Branding Archives | MoneyDigest.sg

Starbucks is not the best coffee in the country, but a cup of their coffee or two can make a person happy. Toyota is not making everyone’s dream car, but it is known to be safe and reliable. Apple iPhones are not the most advanced phones in the market. However, people clamor for its new releases. Carrying an iPhone became a status symbol. These situations highlight the power of branding.

WHAT IS A BRAND?

A brand is more than just a name! It is a culmination of a consumer’s experiences with a recognizable product. Branding makes your products stand out from the rest. With the right strategies, a brand is powerful and can often lead to competitive advantage. You see, a brand develops loyalty among consumers. People are more willing to pay more for their preferred brands.

WHAT IS A LOGO?

A logo is the pictorial persona attached to the brand. It is one of the key elements that help build a trustworthy relationship between the product/service and the target audience themselves. A good logo is memorable, functional, and meaningful. Your logo must reflect the concept of your products or services. Moreover, the logo must include both the visual and conceptual values of the brand.

If a logo is not memorable, the consumers can dissociate it with the brand. For instance, we all know that a big checkmark is associated with Nike and its slogan: “just do it”. Design and branding consultants can help you develop an efficient way to communicate your brand to your target audience. This includes logo design.

HOW CAN INVESTORS PUT VALUE ON A BRAND?

Although brands are valuable to companies, brands are still considered among the intangible assets. Investors can put value on a brand by using these three main approaches.

#1: CALCULATE THE BRAND EQUITY OF A COMPANY

One of the simplest ways to put a value on a brand is to calculate the brand equity of a company. Take a firm’s enterprise value and subtract the tangible assets and intangible assets that can be identified (e.g., patents).

#2: FOCUS ON THE PRICING POWER OF A COMPANY

The next approach focuses on the pricing power of the company. Investors want to know how much of a premium the company can charge above its competitor’s product. To give the annual figure for how much the brand is worth, this premium can be multiplied by the units sold.

#3: COMBINE DIFFERENT APPROACHES

Perhaps the most time-consuming approach is to combine the above approaches with the proprietary measures of brand strength, the role of the brand in consumer decisions, and more. This comprehensive approach may not be practical to individual investors.

HOW ARE BRANDS SHIFTING NOW?

Creating a significant connection with people is essential for all organizations and a brand can embody attributes which consumers will feel drawn to. In the last several years, brands have become more visible through social media and other digital platforms. The consumer’s voice is louder and much more public now. There are even websites dedicated to championing the views of the consumers (e.g., TripAdvisor and Yelp).

Image Credits: pixabay.com

Consumers can easily publish their experiences about a certain brand with a few taps on their mobile phones. This amount of convenience can either tarnish or help your brand. Fortunately for you, you have the ability to respond to feedbacks and reviews. Responding to these can have a profound effect on how your brand is perceived. Take some time to think about your responses.

Sources: 1 & 2

Whenever you are out to shop, you see wonderful colors from the lightest to the darkest shades. The sale signs are bright red, the shopping bags are shocking yellow, and the labels are resonating the rainbow. Did you know that these colors are strategically placed to influence the way you spend?

Colors can impact one’s spending because the sight of it automatically stimulates you and increases your memories, color-motivated behaviors, and social influences. Here are three situations when color significantly affects your finances:

1. RIGHT SHADE FOR YOUR CAR

Burgundy is a shade of red that is often associated with wine. Cars with this color are usually more expensive that their white counterparts as burgundy exude luxury and refinement. Furthermore, red is a difficult color to see at night when people’s visions are somewhat distorted. Be careful as this may lead to involvements in accidents.

On the other hand, a white colored car has numerous benefits.

But before discussing this, I must acknowledge the existence of the age-old debate of whether white and black are colors. According to the available online resources, white is an achromatic color composed of all the frequencies of the light of the visible spectrum. While black is a color when you are referring to the coloring agents of tangible objects. For example, if you combine the primary colors using paint, you would get a shade of black.

Going back to white as a color for your car…light colored cars have better petroleum mileage because you can stay cooler without the use of air conditioning. Painting your car white can instantly lower the interior heat. Also, it is easier to see by other drivers at night.

2. ATTRACTIVE PACKAGING OF BEAUTY PRODUCTS

You enter Sephora and you see their in-house brand of lipsticks in sleek black tubes. Don’t they look expensive? Even if these lipsticks cost less than other brands they seem more upscale because of the color they come in. In packaging, black signifies sophistication.

Image Credits: pixabay.com (License: CC0 Public Domain)

Another color that can push people to spend more on beauty products especially the anti-aging ones is purple. Purple signifies royalty. This is why people are often convinced that there really are special properties inside the “purple box” and they are willing to pay more for it.

3. APPETITE-ENHANCING COLORS

From the logos to the interior, two colors seem to stay at almost every fast food chains. These two colors are red and yellow. Red and yellow stimulate appetite, which probably explains why your stomach starts to make noises as soon as you see the yellow arches or the red logo. And, you cannot resist spending more inside.

Image Credits: Mike Mozart via Flickr (CC License)

Interestingly, you can combat how colors affect the way you eat by controlling your own plate. Researchers at Cornell University found that when they reduced the contrast in their plates and tables or in their plates and the food itself, people tend to serve themselves less food. For example, to eat less, pair your white plate with your white table-cloth or a blue plate with a blue table-cloth.

Sources: 1,2, 3, & 4

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