How does a brand allow a business to add value?

[Nataliesnazzy24]

Business and economics homework! havent a clue! please help!

[oopsoohooh]

brands allow businesses to increase profits

a brand is similar to your reputation
if your reputation is bad, no one will trust or wish to associate with you
no one will pay premium to buy your products

businesses trade on the joneses affect, therefore create the brand, some may call the gullible consumer shallow

[Fairdo4all]

A well known Brand gives consumers a feeling of safety in their purchase whether that be confidence in the quality of the product or, in the case of fashion goods, their desirability and allows the Brand holder to increase their margin.

Classic examples would be Jeans. One factory, probably in the far east, will make and sell what is basically exactly the same product to a number of different retail outlets. The Jeans you can buy for a tenner in Asda can be given a Designer Band name and sell for 60 quid. Exactly the same product barring the brand badge on the waistband or back pocket.

I don't know if you enjoy Marmalade on your Toast or not, but millions do. 'Hartleys' is a very well known brand name and an automatic choice for many consumers. A jar costs on average between £1.50 - £1.65 ~ if you go to Aldi you can buy a Jar of 'Carringtons' marmalade which has exactly the same fruit content and tastes just as good for 64 pence !