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Ivano-Frankivsk National Technical University of Oil and Gas, Ukraine
Instruments and methods of the estimation of the process of brand development in time are suggested.
Keywords: brand, brand life cycle, brand development, brand development profile.
Results. Development is the process of qualitative positive changes of a brand which covers its life cycle.
In the context of management we can define a brand as a structural, functional and substantial integrity which is evolving.
Similarly to the product and the organization, the brand has its own life cycle – the whole period from the emergence of the decision to create a new brand to its elimination of the market. To determine the stage of brand life cycle, one can use a kind of "brand BCG matrix" (fig. 1), where horizontal axis shows market share of a brand, and vertical one – brand growth potential (Brand Voltage).
A new brand is in the lower left corner of the graph – it is little consumed, and it grows very slowly. Consumers know almost nothing about this brand, its features, quality, and a brand is a "clean sheet" for them. Those brands that develop significant growth potential, behave smartly and ambitiously – as "little tigers". Brands which are rapidly evolving and attract new customers, belong to the category of "cult". If a brand has average market share but is continuing to develop rapidly, it is called "rapid." A brand which has won the maximum share of buyers and retained high growth potential, is on top of the "Olympus". If a brand traditionally has significant market share but is evolving slower and slower, it becomes "classic" of branding. Errors and omissions in brand management, strengthening positions of competing brands, and changes of customer needs may lead to the loss of a brand's ability to evolve, but consumers still maintain brand loyalty, because this brand once was the best, and now he is a "fading star" . Finally, those brands that failed to force out the strongest competitors of consumer Olympus and to provide stable development, have to constantly defend themselves against more powerful and experienced brands, on the one hand, and against young, energetic and ambitious brands – on the other.
For example, according to "brand BCG matrix", brand "OKKO" (gas stations) which belongs to "Galnaftogaz" can be classified as "rapid": it occupies average market share (fig. 1) and has potential for further development.
In addition, to diagnose the process of brand development, such models as BrandDynamics (Millward Brown), BrandZ (WPP Group), Brand Capital (DDB Worldwide), ImagePower (Landor Associates), Brand Asset Valuator – BAV (Young & Rubicam) etc. are used [1, P. 229 – 244].
In the practice of marketing research special scales are developed for expert estimation, according to the directions of brand development (the scale of A.V. Voychak A.V. Fedorchenko  may be taken as an example) – all indicators are grouped into 9 major areas of brand management (table 1). Estimation is usually carried out according to five-, seven-, or ten-point scale, where "1" means that the statement is completely untrue, and "7" – it is completely true. Overall estimation of brand development is the average of the sum of estimations for each of the areas mentioned above. The nature and number of statements for each of the areas may vary significantly, taken into account activities of each business unit. In addition, it is possible to combine internal estimations of the company and the results of independent marketing audit of brand portfolio, involving representatives of specialized consulting agencies.
According to overall estimation, brand profile is built. After analytical processing of the profile, the form for the determination of brand development priorities is built (table 1 – for the brand "OKKO").
Determination of brand development priorities ("OKKO")
Brand management direction
Averaged scores, obtained by expert estimation method
Weight (1 to 9) *
1. Satisfaction of consumer needs
2. The importance of a brand for consumers
3. The value of a brand for consumers
4. Brand positioning
5. Portfolio of brands
6. Integrated marketing
7. Brand management
8. Marketing support of a brand
9. Brand monitoring
* 9 – the highest importance, 1 – the lowest importance
As we can see from the table, all indicators of brand development ("OKKO)" are on the average level. Such areas as "The value of a brand for consumers" (3,67 points), "Brand management" (4,25) and "Brand monitoring" (4,5) have the lowest averaged indicator. The reason for this is that the company doesn't follow and doesn't control the perception of the importance and value of the brand for consumers, as well as the change of its perception by consumers, the target market of the brand is not enough researched and structured, brand position audit is actually absent.
Conclusions. Thus, brand development priorities for "OKKO" are the provision of consumer needs satisfaction, relevance and value of the brand for consumers.