Mkt624 Assignment No. 2 Solution
Wednesday, January 05, 2011 Posted In Mkt Edit ThisSub: Branding Strategies!
Solution Q # 01
Although family branding hold a strong and successful position in the market but the potential disadvantage is that the market has already established certain perceptions of the brand. For instance, a company that sells low end, lower priced product may have a brand that is viewed as an economy brand. This brand image may create costumer confusion and hinder the company if they attempt to introduce higher end, higher priced product using the same brand name.
Additionally, with family branding any negative publicity that may occur for one product within a brand could spread to all other products that share the same name.
Under product branding strategy approach, new products are assigned new names with no obvious connection to existing brands offered by the company. Under individual product branding the marketing organization must work hard to establish the brand in the market since it cannot ride the coattails of previously introduced brands. The chief advantage of this strategy is it allows brand to stand on their own thus lessening threats that may occur to other brands marketed by the company. For instance, if another company brand receives negative publicity this news is less likely to rub off on the company’s others brands that carry their own unique names.
Additionally brand can create financial gains through the concept know as brand equity. Under a product brand strategy, each brand builds its own separate equity which allows the company, if they choose, to sell off individual brands without impacting other brands owned by the company. The most famous marketing organization to follow this strategy is Procter and Gamble, which has a historically introduced new brand without any link to the other brands or even to the company name.
