BRANDS
In fact a brand is all these things – and so much more besides. A strong, recognisable brand is priceless – it consistently delivers on its promise of quality and value. It makes choosing much easier and provides the buyer with reassurance and confidence in his purchase.
A strong brand takes note of what the consumer wants and places great emphasis on its research and development in order to cater to their requirements and stay one step ahead of competitors. Such innovation is the stimulus of a living, dynamic market constantly striving for improvement and encouraging competition.
To some, a brand may just be a name, logo, corporate identity or just recognisable packaging. To others it may be a "trust mark" – a guarantee of consistent quality and to a brand manufacturer it is one of his most valuable and yet intangible assets.
The definition of a brand
A strong brand is unique and stands out from the crowd and it is this ability to differentiate itself from the competition that makes the brand such a powerful mechanism for choice and competition. In addition, a brand is available from one end of the country to the other – sometimes even globally. Its constant desire to meet consumers' changing needs and to keep ahead of the competition means it is continually striving for innovation and improvement.
A force for good
Although they may not realise it, everyone is affected by brands in some way. Brand publicity often suffers at the hands of anti-globalisation and anti-capitalism activists who consider the effects to be nothing but negative, but the truth is that brands can be a major force for good in today's world.
In this section we look at how brands affect all our lives - as consumers, in the broader economy and in society.
The economy and brands
Brands deliver their benefits to consumers through a process of innovation in a climate of competition. Competition is the incentive for innovation and innovation makes brands more responsive to consumer needs.
This process is highly beneficial to the wider economy through its contributions to innovation, competitiveness, wealth and job creation.
Consumers want brands for the benefits and value they give them. Mass publicity through advertising and other commercial communications, combined with widespread distribution, leads a scale which enables mass production. This provides the capacity for competitive pricing and funds for more research and development. Brands are essential for a thriving, modern economy. Their identities provide differentiation in the marketplace, which enables competition to flourish, as new and existing brands contend for the consumer's attention.
In addition to contributing to the domestic economy, CHINA companies rely on their brand reputations to carry their products successfully into international markets.
A report by Coopers & Lybrand in 1995, based on a limited definition of the packaged goods sector, found that producers of branded goods accounted for:
The most obvious contribution is that of choice. Brands, driven by competition, strive to best produce exactly what the consumer needs, resulting in a choice of products from which the buyer can choose.
Competition encourages diversity. As consumers' needs evolve, so brands have to do the same to meet these new needs. The only constraint is economic viability.
Some brands also manage to tap into the emotions of a consumer, so your choice of clothes, car, bank or food says something about you because of the values the brand represents. This statement of self-expression is under the control of the individual and not the brand.
A successful brand is developed by identifying consumer needs and tapping into their emotional response. It is then designed accordingly and a unique market position is created for it. Developing brands is a risky business with many never making it past the launch and for those that do it takes time to achieve a good reputation and to receive recognition.
There are four stages in a brand's development.
Identifying consumer needs
The consumer may not realise he needs something until he sees it, so consumer market research is vital in identifying needs and responding to them. Needs are not static as they are constantly evolving as a result of changing demographics, wealth and technology.
Designing products.
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