People often wonder why businesses spend thousands on a logo, tag line or other aspects of their brand identity.
This image shows why:
With strong enough branding, you can sell a coin worth fifty pence for £2.99.
Jun 22, 2012
I have to disagree 100%. Nobody is going to buy that 50p coin for £2.99 because of the branding or the logo. They’re going to buy it because they’re fanatical about football, or because they’re fanatical about coins. You could put the same coin in a clear plastic bag and as long as they could find it those same people would buy it for the same £2.99 price tag.
And that’s why businesses waste thousands on a logo, tagline or other aspects of their brand identity. They believe a strong logo will convince people to buy from them.
Put it like this. People buy BMWs. BMW has an instantly recognisable logo. If I create a virtually identical logo for my widget-making business, will I instantly sell lots of widgets? Nope. It’s not the logo – it’s the product quality, the kudos of ownership, the customer journey that goes on behind the logo.
I’d say it’s going to appeal beyond the usual coin collectors simply because it’s tied to a very strong brand – the London 2012 brand.
Nobody’s going to buy your widget because your brand is a bit like BMW. But they’ll pay more for an identical product from BMW just because of that association with the brand.
All that kudos of ownership – that’s the power of the BMW brand. There isn’t the same attraction to manufacturers like Skoda or Hyundai, even though the product quality is similar.
Simon Blake says:
Jun 27, 2012
“If I create a virtually identical logo for my widget-making business, will I instantly sell lots of widgets? Nope.”
Maybe not. But if you put the *actual* BMW logo on there, you DEFINITELY WILL – even if people buying them KNOW the widgets aren’t actually made by BMW. The quality of the product does NOT matter. The brand does. When I was regularly going to rock concerts no gig was complete without some chancer out the front selling cheap knockoff t-shirts with the band-name on the front. Everyone knew they would survive just one or two washes, everyone knew they were “unofficial”, poor quality etc… and there was always a queue for them.
Further proof: “replica” Rolexes. There are plenty of online shops that will sell you a “replica” of a Rolex Submariner watch for prices up to and beyond £500 for the ones that have the proper etched crystals, hologram stickers, smooth movements etc. They will warn you that these watches are NOT EVEN WATERPROOF. People are not paying these prices for the quality of the product – they KNOW they’re fake, they know they’re not actually as good as the real thing. They’re paying for the best possible replica at about a fifteenth the price of the actual product.
If your “widget” was a BMW 1 series car, built in India or somewhere, that *looked* identical to the real thing but would probably only last three years… but it only cost £1,500 to buy new, do you think people would buy them?
Why do you think BMW’s lawyers would drop on you like Teuton of bricks if you tried to put a BMW logo on so much as a baseball cap without their permission?
Mike Reed says:
Jul 5, 2012
Commemorative coins always sell for a lot more than their face value. It’s not about the brand, although I’m sure the Royal Mint hopes to sell its Olympic coins to a wider audience than the usual numismatic obsessives.
Just look at the Royal Mint website. A set of 2012 Commemorative coins, for instance (the standard set plus two extra – commemorative £2 and a £5 coins), will set you back £39.
Karen James says:
Aug 14, 2012
Logo and branding really have a great impact on a business. Aside from face value, it like an authentication for the business that customers look at.
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