Brand advertising is strategy to create loyalty and trust in a brand name and the quality it provides. Brands may be in any business sector, but the principles of advertising remain the same every time. There is no substitute for having a good name.
Everyone has heard of Guinness. Smirnoff is the world’s most popular vodka. Johnnie Walker is the top selling blended whisky on the planet. These are all significant brands in the alcoholic drinks market and each of them is regularly advertised and promoted by a competent branding advertising agency. While little is publicly heard of a company called Diageo, it is the biggest player in the global spirits market, and also very prominent in the wine and beer sectors.
Investors though know all about Diageo, as it is one of the FTSE 100 Companies on the London Stock Exchange and has a secondary listing in New York. Diageo is widely successful without much public recognition because the consumer is the important factor in the drinks market, not the parent company. Brand advertising concentrates resources to maintain and grow a brand. The obvious beneficiary is the ownership and its shareholders, but their names are irrelevant to the success.
The very heart of a marketing strategy is the branding. A multinational, owning a wide range of brands, will be keen to ensure that each brand retains its prominence in the mind of the consumer. This may not always be possible, but the failure of a single brand is unlikely to cause major harm to the company.