Sachin Shetty fina

8/4/2019 Sachin Shetty fina

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Dnyanasadhana college

Thane (w)

t.Y.B.M.M.

5th semester

SUBJECT: brand building

PROJECT: multi branding strategies

Submitted by: Shetty s. sachin

Roll no: 25

Submitted to: prof.J .g. haldankar

Students sign

teacher sign


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indexsr

no

.

contents

1. introduction

2. Brand awareness

3. BRAND IMAGE

4. Multi-branding strategy5. Brand strategic decision

6. Building Brands: How To Expand FromMulti-Unit To Multi-Brand Franchisee

7. The advantages &disadvantages multi-branding strategy

8. Case Study

Acknowledgment


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I am much very thankful to our

Prof. j.g.haldankar sir for his guidance and

support thought out this Project.

The information and knowledge given by his

served as the basic for this Project.

Declaration by student


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I hereby declare that the information

which provided in this project is best of

my knowledge.

Declaration by Professor


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INTRODUCTION

Brand is the personality that identifies a product, service or company (name, term,sign, symbol, or design, or combination of them) and how it relates to key

constituencies: customers, staff, partners, investors etc.

Some people distinguish the psychological aspect, brand associations like thoughts,

feelings, perceptions, images, experiences, beliefs, attitudes, and so on that become

linked to the brand, of a brand from the experiential aspect.


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The experiential aspect consists of the sum of all points of contact with the brand

and is known as the brand experience. The psychological aspect, sometimes

referred to as the brand image, is a symbolic construct created within the minds of

people, consisting of all the information and expectations associated with a

product, service or the company(ies) providing them.

People engaged in branding seek to develop or align the expectations behind the

brand experience, creating the impression that a brand associated with a product or

service has certain qualities or characteristics that make it special or unique. A

brand is therefore one of the most valuable elements in an advertising theme, as it

demonstrates what the brand owner is able to offer in the marketplace. The art of

creating and maintaining a brand is called brand management. Orientation of the

whole organization towards its brand is called brand orientation.

Careful brand management seeks to make the product or services relevant to thetarget audience. Brands should be seen as more than the difference between the

actual cost of a product and its selling price - they represent the sum of all valuable

qualities of a product to the consumer.

A brand which is widely known in the marketplace acquires brand recognition.

When brand recognition builds up to a point where a brand enjoys a critical mass

of positive sentiment in the marketplace, it is said to have achieved brand

franchise. One goal in brand recognition is the identification of a brand without the

name of the company present. For example, Disney has been successful at branding

with their particular script font (originally created for Walt Disney's "signature"logo), which it used in the logo for go.com.

Consumers may look on branding as an important value added aspect of products

or services, as it often serves to denote a certain attractive quality or characteristic

(see also brand promise). From the perspective of brand owners, branded products

or services also command higher prices. Where two products resemble each other,

but one of the products has no associated branding (such as a generic, store-

branded product), people may often select the more expensive branded product on

the basis of the quality of the brand or the reputation of the brand owner.


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Brand awareness

Brand awareness refers to customers' ability to recall and recognize the brand

under different conditions and link to the brand name, logo, and jingles and so on

to certain associations in memory. It helps the customers to understand to which

product or service category the particular brand belongs and what products andservices are sold under the brand name. It also ensures that customers know which

of their needs are satisfied by the brand through its products (Keller). Brand

awareness is of critical importance since customers will not consider your brand if

they are not aware of it.


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'Brand love', or love of a brand, is an emerging term encompassing the perceived

value of the brand image. Brand love levels are measured through social media

posts about a brand, or tweets on sites such as Twitter. Becoming a Face book fan

of a particular brand is also a measurement of the level of 'brand love'.

Brand promise

The marketer and owner of the brand have a vision of what the brand must be and

do for the consumers.

Brand promise is what a particular brand stands for (and has stood for in the past).

It has its roots from the identity that it gains over a period of time. Usually, brand

promise is an attribute common to ' Parent ' brands. Herein, the brand may broadly

stand for Quality, Performance, Trust, or False promises. However, the extensions,

or the brands under the parent brand umbrella, may stand individually for aparticular trait which it has delivered over the years, for example, 'the best

sparkling teeth', or 'the trusted bank to bank with for centuries', et al.

Global brand

A global brand is one which is perceived to reflect the same set of values around

the world. Global brands transcend their origins and create strong enduring

relationships with consumers across countries and cultures. They are brands sold in

international markets. Examples of global brands include Face book, Apple, Pepsi,McDonald's, MasterCard, Gap, Sony andNike. These brands are used to sell the

same product across multiple markets and could be considered successful to the

extent that the associated products are easily recognizable by the diverse set of

consumers.

BRAND IMAGE

In modern business, the brand image occupies a very important position. Oftentimes, it is not the quality of goods or services, but the brand that sets the

competition. This is because the consumers are very much concerned about the

brand they choose. They trust a product because of the brand reputation of the

manufacturer. An established brand finds it easier to market their products than a

new and struggling brand. However successful a brand is, constant monitoring and

management is required to keep intact the corporate brand reputation it enjoys.
http://en.wikipedia.org/wiki/Facebookhttp://en.wikipedia.org/wiki/Apple_Inc.http://en.wikipedia.org/wiki/Pepsihttp://en.wikipedia.org/wiki/McDonald'shttp://en.wikipedia.org/wiki/Mastercardhttp://en.wikipedia.org/wiki/Gap_(clothing_retailer)http://en.wikipedia.org/wiki/Sonyhttp://en.wikipedia.org/wiki/Nike,_Inc.http://en.wikipedia.org/wiki/Facebookhttp://en.wikipedia.org/wiki/Apple_Inc.http://en.wikipedia.org/wiki/Pepsihttp://en.wikipedia.org/wiki/McDonald'shttp://en.wikipedia.org/wiki/Mastercardhttp://en.wikipedia.org/wiki/Gap_(clothing_retailer)http://en.wikipedia.org/wiki/Sonyhttp://en.wikipedia.org/wiki/Nike,_Inc.


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Premeditated attacks on your brand cannot be ruled out either. Sometimes, a

disgruntled customer may start a campaign aimed at bringing down your reputation

in the market. As such, you should have a system or a strategy in place to protect

and enhance your brand reputation. Brand image is the current view of the

customers about a brand. It can be defined as a unique bundle of associations

within the minds of target customers. It signifies what the brand presently stands

for. It is a set of beliefs held about a specific brand. In short, it is nothing but the

consumers perception about the product. It is the manner in which a specific brand

is positioned in the market. Brand image conveys emotional value and not just a

mental image. Brand image is anything but an organizations character. It is an

accumulation of contact and observation by people external to an organization. It

should highlight an organizations mission and vision to all. The main elements of

positive brand image are- unique logo reflecting organizations image, slogan

describing organizations business in brief and brand identifier supporting the key

values. Brand image is the overall impression in consumers mind that is formedfrom all sources. Consumers develop various associations with the brand. Based on

these associations, they form brand image. An image is formed about the brand on

the basis of subjective perceptions of associations bundle that the consumers have

about the brand. Volvo is associated with safety. Toyota is associated with

reliability. The idea behind brand image is that the consumer is not purchasing just

the product/service but also the image associated with that product/service. Brand

images should be positive, unique and instant. Brand images can be strengthened

using brand communications like advertising, packaging, word of mouth publicity,

other promotional tools; etc. Brand image develops and conveys the products

character in a unique manner different from its competitors image. The brand

image consists of various associations in consumers mind -attributes, benefits and

attributes. Brand attributes are the functional and mental connections with the

brand that the customers have. They can be specific or conceptual. Benefits are the

rationale for the purchase decision. There are three types of benefits: Functional

benefits - what do you do better (than others), emotional benefits - how do you

make me feel better (than others), and rational benefits/support - why do I believe

you (more than others). Brand attributes are consumers overall assessment of a

brand. Brand image has not to be created, but is automatically formed. The brand

image includes products' appeal, ease of use, functionality, fame, and overall value.Brand image is actually brand content. When the consumers purchase the product,

they are also purchasing its image.


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Brand image is the objective and mental feedback of the consumers when they

purchase product. Positive brand image is exceeding the customers expectations.

Positive brand image enhances the goodwill and brand value of an organization. In

short, brand image is a unique set of association in the mind of customers

concerning what a brand stands for and the implied promises the brand maker .It

includes the following:

Sum of all tangible and intangible traits

Represents all internal and external characteristics

Its anything and everything that influences how brand or a company is

perceived by its target constituencies.

It is the best single marketable investment a company can make.

It also includes an impression in the consumers mind of a brands total personality.

It is developed overtime through advertising campaign with a consistent theme and

is authenticated through the consumers direct experience.

Multi-branding strategy

The same product categories in the introduction of multiple brand strategy known

as the multi brand strategy. Securities investors often invest a variety of stocks, an

investor of all shares held by the collection is the so-called portfolio (portfolio), in

order to reduce the risk of increased profit opportunities, and investors mustconstantly optimize the equity portfolio. Similarly, the establishment of a portfolio

of brands, the implementation of multi-brand strategy, often based on the same

considerations, and such brand portfolio among various brand images is also linked

to the existing differences, not stew, contains a combination of the overall concept

more than individual significance.


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(1) Nurturing the needs of the market. Not a single brand alone can cultivate a

market. Although initially a certain brand to outshine others, but once hard, and so

it opened up to a fertile market, other people will be flocking to. Many market

competitors opened up a common market, the market will help the rapid

development and maturity. When the market began to divide, many contributors to

the advertising market usually unavoidable, its effect is to further strengthen the

product category of the common advantage. Some market at the beginning of a

dynamic, but not the final form of climate, one of the reasons is that few

participants. If a wholesale market only 23 shops, empty, the market is not what the

market. There are a number of brands together to support an overall market

absolutely necessary. Personal computer market as an example, if a business only

Apple monologue, no other computer manufacturers follow-up, absolutely

impossible for this popular form today's PC market.

(2) Various brands so that enterprises have the opportunity to maximize marketcoverage. Not a single brand alone can occupy a market. As the market matures,

the needs of consumers gradually broken down, a brand can not maintain its basic

meaning and at the same time meet the same objectives. That is why some

enterprises to create a number of brands to the market to different segments of their

mind. On the other hand, Western retailers in recent years the rise of self-brand

manufacturers to issue a strong challenges to shake the manufacturers to establish

and maintain a brand on the active and dominant position. Multi-brand strategy

will help manufacturers and retailers curb brokers control a brand further about

their own abilities.

Multi-brand offers a flexible, help limit the expansion of opportunities for

competitors, making competitors are in every segment of the existing brands are

entering the obstacles. In the price war to defend the main brand, multi-brand is

indispensable. Those secondary brands, as a small unit forces, launched a price war

to the competitors to quickly crack down on the flank, who helped to provoke both

difficult to Go. At the same time, the core brand's leading position will be Haofa

prejudice. Leading brands shoulders ensure that the entire product category of the

profitability of the task, their status must be defended otherwise, once the charm of

its decline, product unit profit would be difficult to rehabilitation or the end of thebrand would be rejected by retailers.

(3). Highlight and protect the core brand. When the need to protect the image of the

core brand, multi-brand presence all the more significant, in the absence of core

brands in the grasp of innovation can not be blindly risk. For example, to defend

the brand equity, the Disney film production companies in its use of multiple


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brands, making Disney enterprises can produce all types of movies, so as to avoid

the damage of Disney's prestigious image. In the West, the retail system to the keen

interest in brand diversification, manufacturers use of multi-brand strategy to

improve their overall market share, to increase their weight in the trial of strength

with retailers.

Therefore, the multi-brand strategy will help cultivate business, market coverage,

lower marketing costs, restrictions on competitors and effectively respond to the

challenges of retailers.

Brand strategic decision

Brand strategy has five kinds of decision-making. Namely: product line expansion

strategy, brand extension strategies, multi-brand strategy, the new brand strategy,

brand strategy of cooperation.

Multi-brand Strategy is the marketing of two or more similar and competing

products by the same firm under different and unrelated brands.

While these brands eat into each others' sales (see cannibalism), multi-brand

strategy does have some advantages as a means of


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(1) Obtaining greater shelf space and leaving little for competitors' products,

(2) Saturating a market by filling all price and quality gaps,

(3) Catering to brand-switchers users who like to experiment with different brands,

and

(4) Keeping the firm's managers on their toes by generating internal competition.

One example I can think of is the GMC Acadia/Traverse/Enclave/... The cars are

almost identical, but they are sold as different models. There are certainly benefits

for huge corporations who can throw a lot of money for essentially advertising, but

the costs are great depending on the product

Multi-brands

Alternatively, in a market that is fragmented amongst a number of brands a

supplier can choose deliberately to launch totally new brands in apparent

competition with its own existing strong brand (and often with identical product

characteristics); simply to soak up some of the share of the market which will in

any case go to minor brands. The rationale is that having 3 out of 12 brands in such

a market will give a greater overall share than having 1 out of 10 (even if much of

the share of these new brands is taken from the existing one). In its most extreme

manifestation, a supplier pioneering a new market which it believes will beparticularly attractive may choose immediately to launch a second brand in

competition with its first, in order to pre-empt others entering the market.

Individual brand names naturally allow greater flexibility by permitting a variety of

different products, of differing quality, to be sold without confusing the consumer's

perception of what business the company is in or diluting higher quality products.


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Once again, Procter & Gamble is a leading exponent of this philosophy, running as

many as ten detergent brands in the US market. This also increases the total

number of "facings" it receives on supermarket shelves. Sara Lee, on the other

hand, uses it to keep the very different parts of the business separate from Sara

Lee cakes through Kiwi polishes to L'Eggs pantyhose. In the hotel business,

Marriott uses the name Fairfield Inns for its budget chain (and Ramada uses

Rodeway for its own cheaper hotels).

Cannibalization is a particular problem of a "multibrand" approach, in which the

new brand takes business away from an established one which the organization

also owns. This may be acceptable (indeed to be expected) if there is a net gain

overall. Alternatively, it may be the price the organization is willing to pay for

shifting its position in the market; the new product being one stage in this process.

Private labels

With the emergence of strong retailers,private label brands, also called own

brands, orstore brands, also emerged as a major factor in the marketplace. Where

the retailer has a particularly strong identity (such as Marks & Spencerin the UK

clothing sector) this "own brand" may be able to compete against even the

strongest brand leaders, and may outperform those products that are not otherwise

strongly branded.

Individual and organizational brands

There are kinds of branding that treat individuals and organizations as the products

to be branded. Personal branding treats persons and their careers as brands. The

term is thought to have been first used in a 1997 article by Tom Peters. Faith

branding treats religious figures and organizations as brands. Religious media

expert Phil Cooke has written that faith branding handles the question of how to

express faith in a media-dominated culture. Nation branding works with the

perception and reputation of countries as brands.

With the trend of multi-unit franchising continuing to drive franchising into the

21st century, some progressive franchisees are looking for the next logical step inthe progression of franchising ongoing and complex development. Many are

finding that next step is through multi-brand franchising.

Multi-brand franchising can offer a great additional growth tool for multi-unit

franchisees who have seen their fortunes raise simply from adding new units of one

brand. Adding additional brands and units makes logical sense. If following the
http://en.wikipedia.org/wiki/Procter_%26_Gamblehttp://en.wikipedia.org/wiki/Sara_Lee_(corporation)http://en.wikipedia.org/wiki/Marriott_Internationalhttp://en.wikipedia.org/wiki/Fairfield_Inn_by_Marriotthttp://en.wikipedia.org/wiki/Ramadahttp://en.wikipedia.org/wiki/Rodeway_Innhttp://en.wikipedia.org/wiki/Cannibalizationhttp://en.wikipedia.org/wiki/Private_labelhttp://en.wikipedia.org/wiki/Own_brandhttp://en.wikipedia.org/wiki/Own_brandhttp://en.wikipedia.org/wiki/Store_brandhttp://en.wikipedia.org/wiki/Marks_%26_Spencerhttp://en.wikipedia.org/wiki/UKhttp://en.wikipedia.org/wiki/Personal_brandinghttp://en.wikipedia.org/wiki/Tom_Petershttp://en.wikipedia.org/wiki/Faith_brandinghttp://en.wikipedia.org/wiki/Faith_brandinghttp://en.wikipedia.org/wiki/Phil_Cookehttp://en.wikipedia.org/wiki/Nation_brandinghttp://en.wikipedia.org/wiki/Procter_%26_Gamblehttp://en.wikipedia.org/wiki/Sara_Lee_(corporation)http://en.wikipedia.org/wiki/Marriott_Internationalhttp://en.wikipedia.org/wiki/Fairfield_Inn_by_Marriotthttp://en.wikipedia.org/wiki/Ramadahttp://en.wikipedia.org/wiki/Rodeway_Innhttp://en.wikipedia.org/wiki/Cannibalizationhttp://en.wikipedia.org/wiki/Private_labelhttp://en.wikipedia.org/wiki/Own_brandhttp://en.wikipedia.org/wiki/Own_brandhttp://en.wikipedia.org/wiki/Store_brandhttp://en.wikipedia.org/wiki/Marks_%26_Spencerhttp://en.wikipedia.org/wiki/UKhttp://en.wikipedia.org/wiki/Personal_brandinghttp://en.wikipedia.org/wiki/Tom_Petershttp://en.wikipedia.org/wiki/Faith_brandinghttp://en.wikipedia.org/wiki/Faith_brandinghttp://en.wikipedia.org/wiki/Phil_Cookehttp://en.wikipedia.org/wiki/Nation_branding


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franchise system works for one successful brand, it will most likely work in

another, then another--if you choose wisely. With a streamlined infrastructure,

solid capital base, and strong unit economics, more profit can flow your way with

each passing year and additional brand.

It's really the idea of diversification, and that's as old as capitalism. Dispersing risk

can protect your business from negative market factors like economic downturns

and encroaching competition. Diversification is a recommended strategy in

designing an investment portfolio and is a big part of the thinking behind the

growth in multi-brand franchising. As savvy investors know, no matter how good

your ROI may be from a single holding, it's not wise to put all your eggs in one

basket. And as multi-unit franchisees seek new avenues for growth, an increasing

number are adding second, third, and fourth brands to their portfolios.

But why would franchisors want franchisees who aren't fully devoted to a singlebrand? Simple, they're looking for additional multi-unit partners with a proven

track record managing multiple units, relevant industry experience, positive cash

flow, strong unit economics, and a solid management team and infrastructure. And,

for franchisors, signing multi-unit deals also means dealing with fewer franchisees

to sell more units. Meanwhile, multi-unit franchisees seeking a new franchisor

partner have similar requirements: a solid management team, strong unit

economics, a well-known and respected brand name, and an opportunity to develop

a territory over the long term.

Here are some of the reasons multi-unit franchisees seek out additional brands:

Infrastructure. Multi-unit franchisees with their own accounting, human

resources, and other internal departments often have excess capacity. Adding

brands can take advantage of that capacity, growing profits without

expanding the home office staff. With a strong infrastructure in place, a

multi-brand franchisee has a built-in advantage in building brand awareness

in their territory and more easily, rapidly, and successfully penetrating their

market with a new brand.

Economies of scale. Once an organization attains a certain size, several

things get easier and, often, less expensive since you're "buying in bulk":

marketing and advertising, supplier costs and services, administrative and

back-office functions, and more. For example, one vendor may be able to

service all your equipment and, as a result, offer you a more economical rate.

Geography. Adding another brand can be the perfect path to continued

growth in a region where a single-brand multi-unit operator has built out


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their territory, or for a franchisee of a brand with no local opportunities to

build more units--without having to travel to new or distant locales.

Familiarity with the territory and the dynamics of the market, combined with

local connections and a solid grasp of local real estate, developers, and

zoning requirements is a real home-court advantage.

Financing. A successful track record with one franchise concept

demonstrates your ability to lenders who can help you launch that next

concept. Thriving multi-unit franchise operators typically have high net

worth, extensive contacts, and access to financing to open successful units

quickly. These are powerful assets to have. Your existing operation and the

value of your real estate can help you acquire a second or third concept,

without putting a stranglehold on your cash flow.

Training and retention. With two or more brands, a franchisee can offer

employees cross-training, flexibility, promotions, and a clear growth path as

their skill sets improve. This helps in attracting and retaining top talent asyou build your organization, always a challenge in any business. And with

better-trained employees, unit economics improve.

Co-branding. Locating two or more brands in a single location also allows

behind-the-scenes efficiencies that can boost profits. Be careful to maintain

compliance with each franchise agreement, as some concepts may not be

combined legally or functionally. If it does work, co-branding and co-

marketing can make more efficient use of your advertising dollar.

Synergy. Each franchise brand has its own proprietary operating system

perfected over many years and many thousands of customer transactions.

While the operating systems differ and must remain separate, sometimes

elements of one can be applied to another, or to internal operations at the

franchisee's home office. The same holds true for marketing programs,

recruiting methods, training, HR, and every other ingredient of franchising

success. Keep them separate to maintain compliance, but look for areas to

adapt good ideas across your organization.

Multi-brand franchising, when done right, offers great potential to the multi-unit

franchisee seeking to diversify their investment, increase their profitability, and

build a larger, stronger organization.

Brand extension and brand dilution

The existing strong brand name can be used as a vehicle for new or modified

products; for example, many fashion and designer companies extended brands into


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fragrances, shoes and accessories, home textile, home decor, luggage, (sun-)

glasses, furniture, hotels, etc.

Mars extended its brand to ice cream, Caterpillar to shoes and watches, Michelin to

a restaurant guide, Adidas and Puma to personal hygiene. Dunlop extended its

brand from tires to other rubber products such as shoes, golf balls, tennis racquets

and adhesives.

There is a difference between brand extension and line extension. A line extension

is when a current brand name is used to enter a new market segment in the existing

product class, with new varieties or flavors or sizes. When Coca-Cola launched

"Diet Coke" and "Cherry Coke" they stayed within the originating product

category: non-alcoholic carbonated beverages. Procter & Gamble (P&G) did

likewise extending its strong lines (such as Fairy Soap) into neighboring products

(Fairy Liquid and Fairy Automatic) within the same category, dish washingdetergents.

The risk of over-extension is brand dilution where the brand loses its brand

associations with a market segment, product area, or quality, price or cachet.

Although the multi-brand strategy has manyadvantages, but also there are many limitations.

(1) With the introduction of new brands, its net contribution to the market rate

Jiangcheng a marginal decline trend. Economics of marginal utility theory tells usthat as a consumer of the increase in consumer goods, the goods were diminishing

marginal utility of the trend. Similarly, for an enterprise, with the increase in brand,

the new brand-to-business market marginal contribution rate is off the trend of

diminishing. This is due to the limited resources within the enterprise, to support a

new brand is sometimes necessary to reduce the estimated cost of the original

brand on the other hand, enterprises in the creation of new brands on the market

because competitors will be the resistance without achieving the desired results

They will address the new corporate brand launch a similar competitive brands, or

intensify the existing brand marketing efforts. In addition, another important reasonis that as companies in the same online brand products increased between the brand

will inevitably erode each other's market. In the sudden expansion of the market

difficult, it is difficult to imagine the new brand to attract consumers are all

competitors customers, or has never used the product, especially when the product

differentiation smaller, or the same product Online different brand positioning
http://en.wikipedia.org/wiki/Michelinhttp://en.wikipedia.org/wiki/Adidashttp://en.wikipedia.org/wiki/Puma_AGhttp://en.wikipedia.org/wiki/Dunlop_(brands)http://en.wikipedia.org/wiki/Coca-Colahttp://en.wikipedia.org/wiki/Procter_%26_Gamblehttp://en.wikipedia.org/wiki/Michelinhttp://en.wikipedia.org/wiki/Adidashttp://en.wikipedia.org/wiki/Puma_AGhttp://en.wikipedia.org/wiki/Dunlop_(brands)http://en.wikipedia.org/wiki/Coca-Colahttp://en.wikipedia.org/wiki/Procter_%26_Gamble


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difference not significant, this brand eroded among the phenomenon is particularly

significant.

(2) brand promotion cost more. Enterprises to implement multi-brand strategy, it

means that limited resources can not be allocated to the profitability of the few

strong brands, brands need a long-term, a huge publicity budget. For some

enterprises, it is elusive.

The risks of multi production

When offering products to the public, branding can help enhance customer loyalty

and help the company be more profitable overall. One particular branding strategy

you can use is multi-product branding, which involves releasing multiple products

with the same brand name. While this strategy can be simple to use, it can lead to

some problems.

Dilute Brand Name

One of the potential problems with using multi-product branding is that it can

delete the effectiveness of the brand name. When consumers see the brand name

everywhere on many different types of products, they may not necessarily put the

same faith in the brand as they once did. This can lead to lower sales in all of the

different product categories a brand encompasses. By sticking to related products

in a brand, you often can grab more market share of that particular niche.

All Products Tied Together

Another potential disadvantage of using this branding strategy is that it ties all of

the products together. In some cases, this can be good, but problems can arise. For

example, if your brand covers household products such as soap and cleaners but it

also covers chainsaws, one chainsaw malfunction could lead to a bad perception

associated with the other products in the lineup. You have to make sure all of the

products in your line share the same level of quality.

Difficulty Managing

When you put your brand name on many different types of products, you

eventually may have a hard time managing them all. If you restrict your brand

name to items that are similar to one other, such as soap, shampoo and conditioner,

it is typically easier to manage them. If you start dealing with products that are


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completely unrelated to one another, such as soap and automobiles, you may have

a hard time effectively managing your resources.

Expectations on New Products

Another potential problem you may run into using multi-product branding is unfairexpectations on new products. For example, if your brand has a certain standard of

excellence in the eyes of the public, every new product is scrutinized. If the new

products do not meet the standards of the old ones, it can lead to a negative stigma

surrounding the brand. Every new product must have all of the kinks worked out

before you release it to the general public.

The disadvantages of brand extensionstrategies

(1). Damage to the original brand image.

When a certain type of product on the market ahead of the status, the brand has

become a strong brand, in the minds of consumers will have a special image

orientation, or even become a synonym for such products. This will be a strong

brand extension, as proximate cause of (that is the last impression on people's

awareness of a more profound impact on the role of) the existence, it is possible to

play a strong brand image consolidate or weaken the role. If the improper use of

the brand extension, the original strong brand image represented by the information

was weakening.

(2). Runs counter to consumer sentiment.

A brand for the success of the process, the consumer is shaped by the corporate

brand-specific functions, such as the quality of the psychological characteristics of

specific targeting process. The strength of enterprises and brand extension to or

incompatible with the original market has nothing to do with the products, on the

contrary the psychological orientation of consumers. Such as "999" was originally


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Wei Yao in the well-known brands, "999" extend to beer; consumers will be

difficult to accept. The brand extension of such misconduct, not only the

effectiveness, but it will also affect the original strong consumer brands in the eyes

of the specific psychological orientation.

(3). Cixiaobichang easily form the "seesaw" phenomenon.

When a name on behalf of two or more of a difference in the product, consumers

will inevitably lead to fuzzy understanding of the products. When the extension of

branded products in market competition at the absolute superiority, consumers will

be the strength of the original brand positioning transferred to the psychological

extension of the brand. Thus, in effect weakened the strength of the brand

advantage. This extension of the strong brands and brand competitionCixiaobichang situation changes, that is, "seesaw" phenomenon.

(4). Implicate effect.

Will crown a strong brand name in other products, if different products in quality,

level on the difference between the poor, which makes the strong brand name

products and brand extensions have an impact, not only damaged the extension of

brand name products, but also implicate the strong brand.

(5). Dilute brand identity.

When a brand on the market after the success in the eyes of consumers will have a

special image orientation, attention also focused on the consumer to the product's

function, quality and other characteristics on. If enterprises use the same brand

launch function, is almost the same quality of similar products so that consumers

fainted the first shift, the brand identity will be diluted.


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Case study

Videocon: From market leadership to overall brand consolidationVideocons case history, when it unravels its detailed chapters, represents a classic

multi branding success story. In the consumer electronics sector, Videocon was a

mass brand and very middle-class in character. As a core brand, it did not have

any brands at the top end or at the flanks to ward off the thrust from the Sonys, the

Panasonics and the VFM Korean range of products. So Videocon developed


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Bazooka as a top-of-the-line product to spearhead a frontal assault. Toshiba too

was introduced to reinforce this strategy to take on all comers. Private was

introduced as a sub-brand and gave tremendous protection to the brand in all the

size categories and especially from price-aggressive competitors. The coup de

grace was to bring in Sansui to protect the flanks, completing the protection of the

core brand, Videocon, from virtually all sides.

But according to Newtons law, each and every force has an equal and opposite

reaction. So while a new range of brands and sub-brands creates a revenue thrust

and protects the core brand, the core brand tends to get compressed over a medium-

to long-term period. Likewise, Videocon saw its market share fall to 19 per cent

from 26 per cent. However, all the other brands that were a part of the overall multi

branding campaign gained substantial market share. So while production capacities

were shored up, brand shares got fragmented. This led to an overall consolidation

of the core brand, Videocon, which itself grew by 40 per cent. Thus, a multi

branding exercise, once initiated, can bring about a substantial consolidation of thecore brand.

Another application of multi branding is to move into product segmentation based

purely on the socio-economic parametersomething which Raymond as a core

brand specialized in. Park Avenue, the Raymond brand of readymade, was

introduced to cater to the new breed of professionals that was a part of the

liberalized era. For the youth who were more into casual wear, there was the Parx

range of casuals across various product categories. After that, Manzoni, an

absolutely top-of-the-line range of ties, suits and jackets was introduced. Manzoni

has been a complete sellout in a period of six months whereas the other brands

have flowered independently tooreinforcing the brand values of the core brand,

Raymond, and consolidating the overall market share.

Multi branding: The Big Boys Game

There is no doubt that multi branding is a big bucks game which can only be

played by the big players in earmarked business areas and business streams.

Profitable enterprises with the necessary operational efficiencies are the only ones

capable of supporting brand promotion and brand protection exercises. Besides,

they are the only ones capable of allocating huge budgets, deploying huge

resources and making tactical retreats or assuming aggressive postures wheneverticklish situations arise. Also, it must be said that over a period of time, as the

stronger brand consolidates, they have the wherewithal to not only set up entry

barriers but also take on aggressive competitors already present in their market

space.


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Future and Beyond Technology and the growth of the Internet as a business-

enabler will play a dynamic role in extending the tremendous value of the multi

branding concept. Blocks of corporate houses, which will capture their spaces and

keep

consolidating, will emerge in the long run. There will be transgression of the main

brands and sub-brands which, while achieving critical mass, will have their own

independent status. Here, multi branding will be effected through a process of

acquisitions, buyouts and mergers, alternately leading to the overall consolidation

of the main brand. Information management will become very important and the

derived competitive advantages will lend a new dimension to the multi-branding

concept. In fact, this will ultimately lead to knowledge-based marketing.

Proctor and Gamble Corporatebranding vs. multi-branding

Proctor and Gamble (P&G) is the American, fast-moving consumer Goods

Company behind many brands you are likely to have lying around your house:

Ariel, Bounty, Pringles and Gillette just to name a few. These brands areprobably familiar to you. Hence, their strategy to date of promoting multiple brands

to target different market segments has been highly effective. However, this has

hitherto been at that expense of promoting their corporate brand. Thus, P&G have

reviewed their promotional mix; now, the company plans to promote their

corporations environmental credentials through T.V. advertising in the U.K. Their

belief is that if consumers perceive P&G to be a green company, then they will

actively seek out their brands. This coincides with the lauch of their new

environmental sustainability vision.

Simply, P&G are moving away from a multi-brand strategy to a corporate brandingstrategy. But surely there are advantages and drawbacks of each approach?


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Firstly, what has made P&G so successful? As mentioned before, effective multi-

branding is the answer. This allows P&G to tailor different features that appeal to

different consumers note in the picture above: they manufacture both Head &

Shoulders and Pantene shampoo. As a result of this, the company can take a

differentiated approach to marketing. Thus, long-term relationships are developed

with customers by closely satisfying their wants and needs with products that have

a competitive advantage over their competitors. Although P&G have overcome the

most common drawback of using a multi-brand strategy that each brand may

only obtain a small market share they do suffer from a lack of corporate

publicity.

Unlike P&G, Unilever and Reckitt Beckinser, their major competitors, havealready started to promote their corporate brand as opposed to their products.

Unilever distinctively display their logo on their advertisements; while Reckitt

Beckinser has started to raise their corporate publicity among students to highlight

the graduate job opportunities they offer. So already P&G are playing catch-up

with their micro-environment.

This means that above-the-line promotion is needed, in the form of advertisements,

to quickly raise their corporate profile. This would account for the creative

advertising, below, which has already been aired in the U.S.

Take note of the ending: although they highlight the relevant product range to

Mothers a key market segment the main emphasis is on the company, P&G.

This is an indication of how they aim to undertake corporate branding in the U.K

sponsorship of the 2012 Olympics that emphasizes their environmental

sustainability and healthy living ethos. Thus, like how Mothers in the U.S. may


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seek out products from various P&G product lines, health and environmental

concerned consumers in the U.K. will theoretically look out for P&G products.

Moreover, I believe that this corporate branding strategy will provide even more

long-term benefits for P&G ,that may not even be a part of their marketing

objectives. Namely, as consumers trust and recognize P&G, the more willing they

may become to try new brands they launch. For instance, Heinzs traditional

labeling has become synonymous with high-quality food products. This develops

deeper consumer relationships. If P&G can achieve a similar brand positioning in

the minds of their consumers then product development becomes less risky and,

therefore, innovation becomes more effective.

However, in order for corporate branding to be a success, the company must have a

good reputation a slightly obvious observation I know. But still, a poor reputation

is a major weakness. As such, Kraft Foods unlike others mentioned so far are

still emphasizing their product brands other their corporate identity following theconsumer backlash over their unethical behaviour during the takeover of Cadbury

Chocolate.

Ultimately, I believe a corporate branding strategy will work for P&G albeit it

being implemented a little late. However, I do not feel that it will be sufficient to

promote their apparent environmental considerations; environmental impact varies

so much on a product-to-product basis. Hence, each one of their products has

different degrees of sustainability it is the brand of the product that will prevail

over the brand of the company on ethical issues. But, more importantly, corporate

branding is likely to be a huge success for the P&G in terms of making consumersmore receptive to the high-quality innovation that the firm has yet to receive credit

for.


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Documents

Sachin Shetty fina