GMM Lecture 5

Brand strategies

Brand strategies include:

Manufacturer’s brand – (manufacturer) higher profit margins, (distributor) branded goods attract customers (customer) quality assurance, but (manufacturer) difficult for SMEs (distributor) competition (customer) premium price
Private (distributor’s) brand – (distributor) higher profit margins, (manufacturer) quick market entry, (customer) availability of low-priced goods, but (distributor) consumers can switch stores, (manufacturer) loss of identity and (customer) brands can no longer function as simplifiers
Multiple brands for the same market – market segmentation, new product introduction and retail space, but higher marketing costs and loss of economies of scale
Local brands – quick market penetration, but higher marketing and inventory costs
Uniform world-wide brands – economies of scale, appropriate for culture-free products, easy recognition, no brand confusion