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Why brand matters for enterprises?

Why brand matters for enterprises?

Brand distinguishes a product from many other homogeneous products. People can easily choose a specific product from a crowd of products by dint of the product’s branding. Branded products make difference in price, quality, prestige and satisfaction. It matters for both consumers and enterprises. For enterprises a ‘brand’ matters for charging premium price and more profitability.

If I go for providing examples of how brand matters in charging premium prices in Bangladeshi market, I can show many examples of different product categories from different industries. But, here are some examples of Apparel industry’s products about how brands differ in same quality products and how these products can appear differently to the consumers in case of pricing:

01. Aarong, Grameen Check or Khadighor: Consumers are now enjoying buying clothes from Aarong which offers clothes in comparatively high prices. But same quality/standard product is sold in lower prices at Grameen Check/khadighor-Comilla. This happened due to branding of Aarong.

If you search for a shirt (man’s ware) from Aarong it will cost about 500 Tk. On the other hand a shirt of same quality fabric from Grameen Check will cost about 350 Tk. But, if you buy this same shirt from Khadighor-Comilla it will cost about 200 Tk. Here depending on branding prices varies where product quality is almost same. Outlet designing cost, packaging-tags and customer services make different one from others.

Aarong spends much money in packaging, advertising and outlet managing and thus they crated themselves as a brand and consequently can charge higher prices. Where, Grameen Check spends a little for advertising and packaging and Khadighor spend nothing for these. Consequently, they become weak brand and can’t charge higher price.

02. Raymond, Chinese non-brand, Islampur-Dhaka non brand market: Raymond, an Indian brand, is sold its clothes in premium prices in Bangladeshi market. But, Some Chinese and Bangladeshi clothing stores provide same quality fabrics but these are sold in lower prices.

If you want to buy a pant piece (man’s ware) from Raymond, it may cost about 1300 Tk and if you want to buy Chinese cloths from usual clothing stores it may cost about 800 TK. But, if you go to Islampur, Dhaka to buy a cloth of same quality it will cost about 350TK.

Why big price differences exist? Because Raymond spends a huge amount of money for branding through advertising, packaging and outlet designing activity, while the others don’t spend any penny for branding.

(Someone of you may argue with me and may say, you won’t get same quality fabric from Islampur market or usual clothing stores. Here, I will say, if you become an existing consumer of Raymond actually you engrossed in it and its branding helping you to make it different from others, nothing else. It’s the brand’s strength!)                

03. BangaBazar, Nitto Upohar, Westecs: You might have been heard about Bangabazar where export quality products are sold literally in lower prices. If you want to buy a T-shirt (man’s/woman’s ware) from Bangabazar it will cost about 100 Tk and if you want to buy the same quality t-shirt from Nitto Upohar it will cost about 170 Tk. But, if you buy the same product from Westecs it will cost 450 Tk.

 Here, price differences exist because BangaBazar has little Outlet managing cost as well as no advertising expense but Nitto Upohar pays a little amount of money for packaging, advertising and Outlet Managing. Comparatively, Westecs bears huge outlet and advertising expense; consequently all such cost made it as a brand and allows it to charge higher.

Means of product Branding in Apparel Industry: Product Quality, Advertisement, Promotion, Outlet Designing, Packaging and Customer Service.

If you are Apparel Marketer what you need to do to make a strong brand: In clothing market new brands can be built considering important decisions in:

  1. Quality fabric
  2. Variety of design/innovative design in products
  3. Well finishing
  4. Extraordinary tag with detail information
  5.  Premium showrooms in exclusive places
  6. Ads in exclusive magazine/ newspaper/billboard

Moral: Only product quality can’t make brand, its packaging, advertising, outlet designing, customer service can make it as a strong brand. To charge higher a product should be branded.

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