For any company its main focus is how to increase sales. Sales lead to increase in revenue and profit. Directors, managers are basically concern about how to increase their sales. Through this they can get strategic position. By using different ideas they try to generate more and more sales. Branding helps to increase to increase sales. For that let us know what actually branding is.
A specific way in which company conveys to customers what their product is for. If a product is having some specialty they can show it through branding. Branding is done in many ways.
- Advertisement on TV sets
- Online advertisement
- Suggestion to friend
- Creating blog
- Changing in packaging
- Creating logo
- Creating events to introduce your brand
And many other ways which company feels good for them. By branding the company can reach more and more customers. But what makes branding to get more customers and increase in sales? Well the answer is very simple.
Branding itself is a way to change the mindset of the people for a particular product. What customers think about the product? How do they perceive the product? Is the product for a group of people or not? These people could be targeted for increase of sales. Branding makes their product stand out from a group with special quality in it.
If you take example of a brand say Christian Dior. It’s a premium quality brand known worldwide. It is engaged in a business of luxury bags, clothing, accessories, cosmetics, etc. They are having perfection in the work they do. They deliver product which does not need much improvements. Much attractive and more feminine. These quality leads them to develop a brand for showing perfection, style, fashion resulting into distinct themselves from other products available in whole world market. This feature has a great impact on its sales. Following is a way branding helps to increase sales.
Sales through market Introduction
Branding helps the company to introduce their product in the market. Through advertisement such as online or banner or any other mode of communication to customers. They create ads and post them. While doing so the list out their unique name and what it stands for.
They gather plan to create a brand launch event. They prepare a list of features of what the product specialty is. They identify the target audience and develop ways to communicate about their product. At the event of launch they introduce the product in market. This is the first step towards branding.
There are after effect of brand launch. They get more people to know their product, this generates more leads. They collect data of launch events and by this they form a target group and type of audience interested in. By getting the details they can now promote the product and increase sales of the product.
For example, Nykaa was launched in 2012. It was the first to have its presence of cosmetics sales through e- commerce with premium quality products. Later after few years as the products quality was very good with wide range of beauty options. By this they became famous in no time. Within just 10 years of its launch they got top position in cosmetic segment in India.
By brand launch they got new way to introduce themselves and have recognition towards a group of people in particular region. This had an effect on sales of the product and then company move in further way by launching with different actress and making world know about them. Thus brand launch increased sales and revenue to the company.
Increase in sales by new idea implementation
One basic portion of branding is to convey customers what the company stands for. Every product in any segment has its own pros and cons. People worldwide always look for products that can have wide range of effects. Like for example Swarovski. Swarovski is a brand for jewelry, watches, crystals, accessories etc.
These crystals are always perfectly made with no bubbles in the crystals. They are not diamond but just made up of glass. Crystals are so designed that they look like diamond. With large variety of jewelry design option they become famous for what they offer to the world. They have innovation and technology in their products. They have a whole new idea of making crystal like diamond from glass with perfection. Many new designs are presented by Swarovski.
This conveys an idea of perfection, innovation and more fashionable product. When branding with the above mention parts is done, more people will know the brand and with this they try the product. Thus sales increases. By conveying customer’s idea of what they are and what they are and what they stand for leads to awareness and more sales.
Increase sales through presence in market
There are various modes of advertisement in which branding is done. Companies are always keen to market themselves. It won’t be that they market products for a month and not for other month. If this happen then there presence in the market will get affected. Some other will have competitive advantage and will take stage of their own. Thus brands are always looking for ways in which they can show the presence in the market.
This creates confidence to the customers, who are brand conscious and brand loyal. They will stick to their favorite branded products. Along with this they would refer to a friend. In this way by making continuous presence through advertisement events etc. they keep a track on sales.
Let’s look at the branding of Kalyan Jewelers. They have brand ambassador as Amitabh Bachchan. They have continuous presence in the market by branding themselves. Always up with new advertisement and different mode of achievement. They make a clear thought to customer that, they prevail in the market with highest standards. Not only loyal customers retain but new customers are also made as they switch from other shops.
This creates increase in sales. In order to have good sales brands endorse into continuous marketing. Brands here adapt new innovative ways to make customer feel they are up to date with new trends. Brands themselves have to keep on doing innovation in their products. They show this to customer and can get customer retention and increase in sales.
Sales by Uniqueness in branding
Every product differs in their own way of having something special in them. By this reason they have customer confidence and increase in sales. Branded products especially have in them some core values which make them different from others.
Rolex watches are world famous. Each Rolex watch is so perfectly design with valuable items used. Price of watches also appreciate and thus are worldwide famous. This unique feature is most essential for branding. It’s only through this, that customers buy their products from the other option available in the market. Sales of this brand are always up as a result of this unique feature.
Apple also is one of the most valuable brands. Unique feature of Apple which smooth working of products, technology driven, secure and reliable. By this uniqueness they make loyal customers. Apple products are always tested many times to attain perfection into it. They always embed latest technology features by which customers have a whole new experience of working with the device.
Security feature Is the most appreciated by the customers. All these are included in the Apple products. This values are embedded with the brand are unique and it is the foremost reason to have increase in sales of the product. Many people wish to buy apple phone so by applying different branding strategy they retain customer.
Renew product to increase sales
Branding help to renew the identity of the existing product in the market. Many a times it is difficult to bet the competition and sustain in the market. Many company struggles to keep themselves as a good identity in the market, especially in the segment where there are many options for the customers to buy product. The companies need to rebrand itself for their existence.
Even if it a 100 year old company they need new variation in their product. New packing style, new logo, new brand ambassadors etc, are taken into account to rebrand itself. If you take example of chocolate Melody. It is a Parle company product.
Parle Company is very old and it has product in different segments. It has Melody as a chocolate toffee. Earlier it use to come in red wrapper and was highly liked by customer. A new product came to existence, such as Eclaries, Alpenlibe, KitKat etc. Melody market had a huge loss. Then after a period of time they renewed the brand with different taste to the base one. Endorsed into advertisement and branded their product. As of now it has very good market with increase in sales, beating the competition.
So is the case with Godrej Company. Godrej is an old company with its product in different segments. Various international competitors emerged and sales were low of the company. There was a need to rebrand and make change in price and product. They did so; recreated logo and packaging and now they are again having good sales comparatively.
Increase in sales by brand proliferation
If a company has good knowledge of market and customer choice, they can go for brand proliferation. In brand proliferation a company has two or more products of same type. It is because they have variety in them. They want every type of customers to buy their products.
Various range of products such as premium to average price are marketed. Customers who buys average quality product won’t buy premium quality product. So to capture the whole market for a particular product brand proliferation is done.
Like Parle has Melody chocolate as premium quality for toffee and Mango bite for average price. Best example is Hindustan Unilever. Soap segment itself has so many varieties of products that customers will always be wandering which is best among the available. Product of one company only. A very tough competition occurs with other products and customers will always be seeking which is best among the available options only. By this sales of Hindustan Unilever will always be there. Thus brand proliferation helps to retain customers and have a good sales rate.
Branding is a valuable asset to the company. Branding is the foremost need to make companies get recognition of who and what they are. People buy products based on knowledge of different brands. With effective brand image they can get more and more sales. This in turn generates more profits which benefits the company.