Branding and Product Positioning Quiz

The primary objective of branding is to increase sales and gain market share by distinguishing a product from competitors.

Unbranded products lack a distinct identity or recognizable name, often found in generic, commodity-like items.

Branding involves creating a unique identity, building awareness, and promoting a product through marketing, labeling, packaging, and promotion, all adding costs.

Branding aids in promoting a product by establishing recognition and associating it with specific qualities, values, or image.

Retailers offering own-label products can leverage their brand image and control pricing without relying on external brands, but reaching a wider market share can be difficult.

The cost of goods represents the largest portion of a retailer's expenses, typically encompassing 70-85% of their total costs.

While the UK has the highest profit margins for UK food retailers, it is important to consider external factors and market conditions.

Premium private-label products have gained popularity, demonstrating a shift towards higher-quality own-brand offerings.

UK food retailers typically achieve an average profit margin of 8%, indicating a relatively high return on sales.