Our product is ceramic tile. We had two brands, A for high class (20% sales) and B for Middle class (80%). Recently, my boss want to increase sales percentage of A. He will produce A, little higher / same price with B (same quality also with B). Is it OK to do that? What about A brand image for a long term ? Our ads majority on A. Plese your advice. Thank you.
Jay’s Answer: You currently have two tile brands (A and B), positioned differently for different markets. I’m unclear if the product is different as well, or simply the branding/positioning is different (same product/different wording or different product/different wording).
Here are my thoughts:
- If A & B are different and your boss wants to sell more A, then he needs to increase the positioning benefit of A tiles (“what makes them better than the competition?”)
- If A & B are different and your boss wants to sell B tiles as A, that’s okay so long as you don’t mislabel B tiles (saying they contain a higher % of valuable materials when they don’t) and increase the positioning benefit of A tiles.
- If A & B are the same, and you’re selling to different markets (and not mislabeling), then that’s okay as well.
Where it’s problematic, is if you misrepresent the quality of the products (a lower-quality product is labeled as a high-quality product).