Estate Living Digital Publication Issue 2 February 2015 | Page 35

INVESTMENT SAVVY

INVESTMENT
SAVVY

The relationship
between an iconic
brand and
well-performing
shares

The world’s most iconic brands,
those such as Google, Nestlé and
Samsung, are just as important
for shareholders as they are for
consumers. This is according to
Grant Alexander, Director of Private
Client Holdings, who explains that
brand-buildingactivitiesandfinancial
performance are linked. “Brand
value is based on the concept that
the owner of a well-known brand
name can generate more money, as
consumers believe that a product
with a well-known name has a
higher value than products with less
well-known names. A trusted brand
is a treasured asset and is extremely

35

valuable to companies because
they are valuable to consumers.
Companies are bought and sold
for large sums of money – not just
based on the value of factories,
patents and processes, but on the
strength of their brands.”
“The fact that people will pay more
for a branded product than a generic
one, and more for a favoured brand
than the alternatives, makes a
brand that has forged a strong and
lasting relationship with consumers
an obvious and dominant market
player,” explains Alexander.