As you walk around the streets of Thamel or Khicha Pokhari, you are barraged with a countless number of hoardings of shops and businesses. There’s at least two for every block. How many do you remember? How many do you trust?
Branding helps businesses to differentiate themselves from all the other run off the mill companies and products.
Mr. Saurav Raj Verma, Cofounder at Aparajita Group, shared valuable insight on the importance of creating a brand for the budding social entrepreneurs at BLincubator. We bring to you excerpts of his session through this blog
So, what exactly is “brand”?
By definition, a brand is the perception of the company/product/service in the mind of the customer. It is an image that the customer has created. The definition of the brand can be categorized on three different levels. As such, the creation of a brand is a long term process which can often be expensive.
Levels of Branding
- At a surface level, it is the awareness about the product or an organization. What are the names that pop in your mind when someone says, ‘toothpaste’, ‘mobile phone’, and ’noodles’?
- Go deeper and it’s more about making an emotional connection with the product/service/company, it’s how you feel when you are using that expensive iPhone, it’s what makes you wait and not purchase that bottle of cola , it’s what makes you go to that specific shop even though there are several around it.
- Ultimately, it the trust for the product/service. You know you can count on that product; it will satisfy your needs and you know that it will give you the highest form of satisfaction from its competitors.
Have these ever happened to you? If it did, congratulations you just are a brand loyal person.
Why create a brand when it requires so much effort and costs you money?
Simple and direct, the brand gives you power, money, and connections. Once a product has had a positive brand image for a customer, the customer will trust that product. This might lead to decreased bargaining from the buyers due to their trust.
E.g Despite the tragedy with Samsung Galaxy S7, people didn’t stop purchasing other models. Due to the overwhelming brand image, the sales of Galaxy S8 was unfazed, even being the most pre-ordered smartphone in South Korea with more than a million pre-orders. Now, imagine if that wasn’t Samsung but any other new market entrants.
When a company or a product becomes a brand, it gives you a pathway to charge a premium price increasing the overall revenue and profit. We have our evergreen examples of Samsung, iPhone, Harley Davidson. This is because once a brand is maintained; the company is not selling the product, but the values that are emotionally committed to the customer.
About the Resource person :
Mr. Verma co-founded Aparajita Group (APG) with the vision to work as a professional Brand Engineer. He has also worked with several domestic companies like the local banks, colleges, Hospitals as well as multinational companies like TATA, Mahindra, Eicher in their branding and marketing communication domain in Nepal.
This article is part of the BLincubator series that will be published each week. It summarizes key learning from the training sessions of the program.