23 Jun 2023
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When undertaking a business restructuring, it is vital to place considerable focus on a key factor during the strategy development process. This factor involves effectively establishing and enhancing the brand value. In this case study article, we will explore how the execution of a brand value enhancement strategy can play a vital role in leveraging and contributing to the success of business restructuring efforts.
What is a brand value enhancement? and why does it need to be executed by the majority of businesses?
Brand value enhancement is a comprehensive approach that involves various strategic efforts and activities aimed at boosting the overall value, perception, and competitiveness of a brand in the market. It encompasses a range of initiatives that work together to strengthen the brand's position and influence in the minds of consumers, ultimately leading to improved customer preference, loyalty, and financial performance.
The execution of brand value enhancement is crucial because of its manifold benefits and the dynamic nature of the business environment. In a highly competitive market, it is imperative for brands to establish a unique identity and distinguish themselves from competitors. By augmenting brand value, organizations can differentiate their offerings and attract customers who perceive them as exclusive and valuable. Additionally, brand value enhancement cultivates customer preference and loyalty, as customers are more inclined to choose brands that they perceive as providing superior value. Consequently, this can result in increased revenue and sustainable growth. Furthermore, implementing brand value enhancement strategies engenders trust among investors and stakeholders and facilitates market expansion. Embracing brand value enhancement is thus indispensable for businesses aiming for long-term success and adaptability in an ever-changing marketplace.
In this case study, a range of approaches are employed to enhance brand value, including the utilization of TAM SAM SOM strategy, making adjustments to the product portfolio, undertaking brand mergers, creating new brands, and implementing the price maker scenario strategy. The objective of these approaches is to establish a minimum viable ecosystem and subsequently maximize the achievable ecosystem in terms of brand value and market dominance.
TAM, SAM, SOM
The initial focus of our discussion revolves around TAM SAM SOM, which serves as a means to establish the target market as the first step in creating brand value for our client in the cigarette industry.
The implementation of TAM SAM SOM strategy serves the purpose of elevating brand value through the effective targeting and acquisition of specific market segments. TAM, which represents the comprehensive potential market size for a particular product or service, is assessed to gauge the overall market scope. SAM, the serviceable available market, delimits the portion of the TAM that the company can viably reach and serve, taking into consideration its available resources and capabilities. Lastly, SOM, the serviceable obtainable market, designates the specific market share that the company aims to capture within the SAM. By strategically employing the TAM SAM SOM approach, organizations can precisely tailor their branding, marketing, and product positioning strategies to cater to the unique needs and preferences of their target audience. This targeted approach not only enhances brand differentiation but also cultivates heightened customer satisfaction, ultimately leading to an augmented brand value within the identified market segments. Such strategic efforts lay the groundwork for sustainable growth and long-term success in the market.
Minimum Viable Ecosystem
Once the target market has been established, the subsequent step entails the creation of a minimum viable ecosystem for our cigarette company client. This ecosystem is determined based on the outcomes and insights gained from the target market establishment process. A minimum viable ecosystem consists of fundamental elements and components needed to establish a functional and sustainable environment for a business or brand. The Minimum Viable Ecosystem (MVE) or minimum viable ecosystem is the smallest combination of activities and partnerships necessary to showcase value creation and attract new collaborators. Furthermore, regarding brand value enhancement, a minimum viable ecosystem consists of key elements like product offerings, distribution channels, customer support systems, partnerships, and marketing strategies. These components synergistically form an effective system that enables value creation delivery to customers and facilitates the accomplishment of business goals.
Product Portfolio Adjustment
Following the creation of value in the minimum viable ecosystem (MVE), the next step involves adjusting the product portfolio within brands from our cigarette company client. Product Portfolio Adjustment encompasses a comprehensive evaluation of the brand portfolio to assess its performance and effectiveness in the market. The primary objective is to identify brands that are thriving and making significant contributions to the overall success of the company, as well as those that may be underperforming or facing challenges.
The process of product portfolio adjustment begins with a meticulous analysis of each brand in the portfolio, considering factors such as market share, sales growth, profitability, customer perception, and competitive positioning. Brands that exhibit strong performance and align with the company's strategic goals are regarded as efficient and may receive prioritized attention, further investment, and support.
By employing product portfolio adjustment, companies can optimize their brand portfolio by allocating resources effectively. This strategic evaluation allows for the identification of brands that are driving market impact, streamlining operations, and enhancing competitiveness. Additionally, it enables companies to adapt to evolving market dynamics and consumer preferences by ensuring the continued relevance and alignment of the brand portfolio.
Brand Creation, Merger, and Adjustment as Ecosystem Creation Stage 2
The next step in enhancing the brand value for our cigarette company client involves the creation, merger, and adjustment of brands.
Brand Merger is a strategic marketing endeavor that involves the consolidation of multiple brands within a portfolio into a single cohesive brand entity. This strategic approach is employed when merging several brands offers a more favorable projection and potential than maintaining numerous brands with limited brand awareness. Brand Creation, on the other hand, focuses on the development of new brands to address untapped market gaps that existing brands have failed to penetrate. It is a strategic marketing effort aimed at identifying unexplored opportunities and crafting brand elements that deeply resonate with the target audience.
Similarly, Brand Adjustment involves a meticulous evaluation of competitors' product portfolios and the strategic refinement of a company's brand elements to match or counteract competitive strategies. This encompasses price matching, where a company aligns its product pricing with that of its competitors, and product matching, which entails aligning the brand image with the established image of key competitors. Brand adjustment represents a proactive strategy within the ecosystem creation stage, enabling companies to minimize market risks by adapting their brand positioning based on competitors' strategies.
Overall, brand creation, brand merger, and brand adjustment are strategic initiatives within the realm of brand value enhancement. Brand merger optimizes brand portfolios by consolidating multiple brands into a single, stronger entity. Brand creation fills market gaps and expands a company's market presence by introducing new brands. Brand adjustment empowers companies to respond effectively to competitive dynamics and refine brand elements to align with or counteract competitors' strategies. By embracing these approaches, companies can elevate their brand value, strengthen their market position, and effectively cater to the evolving needs of their customers in today's ever-changing business landscape.
Brand Value Establishment
The final and primary objective is to implement the establishment of brand value. This is accomplished by attaining a price maker scenario, which refers to a situation where a company possesses the ability to introduce new trends and establish the market's standard pricing. To achieve this condition, the company must establish a robust marketing infrastructure and successfully create an ecosystem within the market that caters to the needs of customers.
In conclusion, the concept of brand value enhancement plays a pivotal role in leveraging the business restructuring project for our cigarette company client. By implementing strategies such as TAM SAM SOM, creating a minimum viable ecosystem, adjusting the product portfolio, and engaging in brand creation, merger, and adjustment, the client can effectively enhance their brand value and achieve market dominance. These approaches enable the client to differentiate themselves from competitors, cater to the unique needs of target audiences, and establish a strong market position. Ultimately, the establishment of brand value, along with the attainment of a price maker scenario, positions the client for long-term success, adaptability, and growth in the dynamic business landscape. Embracing brand value enhancement is essential for businesses aspiring to thrive in competitive markets and build enduring relationships with customers and stakeholders.
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