The Advantages of Branding to a Manufacturer

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Manufacturers produce a variety of items that are brought to the marketplace for sale. While some products are generic, others are branded. A branded product is recognizable to consumers by either its name or symbol. Products that develop a strong brand offer several advantages to the manufacturer.

Manufacturers produce a variety of items that are brought to the marketplace for sale. While some products are generic, others are branded. A branded product is recognizable to consumers by either its name or symbol. Products that develop a strong brand offer several advantages to the manufacturer.

Recognition

When a manufacturer is successful in developing a strong brand, the result is customer recognition. A customer may need only to see the name or symbol for it to trigger a reaction. If the reaction is positive because the customer had a good experience with a quality product, he is more likely to make a purchase. When the products of several manufacturers line the store shelves, the recognizable product has a competitive edge over brand X or brand Y.

Distribution

When your brand is recognized and develops a reputation, it becomes a hot ticket item and is in demand. Basically, if consumers ask for your product by name, retailers want it on the shelves. Outlets carrying the product will want more of it, while other outlets will request it. Like a self-fulfilling prophecy, the more the product is distributed, the higher the exposure. The result is increased sales.

Pricing

Branded products command a higher price in the market place. Customers are willing to pay more for a product that is well known, as opposed to a less popular brand or a generic option. Higher pricing translates to bigger profits for the manufacturer.

Loyalty

Once a customer gets hooked on a particular brand, he often becomes a customer for life -- or at least until a new brand comes along and grabs his attention. Customer loyalty is a valuable advantage to a manufacturer. Not only does it mean future sales of the product to that customer, it can also mean increased sales as the loyal customer makes recommendations to others. Manufacturers occasionally design customer loyalty programs around branded products offering coupons, rebates and other incentives to keep the loyal customer happy.

Additional Perks

A brand that soars in popularity and sales may be able to make the leap into licensing agreements which creates an additional revenue flow to the manufacturer.

Strong brands typically garner prime placement in retail stores.

New products introduced by the same manufacturer may be readily accepted by consumers due to its affiliation with the branded product. The new product rides on the coat tails of its popular predecessor, and reaps the benefits by association.

References

About the Author

Cindy Phillips began writing feature articles in 2007 with her work appearing in several regional newspapers. With more than 30 years experience in the corporate arena, her business expertise includes all aspects of marketing and management. Phillips earned a Bachelor of Arts in English education from SUNY New Paltz.

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