Question

Answer the following question.
JTM Ltd. launched 'Buddy line', an exercise book and comprehensive stationery brand name comprising of ball pens, gel pens, and geometry boxes after identifying the target market and understanding the needs and wants of the consumers of that market. All their products were of good quality and eco-friendly but expensive. They wanted to distinguish their products from that of their competitors. They spent a lot of effort, time, and money in creating the brand name, as they knew that without a brand name, they can only create awareness for the generic products and can never be sure of the sale of their products. The effort paid off and the demand for the products started growing. The customers liked the brand and became habitual to it. They did not mind paying a higher price. Over a period of time, it became a status symbol to buy the 'Buddy line' brand because of its quality. The consumers felt pride in using them.

Explain the advantages of branding to the marketeers highlighted in the above case.

Answer 1

The following advantages of branding are being discussed:

1. Branding enables a firm to clearly distinguish its product from the product of other firms.
2. Branding enables consumers to clearly distinguish the product from various other available products. Consumers see a good brand as a mark of authenticity and genuinity.
3. Good branding helps in creating loyalty and habituality for the product among the customers. The firm can take advantage of this and charge a different price (generally a higher price) for its product. Also, a good brand name helps in providing an initial boost to the demand of the new product.
4. Established and famous brands act as status symbols for the consumers, thereby providing them psychological and social benefits.