Brand Leaders

A brand leader commands the largest profit margins, of a given market. The brand is then most widely sold and has the most recognized product in a particular market segment. Brand leaders are specific to their group, for example, Coca Cola is a perfect example of a brand leader in the beverage market. Not only do they know that they hold most sales of all of the competitors, as brand leader they receive a lot of perks.Coca Cola has very high customer loyalty. Being a the most popular, and quality product ensures that the customers keep coming back for more.
Being a brand leader can be signal of quality too. For example, Louis Vuitton is currently the leader among luxury goods. Being a brand leader of this sort shows different advantages such post might hold. Louis V, being a brand leader receives a lot of free publicity. Of course, it is particularly the commercials that help earn the post, but after that, people are interested in the name, products and the companies actions - it leads to people talking - basically free marketing. The fact that it is a brand name, decreases price sensitivity in a customer. You would not pay $500 for just any bag or pair of shoes, but the fact that it Louis Vuitton makes it seem like a good buy even with the ridiculous price-tag. Such brand is admired, and has a high purchase intent. This means that it can expand. Although it may have been originally bags, now this brand makes belts, scarves, or shoes. The fact that it is a brand leader provides a platform for expanding the product categories.