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208   Chapter Eight

        In brand development, the company should design a desirable brand identity
        based on a thorough analysis of the marketplace, competitors, and the
        relative strengths and weaknesses of the company itself, in order to achieve
        the best customer brand image possible.


        Product
        Customers do not buy brand symbols; they purchase products. Initially,
        customers may be influenced by advertisements or their friends’ advice to
        try a product with a certain brand name, but the product has to perform up
        to customers’ expectations. If the product performs equal to or better than
        customers’ expectations, the perceived brand image will be confirmed
        by customers’experience; that will trigger word-of-mouth recommendations,
        sales will grow, and the positive brand image will spread among more and
        more customers. In order to accomplish this, it is very important that the
        actual product characteristics, such as functions, performances, and quality
        levels, be consistent with the brand identity. Therefore, product development
        has to go hand in hand with brand identity design; the product development
        process has to be in tune with brand development.

        Price
        The role of price in brand development is quite interesting. The brand price
        is related to the benefits that the brand provides, as illustrated by Fig. 8.8. If
        a price is too high relative to the benefits that the brand provides, the
        perceived value in customers’ minds will be low. Customers will think this
        brand is overpriced. However, if the benefits that the brand provides are
        high, but the price is low relative to the benefits, the customers’reaction can
        be quite complex. Theoretically, customers will be happy to get more and
        spend less, but the perception of a “cheapo” product may creep in, which
        may undercut the brand image. Usually, benefits are the main focus for
        brand identity creation. If you have more benefits and customers are happy



               Functional  Emotional Self-expressive
                benefit                                  Relative
                        benefit  benefit                  price







                               Value proposition
        Figure 8.8 The Relationship Between Price and Benefits of a Brand (Aaker 1996)
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