BRANDIN EU Branding Handbook for SMEs | Page 16

SWOT Brand Building is generating awareness, establishing and promoting company using strategies and tactics. In other words brand building is enhancing brand equity using advertising campaigns and promotional strategies. Branding is crucial aspect of company because it is the visual voice of the company. The purpose of brand building is to differentiate and to create a unique image about the company. Before brand building each company has to look at the existing business position and predicting how external factors may affect the business and get a clear picture of its purpose and place. The SWOT analysis can help to analyse the company’s current and forward-looking situation: SWOT Analysis Strenghts · Enhances Product Recognition · Help Product Positioning · Aids in Introduction of New Products · Builds Brand Equity · Strong reputation of the brand Opportunities STRENGTHS: Characteristics of the business or project that give it an advantage over others. WEAKNESSES: Characteristics that place the team at a disadvantage relative to others. OPPORTUNITIES: Elements in the environment that the project could exploit to its advantage. THREATS: Elements in the environment that could cause trouble for the business or project. · Positioning of the product in local and foreign markets · Increase the contribution margin · Control over pricing/ Brand price premium behavior · Control over distribution · Using advanced technology to develop new products · Growing demand from international markets · Using Facebook, Twitter and other social media sites to reach new customers Weaknesses · Complexity · Expensive to Design · Difficult to Maintain · Difficult and Expensive to Change · Not having a clear product differentiation compared with competitor’s offer · Weak distribution · Not enough online presence Threats · Free access to information though Internet/ Mass use of internet · Competitors might introduce better products and services at lower prices · Changes in the economic environment might reduce customer loyalty to established brands · Changes in customer tastes and fashions · Competitors might introduce better products and services at lower prices · Changes in the economic environment might reduce customer loyalty to established brands It’s worth thinking about... A SWOT analysis provides strategic insight on recommendations and opportunities for businesses to map out a strategic plan. As an actionable management tool, the SWOT helps owners hone in on the right course of action to leverage the business’s unique characteristics. By turning threats into strengths, and matching strengths with opportunities, it is possible to maximize the chances of success and increase sales. 14 What can you improve? What obstacles do you face? How can you get customers involved in creating your branding and marketing? How can you use new media and traditional media platforms to build your business and personal brands? What products, procedures, and systems can you develop to scale your business? With whom it is worth building strategic partnership or cross marketing to build your brand and image? 15