Brand, value and advertising

12 May

Wharfedale_viaductHow’s this for a marketing strategy? Avoid expensive media advertising and undercut your competitors by 50%. A recipe for success or the road to ruin?

Let’s look at a case study. Beer is expensive, mainly because of government taxes. Rural pubs are closing and people are choosing to drink wine at home. Last weekend a pint of beer cost me £1.37 in one country pub near my home and £2.70 in another just a mile or so away. The cheap beer comes from Samuel Smith, a small independent brewer in Tadcaster, Yorkshire – not to be confused with heavily advertised industrial brewer John Smith’s from the same town. Sam Smith’s is proud of its focus on product (all natural ingredients) and the lack of advertising support. I can name beer I prefer from several other small independent breweries, but none competes on price.

With low prices comes little choice: cask or keg. With low prices comes a general lack of investment in real estate, so traditional buildings are still partitioned into small rooms. This lends charm (I like to take my visitors either to the Gardener’s Arms at Bilton or the Harewood Arms at Follifoot, both near Harrogate). But just to show it can invest, Sam Smith’s has completed the renovation of the Dyneley Arms at Pool-in-Wharfedale. It looks great and the food’s good too. (Update: since the budget, the beer here has risen to £1.44 a pint.) Not all reviewers share my favourable opinion, but a company that doesn’t advertise needs all the free PR it can get, and should take the rough with the smooth.

Photo: Wharfe railway viaduct, posted to Flickr

4 Responses to “Brand, value and advertising”

  1. Rudiger Theilmann 12/05/2008 at 11:18 pm #

    What a great example of the power of word-of-mouth using social media as a vehicle endorsed by a great, likeable, competent and trustful source! The Gardener’s Arms and the Harewood Arms should be on my list now… and all comes without any advertising…

  2. Lisa 16/05/2008 at 3:53 pm #

    i beleive the fmous brand will make you cost more in the same quaily product as the not fmous brand. brand value is coming from number of people knowing the brand, then advertising will dress the brand value to high level. For my thinking, advertising gave adventage in brand image and then increase the brand value, after that people beleive that, fmous brand have high quailty and it must be expensive and valuable product.

  3. Richard Bailey 17/05/2008 at 11:18 am #

    Let’s see, Lisa. I know that argument, but it will be interesting to see how values change now that the economy is turning after several benign years (the ‘nice’ decade).
    Will people still pay a premium for heavily marketed premium brands, or will they seek better value elsewhere (equivalent to me drinking Sam Smith’s beer)?

  4. navin gupta 05/06/2008 at 7:57 am #

    I navin gupta working as a corporate communication mamager in a real estate company and i want to know that how can measured the brand value of the company, how many things make support to brand value

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