Brand management
Brand management encompasses the strategies, activities, and techniques used to build, maintain, and enhance the perceived value of a brand over time. Neil McElroy conceptualized the modern discipline in 1931 while working at Procter & Gamble on the Camay soap campaign[1]. His famous three-page memo proposed dedicating specialized teams to individual brands rather than spreading attention across product lines.
The practice focuses on creating emotional connections with consumers, differentiating products from competitors, and building long-term loyalty. Brand managers coordinate marketing, advertising, product development, and customer experience to maintain consistent brand positioning.
Historical Development
Brand management evolved from the industrial revolution's mass production capabilities. As products became interchangeable, manufacturers needed differentiation. Early trademarks like Bass Ale's red triangle (registered 1876) and Coca-Cola's distinctive script established visual brand identity.
The P&G System McElroy, a Harvard graduate who joined Procter & Gamble in 1925, grew frustrated watching Camay and Ivory soap compete against each other internally. His 1931 memo outlined a revolutionary approach: assign one person complete responsibility for each brand. This manager would lead a dedicated team handling all promotional aspects[2].
The system caught on quickly. By the 1950s, most consumer goods companies adopted variations. P&G refined the approach continuously. McElroy became company president in 1948 and later served as Secretary of Defense under President Eisenhower.
Evolution to Category Management The 1980s brought category management as brand portfolios expanded. Companies realized that coordinating multiple brands within a category (like laundry detergents) prevented cannibalization. Retailers partnered with manufacturers to optimize shelf space and promotional calendars.
Brand Management Functions
Modern brand managers oversee numerous responsibilities:
Brand Positioning Defining what the brand stands for in consumers' minds. This involves identifying target segments, competitive advantages, and emotional benefits. Volvo positioned on safety. BMW claimed driving performance.
Brand Architecture Organizing relationships between corporate and product brands. P&G operates a "house of brands" where Tide, Pampers, and Gillette maintain independent identities. Apple uses a "branded house" where all products carry the Apple name[3].
Brand Equity Monitoring Tracking brand health through awareness surveys, sentiment analysis, and financial valuation. Young & Rubicam developed the Brand Asset Valuator. Interbrand publishes annual brand value rankings.
Brand Extension Decisions Determining whether to stretch brands into new categories. Virgin extended from music to airlines to mobile phones. Some extensions dilute brand meaning while others leverage existing equity.
Brand Equity
David Aaker at UC Berkeley formalized brand equity theory in his 1991 book "Managing Brand Equity." He identified five components:
- Brand awareness - Recognition and recall
- Brand loyalty - Repeat purchase behavior
- Perceived quality - Consumer judgments of overall excellence
- Brand associations - Memories linked to the brand
- Proprietary assets - Trademarks, patents, channel relationships
Kevin Lane Keller expanded this framework at Dartmouth, emphasizing customer-based brand equity in his influential 1993 paper[4]. His model focuses on brand knowledge structures in consumer memory.
Brand Management Strategies
Different approaches suit different competitive situations:
Brand Revitalization Refreshing tired brands. Old Spice transformed from a fading aftershave to a youth-oriented body wash through humor-driven advertising starting in 2010. Burberry shed its association with hooliganism under CEO Angela Ahrendts.
Brand Repositioning Changing target markets or competitive frames. Marlboro began as a women's cigarette before repositioning around masculine imagery in the 1950s.
Co-Branding Partnering brands for mutual benefit. Nike and Apple collaborated on Nike+iPod. Intel's "Intel Inside" program co-branded with computer manufacturers.
Brand Portfolio Management Rationalizing collections of brands. Unilever eliminated over 1,000 brands between 1999 and 2020, focusing resources on stronger properties like Dove and Ben & Jerry's[5].
Digital Brand Management
Social media transformed brand management beginning around 2008. Brands now engage in real-time conversations. User-generated content shapes perceptions beyond company control.
Key digital considerations include:
- Monitoring brand mentions across platforms
- Responding to customer complaints publicly
- Managing brand ambassadors and influencers
- Maintaining consistency across touchpoints
- Protecting brands from misinformation
Wendy's Twitter account demonstrated how brands could develop distinctive online personalities. The fast-food chain's witty, sometimes combative tone generated substantial engagement.
Infobox4 See also
References
- Aaker, D.A. (1991). Managing Brand Equity: Capitalizing on the Value of a Brand Name. Free Press
- Keller, K.L. (2012). Strategic Brand Management: Building, Measuring, and Managing Brand Equity. Pearson
- Kapferer, J.N. (2012). The New Strategic Brand Management. Kogan Page
- Joachimsthaler, E., & Aaker, D.A. (1997). Building Brands Without Mass Media. Harvard Business Review
Footnotes
[1] McElroy's memo is preserved in P&G archives and has been widely reproduced in marketing textbooks.
[2] The memo specified roles including brand manager, brand assistant, and specialists for tracking competitive activity.
[3] Brand architecture terminology was standardized by consultancies like Interbrand and Landor in the 1990s.
[4] Keller, K.L. (1993). Conceptualizing, Measuring, and Managing Customer-Based Brand Equity. Journal of Marketing, 57(1), 1-22.
[5] Unilever's "Path to Growth" strategy announced in 2000 initiated this brand reduction program.