The ultimate point of a brand is not to generate
buzz—it's to shift customer demand. It doesn’t pay to
invest in the brand if the business model is flawed or
the product lacks customer appeal. Well-managed brands
shift demand in several ways: by commanding a higher
price, generating more volume or some of both. Too high
a price will dampen demand and reduce revenues, but the
stronger a company’s brand, the further out it can push
this intersection of volume and price in order to
maximize revenues and profits. Bain & Company’s analysis
of 21 product categories quantifies the power of brands.
2012
