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Advantages and Disadvantages of Branding

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Advantages and Disadvantages of Branding

According to the Heinemann AVCE in Business, ‘brand is a particular
product or characteristic that identifies a particular producer’.
Branding is one of the common methods of differentiating the product
from competitor products in the marketplace.

Business organisations will use branding to build up brand loyalty.
Brand loyalty is where consumers are satisfied with their purchase of
a specific product, and will likely to return to purchase it again in
the coming future.

Branding is often classified into three categories: manufacturer
brands, own-label brands, and generic brands. Manufacturer brands are
brands which relate the producer with the specific product. Examples
of manufacturer brands include Kellogg’s cornflakes, Nescafe coffee
and Heinz baked beans. Producers will be heavily involved with the
promotion of these products.

Own-labelled brands are owned and controlled by retailers. Examples of
own-labelled brands include Tesco, Farm foods (ASDA), Sainsbury’s own
label, etc. the disadvantages of own-labelled brands are, producers
and manufacturers not related with the product, or involved in their
promotion.

Generic brands have no identifiable name or logo. Examples of generic
brands include plain T-shirts or bin-liners. These brands only exist
at the lower end of the market, with respect to price and quality.

A successful brand can be defined as the following: ‘A successful
brand is a name, sy...

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