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What Is a Brand Leader?

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  • Written By: Osmand Vitez
  • Edited By: PJP Schroeder
  • Last Modified Date: 31 August 2014
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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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fify
Post 3

@ysmina-- I'm no an expert on economics. But I don't think it's a problem for there to be a brand leader or market leader in a free market.

You are right that in a free market, no single player should dominate the market as a whole. But that actually means that all players should have equal opportunity to participate in the market. But it's natural that in a market, some manufacturers will do better than others. If a brand or company continues to have the highest sales and the most customer, we can't really say that it's a monopoly. It would be a monopoly if the rules were unfair and if the other companies were not allowed to sell more or make more money. At least, this is how I understand this issue.

ysmina
Post 2

Isn't one of the rules of a free market that no single company should monopolize the market? How can there be a brand leader in a free market then?

burcinc
Post 1

For a second, I thought that a brand leader is the "brand face." This is usually a celebrity or a well known person that becomes the "face" of the brand and endorses it on various platforms.

I actually criticize celebrities when they accept to be the "face" of dozens of brands just for the extra money. Some of them don't even use those brands in real life and would not even buy those products. It seems like such hypocrisy to endorse something that one doesn't like in reality just for money.

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