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A Brand by any other Name...Just Isn't the Same!

What makes a consumer buy one brand of a product instead of another? How do companies decide on which packaging to use or which ad campaign to choose? The answers to these questions are tied to another question: What makes a successful brand? Companies spend millions of dollars on establishing their brands: selecting a name, finding a slogan, and advertising their brand on TV and in newspapers and magazines. The goal is to make their brand name well known and to make the consumer associate it with a certain quality or idea. This activity of establishing and promoting a brand is called branding.

To the average consumer, the difference between a brand and a product can be confusing. One way to explain the difference is that brands are around for a long time, while products come and go. Take, for instance, the sportswear manufacturer Nike. Nike is the brand name. Nike might produce many different products over the years, such as different lines of athletic shoes and clothing, but the brand name "Nike" will always be the same. And brands are not just for consumer products. All types of businesses from law firms to banks to universities to Websites invest money in establishing a strong brand and differentiating themselves from the competition.

One thing that a company sets out to do when it is making a brand is to inspire brand loyalty. This means that through its advertising and marketing activities a company will convince the consumer to buy only its products all the time. For instance, a consumer who is loyal to Zoom toothpaste will always buy Zoom toothpaste even though it might be little more expensive than some of the other brands. The same consumer will buy Zoom mouthwash when it comes onto the market because of the good feelings he or she associates with the brand name Zoom.

It sounds simple. So why is creating a successful brand so expensive? Because a good brand can be worth millions in revenue (think of Apple Computers, Coca-Cola, or GE). Likewise, a bad brand can mean millions in losses. Brands are fragile things. Consider the difficulties many companies have promoting their brands abroad. Some companies change their brand names, packaging, even the products themselves when marketing them in other countries. Diet Coke in the U.S. becomes Coca-Cola Light in Europe. The formula used for a soft drink in one country might be sweeter or less bubbly in another, depending on local tastes. Despite the time and money strategists spend marketing brands abroad, mistakes do happen. Consider the problems Kentucky Fried Chicken encountered trying to translate their slogan "finger lickin' good" into Chinese. The result was "eat your fingers off."

More problems arise when companies expand their brands. An example of good brand expansion would be if an orange juice company that claims to offer healthy vitamin C to its customers expanded into vitamin C drops made with "real orange flavor." The drops would be tasty and healthy and would keep the same brand image. A bad example would be if the same company decided to produce orange candy, a very similar product. Why? Because candy is considered unhealthy. Associating the orange juice with an unhealthy food could hurt the healthy image of the brand. Similarly, imagine if a luxury car company wanted to start a line of affordable compact cars. The typical luxury car owner (someone concerned with quality, style, and image) might start associating this less expensive model of car with the luxury brand itself, thereby making the luxury brand seem less stylish, luxurious, or valuable. This phenomenon is called taking a brand downmarket. A solution would be to market a high-end SUV or to establish an entirely new brand of compact cars owned by the same company but not associated in any way with the company's luxury brand and brand image. Taking a brand downmarket can be very hurtful to brand loyalty and brand image. However, if a particular market is suffering, taking a brand downmarket intelligently could result in higher sales.

Brands are so important today that entire companies exist solely for the purpose of inventing brand names and slogans. Strategists and consultants are paid a lot of money to help companies form brand images. Many companies even have brand managers who look after brands to make sure they are being properly marketed and presented to the public. It looks like consumer culture is here to stay, and for the time being, brand names will be a big part of it.

Understanding the Main Idea

1		Developing a strong brand is an important part of a company's success.
2		Expanding a brand is a bad idea.
3		Companies spend a lot of money on establishing brands.
4		American fast food companies should not try to market their products abroad.
5		Once a brand image is established, that image must be maintained, both at home and overseas.