Manufacturer Branding
This article covers meaning, importance & example of Manufacturer Branding from marketing perspective.
What is Manufacturer Branding?
Manufacturer branding is a marketing strategy where in a manufacturer creates a brand for themselves. As a part of manufacturer branding, a goods producing company uses branding elements like communication, message & logo to create a brand for itself and thereby build a strong brand & loyal customer base. In simple terms, merchandises carrying manufacturer’s brand name rather than private label i.e. brand is owned by the producer.
Importance of Manufacturer Branding
There are several manufacturers who are solely focused on production of goods. They act as wholesalers of manufactured goods and other brands sell those goods under their own brand name. However, some manufacturers go that extra mile and also brand their own manufactured goods. When manufacturer market goods under its own name that brand is known as manufacturer brand. Manufacturers opt this branding to attract existing loyal and satisfied customers by transferring their loyalty to manufacturer’s other products also. Marketing and distribution responsibility is carried by manufacturer. Mostly manufacturer brands are supported by huge advertising budgets. Brand identity is linked with manufacturer’s image. Manufacturers opt for this kind of brands when manufacturer has strong and positive image. Manufacturer brand is also called as producer brand or national brand.
Advantages of Manufacturer Branding
There are several advantages when a manufacturer brands themselves. A few benefits of manufacturer branding are as follows.
Build Trust
Manufacturer branding helps build trust with existing customers and also attracts new customers with a brand which values itself.
Product Differentiation
By brand building, a company can differentiate itself with the competitors and position itself appropriately with its intended target audience & market segment.
Enhance Credibility
A good high quality product along with a strong branding helps increase the product & service credibility.
Positive Perception
Customers usually believe that manufacturer brands are of better quality than retailer brands because of the low prices offered by retailer brands.
Sales & Profit
Reason of high cost of manufacturer brand is due to cost incurred due to distribution channel. To fight with low price retailer brands many producer brands have launched low price alternatives.
Example of Manufacturer Branding
A few examples of manufacturer branding are as follows.
1. Sony is a large conglomerate which manufactures consumer electronics. All its products are also marketed under the Sony brand name.
2. Adidas is a sports equipment & apparel manufacturer which produces as well as markets its goods under the manufacturer brand name of Adidas.
Hence, this concludes the definition of Manufacturer Branding along with its overview.
Browse the definition and meaning of more similar terms. The Management Dictionary covers over 1800 business concepts from 5 categories.
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