Branding has often been one of the most important processes in promoting a product or service. For some, it may be branding of an individual, companies or other entities. There is little doubt that the rewards of branding can be lucrative and can potentially have a far reaching effect to the growth of the companies. Before plunging into action by splurging on creating brand, it is important for us to stop and think of a simple question :
Why do companies need branding?
The process of branding is essentially creating a brand for possibly a product. This process can be extended to other forms. A key goal of creating brand is to portray your product as somewhat unique. Consumers are largely willing to pay for such differences. In Singapore context, one can simply purchase a cheaper version of coffee , but others are willing to splurge on Starbucks coffee. It is the premium that people associate with certain brand. Simply, put it, brand creates product differentiation and therefore creates connection to people who wish to be associated with the brand.
2. Enhancing value and worth
As mentioned earlier. there are groups of people who are willing to spend more for certain products. A cake at a neighborhood bakery might be viewed differently as a similar cake sold in the shopping mall. It is the premium people paid for brand. It allows companies to accrue a growing benefits with the growth of their brands. People are willing to pay more as if they are consuming the brand.
3. Creating mental affinity with consumers
One of the powerful effect of branding is the creation of resonance with consumers. This can simply means that consumers are identifying certain services with a certain brand. Think of laundry service and a brand might flashes across your mind. Think of chocolate and you may crave for a certain type and brand. Think of traveling overseas and perhaps a specific airline may appeal to you. The brand can unconsciously creates multiple associations in the minds of consumers.
4. Brand Capital
Like stocks, investment and money, brand is also a capital. Creating a brand can be monetary rewarding during explosive growth. When people starts to link your brand with a product type as in point 3, it is the beginning of a brand capital creation. Small and Medium Enterprises (SMEs) can effectively leverage on the brand capital and eventually proceed to listing your companies of which they can find a sponsor who believes not only in the sound fundamentals of the company but the belief in the idea of “enduring” brand that can command market leadership through its strategic links within the heart of the consumers.
Hence, before you start spending large sum to create a brand, think of the message your brand is sending to the targeted consumers.
Stay cool and enjoy the ride!
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