Branding
Nike and coca cola are the two companies that I have chosen.
A brand is a symbol/picture or tagline that a business is known by. There are two types of branding, commodity branding and concept branding. A commodity brand is one which communicates messages to customers about particular products they might spend their money on for example food clothes you wear and furniture. A concept brand is one which communicates an idea or campaign which you would like customers to think about or get involved in for example cancer research, Oxfam and 5 a day.
Another ways of classifying is who made the product or and its own label. The manufacturer creates the brand for example Coca-Cola and Nike are the manufacturers for its product. They will have to create the distinctive logo/packaging and the advertisement goes with it. When the shop itself creates the brand, it is known as ‘own label branding’ for example big supermarkets such as Tesco.
There are many benefits of branding to a business which builds up a brand name. The customers will pay higher prices for products that have brand names for example the customers will buy coca cola drink instead of a drink that is plain for example Tesco’s soft drinks therefore more shops will stock branded products because they know customers will buy them this means the company will get higher profits because they sold it in a higher prices. When it comes to clothes and footwear Nike is one of the businesses that customers will buy their sports clothes or shoes from as the customers wouldn’t buy a shirt with no name on it or logo.
A business can ‘add value’ by trying to build customer’s loyalty. The majority of branded products have competitors who offer similar goods to the customers so in order for them to get the most customers to buy theirs , and keep coming back, the business needs to offer more than just the basic or