Is Bisleri better than Bailey mineral water?.
Is Surf better than Sunlight washing powder?.
But a company’s brand has the power to differentiate its products or services from those of its competitors – even when those products or services are exactly the same. And when 70% of the customers are willing to pay a premium for the branded commodities of their choice, a strong brand is a company’s most valuable asset. A good example of the power of brands in today’s world is Coca Cola. It is known as the world’s most powerful brand and has been valued at 72 billion USD! .
We use and choose these brands on a daily basis – because we use commodities on a daily basis. Yet, we are almost oblivious to them. For example, we get up in the morning and brush our teeth with some Colgate’. Men will shave with Gillette’. Next we have a bath with Head and Shoulders’ and Lux’. Before we leave for work, there is just enough time for a cup of Nescafe’. Although these are just brand names, the commodities they represent are well known. Imagine what life would be like without these brands. .
Infact, now a days, it seems like everything can be branded and commodities are no exception. Branding Commodities is a powerful resource that companies can use to rise above the crowd. This is true especially since commodities are usually low involvement products and we do not think about them that much. Branding helps make it appear to be high involvement, which in turn should lead to more sales for the producers and manufacturers of these commodities. .
Branding is 100% human emotion and everything else is just dressed up as rationality to give people permission to act on their emotions. The degree to which the product offers utility to a potential customer is also very important. Commodities usually have a very high utility value. They therefore usually have an edge over every non-commodity products and services because they are more related to needs rather than wants.