A Swedish bearing company was struggling to carve out a distinct position for itself due to stiff competition with Chinese brands. The management decided to reposition the brand to enhance the brand image in the market. The Company called IKON to help it with a brand strategy that defines the new positioning, creates a new identity and its transition plan.
Approach & Recommendations
We started with identifying the current image of the brand among its customers. Several interviews of customers were taken to know about their perception about the brand and how they are comparing it with other brands while purchasing. Apart from competitor analysis, management’s views were taken to frame the holistic view of current market position. A perceptual map was formed based on the gathered insights to know the actual positioning of the company's brand and competing brands.
The rigorous exercise revealed that though having better quality than peers i.e; longer life of bearing, the brand was perceived as low quality Chinese bearing among the majority of target customers mainly due to the vague brand messaging and poor quality of packaging. Moreover, the study revealed that demand for non-Chinese bearings having longer life is increasing in the target geographies due to strict import regulations imposed by Govt. Authorities.
Based on such insights, we developed a brand strategy and supported the client in implementing. It included:
The client implemented a new brand strategy and communication plan aggressively. With our support, the client successfully launched a new brand logo and packaging in just 3 months of implementation. Within the first year of launch of the new logo, packaging and campaign, the client realized enhancement in overall brand image and increase in market share by 4% in target geographies.
Note: We are committed to clients' confidentiality. So their names have not been disclosed, but the results are real.