Strategic Benefits of Branding

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Marten van der Zee
Analyst, Netherlands
One of the major questions regarding establishing a proper branding strategy is: First, should we establish our own brand names or should we engage exclusively in reseller brands (private labels or own label brands? This question is highly important for medium-sized companies, because they sometimes prefer to sell their products without their own brand due to limited resources and specialized knowledge. However, there are considerable benefits to having your own brand: RECOGNITION, CREDIBILITY, CONFIDENCE at customers CONSISTENCY of brand name LOYALTY: Branding gives company an opportunity to increase customer loyalty and profitability. IMAGE: Strong brands increase corporate image, thus easier to launch new brands and obtain more acceptance by distributors and consumers. BRAND EQUITY SEGMENTATION: Branding helps the company to segment markets. LEGAL: Brand name and logo of the company provide legal protection of unique product features, which the competition seeks to c (...) Read more? Sign up for free


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