Elements absolutely necessary for branding, value, identity, empathy

There are three essential elements for branding. It is value, uniqueness, empathy.


Why is the value brand a brand? That is because the brand itself has value. Consumers are seeking not the product itself but the value attached to that product. For example it is a wallet, but if you only want the functionality of a container for keeping money and carrying around, you do not need a brand there. It is because you only have to pursue the functionality that you can store money. The reason why consumers want to acquire Louis Vuitton wallets and Gucci wallets is because they have added value beyond functionality in their wallets. Value is not from the viewpoint of the seller side but from the viewpoint of the consumer who is the buyer.

The distinctiveness
brand needs to be differentiated from other products clearly and differentiated. Customer's loyalty tends to be difficult to grow because average, something safe, ordinary one is hard to be established as a brand and can be replaced by other products. As a result, the value of brands with no special features tends to decline. How to develop identity and individuality increases the value as a brand. Product without originality has the disadvantage that it is difficult to give consumers the image that this brand is like this, it is hard to rest in impression.

In
order to grow as an empathic brand, it is necessary for customers to receive sympathy as "good" from customers. People who sympathize become customers, become fans, become brand believers. The branding strategy will change depending on whether you want empathy for that layer. The more brains can be gathered, the stronger the power as a brand will become. Sympathizing is to become a fan. Fans purchase products and spread them at word of mouth. And new consumers will sympathize, empathy will create a good cycle for the brand.

Three reasons brands are attracting attention

It is said that Japanese companies began thinking of brand management since the mid-1990s. Brand is considered as the fourth resource following human, goods and money. The idea of ​​making a brand an intangible asset is growing up in the middle of the 1980s in Europe and the United States. There are three reasons behind the brand becoming the focus of attention.

First reason

The brand boom broke out in Europe and the United States because M & A became popular in the latter half of the 1980s. There were acquisitions of Nabisco in KKR, the acquisition of Craft by Phillip Morris, acquisition of low entries by Nestle, etc. In order to do such an acquisition, the value of the company must be converted into money. Therefore, the need to measure the market value of the brand was born.

Second reason

In the 1980s, the proportion of advertising expenditure decreased sharply in the marketing budget of companies, and sales promotion expenses increased unchanged. The cost was used to discount at the retail stage, so it was frequently discounted and the value of the brand was lost.

In the latter half of the 1980s, campaigns to raise the value of brands wounded, especially in the advertising industry, were held. As a result, a brand boom happened.

The third reason

The last reason is the reduction of retail industry's oligopoly occurring on a global scale. In Europe and the United States in particular, mergers and acquisitions of retailers have taken place across the border, and megastores are born one after another. In the late 1990s, American Wal - Mart acquired the UK 's Asda and became the world' s largest retailer. Carrefour of France holds Prompes, Albert Hein of the Netherlands has acquired several supermarkets in the United States, and Tesco in the UK is also growing rapidly.

Private brands in the retail industry which have become enormous and strengthened bargaining power are now threatening the national brands that are generally sold. As a result, manufacturers are trying to compete with distributors by increasing their brand value.

The merit of the brand for the company

Brands mean accumulation of all images and experiences related to product services and companies. We also identify brands by combining elements representing brands such as naming, logos, symbols and designs to distinguish them from competitors' products and services. What is the merit for companies that brand products? Four merits can be mentioned.

The merit of the brand for the company

1, Differentiation from other company's products
Brands are promises to consumers regarding quality and concept. Therefore, we can differentiate our products from other companies' products and functions and technologies. Furthermore, by accumulating trust from customers, obtaining loyalty and connecting to repeat can lead to stable profit securing.

2, Identifiable

We will identify our products and services by branding them. When it can be identified as being different from others, the product is more likely to be chosen.

3, Ensuring profitability
Increasing added value through branding can reduce investment in assets for promotion activities. In addition, it is also possible to add prices as compared to competing products so the profit margin increases and you can secure a competitive advantage.

4,
brands that can receive legal protection are protected by relevant laws such as trademark rights, patents, design rights, copyrights etc. As a result, it will be possible to suppress the entry of competitors and to protect the advantage in the market.

The magnitude of the merit of the brand that the company receives is influenced by each brand power, and the stronger the brand power, the larger the merit received will be proportionally larger.

What is the strength of brand power

When considering brand power, there is rarely that only the brand image of its own exists alone in the market. There are conflicts that are always compared. The image of the brand will go up and down with "Relativity" with those competitors. If the brand image of competing somewhere rises, the strength of images of other brands will go down. In other words, strengthening the brand power of your company will lead to lowering the brand power of competitors.

Four Reasons for Strong Brands to Achieve Good Performance

It is often said to raise brand power, but why is it necessary to increase brand power in the first place? Indeed it seems that there are many merits that are stronger than weak. Speaking of the best merit for a company, it is sales and profits. From the aspect of the easiest to understand, sales and profits. Strong brands tend to have better achievements. There are four reasons why strong brands achieve good results.

1, Quantity Premium Effect Because 

strong brands are popular, even if they make the same amount, they are more likely to be chosen than competing products, and they are always in short supply in the market. It is a premium effect that it is always in a state of shortfall, creating value of further brands.

2, price premium effect

Since strong brands are accompanied by added value of brands, you can set a higher price than the average product with the same function and the same quality. To be able to set a high price means that the profit margin will increase accordingly. The rise in profit margin is a major factor in good performance.

3, Repeat effect 

One of the features of a strong brand is high customer loyalty. High loyalty customers will be repeat customers who want to purchase the brand next time. Also, customers with high royalties are less likely to cheat, so sales will grow steadily as repeat progresses.

4, Reviews Effective 

brands have customers with high royalties. A customer with high royalties has the merit of increasing the number of new customers in a review. Since reviews are spoken from a viewpoint from a third party, it is characterized by high credibility. Therefore, there is a high probability of becoming a customer rather than a consumer who got a brand known for advertisement etc., and in many cases it has corresponding royalty from the beginning. In addition, the fact that the number of customers in the review is increased also contributes to reducing expenses such as advertisement expenses and promotional expenses.

What is included in the value of the brand?

Functional value / emotional value

People try to purchase something to get some sort of value. People who triggered purchasing are people, feeling the functional value for the function and use of the product, leading to purchase, expecting the emotional value obtained by purchasing it There are also people to purchase. Or you will buy only with inspiration that came with Vivibbi when you saw the product.

However, it is the minimum standard that most of the consumers are cleared of the technology and the function. At the present time when the functional value is side by side, many purchase decisions are made by their emotions and inspiration It is getting. In other words, the ratio of brand value is increasing.

Image that affects decision making

It is the brand power of products and companies that greatly influences purchasing decisions based on emotions and inspiration. The minimum condition as a brand is to have a "good" image. Even if the function of the product service is excellent, if the image of the company is not good, it is consumer psychology that you do not want to buy products of such a company. For example, if you are a restaurant, do not you think you will go to the shop if it is bad customer service even at shops that serve delicious cuisine? In the service industry you will find out how important it is to have a "good" image as customer service is important.

A good image is the minimum condition as a brand. What is further needed is a "strong" image. If you have an intense image that is easy to remember, the probability that the product will be chosen will be high. In addition, it is also necessary to have an original image. Even if there is a strong image that can be repeatedly remembered, if there is one of several options that person imagines, then there will be as many products as there are probabilities that their products will be chosen. In such a case, there may be price competition. It is important to have an original image of "this is different" and to differentiate.

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