Strategic Benefits of Branding

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Marten van der Zee
Analyst, Netherlands

Strategic Benefits of Branding

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:
  2. CONSISTENCY of brand name
  3. LOYALTY: Branding gives company an opportunity to increase customer loyalty and profitability.
  4. IMAGE: Strong brands increase corporate image, thus easier to launch new brands and obtain more acceptance by distributors and consumers.
  6. SEGMENTATION: Branding helps the company to segment markets.
  7. LEGAL: Brand name and logo of the company provide legal protection of unique product features, which the competition seeks to copy.
  8. TALENT ACQUISITION: Attract talented people to join workforce.
Do any other strategic benefits of branding exist?

Kotler, P. (2003) Marketing Management: Analysis, Planning Implementation and Control. 11th edition. Englewood Cliffs, NJ: Prentice Hall.

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