The Pros and Cons of Branding

Advantages and Disadvantages of Branding

According to the Heinemann AVCE in Business, ‘brand is a particular

product or characteristic that identifies a particular producer’.

Branding is one of the common methods of differentiating the product

from competitor products in the marketplace.

Business organisations will use branding to build up brand loyalty.

Brand loyalty is where consumers are satisfied with their purchase of

a specific product, and will likely to return to purchase it again in

the coming future.

Branding is often classified into three categories: manufacturer

brands, own-label brands, and generic brands. Manufacturer brands are

brands which relate the producer with the specific product. Examples

of manufacturer brands include Kellogg’s cornflakes, Nescafe coffee

and Heinz baked beans. Producers will be heavily involved with the

promotion of these products.

Own-labelled brands are owned and controlled by retailers. Examples of

own-labelled brands include Tesco, Farm foods (ASDA), Sainsbury’s own

label, etc. the disadvantages of own-labelled brands are, producers

and manufacturers not related with the product, or involved in their

promotion.

Generic brands have no identifiable name or logo. Examples of generic

brands include plain T-shirts or bin-liners. These brands only exist

at the lower end of the market, with respect to price and quality.

A successful brand can be defined as the following: ‘A successful

brand is a name, sy...