A Billionaire's Brand Strategy

People are creatures of habit. This is an interesting article.

"Really, nothing can go wrong with the Wrigley and Mars brands," Buffett said on CNBC after announcing that he would finance part of McLean-based Mars's buyout of Wrigley. "They have faced the test of time over decades and decades, and people use more and more of their products every day."

"Brand name companies, said professional money managers who consider themselves brand investors, can often charge more for their products than their less-established competitors and weather tough times more smoothly because of their loyal customer bases."

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If you think about Coke vs. no-name cola - production costs are basically the same (same amount of aluminum, sugar, water, etc. ). Coke however has prominent shelf-space, marketing, brand, etc. The additional costs are spread out over billions of "sips" making it extremely difficult to knock them off.