Page 247 - Design for Six Sigma for Service (Six SIGMA Operational Methods)

216 Chapter Eight

For a realistic brand strategy, the desired brand identity should be
supported by the organizational strength of the company. It is
necessary to find out the company’s and products’ strengths and
weaknesses. We need to find out what the company is good at, what
the company is not good at, and how and how much these weaknesses
can be changed. If a company is pursuing a goal that cannot be sub-
stantiated due to its weakness, then the goal will not be achieved.

Competitor Analysis
The competitor analysis is focused on understanding the current image,
positioning, strengths, and weaknesses of competitive brands in the mar-
ketplace, as well as the possible future trajectories of these competitive
brands (Aaker 1996). This analysis will develop an understanding of the
following aspects:
1. The customer’s perception of competitive brands. This information is
a fundamental input for brand identity determination. Because it tells
how customers perceive competitors’ brands, it provides a basis for
determining what needs to be done to differentiate the company’s
brand from competitors’brands. It is important to find out what are the
functional benefits to customers, how these benefits compare with that
of the company’s brand, the brand-customer relationship, and brand
personality.
There are two sources from which to get this information. One is from a
customer survey study on competitors’ brands. The other is from com-
petitors’ own information; for example, competitors’ advertisements
and advertisement plans can provide clues as to what kind of brand
image they want customers to perceive.
2. Previous changes in competitive brand positioning and the future market
positioning (strategic brand objectives) of competitors. In the brand
development process, it is important to consider not only the current
images of competing brands but also past changes and possible future
changes in these images. A thorough examination of such changes can
provide useful information about the reasons for such changes and the
reality of the competitive environment.
3. Strengths and vulnerabilities of competitors. Information on strengths
and vulnerabilities of competitors provides valuable inputs for a
company’s brand position. It is difficult and costly to compete head to
head with the strong points of competitors. It is much easier to
compete in the areas in which your competitors are not strong.