Monday, 28 November 2016 12:18

The value of brand building to a business

Looking out into the world today, it’s easy to see why brands are more important now than at any time in the past 100 years. Brands are psychology and science brought together as a promise mark as opposed to a trademark. Products have life cycles. Brands outlive products. Brands convey a uniform quality, credibility and experience. Brands are valuable. Many companies put the value of their brand on their balance sheet.

Why? Well you don’t have to look very far. When Tata Motors of India bought Jaguar and Range Rover from Ford, what did they buy? Factories? Raw Materials? Employees? No Goldman Sachs and Morgan Stanley helped Ford sell the brands to Tata for $2.56 billion, and the brands were worth more than all other ingredients combined.

Likewise, when Kraft bought Cadbury for $19.5 Billion what did they buy? The chocolate? The factories? The recipes? The candy makers? No they bought the brands.

The list goes on with many examples such as InBev acquiring Budweiser to add to their house of brands that includes Stella, Becks and Labatt. Or Geeley Motors of China acquiring cult Swedish Auto brand Volvo. Or Mahindra of India buying Ssangyong, Korea’s third largest car company.

Branding is fundamental. Branding is basic. Branding is essential. Building brands builds incredible value for companies and corporations.

If you are still not convincedArticle Search, let me give you another example. The dollar is a world brand. In essence it is simply a piece of paper. But branding has made it valuable. All the tools of marketing and brand building have been used to create its value.

Business and Finance

  • 1