Posted in Marketing and Strategy Terms, Total Reads: 1012
Definition: National Brand
The brand name of a product owned by the producer or distributor which is marketed nationally is the national brand. They are usually owned and marketed by large manufacturers. For example: Parle is a national brand for food products. National brands usually have a national level distribution system.
Private label brands on the other hand carry the brand of the retailer rather than the producer. Local brands are distributed in some parts of the country. National level brands are usually priced at a higher rate compared to local brands. The primary reason of that is in national brands, the cost of promotion and advertising is also included in their prices. Local brands normally do not have a great deal of marketing cost and can keep their costs low.
National brands are generally owned by companies with abundance of natural resources. National level advertising and promotion is done for national brands. National brands mainly focus on product differentiation . They focus on feature to a less deal and do not normally go on a price war with the local and the private label brands.
National brands have difficulty building entry barriers to private label brands as the private label brands are launched by the distribution channels themselves and have control on the entry and end user prices.