Branding Strategy

A company has four options when it comes to brand strategy.  It can be following:

1). Introduce line extensions. Existing brand names are extended to new sizes, forms and flavors of an existing product category.  A company may introduce line extensions as a low-cost, low-risk way of introducing a new product to:

a).  Meet consumer want for variety.

b). Meet excess manufacturing ability.

c). easily command more shelf space.

Risks include are following:

a).  An overextended brand may lose its particular meaning.

b). May cause consumer frustration or confusion.

2). Introduce brand extensions.         

Existing brand names are extended to new or modified product categories.  Advantages include are following:

1.   Helps a company enter new product categories more simply.
2.   Aids in new product recognition.
3.   Saves on great advertising cost.

3).        Introduce multibrand. New brand names are introduced in the similar product category.  Advantages include are following:

A.      They achieve more shelf space.

B.      Offering numerous brands to capture "brand switchers."  The company may establish flanker or fighter brands to defend its major brand.

C.      It supports to develop healthy competition within the organization.

Drawbacks include:

1.   Each brand may just get a little market share and be unprofitable.

4). Introduce new brands.  New brand names are introduced in new categories.

Advantage include are following: 

  Helps in move away from a brand that is diminishing.

  Can obtain new brands in new categories by corporate acquisitions. Some of companies are now pursuing mega brand strategies.

Drawbacks can include following:

1.   Spreading resources too thin.