Brand and Packaging Decision (2)

Section 2 Brand Strategy

1. The benefits of branding to sellers:

(1) Provision of brand name can make seller easy to manage orders

(2) Registered trademarks can protect the product features of the company and prevent others from copying or plagiarism.

(3) Branding makes it possible for sellers to attract more brand loyalty

(4) Branding helps companies segment market

(5) A good brand helps build a good corporate image

Branding benefits to buyers:

(1) The buyer can understand the quality of various products through the brand

(2) Branding helps buyers to improve their shopping efficiency.

Unbranded products: refer to unbranded, easy-to-package, inexpensive general products that are sold in supermarkets

2. Brand user decision

(1) The company's three options:

Own brand

Middleman brand

Your own brand and middleman brand

(2) The advantages and disadvantages of middleman brands


Middlemen must spend a lot of money to advertise and promote their brand.

The middlemen must make large orders, and therefore have to put a large amount of money on commodity stocks and bear some risks.


Can better control the price, and can control the supplier to a certain extent to lower the purchase cost, so the sales price is lower, the competitiveness is stronger, can get higher profit

(3) Advantages of middlemen in brand battle

Retail business has limited business area

Middlemen can win the trust of consumers

The price of the middleman brand is usually set lower than the corporate brand

Big retailers put their brand on the store’s eye-catching place

3, brand quality decision

Brand quality: refers to a comprehensive scale reflecting the value attributes of product durability, reliability, and accuracy

(1) Initial quality level

(2) How to manage its brand quality

Improve brand quality

Maintain product quality

Gradually reduce product quality

4, family brand decision

(1) Individual brand decisions

(2) Uniform brand name

(3) Different brands use different brand names

(4) Combination of company name and individual brand name

5, brand expansion decision

Refers to companies that use their reputation for successful brand names to introduce improved products or new products

Or the company adds a product that is too simple in the low end of the durable goods category to promote the low price of various products in its brand.

6, multi-brand decision

Refers to the company's decision to operate two or more competing brands at the same time

The main reasons why companies take wrong brand decisions:

(1) Take up more shelf area

(2) Attract more customers and increase market share

(3) Contribute to internal competition and improve efficiency

(4) Go deep into each different market segment and occupy a larger market

7, brand repositioning decision

Influencing factors:

The cost of transferring a brand from one market segment to another

How much income the brand earned in the new location