Is branding an investment or expense?

branding agency in mumbai
  1. When it comes to spending money on your business there are 2 ways of looking at the spending 1. Expenses 2. Investments.
    Expense is the ‘have to’ way, and it’s painful
    Investment is the ‘choose to’ way,and it’s inspiring
  2. In this article I will try and give a prospective about the branding in comparison with advertisement
  3. Spending on branding may sound expense, but in long run you will realize branding is the most important investment for any business
  4. Let’s analyses the 2 situations:

Situation 1: Let’s say Mr. Pandeyji has, his wadapav store at worli naka. He understands the quality and he makes one of the best wadapav. His shop is a regular store with the name Guru Prasa He spends, say Rs.100 on promotion, every monthand increase the spending whenever he finds the business is slowing down. He is making good money and wants to open one more shop at Vile Parle. He finds a good place and opens a new store.

Situation 2: Mr. Mithal has, his wadapav store at Dadar. He understands the quality. He spends on branding and comes up with a unique name “Taste of Mumbai – naram garam wadapav”, gets nice and clean signboard.People with uniform to serve his customers and also he has got special yellow chutney.  He also spends Rs. 200 twice in a year. He makes good wadapav. He is making good money and wants to opens one more shop at Andheri. He follows his brand documents to get the same looking store with same visuals, taste, softness and same music playing in his store when customer comes.

  1. Based on the analysis of the situation following are the few outcome
  2. Pandeyji spending is to generate business from the advertisement and Mr. Mithal spends to create brand awareness.
  3. When Pandeyji stops spending he could feel the slowdown in business and Mr. Mithal is not depended on advertising.
  4. Each advertisement of Pandeyji will look different as he doesn’t have fixed brand guideline or templates and Mr. Mithal, every promotion will have the brand touch.
  5. Because of the different designs Pandeyji will never get leverage from the previous design. As for Mr. Mithal he will get great leverage from the previous design as they are in line with brand guidelines.
  6. Return on investment for Pandeyji will be just the addition. Mr.Mithalji’s return on investment will be in multiples
  7. When there is new shop, Pandeyji needs to start spending again to promote the new place as for Mr. Mithal, he will get automatic promotion just because his store will carry the best recall value through the branding.
  8. As the say goes, ‘Saving is earning’, through right branding one can make lot of saving and also better earning.
Praviin S Bhandary

Orrigem - Brands and Beyond

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