Advantages and Disadvantages of Good Brand Name

Advantages and Disadvantages of Good Brand Name

Advantages and Disadvantages of Good Brand Name


Branding helps the company in charging a eminence price for their product because a good brand guidelines a higher price than its competitors which in turn leads to higher profit margins for the company.

  • Awareness: The harder a company works on its branding and identity, in most cases, the more consciousness it creates. For example, Coca-Cola is known worldwide for its product. A consumer can see it in a foreign county, with labeling in a foreign language and know it is a Coca-Cola product.
  • Consistency in the Marketplace: The more often a customer sees your brand in the marketplace, the more often he will consider it for purchase. If the brand and identity are truly kept consistent, the customer is more likely to feel that the quality is consistent and to become a loyal follower of the brand.



The main disadvantage of branding is that it involves vast cost because brands are not created suddenly and companies have to expend vast sums on marketing and publicity.

  • Can Become Commonplace: A lot of brands struggle to be No. 1 in the minds of customers. For example, in many parts of the Europe, people demand a soft drink like: CocaCola, when they go to a restaurant, not necessarily meaning a Coca-Cola product, but any soda. While it is the aim of branding to become the standard, it is not the aim to become the standard term of a line of products.
  • Negative Attributes: If a product or service experiences a depressing event that will become attached to the brand. For example, a huge recall or by mistake offensive ad campaign can tarnish a company’s brand and image, causing the company to need to build a whole new brand and identity to recapture its place in the market.