A-brand
An A-brand is a branded item with high brand recognition and a high quality experience. A-brands owe their fame and leading reputation to national advertising campaigns and because much attention is paid to the reputation and experience of the brand.
Consumers who choose A-brands often do so because they can identify with the brand and will not readily switch to another brand.
These target groups are willing to pay a higher price for A-brand products because of their reputation. The higher margins this generates are also necessary to pay for marketing activities and to continue investing in the brand.
Besides A-brands, there are also B-brands and C-brands. These products are almost identical to A-brands but in the strategy, competition on price plays a bigger role than brand perception, with or without concessions on quality and packaging. These competing brands also include private labels.
