Brand awareness, according to businessdictionary.com, is the
“extent to which a brand is recognized by potential customers, and is correctly
associated with a particular product…is the primary goal of advertising in the
early months or years of a product’s introduction.” Every company strives for
it, but what good is brand awareness if the company is no longer making
money? Interbrand recently released its
“Best Retail Brands” of 2013, as well as the companies that are not doing so
well. The company is a business consultancy that builds brand awareness for
clients by viewing brands as “valuable business assets.”
According to a Forbes article by Barbara Thau, Interbrand’s
list consists of the top 50 companies in the United States, based on the
companies’ financial data, customer buyer behavior, and brand recognition. Wal-Mart
is number 1 at over $140 billion, up just 1% from last year. Other brands on
the list include clothing retailers American Eagle Outfitters and Banana
Republic and e-commerce sites ebay and Amazon, which all saw an increase since
2012.
Many of the brands have been able to maintain recognition,
but are losing money. One of the most highly recognizable retail stores, Toys
“R” Us was not on the list of top 50 companies this year. Electronics retailer
Best Buy remained on the list, but fell from number 10 to number 13. Thau’s
article points out that the main reason for the companies’ drop in sales is
high competition. Many competitors, including Wal-Mart and Amazon, offer the
same products for much less. Brands like Toys “R” Us and Best Buy are known for
their niche markets and specialties, toys and electronics, respectively. Unfortunately,
their competitors have found a way to attract consumers and continue to make
money. This proves that although building a name for your company is important,
at the end of the day, the most important thing is making money. The name
itself will give you awareness, but you must also keep in mind how you will
attract customers.
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