BRAND MANAGEMENT STRATEGY
The concept of brand management is not entirely new in the marketing of
consumer products. Proctor & Gamble (P&G) when launched “Camy” brand in
1930, they were afraid that this brand would fail, as it would have to compete
directly with the company’s established brands (e.g., Ivory). In order to give
protection to the newly launched “Camy” the company for the first time in
history, introduced the “brand manager system.” Under this system, a brand
manager was appointed for “Camy”, and he was given all the authority,
including competing directly against the established brands . The
strategy of brand management was so successful that the firm formally adopted
this philosophy. Four brand strategies are available for a company: multi-brands, to introduce new
brand, line extensions, or brand extensions.
Multi-branding is introducing additional brands in the same product category in
which the company is presently active. The purpose of multi-branding is to
establish different features so that they are appealing to several different
buying segments at the same time. Procter & Gamble following this strategy
has thus included nine different kinds of laundry detergents.
The second strategy is a creation of a new brand when launching into
a new product category.Generally, a new brand is developed when firms believe that the
current brand is loosing its charm and a new brand name is needed or when
the firm feels that the current brand name is not appropriate for a new product. The other
concepts are brand extension either by line extensions or category extension.
There are two ways of launching a new product into the market. One is known as Line Extension
i.e. use of an established brand name for a new product in the same category. New product differs
from actual parent product in size, colour or packages.
The concept of brand management is not entirely new in the marketing of
consumer products. Proctor & Gamble (P&G) when launched “Camy” brand in
1930, they were afraid that this brand would fail, as it would have to compete
directly with the company’s established brands (e.g., Ivory). In order to give
protection to the newly launched “Camy” the company for the first time in
history, introduced the “brand manager system.” Under this system, a brand
manager was appointed for “Camy”, and he was given all the authority,
including competing directly against the established brands . The
strategy of brand management was so successful that the firm formally adopted
this philosophy. Four brand strategies are available for a company: multi-brands, to introduce new
brand, line extensions, or brand extensions.
Multi-branding is introducing additional brands in the same product category in
which the company is presently active. The purpose of multi-branding is to
establish different features so that they are appealing to several different
buying segments at the same time. Procter & Gamble following this strategy
has thus included nine different kinds of laundry detergents.
The second strategy is a creation of a new brand when launching into
a new product category.Generally, a new brand is developed when firms believe that the
current brand is loosing its charm and a new brand name is needed or when
the firm feels that the current brand name is not appropriate for a new product. The other
concepts are brand extension either by line extensions or category extension.
There are two ways of launching a new product into the market. One is known as Line Extension
i.e. use of an established brand name for a new product in the same category. New product differs
from actual parent product in size, colour or packages.