A strong brand is now seen askey to commercial success by providing the following main advantages:
- high brand equity
- increased product awareness levels
- the ability to charge a premium price
- reduced susceptibility to price wars
- competitive edge
- a sound basis for building strong customer relationships
- higher likelihood of repeat purchases
- retail leverage
- new products have a better chance of success thanks to the brand name
Whilst the above are the main advantages there are others and the exact mix of advantages will depend on the context of the brand-product-market environment on a case by case basis. It will also depend on the investment made in building-up the brand; in order to be strong and benefit from the above advantages a brand has to be crafted, designed and invested in. It is not enough just to attach a name and a logo to a product and as with products unless they are developed and adapted, brands tend to decline over time. They must be nurtured and carefully managed or they become unfit.