When it comes to branding there is no proven formula that works the same for every company; it depends on many factors and, if done well, it should be unique and successful no matter the size of the business. However, there are several companies out there that are willing to position themselves as a cheap option and, while this strategy might be useful at the beginning, it might not be what you are aiming for in the long run. At Twelve12, our Branding team in Orange County wishes to give you some insight into this particular branding strategy.
This is us. While being a cheap option might bring in a lot of business at the beginning, if your goal is to become a successful and reputable brand, this might not be your best option. Take the big Korean players as an example. In around the year 2000, Daewoo electronics was bigger and had more products than LG and Samsung combined. Daewoo relied on a “cheaper option” strategy and their range of products was vast, from cars to cellphones, hotels, research centers, and more. At some point, LG and Samsung decided on smart marketing, technology, innovation and high quality instead of price. Today, they are very successful companies while Daewoo has not only been reduced to almost anything, but it even had to rename its company to get rid of all that troubled branding associated with its name.
Quality or price? While a lot of us might say that the price is the most important factor when presented with an option, this has proven not to be true time and again. There are many examples to illustrate this particular point. We might be looking for the best price as consumers, but this doesn’t mean that we are necessarily looking for the cheapest option. We sure try to find our favorite brand at the cheapest price; most of the time, however, we don’t choose a cheaper option over the brand based only on the price. Most of the time, we regret doing so if that was the case. Brand over price is usually a key factor in the purchase process.
Cheaper by the dozen. After reading the previous paragraphs, you would be inclined to stay away from a “cheap” strategy, however, this is not always necessary; it all depends on how you present your product or service. Wholesale centers are very popular, and they offer better prices providing you buy a lot of products. You have probably noticed by now that most online services are cheaper if you commit to a year and you pay ahead, and the deals are just so tempting that they can be very hard to resist.
Make it easy. You don’t have to sacrifice volume over price! Take iPhone or Thermomix as examples. The latter is a glorified blender for high-end consumers and the same goes for iPhone, for which many people don’t believe the product itself is worth its high price. They do, however, offer so many options and small payments, so that it makes it easier for those who are dying to get their hands on products of such reputation and status that the small payments strategy is just what they were waiting for. This is the power of branding.
If you want to know more about effective, bespoke branding strategies, give us a call today, where at Twelve12 our branding team in Orange County is ready to get you where you want to be.