Brand leader
| Brand leader |
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| See also |
Brand leader Is defined primarily as a product that is well recognized and well sold in a particular market segment. In definitions It can be also called as a market leader. Brand leader is a product with the higher number of total sales. A company can be also called as a brand leader - that has the largest market share, sells the largest quantity of a specific product in a particular industry or has the highest profitability margin. This can include also an organisation or a group name with the highest percentage of total sales revenue of a specific market.
Market leader is a dominant in influencing the customer confidence and loyalty and also by pricing and well distribution. The most important thing in being a brand leader is not to have the biggest sales but to be a relevant product for customers (Definition of Market Leader 2019).
Examples of brand leaders
Brand leaders can be found in many kinds of industry. Good examples are (BusinessNews Publishing 2013):
a) In digital space:
- Microsoft company that was first in the market in launching operating system (Windows) and web browser (Internet Explorer)
- Apple - market leader in portable media devices in which music can be kept on a drive (iPod)
- Dell
- Amazon.com
b) In clothing industry:
- Adidas - the firm propose a new focus in participating in sport, they show that sport can be for everybody, not just for the chosen few
- Nike - the flagship stores of this company are NikeTown and Air Jordans
- Swatch - the company was established in 1983 and since then they have been selling watches around the world with a great success
c) Other:
- Starbucks
- Coca-Cola
- McDonald's
- FedEx
How to build a leadership brand?
To build brand leader it is necessary to have leaders inside a firm, who will lead company to a success. Creating a successful brand can be divided into 6 main stages (Hesselbein F., Goldsmith M. 2013):
- Creating a need for leadership brand in a company
- Articulating a declaration of being a leader which consist a clear statement
- Assessing leaders contrary to standard of a leader brand
- Investing in leaders by training, on-the and off-the job
- Measuring the quality of leadership investment strategy
- Publishing the brand in the best way to encourage customers
Branding is not just about advertising or marketing. Today it also includes customer service, forms of packaging and what is the most important - innovativeness. Customer service requires enormous investment and well-prepared organizational structure (Top 25 Brand Leaders 2004). Because of many different factors which accompanies the whole processs, building a brand leadership can take even a few decades.
Advantages of Brand leader
Being a brand leader has many advantages. Here are some of the most common:
- Increased brand awareness: Having a higher market share means that more people are familiar with the brand and its products. This can lead to an increase in sales and revenue.
- Increased customer loyalty: Customers are more likely to stay loyal to a brand that they know and trust. Brand leaders have an advantage in this regard as customers are more likely to return and make repeat purchases.
- Increased visibility: Brand leaders are often featured more prominently in advertising and marketing campaigns, which can help to further increase their visibility and reach.
- Higher profitability: As the brand leader, the company is able to charge a premium for its products due to its reputation and market position. This can lead to higher profits and more resources to reinvest in the business.
- Increased competitive advantage: By having the highest market share, the brand leader can leverage its position to gain a competitive advantage over its rivals. This can include discounts and exclusive offers that are unavailable to other competitors.
Limitations of Brand leader
A brand leader has several limitations, including:
- Brand loyalty: Brand leaders have to constantly remain competitive in order to maintain their loyal customer base. If they fail to keep up with market trends, they risk losing their customers to newer and more innovative competitors.
- Price: Brand leaders often have to charge premium prices for their products due to their status. This means that customers may be put off by the high cost and may opt for cheaper alternatives.
- Innovation: Brand leaders may become complacent and lack the incentive to innovate, as they are already successful. As a result, they may fail to keep up with new technologies and trends and risk losing their competitive edge.
- Market saturation: As the brand leader continues to grow, the market eventually becomes saturated and the company may struggle to find new customers.
- Competition: Brand leaders may face increased competition from their competitors and may not be able to differentiate their products or services in order to remain competitive.
- Brand Management: This approach focuses on creating and maintaining a positive brand image for the company and its products by understanding consumer behavior, preferences and needs and responding accordingly.
- Brand Positioning: This approach involves analyzing the current market and creating an effective marketing strategy to ensure the brand is seen as the leader in the market.
- Brand Equity: This approach focuses on creating an emotional connection between the brand and the consumer, as well as building a strong relationship with customers.
- Brand Activation: This approach involves engaging with customers in a variety of ways, such as through promotions and events, to increase brand visibility and loyalty.
In conclusion, brand leader can be achieved through various approaches, such as brand management, positioning, equity and activation. Each of these approaches should be carefully considered and implemented, in order to ensure the brand is seen as the leader in the market.
References
- BusinessNews Publishing (2013), Summary: Brand-Leadership: Review and Analysis, Primento, p. 4-6.
- Chief Executive (2004), Top 25 Brand Leaders
- David T., David N. (2010), The Brand Gym: A Practical Workout to Gain and Retain Brand Leadership, John Wiley & Sons.
- Hesselbein F., Goldsmith M. (2011), The Leader of the Future 2: Visions, Strategies, and Practices for the New Era, John Wiley & Sons.
- Scott B. (2003), A New Brand World: 8 Principles for Achieving Brand Leadership in the 21st Century, Penguin.
- The Economic Times (2019), Definition of Market Leader, Bennett, Coleman & Co.
Author: Agata Drabik
