why do brands matter

Why do brands matter?

Presented by:Nahid Al Sharhad (2010-1-10-220)Faria Reza (2010-1-10-207)Chowdhury Fahmida Jannat (2010-2-10-147)Sanjida Noor (2010-2-10-114)Akram Hossain (2008-2-10-257)

WHY DO BRANDS MATTER TO CONSUMERS

Help buyers identify the product they like or dislike

Helps buyers evaluate quality of products especially if unable to judge a products

characteristics

Brand helps to reduce the time needed for purchase

Brand helps to reduce buyer’s perceived risk of purchase

Buyers may derive a psychological reward from owning the brand

WHY DO BRANDS MATTER TO MANUFACTURERS

Brand identifies the companies products making repeat purchase easier for customers

Around the world, the average person consumes a Coke product every four days

Coke sells 1.7 billion servings per day in over 200 countries.

Brand helps form introduce a new product that carries the name of one or more of its existing

products

APPLE released iPhone in 2007, which was a huge success for the company.

Legal Protection

Apple sued Samsung for copying its design– Apple Won $1.5 Billion in compensation.

Firms may be able to charge a premium for the brand

Starbucks coffee can charge a higher price than a same quality non-branded coffee because of their brand

Differentiate product offering from competitors

Pringles differ themselves from their competitors in terms of taste, looks and packaging

Easier cooperation with well known brands

Tata Motors acquired the Jaguar and Land Rover businesses from Ford in 2008 and made huge profit. Sales of TATA automobile went up to 4% in the last fiscal year.