Complete 4 pages APA formatted article: Marketing (brand management question). A classic example will be DHL. This company won the Platinum Award (Airfreight / Courier Service category) in the Superbrand 2005. Its brand statement is to enhance the customers’ businesses by offering express delivery and logistics solutions based on strong local expertise combined with a vast global network. They keep to their words and thus winning glory in the industry.
Different from the business markets, consumer markets will need more product features and advertising for their product. The audience for consumer markets branding involve the general public, in which the variance of needs and desires are greater than a business markets. Dell Computer is the example of this category of branding. It manages to position itself as a customize personal computer provider. This is collaborated by its successful supply chain management which makes it its brand identity.
A “branded house” means a company which itself is a brand. The products come under this company will be the subset of the main brand. In branding, it gains level of acceptance and importance in short time due to the previous identification with the parent brand. Take for example, Hewlett Packard. This brand name covers products from laptops, desktops, Palmtops to even printers. All the products carry the same brand HP though they have names and are under different product category. It enters the market of palm tops easily despite the effort by Palm Plc.
In contrary to that, a “house of brand” would be a company that markets a range of brands. A classic will be the Procter and Gamble (P&G). It comprises a lot of brands from different product categories such as Duracell the battery, Pantene the shampoo, Olay the beauty products, Mr. Clean the household cleaner, Braun the oral care products and many more.
3.Discuss the risks and benefit of brand extension. Research detailed examples of each.
The benefit for a company to use a successful for brand extension could help it to enter a new product category. Examples are like the Fairy brand (Unilever) which extended from washing up liquid to washing powder and Lucozade which extends from a children’s health drink to sports drink. This brought advantages to the company as it does not post doubt on the customers which presume the product as a newly launched products. It sustains the trust on a single brand to an extended product under the same brand.
However, a failure in doing so could cause damage. Firstly, it is the dilution effect of the brand by products. The example is like when people talk about Fairy, it is not just only a washing liquid anymore. Secondly, it posts difficulties to connect with the parent brand names. Imagine if Colgate is marketing a candy product. It will be a disaster to the brand as the messages from the brand is inconsistent.
4.Discuss factors involved in successful brand differentiation.
The key factors that could drive a successful brand differentiation are
Desire for sustainable brand differentiation
The company and its employees would need to have the same vision on brand differentiation as both are involve in making the strategy a success.