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Why do quality brands also create lower quality brands? (Shall we call you Finlux or do you want to reveal your real name, VESTEL?)

  • May 13, 2024
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We know each brand by the image it radiates. Some are about trust, some are about affordability, some are about innovation and some are about sustainability. The list

We know each brand by the image it radiates. Some are about trust, some are about affordability, some are about innovation and some are about sustainability. The list goes on, but you get the gist. from any brand There is one area where he has made a name for himself and these brands are in their sector a certain quality It symbolizes.

So why are brands like Vestel and Arçelik, which symbolize a certain quality in their sector, relative? lower quality Do they also make brands?

For example, Finlux is produced under the Vestel umbrella and Altus is produced under the Arçelik umbrella.

Let’s give an example again with these two brands. Luxor, Finlux and Regal It is produced under the Vestel umbrella.

Altus, Grundig and Hotpoint It is produced under the Arçelik umbrella.

A similar situation Turkish Airlines and AJet Also valid for.

Let’s not beat around the bush. One of the possible reasons for this is to appeal to customers from all budgets.

Being a high-quality and well-known brand generally means this have high prices is associated. However, not every consumer is willing or able to pay these prices. It may not be financially sufficient.

For this reason major brands such as Vestel, Finlux and the like sub-brands by subtracting more to low-income consumers aims to appeal.

In this way, brands compete with their rivals by offering different prices and expanding the market. to a wide area can address.

“Why doesn’t he offer the low-priced product under his own name?” If so, this brings us to the second reason. Image!

Companies, parent brand To uphold the image of luxury and high quality, Lower quality or cheaper products are often offered under a different brand name.

This way the main brand without damaging its image They aim to reach different consumer segments.

In summary, if brands aim to sell to people from all income groups, low or high, and do not want to disrupt the existing attitude of their main brand, low-end products under a different brand name prefers to offer to consumers.

Source: Vestel, Arcelik

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