Branding your product

It’s important to remember that your product needs an identity or in essence, a brand.  Branding is one of the most key components in your offering’s success or failure in the broader marketplace.  “A brand is the combination of name, words, symbols or design that identifies the product and its company and differentiates it from competition.”  Businesses use branding to market new products, protect their position in the marketplace, broaden their product offerings, and enter new product categories.

Why is branding key to the success of a small business?  First, it offers instant product recognition.  Second, it gives consumers confidence in the product your selling.  “Retailers like branded products because they make the store profitable - shoppers attracted to branded products spend three to four times more on groceries than do private-label shoppers.”

A brand is in essence your roadmap to financial success.  A brand provides a clear reason for customers to buy your product.  “If this reason does not exist, your product is a commodity and the only measure of value is price. Small, value added businesses cannot compete on price successfully and need to incorporate some form of differentiation.”

Additionally, a brand conveys value.  Consumers tend to perceive brand-name products as higher in quality and a better value than their non-branded counterparts.  “Generally speaking, the number-one brand in a category can command a 10 percent price premium over the number-two brand, and a 40 percent premium over the store brand. “

Most notably, a brand lends itself to brand loyalty.  If customers trust in your brand, they become attached to it and are less likely to switch to the competitor.  Certain products are like an old friend.  In my house, we grew up with Pepsi not Coke, Dove soap, Entemann’s cookies.  I am still loyal to these products today.  Why?  I don’t know?  Comfort maybe.  Why change when something is working for you?  My parents banked with CitiBank so I too bank with them.  Additionally, I always fly American Airlines.  I know JetBlue is a more popular alternative.  They offer television and more leg room but I grew up flying AA and continue to do so.  (It might also have to do with the fact that they fly out of La Guardia and that is my preferred airport but that’s up for debate).  People often don’t do well with change.  As cliché as it sounds, it’s also very true: “It’s hard to teach an old dog new tricks.”  Most notably, I’m a Blackberry customer.  Why boggles the mind.  I am constantly having problems with it.  I have to reboot my device at least once a day; the Internet is terrible.  I undoubtedly know that the iPhone is a better bet but I don’t want to give up the keyboard and so through faults and all, I remain loyal to Blackberry.  When trying to save money, however, I have ventured generic.  I remember the first time I ever went against buying the brand name product.  It was gut-wrenching.  I had serious doubts about whether or not the product would work as effectively and was a small drop in price worth the risk?   It’s that feeling of well, I’ve never tried it but know I won’t like it.

How does one go about branding a product?  A brand must be clear, specific, and unique to your product.  First off, find a name.  Choose one that is easily remembered and relevant.  Try not to be coy or overly cliché.  Experts recommend restricting the name to three words or less.  You don’t want to confuse consumers.  Secondly, develop a slogan – something catchy.  Again, limit your words here.  Keep the buyer in mind when creating a slogan.  What does it say about your product?  How does it differentiate you in the marketplace?  Why should they buy the product?  What will they like about the brand?  How does it compare to the competition?  Third of all, create a symbol or logo.  “It can be as simple as a geometric shape or as elaborate as a silhouette of a person or object.  Use the name, slogan and symbol on every piece of correspondence related to the product e-mails, invoices, letterhead, business cards, advertisements and promotions, etc.  This system will eliminate inefficiencies in creative and production fees and extend the branding process throughout everything you do.  In a sense, it will prevent recreating the wheel with each new media effort.”  Check out this article on the basics of branding: http://www.entrepreneur.com/article/77408.

There are many challenges in developing and building the right brand.  Coming up with the right name, symbol and slogan can be time-consuming and will take a great deal of effort and consideration.  It is often difficult to achieve initial customer recognition of a new product regardless of branding.  However, branded items are more recognizable and memorable so think critically and put in the time and effort required.  Remember, your product doesn’t live in a vacuum and is only as successful as the steps you take to make it so.

Until next time…