Understanding Different Types of Brand Contract Requirement

A contract implies constraints. The Brand concepts assume first of all that the various function in the organization all converge: R& D, Production, methods, logistics, marketing, and finance. The same is true of service brands: as the R&D and production aspects are obviously irrelevant in this case, the responsibility for ensuring the brand’s continuity and cohesion pass to the management and staff, who play an essential role in clientele relationships.

The brand concept requires internal as well as external marketing. Unlike quality seals, brand’s set their own ever-increasing standards. Therefore, they products, even the most basic ones, especially if they represent most of their sales and hence act as the major vehicle of brand image: in so doing, they will be keep pace with technological change. They must also communicate and make themselves known to the outside world in order to become the prototype of a segment, a value or a benefit. This is a lonely task for brands, yet they must do it to get the air of uniqueness and that of exclusivity they need. The brand will have to support its internal and external cost all on its own. These are generated by the brand requirements, which are to”

 

· Closely monitor the need and expectations of potential buyers. This is the purpose of market research: both to optimize existing products and to discover needs and expectations which have yet to be fulfilled;

· React to technical and technological progress as soon as it can to create a comperitive edge both in terms of cost and performance;

· Providing both product(or service) volume and quality at the same time, since those are the only means of ensuring repeat purchases;

· Control supply quantity and quality;

· Deliver products or service to intermediaries(distributors), both consistently over time and in accordance with their requirements in terms of delivery, packaging and over all conditions;

· Give meaning to the brand and communicate its meaning to the target market, thereby using the brand a signal and reference for the product’s(or service’s) identity and exclusivity. That is what advertising budgets are for.

Strong brands thus bring about both internal mobilization and external federalization. They create their company’s panache and impetus. That is why some companies switch their own name for that of one of their star brand: BSN thus become Danone, CGE become Alcatel-Alsthom. In this respect, the impact of strong brands extends far beyond most corporate strategies. These only last while they are in the making, after witch they either vanish or wind up as pompous phrases (‘a passion for excellence’ ) posted in hallway. In any case, a brand is the organization external façade, and as such, it remains both demanding and determined to constantly out do itself, to aim ever height.

Becoming aware that the brand is a contract also means taking up many other responsibilities which are all too often ignored. In the fashion market, even if creators wish to change after a while, they can not entirely forget about their brand contract, which helped them to get know initially, then recognized and eventually praised. This can indeed cause serious problem for international brand management, as different countries tend to perceive brands in different ways. Thus in Europe, polo by Ralph Lauren brand has changed its image significantly by launching the previous style of its products.

 

In theory, both the brand’s slogan and signature are meant to embody the brand contract . A good slogan is therefore often rejected by managing directors because it means too much commitment for the company and may back fire if the products / services do not match the expectations the brand has created so far.

 

Brand And Other Signs Of Quality

In many sectors brands coexist with quality signs. The food industry, for instance, is filled, besides brands, with quality seals, certificates of norm compliance and controlled origin and guarantees. The Proliferation of these other signs results from a double objective: to promote and to protect.

 

Certifications of Origin (real Scotch whisky) are intended to protect a branch of agriculture and products whose quality is deeply rooted in a specific location and know – how. The controlled origin guarantee capitalizes on a subjective and cultural conception of quality, coupled with a touch of mystery and of the area’s unique character. It segments the market by refusing the certification or origin to any goods that have not been produced with in a certain area nor raised in the traditional way.

Thus in France, since 2 July 1990 law was voted, Roquefort has become a name tied to a controlled origin. Even If Danish or American cheese – Makers were to produce a ‘Roquefort ‘ cheese elsewhere that buyers were unable to tell apart from the Roquefort cheese made in the Roquefort village itself in then traditional way, their products can no longer lay claim to the name ‘Roquefort’ . Greek feta cheese did not achieve this: in fact, most so called Greek Feta cheese is made in Holland or France.

 

Quality seals are promotional tools. They convey different concepts of quality, which is both more industrial and scientific. In this respect, a given type of cheese, for example, involves objective know – how, using a certain kind of milk mixed with selected bacteria, etc. Quality seals create a vertical segmentation, consisting of different levels of objectives quality. The issue here is not so much to present typical characteristics as to satisfy a stringent set of objective criteria, The legal guarantee of typically brought by a ‘certified origin’ seal means more than a simple designation of origin, a mere label indicating where a product comes from, in that latter implies no natural or social specify – although it may mislead the buyer in to thinking that there is one. Moreover, several modern cheeses – makers deliberately mix up what is genuine and what is not, investing to build their own rustic, parochial imagery.

 

Although it is not legal under EU Regulations, they reinstated designations of origin referring to a country. This did not prove fully reassuring since it was soon heard that French cattle could have eaten not only local grass but also contaminated organic extracts imported from the UK :

· Certification of origin add typically but cannot guarantee a 100% safe meat:

· Seals of quality did not exist and had to be created but it would take year to promote them : how ever , useless full control of the entire cattle raising process is guaranteed , the output it self cannot be guaranteed,

On an operational level, let us once again underline the fact that brands do not boil down to a mere act of advertising. They contain recommendations regarding the long term specificities of the products bearing their name, such as attractive prices, efficient distribution and merchandising, as well as identify building through advertising. It is easier for a small company to earn a quality seal for one its products through strict efforts on quality, than it is to under take the grueling task of creating a brand, which requires so many financial human, technical and commercial resources. Even with out an identify , the small company’s product can thus step out of the ordinary , thanks in part to the legal indicators of quality.

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