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Multi-brand Pricing

 

DisciplinesMarketing > Pricing > Multi-brand Pricing

Description | Example | Discussion | See also

 

Description

Sell the same product but packaged and branded differently, at different prices.

Market each branded item at different markets, for example with more elegant packaging in a higher-priced market and plain, minimal packaging in a 'value' marketplace.

Example

A chair manufacturer has a flexible production line that can easily be reconfigured to produce a range chairs at the same cost. They product variants with different shades and shapes and market these into very different markets with brands that are targeted at the people in each marketplace.

A toy importer boxes the same toy differently for a set of different resellers.

A toiletries manufacturer produces a range of toothpaste with different tastes but the same basic tooth-cleaning content.

Discussion

Many chemical products, such as toothpaste and hair conditioner, use essential the same chemicals, yet appear as many different products with different names, smells, tastes and packaging, often from the same company. In such situations you can dress up the product very differently. Even when the basic formula varies, if you can easily create different branded items for the same cost, you can still sell these very differently.

A brand is effectively a promise. It tells you things such as how you will feel when you buy the product, how others will admire you, how reliable the product is. Brands are also illusions in that experience is more of a mental thing rather than the physical reality of the product. Of course the product must work as advertised, but beyond that, there is a lot of scope for smoke and mirrors.

See also

Brand management

 

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