Over the past long period, products and brands continue proliferate. A good analysis and understanding of brand value and market segmentation is more essential than ever. Based on the theory of brand, product, market segmentation and target, a new product will be developed in the market to improve company’s performance and make profit. The information generated from this report is used for strategic planning, resource allocation and tactical marketing.
What is a brand?
It has been asserted (Kennedy, 2012) that, a brand collects name, symbol, design, logo and term together, intended to identifies and differentiates a product or service. Consumers regard brands as an essential element of the production, and most companies usually charge a higher price due to the influence of branding, like Louis Vuitton. Belch, Belch, Kerr, and Powell (2009) depicted that, brands could make choices for consumers, which like something consumers want to buy, avoid, aspire and outgrow. Duncan (as cited in Belch et al., 2009) describes a brand as ‘ a perception resulting from experiences with, and information about, a company or a line of products.’ A brand is not just the production or a service, it can be seen as a symbol of a product. For instance, it is easily to recognize two clothes through the branding logo, despite of that they own some common features in terms of color, style and material. Moreover, it is what differentiates a production from its competitors. Brands have two qualities, which are tangible and intangible attributes. The tangible qualities are those can be seen, felt, tasted and smelt, such as product’s design, how much it costs and what it is made of. The intangible attributes, usually involve consumer’s consciousness, which like brand image, perceptions of users of the brand and image of store where sold (Belch et al., 2009).
Why are brands important?
For many products and companies, branding is an essential part of marketing and it can be extended to consumer perspective and organizational perspective. Brands bring out value both for organizations and consumers. As for consumer’s aspect, Kotler, Brown, Burton, Deans and Armstrong (2010) interpreted that, powerful brands can control forceful loyalty, and lead to customers refuse substitute and demand the product for a long time, even the substitutes have lower prices. However, on the other hand, a powerful brand will create the high brand equity, which can provide many competitive advantages to a company. A brand with high brand equity represents a very valuable asset. For example, the brand value of Coca-Cola is estimated to be almost US$67 billion, and IBM and Microsoft US$59 billion each (Kennedy, 2012). So, brands could contribute a highly identification of the product for consumers and bring more profits for the company. In addition, as a fixed asset of the company, the real value of a brand also plays the positive role in capturing consumers’ preference and building the brand loyalty (Passikoff, 2005). Therefore, brands are important for both a consumer and a company. To summarize this section, a successful brand achieves persistent competitive benefit, also delivers ranking profitability and marketing performance constantly (McDonald, Chernatony, & Wallace, 2011). Likewise, brands will lose value if they are not developed and managed in a right way.
3.0 Cupid Chocolate
The product is going to be a physical product with tangible qualities, which is a chocolate product. It will be described according to the three levels of product. 1. Core Product
The core product just provides consumers what they actually buy, stands for the basic purpose why consumers have intend to purchase initially (Kotler, Brown, Burton, Deans & Armstrong, 2006). For the Dove chocolate, the core benefit, what buyers obtain when they are buying, is the satisfaction of needs and wants from both physical and psychological....
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