The 2008 Olympics in BeijingEssay Preview: The 2008 Olympics in BeijingReport this essayThe 2008 Olympics in BeijingQuestion 1: Explain the role of the Beijing brand within the context of product strategy and identify its importance in attracting the targeted sponsorship required?
To answer this question I will start describing branding and its importance, and then I will show how it is related to the Beijing brand.What is a brand?According to the American Marketing Association (AMA), a brand is a “name, term, sign, symbol, or design, or a combination of them, intended to identify the goods and services of one seller or group of sellers and to differentiate them from those of competition” So it is when someone creates a new name, symbol, or logo for a new product, a brand has been created. The different part of a brand that differentiates from the competitors is called Brand Element. It is very important to distinguish Brands and products, “a product is anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a need or a want” (Kotler). So the brand is something you use to differentiate from the competitors. From a customers view brand is a perception about a product, service or company, which promises to meet certain criterias for the customers when they buy it.
A brand is very valuable and creates value through differentiation and is a platform form enhanced pricing, which can give you higher margins.“Creating a successful brand entails blending all these various elements together in a unique way-the product or service has to be of high quality and appropriate to consumer needs, the brand name must be appealing and in tune with the consumers perceptions of the product, the packaging, promotion, pricing and all other elements must similarly meet the tests of appropriateness, appeal, and differentiation.” (K, Keller, p7)
A Brand and its functionWhat function does a brand play for consumers?Identification of source of productRisk reducerSearch cost reducerSymbolic deviceSignal of qualityWhat role does it play for the seller of the brands?Easier to introduce new products.Help to repeat purchases.Promotional efforts by helping to give the firm something to identify to.Premium pricing can differentiate the product from the consumers and not become a commodity.Market segmentation enables the marketer to deliver a specific message to the target group. Who the product is for and for who is not.Brand loyalty makes the buyer to develop a relationship with the product.Even for buyers the brand has functions to reduce search cost, perceived risk and psychological risk. For example when you go to the store you and if you know which brand you want it will be easier to choose, you know what you get and you walk out of their feeling good knowing what to expect. As you can see here brands is more helpful for the seller than the buyer which may explain why buyers are more insecure towards brands than the brand owner.
Brand equity and branding strategyIn 1980 the concept of brand equity started, since then it has been defined in many different ways and there is no common view on how it should be conceptualized and measured. A way of describing it that I find good and easy is:
“Brand equity is the willingness for someone to continue to purchase your brand or not. Thus the measure of brand equity is strongly related to loyalty and measures segments on a continuum from entrenched users of the brand to convertible users” (K, Keller, p43.)
There are four different basic brand strategies:Line extensions – when additional products are added to the same brand name. Like new packaging, colours or flavours. This is a good way to response to competitor if they release new products.
Brand extensions – when widen the product range with the same brand. For example Richard Bransons company Virgin, same brand but many different products and services. It creates better advertising effect, brand credibility and existing brand awareness. The risks are that it could create diffusion among the consumers. It needs a lot of research and preparation before using it.
Multibrands – when creating different brands but within the same manufacture. For example Coca Cola – Fanta, Sprite and Bonaqua. Helps you to reach more segments and differentiate.
New brands – when you need to reach new segments with the same production. For example when Toyota created Lexus to reach a more luxury segment.Sports and event marketing is today very important and big business. Today almost all sports team are being marketed through a creative combination of promotion, advertising, sponsorship, direct mail and other forms of communication. This helps to create awareness and loyalty to be able to meet targets for ticket sales even if it is not going very well for the team. Especially the logo or the brand symbol has become very important to enable sponsorships and contributions for the team. I will now look closer on the Olympic Games 2008 in Beijing and its brand importance.
