Branding is the process of creating a distinct name, symbol, design, or image that identifies a product and differentiates it from competitors.
- A strong brand builds trust, loyalty, and recognition in the minds of consumers.
Branding Objectives:
The main goals of branding include:
1.) Identify the Product:
- Branding helps consumers easily recognize and locate a product.
2.) Differentiate from Competitors:
- A brand sets a product apart from similar offerings in the market, helping it to stand out.
3.) Build Customer Loyalty and Trust
- A well-known brand with positive experiences creates repeat customers and encourages trust in quality and performance.
Types of Brands:
1.) Manufacturer/National Brand:
- These are brands developed and marketed by producers/manufacturers.
- They are available across multiple retailers.
- Example: Nike, Samsung, Coca-Cola
2.) Private/Store Brand:
- Developed by retailers and sold exclusively in their stores.
- Typically priced lower than national brands.
- Example: Great Value (Walmart), Kirkland Signature (Costco)
3.) Generic Brand:
- No brand name or minimal packaging—just the product and a label.
- Often the lowest priced option, used to attract price-sensitive customers.
- Example: Generic flour, salt, or rice with plain labels.
4.) Co-Branding
- Two or more well-known brands join forces to market a product together.
- Combines the strengths and recognition of each brand.
- Example: Intel Inside Dell laptops, Nike + Apple fitness gear
Brand Equity:
Brand Equity refers to the value a brand holds in the market based on consumer perception.
It is influenced by:
- Brand awareness (how well people know it)
- Brand associations (what it stands for)
- Brand loyalty (willingness to repurchase)
- Perceived quality (belief in the product’s reliability)
A strong brand equity leads to customer preference, the ability to charge premium prices, and higher profitability.
