Change can be good. As time passes, trends evolve, concepts are updated, ideas upgraded and technological advancements embraced to pave a way for innovation. We have seen Apple change their logo from a multiple coloured apple to a solid silver apple. We have seen Coca Cola modify their bottle shape over the many decades of their existence. When companies make significant adjustments to change elements of the brand, it can be because the old brand is diluted or simply the old brand does not resonate with the current market. The change could be due to internal changes. The company can be reinventing themselves or the business model has changed and the current elements of the brand aren’t in alignment with the direction of the company. This could be in relation to the current position of the company within the market and where they would like to position themselves. The reasons are countless. The end should result in an increment of brand equity that leads to increase in market share, increase in profitability (subsequent to the previous point) and a return on investment. Despite the intangibility of the brand element, it should be able to quickly communicate what the product/service or company does. We only get one chance to make a first impression, in that impression the brand should attract customers towards selecting your product or service over the competitors. It should clearly communicate your competitive advantage that will allow a customer to select your brand over their competitors. Humans are emotional, so playing on the emotions of customers allows the brand to be more relatable. Therefore using words such as ‘empowering’ draws in customers or at least spark their interest. The value of the brand can also be placed on the customer experience. After sales services often go along way with customers, this creates a relationship with customer and could lead to brand loyalty. According to the theory of Perato’s efficiency, 80% of purchases are done by 20% of the customers within the market. A good experience will keep the customer loyal and this will create repeated purchases. In my line of work, I have seen that with rather delicate products like vegetables, farmers tend to be very selective with the inputs or the brand of inputs that they use and seldom do they change, especially if they are obtaining the results that they expect. I have seen that farmers would change their inputs, technology and techniques if they are not receiving the expected results from their current inputs (based on the assumption they are applying the right skills). In other cases, they would change brands to receive higher yields. Consumers, be it a product or a service, should be prepared to pay a premium for certain brands based on what they endorse; quality, great service delivery, customisation, a sense of security and trust , exclusivity and many other factors. Whatever the competitive advantage of the company is, it should be substantial enough to evoke brand loyalty. Customer loyalty also makes consumers more inelastic to price increases, which protects the company’s revenue stream and at the end of the day it is the numbers that matter. The strength of the brand can also cripple the competition due to barriers of entry that it has created. Investing in a brand is definitely advisable but, most importantly it is profitable. It can offer great opportunities for the company. The writer is a Communications and Business Development Manager at Balton Rwanda Ltd. henrietta@balton.co.rw
