Is branding = goldmine ?? (it certainly costs so…!!)

Simple question. Most of the readers here definitely knows what a brand is. I believe it is something due to which  value is added to the product in the customer’s perception. It is for this so called “Brand” that he is willing to pay a premium from his own pocket !!! An awesome powerful tool really ! A marketeer’s boon!!

But is everything really great about having a brand and is worth the cost ? Did I hear yes? I again disagree ( one of these days I hope I will agree with you ! I really want to !)

Logic says, having a Brand is like having a goldmine. Yes it is to some extent specially when dealing with  the upper segments of the pyramid. Your company spends millions of dollars to build brands say A and B. It is hugely successful as well ! you are a hit !

But now you get ambitious ! You need the entire pyramid for yourself( read our previous post- Learning to share). So do you start a new brand for essentially the same product? Now you face a dilemma whether to extend the brand (which will obviously lead to value destruction to some extent ) or to launch a new brand ( another 10 million dollar bill – and you want to spend? Man you are rich !). There have been companies which have been successful in both the scenarios.
Is it only Branding which makes it successful? An absolute No.
Your brand was built because you delivered what you said you will ! simple ! It wasn’t built because of the millions you spent promoting, but it was certainly built because of the quality and innovativeness you put on offer. But then is branding a futile exercise?

No. Because it is important to let people know that you have a great product. But instead of spending millions on promoting a brand, try to spend a part of that on delivering it as promised. Your market will be created then because when I will buy a good product , I will tell others that you have a good product which in turn will build a great brand. Quality and marketing always work as brothers in arms.Brands like Volkswagen or Levis became brands only because they delivered quality product as company.

Bottom line : Build quality ! It pays !!

And one thing which every client should remember, if your product isn’t good and you hire the best marketer he can sell it to the first, the second, the third… but he will not be able to sell it to the last one. So always invest in the right areas. (Am I sounding a bit anti-marketer on a marketing blog ! Gosh !!)
Building a good product = Building a good brand = a goldmine for the times to come !!

Food for thought : How many millions are you willing to spend for promoting your brand? And do you invest similarly in innovation and quality?

You will love reading: Shy Guy.  Must read article The Knock-out


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