Goldsmiths University of London

Institute of Management Studies

IM71033A Marketing Strategy (2022-2023)

Postgraduate Take-home Exam

Student ID: 33727117

Word count: 855
Introduction
A brand can be defined as an established product name, design, symbol or term. Companies use
brands to distinguish their products from competitors and foster a public identity. (Will kenton, n.d.)
Strong brands play a pivotal role in creating value for customers by establishing a unique identity,
evoking strong emotions through clarity and consistency (Jackie Martin, n.d.), and fostering a sense of
community. Therefore, the study of it is a research field of great interest. It is essential to a company's
success in the highly competitive business world of today. So businesses need to go further than usual
in order to make themselves stand ahead of their rivals. (Jones, n.d.)

First this paper focuses on the process of creating a strong brand by utilizing relevant frameworks,
concepts, and examples, then comprehending and highlighting its attributes and the importance. Next,
this paper looks at alternative theoretical perspectives on the sources of competitive advantages.
Finally, this essay critically examines this statement and seeks to provide insight into the multifaceted
nature of strong brands and their potential impact on a firm's competitive position.

I. Branding Strategies

● Competitive brand positioning

Companies can face challenges in brand positioning, such as building brand awareness without a clear
brand position, promoting attributes that consumers don't care about, investing in easily copied points
of difference. The most straightforward method to establish credibility is by highlighting a distinctive,
verifiable attribute of the product. (Keller et al., 2014)

● Value chain development

A value chain is the process of adding value into a series of phases from initial design to customer
delivery. (Carla Tardi, n.d.) As Michael E. Porter mentioned in his book: “Competitive advantage
cannot be understood by looking at a firm as a whole. It stems from the many discrete activities a firm
performs in designing, producing, marketing, delivering, and supporting its product." (Porter, 2008)
Therefore, it is crucial to maximise value at each stage of the business's operation.

Figure 1: Strategic brand development and the value chain (Sammut-Bonnici, 2015)
● Brand equity management
Marketing professionals must maximise a brand's strengths while minimising its liabilities when
developing a brand strategy since brand equity encompasses both positive and negative images of a
brand. (Sammut-Bonnici, 2015)

For example, Coca-Cola is a globally recognized brand that has successfully built and maintained its
brand equity over decades. It has successfully positioned itself as a symbol of happiness, togetherness,
and refreshment, while also weakening the negative concerns about excessive sugar consumption.

II. A Strong brand and its attributes

Within the marketing discipline, few topics are as important as branding. If performed properly,
branding adds to the firm’s competitive advantage. (Vorhies, Douglas W, 1997) Brands play an
important role in the decision-making processes of business customers. (Bendixen et al., 2004) In
addition, customer views of quality, value, and loyalty are influenced in varying degrees by brand
image and company reputation.(Cretu and Brodie, 2007) Customers are more willing to pay higher
prices for the products and are more likely to engage in positive word-of-mouth communications
regarding the business and its brands when brand equity is high. (Ansary and Nik Hashim, 2018)

However, there are still limitations and difficulties associated with relying solely on brand strength for
long-term competitive advantages, therefore businesses should always examine the impact of industry
dynamics and market conditions regarding the effectiveness of brand strength.

III. Alternative sources of Competitive Advantages

Competitive advantage, like competition itself, is an ever-changing aim. The challenge for any
company in whatever industry is to avoid being fixated on a single limiting view of its source of
advantage. (Stalk, 2012) As a result, it is critical to evaluate and identify a company's competitive
advantage model in order to carry out its activities. (Išoraitė, n.d.) (Figure 2)
 Figure 2: Porter's five forces model (Porter, 1990)

● Cost Leadership

Cost leadership involves offering the same quality product as competitors, but at a lower price. This
means that companies must find ways to streamline production methods or use resources more
efficiently than their competitors.

● Differentiation

Businesses conduct research to identify the crucial features that consumers value, enabling them to
establish niche markets or develop products that cater to those preferences. By emphasizing unique
traits that appeal to specific market segments, they distinguish themselves from competitors.

● Defensive Strategies

The strategy is built on the strategy of differentiation and cost leadership, enabling companiese to
keep the competitive advantage it has achieved by, in a way, either retaining customers or just slowing
the speed at which consumers transfer to new competitors. (Roberts, 2005)

● Strategic Alliances
In the highly competitive marketplace of today, few businesses have all the resources they require to
compete successfully, thus businesses apply alliances as a sort of cooperative strategy for gathering
the required resources and establish a competitive advantage. (Masrurul, 2012)

Conclusion
In conclusion, this paper emphasises topics about the establishment of a strong brand and its potential
as a source of competitive advantage. It investigates the statement critically through analysing several
theoretical viewpoints on competitive advantage. The article highlighted the importance of continuous
strategic effort and alignment in maintaining competitive advantage. Overall, in a dynamic financial
environment, strong brands are crucial for developing and preserving competitive advantage, yet
companies still require continual monitoring and strategic flexibility to reach their full potential for
long-term success.
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