Branding A brand is a product or a range of products with a unique and easily recognisable character – it is associated with large, long-established companies. For example we all recognise Heinz, McDonalds, Virgin or Coca-Cola not only by the logo but by the packaging, taste, advertising and other features. These companies have been around for a long time.
Why do some businesses use brand names? Some businesses aim to make their product instantly recognisable to the consumer by heavily marketing goods to appear different so that customers believe they are better .
Brand Names – the benefits By creating a brand image, the manufacturer hopes to benefit in the following ways: BRAND LOYALTY – customers buy their product time and time again, preferring it ahead of other similar products. Customers choose to buy their product because they believe it is superior (better than) to other products
Brand Names – the benefits Q. Can you think of any brand name products that you believe to be of a better quality than others? Make a list of 4 such products. Q. What makes them better?
Brand Names – the benefits <ul><li>Another advantage of having a branded product is that manufacturers can charge customers a higher price. WHY? </li></ul><ul><li>By charging a higher price, customers automatically think they are getting a better quality product, and quite often they are getting a product which is of higher quality. </li></ul><ul><li>This is known as charging a PREMIUM PRICE . </li></ul>
Brand Names – the benefits <ul><li>By having a brand name, businesses find it easier to launch new products. Why? </li></ul><ul><li>Because customers trust them. Their old products have been successful, so there is more chance that customers will try their new products. </li></ul>
OWN BRANDS Own Brands are products which are sold under the brand name of a supermarket chain or other retailer, eg Tesco, Boots etc. Own brands are usually cheaper than the branded products from manufacturers.