- Branding is the process of creating a unique and identifiable name, design, symbol, or other feature that differentiates a product/service or company from its competitors
- Branding is a strategic tool that helps businesses create awareness, develop strong customer relationships, generate loyalty, and establish a perceived value that sets them apart from competitors
The three different types of branding available to businesses
- Through consistent and effective branding efforts, companies can build a strong brand presence, cultivate customer loyalty, and achieve sustainable business growth
Manufacturer/Corporate branding
- This refers to the use of a company name or logo to promote all the products or services offered by the company
- This type of branding is used by companies like Nestlé, Nike, and Apple
The Advantages & Disadvantages of Corporate Branding
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Disadvantages
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- Creates a strong brand recognition and reputation for the company, which can increase customer loyalty and trust
- Allows the company to leverage its existing reputation and customer base to introduce new products more easily
- Helps to build economies of scale by promoting multiple products under one brand, which can reduce marketing costs and increase profitability
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- If a company's reputation is damaged by a product it can have a negative impact on all the products offered under that brand
- If the company faces intense competition in one market 9e.g smartphones), it may affect the sales of all the products offered across other markets (e.g laptops and desktops)
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Product branding
- This refers to the use of a unique name, design, or symbol to promote a specific product
- E.g. KitKat, Coca-Cola, and McDonald's Big Mac
The Advantages & Disadvantages of Product Branding
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- Creates a distinct identity for the product which can help to differentiate it from competitors and increase brand loyalty
- Allows the company to market different products to different segments of the market e.g. Coco Cola and Coke Zero
- Can help to build customer loyalty and trust by associating the product with a specific quality and benefits e.g Dyson Vacuum Cleaners
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- The cost of creating and promoting a new brand for each product can be expensive
- Introducing new products under different brands is difficult as the business must build a new brand for each product from scratch
- Different products within the brand may have different levels of quality which can affect customer satisfaction
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Own brand product
- Own brand or private label branding refers to the use of a retailer's name to promote a specific product or service and is often used by supermarkets
- E.g. ASDA chocolate, Tesco's Finest range, and Sainsbury's Basics range
The Advantages & Disadvantages of Own Brand Products
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- It can help retailers to differentiate themselves from their competitors by offering unique products
- It allows retailers to offer products at a lower cost than branded products which can help to increase sales and profitability
- It can help to build customer loyalty by offering exclusive products that are not available elsewhere
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- Own brand products may have a lower perceived quality than branded products which can affect customer loyalty and trust
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- Brands can be built using any one, or a combination of the following methods:
- By developing unique selling points (USPs)
- Through advertising
- Through sponsorship
- Through the use of social media
Examples of the way Brands have been Built
Method
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Explanation
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Example
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Unique selling points (USPs)
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- USPs are the features that make a product/service stand out from its competitors
- Brands can build their reputation by emphasising these unique qualities in their marketing efforts
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- Apple is known for its innovative and sleek design and use of quality materials, which sets its products apart from its competitors
- The company has built its brand around this USP and is recognised worldwide for its premium design
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Advertising
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- Brands can create compelling ads that resonate with their target audience, raise brand awareness, and communicate their value proposition
With the right advertising strategy, brands create a strong emotional connection with their audience and inspire brand loyalty
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- Coca-Cola has successfully built its brand through advertising
- Iconic ads over the years have become synonymous with the brand
- E.g. The "Share a Coke" campaign encouraged people to buy Coca-Cola bottles with their friends' names on them and was a massive success
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Sponsorship
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- Partnering with events, organisations, or individuals can help brands gain exposure and build their reputation by aligning themselves with positive associations or values
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- Nike has sponsored many high-profile athletes and sports events, such as the Olympics and the World Cup
- The business has built a reputation for being a brand that champions excellence and inspires people to be their best
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Social Media
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- With the right social media strategy, brands can build a loyal following and create a community around their brand
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- Glossier has a strong presence on platforms like Instagram and it engages with its audience and shares user-generated content
- Glossier's social media strategy has helped the brand build a loyal following
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Emotional Branding
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- A strategy where companies build strong emotional connections with their customers by appealing to their values, beliefs, and emotions
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- Brands like Patagonia and TOMS have built their entire brand identities around their commitments to environmental and social causes, which resonates with customers who prioritise these values
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