[MUSIC] So, have you thought of things that can not be branded? Let me show you why are brands so important. Even water can be branded. Take the case of Aquafina, Arrowhead, and Evian. Aquafina, guess what? It's just tap water gone through a couple of steps of processing and filtering. But Pepsi Cola, and so has Coca Cola made it for the case of the sunny. That in fact it's just water that comes from public reservoirs. So if you can brand water, you can brand anything. But you certainly can do a very good job. And branding water. If the water comes from springs, take the case of Arrowhead, that comes from the Rocky Mountains, the Canadian's and the American Rocky Mountains, and west of the Rockies in particular. You can certainly brand it and charge a hefty price for a fluid ounce of water. But branding is magic. Look at the case of Evian. If the water comes from the french alps, in particularly near by lake Geneva, where the sources of these springs originate, then you can charge up to ten cents per fluid ounce. These are amazon prices for you. As you can see just about anything can be branded. It's hard to come up with things that cannot be branded. But what are some of the main benefits of branding objects, things, products, services, things, and so forth and so on? Well, there are two kinds of benefits. First, let's look at consumer benefits. One is trust, it is very unlikely that you will do business with any company that you don't trust. Brands serve as a way to ensuring consumers and reassuring consumers of that trust. Next, brands help consumers to reduce the search cost. The world is filled up with products and services. Sometimes it is very hard to differentiate them based on product features, benefits, service quality, and so forth and so on, chief among which is, just because it's particularly hard, and very costly to evaluate. Brands help consumers to make decisions quickly and promptly, thereby saving them a lot of the hassle. Next, they are a signal of quality. Even intel inside became famous for placing this logo outside of PCs, that guarantees you about the quality of some of the components inside. Otherwise, PCs were very, very difficult to differentiate one from the other one. Just electronic components. Next, brands are promises. They're a bond or a pact that consumers have with the company. Let's take the case of Ikea. Ikea promised to deliver high quality, good designs at very affordable prices in home furniture. Right, so this is something that consumers have come to expect. The brand serves as the promise of this value proposition. Also brands serve as a demonstration effect. It helps some consumers define their identity. Think of wearing many luxury goods for example or even to identify the community to which they belong. Think for example of Harly Davidson's. Harly Davidson's has built a huge enormous community of riders that are completely loyal to the brand. They get together in some of these riding events that happen throughout the world and throughout the year. So brands, in addition, helps to define a person's individual or social identity. [MUSIC]
