Product brand policy

20/06/2020 1 By indiafreenotes

One of the prime objectives of branding in marketing is to generate or increase recognition of a product or of information pertaining to its various aspects. Branding has, therefore, become an important element in the overall marketing strategy of a firm. It goes without saying that the brands that are most widely recognized have a large market share than the less important ones. A definite brand policy is called for if the market potency of a firm is not to be blunted.

Types of Branding Policies

  1. Family Brand name policy:

A family brand is used by firms that offer all their merchandise under one name. A product line containing closely-related products are quite often sold under one brand name. The IBM in the USA, Tatas, Modis and Mafatlal in India follow the family brand name policy.

Family brand name such as Lakme or Ponds for cosmetics, Dipys for fruit squashes and syrups, Bakeman’s for confectionery, Dabar for Ayurvedic medicines are quite popular. When a family brand is successfully advertised, a favorable reaction to one item often leads to an increase in the sale of the product line. Contrary to this, an unfavorable experience may set the consumer against the entire product line. Due care must, therefore, be taken to ensure that all items of a family brand must meet the consumer’s expectations.

Products lacking common marketing attributes are usually sold under individual brands, for nothing can be gained from their joint association with one single brand. At times, there may be an adverse reaction to sales resulting from the family branding. For example, there is no point in putting vegetable ghee, detergent or soap under a family brand. This is obvious from the branding policy of Hindustan Unilever, where every item is sold under an individual brand name. Here, vegetable ghee is sold under the brand name of Dalda, washing powder under the brand name of Surf, detergent soap under the brand-name of Rin.

2. Single Brand and Multiple Brand

In order to strike a greater market penetration some manufacturers employ a multiple brand strategy. Under this strategy, they market two or more products that are labelled under different brands but are designed to appeal basically to the same category of customers.

For example,

  • Hindustan Unilever is selling various toilet soaps under different brand names.
  • Malhotras market shaving blades under different brand names.

In such cases, each of these brands competes with the other brand. The decision to have separate brands or to stick to one single brand depends on whether different brands have developed dissimilar images that appeal to different market segments.

3. Mixed Branding

Manufacturers may adopt a strategy of marketing a part of their output under the brands of one or more middlemen. By following this policy, the manufacturer can grab a larger market share, besides strengthening his financial status. Where the policy of private branding is adopted, both the manufacturer and the middlemen are expected to take a policy decision.

The middlemen must give due consideration to the fact that they would be able to sell and compete with the manufacturers’ brand. Manufacturers, too, must be able to evaluate whether they would be able to compete with the middleman’s brands which sell at a lower price. Such a policy is usually adopted for the sale of hosiery, woolen and sports goods, etc.

4. National or Manufacturer’s Brand

The policy of having a national brand is followed by producers who enjoy wide geographical distribution. The national or manufacturer’s brand is a brand used by the producer who enjoy a wide geographical distribution. “This they are able to achieve because they have a high annual sales value, extensive warehousing and physical distribution facilities; the capacity and experience in conducting marketing operations, which include maintaining a large sales force and conducting comparative and national advertising programmes; continued consumer and marketing research programmes and maintaining extensive warranty and service programmes.”

Because of these facilities, companies using national brands can easily compete with others. National brands, once acceptable to the consumer, bring large profits to the distributors and the product. Secondly, such brands help merchandise a product, because promotional campaigns can be developed around the brand.”

7 Types of Branding Strategies

A well-received product will result in strong growth, and these types of marketing strategies will get you there.

  1. Name Brand Recognition

A well-established company will often use the weight of its own name brand to extend to its products. Most often, a company with large name brand recognition can be recognized by its logo, slogan, or colors. Companies such as Coca-Cola, Starbucks, Apple, and Mercedez-Benz are all iconic while featuring multiple subsidiary products featured under the company name.

  1. Individual Branding

Sometimes a larger company may produce products that carry their own weight independent of the parent company. This strategy involves establishing the brand as a unique identity that is easily recognizable. General Mills, for example, distributes Cheerios, Chex, Cinnamon Toast Crunch, Kix, Total, Trix, and more and that’s just the cereal division. The company also distributes other major brands from every food group.

  1. Attitude Branding

Ambiguous marketing can often go above the actual product itself in the case of attitude branding. These brands all use strategies that bring to life personality and a customized experience with products and services. NCAA, Nike, and the New York Yankees made Forbes list of “The World’s Most Valuable Sports Brands 2015,” and are automatically associated with a certain style. Other brands, such as Apple and Ed Hardy, also reflect a customer’s self-expression.

  1. “No-brand” Branding

A minimalist approach can speak volumes. No-brand products are often simple and generic in design. The most successful company to establish this marketing method is the Japanese company, Muji, which simply translates to “no label.”

  1. Brand Extension

Brand extension occurs when one of your flagship brands ventures into a new market. Say you have a shoe company that is now making jackets, athletic wear, and fragrances. The brand name carries its own identity to your product mix.

  1. Private Labels

Store brands or private labels have become popular at supermarkets. Retail chains such as Kroger, Food Lion, and Wal-Mart can produce cost-effective brands to compete with larger retailers.

  1. Crowdsourcing

These brands are outsourced to the public for brand creation, which allows customers the chance to be involved in the naming process, and effectively drives up personal interest in a product.