A strong brand
December 17, 2014

The strength of a brand lies in its potential and the ability to realise it. It consists of a number of factors and elements that distinguish it. What tools should be used to create a pioneer brand in the industry? What benefits can be derived from a strong brand?

First of all, you should ask yourself what makes consumers think about the brand as a strong player in the market of a given industry.
At this point, the question arises: what are the distinguishing features of a strong brand?
- dominant position in the market - more than 2/3 of the market shares of the leading consumer goods companies are as follows: 33%, 19%, 12%, 7%
- place the brand takes in the mind of the consumer, ‘a share of mind’, which answers the question how well the brand is known to consumers
- a brand is strong when it is perceived as the leader in the industry (assumed leadership)
- it happens when there is an emotional relationship with a brand: “a brand is in the hearts and minds of the people who love it” (Landor)
- a sense of distinctness and uniqueness, existing both among the creators of the brand and its customers
- meeting the expectations of buyers better than other brands
- price elasticity of the brand
- “The price shows whether the brand is strong or weak, confident or humble, does it control the situation or is in panic. Price is the largest component of the value of the brand.”  (T. Ambler)
- a truly strong brand has global character
A brand which was the first to dominate a given product category (not necessarily being a pioneer in the industry), usually remains the market leader  for decades, e.g. Twój Styl, PZU, Ludwik. Early follower grabs a market share of 60-70% market (an early leader). Companies entering the market much later, as a rule, have a market share of less than half the share of 'early leader'.
For a strong brand it is also important to be up-to-date and progressive. It is also crucial to observe the state of the art and innovate the product according to it. Last but not least, it is extremely important to communicate with the client in a clear and direct way.

What are the benefits of having a strong brand?

  • Higher sales
  • Higher returns (economies of scale and the premium price -> reduced-price elasticity)
  • A guarantee of future sales


  • barrier to entry for potential competitors - monopolistic competition, e.g. beer, soft drinks markets; blocking competitors by offering many brands targeting different market segments, e.g. L'Oreal
  • stronger bargaining position in relations with retail chains, including retailers, for accepting lower margins (mainly for strong brands in the FMCG sector)
  • ease of obtaining workers in markets with low unemployment
  • ease of the brand extension, e.g. Nivea, used it as support (corporate brand or co-branding)
  • acquiring a global brand position

Brand strength is a leading indicator used to refer to the chances of a strong position in the future.
It includes:

  • diversity - it is related to the rate of profit
  • meaning - it has to do with the consideration of the purchase and of testing the product

Brand size is a lagging factor used to refer to the current position in the market.
It includes:

  • reputation - it is related to the perceived quality and loyalty
  • knowledge - it has to do with the knowledge and experience of consumers
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