Umbrella brand

From Wikipedia, the free encyclopedia

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An umbrella brand can be referred to as a brand when a group of products possess the same brand name which is known as a family brand or an umbrella brand. Different products having different images are put together under one major brand or parent brand and are marketed by the firm. Umbrella branding does not mean that the whole product portfolio of a firm will fall under one brand name as company can go for different approaches of branding for different product lines.
Contents
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1 Examples 2 Merits 3 Demerits 4 Purposes

[edit]Examples
Amul is an example of umbrella brand. Amul Butter, Amul Cheese spreads, Amul Milk, Amul ice creams, Amul ghee all fall under single brand name AMUL. Godrej is another example of umbrella brand. Products like locks, steel cupboards, office furniture electronic typewriters, desktop printers, refrigerators, air conditioners etc. all come under one parent name GODREJ. Johnson &Johnson is yet another umbrella brand. The company Johnson & Johnson sells many of its baby care products under the Johnson's brand name Johnson's Baby Powder, Johnson's Baby soap, Johnson's Baby Shampoo etc. Tata is an example of umbrella brand.... Tata tea, Tata automobiles, Tata salt etc fall under the same umbrella TATA

[edit]Merits

1. Promotion is very cheap and easy for products falling under umbrella branding. This strategy is generally implemented by firms coming up with a new product. 2. For all the different products and services, advertising, promotion and IMC tools can be combined.

3. Also, launching of a new product under umbrella gains recognition easily as it is introduced in the market which has already accepted the brand image.

[edit]Demerits

1. If any one product under umbrella branding does not do well in the market then it can affect the overall brand 2. Different brands in umbrella branding will have different qualities which will vary and thus it can be an obstacle for smooth functioning of brand as well as firm. 3. Also, if there is negative publicity for any product or even new product it can affect the other brands under umbrella branding.

[edit]Purposes

1. It is easy to identify the new brand in the company under umbrella branding by the customers. 2. It gives uniformity to all the brands falling under it may be through one designated approach of advertising, promotion, packing etc. 3. It is a very economical strategy to be implemented. 4. It is probably the best way to enter into new segments or introduce a new product to market. 5. It will be very profitable for firms which are having different quality of brands and different images of brands if followed properly. 6. It is the branding strategy that gives the probability of a brand extension for every possible quality of profile. Researchers argue that umbrella branding generates fairly large amount of savings in brand development and marketing costs over time, also, umbrella branding can create advertising efficiencies. Consumers experience in one category may affect their quality perception of other product or service falling under same umbrella brand. Some factors which may influence the impact of umbrella branding are: 1. The degree of commonality among the products falling under umbrella brand for same usage by customers. 2. Nature of branding policy applied by the firm as advertising and marketing different products under umbrella brand will be less informative but at the same time it will be less complex for target audience to understand.

Co-branding
From Wikipedia, the free encyclopedia

It has been suggested that this article or section be merged into Brand management#Concepts. (Discuss) Proposed since October 2012.
Co-branding refers to several different marketing arrangements: Co-branding, also called brand partnership,[1] is when two companies form an alliance to work together, creating marketing synergy. As described in Co-Branding: The Science of Alliance:[2]

"the term 'co-branding' is relatively new to the business vocabulary and is used to encompass a wide range of marketing activity involving the use of two (and sometimes more) brands. Thus co-branding could be considered to include sponsorships, where Marlboro lends it name to Ferrari or accountants Ernst and Young support the Monet exhibition."

Co-branding is an arrangement that associates a single product or service with more than one brand name, or otherwise associates a product with someone other than the principal producer. The typical co-branding agreement involves two or more companies acting in cooperation to associate any of various logos, color schemes, or brand identifiers to a specific product that is contractually designated for this purpose. The object for this is to combine the strength of two brands, in order to increase the premium consumers are willing to pay, make the product or service more resistant to copying by private label manufacturers, or to combine the different perceived properties associated with these brands with a single product.
Contents
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1 Intent 2 Forms 3 Examples 4 See also 5 References

[edit]Intent
According to Chang, from the Journal of American Academy of Business, Cambridge, states there are three levels of co-branding: market share, brand extension, and global branding. Level 1 includes joining with another company to penetrate the market Level 2 is working to extend the brand based on the company's current market share Level 3 tries to achieve a global strategy by combining the two brands

[edit]Forms

There are many different sub-sections of co-branding. Companies can work with other companies to combine resources and leverage individual core competencies, or they can use current resources within one company to promote multiple products at once. The forms of co-branding include: ingredient co-branding, same-company co-branding, joint venture co-branding, and multiple sponsor co-branding. No matter which form a company chooses to use, the purpose is to respond to the changing marketplace, build ones own core competencies, and work to increase product revenues. One form of co-branding is ingredient co-branding. This involves creating brand equity for materials, components or parts that are contained within other products. Examples: Betty Crockers brownie mix includes Hersheys chocolate syrup Pillsbury Brownies with Nestle Chocolate Dell Computers with Intel Processors Kellogg Pop-tarts with Smuckers fruit

Another form of co-branding is same-company co-branding. This is when a company with more than one product promotes their own brands together simultaneously. Examples Kraft Lunchables and Oscar Mayer meats Joint venture co-branding is another form of co-branding defined as two or more companies going for a strategic alliance to present a product to the target audience. Example: British Airways and Citibank formed a partnership offering a credit card where the card owner will automatically become a member of the British Airways Executive club Finally, there is multiple sponsor co-branding. This form of co-branding involves two or more companies working together to form a strategic alliance in technology, promotions, sales, etc. Example: Citibank/American Airlines/Visa credit card partnership
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[edit]Examples

An early instance of co-branding occurred in 1956 when Renault had Jacques Arpels of jewelers Van Cleef and Arpels turn the dashboard of one of their newly introduced Dauphine's into a work of art.[4] A successful example of co-branding is the Senseo coffeemaker, which associates the Philips made appliances with specific coffee brand of Douwe Egberts. Other examples include the marketing of Gillette M3 Power shaving equipment (which require batteries) with Duracell batteries (both brands owned by Procter & Gamble). Co-branding can be between an organization and a product also. An example of co-branding between a charity and a manufacturer is the association of Sephora and Operation Smile: Sephora markets a product carrying the logo of the charity, the consumer is encouraged to associate the two brands, and a portion of the proceeds benefit the charity.

The Types of Brands

By Bill Chiaravalle and Barbara Findlay Schenck from Branding For Dummies Different types of brands work for different marketing approaches that your business might take. Basically, there are a few general types of brands that your business could fall into:

Product brands: Products (commodities) become branded products when you win awareness in the marketplace that your product has compelling characteristics that make it different and better than others in the product category. Branding is a powerful tool that differentiates your offering in ways that create consumer preference and allow you to command premium pricing.

Service brands: Services are products that people buy sight-unseen. People buy services purely based on their trust that the person or business theyre buying from will deliver as promised. If you sell a service or run a service business, you absolutely, positively need to develop and manage a strong, positive brand image.

Business brands: You can brand your business, itself, in addition to or instead of branding your products or services. If you can only build one brand and thats the best advice to any business thats short on marketing expertise or dollars make it a business brand because this brand can attract job applicants, investors, and (maybe most importantly) customers.

Personal brands: Whether you know it or not, you have a personal brand. If people know your name or recognize your face, they hold your brand image in their minds. Personality brands: Personality brands are personal brands gone big-time. Theyre individual brands that are so large and strong that they not only deliver wide-reaching personal celebrity but also create significant value when associated with products or services. Think Martha Stewart, Emeril Lagasse, or Oprah, and you're on the right track. Sure, these are all just people, but their names are associated with a superior quality and subject expertise that speaks to their personality branding.

If you aspire to become a leader in your community or industry, keep that goal in mind as you build your personal brand. Develop a personal reputation that you can leverage into a greater good by becoming a small-scale personality brand in your own backyard or business arena.

Brands - Types of Brand

Author: Jim Riley Last updated: Sunday 23 September, 2012
Types of brand There are two main types of brand manufacturer brands and own-label brands. Manufacturer brands Manufacturer brands are created by producers and bear their chosen brand name. The producer is responsible for marketing the brand. The brand is owned by the producer. By building their brand names, manufacturers can gain widespread distribution (for example by retailers who want to sell the brand) and build customer loyalty (think about the manufacturer brands that you feel loyal to). Own label brands Own-label brands are created and owned by businesses that operate in the distribution channel often referred to as distributors. Often these distributors are retailers, but not exclusively. Sometimes the retailers entire product range will be own-label. However, more often, the distributor will mix own-label and manufacturers brands. The major supermarkets (e.g. Tesco, Asda, Sainsburys) are excellent examples of this. Own-label branding if well carried out can often offer the consumer excellent value for money and provide the distributor with additional bargaining power when it comes to negotiating prices and terms with manufacturer brands.

Brand loyalty
Brand loyalty is where a person buys products from the same manufacturer repeatedly rather than from other suppliers.[1] In a survey of nearly 200 senior marketing managers, 69 percent responded that they found the "loyalty" metric very useful.[2]

Purpose
Brand loyalty, in marketing, consists of a consumer's commitment to repurchase or otherwise continue using the brand and can be demonstrated by repeated buying of a product or service, or other positive behaviors such as word of mouth advocacy.[3] Examples of brand loyalty promotions

My Coke Rewards Pepsi Stuff Marriott Rewards

[edit]Construction
Brand loyalty is more than simple repurchasing, however. Customers may repurchase a brand due to situational constraints (such as vendor lock-in), a lack of viable alternatives, or out of convenience.[4] Such loyalty is referred to as "spurious loyalty". True brand loyalty exists when customers have a high relative attitude toward the brand which is then exhibited through repurchase behavior.[3] This type of loyalty can be a great asset to the firm: customers are willing to pay higher prices, they may cost less to serve, and can bring new customers to the firm.[5][6] For example, if Joe has brand loyalty to Company A he will purchase Company A's products even if Company B's are cheaper and/or of a higher quality. From the point of view of many marketers, loyalty to the brand in terms of consumer usage is a key factor. Usage rate Most important of all, in this context, is usually the 'rate' of usage, to which the Pareto 80-20 Rule applies. Kotler's 'heavy users' are likely to be disproportionately important to the brand (typically, 20 percent of users accounting for 80 percent of usage and of suppliers' profit). As a result, suppliers often segment their customers into 'heavy', 'medium' and 'light' users; as far as they can, they target 'heavy users'. Loyalty

A second dimension, however, is whether the customer is committed to the brand. Philip Kotler, again, defines four patterns of behaviour: 1. Hard-core Loyals - who buy the brand all the time. 2. Split Loyals - loyal to two or three brands. 3. Shifting Loyals - moving from one brand to another. 4. Switchers - with no loyalty (possibly 'deal-prone', constantly looking for bargains or 'vanity prone', looking for something different). Factors influencing brand loyalty It has been suggested that loyalty includes some degree of pre-dispositional commitment toward a brand. Brand loyalty is viewed as multidimensional construct. It is determined by several distinct psychological processes and it entails multivariate measurements. Customers' perceived value, brand trust, customers' satisfaction, repeat purchase behavior, and commitment are found to be the key influencing factors of brand loyalty. Commitment and repeated purchase behavior are considered as necessary conditions for brand loyalty followed by perceived value, satisfaction, and brand trust.[7] Fred Reichheld,[8] One of the most influential writers on brand loyalty, claimed that enhancing customer loyalty could have dramatic effects on profitability. Among the benefits from brand loyalty specifically, longer tenure or staying as a customer for longer was said to be lower sensitivity to price. This claim had not been empirically tested until recently. Recent research[9] found evidence that longer-term customers were indeed less sensitive to price increases. Industrial markets In industrial markets, organizations regard the 'heavy users' as 'major accounts' to be handled by senior sales personnel and even managers; whereas the 'light users' may be handled by the general salesforce or by a dealer. Portfolios of brands Andrew Ehrenberg, then of the London Business School said that consumers buy 'portfolios of brands'. They switch regularly between brands, often because they simply want a change. Thus, 'brand penetration' or 'brand share' reflects only a statistical chance that the majority of customers will buy that brand next time as part of a portfolio of brands they favour. It does not guarantee that they will stay loyal. Influencing the statistical probabilities facing a consumer choosing from a portfolio of preferred brands, which is required in this context, is a very different role for a brand manager; compared with the much simpler one traditionally described of recruiting and holding dedicated customers. The concept also emphasises the need for managing continuity.

[edit]Cautions

One of the most prominent features of many markets is their overall stability or marketing inertia. Thus, in their essential characteristics they change very slowly, often over decades sometimes centuries rather than over months. This stability has two very important implications. The first is that those who are clear brand leaders are especially well placed in relation to their competitors and should want to further the inertia which lies behind that stable position. This, however, still demands a continuing pattern of minor changes to keep up with the marginal changes in consumer taste (which may be minor to the theorist but will still be crucial in terms of those consumers' purchasing patterns as markets do not favour the over-complacent). These minor investments are a small price to pay for the long term profits which brand leaders usually enjoy. The second, and more important, is that someone who wishes to overturn this stability and change the market (or significantly change one's position in it), massive investments must be expected to be made in order to succeed. Even though stability is the natural state of markets, sudden changes can still occur, and the environment must be constantly scanned for signs of these.