Problem: Brand Manager
Companies usually offer more than one product, so they will need to choose a branding strategy unique to each one. (Remember what you learned in Lesson 7 about product items, lines, and mixes.) Branding strategies include multiproduct branding, multibranding, private branding, and mixed-branding strategies.
• Multiproduct Branding
• Multibranding
• Private Branding
• Co-branding.
In this strategy, companies use one brand name for all products in the product class, as with Oreo. There are several advantages to multiproduct branding: This brand strategy capitalizes on brand equity among consumers. Companies hope this favorable brand impression will transfer to other items in the product class with the same name, especially if consumers have a good experience with a product.
The ability for a company to develop the connection between consumers and the brand name makes product-line extensions possible. Product-line extensions refers to the use of a current brand to enter a new market segment in its product class. This results in lower advertising and promotion costs because the same name is used on all products, thus raising the level of brand awareness. Oreo cookies' different types and flavors-double-stuffed, chocolate-covered, and thins, for example-are product-line extensions. You are more likely to try a new flavor of Oreo when you are familiar with the original Oreo cookie.
Companies can also utilize a strong brand name a brand extension, using a current brand to enter a different product category. The Oreo brand can be found in multiple aisles in the grocery store thanks to its wafers, pie crusts, ice cream, and soft snack cakes.
In this strategy, companies use a distinct brand name for each product. This strategy is useful when each product is aimed at a different target market. P&G's laundry detergents (Tide, Cheer and Dreft) all have separate brands names to appeal to different target markets.
• Has the above influenced your view of a career in marketing?
• What aspects of marketing interest you most and why?
• Based on your current skill set, which areas of marketing do you think you are best at?
• Even if you are not a marketing major, do any of these stories provide insights that you can use in a career outside of marketing.