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Brand creation offensive & defensive competitive advantage


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Brand creation offensive & defensive competitive advantage

  1. 1. Brand Creation Offensive & Defensive Competitive Advantage By: Mohamed Mousa
  2. 2. Brand &Competitive Advantage Definition • A Brand is a product, service, or concept that is publicly distinguished from other products, services, or concepts so that it can be easily communicated and usually marketed. A brand name is the name of the distinctive product, service, or concept. Branding is the process of creating and disseminating the brand name. Branding can be applied to the entire corporate identity as well as to individual product and service names. • A competitive advantage is an advantage over competitors gained by offering consumers greater value, either by means of lower prices or by providing greater benefits and service that justifies higher prices.
  3. 3. Brand Equity • Brand equity is the brand assets which are linked to a brand’s name & symbol that add to particular product or service There are four dimensions of brand equity: • • • • Brand Awareness – Do consumers know the brand – How does awareness affect their perception about the brand Perceived Quality – What do consumers think of quality Brand Associations – What are consumers associations with the brand – Imagery, product attributes, brand personality, symbols Brand Loyalty – The heart of any brand!!
  4. 4. Brand Identity • Identifying brand identity elements that differentiate and create customer-brand relationships is one of the first steps towards establishing a set of brand equity measures. • Brand Identity: a vision of how that brand should be perceived by its target audience. Brand Identity represents what the organization wants the brand to stand for. • Brand Identity Value Proposition Relationship
  5. 5. Brand is a Competitive Advantage • Branding is not just advertising, nor is it simply a catchy name for a company or product. The most important value in a brand is the value that it holds for actual customers, This value is very difficult and expensive to build - and fragile and easy to destroy. • Brands are valuable simply because they cause customers to be inclined to purchase your product rather than someone else's. • Consumer Perceptions of brands and slogans.
  6. 6. Brand is a Competitive Advantage • A strong brand will project an image of a large and established business to your potential customers. People usually associate branding with larger businesses that have the money to spend on advertising and promotion. If you can create effective branding, then it can make your business appear to be much bigger than it really is. • A strong brand projects an image of quality in your business, many people see the brand as a part of a product or service that helps to show its quality and value
  7. 7. Brand is a Competitive Advantage • A strong brand creates an image of an established business that has been around for long enough to become well known. A branded business is more likely to be seen as experienced in their products or services, and will generally be seen as more reliable and trustworthy than an unbranded business.. • The main benefit of branding is that customers are much more likely to remember your business. A strong brand name and logo/image helps to keep your company image in the mind of your potential customers.
  8. 8. The Road to Branding Success • Building on the inherent values of a brand should be the core of any branding strategy. If they’re not clear, get a good grip on them first. Is the brand about honesty or integrity? Quality? How about excellent communication and customer satisfaction? • With values set, a brand proposition is ready to be established. Objective and comprehensive branding research are the keys here. At a minimum, both must be done to establish clarity on the brand’s strengths and weaknesses, the target audience and the competition. If possible, branding research should also be done on the brand’s industry, its history, the status of the market and possibilities for future expansion. • The most objective way to evaluate your brand is to measure the outcomes that occur with and without the use of your brand. Brand Sales = (Cost + Margin) * Volume
  9. 9. Offensive and Defensive Strategies Offensive Strategies Used to build new or stronger market position and/or create competitive advantage Defensive Strategies Used to protect competitive advantage (rarely used to create advantage)
  10. 10. Types of Offensive Strategies 1. Initiatives to match or exceed competitor strengths 2. Initiatives to capitalize on competitor weaknesses 3. Simultaneous initiatives on many fronts 4. End-run offensives 5. Guerrilla offensives 6. Preemptive strikes
  11. 11. Attacking Competitor Strengths o Whittle away at a rival’s competitive advantage o Gain market share by out-matching strengths of weaker rivals Guerrilla Offenses Use principles of surprise and hit-and-run to attack in locations and at times where conditions are most favorable to initiator Preemptive Strikes Involves moving first to secure an advantageous position that rivals are foreclosed or discouraged from duplicating!
  12. 12. Attacking Competitor Weaknesses Utilize company strengths to exploit a rival’s weaknesses Weaknesses to Attack o Customers that a rival is least equipped to serve o Rivals providing sub-par customer service o Rivals with weaker marketing skills o Geographic regions where rival is weak o Market segments a rival is neglecting
  13. 13. Launching Simultaneous Offensives on Many Fronts Launch several major initiatives : - Throw rivals off-balance - Splinter their attention - Force them to use substantial resources to defend their position. A challenger with superior resources can overpower weaker rivals by out-competing them across-the-board long enough to become a market leader!
  14. 14. End-Run Offensives  Maneuver around strong competitors  Capture unoccupied or less contested markets  Change rules of competition in aggressor’s favor Choosing Rivals to Attack • Four types of firms can be the target of a fresh offensive – Vulnerable market leaders – Runner-up firms with weaknesses where challenger is strong – Struggling rivals on verge of going under – Small local or regional firms with limited capabilities
  15. 15. Using Offensive Strategy to Achieve Competitive Advantage • Strategic offensives offering strongest basis for competitive advantage entail o An important core competence o A unique competitive capability o Much-improved performance features o An innovative new product o Technological superiority o A cost advantage in manufacturing or distribution o Some type of differentiation advantage
  16. 16. Defensive Strategy o Lessen risk of being attacked o Blunt impact of any attack that occurs o Influence challengers to aim attacks at other rivals Approaches o Block avenues open to challengers o Signal challengers vigorous retaliation is likely Conclusion : Creating A brand is always offensive competitive advantage when all brand and offensive strategy characteristics are found and matched on the brand .
  17. 17. DOCKERS: CREATING A SUB-BRAND Dockers is a brand of khaki garments from Levi Strauss & Co. Levi Strauss & Co., then specialized in denim, introduced the Dockers brand in 1986. Dockers became a leading brand of business casual clothing for men led by Bob Siegel. In 1987, Dockers introduced a women's line. In 1993 the Dockers brand was introduced into Europe under the leadership of Joe Middleton. Dockers makes khaki pants and leather wallets
  18. 18. DOCKERS: CREATING A SUB-BRAND Conclusions • Dockers had the characteristics of a brand : - Brand equity dimension were found on Dockers , form my point of view Dockers got this from levis sub-branding. • Brand Awareness: People already now levis well. • Perceived Quality: Made from Cotton Concept of levis made strong position for Dockers. - Brand identity was target casual clothes for American male teenager—was now 25-49 . - Brand is valuable - Levi's Dockers casual pants was a Consumers respond to the product design, which utilized the comfort and casual feel of cotton. - Dockers to made it a billion-dollar brand by 1993. - The Dockers brand achieved record sales growth in 1998 and Fortune magazine estimated in 1999 that 75 percent of American men owned a pair of Dockers
  19. 19. DOCKERS: CREATING A SUB-BRAND Conclusions - Creating Dockers brand was offensive Strategy to Achieve Competitive Advantage. - Levi’s is a brand recognizable in the whole wide world. There is no person who wouldn’t be able to associate correctly the Name with the product. LS&Co has managed to create something timeless, just like their classical 501 blue jeans. - New brand strategy to ―offer products for every life style‖, which turned to be a fiasco. Not only it didn’t bring expected results, what is more, this to big diversification caused drops in sales. - It was so decided to come back to the core product and it’s image. To strengthen the Levi’s position on a market, their launched a new campaign which emphasizes emotional connection between jeans and theirs owner. To wear 501 it is to be yourself – they said. - Company also took the advantage of changes that started to appear according to the dress code at work place.
  20. 20. DOCKERS: CREATING A SUB-BRAND Conclusions • From my point of view creating Dockers brand was ―EndRun Offensives‖ strategy Which Captured unoccupied or less contested markets on casual pants, And matched the Change rules of competition which resulted from generation old change and Changed circumstances .