Rus Articles Journal

Whether the brand is necessary to the industrial enterprises?

Before answering this question, I would like to pay attention of the reader that there are two opposite opinions on that and whether the brand is necessary in general to the industrial enterprise? Within a planned economy of the seventieth such question did not face the enterprises at all, because of any additional cost the director did not think. All his thoughts crowded only around a plan target which went down to it from above. The competition in a planned economy when personal acquaintance was decisive, was not especially shown too. But with emergence of the market relations when every day the markets are entered by new players, the matter became more active to excite minds of Russians. The experts answering this question negatively reason the answer with the fact that for such well-known companies as Kirov Plant or the association “Electric power“, there is no sense to offer branding because they are already known, and their production is demanded. Answering this question positively, insist on elaboration of strategy of positioning and advance of a brand and if there is no that, then and on its development. As the specialist in branding, I adhere to the second point of view and not to be unfounded, I will try to explain the position professionally. First of all, let`s remember that and what is a brand and for what it is necessary? Here is how the famous expert of advertizing David Ogilvy formulated concept of a brand:

“The brand is the sum of properties of a product: his name, packing, price, history, reputation and way of advertizing.

The brand is also a combination of impression which it makes on the consumer and result of its experience in use of a brand“. In our case we will understand goods of production appointment, that is the goods intended for sale to legal entities and individual entrepreneurs for the purpose of their use in economic activity as a product. Treat such goods: processing equipment, stroitelno - road equipment, public transport vehicles, toplivno - raw materials, etc. of

And so, as for the first component of a brand, namely, its attributes, all of them are inherent also in the goods of production appointment or the enterprise creating it. Unless the goods do not need a good name? It is necessary and still as it is necessary. And if this name does not go to a section with semantic and phonetic rules of development of the name, then this name and needs to be enclosed in a brand basis. However, at the same time it is worth to remember about its protectability and a possibility of obligatory registration of the trademark. For example, the name of association “Energomash“ is not present any sense to change, but it is necessary to develop for further advance surely the original trademark, and to register it.

As for Piterpromenergomontazh firm, its name should be changed surely because at the escalating competition it will drag firm back.

Perhaps, quality of packing, but the price is not so important for goods of production appointment, history and reputation are simply necessary. As for ways of advertizing, on them I will stop a bit later.

Thus, we were convinced that attributes of a brand are present at the industrial enterprise which is letting out goods of production appointment too.

As for the second component of a brand - a combination of impression which it makes on the consumer the good impression will not be superfluous and for the consumer of goods of production appointment. And in this case the enterprises focusing attention only on price policy as in days of old, are doomed a navymiraniye. Someone will die out quicker, someone else will be able to hold on several years afloat. Therefore, process of creation of a brand at the industrial enterprise is necessary. And the quicker the Russian businessman will understand it, the it will be simpler to become him the leader in the branch. It is necessary to remember that brands of the industrial enterprises: 1. Provide decrease in the risks connected with loss of insignificant quantity of sales channels. And risks arise in that case when the strengthened dealers decide to organize the productions with replacement of the producer from this market. 2. Fix the competitive technological advantage for the long period because without serious positioning and advance will know about the enterprise only units. 3. Cross out the dashing adventurous past with demonstration of the new person; 4. Give help at an entry into the new regional and international markets.

Besides, it is worth to remember, as for the industrial enterprises the capital of a brand:

• creates additional cash flow;

• facilitates involvement of new consumers if the brand is already familiar to them (the guaranteed quality);

• provides popularity of a name of a brand, discloses the felt quality and associations connected with a brand in consciousness of consumers are strengthened by commitment degree to a brand;

• allows to establish a premium - the price, so, to get additional profit;

• provides a possibility of extension of the list of production goods under the same brand that it is much simpler, than creation of new brands;

• reduces uncertainty for distributors and creates to them advantage at further sale of goods, and also facilitates work when carrying out marketing actions;

• creates competitive advantages and is a barrier to competitors.

So unless for the sake of all this you should not be engaged in branding? Costs and still as costs. And now there came the moment of the answer to the question presented in article table of contents: “What brand is necessary to the industrial enterprises“? It is natural that already in the course of creation of a commercial brand, it is necessary to consider some specifics as the technology of branding in the consumer market is guided, first of all, by advertizing due to which the awareness and perception of brand are created. To advance an industrial output due to formation of mass perception of brand it is useless, that is is inexpedient to entice TsA an attractive name. Here it is necessary to concentrate on formation of image of the stable enterprise to which your client can entrust the solution of the problems. In this regard, it is necessary to place the main emphasis on public relations, but not on aggressive advertizing. The Russian industrialist, without feeling the competition within the country, tries and to enter the western markets without special investments. Here supposedly I will cry out only to the client the sonorous name and he as pretty will rush to me to embraces. But not here - that was. The western client is very picky, and he has a great variety of options for the choice, from frankly bad Chinese to super - a puper of German. And, unfortunately, today from potential buyers there is some mistrust to quality of production of the Russian producer, to its reliability as supplier. And this - competent branding in which investments, as a rule, quickly pay off has to dispel that mistrust completely. Besides, with participation in tenders, the Russian producer can face such fact as considerable reduction of prices by foreign competitors. So, on one of tenders the producer of optical Olympus devices reduced the price of the equipment from 10000 to 4500 dollars. It means that the cost of its brands makes if not a half, then rather significant part of the price. Thus, only for image the enterprise gets additional profit. The Russian producer also has to aspire to it. As it was already noted, when developing a commercial brand it is necessary to consider some specifics, including, and connected with process of making decision on purchase. If in the consumer market the buyer makes the decision on purchase, most often, impulsively, relying only on emotional perception of a product, then the decision on acquisition of an industrial output is made, as a rule, not by one person, and the decision it has to be verified and rational. And the verified decision is based on the objective analysis not only characteristics of a product, but also the company - producer. And it is natural. One business to buy packing of a chewing gum and to eat up it irrespective of quality. And if the chewing gum is absolutely opposite, without regret to throw out it. Here then you will not throw out the acquired low-quality equipment. It will be necessary to make additional resources in it or to suffer more essential losses. From this follows that, forming a commercial brand, the company has to try to place emphasis on objective qualities, but not on any emotional components. It is necessary to remember that transformation of objective characteristics of a product and the company in its brand - process rather long as it is required that buyers tried to work with the company, or obtained positive information from those who already tried. And that the brand took place, it is necessary to offer the buyer something unique, distinguishing the company from competitors. In the consumer market this uniqueness is called as UTP, that is, a unique selling proposition. And to reveal this uniqueness, it is necessary to carry out the serious analysis of the market and positioning on it your competitors. The most important factors influencing market success of the Russian companies are competitiveness and a set of additional services. From the point of view of formation of a brand, the company can make the wide product range, but at the same time this production has to be uniform, that is it is impossible to turn out cheap mass and expensive exclusive products under the same brand. There is one more unpleasant feature of release of diverse production under one brand which was shown in post-Perestroika time when many serious firms, along with the main production, began to let out consumer goods, so-called consumer goods. The producer of the industrial equipment suddenly began to let out ware, “Izhora plants“ long time besides metallurgical production (a forging, preparation), the petrochemical equipment made spare parts for cars and table sets from stainless steel. At the same time advance of consumer goods, most often, negatively affected image of the main production of the enterprise. Moreover, the consumer began to connect association LOMO only with cameras, forgetting that the enterprise is a producer of high-quality optical production. Therefore, when forming a portfolio of a brand it is necessary to consider errors of the previous chaotic period of development and to leave to the consumer with the thought-over positioning strategy. Remembering that success of commercial brands more depends on productive work of the company with the customer, his creators have to pay considerable attention to how the need of the customer at the expense of the current product portfolio of the company and as the existing system of work with the client works is satisfied. Besides, creating own brands, the Russian industrial companies have to be ready to reconsideration of a significant amount business - processes at the enterprise they worked for formation of image of the company which, in turn, will work for it many years. Let`s hope that the period of unsystematic advance of the Russian production safely comes to the end and there comes time of effective branding. And time such time comes, at the correct organization of marketing and communicative activity qualitative Russian industrial goods have all bases to become brands and even, to squeeze in the short term into the TOP - 100 most successful global brands.

And then total number of the Russian billionaires will increase in proportion to increase in quantity of milliard Russian brands. And it, in turn, will speak about the most advanced stage of civilization of the Russian market.