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September 19, 2011, The Strategist. Marking the largest selling instant noodle Maggi’s 25th anniversary in the country, it invited diehards to write in about the brand meant to them. The entries indicated “for a mother Maggi meant an ally; for a student in a hostel it meant a midnight snack.” Some of these stories were picked up and splashed on Maggi’s packiaging.(a) Distinguish between brand loyalty and brand equity. (b) How does a brand become famous? Explain with the help of an example. (c) Examine the advantage of Branding. (d) “Brand name should be selected with utmost care.” List the essentials of a good brand name

Answer»

(a) Brand loyalty means that some consumers continue to prefer a brand due to faith in its superiority whereas the power and value which a brand add to the product is known as brand equity. 

(b) Various methods that has been adopted by Manufacturers for brand promotion are: 

1. Advertisement: Regular advertisement in newspapers, radio and TV and other media are given to make a particular brand well known among consumers. 

2. Quality Control: Brands become popular if the quality is well maintained. 

3. Publicity: Publicity means any commercially significant which has no sponsor for eg. Mass media such as newspapers and television gives news and views about an organisation and its products in such a ways that the image of the organisation gets enhanced. Due to repeated advertisement, quality control and publicity, brands like Lux soap, Colgate toothpaste, Coca-cola etc. have become so famous. 

(c) Advantages of Branding: 

1. It saves time and efforts of consumers as they can identify and recognise the product to be purchased. 

2. Branding is the basis of advertising and other techniques of mass selling. 

3. Branding helps to minimise selling cost by reducing dependence on middlemen. 

4. Branding insures uniform standards of quality and designs to consumers. 

5. Branded products are invariable packed which prevents adulteration and helps to prevent adulteration and helps to preserve the quality of the product. 

(d) Essential of a good brand name are: 

1. The brand name should be brief and simple. 

2. It should be easy to pronounce, spell and remember. 

3. It should be attractive and appealing. 

4. It should be distinctive and difficult to imitate. 

5. It should remain constant for a reasonable period of time in order to gain popularity. 

6. It should be capable of registration and legal protection.



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