Are brands valuable assets?
What is a brand and what is branding?
A brand is a name or logo which identifies a particular product of the brand owner.
Sometimes a brand is also used to promote the overall corporate idemnity of the brand owner – particularly where the brand name is connected with the owner's name, or to identify a subsidiary brand name for specific products within a particular range. In addition, "own brand" products (often not manufactured by the brand owner) are becoming increasingly popular, and many chain stores use their "own branding" on many popular products. But branding is not just about using names or logos. The public may also come to recognise a brand through a punchy slogan, its comparisons with other competitive products, or by the use of distinctive packaging (the "get up" of a product), for example, the unique shaped Coca Cola bottle.
Are brands valuable assets?
Yes, increasingly so. "Well known" brands often take a considerable amount of time and effort to devise, and are expensive to make popular with the public. A brand usually only becomes recognisable through extensive use and promotion, and almost all advertising has the purpose of publicising a brand name.
Once a brand has become "well known" – assuming publicity about the brand is good – it can suggest to consumers a particular level of quality. It can therefore form a substantial part of a brand owner's goodwill. This is because it is a product's brand name (often along with the brand owner's corporate identity) which leads to public recognition and hence sales. Therefore, many brand owners will go to considerable lengths to protect their brands.
