On this page we will discuss the aspects related to the creation of your trademark and will compare it with distributing of the brand formed by manufacturer. Let’s call it "other" company’s brand.
Development of unknown or little-known brand on the market entails certain material costs and significant efforts from potential distributor.
If new product has to be launched to the market, why not to put all these efforts in promotion of your "own" brand.
Let’s try to look into this and compare possible stages between launching the "other" company’s brand or "own" brand.
|Searching and choosing of potential product||V||V|
|Establishing contact with manufacturer||V||V|
|Considering of appropriateness of launching new product||V||V|
|Registration of trademark||V||-|
|Purchasing of batch of products||V||V|
|Promotion, marketing, advertising||V||V|
|Distribution and Sales||V||V|
|Expansion of the range of products||V||V|
What we see? Most stages of launching coincide between "other" and "own" brand, except of 2 phases of designing and registration of the "own" trademark.
Obviously, this entails certain effort from your side, but if you look at the whole picture, it becomes clear that the all energy aim at creation of your "own" band vary just a little from launching of a ready-made brand on the market.
Beyond that, with right approach to creation of your brand, you can significantly reduce not only amount of initial costs, but also cost of finished products in general.
How this is done, we described on page Sub-contracting, but will hint here, expenses for launching and cost of finished products can be significantly reduced, by using sub-contracting with LLC "Pelen".
In the meantime, let us concentrate on main advantages of working under you "own" brand.
Evidently that, it is always good to be the only person who offers certain product. Of course you can come to agreement with the owner of existing brand about granting exclusive right of distribution of the product on a certain territory to you. But such an agreement, more often than not, entails an impressive amount of money and liabilities about minimum order and frequency of purchasing. Besides it there is a risk of losing exclusive right for already well-promoted product if you derogate from the Contract or it expires.
In this way, brand owner has an additional and very powerful tool of pressure on you, which often leads to price rising or/and additional Draconian conditions
When working with your "own" trademark - you are the only one who has the right on the product and are entitled to conduct their independent business strategy.
Savings of finds, time and efforts while extension of product line.
Any business aims to expand its range and take a large part on market. We believe you are not exemption from the rule.
Imagine that we found a good product and successfully launched it to the market under an "other" brand. Product has a good reputation, buyers and stores are happy. And, now, it's time for expansion. But this manufacturer does not have a product that suits us. At the same time product we are looking for can be found with other manufacturers. In this case, we actually will have to start everything from the beginning, develop product from the scratch and persuade customers in a quality of the product.
When, on the contrary, having your "own" trademark it is easy to introduce new products using as advantages of established reputation and hard-won loyalty of customers.
As a result using "own" trademark while extending the range we at the same time earn benefits as well as reduce our expenses with a head start.
You are almost completely independent from certain manufacturer or supplier:
You have a chance to gather under your "own" brand the best items of different manufacturers, accumulating power and recognition on the market.
You won’t become anyone's hostage, in fact, over the time, owner of a good brand can dictate conditions to manufacturers.
Trademark is a powerful financial asset:
As any financial asset trademark can be sold.
Based on your "own" brand, you can create a full-fledged franchise.
If you wish you can even mortgage your right for "own" brand to the bank.
Distributor of "other" trademark does not have such opportunity.
Please visit our page Sub-contracting, telling about right approach when creating and developing of products under "own" brand.
We would be glad to answer any questions and suggestions.
To get contact information, please visit page Contacts.