Pepsiās quarterly report highlights the power of branding.
The Big Idea:Ā Brand building is a long-term investment.Ā
Pepsi announced its quarterly results last week. The call was filled with talk about the different brands that Pepsi manages and how the investment in brand building is paying off.
What Do You Need to Know: Les Binet and Peter Field put out their report on the long and short of branding and advertising. The report highlights the amount of investment necessary to achieve the optimal mix of brand building to short-term sales activation.
For FMCG brands, like Pepsi, you are looking at 60/40 or 65/35. The bigger number goes to the brand.
Most businesses arenāt investing that much though.
Can You Use This? Yes.
You need to start thinking about how to make investments in your brand.
Why?
Your brand helps you:
- Win business more quickly.
- Gain pricing power.
- Create customer loyalty.