Own-labelled brands are owned and controlled by retailers. Examples of own-labelled brands include Tesco, Farm foods (ASDA), Sainsbury’s own label, etc. the disadvantages of own-labelled brands are, producers and manufacturers not related with the product, or involved in their promotion.
Generic brands have no identifiable name or logo. Examples of generic brands include plain T-shirts or bin-liners. These brands only exist at the lower end of the market, with respect to price and quality.
A successful brand can be defined as the following: ‘A successful brand is a name, symbol, design, or some combination, which identifies the ‘product’ of a particular organisation as having a sustainable differential advantage’. A differential advantage simply means that, customers have a reason for preferring that brand to rivals’ brands.
A strong positive brand can able to be sold at a higher price, resulting in a high profit-margin for the product. Also, it can provide a strong basis for the organisation to launch new products to enter into the market.
Business organisations can use the following to create their brand image: logo
/trademark, reputation, received quality, packaging, slogans, uniqueness, product loyalty, individuality.
Advantages of branding:
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Recognition and loyalty- customers are much more likely to remember your business
- An image of size and establishment can be important when a customer wants reassurance that you will still be around in a few years time
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Image of quality- if you can create effective branding, the image of quality in your business will go up
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Multiple products- a strong brand will allow you to link together several different products or ranges. For example, Sony sells televisions, consoles, DVD players and etc all under the Sony brand name
Disadvantages of branding:
- When building a strong brand, it can be very costly (e.g. design and marketing costs)
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Impersonal- many branded businesses may lose their personal image
- When creating a brand it will usually take a long period of time
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Fixed images- if your brand is focused too strongly on one product, it can limit your ability to sell other product
I have decided not to choose branding because, this component is only succesful on products and not services. I could use this component to strengthen the company’s brand name, but not my chose of service. I will explain why I have not chosen this component in more depth, on pages ( ).
Created by Baljinder Duhra -