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Building Strong Brands by David A. Aaker: A Book Review

In today's competitive and dynamic market, brands are more than just names or logos. They are strategic assets that can create value and differentiation for a company. But how can managers build and manage strong brands that can survive and prosper in the long run? This is the question that David A. Aaker, a leading authority on branding, addresses in his influential book, Building Strong Brands.

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Introduction

What is the book about?

Building Strong Brands is a comprehensive and practical guide for managers who want to create and sustain strong brands in their industries. The book covers the concepts, tools, and techniques of brand strategy, identity, system, and equity, as well as the challenges and opportunities of brand-building in different contexts and markets. The book also provides numerous examples and case studies from various sectors and companies, such as Saturn, General Electric, Kodak, Healthy Choice, McDonald's, and others.

Who is the author?

David A. Aaker is a professor emeritus of marketing strategy at the Haas School of Business, University of California, Berkeley. He is also the vice chairman of Prophet, a global marketing consultancy firm. He has published over 100 articles and 18 books on branding, marketing, and strategy, including Managing Brand Equity, Building Strong Brands, Brand Leadership, Brand Portfolio Strategy, Strategic Market Management, and Aaker on Branding. He is widely recognized as one of the world's leading experts on branding.

Why is the book relevant?

The book is relevant for several reasons. First, it offers a comprehensive framework for understanding and managing brands as strategic assets that can create value for customers, shareholders, employees, and partners. Second, it provides practical tools and techniques for developing and implementing brand strategies that can achieve clarity, consistency, synergy, and leverage across products, markets, roles, and contexts. Third, it illustrates how strong brands have been created and managed by successful companies in different industries and situations. Fourth, it addresses some of the common pitfalls and challenges that brand managers face in building strong brands.

Main points of the book

The brand identity system

Brand identity vs. brand position

Aaker defines brand identity as "a unique set of brand associations that the brand strategist aspires to create or maintain". Brand identity represents what the brand stands for and what it means to customers. It is the source of the brand's value proposition and differentiation.

Brand position, on the other hand, is "that part of the brand identity that is to be actively communicated to a target audience". Brand position represents how the brand wants to be perceived by customers relative to competitors. It is the basis of the brand's communication strategy and execution.

Aaker argues that brand managers should focus on both brand identity and brand position, and not confuse or conflate them. He suggests that brand managers should use a brand identity system to define and communicate the brand's identity and position, as well as to evaluate and monitor the brand's performance.

Brand identity perspectives

Aaker proposes that brand managers should consider four perspectives when developing a brand identity: the brand-as-product, the brand-as-organization, the brand-as-person, and the brand-as-symbol. Each perspective provides a different lens to view and understand the brand, and each perspective can contribute to the brand's value proposition and differentiation.

The brand-as-product perspective focuses on the attributes, benefits, quality, and value of the product or service that the brand offers. This perspective can help the brand to establish functional and rational advantages over competitors, as well as to appeal to customers' needs and wants.

The brand-as-organization perspective focuses on the attributes, values, culture, and reputation of the organization behind the brand. This perspective can help the brand to establish credibility, trust, and loyalty among customers, as well as to align with customers' beliefs and values.

The brand-as-person perspective focuses on the personality, traits, attitudes, and emotions of the brand. This perspective can help the brand to establish emotional and self-expressive benefits for customers, as well as to connect with customers' feelings and aspirations.

The brand-as-symbol perspective focuses on the visual, verbal, and sensory elements of the brand, such as the name, logo, slogan, color, sound, and shape. This perspective can help the brand to establish recognition, awareness, and recall among customers, as well as to communicate the brand's essence and meaning.

Brand identity elements

Aaker suggests that brand managers should use a set of 12 elements to describe and express the brand's identity from each of the four perspectives. These elements are:

• Product attributes: The features, functions, quality, and performance of the product or service.

• Product benefits: The functional or emotional benefits that the product or service provides to customers.

• Customer relationships: The nature and quality of the interactions between the brand and its customers.

• User imagery: The characteristics, lifestyles, values, and preferences of the typical or ideal users of the product or service.

• Usage imagery: The situations, occasions, locations, and contexts in which the product or service is used or consumed.

• Personality: The human-like traits, attitudes, emotions, and behaviors that describe the brand.

• Organizational attributes: The features, functions, quality, and performance of the organization behind the product or service.

• Organizational values: The core beliefs, principles, ethics, and standards that guide the organization's actions and decisions.

• Organizational culture: The shared norms, values, attitudes, beliefs, and behaviors that define the organization's identity and character.

• Organizational associations: The people, places, events, causes, or entities that are associated with or endorsed by the organization.

• Symbols: The visual or verbal elements that represent or identify the product or service.

• Self-expressive benefits: The benefits that allow customers to express their own identities or personalities through using or consuming the product or service.

Aaker recommends that brand managers should use these elements to create a brand identity prism that captures the essence of the brand from each perspective. He also advises that brand managers should prioritize and emphasize some elements over others depending on their relevance and importance for the brand's value proposition and differentiation.

The brand system

Brand hierarchy and relationships

Aaker acknowledges that most brands are not isolated entities but part of a larger system consisting of many intertwined and overlapping brands and subbrands. He proposes that brand managers should use a brand hierarchy to organize and structure their brands according to their levels of specificity and generality. He identifies five levels of brands in a typical hierarchy:

• Corporate or company brand: The highest level of branding that represents the overall organization behind all products or services. For example: General Electric (GE).

• Family or umbrella brand: A level of branding that represents a group of products or services that share some common characteristics or benefits. For example: GE Appliances.

• Endorsed or subfamily brand: A level of branding that represents a subcategory of products or services within a family or umbrella brand. For example: GE Profile (a line of premium appliances).

Brand extensions: A level of branding that represents a new product or service that leverages an existing brand name to enter a new category or market. For example: GE Capital (a financial services division).

Aaker argues that brand managers should use a brand hierarchy to clarify and communicate the relationships among their brands and subbrands, as well as to leverage their brand assets and equity across different levels. He suggests that brand managers should consider four types of brand relationships:

• Branded house: A strategy that uses a single corporate or family brand to cover all products or services. For example: Virgin (a conglomerate that operates in various sectors under the same brand name).

• House of brands: A strategy that uses multiple individual or product brands to cover different products or services. For example: Procter & Gamble (a company that owns many distinct brands such as Tide, Crest, Gillette, etc.).

• Endorsed brands: A strategy that uses a combination of individual or product brands and corporate or family brands to cover different products or services. For example: Marriott (a hotel chain that operates under different subbrands such as Courtyard, Residence Inn, Ritz-Carlton, etc., but also uses the Marriott name as an endorsement).

• Subbrands: A strategy that uses a combination of individual or product brands and subfamily or endorsed brands to cover different products or services. For example: Apple (a company that uses the Apple name as a subfamily brand for its products such as iPhone, iPad, MacBook, etc.).

Aaker advises that brand managers should choose the appropriate type of brand relationship depending on their objectives, resources, and market conditions. He also warns that brand managers should avoid creating confusion, dilution, or cannibalization among their brands and subbrands.

Brand portfolio and extensions

Aaker recognizes that most companies have more than one brand in their portfolio, and that they often use brand extensions to create new products or services under existing brands. He proposes that brand managers should use a brand portfolio to manage and optimize their brands and subbrands across different categories and markets. He identifies four dimensions of a brand portfolio:

• Role: The function or purpose of each brand or subbrand in the portfolio. For example: driver (a brand that drives customer preference and loyalty), flanker (a brand that protects the driver from competitors), cash cow (a brand that generates profits without much investment), low-end entry (a brand that attracts price-sensitive customers), high-end prestige (a brand that enhances the image and reputation of the portfolio).

• Scope: The range or breadth of each brand or subbrand in the portfolio. For example: category scope (the number of categories that a brand covers), market scope (the number of markets that a brand serves), customer scope (the number of customer segments that a brand targets), role scope (the number of roles that a brand plays).

• Overlap: The degree or extent of similarity or difference among the brands or subbrands in the portfolio. For example: attribute overlap (the degree to which the brands share product features or benefits), customer overlap (the degree to which the brands target the same customer segments), competitor overlap (the degree to which the brands face the same competitors).

• Breadth: The overall size or diversity of the portfolio. For example: number of brands, number of subbrands, number of categories, number of markets.

Aaker suggests that brand managers should use a brand portfolio to achieve clarity, synergy, balance, and leverage among their brands and subbrands. He recommends that brand managers should consider four criteria when evaluating and optimizing their portfolio:

• Relevance: The degree to which each brand or subbrand meets the needs and wants of customers in its category and market.

• Differentiation: The degree to which each brand or subbrand stands out from competitors in its category and market.

• Energy: The degree to which each brand or subbrand has vitality, dynamism, innovation, and growth potential in its category and market.

• Support: The degree to which each brand or subbrand receives adequate resources, investment, and attention from the organization.

Aaker also discusses the benefits and risks of using brand extensions to create new products or services under existing brands. He argues that brand extensions can help to enhance the equity and awareness of the parent brand, as well as to exploit the opportunities and synergies in new categories and markets. However, he also cautions that brand extensions can also harm the equity and image of the parent brand, as well as to create confusion and cannibalization among the existing brands and subbrands.

Brand equity and measurement

Aaker defines brand equity as "a set of assets (and liabilities) linked to a brand's name and symbol that adds to (or subtracts from) the value provided by a product or service to a firm and/or to that firm's customers". Brand equity represents the value and power of a brand as a strategic asset that can create competitive advantage and long-term profitability for a company.

Aaker proposes that brand equity can be measured and tracked by using a set of 10 indicators, which he calls the brand equity ten. These indicators are:

• Loyalty: The degree to which customers are committed to repurchase or recommend the brand.

• Awareness: The degree to which customers recognize or recall the brand.

• Perceived quality: The degree to which customers perceive the brand as superior or reliable.

• Associations: The degree to which customers associate the brand with favorable or distinctive attributes, benefits, or images.

• Proprietary assets: The degree to which the brand owns or controls valuable or unique resources, such as patents, trademarks, channels, or customer data.

• Market share: The degree to which the brand dominates its category or market in terms of sales volume or value.

• Market price: The degree to which the brand commands a premium price or margin over competitors.

• Distribution coverage: The degree to which the brand is available or accessible to customers in its category or market.

• Market penetration: The degree to which the brand reaches or attracts new or potential customers in its category or market.

• Brand personality: The degree to which the brand has a distinctive or appealing character or style that resonates with customers.

Aaker advises that brand managers should use these indicators to monitor and evaluate the performance and health of their brands and subbrands over time and across products and markets. He also suggests that brand managers should use these indicators to identify and prioritize the opportunities and challenges for their brands and subbrands, as well as to develop and implement appropriate actions and strategies to enhance their brand equity.

The brand-building process

Brand strategy and vision

Aaker asserts that brand-building is not a one-time event but a continuous process that requires a clear vision and a coherent strategy. He defines brand vision as "a specification of the core identity of the brand that indicates where the brand should go in the future". Brand vision represents the aspiration and direction of the brand, as well as its essence and meaning.

Aaker defines brand strategy as "a plan for how the core identity will be realized over time". Brand strategy represents the actions and decisions that will guide the development and management of the brand, as well as its positioning and communication.

Aaker recommends that brand managers should use a four-step process to create and implement their brand vision and strategy:

• Step 1: Define the core identity of the brand. This involves identifying and articulating the key elements of the brand's identity from each perspective, such as its attributes, benefits, values, personality, symbols, etc. This also involves prioritizing and emphasizing some elements over others depending on their relevance and importance for the brand's value proposition and differentiation.

brand by considering different contexts and roles, such as different categories, markets, segments, occasions, etc. This also involves creating and managing subbrands and extensions that can enrich and expand the brand's identity and equity.

• Step 3: Define the brand position of the brand. This involves specifying and communicating the part of the brand's identity that is to be actively communicated to a target audience. This also involves choosing and applying the appropriate brand relationship type, such as branded house, house of brands, endorsed brands, or subbrands.

• Step 4: Define the brand execution of the brand. This involves designing and delivering the brand's identity and position through various touchpoints and channels, such as products, services, packaging, advertising, promotion, distribution, etc. This also involves ensuring that the brand's execution is consistent, coherent, and compelling across different touchpoints and channels.

Aaker emphasizes that brand vision and strategy should be aligned with the organization's vision and strategy, as well as with the customers' needs and wants. He also stresses that brand vision and strategy should be flexible and adaptable to changing market conditions and customer preferences.

Brand communication and execution

Aaker maintains that brand-building is not only about defining and communicating the brand's identity and position, but also about executing and delivering the brand's promise and value to customers. He argues that brand communication and execution are critical for creating and sustaining strong brands that can win customers' hearts and minds.

Aaker proposes that brand managers should use a four-step process to create and implement their brand communication and execution:

• Step 1: Define the communication objectives of the brand. This involves identifying and articulating the desired outcomes or effects of the brand's communication on customers' awareness, knowledge, attitudes, preferences, behavior, loyalty, etc. This also involves prioritizing and emphasizing some objectives over others depending on their relevance and importance for the brand's value proposition and differentiation.

• Step 2: Define the communication strategy of the brand. This involves selecting and applying the appropriate communication tools and techniques to achieve the communication objectives of the brand. This also involves choosing and applying the appropriate communication mix, such as advertising, public relations, sales promotion, direct marketing, personal selling, etc.

• Step 3: Define the communication message of the brand. This involves designing and crafting the content and form of the brand's communication that can convey the brand's identity and position to customers. This also involves choosing and applying the appropriate communication style, tone, language, format, etc.

Step 4: Define the communication evaluation of the brand. This involves measuring and assessing the effectiveness and efficiency of the brand's communication in terms of its impact on customers' awareness, knowledge, attitudes, preferences, behavior, loyalty, etc. This also involves using feedback and learning to improve and optimize t