Hi °C | Lo °C WE all know the power of having a strong brand. Just as people will drink Coke because it's Coke, they will avoid an own brand cola even if it is made of the same ingredients.
Now, Davy Stockbrokers are seeking to take advantage of the power of brands by launching its Global Brands Equity Fund.
The fund, which is managed by Davy Asset Management, has been set up to invest "primarily in companies which own some of the world's strongest brand names", claims the company.
It may also invest in companies which Davy believe can become the next generation of big brands.
Launched last year, the results so far have been positive, with the fund posting a 23pc return in 2012.
While it is a "long-only" fund, Davy has left scope to take other positions if required. The fund, which is being managed by Des Flood and James Forbes, invests mainly through equities but also bonds and other debt instruments.
So why invest based on the brand, rather than, say, the product?
"A successful brand can be a powerful drive of a company's profitability," say Davy.
"Customers may become attached to the values they feel differentiate the brand from its competitors.
"These customers can be relatively price insensitive and the successful brand can attract a premium price.
"For example Kelloggs can charge almost twice the price for its cornflakes that Tesco's own brand and over five times the price of the Tesco value brand," the firm adds.
Now with the growth in emerging markets and the emergence of the "new consumer" from that region, Davy feels there is scope for further growth among bring brands.
The fund's results have been good so far, but it is early days yet. Its performance will be judged over years rather than months.
Still, the fact that Davy is doing this is a further indication of the power of a good brand. There's a message there for all firms: defend your brand at all costs.
Digital heads set for DMX Dublin 2013
THE digital director for Obama's 2012 campaign, the head of new media for the London Olympics and one of Business Week's 30 Best Tech Entrepreneurs Under 30 are heading the bill at 'DMX Dublin 2013', the first digital marketing conference being organised by the Marketing Institute of Ireland (MII).
DMX Dublin will bring together over 500 senior-level attendees and speakers on March 13 in the Aviva Stadium.
Teddy Goff was the digital director for President Obama's 2012 campaign. He played a critical role in developing and executing the broader campaign's strategy for fundraising, organising, and communications.
Alex Balfour meanwhile led the London Olympics' new media campaign. Details on www.dmxdublin.com.
Voting open for Indo Grand Prix Final
VOTING is now open for the Independent Digital Grand Prix 2012 Final. The awards were set up to recognise brand and marketing managers for the "innovation, creativity and effectiveness" of their digital campaigns.
The winning campaigns receive a prize at the end of each quarter whilst also having the opportunity to go through to the 2012 Grand Prix Final.
The winner of the 2012 Grand Prix Final will receive a presentation and certificate, plus an ad campaign worth €10,000 on the Independent Digital network of websites. Voting closes on February 25, visit www.idworks.ie/grand-prix for more details.
Irish Independent
