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Why @brandless will fail again?
Brand names can command a premium. Brandless, the brand without a brand, will fail again.
I explain why
Brand names can command a premium. Brandless, the brand without a brand, will fail again.
I explain why
Nostalgia
⢠We have a deep connection with brands that we grew up
⢠For me, I love Coke Cola. I had my first sip at 12 months old and won't drink Pepsi
⢠Companies spend years building this type of relationship with a consumer
⢠We have a deep connection with brands that we grew up
⢠For me, I love Coke Cola. I had my first sip at 12 months old and won't drink Pepsi
⢠Companies spend years building this type of relationship with a consumer
Strong Brands > Weak Brands
⢠Strong brands consistently outperform the market
⢠The world's 40 strongest brands yielded almost twice the total return to shareholders of an investment in a MSCI World Index https://www.mckinsey.com/business-functions/marketing-and-sales/our-insights/the-future-of-brand-strategy-its-time-to-go-electric
⢠Strong brands consistently outperform the market
⢠The world's 40 strongest brands yielded almost twice the total return to shareholders of an investment in a MSCI World Index https://www.mckinsey.com/business-functions/marketing-and-sales/our-insights/the-future-of-brand-strategy-its-time-to-go-electric
Brandless Launches
⢠Brandless launched in 2017
⢠Basic idea: white-label products for the web
⢠In 2019 they shut down, but new ownership relaunched the brand this year
⢠Brandless launched in 2017
⢠Basic idea: white-label products for the web
⢠In 2019 they shut down, but new ownership relaunched the brand this year
Price as a Differentiator
⢠Goods that solely compete on price lose in the long run
⢠Brand names can command a premium https://www.thedrum.com/opinion/2020/02/18/brandless-was-actually-brand-just-bad-one
⢠Goods that solely compete on price lose in the long run
⢠Brand names can command a premium https://www.thedrum.com/opinion/2020/02/18/brandless-was-actually-brand-just-bad-one
Why Do We Love Brands?
⢠"People like the taste of brand-name colas more than generic onesâeven when the soft drinks are identical."
⢠Human brains love brands https://psmag.com/economics/brands-are-imprinted-on-our-brains-59865
⢠"People like the taste of brand-name colas more than generic onesâeven when the soft drinks are identical."
⢠Human brains love brands https://psmag.com/economics/brands-are-imprinted-on-our-brains-59865
Premium Brands > Generic Brands
⢠People will pay a premium for a brand name over a generic
⢠"Consumers are indeed more likely to pay up for a brand name if they're poorly educated about what they're buying. https://www.businessinsider.com/americans-pay-up-for-brand-name-drugs-2013-6
⢠People will pay a premium for a brand name over a generic
⢠"Consumers are indeed more likely to pay up for a brand name if they're poorly educated about what they're buying. https://www.businessinsider.com/americans-pay-up-for-brand-name-drugs-2013-6
Successful Private-Label Products
⢠AmazonBasics & Market Pantry are successful because they are associated with powerful brands. Amazon and Target respectively
⢠Private-labels work when you have a powerful brand behind you
⢠We trust the company manufacturing them
⢠AmazonBasics & Market Pantry are successful because they are associated with powerful brands. Amazon and Target respectively
⢠Private-labels work when you have a powerful brand behind you
⢠We trust the company manufacturing them
If Brandless wants to succeed this time, it has no choice but to choose: brand or generic. For me, when it comes to cola, itâs always going to be Coke: there is no substitute.
Read my article https://www.arilewis.com/aris-posts/5ruqufgnggjvg94rxvi7dd95eh4fvj
Read my article
https://www.arilewis.com/aris-posts/5ruqufgnggjvg94rxvi7dd95eh4fvj
