Individual branding
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Individual branding, also called individual product branding, flanker brands or multibranding, is "a branding strategy in which products are given brand names that are newly created and generally not connected to names of existing brands offered by the company." Each
brand A brand is a name, term, design, symbol or any other feature that distinguishes one seller's good or service from those of other sellers. Brands are used in business, marketing, and advertising for recognition and, importantly, to create ...
, even within a same company, has a unique name, identity and image, allowing the company to target different
market segment In marketing, market segmentation is the process of dividing a broad consumer or business market, normally consisting of existing and potential customers, into sub-groups of consumers (known as ''segments'') based on some type of shared charact ...
s, tailor pricing and marketing strategies, and separate the image and reputation of different products. Individual branding contrasts with
umbrella brand Umbrella branding (also known as family branding) is a marketing practice involving the use of a single brand name for the sale of two or more related products. Umbrella branding is mainly used by companies with a positive brand equity (value o ...
ing and
corporate branding Corporate branding refers to the practice of promoting the brand name of a corporate entity, as opposed to specific products or services. The activities and thinking that go into corporate branding are different from product and service branding ...
, in which the firm markets all of its product together, using the same brand name and identity.


Applicability

Individual branding is the most effective when a company offers numerous unconnected commodities, which vary in quality and price and target different market segments. It is also useful when introducing a new, high-risk product to the market, in order to manage risks to existing brands if the new product should fail. However, the expected revenue from a new brand must justify the higher costs of marketing and advertising.


Advantages

* Reduced corporate identity attached to a product allows brands to be positioned differently, so that product brand isn't connected with the company brand; * Each brand can use different marketing strategies; * Brand separation allows a wider variety of products of different quality to be offered: lower-quality products under their own brand will not weaken the image of higher-quality products; * Each brand can serve consumers in a different way, i.e. brands can work on different markets or appeal to different consumers aims, wishes and so-called 'pains'; * The company's global reputation is not tied to products: the failure of one product will not affect the company's global reputation.


Disadvantages

* Instability within a company can occur because of competition between its brands; * Multiple brands may divide the market and split efforts within one company; * Risk of undesired
market cannibalism Market cannibalization, market cannibalism, or corporate cannibalism is the practice of slashing the price of a product or introducing a new product into a market of established product categories. If a company is practising market cannibalizatio ...
; * Brand creation incurs a high cost in marketing, advertising and sales promotion; * Launching new products as their own brand is higher risk: new brands lack acknowledgement and customer loyalty and need to find recognition.


Examples


Procter & Gamble

The American-based
Procter & Gamble The Procter & Gamble Company (P&G) is an American multinational consumer goods corporation headquartered in Cincinnati, Ohio, founded in 1837 by William Procter and James Gamble. It specializes in a wide range of personal health/consumer he ...
is the world's second largest FMCG company (2019). They have a portfolio of 65 brand overall, mostly in the domain of personal and household care. Examples of their brands include: The company has the portfolio of the following categories: * Beauty & grooming: Always, Gilette,
Head & Shoulders Head & Shoulders (H&S) is an American brand of anti-dandruff and non-dandruff shampoo produced by parent company Procter & Gamble. It was introduced in the United States on 1 January 1961 based in Manhattan and used the slogan THE AMERICA AND WORL ...
,
Herbal Essences Herbal Essences is a brand of hair care products line by Procter & Gamble. The brand was founded in 1971 as the single shampoo Clairol Herbal Essence Shampoo (officially typeset as ''Clairol herbal essence shampoo''). There are 29 collections of ...
, Lacoste fragrances,
Max Factor Max Factor is a line of cosmetics from Coty, Inc. It was founded in 1909 as Max Factor & Company by Maksymilian Faktorowicz. Max Factor specialized in movie make-up. Until its 1973 sale for US$500 million (approximately $ billion in 2017 dolla ...
,
Old Spice Old Spice is an American brand of male grooming products encompassing aftershaves, deodorants and antiperspirants, shampoos, body washes, and soaps. It is manufactured by Procter & Gamble. Old Spice was launched as Early American Old Spice by W ...
,
Oral-B Oral-B is an American brand of oral hygiene products, including toothpastes, toothbrushes, electric toothbrushes, and mouthwashes. The brand has been in business since the invention of the Hutson toothbrush in 1950 and in Redwood City, Califo ...
,
Pantene Pantene () is a brand of hair care products owned by Procter & Gamble. The product line was first introduced in Europe in 1945 by Hoffmann-La Roche, which branded the name based on panthenol as a shampoo ingredient. It was purchased by Procter & ...
,
Tampax Tampax (a portmanteau of tampon and pack) is a brand of tampon currently owned by Procter & Gamble. It was based in White Plains, New York, US until its sale to Procter & Gamble in 1997. It is a subsidiary of P&G's Always brand and is sold in o ...
* Household care:
Ace An ace is a playing card, die or domino with a single pip. In the standard French deck, an ace has a single suit symbol (a heart, diamond, spade, or club) located in the middle of the card, sometimes large and decorated, especially in the c ...
, Ambi Pur,
Ariel Ariel may refer to: Film and television *Ariel Award, a Mexican Academy of Film award * ''Ariel'' (film), a 1988 Finnish film by Aki Kaurismäki * ''ARIEL Visual'' and ''ARIEL Deluxe'', 1989 and 1991 anime video series based on the novel series ...
,
Lenor Downy, also known as Lenor in Europe, Russia and Japan, is a brand of fabric softener produced by Procter & Gamble that was introduced in 1960. Lenor is a brand name of fabric softener and dryer sheets, also produced by P&G, sold in Europe, Rus ...
,
Fairy Liquid Fairy is an international brand, primarily used for washing up liquid and dishwasher detergent, owned by the American multinational consumer products company, Procter & Gamble. The brand originated in the United Kingdom and is now used on a numbe ...
,
Pampers Pampers is a brand of baby and toddler products marketed by Procter & Gamble. History In 1961, P&G researcher Victor Mills disliked changing the cloth diapers of his newborn grandchild. He assigned fellow researchers in P&G's Exploratory Divi ...
In 2014, 21 brands had annual sales of $1 billion to about $10 billion, and 11 with sales of $500 million to $1 billion. The global annual sales of the company was $83 billion in 2014.


Unilever

The British-Dutch consumer goods company
Unilever Unilever plc is a British multinational consumer goods company with headquarters in London, England. Unilever products include food, condiments, bottled water, baby food, soft drink, ice cream, instant coffee, cleaning agents, energy dri ...
operates in 190 countries worldwide. The company has a portfolio that includes the following categories and brands: * Food and drink: Flora, Algida, Hellmann's, Knorr, Lipton, Magnum, Ben&Jerry's, Carte D'or, Cornetto, Cremissimo, I Can't Believe It's Not Butter, Rama, Bertolli * Home care: Domestos , Surf, Cajoline, Cif, Persil, Comfort * Personal care:
Axe An axe ( sometimes ax in American English; see spelling differences) is an implement that has been used for millennia to shape, split and cut wood, to harvest timber, as a weapon, and as a ceremonial or heraldic symbol. The axe has ma ...
,
Dove Columbidae () is a bird family consisting of doves and pigeons. It is the only family in the order Columbiformes. These are stout-bodied birds with short necks and short slender bills that in some species feature fleshy ceres. They primarily ...
, Lux,
Rexona Rexona is an Australian deodorant and antiperspirant brand, owned by British conglomerate Unilever. While marketed under the Rexona name in most countries, it is known as Rexena ( ja, レセナ; ko, 레세나) in Japan and South Korea, S ...
, Signal, * Water purifier: Pureit Of the company's 400 brands, 14 have a yearly profit of over €1 billion, while the global yearly turnover of the company was €48.4 billion in 2014.


See also

* Branding strategies **
Corporate branding Corporate branding refers to the practice of promoting the brand name of a corporate entity, as opposed to specific products or services. The activities and thinking that go into corporate branding are different from product and service branding ...
**
Umbrella brand Umbrella branding (also known as family branding) is a marketing practice involving the use of a single brand name for the sale of two or more related products. Umbrella branding is mainly used by companies with a positive brand equity (value o ...
* Brand architecture *
Brand management In marketing, brand management begins with an analysis on how a brand is currently perceived in the market, proceeds to planning how the brand should be perceived if it is to achieve its objectives and continues with ensuring that the brand is pe ...
*
Marketing Marketing is the process of exploring, creating, and delivering value to meet the needs of a target market in terms of goods and services; potentially including selection of a target audience; selection of certain attributes or themes to emph ...


References

{{Reflist Branding terminology Brand management Types of branding