What Determines a Brand’s Value Part 2

Yesterday, I wrote about the first 6 of 18 components that contribute to a brand’s value. We continue today with the next six.

The pricing strategy. You can establish your price based on your desired profitability or compared with key competitors. The right pricing strategy is essential as it signals to the customer what to expect from your brand.

Your distribution strategy. How you deliver your brand to consumers determines whether you will sell anything. If your customers can’t access your product, they can’t, and won’t buy it.

Production capabilities and limitations. You must be able to produce the product with the quality and quantity customers expect (not necessarily need or want). It has to feel right, work right, look right and cost right for it to be right.

Controlling your costs. An inability to contain costs, especially when it is due to waste, is the quickest way to erase a brand’s value. The waste can come in the form of inefficient production, ill-conceived marketing strategies, and improper pricing and distribution strategies.

The standards by which you serve your customers. Every interaction with the customer must leave her feeling good—no, great!—about her purchase.

The competitive advantage you have. Everything mentioned thus far is meaningless if it doesn’t lead to a competitive advantage. Otherwise, nothing will separate you from the rest, and you will be little more than a commodity.

Tomorrow we wrap it up.

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