Ben Wise on Branding

Watching the world through the lens of the brand

How Does Your Brand Make Money?

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At first glance, this looks a bit of a silly question. The brand makes money by selling a product or service. But a closer analysis will give you a deeper understanding of what should drive your brand.

When I was doing my MBA, a marketing prof asked the class what Disney sells. Being a group of young keeners, we heard answers like ‘dreams’, ‘magic’, and ‘fun’. My favourite answer was ‘characters’.  With the benefit of a bit of research and data, the prof enlightened us. Most Disney movies will gross a few hundred million dollars in theatres. But over the lifetime of the brand of that movie, they will often clear a billion dollars in other merchandise. Disney movies are really just a conduit to selling merchandise so their brand needs to create such a strong emotion connection that consumers are compelled to buy the dolls and video games.

I came across another example from a friend who worked in sales at a CPG company. His first day on the job, his boss told him that his job wasn’t to sell their products on the shelves, but to get their products on to the end-caps and promo stands in grocery stores. This is where they made their money.

Understanding the source of a brand’s profit should dictate almost all of the strategic decisions that you make. This may seem a daunting task at first, but if you can nail this then the tactics should follow easily.

What do you think? How do your brand make money?

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Written by benwisebranding

January 29, 2010 at 7:24 pm

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