Benefited by the Competitor’s Advertising
Very often I drive on a particular highway in New Jersey. I usually stop at a gas station to get gas for my automobile. It is not a very popular brand of gas, but consumers are attracted by their low prices. This gas station advertises its lowest prices at a high point where it is visible to the traffic passing on that highway. The electronic display board is clearly visible well ahead of the exit so that the drivers can have ample time to take the exit to this particular gas station. The business was going good for this place until a few days back.
Recently, another gas station opened right across this place. It is a popular brand gas and started to compete with the other gas station. The prices at the new gas station are a little higher than the older gas station. However, I noticed more consumers going to this new gas station as it is a popular brand.
The new gas station did not advertise anywhere but once the customers took the exit and noticed this new gas station they started going to the new place rather than the advertised gas station which made them come here in the first place. The reason for the customers patronizing the brand name gas station is due its “Branding”.
What is Branding?
One definition of Branding from the business dictionary states “The process involved in creating a unique name and image for a product in the consumer’s mind, mainly through advertising campaigns with a consistent theme. Branding aims to establish a significant and differentiated presence in the market that attracts and retains loyal customers.”
Good Branding wins the Competition:
Good Branding strategy will help companies beat the competition and get ahead. The main reason is customer loyalty and credibility. Branding will let the company attract consumers as it connects with the consumers. Branding will make a company’s brand to be chosen over its competitors. A strong brand will endure the competition. The brand will be a source of promise to the consumer. When a consumer comes across this company they are attracted to buy from it over its competitors.
One thing that happened recently is that this new gas station started to match the prices with the older gas station. The are selling the gas the same price as the other gas station. That’s a winning strategy showing loyalty to its customers.
They did not advertise, but attract the consumers based on their competitors advertising. Great success due to their Branding strategy.
Companies must pay attention to branding and must develop a solid branding strategy. This will give the company its identity. (Some examples that come to mind are Coca-Cola, Pepsi, Sony, Apple, Amazon, Toyota, Honda…and this list goes on and on and you can name them)
To succeed with good branding the companies must understand the needs of the consumer. This could be done by integrating the brand strategies with the public contact. This concept is very reachable in this age of Social Media using tools like Facebook and Twitter. Therefore it is important for the companies that would like to brand themselves to invest in research and build its brand. Good branding will make business get ahead in the competition and be a winner.