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Introduction - Key concepts in Branding Development and Brand Management
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Brand means a term, name, symbol, design, sign, or mix of them which is used to identify the product of the company and to differentiate it from the competitive product and service. Brand development is a planned process for distinguishing and creating an organization's product image, and services to gain a competitive advantage over competitors. The development includes making a straight brand image with company objectives and goals, communicating the brand name to the target market, and strengthening the brand image as necessary. Brand development is a continuous process to achieve the common goals of an organization. This report is made to explain the key concept in branding and brand management through case company Vegemite which suggests new innovative ideas and products that make the company grow rapidly. However, the company’s strategies are developing with the change in traditions in order to reach the new target market for customers. Brand management is a function of marketing or promotion of a company’s product (Tewary and Mehta, 2021). The company uses various tools and techniques to manage the brand of the products over time. Efficient brand management allows companies to price their products to go up and make loyal customers with a positive brand image by creating strong awareness of the brand. The report will also highlight brand concepts applied by Vegemite to make a strong image of the company to achieve its objectives and goals. These concepts help the company to build marketing strategies and enhance its entire brand (Addison and Adelaide, 2022). An effective brand strategy is an official document that represents a convincing and clear image of the business in the mind of the customers, which helps them to achieve their goals.
Concept of branding in significance to marketing implication and professional for the company
Brand concepts are the necessary idea behind a company's branding that characterizes its objectives and goals. A business classically creates a brand concept to set itself unique from the competition. A branding concept gives a company a character that can help to attract customers and increase its reputation and revenue. The concepts usually converse with the emotions of customers and how the brand makes them feel. The concepts help the customers to easily recognize the company. Customers always choose a brand or company they are familiar with rather than a brand they never heard of before (Bite and Konczos-Szombathelyi, 2020).
An influential brand can boost a company's trust worthiness among customers, as well as in the marketplace and industry. The more creditability it gains, the more probable it is to build loyalty and competitiveness within the industry. An effective brand concept can set a business apart in a marketplace. While consumer trust stands up for a brand name, it gains a competitive advantage that helps the business to stand out.
Brand loyalty: this has been the ultimate goal of marketing the company's product. Brand loyalty is a customer’s commitment to repurchase the company’s products and can be verified by continual buying of products or services. Brand loyalty implies that the purchaser is willing to put away their own needs for the significance of the brand. Customer product loyalty can be a great asset to the company. Customers are enthusiastic to pay higher prices for the goods. This reflects the brand position in the eyes of the customers which influence other people in relation with the purchaser. Customer loyalty depends on 3 dimensions i.e. hard core who buy the brand products all the time, softcore is loyal to 2 to3 brands, and shifting loyal move from one to another brand. Companies can use the loyalty ladder tool for advertising communicators (Bilgin, 2018). The idea behind the brand loyalty is to scale up the loyalty of the customers using advertising strategies from the communication technique of marketing. Essentially customers become loyal to a brand that has significance to them about an experience, service, or product.
Brand equity: The Brand equity is the worth that is built up from the continuous hard work of marketing managers for the brand. It is based on how much a customer is conscious of the brand. The value of business brand equity can be planned by evaluating the predictable future profits and sales from the recognized product with the predictable future revenue from a corresponding non-branded product. The value can be measured with tangible, emotional, and intangible attributes. The procedure includes the scope of the franchise to imitate the brand which is reflected through the brand equity. This also helps marketers to enhance their value through effective and efficient marketing programs. Positive brand equity is shaped by efficient advertising or promotion and consistently meeting customer needs (Keller and Brexendorf, 2019). Negative brand equity frequently results in bad management. When the business has positive brand equity, consumers are willing to pay high costs for the products, even though they can get same product from the competitive brand. The brand with good equity does not need to invest in costly products when its competitors are working efficiently to substitute the products. It also impact on company’s sales volume and profitability because customers settle towards services and products with good reputation.
Brand awareness: this includes brand acknowledgment and brand influence to intellect the customers. Brand Recognition is the capability to verify preceding experience and to recall the ability to recognize the products of the brand. It also helps the company in making effective decisions. Brand awareness is at three levels such as brand recall, brand recognition, and top-of-the-intellect recall. Products that maintain high level of brand awareness generates more sales and profits to the company. Customers deal with choices by simply influencing through a brand name. Promotion in physical locations like stores is used to create brand awareness. Desire purchased products are well-suited for store allocation and advertising. Strong brand awareness campaign publicizing the public with a revised product and distinguish it from the competition. The companies are promoting their product through social media platform which is most important tool in creating brand awareness marketing. It also establishes the trust with customers by building invaluable equity and creates positive associations that allow company to connect with consumer.
Brand extension: this decision strategy is an effort to use a booming brand name to launch new products and product modifications. A thriving brand is an inspiration containing enough energy to light up different countries. This holds huge appeal for consumers and is a useful strategy that creates a lot of reputation or goodwill in the market. The category chosen for the extension should be compatible with the nature of the parent company. Also, there should be a consistent value perception of the company in the new category. The extension must have some intrinsic qualities which give the edge to a new area.
Analyze how Vegemite is using brand concepts in their management strategies and branding development
Vegemite brand owned by Bega Cheese Ltd. which is an Australian Food Company was operated in 1922. The company has a strong brand image and offers a variety of innovative products to its customers. The company uses its resources sensibly to create a compelling and focused product and offer it to the customer’s preference which finally leads to brand development. Branding concepts are consisting of the ideas behind a business branding that are put together to achieve organizational goals. A brand concept is a support to build marketing strategies and a brand name (Bogers, et. al. 2019). The Vegemite symbol has highlighting colors, with a thought of sunny rays which connect with the Australian climate. The symbol is consisting of Vegemite brand uniqueness, attracting forecast of building brand equity. Brand name contains capital letters aligned with packaging containers which give aesthetic looks and are easily noticeable. The brand extension can be organized in the development of the business range. The company acting as a spread allows other organizations to include its flavor within the mechanism of their servings. Vegemite sets out the financial support mechanism by which it finances sports and charitable activities to enhance its brand awareness locally.
The brand also utilizes celebrity endorsement which supports the positions. Celebrities influence their enormous public group to increase brand awareness for the brand. An appropriate brand relationship with the customers and other stakeholders is essential to make sure proper brand awareness of a product. The company has worked with other key brands countrywide to flourish products connecting the utilization of the product flavor as a part of their food item. In organizing the key brand extension initiative, the company positively advanced the image of its parent company Bega Cheese Limited within the country. The company’s goodwill allows for innovative branding strategies that make stronger brand positioning. The feedbacks received from the customers reflect the work done by the marketing team and also helps in further development to change the position of brand in the eyes of customers. With the beginning of interactive technologies and social media platforms, many brands are becoming more powerful in shaping sentiment about the brand.
Vegemite relies on social media platforms to facilitate brand image and allow feedback concerning their present and future decisions (Lindgren, 2019). Opportunities are also present in co-branding through brand activation and alliances, to offer equity. Vegemite's identity based on Australian autonomy is a chance to bring out consumer excitement. The company should believe in rebranding the logo to get better brand equity.
The Implication for the Positioning of the Brand
There are several brands on the marketplace that have a similar taste to Vegemite, targeting the Australian marketplace by connecting their brand with ‘Australian Made'. To maintain the Vegemite marketplace, Bega needs to adopt different positioning strategies. The company can achieve its targets by engaging a large number of customers using Australian recipes as an ingredient. Currently, the company is using a positioning strategy by renewing the saying "happy little vegemite" and introducing the idea of "you cannot get more Aussie than cooking with Vegemite. By giving importance to heritage and pride loyalty and the capability to include brand into day-to-day recipes, Vegemite maintains a different position from its competitors. The company has high loyalty and market share in the market which has enhanced its brand image in the mind of customers. The company aims to focus on effective marketing strategies to attract a large number of customers.
Vegemite’s brand logo is made up of iconic color combination which is a yellow sticker with a red diamond showing "VEGEMITE" in a white print. A dark brown container identifies the brand's uniqueness in the market and differentiates it from its competitors. The company adopted the branding development strategy by highlighting the cover of the recipe book with complimented picture of an Australian flag at the back cover The company’s marketing strategy aimed at establishing a unique identity in the mind of the customer, so that no other brand can competitive with the vegemite (Fayvishenko, 2018). The internal price factor is determined by the company's yeast products price based on promotion and production cookbook. External price factors of the recipe book are determined by cost connected with printing development, and publishing of the products. The company needs to price up the cookbook concerning the competition and to increase the value of the brand through the qualitative approach. The company's promotion strategy includes the winning recipe that will be shown in the cookbook and will be published on the brand's social media, websites, and via text messages directly to the customers. The company uses printed media in combination with social media and radio and online websites (Hu, and Trivedi, 2020). This will keep the public more conscious and up to date with rival results and the release of the brand's cookbook availability at supermarkets.
Important issues in the market facing the brand and its willingness to adapt to new challenges
Bega has decided to work on different aspects of its brand, the company is running for several years with its unique products and customer loyalty. The company decided to improve its product line over expansion. The brand aging started with some consumers' insight to launch new products that will increase the sales and profits of the company. The company’s is working get closer to the customer's demands and requirements in order to improve their products quality. The company searched for valuable insight and dive into the developing potential of Vegemite product extension in the market. Kraft foods started with their conquest of the ultimate revival strategies (Slootweg and Rowson, 2018). The company focused on a social listening strategy to gain some insight into customers' expectations from the brand. This will help the company from the customer's point of view and would also help them to implement new strategies. The customers associate the brand with words which include Australia toast.
The social listening strategy also concluded that the customers love to personalize foods and feel connected to the product. The company while working on the details upon the insights of the consumption of the product by the customer should consider every aspect of the brand position. The company should also adopt an extension strategy in its brand development to increase the market share for available products. The brand should keep its product lifecycle in maturity by-product extension to increase its sales and revenue. Extension strategies include discounting, rebranding, and expanding business in the new market to attract a large number of customers, which will eventually increase sales. Observing the marketing campaign's success, the company's parent organization, Kraft foods decided to dive into a product extension strategy (Ahmadi and Arndt 2022). The above strategy allowed the brand to boost product sales and expand in new markets by creating a new way of consuming the products.
The company launched the new snack product in the market at a record-breaking time to get success in its marketing strategy. This helps the company to create customer engagement with the brand and enhance its reputation in the new markets. The company then decided to name the product, which was named as isnack 2.0. The kraft food wanted to reflect the name which can relate to snacking element to differentiate it from classic Vegemite. For the customers, it sounds more like a technical product. The customer suggested changing the name of the product to some modern element. Although the brand proved that they are good listeners, in the beginning, are now it was time for them to choose a new name for the product to target a large audience and gain a competitive advantage.
Recommendations for Vegemite brand goals to apply its branding strategy
Branding goals describe what a business can expect to accomplish with its effective branding over some time. To create a strong brand image the company needs to have sound goals and effective brand strategies, which will help the company in the long term. The vegemite should create an emotional connection with the target audience so that they remain loyal to the company's products. The company should launch gluten-free products as customers nowadays are more concerned with cutting out grains and wheat. The purpose of consuming gluten-free products is to lower the risk of celiac disease and to give immunity to the human body because of this it is also known as toxin-free products.
A gluten-free diet is popular in almost all countries which gives vegemite a high possibility to increase sales. The term "gluten-free" comes out everywhere, including Vegemite yeast spread competitors. For a company to maintain its market share and market value position, Vegemite will need to change and include the necessities of consumer’s livelihood gluten-free (Beverland, and Cankurtaran, 2022). Even though the brand is enjoyed by many people but there is a customer segment in the market that prefer the light flavor. To capture this additional segment in the market, the company needs to introduce a less intensive flavor product. This can be done by rebranding the salt reduction option by Vegemite light.
Conclusion
The report has discussed the importance of brand development which acts as a true symbol of the individualism of the company. This report was built to look at the Australian company Vegemite and the overall development and growth of this brand. This brand development report aims to analyze the consumer brand ‘Vegemite’ which outlines the promotional strategies that are used by the company to find the target audience for the products. This also suggests a wide use of key branding concepts that are used to help Vegemite in achieving its objectives and goals. The report also discussed the significance of the product and the brand strategy plan that the company uses to sell its customers. The concept and principle behind the branding development are to attract a large number of customers to purchase the products.
The company should use innovative marketing strategies to outline customers towards Vegemite and not towards competitor brands. The company has used brand development strategies such as advertising, pricing, promotion, and effective sales channels of the product being sent out to customers. Brand management in any organization starts with an examination of how a brand at present appears in the market and proceeds to plan to achieve its goals and objectives. The company should continuously adopt new marketing strategies in its business operations to survive in the competitive market. The report has also highlighted the ability and willingness of vegemite to face new challenges in the market. The company also needs to adopt a new positioning strategy from its competitors to attract a large audience and this will also increase its sales and profits.
References
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