Which name brings in the profit?
Is your name your brand?
Simon a distributor of pumps used in the construction industry experienced a sudden drop in sales when the construction industry slowed down. He continued offering services for maintenance and repair of old pumps to maintain goodwill in the market while he branched out into a new area of business.
We were working on Simon’s business plan when he remarked that his customers identified him personally as the brand name for quality products and excellent service. He added that most people did not even remember the name of his business.
In branching out into a new business Simon found that it was easier to rebuild his business around his personal reputation as a dependable business person rather than to create awareness of his new offerings under his business name as the brand. This is a case of the owner’s name being the brand and the owner’s positive reputation being associated with the brand name.
What’s in a business name?
From Winnipeg to Vancouver; from Hong Kong to Singapore; London, England and onward to Brussels I have always enjoyed the standardized quality of the burgers from this global burger franchise. The familiar taste and service in a new city is always reassuring.
Franchises succeed when the business name becomes the recognised brand that consumers associate with positive emotions and values. This encourages franchises to invest in quality products, consumer experience and community charity. A business social responsibility plan that promotes the business name can create a feel good with consumers.
Why invest in product names?
One particular toothpaste brand name is so popular in a number of countries to the point that the brand name has become synonymous with the product. By default we here consumers asking not for toothpaste but the brand name when requesting for toothpaste at the supermarket. All the other toothpaste brands appear to be generic compared to the leading brand in the minds of many consumers. This allows the leading brand of toothpaste to dominate the market and enjoy premium pricing.
The company that owns the toothpaste brand name is able to maintain this position in the market with generations of consumers by promoting dental hygiene campaigns in schools with free toothpaste and toothbrushes handed out to school children.
So, what’s in a name?
Many technology companies simultaneously promote the founding dominant co-owner, the corporate name and product name in association with their software. This has helped such businesses to sell software at premium pricing even in markets where free open software exist. In such a case are consumers paying for prestige when a free version is available? Or, are they paying for the service support that comes with the paid software?
Marketing and Branding
A recognised product brand name can be used to promote new products in association with the established name.
Issues that need to be understood in planning your marketing include answering the questions:
Does your product have a lock on the audience who need your product like a drug with a patent that excludes less effective competitors?
Is your product the key to competitiveness like a luxury car name bestowing an image that helps it pull ahead of the competition?
The lock audience needs the product while the key audience have a very strong desire for the product.
Branding is about developing emotional relationships with consumers that compel them to buy from you. Invest in identifying your brand and how it can be used in preparing your marketing plan and strategy for action.
International Business Consultant
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