Essay About Successful Brands And Recent Years

Building Value-Based Branding Strategies
Join now to read essay Building Value-Based Branding Strategies
Building value-based branding strategies
PETER DOYLE
Warwick Business School, University of Warwick, Coventry CV4 7AL, UK
Marketing professionals oversimplify the problem of building successful brands. As
companies such as Xerox and Procter & Gamble have learned, brands can have strong
consumer franchises yet still not generate value for investors. Brands that create shareholder
value have to meet four requirements: (1) a strong consumer proposition, (2) be
effectively integrated with the Ž rm’s other value-creating assets, (3) be positioned in a
sufŽ ciently attractive market and (4) be managed in order to maximize the value of the
brand’s long-term cash Џ ow. This paper shows that, when managers attend to all four
determinants, they can enhance brand values and develop more effective marketing
strategies.
KEYWORDS: Brands; shareholder value analysis; marketing; strategy
INTRODUCTION
In recent years many of the companies most renowned for their branding and marketing
skills have been seen to stumble on the stock market. Coca-Cola, Procter & Gamble, Marks &
Spencer, Gillette, Xerox and British Airways have all jettisoned their chief executives in the face
of sliding share prices. Brands have not been the promised panacea in today’s highly competitive
environment. In contrast, many of the companies that have dramatically succeeded in creating
value for investors, such as Dell, Vodafone and General Electric, have not been noted for their
branding investments.
Many marketing-orientated companies such as Procter & Gamble and Gillette have oversimpli
Ž ed how brands add value to the performance of a business. Marketing has overwhelmingly
focused