Brandname: Long Far
Company Name: Long Far Herbal Medicine Manufacturing (HK) Ltd
Management Function Analysis

The company recognizes that the creation of a brand is an important element of the promotional process, and is central to the use of promotion to convey a consistent message to customers about the nature of the organization and its products.

The company has been able to achieve one of the primary advantages of a brand, that is, the extent to which the brand can be used to differentiate its products from that of competitors. Such differentiation allows the development of imperfect competition and thereby competitive advantage for the company, in such a way that brands can sustain a price premium because customers perceive added value. In addition, the brand established by the company has encouraged repeat purchasing of the same and similar products. The customers having a good experience of one product with the brand tend to seek other products with the same brand, and have a sense of the type of quality, manufacture and value for money that they associate with the product. Creating favourable experiences with the company's brand has led to a degree of brand loyalty when considering repeat purchases. The company through its established brand image, has the advantage of promoting a series of products simultaneously. One promotional campaign can thereby cover a range of products.

Implications for SMEs

Three aspects of product/service development and promotion can be learnt from the experience of this company and they are "Product/Service/Corporate Differentiation"; "Product/Service/Corporate Image" and "Product/Service/Corporate Loyalty" Success in creating a differentiation, establishing a unique image and inducing customer loyalty would be winning strategy in a highly competitive market.