Why do they need to change brands frequently?

Generally, we think that a brand should be bigger and stronger in order to generate a huge additional value. for companies that want to become a world-class brand, this should be the case. But when I went back to my hometown this holiday, a conversation gave me a better understanding of the business.

The topic started from the golden period of CCTV's advertising bidding, and then talked about the yearly upgrade of liquor brands in the county seat. I think that if a kind of wine is sold well this year, it should continue selling well next year, enterprises should stick to their own brands, but in fact, the wines used by the masses in the county are not the same every year. Even if the same manufacturer changes one product name or even trademark every year. Then I talked about fertilizer from alcohol. My sister said that many fertilizer manufacturers also need to change brands every year. Even one manufacturer has to make several brands every year.

I asked my question: Why don't I try to make a brand bigger or stronger?

The reason is:
1. Local Enterprises (mostly small enterprises) are pursuing short-term interests. trademark names are often replaced to attract more consumers.
2. A company has multiple brands to help increase its market share. Consumers in small cities are more sensitive to prices and less loyal to brands. at the same price, users are generally randomly chosen (especially fertilizer) among many optional brands ). If a product has five brands in the market, if an enterprise runs one brand, the probability of the product being purchased is 1/5. If the enterprise runs four brands, although the same type of product is sold, the probability of being purchased is 1/2.
3. Change the brand, lose the credibility accumulated in the past, and lose the burdens left by the past.

 

Doing business is really a strange and distinctive thing.

 

In fact, it's not a problem to be a human. When you want to become a world-renowned brand, you can only create your own small brand in every enterprise.