Hot Topic of the Month - July
Having a brand for your company can increase your margins. Even in a recession.
Consider this fact: Direct Line Insurance have calculated that their brand can
command a premium of up to 19%. In plain English what this means is that if Joe
Public has two insurance quotes, one from a company he has never heard of quoting
£400 and one from Direct Line quoting £440, he will chose Direct Line, even though
it is more expensive because it is a brand he has heard of and one which he trusts.
He will do this up until the point where Direct Line is 19% more expensive, at
which point he will risk the lesser known brand.
Now translate this for your business. Suppose you run a legal practice in Leeds
and you quote £1600 for a project. Another practice quotes £1500 and a third quotes
£1750. Who gets the contract will depend upon your brand equity.
Why do people buy Starbucks coffee when a mug of coffee is cheaper around the
corner? Why do people pay £90 for Diesel jeans or £70 for Levis when Primark sell
jeans for £12, Tesco for £5 and Asda for £4? Because the brands have a value,
and people buy into a brand they like, respect and trust
If your brand value is poor or non existent, you can do something about it, regardless
of your size. Brand management and marketing communications consultancy Creative
Marketing Services will show you how. You can contact Andrew Batty on 0113 287
7973 or at andrew.batty@cmsadvertising.co.uk
Met Club member Andrew Batty has run Leeds and London based Creative Marketing Services for 27 years. He also writes the business marketing page in GC Magazine
Harrogate