Importance of Branding - Essay Example

The business brand is therefore of great importance to the company since it communicates information about the company and its products to the market. Branding is of great importance to a company since it authenticates a company’s mission, core values, and strategic priorities. Moreover, it helps to clarify the position of the brand in the marketplace as well as influence behavior and create brand enthusiasm. It furthermore operationalizes strategic plans of the business (Gert-Jan Web).

Branding helps in promoting the cost of the company's product, packaging, promotion and advertising strategies, and supply channels. Branding, therefore, assists in establishing a product identity and gaining recognition in the market. A well-established company brand will gain a competitive advantage over other products in the market. Branding also helps in building customer loyalty as well as aligning the internal culture and external reputation. However, this can only be achieved through consistently reinforcing the brand to gain a positive response from potential customers. Branding can also be used to attract new customers to the product through aligning verbal and visual identities (Vaid 8).

Branding is also important since it allows users to form an opinion regarding the brand and a brand preference for the product. Moreover, branding is much important since it helps in creating real value for the company and its product. This measure will help eliminate previously perceived misconceptions about the product and the image of the company, therefore, creating a new perceived value in the eyes of the product users (Hasanali, Leavitt, and Williams 7).

Moreover, branding helps in creating intellectual property also known as trademarks which can increase the value of the product to the potential customers. This will also allow the product developers to retain control of the way they charge for their product and how it is utilized. In addition, branding is important to companies since it helps build brand associations. Brand associations can be defined as emotional bonds, which tie the brand name to the target self-image (Healey 5).

An additional importance of branding is that well promoted and well-developed brands make product positioning easy and effective. This is because, upon exposure to a product either through hearing or through seeing it, the targeted audience forms up mental images of the benefits they derived from the brand. This forms a great advantage to the brand owners since the brand will now form a competitive advantage. Moreover, companies with a strong brand image can add a new product to the already established brand. This created situation may let businesses introduce new products more simply as the brand is now recognized within the market. Consequently, strong brands can benefit from the financial advantages that result from the concept of brand identity, where the brand itself turns out to be valuable. This benefit results from the outright sale of the brand or through licensing arrangements.

Oreo Cookie Company is one of the most popular cookie companies in the world. The firm was established in 1898 and has gained a presence in different parts of the world such as Canada, where the parent company is located, India, America, China, Argentina, Mexico, and many other countries. Nabisco food division of Kraft Foods manufactures the Oreo brand in the US. It was introduced in 1912 and has since then established itself as the leading cookie maker in the world. Several factors have made Oreo cookie the leading brand in the world. The company has a well-established logo that differentiates the company from other brands elsewhere. It also has a strong presence in all parts of the country as well as other nations outside the US especially in Canada where it was established. The company also has continually improved the quality of its products thus attracting many different customers. Moreover, the company has set brand standards for their products, which contributed to achieving its demanding quality, therefore, attracting more customers. The above elements have enabled the company to achieve a strong unified and visual presence from its customers and attract other different customers (KraftFoodsCompany Web).

Olay is a cosmetic brand that has a strong visual presence in most parts of the world. The brand began its production in South Africa and established itself as the leading cosmetic brand in the world. The company has rebranded severally and is known by different brand names in different countries. It began as “Oil of Olay” in South Africa, but it's also known as “Oil of Ulay” in the united kingdom, and “Oil of Olaz” in many European countries. The brand is a subsidiary of  Procter & Gamble Company  (Livestrong Web). Another major cosmetic company that has a strong visual presence in the world is L’Oreal. This brand is produced in France and it’s the most sold-out cosmetic brand in Europe. The brand has established itself from the distinguishing logo and its high quality of skincare  (Hoover's Web). Read More