Breaking the mold:
Imagine your teenage son came home wearing the very latest fashion item in hip-hop fashion – from Kanye West’s new line of “luxurious” clothing. How proud he is wearing it!
Hans Christian Andersen is smiling down at you and you realize your mouth is open. Your smiling young Emperor is standing in front of you in what looks like his undershirt.
It is a plain white T-shirt, and it only cost $120.
Well, imaginary lucky parent, just remember, he could have chosen the $480 plain white T-shirt from Dior Homme.
What is this all about?
The power of brand!
Before you protest too much, look in your own medicine cabinet. Do you have any branded over-the-counter meds in there? If so, you probably paid a 300% premium. The average consumer is more likely than doctors and nurses to buy branded over-the-counter medications.
We live in a branded world now. There is no getting away from it. From staples like gas and bread to luxury items, brands are everywhere. The good ones are so appealing! Irresistible even.
FACT: A powerful brand is more profitable. (see What is Your Brand?)
- It commands higher prices
- Customers seek them out
- Customers are more loyal
- Competitors lose their relevance
….. compared to what?
Compared to a business or a product that is not well branded.
“People feel better about themselves when they take a Coca-Cola off the shelf than when they take a generic grocery-store soda, even though they are both just brown water and sugar. Emotion must be evoked for a brand to really stick.”
~ Robert Sprague, chief executive of PCI Communications
Brand is far more influential than price – by a huge margin!