What is a Brand, and How Does it Work?

Product Vs Brand

A product is something that is made in a factory, grown on a farm, or caught in the ocean; a brand is something that is bought by a customer. A product can be copied or sold in equal form by a competitor; a brand is unique. A product can be quickly outdated or its market quickly saturated; a successful brand can stand the test of time. Think Coke (a strange black fizzy drink, a cola, made by hundreds of other companies); think John West, and the list goes on. This module is all about how food and agribusiness manufacturers must understand the power and advantage of the brand (it’s not as easy as it first seems, particularly in the food business).

Why Do We (Consumers) Need Them?

Customers:

• Have too much choice;

• Have too little time;

• Are too lazy to do a full information search, evaluation of alternatives; and

• Are reassured of quality from past experience, especially for intangible items.

  Brands make our lives easier! (they save time, minimise risk, simplify choice)

Why Do Manufacturers Need Them?

Producers and retailers have:

• To identify the maker;

• Simplify product handling and distribution demarcation;

• Be aware of legal issues and protection of IP (copyright and patent infringement);

• Create barriers for competitors who want to copy their success; and Establish ongoing relationships with the customers.