Question

Branding can be seen as a powerful means to secure a competitive advantage. How does the rebranding of its logo assist ABSA in securing a competitive advantage?

Answer 1

• Customer Loyalty - A brand can bring customer loyalty because customers will look for your brand when shopping for products that are offered in your industry. If for instance ABSA is offering something that Old Mutual is offering as well, customers will likely pick ABSA due to the familiarity in their brand.

• Customer recognition - Your brand will stand out to customers when they are looking for products. With so many products being offered, customers tend to overlook most of them. Having a good logo and brand will increase recognition in customers such that they will be more interested in your product from a bunch of products.

• Easy introduction of new products - So much money is often spent by companies when they want to introduce new products. Having a good recognizable logo and brand will reduce these costs because people will recognize the product more based on the logo which is something they already know. It will therefore reduce the marketing cost of the new product.