The power of the branded differentiator

The competitive terrain for most brands today is difficult to brutal. Many are contending with overcapacity, downward price pressures and eroding margins. It is increasingly hard to create and maintain points of differentiation, one of the main drivers of brand strength. There are several reasons to branding, most of which go back to the basic value of a brand in any context, including: 1. to add credibility to claims made on its behalf, 2. to make it easier for consumers to remember the differentiator and link it to the parent or master brand, and 3. to enable more efficient and effective communication. As with many other managerial tools today, companies must decide whether it is better to own an internally branded differentiator or lease an established external brand.