The importance of brands and branding is to develop a product that meets the consumer expectations. One of the very good brands out there will be Coca-Cola. Let's use Coca-Cola as an example for this topic.
Firstly, look at this company, the values it holds. The share owners of Coca-Cola actually have an equity of nearly $ 21.175 million. When we say equity, it actually means the net assets value of the company. Brands must have more value than its physical assets. However, where does the value comes from? The value normally comes from the investors. Their expectations on how much profit the company can help them make. And the profits greatly depend on how much the brand name can help the company to achieve.
For Coca-cola, other drinks which contain the same ingredients as Coca-Cola but was sold under a different brand could not have achieved the same amount and profits that Coca-Cola did. The word Coca-Cola has become so embedded in consumer hearts that when they order drink they can simply just said out the word "Coca-Cola".
In order to build a strong command in your brand, consumers' minds can play a major part. Like Coca-Cola, they might have built their brand through advertising. But we all know that advertising alone could not have allowed a poor product to remain in the market. Instead only a product that meets consumer expectations will remain in the hearts of the consumers.
Coca-Cola would have sent lots of money in doing market research such as to find out the tastes that drinkers love in carbonated drinks. From the wide range of drink Coca-Cola has, we already can tell how much effort they have put in.
Lastly, people got for brands because they do not want to take the risk of spending their money on a product that will not satisfy them.
