A brand is a label, term, symbol, design or any characteristic that marks one product or service as different from those of others. The brand may be proprietary, brand, common or brand name. It does not carry any guarantees and is exclusively the property of the seller. It usually appears on the packing slip of a packet of goods to identify the brand. In recent times a logo may also be used by companies on their products to promote the company. Thus a packet with the company’s brand on it can be a great marketing tool.
Branding helps businesses differentiate their products or services from the rest on the market. By using strong branding, the product or service will be easily distinguished from the competition and will have a greater chance of standing out and attracting a higher level of attention. Brand names are perceived as reliable and represent the best of quality and service. Consumers attach a special brand value to something because they believe that it is something that has been tried and tested and has a great history.
There are many factors that determine the brand values of different companies. Some of these are consumer attitudes, company image, packaging design and performance, but most importantly it is the perception of the consumers that has created a brand reputation. Most consumers base their perception of a brand from advertising and promotion which the company uses to build up their brand image. A Fiji water bottle with a Fiji beach theme is perceived as an exclusive brand where Fiji water is the main commodity used to design the packaging design. A bottle with a logo of Fiji that is displayed at a height where a consumer cannot read the label is considered inferior because the consumer will probably not consider purchasing that brand since it does not represent the highest quality or Fiji water in the market.
To create a high brand equity or to build up a strong brand loyalty, the company must continue to develop new and innovative promotional activities and product launches. Consumers need constant information about the different brands and promotions and are therefore more likely to buy a product from a particular brand than another. It is for this reason that branding plays a critical role in defining the success and profitability of a company and its brand.
One of the best examples of a successful brand is coca-cola. Coca-cola has been a brand name for more than 50 years now. A major part of what defines this brand is its marketing strategy and how it promotes itself to the consumer. Coca-cola has built up a strong brand reputation which is communicated through a consistent advertising campaign and promotions. In addition, the branding strategy is also maintained through the use of corporate logos on products like cups, spoons, hand warmers and towels. The consistent promotions and information is what creates brand loyalty and credibility for the brand.
In conclusion, a healthy balance between the brand and the product is needed in order to have a successful venture. A balanced brand implies a company that deals with the right brand to the right audience at the right time in the right place. There are many other brands and promotion techniques that can be used for a successful venture. Brand equity is the most important asset for any business and by creating strong brand equity, companies are able to increase the profit margins and make more profits.