Question

Topic: Branding

Fight With Branded And Non Branded

Posted by Anonymous on 9/14/2005 at 1:40 AM ET 125 Points
WHY PEOPLE GO FOR NON BRANDED PRODUCT EVEN THOUGH THEY KNOW ITS NOT THE RIGHT CHOICE ?
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  • Posted by timo kruskopf on 9/14/2005 at 2:11 AM Accepted
    Are there non-branded products?

    If we think of brand as a trust mark: does retailer name give enough trustability to washing powder? When one brand cannot excel whole category argumentation all brand look the same: brand does not add any value to buyer.

    If we think of brand enhancing buyers personality (social values) no-brand is a brand also, differentiating person from others. Own initials embodied to a shirt has more social value than Polo or Boss mark.

    So again do we have non-branded products?

    Hope for good conversation on this issue...

    Timo
  • Posted by wnelson on 9/14/2005 at 8:28 AM Accepted
    I agree with Daniela (Hi, Daniela!) I have a friend whose son purposefully chooses non-branded clothing as a protest to not wanting to be the ones he considers to be pretentious and shallow who buy branded clothes. He views it as ridiculous to pay twice as much just to wear a label so everyone will believe you are "cool" like the people in the commercials for the labeled goods.

    As far as non-branded goods being not the right choice, as Daniela said, if these goods meet the needs of the customers, then they are the right choice. Ultimately, the customers are the deciding factor as to what is the right and wrong product. Products that they buy are the right ones. Customers vote with their wallets.

    I hope this helps.

    Wayde
  • Posted by michael on 9/14/2005 at 11:25 AM Accepted
    Bottom line is that the "branded" product has not convinced the customer that it IS the right choice.

    Often I will choose a non-branded product (actually store brand) if it is the same price as the "brand" because I know the store makes more money on it. That might be strange, but I'm a customer of the store, not the brand. I have no problem with them making money.

    Michael
  • Posted by mgoodman on 9/18/2005 at 9:03 PM Accepted
    Maybe blessan_matthew means why do some manufacturers opt to sell their products unbranded instead of branded, when they "know" that branded products (on average) command higher prices and enjoy greater consumer loyalty.

    If that's what he means, there are a couple of reasons:

    First, they don't REALLY believe that branding works. If they are totally absorbed in manufacturing, and functional/literal features, and they have never seen the power (magic?) of branding, they just don't "get it." The benefits of brand marketing aren't immediately obvious to a lot of people.

    Second, they are underfunded and have put all their money into manufacturing facilities, quality control, technology, etc., and there's no money left to put into marketing. So they don't have an option. Branding costs money, and you have to invest that money in advance of receiving any benefit. If you can't make the investment, you can't earn the rewards.

  • Posted on 9/21/2005 at 11:17 AM Accepted
    Consumers right now, in all the countries of this world, are PRICE consious.
    They want to buy something CHEAP and/or with special offer.
    BRANDED PRODUCTS need to work on the consumer to increase their LOYALTY towards their Brands.
  • Posted by mgoodman on 9/24/2005 at 5:09 PM Member
    With all respect, whitefeud, I disagree.

    Consumers right now are probably no more price conscious than they've ever been. And there's plenty of research showing that consumers PREFER to pay a PREMIUM price for products they perceive to be superior.

    Loyalty and price don't go together. If someone is buying a branded product because it's cheap, then the next brand in the category that comes along at a lower price will capture that consumer. That's not loyalty.

    Loyalty is when a consumer purchases your product time and time again because it represents the best overall value in that consumer's mind. Price is just one of many factors that go into that value equation.

    Usually it's not the cheapest brands that earn the greatest loyalty. It's the brands that promise superior benefits, communicate their positioning clearly and consistently, and deliver what they promise.

    It's the rare category where the cheapest brand consistently has the greatest market share.
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