To Brand or Not to Brand

The first decision is whether the company should develop a brand name for its product. Branding is such a strong force today that hardly anything goes unbranded,

Figure 4-3 An Overview of Branding Decisions

including salt, oranges, nuts and bolts, and a growing number of fresh food products such as chicken and turkey.

In some cases, there has been a return to "no branding" of certain staple consumer goods and pharmaceuticals. Generics are unbranded, plainly packaged, less expensive versions of common products such as spaghetti or paper towels. They offer standard or lower quality at a price that may be as much as 20 percent to 40 percent lower than nationally advertised brands and 10 percent to 20 percent lower than retailer private-label brands. The lower price is made possible by lower-quality ingredients, lower-cost labeling and packaging, and minimal advertising.

Sellers brand their products, despite the costs, because they gain a number of advantages: The brand makes it easier for the seller to process orders; the seller's brand name and trademark legally protect unique product features; branding allows sellers to attract loyal, profitable customers and offers some protection from competition; branding helps the seller segment markets by offering different brands with different features for different benefit-seeking segments; and strong brands help build the corporate image, easing the way for new brands and wider acceptance by distributors and customers.

Distributors and retailers want brands because they make the product easier to handle, indicate certain quality standards, strengthen buyer preferences, and make it easier to identify suppliers. For their part, customers find that brand names help them distinguish quality differences and shop more efficiently.

Salehoo Secrets and Tips

Salehoo Secrets and Tips

As with any web site, SaleHoo has a number of features that will help you in buying products from around the world. Once you have an account on SaleHoo, which only costs a one-time fee, you can establish up to twenty named searches for products. After that, any time those items become available, you’ll be alerted.

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