On the plus side, it should also be note that the risk of the actions taken is evenly distribute between all brands. In this way, the manufacturer is able to minimize losses if one of them fails in the market. In addition, the manufacturer has great flexibility in shaping the product portfolio and brand portfolio. It should also be mentione that the strategy of an individual brand has a strong impact on competition. If all brands of a given manufacturer are on store shelves at the same time and are displaye in the same way, they limit the space for competitors’ brands. The individual brand strategy, despite many advantages, is not without its disadvantages.
Other Important Elements It Includes
The biggest problem may be the budget and costs incurre for promotion. If each of the brands is to enter the market and sell well, you have to take into account the nee to promote all of them separately with equal financial outlay. You also nee to database build a separate strategy for each brand, and each of them must have a different brand manager. There is also the risk of cannibalization, internal competition. Family brand strategy The family brand strategy is base on brand transformation, jointly labeling all products or specific family groups with one brand. Johnson&Johnsos, for example, operates on this principle.
Brand Distinguishing Features
When to use a family brand strategy? For product groups that are fairly homogeneous, bought and consume in the same way. The company has an establishe position on the market and is not threatene by competition. A company that has a limite BLB Directory advertising budget. To create a comprehensive corporate image. We recommend Astroturfing – is it worth the risk? The family brand strategy actually has many advantages. Its use allows for the implementation of a comprehensive, combine promotion of the entire product line, which in turn translates into increase brand recognition and strengthening its position on the market.