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Marketing Case Study

593 words - 3 pages

Is it important to develop Brand Equity?

It is important for sure. Basically brand equity is the added value endowed on products and services. It may be reflected in the way consumers think, feel, and act with respect to the brand. Therefore if the development of brand equity is good, consumers would think and feel good respect to the brand. In this case study, in order to develop brand equity, P&G studies its customers, and have long-term outlook, P&G’s products are developed to meet customers’ needs, and have clear focus which is customer orientated. P&G continually improve the product through product innovation to offer new consumer benefits, and they designed products of above average quality and continuously improves them in ways that matter to customers.

As companies or brands grow and become more established, the threat of ...view middle of the document...

When the market size for the product category is quite large, a company can follow a product branding strategy provided the sales generated could fund the investment in the brand. In the case of a relatively small size of a market, growing slowly as well, the investments in a brand may not be justified. In such situations, the company should look at leveraging an existing brand asset and go in for options such as double branding, umbrella branding or endorsement branding. This will reduce the branding expenditure and also reduce the payback period for the brand. When the competition is fierce, there is a huge need to highly differentiate the product offering. This requires communicating specific consumer benefit and the brand's personality dimensions. The choices available to the marketer in a competitive environment are product branding, endorsement branding or double branding depending on the resources available. If the competition is low, there may not be a need to create separate brands for each offering.

In the case study, the market size for P&G company is incredibly huge, and competitive. And because P&G has enough company resources or in other word, budget, it implemented both brand extension strategy and multi-brand strategy, aim to distinguish their products from other competitors. To further spread the brand image to more customers P&G decided to become the nation’s largest advertiser. As P&G has its single brand identity - a separate brand for each product. For example, in laundry detergents P&G offers uniquely positioned brands such as Tide, Bold, etc. P&G decided to build a brand-management system, in which one executive is responsible for each brand. The system has been copied by many competitors but not offer with P&G’s success because basically every company is different even though they are all producing same kind of products.

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