Branding

							Branding
        Learning objectives
• To know a sound definition of Brand name
• To be able to answer a series of exam
  questions relating to branding.
• “Virgin has created more than 200 branded
  companies worldwide”.
• Virgin is regarded as “one of the world’s most
  recognised and respected brand names”.
• “it is important that the Virgin brand is well
  known… and associated with good causes”.
• “Much of Virgin’s success lies with its
  reputation and good name”.


•   P.4, Background, para’s 1,2&3; P.5, Marketing, para 2; P.6, Creating New
          Business, para 1; P.10, Issues for the Future, Issues 1&3.
          What is a brand?
• A Brand is any distinctive name, term,
  symbol, image, design or packaging given
  to a product (or group of products) which
  enables it to be easily recognised and
  differentiates it from other products.
       Why is branding used?
• Branding is a strategy used by businesses
  to differentiate its product(s) from others in
  the market place and to influence
  customer purchasing patterns.
• A research study has shown that the UK public vote
  Virgin as their most admired brand. A sample of 2,000
  adults were asked “which brands or companies can you
  think of that you really admire?” Virgin received more
  votes than any other brand with 23% of votes. Sony
  came second with 21% of votes, whilst Tesco came third
  with 20%. The results come from a nationally
  representative survey of 2,000 adults conducted in
  February to April 2007 by top research company
  HPI Research.
• Source:
  http://www.virgin.com/AboutVirgin/WhatWeAreAbout/Wh
  atWeAreAbout.aspx
   Why is a Well Known, Respectable
     Brand Name so Important?
• A strong brand name can…

• Help to make a product stand out from
  others. This is especially important where
  there is high competition.

• Help to secure new customers. People are
  more likely to buy a product under a brand
  name they have heard of. This is because a
  familiar name provides a sense of security and
  reduces the perceived risk some customers
  experience when buying a new product or
  service.
• Help to secure repeat customers / business
  and build brand loyalty. Customers who like
  one product within a particular brand may be
  more willing to purchase another with the
  same brand name.
• Help maximise sales and market share - as a
  result of points 1 to 3 above.
• Enable a higher price to be charged, and
  thus, add value. A strong brand name /
  image can make a product appear superior in
  some way and customers may, therefore, be
  willing to pay a higher price for it.
•    provide marketing economies of scale.
     Branding enables marketing campaigns to be
     spread across a range of products –
     providing marketing economies of scale –
     reducing unit costs.
•    help maximise profit / profit margins – as
     a result of points 5 & 6 above.

•    increase the value of a business. A brand
     name can actually be included as an
     intangible fixed asset on a business’s
     balance sheet.

As a result of the above, branding is, clearly, an important strategy
     for Virgin in helping to maximise sales, market share, profits
     and return on investment to shareholders.
                   However:
• Branding often requires considerable
  investment in advertising in order to build an
  appropriate image that will attract and appeal
  to the target market.

• Branding will only be successful if the product
  or service lives up to customers’ expectations
  and the image built through advertising.
• Bad press with one product / service /
  company can negatively affect the image
  and sales of another with the same brand
  name. This is raised as a specific issue for
  Virgin on Page 10 of the Case Study and will
  be discussed in more detail later.
            A strong brand can:
                 Help to make a ____________________ stand out from others.
            Help to secure ____________________ customers.
            Help to secure repeat customers / business and build brand
            ____________________.
            Help maximise sales and market ____________________.
            Enable a ____________________ price to be charged, and thus, add
            ____________________.
            Provide marketing ____________________ of scale.
            Help maximise profit / profit ____________________.
            ____________________ the value of a business.




The missing words – careful, there are spare words to try and confuse you!!

new; volume; minimise; large; share; higher; product; old; maximise; increase;
loyalty; divide; margins; existing; decrease; lower; value; economies
                    Answers
• A strong brand can:
  – Help to make a product stand out from others.
• Help to secure new customers.
• Help to secure repeat customers / business and
  build brand loyalty.
• Help maximise sales and market share.
• Enable a higher price to be charged, and thus,
  add value.
• Provide marketing economies of scale.
• Help maximise profit / profit margins.
  – Increase the value of a business.