Disadvantages of branding PDF

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Note on the disadvantages of branding...

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DISADVANTAGES OF BRANDING

• Leads to Monopoly It leads to some kind of monopoly known as brand monopoly.

• Create Confusion Consumers become often confused in product selection. The situation becomes more difficult when all the brands carry as assurance of similar quality and value satisfaction.

•Commands Premium The popularity of brands renders them out of the common man’s reach because they command premium prices Good.

•Substandard Goods When the brand name becomes popular manufacture Expensive Building up brand recognition and loyalty is very expensive. Particularly, small sized companies cannot afford it.

• Increase Cost Branding needs heavy and widespread advertising, attractive packaging and effective sales promotion. This raises the retail prices of branded goods given by 22% to 30%. It affects the cost adversely....