Brand Orientation – A Strategy for Survival

TLDR

Brand orientation bases company strategy on brands, focusing resources on building and nurturing them to create a sustainable competitive advantage, especially as product divergence decreases, media costs rise, and markets integrate. The paper presents a model of a brand‑oriented company that integrates product, trademark, corporate name, corporate identity, positioning, target group, and brand vision. The model aligns these concepts to synchronize strategy and generate added value by integrating product, trademark, corporate name, corporate identity, positioning, target group, and brand vision. Illustrated by the Pharmacia Nicorette case, the model shows that shifting from product focus to brand orientation can yield long‑term competitive advantages and serve as a survival strategy.

Abstract

Brand orientation means that the formulation of company strategy is based on brands. By focussing the company′s commitment and resources on building, developing and nurturing brands, a platform for a sustainable competitive strategy is achieved. Presents a model of a brand‐oriented company using the concepts of product, trademark, corporate name, corporate identity, positioning, target group and brand vision. It is management′s task and challenge to synchronize these concepts with a view to generating added value and brand loyalty. The case of the Pharmacia Nicorette provides an illustration of the transition from product focus to brand orientation. The importance of brand orientation for industry and commerce is enhanced by three drivers: decreasing product divergence, increasing media costs and continuing market integration. A corporate management capable of exploiting the potential of brands may obtain long term competitive advantages – a strategy for survival in a growing number of companies.