A brand is believed to be the intangible asset and yet the most valuable asset of the company. Every year millions of startups are set up every year that roughly constitutes to about 3-4 startups are set up every second. Now, you might be wondering what happens to these startups. Almost 90% of these startups fail, and a majority of those that survive are not able to create a brand name for themselves.
Having a strong brand identity is quite necessary to have a successful business. A strong brand identity helps the business in many ways. Here are some of the ways in which having a brand identity can help you in the long run.
Helps influence customers
Having a brand name helps influence the customers. Even the dedicated customers of your competitors on hearing the positive reviews of your products may tend towards your product and give it a try if you have a good brand name. In some of the cases, these act as replacement options to the original products. For example, Let’s consider that you are planning to have a sip of Coke and you cannot find one. If you are provided with two alternatives, i.e., Pepsi and an unknown product. A majority of the people will opt for Pepsi as it is quite a reputable brand and has created a name for itself. Even the users who have no information about the quality of Pepsi will opt for the same as they have an idea that these are quite similar.
Builds Loyalty and Trust
A strong, unique brand image is an essential part of building a good relationship with customers. If they feel that you both share the same values, they’ll be attracted to your brand and will likely feel comfortable choosing you over the competition.
Helps extend the business
The brand name also helps in extending the business. Any businessmen wish to expand their business and want to reach a large number of people. The brand helps you to achieve this goal as using this helps you to reach a large number of people. A number of other big and small business want to become a part of your business. This can help you to extend your reach to different areas. This further increases your sales and provides huge benefits. McDonald’s has been able to open their chains in different parts of the world. Not only that, but they also pay a certain amount of fees and make arrangements of the location for the same.
Increase in sales
With the increase in the brand name, the sales increase rapidly as more and more users come to know and believe in the services provided by the organization. Along with the same, it also helps to reach a large number of people thereby leading to the increase in the number of sales. This helps increase the revenue of the company and helps in further growth.
Creates an identity bigger than the person
A brand helps you to reach a large number of people and is always bigger than the identity of a person. Let’s undertake the example of Facebook and Mark Zuckerberg. Both of these are quite popular. But even normal Facebook users or nonusers know about Facebook even though they might have no idea of its founder. Only a few dedicated users know about Mark Zuckerberg. The identity and the popularity of the same can also be attributed to Facebook. Hence the brands help you to create an identity bigger than the person. This, in turn, makes easier for the person to get identified with a brand.
Increase the worth of the company
In the terms of accounts, the brand of the company is an intangible asset and yet is the most valuable one. The company has a good brand name has more worth than a similar company with the same resources available at its disposal. Let’s take the case of WhatsApp. In this case, similar apps have not been able to get such acquisition amounts even though they had similar hardware and software resources. It is because of the brand name of WhatsApp.
As we have come to know the benefits of having a strong brand name and hence conclude that it yields better returns. Now a major question arises, how to create a strong brand name.
