Question

Why might a producer use a designer label to differentiate her product from that of another producer? Requirement 250 words or more

Answer 1

Designer label refers to the label used by producers in luxury brands for the marketing purposes . The objective of putting a designer label is to change the images of the company and to increase its level of sales in the market. According to them the more designer and attractive is the lable of the product the more will customers will get attracted to it and will result in increase in sales. Another Objective of using a designer label by the producers is that it will help to differentiate their product from their competitors who producer the same kind or product. Designer label is also to used to tareget any specific group of people who is more prone to the luxury brands . This type nof strategy is used by the monopolistic competition who mainly use this strategy to differentiate the product. Designer label used by the producers is to give the product higher brand value kr brand preference . This will show that there any substitute for the product which help to charge higher price fkr the product which results in profit maximisation