Consumer brands are middlemen There are a few points to remember about consumer brands. First, these companies are usually some kind of middlemen. They stand astride their respective industries, taking raw, semi-finished, or even finished goods from manufacturers, then distributing those items to retailers or other companies. While each industry has its own peculiarities, the basic point is that consumer brands are in the middle of their industries, not at one end. This fact weighs heavily on how to evaluate these companies.
Marketing is important Second, marketing is a crucial factor in the success or failure of a product.
Unfortunately, marketing is notoriously hard to measure, and it seems the effectiveness of an advertising campaign doesn't show up until the company has poor sales the following quarter. Third, because of their position as middlemen, consumer brands companies must work to create distribution channels. By distribution channel, we mean the way a company gets its products out to consumers. Stronger companies have larger, more diverse distribution channels, which helps them fend off the inevitable problems that strike industries from time to time. Let's look at these three points individually.