*Certified Distinction Grade Work*
Unit 28 Branding:P2 - Explain how brands can be an asset to a selected large business.
A2 Brand as an asset • Value of a brand: the total financial value of a brand. • Brand equity (positive and negative): the differential effect that knowing the brand n...
Brands invite competition and copycats Link to your business
Brands can build competition and rivalry with other companies in the business market.
Competition between different brands in which they’re both trying to achieve similar goals to
satisfy customer needs and wants. An example of this can apple and Samsung they are both
very big companies, they have rivalry and competition between each other, they want their
phones to meet customer needs and expectations, in order to satisfy them (customers) they
both copy ideas and new features to their products such as Samsung galaxy 21 ultras can zoom
in 100x. Now Apple's new iPhone 13 is copying that idea by slowly implementing to increase the
zoom on the camera. The bigger brand is the bigger the competition is. Tesla has invited a lot of
competition over the last 4 years. Car companies are copying Tesla in which they’re now
producing electric cars. The car company industry now is turning their gasoline cars into electric
as they know that, that is what customers now want, customers want a sustainable
environmentally friendly car that produces zero carbon emissions. Tesla customers believe that
Tesla is going to carry the future of electric cars thus they have created a lot of competition
between many other big car companies
High cost of research and development in ensuring brand continues to develop and
lead the market
A disadvantage is that a brand needs to have a lot of money to ensure that their brand is always
kept in customers minds. Tesla needs a lot of money when going into production as materials
used when making a Tesla car is very expensive and also researching ideas to implement into
their electric cars. Tesla needs suppliers to provide them with raw materials. A business such as
Tesla needs a high budget so they can always lead the market. They are the ones that made
electric cars seem like the future of modern day cars and thus is what customers believe. Tesla
is currently leading the electric car market, they have to ensure that they are number one.
Which may be considered a huge disadvantage as they will have to think of many strategies in
which they will have to work even harder to achieve their goal. Which can be very expensive.
Brand as an asset
Value of a brand:
Value of Brand is how much a brand is worth, if the business ever decides to sell it. If a business
is merged or bought by another company, it would use the brand name, logo, slogan and brand
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