Топики 1 курс / Brand_Management

Brand Management

Brand management is very important for business nowadays. It is the analysis and planning on how that brand perceived in the market, how that brand attracts customers or maybe different sponsors. Brand management can help company gain target audience and can help them form understanding of the brand. Efficient and correct brand management can lead to high sales of brand product.

One way of brand management is outsourcing. Outsourcing is a process of replacement production.

Most manufacturers produce their goods in low-cost countries nowadays. For example, Burberry has many Asian licensing arrangements, Coach has lifted all its gross margins by manufacturing solely in low-cost markets. But Domenico De Sole from Gucci said that luxury comes from Europe and must be made there to be the best. There are some advantages and disadvantages in outsourcing.

First advantage is better facilities for production. The outsourced company can have specific equipment and technical facilities better than outsourcing company. Secondly, outsourcing can give outsourcing company more time for production of other important things that they need. Thirdly, outsourcing company can reduce costs, because often production in low-cost countries is more cheaper than in developed countries.

On the other hand, there are also some disadvantages in outsourcing. Firstly, outsourcing company can lose confidential information, so outsourcing is very risky sometimes. Secondly, production in other country can lead to problem, because different countries have different laws. What is possible in one country can be impossible in another country. Thirdly, outsourcing company can’t always control production in outsourced company. Finally, some people don’t buy goods which were made in low-cost countries. For example, Japanese people choose to buy Burberry products made in Europe.

To sum it up, I want to say that outsourcing is very important nowadays. Outsourcing can be risky sometimes, but however there are a lot of companies which use outsourcing in brand management to reduce costs and to lift gross margins of company.