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Brand profit determines value types, cabinet companies clarify competitive strategies

by:Hench Hardware     2021-09-06
For cabinet companies, brand profitability is jointly determined by market share and product attributes, or in other words, the competitive market in which the brand is located. Therefore, it is very important for future market activities to recognize the brand value owned by cabinet companies and formulate reasonable brand goals.

   Therefore, for the value analysis of the cabinet brand, two aspects should be considered at the same time: First, whether the brand product is 'excellent value' or low in terms of its attributes (quality, performance, specifications, technology and service, etc.) Value; second, is the relative market share of branded products high or low.

   Through these analyses, analyze the existing corporate brand and product brand, and then select the best combination. The results of the analysis will form four combinations of low-grade brands, low-value brands, ride-hailing brands, and premium brands.

   There are different value types in the profitability of cabinet brands

   low-grade cabinet brands have low market share and profit margins. The reason why they have become low-grade brands is that their brand characteristics have been or are losing their competitiveness in the market.

   low-value cabinet brands have a high market share or share, but their profitability is relatively low. This is because the overvalued part of many such brands (profits based on share), in most cases, is eroded by its huge costs, which usually do not come from the actual economic costs of operation. And it mainly comes from the management cost of managing a huge and bloated organization and the marketing cost (such as advertising cost, promotion cost, etc.) in order to continuously expand market share.

  The hitchhiking cabinet brand has a relatively low market share, but it has a relatively high profit margin. This is why it is called a ride-hailing brand because these brands are mainly concentrated in small-scale, high-quality markets, and have the ability to continuously change and diversify innovation in line with market changes and customer needs.

   Premium cabinet brands have relatively high market share and profit margins. Value-added brands have the most favorable market position and competitive advantage in the competition, and they are of course market leaders. This type of brand not only has excellent quality attributes-in terms of quality, performance, specifications and services, but also has the ability to maintain these qualities.

  Brands with different values u200bu200bshould adopt different competitive strategies

   For weak brand cabinet manufacturers, the primary problem in implementing brand strategy is to do a good job of market research, determine reasonable market positioning and target market selection, and avoid direct confrontational competition with strong cabinet brands as much as possible.

   If there are many ride-hailing brand manufacturers in the market and the competition is already fierce, the ride-hailing cabinet brand manufacturers should carry out market transfers in a timely manner according to the brand market conditions, avoiding the truth, and constantly creating brand differentiation advantages through the development of new products.

   Low-value brand cabinet manufacturers must always measure the input-output benefits of the regional brand market, balance the long-term and short-term benefits of brand operations, implement cost savings based on the principle of maximizing brand benefits, and optimize the allocation of brand resources.

   Value-added brand cabinet manufacturers should continuously increase market entry barriers through continuous product innovation, technology development and research, and strong marketing resources to maintain their brand leadership.
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