| Corporate strategic planning is along term planning | | | | good growth potential for it in the market place. |
| to prepare the organization for remaining | | | | Most models, irrespective of what approach they |
| competitive in the market through an optimization | | | | use come to this conclusion, which is logical; after |
| of its strengths and mitigation of its weaknesses. | | | | all, who would want to waste resources in places |
| In the process the organization finds itself | | | | where we cannot deliver quality product or where |
| reconfiguring, if required to meet the changing | | | | there is no good growth potential? |
| needs of the market. | | | | There is one important question to ask here. That |
| The strategic planning process asks for an | | | | is, can the current market share, which is |
| analysis of organizations strengths and | | | | vulnerable to the loyalties of the consumer, |
| weaknesses and the maximization of its resource | | | | therefore likely to change, be taken as a good |
| utilization by arriving at a best fit between its | | | | measure for future predictions? |
| strengths to opportunities that exist in the market | | | | An alternate approach would be to look at the |
| and minimizing the disabling impact of its | | | | brand values as the measures. Such values are |
| weaknesses by the threats. It therefore has to | | | | future oriented as the future cash flows go into |
| find a method of actually dealing with each of the | | | | their measurement. They are also possibly more |
| weaknesses and how these weaknesses should | | | | robust as they represent the composite of the |
| be protected from exploitation by competition to | | | | tangible and intangible strengths of the |
| their advantage. | | | | organization that owns the brand. These values |
| One of the strengths is the overall position of the | | | | are computed in a very systematic way and |
| organization in the market place in comparison to | | | | represent the opinions of knowledgeable persons |
| the other competitors, especially those that are | | | | compared to market share which might be |
| an immediate threat to the organization. If the | | | | subject to errors coming from different sales |
| organization is very strong relative to its | | | | records. The market share accuracy can also be |
| competitors, then it could be in a comfortable | | | | subject to how it is computed, for example |
| situation provided it stays alert and capitalizes on | | | | capacities, or dispatches or actual sales in the |
| its strengths. In order to gain overall dominance in | | | | market. |
| the market place each of the business units or | | | | When brand value is used as the measure the |
| products of the organization need to be managed | | | | ratio of the brand value of organization and that |
| well enough to be the winners. | | | | of the relevant competitor would be the measure |
| An organization can have lot of strengths, ranging | | | | instead of relative market share. Higher ratios |
| for easy access to technology, very high quality, | | | | would now mean that the organization present |
| loyal and productive employees working for it and | | | | and predicted future strength is also high |
| may be strong distribution system. These | | | | compared to the competitor. Since intangible |
| strengths would be of value to the organization | | | | measures like customer loyalty that denotes the |
| only when they actually can be converted into a | | | | strength of brand's relations with its buyers, are |
| measurable strength in the market, the end point | | | | also incorporated in the best methods, the affect |
| metric of the marketing, which is how much | | | | of changing consumer loyalty can be minimized. |
| market share? Thus market share seems like | | | | One basic requirement would be that a |
| reasonable measure of company's strength in the | | | | comprehensive and identical method should be |
| market place. | | | | used to compute the relative brand values. Any |
| It is also to be acknowledged that if strength | | | | values computed by different methods can not |
| does not lead to a measurable impact in the | | | | be used. A second important observation would |
| market then that strength can become redundant. | | | | be that reliable data on the competitor is obtained |
| It would be like owning a high quality brush that | | | | through the market research. But this is a |
| cannot be used on the surface where the artist | | | | prerequisite in any method and is not unique only |
| needs to paint in order to win the painting | | | | to this approach. |
| competition. This strength would have no | | | | Irrespective of whether the brand values are |
| relevance in the specific situation | | | | incorporated into the strategic models that use |
| The second important aspect that one might like | | | | ratios relative to competition, it is important that |
| to consider is a comparison to the competition. | | | | these values per se should be taken into |
| That is if we wish manufacture a product, we | | | | consideration for strategic planning purposes. |
| need to ask ourselves how far are we better | | | | Audits and tracking of brand are already in use, |
| than all competition with respect to that product | | | | but seems to have remained at brand |
| so that we can actually be superior to competition | | | | management level. They need to be extrapolated |
| and thus manage to get the highest market | | | | into brand values, and their use must be extended |
| share, which in turn will contribute to the | | | | for strategic planning purposes. In this context, it |
| organization's over all dominance in the market. | | | | is meaningful to suggest that brand valuators |
| One of the ways for knowing the difference in | | | | need to declare some norms on an appropriate |
| the strength in its final form is to measure | | | | method for brand value measurement. |
| market share ratios between organization market | | | | Brand values and relative brand values can be |
| share and that of competition. | | | | used effectively in acquisitions as well. Coupled |
| This was the approach taken by the Boston | | | | with the book value and market values, a |
| Consulting Group. In their portfolio analysis, they | | | | comparison of brand values with that of the |
| use relative market share as the measure. High | | | | competitors brand values, can give a future |
| ratio indicates high strength relative to competition | | | | orientation to the evaluation for acquisition |
| and lower ratios indicated lower difference. It is | | | | purposes. Given that powerful brands have high |
| their recommendation that organization's should | | | | extension potential the use of brand value in |
| focus on the business areas where much | | | | evaluating the future potential of a company can |
| stronger than competition provided there is also | | | | be very useful. |