programmes. It is just not an advertising programme, It is company wide-effort that unifies everyone's energies, towards the same common objective.

There are number of approaches to building a Brand. The one that Harley Davidson used back in early 1980's was simple. It was easy to understand and thus communicable to various tagets.

Simply three basic questions were asked, analyzed, defined, redrafted and then put to work. But the work five years to do. Each year a different programme was launched to develop foundation for the brand.

It took dedication and focus of limited resources to execute the various strategies  in the different functions of the company. Each department had to take it's turn, develop it's plan and execute a defined strategy.

But first the three strategic questions?

Who are We?

Who are our Customer's?

What do they expect from us?

Who are we?

Is your company a house of several brands, or is your company branded house with sub brands? What does your company do? Provide a service, promote a cause,  build a product or create a lifestyle? Whatever it, is your statement of who you are should differentiate yourself from your competitors.

At Harley-Davidson, it was simply put "Harley-Davidson  builds big beautiful American Motorcycles."It does not build mopeds, or dirt bikes or small commuters bikes. The styling is uniquely custom, classic in design, with an evolutionary strategy not a revolutionary product development cycle that competitors had, with new design, new engines, and new product every year. The lines are smooth, with curves and shapes, and each part has a simple function. And the bikes are built in America by American craftsmen, engineers and most of all real motorcyclist. We ride with you they don't.
(Clyde Fessler is the former vice president, business development, Harley Davidson Motor Company)

Who are our Customers?



This is one of the most difficult aspects of the process. Are they the people who buy our products now, and how many of them are there? Or is our customers someone who aspires  to the brand what is stands for, and wants to be included? Is our definition going to be exclusive or inclusive to show the potential where we are going and whom we want to reach?
The analysis of the customer should understand the trends in the marketplace, the motivation behind the buying process, the unmet needs of the customer and the subtle differences in the segmentation.
Another important aspect in creating a brand statement is understanding your competitor's brand, if it has one. What is its image, what does it stand for? Every company has strengths and weaknesses.
A SWOT analysis of each competitor should indicate what its strategies are. If you are deep enough, its vulnerability will eventually surface. Taking the time, being disciplined and involving the tam will bring surprising results. Then, start all over and do the same for your company.
A thorough self analysis is where the real fun begins. Internal SWOT analysis will open eyes.But, really understanding your brand image, your traditions, your heritage and above all your company values, will not only help you craft a brand statement, but will also help your company discover your potential and what capabilities are to reach your target audience.




What do they expect from you?


Believe  it or not this easiest part of the process. If you have done the homework, the expectations should flow from your findings. Understanding your brand identity and what it means to your customer, is another way of addressing it.
Each brand has its own personality, a relationship with the customer. Defining your company as an organisation, and understanding what it brings to the table, all contribute to what some refer to as the value preposition. Simply put: what are the benefits, both functional and emotional, that the brand gives to the customer?
Now comes the most difficult part...identifying the potential programmes that will build the foundation for the brand, priorities them, create a time table, allocate the resources and communicate and execute the plan. Do one programme a year, take five, six or seven years to do it. Do it slowly. do it right and most of all...stay on the strategy.

Importance of Brands

In any but most primitive societies or where the economy is totally controlled ( a rare phenomenon these days) people seldom buy goods -  to satisfy needs. They buy brands - to satisfy wants. How often people ask for soft drinks? They specify Coke or Pepsi or perhaps 7up. Women do not buy shampoo , it is Pantene, Sunsilk or Head & Shoulders.

Why do Customers prefer to buy Brands??

A Successful brand :

• Is perceived as a unique bundle of benefits - tangible and intangible - that match the buyers want very closely
• Signifies consistency of quality and hence dependable performance.
• Reduces effort, risk and uncertainty during purchase.
• Identifies, promises and reassures....

A brand is essentially a marketer's promise to deliver a specific set of features, benefits and services consistently to buyers, but it is complex symbol that may symbolize six levels of meaning

1. Attributes : Mercedes suggest well built, expensive, durable and well engineered cars
2. Benefits : Attribute translated into functional and emotional (tangible and intangible) befits. "Durable may translate into functional benefit " I may not have to buy another car for several years", expensive may be perceived as emotional "Mercedes makes me feel important"
3. Values : The producers values are enshrined in the brand. Mercedes indicates high performance safety and prestige.
4. Culture : Mercedes suggest German culture - Organised, efficient and high quality.
5. Personality : Mercedes may suggest a "no nonsense" boss.
6. User : Mercedes is "for those who arrived" not a junior officer or a college student.

For customers, brands are products with added values, often intangible, always desirable. Added value arise from brand experience (leading to familiarity and hence reduction of risk) from belief in the efficacy   of the brand; from the user profile; from the appearance due to packaging; from advertising. Also from celebrities endorsing the brand.

Brand - A name, term, sign, symbol or design or a combination of these, used to distinguish products of one marketer from products of competing sources.

Brand Name - that part of the identity that can be pronounced;

Brand Mark - that part which is recognizable but cannot be uttered.

Trade Mark - a brand identity which is legally protected against deceptive look-alike, counterfeits etc.

Branded products have become utterly important over the world and in India; in the past couple of decades, a few hundred brands have been launched in India, many to inglorious deaths. Even when products have been largely sold as commodities, brands have been launched to cater to the minuscule minority that wants, and can afford to pay for branded satisfaction. Examples like branded atta, rice, chicken...