branding of commodities
new experiences! This is why tourists and travelers around the world feel comfortable on eating at McDonald’s.
2. Value Expression: Consumers choose brands that reflect the individual values that they possess as individuals. They do this to communicate the desired signals in the highly social environment they inhabit.
CONCLUSION
Branding of commodities offers additional value both to the consumers and the producers. Branding leads to commodity differentiation and hence enables consumer preference and product attribute mapping. This translates into greater choice and quality for the consumers To the producers branding provides the opportunity to increase gross margins by increasing the value perception of their product.
The most successful brands will always be those that deliver not only the tangible functional value but also the intangible value that is the implied guarantee of a branded product.The promise of the brand will always be seen as the most valuable benefit because when confronted with two choices of apparently equal benefit, the consumer will always choose the one that feels right.
The way to maximize brand value is to:
 Develop a compelling brand proposition
 Have a large segment of loyal customers who value the brand significantly above it’s competitors.
 Deliver the brand consistently through rigorous customer relationship management processes.
 Maximize awareness of and familiarity with the brand.
Trusted brands are not established overnight but are built up as a result of long-term investment in delivering on the brand promise. If a manufacturer can manage this, branding provides an escape from commoditization as it moves the buying decision away from solely price factors and therefore can generate a strong return on investment and long-term sustainable advantage.