Why Is Trademark Important In The Food Industry

What do you think of first when you think of trademarks? Often the first thought is of the trademarks that you encounter on a daily basis and perhaps you wonder how much the name is worth. A trademark is an intangible asset that sums up various aspects of a product – name, design, packaging, reputation, history, and more. It allows businesses to improve their reputation through brand recognition and can help build consumer loyalty and reputation.

Trademarks can becomes a significant factor in consumer purchase decisions. Somewhere, it acts as the selling point of your goods and services. When it comes to the food industry, there is often a high importance placed on a trademark. How? Let us see.

Trademarks In The Food Industry

When it comes to food products, the most important element is quality. Food is one such product that is placed in an area that deals with consumer health and safety. Today, health and safety constitute a major factor in a consumer’s decision to purchase a particular food product. A trademark can be used to signify the quality level of a food product. When you buy a Nestle or Cadbury product, you have the assurance of the quality that comes with it.

Another reason that trademarks are highly important is that consumer loyalty often comes into play. Typically, notwithstanding the trademarks, consumers often choose the cheapest supplier of a particular food product. Because of this, brands may be unable to increase their price margins. But, when you are a reliable food brand, the loyalty of your consumers may allow for price increases without a loss of customers. This is because your brand instills trust and confidence as to the quality in the consumer’s mind.

In the case of food products, a deciding factor for consumers is often the brand itself, as opposed to the product being sold. As an example, a donut from Dunkin Donuts or chocolate syrup from Hershey will often be preferred over something whose quality cannot be trusted. Additionally, consumer preferences change with time. A trademark is also easily adaptable to the changing consumer preferences. For example, people nowadays prefer food with low sugar content. A brand can come up with sugar-free or low-fat versions to cater to these demands. For example, Nestle provides a variety of sugar-free and no fat versions of food mixes. People will often prefer Nestle products over an unknown brand as Nestle tends to provide reliable product quality.

A trademark can bind consumers to a product. The importance of trademarks in the food industry cannot be understated. If you intend to come up with a food product, you may want to consider branding it and getting a trademark for it.