Product brand policy – BMS Notes
Creating or increasing recognition of a product or information about its different parts is one of the main goals of branding in marketing. Because of this, branding has become an important part of a company’s overall marketing plan. It goes without saying that well-known brands have a bigger share of the market than less well-known brands. If a company doesn’t want to lose its market power, it needs a clear brand policy.
Different kinds of branding rules
Family rules for brand names:
Firms that sell all of their goods under one name use a “family brand.” A line of products that are very similar to each other is often sold under the same brand name. IBM in the US and Tatas, Modis, and Mafatlal in India all use family brand names.
A lot of people like family brands like Lakme or Ponds for cosmetics, Dipys for fruit squashes and syrups, Bakeman’s for sweets, and Dabar for Ayurvedic medicines. An effective campaign for a family brand often sees more sales of the whole line after a positive response to a single item. On the other hand, a bad experience may make a customer dislike the whole line of products. So, it’s important to make sure that all of a family brand’s products live up to what customers expect.
Products that don’t have any marketing traits in common are usually sold under their own brands, since they have nothing to gain by being linked to a single brand. There may be times when the family brand hurts sales. Like, putting vegetable ghee, detergent, or soap under a family brand doesn’t make sense. For example, Hindustan Unilever makes sure that each product has its own brand name, which makes this clear. There, vegetable ghee is sold under the brand name Dalda, laundry powder is sold under the brand name Surf, and dish soap is sold under the brand name Rin.
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One brand and more than one brand
Some companies use a strategy called “multiple brand” to get a bigger share of the market. By using this strategy, they sell at least two products that are sold under different brands but are aimed at the same type of customer.
Hindustan Unilever, for instance, sells different kinds of toilet soap under different brand names.
A lot of different brands of shaving blades are sold by Malhotras.
In this case, these two brands are in competition with each other. Whether there should be multiple brands or just one depends on whether the different brands have created unique images that appeal to different groups of people.
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Different Brands
One strategy that manufacturers may use is to sell some of their goods under the brands of one or more middlemen. By following this rule, the manufacturer can get a bigger share of the market and improve his finances at the same time. People who make the goods and people who sell them through middlemen are both expected to follow the policy of private branding.
The middlemen need to think about how they can sell and compete with the brand of the companies that make the goods. The companies that make the goods must also be able to figure out if they can compete with the cheaper brands sold by the middleman. A policy like this is often used for selling hosiery, woollen goods, sports gear, and other things.
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A national or maker’s brand
Producers whose goods are sold all over the world follow the policy of having a national brand. The national or manufacturer’s brand is a brand used by the company that sells their products all over the world. They are able to do this because they have a lot of annual sales, a lot of storage and distribution space, a lot of experience running marketing operations (like keeping a big sales force and running national and comparative advertising campaigns), and they keep doing consumer and marketing research.
Companies that use national brands can easily compete with others thanks to these facilities. When people like national brands, they make a lot of money for the companies that sell them. Second, these kinds of brands help sell a product because they can be used as the focus of advertising campaigns.
7 Different Ways to Build a Brand
Strong growth will come from a product that people like, and these marketing strategies will help you get there.
Recognize a name brand
A company that has been around for a while will often use the weight of its own name to help sell its products. A company with a well-known brand name can usually be found by its logo, slogan, or colours. Companies like Coca-Cola, Starbucks, Apple, and Mercedes-Benz are well-known and have many products that are sold under their own names.
Branding for each person
A bigger company may sometimes make products that stand on their own, separate from the parent company. Setting up the brand as a unique and easy-to-recognize identity is part of this strategy. Cheerios, Chex, Cinnamon Toast Crunch, Kix, Total, Trix, and more are all sold by General Mills, and that’s just their cereal division. The business also sells other well-known brands from all food groups.
A Branding Attitude
When it comes to attitude branding, vague marketing can often be more important than the product itself. All of these brands use strategies that give their products and services personality and a unique feel. Forbes named the NCAA, Nike, and the New York Yankees “The World’s Most Valuable Sports Brands 2015,” and those names are always linked to a certain style. Other brands, like Apple and Ed Hardy, also show how a customer wants to express themselves.
Branding with “no-brand”
An approach that is simple can say a lot. A lot of the time, no-brand products are plain and simple. The Japanese company Muji, whose name means “no label,” has been the most successful at using this method of marketing.
Adding to the brand
When one of your main brands goes into a new market, this is called brand extension. Let’s say you run a shoe business that also makes jackets, running clothes, and perfumes. The brand name gives your product mix its own personality.
Brand-Name Items
People like store brands, also called private labels, more and more at supermarkets. To compete with bigger stores, grocery store chains like Kroger, Food Lion, and Wal-Mart can make cheaper brands.
Crowdsourcing
People from the public are hired to create these brands. This gives customers a chance to help choose the names of the products, which makes them more personally interested in them.