Brand must be expensive

Many companies want to create a cheap and good brand, the desire is good and beautiful, but this should not be the primary purpose of building a brand. Because if you start with a low price, your brand is hard to set up. To be a brand, it must be expensive.

Brands must be expensive, cheap brands have no advantage to talk about

Judging from the competitive environment and competitive means, branding is to get rid of low-price, low-margin homogenous competition.

The same quality, lower price, this is almost the nature and instinct of all operators. Therefore, cheap products are always too many and mixed, so branding should be avoided in the beginning.

The basis of a low-cost competitive strategy is low cost. In China, the low price strategy is not a real low-cost exercise. When a company has no money to make, unscrupulous companies appear, and they begin to do adultery, and there is no minimum, only a lower one. This kind of game follows the reputation of a branded company. Can you play well?

Low price, low profit, and branding are actually a pair of contradictions. First, if low prices allow companies to have competitive advantages and survive, they will not have to spend time trying to make a brand. Second, low-price competition will inevitably lead to low profits, and low-margin companies will not be able to invest in brands. Incomplete branding is a high investment, but no investment must be done without branding. Third, from the point of view of consumer purchase motives, the purchase of branded products is based on the values ​​of safety, confidence, and other common products. Low prices are just a high-value reduction and counterproductive. If the brand product is mixed in the low-price product circle, the price becomes a factor of sensitivity higher than the brand quality, and the brand effectiveness is reduced, that is, the value driving force of the brand is reduced. Fourth, judging from the law of brand development, brands are always the first to emerge from mid-range and high-end products, and gradually spread to low-end products. Low-priced products only appear to be “forcibly” helpless before they emerge.

Brands must be expensive, but prices are not expensive

There is also a view that ordinary people eat and drink meat, poultry, eggs, vegetables and milk that should not be branded. When they do a brand, they increase the price. This is really an illusion and misunderstanding.

Regardless of whether or not a brand is present, the origin, characteristics, cost, and quality of each product are different, and the cost price is not the same. As mentioned above, branding must be a priority for quality products, and prices are higher than ordinary products. Branded products are expensive, but market prices are not expensive.

Brands, not decorations, are the means and tools for the survival of products and enterprises. They are expensive, are caused by the brand and marketing laws, and are the necessary requirements for successful brands. Combining the purpose of the brand with the purpose of the company's vision, hating the brand's customers in the whole world is a wishful and meaningless move.