Strong brands are rare: customers must be bound emotionally

20. Aug 2007

Basic perequesites for the producer are brand awareness and emotional customer retention. The study can be resumed to eight important key factors that are significant for a strong brand. But the names of the most successful brands are not publicly announced by AC Nielsen. “Some Austrian examples of strong brands could be “Hofer” or “Manner”, declares Irene Salzmann, Manager Corporate Communications AC Nielsen Austria to pressetext.

In general, the ratio of dominant brands is higher in USA and in the Asian area than in Europe. When comparing the different sectors, the car industry counts the highest rate of strong brands. “In Europe, we still have more ‘medium’ brands. In the USA and in Asia, customers show a higher brand awareness”, says Salzmann in the interview with pressetext. According to the study, first rule is that strong brands are the exception, not the rule. This means that worldwide 37 % have to be rated as weak brands. Anyhow, one basic perequesite for the success of a brand is that it has high awareness in the relevant target group. Strong markets show an average of 95% aided awareness among their target groups.

Furthermore, successful products are more than twice as present in the awareness of customers than others, strong brands are bought deliberately and repeatedly. Two third of the customers can be bound to one single brand for the long term. “One important point for customer retention is that the company follows a clear brand line and that the brand is unmistakable”, so Salzmann. Strong brands are recommended at up to three times more often than medium brands. And in an ideal situation, very successful brands even turn the consumers into fans – even those who are not bying the product.

Source: pressetext austria