6 branding strategies which companies use in order to build a healthy balanced mix in their brand portfolio which is right for the image of the brand.
- Line extension
- Brand Extension
- Multi Brands
- New Unique Brand
- Co-brands
- Umbrella Brands
Like every other strategies even the above mentioned strategies have some pros and cons to it.
Merits of Line and Brand Extension
- Mother brands equity and image successfully and quickly pass on to the offspring’s. Therefore success is fast, along with easy acceptance of the product by the customers.
- Low investment by the company in generating a brand image for the new product.
- Risk of failure is very low.
Demerits of Line and Brand Extension
- To many line extensions dilute the mother brand, many choices confuses the customers to make a choice for purchase.
- Cannibalization of the brand may take place which is not cost effective.
- If any brand or line extension fails or acquires a negative image, it may affect the image of the mother brand.
Merits of Multibrands and New Unique brands
- Multibranding strategy helps in catering to the needs of several segments of market for the line that emerges as the market evolves over the period of time.
- It will help the firm discover a new niche in the market and fill the gap before the rivals do and hence develop a dominant leader in various segments of the market.
- Multi brands weaken the competitions and strengthen the firm’s portfolio.
Demerits of Multibrands and New Unique brands
- The risk of failure is very high as we are discovering a new product for new segment
- Time consumed and efforts involved to build a brand image are very high.
- Investment in developing a new brand image is very high.
- If the company doesn’t have enough resources to maintain multiple brands, then the company loses focus from each of the brands.
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