Download - Why do brands matter
Why do brands matter?
Presented by:Nahid Al Sharhad (2010-1-10-220)Faria Reza (2010-1-10-207)Chowdhury Fahmida Jannat (2010-2-10-147)Sanjida Noor (2010-2-10-114)Akram Hossain (2008-2-10-257)
WHY DO BRANDS MATTER TO CONSUMERS
Help buyers identify the product they like or dislike
Helps buyers evaluate quality of products especially if unable to judge a products
characteristics
Brand helps to reduce the time needed for purchase
Brand helps to reduce buyer’s perceived risk of purchase
Buyers may derive a psychological reward from owning the brand
WHY DO BRANDS MATTER TO MANUFACTURERS
Brand identifies the companies products making repeat purchase easier for customers
Around the world, the average person consumes a Coke product every four days
Coke sells 1.7 billion servings per day in over 200 countries.
Brand helps form introduce a new product that carries the name of one or more of its existing
products
APPLE released iPhone in 2007, which was a huge success for the company.
Legal Protection
Apple sued Samsung for copying its design– Apple Won $1.5 Billion in compensation.
Firms may be able to charge a premium for the brand
Starbucks coffee can charge a higher price than a same quality non-branded coffee because of their brand
Differentiate product offering from competitors
Pringles differ themselves from their competitors in terms of taste, looks and packaging
Easier cooperation with well known brands
Tata Motors acquired the Jaguar and Land Rover businesses from Ford in 2008 and made huge profit. Sales of TATA automobile went up to 4% in the last fiscal year.