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Brand Development and Brand Strategy 217

8.3.4 Brand Strategy Development

The purpose of the development phase is to develop the brand strategy.
During this phase the positioning of the brand is developed. Also channel
strategy, pricing strategy, and future extensions to the brand are developed or
aligned. The following describes the steps in the brand strategy development
phase.

Brand Positioning
“The brand position is part of the brand identity and value proposition that
is to be actively communicated to the target audience and that demonstrates
an advantage over competing brands” (Aaker 1996). The purpose of brand
positioning activities is to create an identity that provides the brand with a
unique, credible, sustainable, and valued place in customers’ minds (Davis
2000). The positioning of the brand is the place in customers’ minds that
the brand is intended to own (Davis 2000, Reis 1981). Positioning is the
process of determining the impact the message (the brand) will make on
the mind of the prospect (Reis 1981). The effect of the positioning is to
create the necessary associations customers will think of when they recall
the brand. Some examples of associations of some well-positioned brands
are given in Table 8.5.

A brand’s position should be updated every 3 to 5 years, or as often as
needed to update the company’s growth strategy. Senior management has to
lead in developing, updating, and implementing the brand position.

Table 8.5 Examples of Top Brands and Their Attributes

Brand Attributes
Disney Family fun entertainment
Nordstrom Highest level of retail service

Saturn Your car company
FedEx Guaranteed overnight delivery
Wal-Mart Low prices and good values

Hallmark Caring shared
Source: Davis (2000).