[MUSIC] Hi, welcome back. In the last module, we talk about defining your product strategy and managing it. The focus of this module is to develop a compelling brand for your product. We're back at fnac. Today, I hope we can catch some customers to interview them for our lecture. The first topic that we will discuss is of course brands. So, what is a brand? Let's ask some people. >> Well for me a brand is to be comfortable buying a product and to trust it, to trust the product, and to trust the brand at the end. >> A brand can be what a consumer thinks of a, once she or he listens the name of the brand. What type of promise this brand is making to a consumer and what benefits it can provide to them. >> A brand could be like a sort of promise a company makes to you, or maybe also an experience you enjoy when you buy any specific product. [MUSIC] >> I want to share the results of a research in Spain where we asked the same questions to 500 people. Please look at the results. [MUSIC] As you can see, there are different perceptions of what a brand is. By watching the lectures of this module, you will come to your own conclusion of what a brand is. But the more important question might be, why do you need a brand? Let's look at the answers from some of the people in the store. >> Because a brand provides the consumer another type of trust, credibility. They know that if the product doesn't work well, there's going to be a company that's going to provide a solution or replace the product if necessary. >> Well, I think that it helps very much difference, some products from other one. And I think brands also provides credibility. >> Sure, sure, because I think there is a lot of competitors and you have to be different from each one of them. [MUSIC] >> I hope that by the end of the MOOC you're convinced that brands are a worthwhile investment for at least four simple reasons. The first one is that a strong brand adds value to your product and how? By differentiating you from competitors, by helping you achieve recognition or even by clarifying to customers what to really expect for you. Let's ask some customers. Let's talk about the last big purchase that you made. What was it? >> It was a car. [LAUGH] >> Yesterday I made a reservation for a hotel in Brussels because I'm going there next week for an interview. >> And we bought some furniture. >> So would you have bought that car if it had no brand? >> No, definitely no. >> Why not? >> Because I trust the brand. It's a brand that has a history that, I don't know, I feel comfortable with it. >> No because I know that the price of the room, it has to be ready with the servers that the hotel is providing you. And any hotels, I know that they're going to provide a good service. >> So do think you'd like to do business with companies or brands that you're familiar with? >> Yes, yes, absolutely. >> Yes, just with brands that I have known, I don't know, since forever. >> Second is people tend to do business with companies they're familiar with. If your branding is consistent and easy to recognize, it can help people feel comfortable at ease purchasing your products and services. Secondly a strong brand is capable of building loyalty towards your product. It generates referrals. People love to tell others about the brands they like. People wear brands, eat brands, listen to brands and they're constantly telling others about the brands they love. On the flip side, you can't tell someone about a brand you can't remember. But don't take my word for it. Let's go back and ask some customers. What are you going to buy today at fnac? >> An Ipad. >> And Ipad? >> Yeah. >> So that particular brand. >> Yes, yes, I have one already, but it's not mine. A friend of mine lent it to me and I'm very, very happy with the experience so I make a decision to buy one for me now. >> Came to buy a camera for my girlfriend and was looking at this one that is pink and I like it for her, but I don't think I'm going to buy this one particular because I don't trust the brand at all. >> Will you consider a different brand? >> No I dont think so. >> It's a purchase that requires a lot of effort in finding which one because your going to pay a certain amount of money for it. I'm always going to choose a brand that I trust, that I think their going to give me a good product. >> We will talk more about customer loyalty within the context of the customer experience in module five. Third, your brand provides motivation and direction for your team. A clear brand strategy provides the clarity that your staff needs to be successful. It tells them how to act, how to win and how to meet the organization's goals. It also helps them by providing clarity and focus on what your brand stands for. Lastly, a brand also creates value for your organization by generating an asset. For those of you who have seen the reports about the most valuable brands in the world, >> These are real values in the balance sheet of companies. If they are sold, they can achieve higher prices because of their brands. Think about the brands that you purchase, Coca-Cola, Apple, Ford, Frito-Lays, etc. Are these company really worth their equipment, their products, their warehouses, or factories? No, these companies are worth much more than their physical assets. Their brand has created a value that exceeds their physical value. We'll talk more about this topic in module three. I hope that you're excited about branding your product. This module, I will take you through a process that will help you to develop your brand. It is simple, but it requires some homework on your part. Since we need to collect the input which will help us to make your brand puzzle. This is the topic of our next lecture. See you there. [MUSIC]
