Marketing for two or more almost identical, competing products belonging to single organization is called as multi-product branding. The central idea of multi-product branding is to increase the brand’s overall market share by introducing different products from same brand. For the nature of this marketing, B2C is a common niche for multi-product branding as it relies heavily on market segmentation.
Planning, executing, and maintaining marketing strategies in such instance is crucial. More often than not, the users might face confusion due to overlapping segments, or the business suffers due to poor management or business choices. We have curated some fool-proof solutions for issues that might hinder your multi-product branding strategies.
Brand architecture
There are three main types of brand architecture. A business can be categorically be placed in either of these:
1.Branded House/Masterbrand
The parent brand greatly influences the identity of its sub-brand. The parent brand is recognizable and prominent that aligns all the sub-brands under its position. For example, Google and its sub-brands like Maps, Chrome, Drive, etc.
2.Endorsed Brand
The sub-brands carry same value as parent brand whilst maintaining its own brand identity. The sub brands leverage the parent brands name and position in the market. For example, Marriott and its sub-brand like JW Marriott.
3.Hybrid
In this brand architecture, the sub-brand and parent brand blends seamlessly. For example, Coca-Cola and its sub-brands like Coke, Diet Coke, Coca-Cola Zero, etc. The company maintains its multiple product lines like Sprite, Dasani, Fanta, etc.
Each of these architectures have its own advantages and drawbacks. For when products operating under a company fails, it might reflect poorly on the whole organization. Similarly, it can be tackled efficiently when the organization’s identity is instilled across the customers from its various product lines and helps in tackling or minimizing the risks involved in case of a product failure. Choosing the brand/organization architecture is the first step towards chalking result driven strategies.
Categorize and Prioritize
Distinguishing is of an essence when it comes to multi-product branding. A company should be extremely cautious and calculated while choosing the products they want to be associated with. Companies adhere to a certain standard of quality standards. Associations with some products might cause confusion for the users. In such instance, it is the best to maintain the products through different names.
These products can be prioritized and monitored differently. The company should identify the key points a consumer considers for choosing from the products. However, the company should ensure that it does not pitch any competition amongst its products – it may result in conflicts and affect the company’s profits.
Transparency and Reputation
A company should clearly be able to focus on the product that would reap the most value for the company. One of the most prominent company that was able to do so correctly was Colgate. It benefitted from its association with its line of Total toothpaste. Analytical approach helps in avoiding investing time and resources in establishing a new line while a poor connection exists to the company’s reputation.
A company should determine their reputation in the market. The company can then take steps to either leverage the existing reputation, or take steps to fill-in the gaps to ensure the customer is attracted to make a purchase.
Filling in the gap in the brand reputation for the new product may also include determining the name that would be used for marketing the product. It is a time consuming, yet a very important step that involves diligent and calculated approach.
Maintaining Organization
The nature of multi-product branding essentially has a challenge of multiple lines of products that require maintenance and management. Establishing a structure to control separate lines of products effectively tackles the problem of facing much greater competition amongst themselves or in the market.
Maintenance offer incurs significant costs – however, they yield greater profits if applied correctly.
Advertisements
Strong ad campaigns are advisable for companies that are introducing a new product line. It helps in influencing how the consumers would perceive a new product instead of redefining the company’s existing image.
The company should however ensure that the consumer, in no way, assumes the product to be a start-up effort – but a venture by the existing company. Marketing services agencies like Runtime Solutions hold expertise in creating balanced and result oriented campaigns and strategies.
Adhering to the Products Identity
When a company offers several products for different needs, it is quintessential that the consumers are able to adhere to the identity of each product that is manufactured by the company. Mission statements released by the stockholders are very instrumental in achieving this.
Multi-product branding poses many obstacles that are challenging, but not impossible for a company to overcome. Online marketing agencies are instrumental in achieving this. The companies can leverage from the ‘halo effect’ of the existing brand and obtain profits from the sale of multiple products which they are often unable to do by focusing on just one product or brand identity.