The recent developments in years have seen continuous advancement in technology and with this advancement the difference between the products by different organizations have reduced. (Conner, 1992) Moreover the existing differences are now hard to be quantified and measure; now the difference has been shifted to intangible differences. Now a days most of the consumer products have become a kind of commodity. The term ESP (Emotional Selling Proposition) has taken over USP (Unique Selling Proposition). Organizations can now manipulate customers emotionally. Their lies an emotional bonding between customers and associated Brand. This emotional bonding is a powerful tool that helps organizations for brand differentiation. The benefit of branding involves commanding a favorable position in mind of customers, different from competitors. The ultimate objectives of branding can be explained by taking the example of YUM Brand.
- To be a Market Leader.
YUM has established itself as powerful brand as they wanted to be market leader. The foremost requirement for that is to reduce or eliminate competition. In the absence of competition it is easy to develop the customers liking towards the product, especially in food industry. If a product is good and is able to offer some central benefit then it will have a good impression on the minds of customers. That is the time to capitalize the benefit of Branding.
- To Retain Loyal Customers.
One of the central benefits of Branding is that it helps in retaining the loyal customers. Loyal customers do not change the Brand easily, for example it is highly probable that a loyal customer of Pizza Hut will also visit Taco Bell. It is the responsibility of the parent brand, here YUM brand, to increase the awareness about all its sub brands. Loyal customers do not shift to other brands unless they themselves found something negative about the product they are using.
- To raise the entry barriers.
One other objective that Branding can achieve is to increase the barriers to entry and any industry is no more lucrative if entry costs are high, then only big players can enter into the market. It helps in reducing the competition in indirect way. If the sector is not much attracted then organization can try to establish itself as a market leader.
However it is not easy to build upon the established brand. With positive people also relate negative aspects to the Brand and the organization. Whenever anything goes out of way, be it small or big, it is the Brand that has to take the blame. In this case organization reputation and Bran image are always the victim. It is to be kept in mind that most of the decisions about brands are taken not by brand managers or other top-level executives but by local community who uses that product associated with brand.