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What Is a Brand Leader?

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  • Written By: Osmand Vitez
  • Edited By: PJP Schroeder
  • Last Modified Date: 24 March 2014
  • Copyright Protected:
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    Conjecture Corporation
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A brand leader is the company that often has the highest sales or most recognition in a particular market segment. The company usually spends copious funds on maintaining this position. When a business achieves brand leader status, it can often command its profits through aggressive pricing strategies. Certain industries may allow the leading company to become a monopoly or oligopoly depending on the other businesses in the industry. In an oligopolistic industry, the leader can dictate the actions of other businesses as they attempt to mirror the leader’s actions.

Becoming a brand leader takes copious amounts or work and capital. Two of the most important attributes are vision and communication. A vision allows a company to develop a picture of the current industry and where or how the company wishes to change a particular market segment. Both employees and customers often need to buy into a company’s vision. Only through this support can a company become a leader and weather all types of economic trials, both up and down in the market.

Communication needs both upward and downward channels in order for a company to achieve brand leader status. Upward channels allow consumers to provide a company with information on products or other items. The company can alter operations in order to take advantage of consumer demand. Downward communication channels represent the methods by which a company informs consumers. Though upward and downward are often the most common communication channels, multiple options exist for communicating with consumers.

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Motivation is often a common attribute shared among different brand leaders among several market segments. Though each brand leader often has profit as a main goal, other motivational factors may exist in these businesses. For example, companies may desire the largest market share, best product quality, or highest customer retention among all businesses. These goals may be secondary to profit or as additional goals in order to achieve the highest profit possible. Motivation for a business typically comes from the owners and executives.

A market’s brand leader is rarely inactive in its operations. The company constantly looks to take action and capitalize or leverage various situations into boons for the business. Flexibility is often key when a company needs to take action on changing market conditions. The leading company must be able to recognize changes and take advantage of trends and alterations to consumer demand. Once the company reaches brand leader status, it can often dictate the market through its own operations and products.

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