3 Most Important Types of Brand Building Strategy
When different brands work together to market their products, this is referred to as “co-branding”. When a company sells the rights to use a brand name to another company for use on a non- competing product or in another geographical area, this is referred to as “brand licensing.” An “employment brand” is created when a company wants to build awareness with potential candidates. In many cases, such as Google, this brand is an integrated.
There are 3 types of main brand building strategies
1. Corporate branding
1. Corporate Branding:
The different approaches of corporate branding are monolithic and endorsement brands
a. Monolithic branding:
In this all products or services of company carry company’s name. This strategy is preferred by service companies like banks, insurance companies and hotels. Japan has major county in which companies following monolithic.
b. Endorsement Branding:
This is also called as house branding. In this strategy company used both corporate name & idea. It helps products to get their own identity and positioning in market while drawing on the strengths of corporate name, this approach has been adopted by Nestle which uses its corporate name to endorsed all its products. This strategy helps the organization to gain economies of scale (higher profit) in advertising and Communication. Disadvantage of this strategy is if the new product does not fair well in the market it effects the corporate adversely.
2. Multi-Branding Strategy:
This strategy is used by the company’s which used different names for products in the same products in the same product category. Facing increasing competition, it becomes necessary for a company to identify its core brand. The first step towards implementing a multi branding strategy is to evaluate different brands and decide on signal brand that gives highest sales quality and generate the highest revenue and profit. Multi-branding is useful for finer segment and position as one gets to recognize the core brands which always need to be strengthened and positioned.
3. Co-Branding Strategy: Co-branding can take Three Forms:
i. Ingredient Branding
ii. Co-operative Branding
iii. Complementary Branding
Ingredient Branding: In this foam a basic ingredients of product are mentioned next to the actual product name.
In this from a basic ingredient of product are mentioned next to the actual product name.
It is the Joint Venture of two or more brands where both brands are well- established in their respective segments.
It involves the marketing of two brands together to encourage co-consumption or co-purchase such as bottle coke with Mc-Donalds Berger.