Brand intensity online is moderate with 35% of the market dominated by a single brand, and the remaining 65% widely dispersed among competitors. Brand intensity in the traditional marketplace is much higher, with 60% of the market being controlled by two well-established and strong competitors (Brands A and B). This analysis suggests less current brand intensity online than in the traditional marketplace, which is characteristic of many product categories and industries today. However, the concern for a firm entering this marketplace isn't the state of current online brand intensity, but rather the potential online brand intensity. The potential competition online is much greater than in the current online marketplace, as Brand B maintains a strong market share in the traditional marketplace that may be extended online in the future.

If the current competitive brand intensity of the product category or industry is high, the firm should next assess its current brand position within the marketplace. Firms facing strong brand intensity may wish to reconsider their target market. For example, a new online specialty apparel retailer will note that the brand intensity is high for the age 18 to 35-year-old segment. This segment purchases from specialty retailers currently online (e.g., J.Crew, LL. Bean), as well as from retailers such as The Limited, who have strong traditional market share, but have yet to enter the online retail environment. Thus, a firm should carefully assess its brand positioning, developing an appropriate strategy to enter the market. In industries where brand has previously been less important (but is becoming more important) or where a clear brand leader hasn't yet been established in the product category or industry (i.e., low brand intensity), the firm may wish to move quickly to establish its brand online.

Step 3: Assess branding position. In a product category or industry composed of known and unknown brand names, those with greater brand equity may have an inherent advantage over unknown brand competitors. As discussed previously, Amazon entered early into a market where branding was only moderately important but online brand intensity was low, which enabled it to establish a competitive brand position. This branding position has continued even as traditional brands such as Barnes and Noble and Chapters have entered the marketplace. If a firm has low brand equity, it may wish to develop its brand equity before spending a lot of money on high-end design technology. This doesn't mean these firms shouldn't establish an online presence, but they need to carefully consider how they allocate resources in branding and high-end Web design technologies.

Boo.com serves as a point of illustration. At the height of the e-tail revolution, Boo.com was one of the industry's online darlings. It promised to revolutionize selling fashion apparel online. Large investments were made in cyber-modeling technology, attempting to bring the essence of product trial in a dressing room to the online retail environment. Unfortunately, the investments in a high-end Web site depleted Boo.com's financial reserves even before it opened.

For firms with established brand equity, online success lies in supporting and leveraging brand equity online. As such, the issue is supporting the online brand extension with the firm's Web site design. For firms without established brand equity, success lies in developing brand equity while simultaneously developing Web site design.

Step 4: Assess level of competitive Web site design. After brand positioning analysis (or in product categories where brand is less important or in situations where brand intensity is low) a firm should critically evaluate the competitiveness of its Web site design. Consumer expectations are set by experiences with other Web sites in the overall marketplace, so a firm should assess its Web site design in comparison with marketplace best practices. Web site design is subjective (i.e., some consumers like bright colors and motion, while others prefer primary color combinations presented statically), but differences tend to exist primarily at the margins. That is, most will agree on the basic elements that separate a well-designed Web site design from a poorly designed one.

All Web site design must stand up to basic design standards-quality photographs, well-written copy, clearly defined navigation, and professionally designed graphic art. High-level programming and functional development play a role in the perceived quality of a site, although not always for the better. A Web site employing several high-end Web design technologies doesn't provide value to its users if they aren't able to navigate the site easily. Intuitive arrangement of links to product and service offerings will often make up for a lack of high-end Web design technologies.

Before deciding to implement a graphically intense Web design, firms should pay attention to the intended end user. For example, compare sites that make their money online, such as Amazon.com or yahoo.com, to sites that make their money offline, such as GM.com or Sony.com. Many of the sites conducting business online tend to not use large or animated images, flash, or other elements that will limit their audience or slow their page-load times. A site targeted at individual consumers, many of whom connect via modems through Internet service providers, shouldn't require users to download a new browser version or plug-in to simply access their site. Even if users are willing to download the required software, the slower page-load times will result in longer waits for customers to access information, stimulating them to move to a competitor's site.

One way to cater to both high- and low-bandwidth customers is by offering a "high graphic" and "low graphic" version of their site. Gulfstream (www.gulfstream.com), the wellknown jet manufacturer, offers its users a choice between a Flash site and an HTML site. While the basic design of the two sites is similar, the Flash site is more graphically intense. The HTML site provides lower bandwidth users access to the same information with faster page-load times, without compromising Web design quality or the quality of the brand perception.

To assess Web site design, managers should not simply surf their competitors' Web sites. Rather, they should design and employ a structured instrument categorizing Web site design elements. The structured instrument should include design elements (e.g., color, graphic size, product design techniques, static or dynamic graphics) as well as more technical Web site design aspects (e.g., use of frames and order processing technology). Once the structured instrument is completed, a firm should develop a process to examine Web site design at two levels: competitors and best practice.

First, the firm should examine its Web site design relative to its competitors, which consumers will have viewed and be using as a reference point. Next, the firm should assess the Web site design of top online firms. This aspect is more difficult because sometimes it's hard to know which sites are well-regarded by the general population. However, a consumer's expectations of Web site design are not only set by direct and indirect competitors, but also by Web standards, which makes it a critical element of design assessment. As a starting point, managers may wish to draw their sample from one of the many award sites available online, such as WorldBestWebsites.com.

Step 5: Take branding/Web design action. For managers in firms with high brand equity, the advice is simple: Extend the brand online. If you're not currently online, get online-- whether in full online retail mode or simply as a communication vehicle. Further, be careful of how you get online. Some firms invest heavily in Web site design, while others don't. When Web site design is poor, consumers perceive the quality of the products to be lower. A consumer's online evaluation of a firm's products is influenced by his/her Web site design expectations. As such, a firm with high brand equity should continually assess the quality of its Web site design to make sure consumers perceive it to be of high quality. The negative carryover effect of a poor Web site design can hurt an established brand as much as the positive carryover effect of the brand into the online world can help.

For managers in firms with little or no brand equity (i.e., newly established dot-coms or regional firms expanding nationally or globally online) in a brand-important product category or industry, a key to success is maintaining competitive Web site design while investing in brand-building tactics. In these industries, firms must leverage their competitive advantages and build their brand online and offline. Web site design alone isn't enough to support an ongoing concern. While site design is very important to present a professional image, with established brands entering the online world, managers of online firms should begin full-fledged brand-building strategies that move beyond the Web.

Further, for managers competing in product categories or industries where branding is less important, site design can significantly influence the firm's ability to stimulate consumer response. In this situation, consumers evaluate products on alternative attributes. If, for example, a consumer can purchase the latest Michael Crichton bestseller at a traditional retailer such as Barnes and Noble or online from Amazon.com, the final decision may depend on price and convenience. Given the importance of design over brand in this case, it's critical to invest in professional Web site design.

Where Do You Stand?

As the e-commerce market continues to move toward massmarket consumers, online brand management will become more important. Established firms will leverage their brands online, making the competitive intensity even higher. This doesn't mean new firms can't enter the marketplace when brand equity of competitors is high or that, by simply moving online, firms with high brand equity will be successful. As suggested previously, when branding isn't important, when there's no dominant brand in the marketplace, or when brand equity is equivalent across competitors, Web site design can have a significant impact on stimulating consumer response. However, in product categories or industries where branding is important, simply having a great Web site design will not overcome a competitor with strong brand equity. Rather, managers must critically evaluate their position in terms of both brand equity and Web site design for online success.

(C) 2002 Marketing Management. via ProQuest Information and Learning Company; All Rights Reserved

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