Brands

In class we have been talking about branding. I think one of the most important accomplishments a company can make is establishing their brand. Once a company has done this they can rely on repeat customers, which is easier than trying to advertise for new customers. With an established brand customers trust the product and may be more willing to try other products put out by the same company. They are typically willing to pay more for the quality of the product they are buying. Establishing a brand mark can be even more powerful because millions know what a simple logo symbolizes. For example the golden arches of McDonalds. Every person in the United States over the age of 2 knows there is a McDonalds when they see the iconic arches.

How do store brands or no name brands still make a profit? Sometimes it doesn’t matter if you purchase the generic brand or the name brand depending on what you are purchasing. I also think in this economy more people are switching to the generic brands to save money. Once the generic brands are tried the consumer may realize there is little to no difference between the products so they will continue to purchase the product because it is much cheaper. Once the generic brand has been tried and is comparable to the name brand the consumer will be more likely the next time to try another product from the generic brand to try to save even more money. Walmarts generic brand Great Value is always cheaper than the other products and consumers consider the taste and quality to be basically the same as brand names for most of the items they are purchasing.

Do you think if the economy stays the way it is generic brands will again become more popular than brand names? Do you think some people are so loyal to their name brands that they will never try a generic brand? Do you think just because a product is brand name it has the right to mark up their prices?