Turn Setbacks into Setups
Are You Paying Just For The Name?
May 24, 2019
Your name is an extension of your brand, so it plays an important part in either reinforcing or weakening your products’ value. A good name can create buzz, establish you as a leader in your field and help differentiate your product and services from those of your competitors. In contrast, a weak name – or no established name – can work against your efforts to build your position in the market, can lead to trouble generating interest in your products and can limit your expansion opportunities. Let’s take a look at how branding works in the food industry to help your team create a strong brand that effectively conveys the quality of the products and services that you provide.
Branding in the Food Industry
When you look at the aisles of a grocery store, you see choice after choice of similar products – from popular name brands to generic products to private labels – all boasting about what makes them distinctive. But, how different are these products really?
In answering that often-asked question, it’s best to first understand a little bit about how the food industry works. First, many national brands all source their ingredients through the same wholesale providers. As a result, more often than not, competing products are made up of the exact same ingredients. Second, oftentimes private label or generic brand products are made in the same location as a national brand and are simply packaged differently. For example, a number of large grocery-store chains work with manufacturers to create a store-brand, which is then made in the same factory as the name brand. The result is that despite different packaging and branding, there are often very few substantive differences between well-known national brands, private labels and generic products.
The Significance of Branding
Given that many food products are very similar, what then accounts for the variations in price and sales of some products versus others? In many cases, this distinction can be explained through branding, which can have a significant impact on the consumer’s impression of a product and it’s value.
National brands invest significant amounts in their marketing, naming, advertising and packaging. The result is that consumers have certain pre-conceived impressions about these products as they stand in the aisle and evaluate which product to buy. As an example, customer surveys have shown that many consumers believe that name-brand products are healthier, higher in nutrients, made up of higher-quality ingredients and lower in sugar, fat and sodium than comparable generic products.
This is exactly what you want to do with good branding: differentiate your products and convey to consumers the value of them. Consumer trends indicate that a good name, selected and promoted as part of a brand strategy, can effectively do just that.
The Effects of a Strong Brand Strategy
While a strong name matters, it is simply an extension of your brand, which begins with a well-developed brand strategy. Companies with the most effective brand names start with a strong brand strategy and then work through an established process for coming up with brand name ideas. Some also use a brand name generators to help come up with an effective name. The most effective branding plans then use the name as part of a brand name logo and to help tell the company’s story to impart a sense of its value.
In the food industry, product packaging is one of the most important pieces of a brand strategy, as research indicates that consumers rely heavily on packaging when selecting products. Additionally, your product’s unique selling points are an especially important part of the strategy as a way to set your product apart and add to its value.
In an industry where so many products are similar and often made from the same ingredients, it’s especially important for companies to establish a strong brand strategy that conveys the quality of their products. While brand image includes brand name, the name is only one component of a strong brand strategy, which also consists of a compelling logo, packaging and unique selling points. In the competitive and highly saturated food industry, effective branding can be an essential component of establishing your brand’s value, separating it from competitors and ensuring the success of your business.