Do great brands make great investments?

A company's Brand remains important to the business results. Behind every brand, there is a compelling idea which captures customer's attention and loyalty. The idea is inspirational and aspirational, appealing to a wide network of customers seeking personal betterment. Leading brands constantly maintain their relevance to a targeted set of customers ensuring ownership of clear points of difference compared with the competition. As the market and consumer needs change, the company requires to review its brand strategy to make sure it still fits with the image the company hope to convey.The company should be able to gauge its brand's return on investment, market share and revenues. The effectiveness of a brand is that it should be unique and should be able to sustain the saturated market conditions.

Hence Brand as an asset is a credible reason to consider a company that focus on brand building which generates long term growth, profitability, and return. Great Brands not only make great investments but eventually will outperform the market within a couple of years.when a brand becomes good at leveraging its brand power, the investments in the brand strength will create new markets.In view of the above, great brands make great investments as brand value confers a genuine competitive advantage.

Thanks Mr.Jayant for the referral.                 

Yes great brands do make for great investment. But having said that i agree with some of the bloggers that in some cases the investment does not work out as planned. For a great brand to score on its investment ability, it has to continuously win in the market place. The example of EPSON that is being said here cannot be taken as a great brand. In the printer category i would rate HP to be a great brand and not other way around

A Brand is an outcome of consistent performance over the years and not always the gimmicks of a Marketing Man as most of us would believe.TATA is one such Brand which is build over the years on the pillars of ethics,integrity, transparency and corporate social responsibility.I hope nobody denies that.A brand is always a very good proposition to invest.Some may debate ,What about ENRON ? As Mutual Fund says in lighter vein "Past performance doesn't guarantee future return".That was in lighter vein but it is obvious that investor should monitor their Brand.Moreover, ENRON failed,LEHMAN failed but thanks to thousands out there are performing very fine.

Yeah

Brands do affect positively but one has to be careful to relate to a particular brand.Like Tatas and Infosys come up with a product,one can think of trusting the brand...If that is not the case,then why people invest in cos IPO even when the opeartions are to start after 3 years (Like Reliance Petroleum Ltd)...