I came across a quote the other day, and I’ll poorly paraphrase it here. The quote explains why the Coca-Cola Company and many other firms have market values that are way above their physical assets and reminds us all that brands matter. Allegedly the brand manager for Coke in the 80’s said that, and I paraphrase to the best of my ability, “if all the factories and inventories of the Coca-Cola company burned down tomorrow, we would be back in business in 2 months, making just as much as we do today, if however, all knowledge of Coca-Cola disappeared from people’s minds tomorrow it would take us 100 years to come back”.
Building a brand may often seem costly and pointless, but keep in mind how important the brand has been for companies that target consumers directly. A brand may not always be the right solution, especially in cases where you only buy once (like building a house), or where the market is driven largely by price (like aluminum), but when it is the solution you had better take it seriously!
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