Question

Why are brands so important and under what circumstances would you use family branding versus individual branding? What are the advantages and disadvantages of each?

Answer 1

Brands are any logo , symbol, words, text, name and specific features or attributes attached to a particular product or services offerings to the customers. A new company's products and services may get brand tag when over the period of time , it will fullfill quality, utility, performance and other specific standards criteria.  

For example, Just by looking Apple's cut shaped Apple image on laptop we think about brand Apple's offerings and its quality features.

It is obvious that consumers create positive or negative image about a brand by observing or assessing its logo, jingles , tagline and any other attributes.

Individual branding means selling and marketing each products with separate brand tag whereas Family branding strategy prefers to sell different products with a single brand name or under an umbrella brand name. For example, We recognize Apple's Products and services just its logo or name brand Apple's offerings. Here , it is example of Family branding.

Products of Unilever, P& G can be taken as individual branding. Because, Customers understand Ariel, Surf , Dove , Lux , Good night etc. with a specific or separate brand identity.

There are many factors which influences organization to choose these strategies of branding. Individual branding is more supportive to larger customer sizes. Different segments of customers will have different taste, preferences and life styles hence selling diverse brand name will be helpful in gaining market share, profitability as well as engaging customers with new products bundle. Individual branding taps each segments with several product offers. Organization gains by earning profits in different segments inspite loss occurs in some of the segments of brand. For example, Dove may offer huge earnings to Unilever against loss of many others soaps of Unilever.

Family brand is more important where consumers have similar needs and desire to purchase sophisticated products. For example, Apple i phone is globally accepted as status symbol. It offers specialized benefits to the customers as well as organization. It fails when customers shows varied demand.