Question

Topic: Branding

Second-tier Supplier Branding?

Posted by g101v on 6/21/2012 at 1:04 AM ET 250 Points
I work for a company that is the national distributor for a variety of brands. One segment of the products we sell will soon be available on a wholesale basis (ie we distribute via resellers), so we are essentially taking ourselves out of this market where previously we were selling direct. We are sensitive about using our own brand here as our resellers will think we are competing in the same market.

My question is: Where does a second-tier supplier's brand sit in this equation? To end users of this segment, do we only use the product brand(s) and continue to use our brand in the markets where we still sell direct?

Any advice from those with experience much appreciated!
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RESPONSES

  • Posted by Peter (henna gaijin) on 6/21/2012 at 4:26 PM Accepted
    If I understand right, you are currently selling a product direct to end users, but in the near future you will be selling to to resellers who will sell to the end user? And you want to add a product in under a new brand that you will sell direct and will compete with the major brand?

    Normally, branded products can charge a premium price, where unbranded or store branded products are sold as value products (lower price).

    But, if you are selling the branded product to the resellers and also selling your own product which competes with this branded product to end users, you have a conflict that I suspect the branded product company won't like (and may drop you as their channel for your country).
  • Posted by g101v on 6/25/2012 at 11:54 PM Author
    Hi Peter,

    Thanks for your reply, no the products we sell direct will not compete with the ones we sell via resellers. However, historically our company brand represents a competitor in the market (as we used to sell these products direct), so we need to refocus the branding to be about the product brands rather than our company brand.

    My concern with this approach is that by not using our company brand there might be a bit of confusion about where they are coming from? We are setting up a website for the product ranges separate from our website, but I'm wondering how this should be branded. We will have the brands of the 3 product lines, but should we include our own branding, subtly, to show that we are the wholesaler?
  • Posted on 7/2/2012 at 5:16 PM Accepted
    A brand is your promise to deliver a unique benefit to your target audience. If you have multiple brands, each making a different promise, you'll confuse your customers. So fewer brands is better. Don't include your own brand -- unless your promise of value is greater than that of the brands you sell.

    By the way, this is researchable. You might want to talk to a professional market researcher.
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