Brand Warfare

The Power of Brands

Brand image has great selling power. It can turn an ordinary commodity into a valuable product, as Orville Redenbacher did when he turned his popcorn into a premium brand and persuaded consumers to pay more for it. The John Hancock company similarly took a sleepy old brand of insurance and turned it into a more appealing product for consumers - an appeal that carried over to its investment products.

The power of branding is reflected in a company's value. According to Interbrand, which annually ranks the world's most popular brands, 51% of the Coca-Cola Company's value is due to its brand name. The importance of branding goes beyond business. Even movie stars think of their names and images as their brand.

A brand is how consumers think of your company or product when they hear its name. Their perceptions come from many sources, from Internet rumors and TV reports, to their own customer-service interactions. To control these perceptions, do everything you can to support a favorable brand image. Think "brand" whatever you do, including decisions about cutting back on customer service, expanding into new markets or sponsoring a local event. ...