Posted in Marketing and Strategy Terms, Total Reads: 4152
Definition: Manufacturer Branding
Manufacturer Brand also called producer brand or national brand is one of the two types of the brand. In simple terms, merchandises carrying manufacturer’s brand name rather than private label i.e. brand is owned by the producer.
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.
Customers usually believe that manufacturer brands are of better quality than retailer brands because of the low prices offered by retailer brands. 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.
For example- Many successful clothing designers have licensed their manufacturer’s brand name outside the clothing category to include cosmetics, perfumes and jewellery.