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Dnyanasadhana college Thane (w)

t.Y.B.M.M. 5th semester SUBJECT: brand building PROJECT: multi branding strategies Submitted by: Shetty s. sachin Roll no: 25 Submitted to: prof.J .g. haldankar

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sr no . 1. 2. 3. 4. 5. 6. contents

introduction Brand awareness BRAND IMAGE Multi-branding strategy Brand strategic decision Building Brands: How To Expand From Multi-Unit To Multi-Brand Franchisee The advantages &disadvantages multibranding strategy Case Study

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I am much very thankful to our Prof. j.g.haldankar sir for his guidance and support thought out this Project. The information and knowledge given by his served as the basic for this Project.

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I hereby declare that the information which provided in this project is best of my knowledge.

Declaration by Professor

Brand is the personality that identifies a product, service or company (name, term, sign, symbol, or design, or combination of them) and how it relates to key constituencies: customers, staff, partners, investors etc. Some people distinguish the psychological aspect, brand associations like thoughts, feelings, perceptions, images, experiences, beliefs, attitudes, and so on that become linked to the brand, of a brand from the experiential aspect.

The experiential aspect consists of the sum of all points of contact with the brand and is known as the brand experience. The psychological aspect, sometimes referred to as the brand image, is a symbolic construct created within the minds of people, consisting of all the information and expectations associated with a product, service or the company(ies) providing them. People engaged in branding seek to develop or align the expectations behind the brand experience, creating the impression that a brand associated with a product or service has certain qualities or characteristics that make it special or unique. A brand is therefore one of the most valuable elements in an advertising theme, as it demonstrates what the brand owner is able to offer in the marketplace. The art of creating and maintaining a brand is called brand management. Orientation of the whole organization towards its brand is called brand orientation. Careful brand management seeks to make the product or services relevant to the target audience. Brands should be seen as more than the difference between the actual cost of a product and its selling price - they represent the sum of all valuable qualities of a product to the consumer. A brand which is widely known in the marketplace acquires brand recognition. When brand recognition builds up to a point where a brand enjoys a critical mass of positive sentiment in the marketplace, it is said to have achieved brand franchise. One goal in brand recognition is the identification of a brand without the name of the company present. For example, Disney has been successful at branding with their particular script font (originally created for Walt Disney's "signature" logo), which it used in the logo for go.com. Consumers may look on branding as an important value added aspect of products or services, as it often serves to denote a certain attractive quality or characteristic (see also brand promise). From the perspective of brand owners, branded products or services also command higher prices. Where two products resemble each other, but one of the products has no associated branding (such as a generic, storebranded product), people may often select the more expensive branded product on the basis of the quality of the brand or the reputation of the brand owner.

Brand awareness
Brand awareness refers to customers' ability to recall and recognize the brand under different conditions and link to the brand name, logo, and jingles and so on to certain associations in memory. It helps the customers to understand to which product or service category the particular brand belongs and what products and services are sold under the brand name. It also ensures that customers know which of their needs are satisfied by the brand through its products (Keller). Brand awareness is of critical importance since customers will not consider your brand if they are not aware of it.

'Brand love', or love of a brand, is an emerging term encompassing the perceived value of the brand image. Brand love levels are measured through social media posts about a brand, or tweets on sites such as Twitter. Becoming a Face book fan of a particular brand is also a measurement of the level of 'brand love'.

Brand promise
The marketer and owner of the brand have a vision of what the brand must be and do for the consumers. Brand promise is what a particular brand stands for (and has stood for in the past). It has its roots from the identity that it gains over a period of time. Usually, brand promise is an attribute common to ' Parent ' brands. Herein, the brand may broadly stand for Quality, Performance, Trust, or False promises. However, the extensions, or the brands under the parent brand umbrella, may stand individually for a particular trait which it has delivered over the years, for example, 'the best sparkling teeth', or 'the trusted bank to bank with for centuries', et al.

Global brand
A global brand is one which is perceived to reflect the same set of values around the world. Global brands transcend their origins and create strong enduring relationships with consumers across countries and cultures. They are brands sold in international markets. Examples of global brands include Face book, Apple, Pepsi, McDonald's, MasterCard, Gap, Sony and Nike. These brands are used to sell the same product across multiple markets and could be considered successful to the extent that the associated products are easily recognizable by the diverse set of consumers.

In modern business, the brand image occupies a very important position. Often times, it is not the quality of goods or services, but the brand that sets the competition. This is because the consumers are very much concerned about the brand they choose. They trust a product because of the brand reputation of the manufacturer. An established brand finds it easier to market their products than a new and struggling brand. However successful a brand is, constant monitoring and management is required to keep intact the corporate brand reputation it enjoys.

Premeditated attacks on your brand cannot be ruled out either. Sometimes, a disgruntled customer may start a campaign aimed at bringing down your reputation in the market. As such, you should have a system or a strategy in place to protect and enhance your brand reputation. Brand image is the current view of the customers about a brand. It can be defined as a unique bundle of associations within the minds of target customers. It signifies what the brand presently stands for. It is a set of beliefs held about a specific brand. In short, it is nothing but the consumers perception about the product. It is the manner in which a specific brand is positioned in the market. Brand image conveys emotional value and not just a mental image. Brand image is anything but an organizations character. It is an accumulation of contact and observation by people external to an organization. It should highlight an organizations mission and vision to all. The main elements of positive brand image are- unique logo reflecting organizations image, slogan describing organizations business in brief and brand identifier supporting the key values. Brand image is the overall impression in consumers mind that is formed from all sources. Consumers develop various associations with the brand. Based on these associations, they form brand image. An image is formed about the brand on the basis of subjective perceptions of associations bundle that the consumers have about the brand. Volvo is associated with safety. Toyota is associated with reliability. The idea behind brand image is that the consumer is not purchasing just the product/service but also the image associated with that product/service. Brand images should be positive, unique and instant. Brand images can be strengthened using brand communications like advertising, packaging, word of mouth publicity, other promotional tools; etc. Brand image develops and conveys the products character in a unique manner different from its competitors image. The brand image consists of various associations in consumers mind -attributes, benefits and attributes. Brand attributes are the functional and mental connections with the brand that the customers have. They can be specific or conceptual. Benefits are the rationale for the purchase decision. There are three types of benefits: Functional benefits - what do you do better (than others), emotional benefits - how do you make me feel better (than others), and rational benefits/support - why do I believe you (more than others). Brand attributes are consumers overall assessment of a brand. Brand image has not to be created, but is automatically formed. The brand image includes products' appeal, ease of use, functionality, fame, and overall value. Brand image is actually brand content. When the consumers purchase the product, they are also purchasing its image.

Brand image is the objective and mental feedback of the consumers when they purchase product. Positive brand image is exceeding the customers expectations. Positive brand image enhances the goodwill and brand value of an organization. In short, brand image is a unique set of association in the mind of customers concerning what a brand stands for and the implied promises the brand maker .It includes the following:

Sum of all tangible and intangible traits Represents all internal and external characteristics Its anything and everything that influences how brand or a company is perceived by its target constituencies. It is the best single marketable investment a company can make.

It also includes an impression in the consumers mind of a brands total personality. It is developed overtime through advertising campaign with a consistent theme and is authenticated through the consumers direct experience.

Multi-branding strategy
The same product categories in the introduction of multiple brand strategy known as the multi brand strategy. Securities investors often invest a variety of stocks, an investor of all shares held by the collection is the so-called portfolio (portfolio), in order to reduce the risk of increased profit opportunities, and investors must constantly optimize the equity portfolio. Similarly, the establishment of a portfolio of brands, the implementation of multi-brand strategy, often based on the same considerations, and such brand portfolio among various brand images is also linked to the existing differences, not stew, contains a combination of the overall concept more than individual significance.

(1) Nurturing the needs of the market. Not a single brand alone can cultivate a market. Although initially a certain brand to outshine others, but once hard, and so it opened up to a fertile market, other people will be flocking to. Many market competitors opened up a common market, the market will help the rapid development and maturity. When the market began to divide, many contributors to the advertising market usually unavoidable, its effect is to further strengthen the product category of the common advantage. Some market at the beginning of a dynamic, but not the final form of climate, one of the reasons is that few participants. If a wholesale market only 23 shops, empty, the market is not what the market. There are a number of brands together to support an overall market absolutely necessary. Personal computer market as an example, if a business only Apple monologue, no other computer manufacturers follow-up, absolutely impossible for this popular form today's PC market. (2) Various brands so that enterprises have the opportunity to maximize market coverage. Not a single brand alone can occupy a market. As the market matures, the needs of consumers gradually broken down, a brand can not maintain its basic meaning and at the same time meet the same objectives. That is why some enterprises to create a number of brands to the market to different segments of their mind. On the other hand, Western retailers in recent years the rise of self-brand manufacturers to issue a strong challenges to shake the manufacturers to establish and maintain a brand on the active and dominant position. Multi-brand strategy will help manufacturers and retailers curb brokers control a brand further about their own abilities. Multi-brand offers a flexible, help limit the expansion of opportunities for competitors, making competitors are in every segment of the existing brands are entering the obstacles. In the price war to defend the main brand, multi-brand is indispensable. Those secondary brands, as a small unit forces, launched a price war to the competitors to quickly crack down on the flank, who helped to provoke both difficult to Go. At the same time, the core brand's leading position will be Haofa prejudice. Leading brands shoulders ensure that the entire product category of the profitability of the task, their status must be defended otherwise, once the charm of its decline, product unit profit would be difficult to rehabilitation or the end of the brand would be rejected by retailers. (3). Highlight and protect the core brand. When the need to protect the image of the core brand, multi-brand presence all the more significant, in the absence of core brands in the grasp of innovation can not be blindly risk. For example, to defend the brand equity, the Disney film production companies in its use of multiple

brands, making Disney enterprises can produce all types of movies, so as to avoid the damage of Disney's prestigious image. In the West, the retail system to the keen interest in brand diversification, manufacturers use of multi-brand strategy to improve their overall market share, to increase their weight in the trial of strength with retailers. Therefore, the multi-brand strategy will help cultivate business, market coverage, lower marketing costs, restrictions on competitors and effectively respond to the challenges of retailers.

Brand strategic decision

Brand strategy has five kinds of decision-making. Namely: product line expansion strategy, brand extension strategies, multi-brand strategy, the new brand strategy, brand strategy of cooperation. Multi-brand Strategy is the marketing of two or more similar and competing products by the same firm under different and unrelated brands. While these brands eat into each others' sales (see cannibalism), multi-brand strategy does have some advantages as a means of

(1) Obtaining greater shelf space and leaving little for competitors' products, (2) Saturating a market by filling all price and quality gaps, (3) Catering to brand-switchers users who like to experiment with different brands, and (4) Keeping the firm's managers on their toes by generating internal competition. One example I can think of is the GMC Acadia/Traverse/Enclave/... The cars are almost identical, but they are sold as different models. There are certainly benefits for huge corporations who can throw a lot of money for essentially advertising, but the costs are great depending on the product

Alternatively, in a market that is fragmented amongst a number of brands a supplier can choose deliberately to launch totally new brands in apparent competition with its own existing strong brand (and often with identical product characteristics); simply to soak up some of the share of the market which will in any case go to minor brands. The rationale is that having 3 out of 12 brands in such a market will give a greater overall share than having 1 out of 10 (even if much of the share of these new brands is taken from the existing one). In its most extreme manifestation, a supplier pioneering a new market which it believes will be particularly attractive may choose immediately to launch a second brand in competition with its first, in order to pre-empt others entering the market. Individual brand names naturally allow greater flexibility by permitting a variety of different products, of differing quality, to be sold without confusing the consumer's perception of what business the company is in or diluting higher quality products.

Once again, Procter & Gamble is a leading exponent of this philosophy, running as many as ten detergent brands in the US market. This also increases the total number of "facings" it receives on supermarket shelves. Sara Lee, on the other hand, uses it to keep the very different parts of the business separate from Sara Lee cakes through Kiwi polishes to L'Eggs pantyhose. In the hotel business, Marriott uses the name Fairfield Inns for its budget chain (and Ramada uses Rodeway for its own cheaper hotels). Cannibalization is a particular problem of a "multibrand" approach, in which the new brand takes business away from an established one which the organization also owns. This may be acceptable (indeed to be expected) if there is a net gain overall. Alternatively, it may be the price the organization is willing to pay for shifting its position in the market; the new product being one stage in this process. Private labels With the emergence of strong retailers, private label brands, also called own brands, or store brands, also emerged as a major factor in the marketplace. Where the retailer has a particularly strong identity (such as Marks & Spencer in the UK clothing sector) this "own brand" may be able to compete against even the strongest brand leaders, and may outperform those products that are not otherwise strongly branded. Individual and organizational brands There are kinds of branding that treat individuals and organizations as the products to be branded. Personal branding treats persons and their careers as brands. The term is thought to have been first used in a 1997 article by Tom Peters. Faith branding treats religious figures and organizations as brands. Religious media expert Phil Cooke has written that faith branding handles the question of how to express faith in a media-dominated culture. Nation branding works with the perception and reputation of countries as brands. With the trend of multi-unit franchising continuing to drive franchising into the 21st century, some progressive franchisees are looking for the next logical step in the progression of franchising ongoing and complex development. Many are finding that next step is through multi-brand franchising. Multi-brand franchising can offer a great additional growth tool for multi-unit franchisees who have seen their fortunes raise simply from adding new units of one brand. Adding additional brands and units makes logical sense. If following the

franchise system works for one successful brand, it will most likely work in another, then another--if you choose wisely. With a streamlined infrastructure, solid capital base, and strong unit economics, more profit can flow your way with each passing year and additional brand. It's really the idea of diversification, and that's as old as capitalism. Dispersing risk can protect your business from negative market factors like economic downturns and encroaching competition. Diversification is a recommended strategy in designing an investment portfolio and is a big part of the thinking behind the growth in multi-brand franchising. As savvy investors know, no matter how good your ROI may be from a single holding, it's not wise to put all your eggs in one basket. And as multi-unit franchisees seek new avenues for growth, an increasing number are adding second, third, and fourth brands to their portfolios. But why would franchisors want franchisees who aren't fully devoted to a single brand? Simple, they're looking for additional multi-unit partners with a proven track record managing multiple units, relevant industry experience, positive cash flow, strong unit economics, and a solid management team and infrastructure. And, for franchisors, signing multi-unit deals also means dealing with fewer franchisees to sell more units. Meanwhile, multi-unit franchisees seeking a new franchisor partner have similar requirements: a solid management team, strong unit economics, a well-known and respected brand name, and an opportunity to develop a territory over the long term. Here are some of the reasons multi-unit franchisees seek out additional brands:

Infrastructure. Multi-unit franchisees with their own accounting, human resources, and other internal departments often have excess capacity. Adding brands can take advantage of that capacity, growing profits without expanding the home office staff. With a strong infrastructure in place, a multi-brand franchisee has a built-in advantage in building brand awareness in their territory and more easily, rapidly, and successfully penetrating their market with a new brand. Economies of scale. Once an organization attains a certain size, several things get easier and, often, less expensive since you're "buying in bulk": marketing and advertising, supplier costs and services, administrative and back-office functions, and more. For example, one vendor may be able to service all your equipment and, as a result, offer you a more economical rate. Geography. Adding another brand can be the perfect path to continued growth in a region where a single-brand multi-unit operator has built out

their territory, or for a franchisee of a brand with no local opportunities to build more units--without having to travel to new or distant locales. Familiarity with the territory and the dynamics of the market, combined with local connections and a solid grasp of local real estate, developers, and zoning requirements is a real home-court advantage. Financing. A successful track record with one franchise concept demonstrates your ability to lenders who can help you launch that next concept. Thriving multi-unit franchise operators typically have high net worth, extensive contacts, and access to financing to open successful units quickly. These are powerful assets to have. Your existing operation and the value of your real estate can help you acquire a second or third concept, without putting a stranglehold on your cash flow. Training and retention. With two or more brands, a franchisee can offer employees cross-training, flexibility, promotions, and a clear growth path as their skill sets improve. This helps in attracting and retaining top talent as you build your organization, always a challenge in any business. And with better-trained employees, unit economics improve. Co-branding. Locating two or more brands in a single location also allows behind-the-scenes efficiencies that can boost profits. Be careful to maintain compliance with each franchise agreement, as some concepts may not be combined legally or functionally. If it does work, co-branding and comarketing can make more efficient use of your advertising dollar. Synergy. Each franchise brand has its own proprietary operating system perfected over many years and many thousands of customer transactions. While the operating systems differ and must remain separate, sometimes elements of one can be applied to another, or to internal operations at the franchisee's home office. The same holds true for marketing programs, recruiting methods, training, HR, and every other ingredient of franchising success. Keep them separate to maintain compliance, but look for areas to adapt good ideas across your organization.

Multi-brand franchising, when done right, offers great potential to the multi-unit franchisee seeking to diversify their investment, increase their profitability, and build a larger, stronger organization.

Brand extension and brand dilution

The existing strong brand name can be used as a vehicle for new or modified products; for example, many fashion and designer companies extended brands into

fragrances, shoes and accessories, home textile, home decor, luggage, (sun-) glasses, furniture, hotels, etc. Mars extended its brand to ice cream, Caterpillar to shoes and watches, Michelin to a restaurant guide, Adidas and Puma to personal hygiene. Dunlop extended its brand from tires to other rubber products such as shoes, golf balls, tennis racquets and adhesives. There is a difference between brand extension and line extension. A line extension is when a current brand name is used to enter a new market segment in the existing product class, with new varieties or flavors or sizes. When Coca-Cola launched "Diet Coke" and "Cherry Coke" they stayed within the originating product category: non-alcoholic carbonated beverages. Procter & Gamble (P&G) did likewise extending its strong lines (such as Fairy Soap) into neighboring products (Fairy Liquid and Fairy Automatic) within the same category, dish washing detergents. The risk of over-extension is brand dilution where the brand loses its brand associations with a market segment, product area, or quality, price or cachet.

Although the multi-brand strategy has many advantages, but also there are many limitations.
(1) With the introduction of new brands, its net contribution to the market rate

Jiangcheng a marginal decline trend. Economics of marginal utility theory tells us that as a consumer of the increase in consumer goods, the goods were diminishing marginal utility of the trend. Similarly, for an enterprise, with the increase in brand, the new brand-to-business market marginal contribution rate is off the trend of diminishing. This is due to the limited resources within the enterprise, to support a new brand is sometimes necessary to reduce the estimated cost of the original brand on the other hand, enterprises in the creation of new brands on the market because competitors will be the resistance without achieving the desired results They will address the new corporate brand launch a similar competitive brands, or intensify the existing brand marketing efforts. In addition, another important reason is that as companies in the same online brand products increased between the brand will inevitably erode each other's market. In the sudden expansion of the market difficult, it is difficult to imagine the new brand to attract consumers are all competitors customers, or has never used the product, especially when the product differentiation smaller, or the same product Online different brand positioning

difference not significant, this brand eroded among the phenomenon is particularly significant. (2) brand promotion cost more. Enterprises to implement multi-brand strategy, it means that limited resources can not be allocated to the profitability of the few strong brands, brands need a long-term, a huge publicity budget. For some enterprises, it is elusive. The risks of multi production When offering products to the public, branding can help enhance customer loyalty and help the company be more profitable overall. One particular branding strategy you can use is multi-product branding, which involves releasing multiple products with the same brand name. While this strategy can be simple to use, it can lead to some problems. Dilute Brand Name One of the potential problems with using multi-product branding is that it can delete the effectiveness of the brand name. When consumers see the brand name everywhere on many different types of products, they may not necessarily put the same faith in the brand as they once did. This can lead to lower sales in all of the different product categories a brand encompasses. By sticking to related products in a brand, you often can grab more market share of that particular niche. All Products Tied Together Another potential disadvantage of using this branding strategy is that it ties all of the products together. In some cases, this can be good, but problems can arise. For example, if your brand covers household products such as soap and cleaners but it also covers chainsaws, one chainsaw malfunction could lead to a bad perception associated with the other products in the lineup. You have to make sure all of the products in your line share the same level of quality. Difficulty Managing When you put your brand name on many different types of products, you eventually may have a hard time managing them all. If you restrict your brand name to items that are similar to one other, such as soap, shampoo and conditioner, it is typically easier to manage them. If you start dealing with products that are

completely unrelated to one another, such as soap and automobiles, you may have a hard time effectively managing your resources. Expectations on New Products Another potential problem you may run into using multi-product branding is unfair expectations on new products. For example, if your brand has a certain standard of excellence in the eyes of the public, every new product is scrutinized. If the new products do not meet the standards of the old ones, it can lead to a negative stigma surrounding the brand. Every new product must have all of the kinks worked out before you release it to the general public.

The disadvantages of brand extension strategies

(1). Damage to the original brand image. When a certain type of product on the market ahead of the status, the brand has become a strong brand, in the minds of consumers will have a special image orientation, or even become a synonym for such products. This will be a strong brand extension, as proximate cause of (that is the last impression on people's awareness of a more profound impact on the role of) the existence, it is possible to play a strong brand image consolidate or weaken the role. If the improper use of the brand extension, the original strong brand image represented by the information was weakening. (2). Runs counter to consumer sentiment. A brand for the success of the process, the consumer is shaped by the corporate brand-specific functions, such as the quality of the psychological characteristics of specific targeting process. The strength of enterprises and brand extension to or incompatible with the original market has nothing to do with the products, on the contrary the psychological orientation of consumers. Such as "999" was originally

Wei Yao in the well-known brands, "999" extend to beer; consumers will be difficult to accept. The brand extension of such misconduct, not only the effectiveness, but it will also affect the original strong consumer brands in the eyes of the specific psychological orientation.

(3). Cixiaobichang easily form the "seesaw" phenomenon. When a name on behalf of two or more of a difference in the product, consumers will inevitably lead to fuzzy understanding of the products. When the extension of branded products in market competition at the absolute superiority, consumers will be the strength of the original brand positioning transferred to the psychological extension of the brand. Thus, in effect weakened the strength of the brand advantage. This extension of the strong brands and brand competition Cixiaobichang situation changes, that is, "seesaw" phenomenon.

(4). Implicate effect. Will crown a strong brand name in other products, if different products in quality, level on the difference between the poor, which makes the strong brand name products and brand extensions have an impact, not only damaged the extension of brand name products, but also implicate the strong brand. (5). Dilute brand identity. When a brand on the market after the success in the eyes of consumers will have a special image orientation, attention also focused on the consumer to the product's function, quality and other characteristics on. If enterprises use the same brand launch function, is almost the same quality of similar products so that consumers fainted the first shift, the brand identity will be diluted.

Case study

Videocon: From market leadership to overall brand consolidation

Videocons case history, when it unravels its detailed chapters, represents a classic multi branding success story. In the consumer electronics sector, Videocon was a mass brand and very middle-class in character. As a core brand, it did not have any brands at the top end or at the flanks to ward off the thrust from the Sonys, the Panasonics and the VFM Korean range of products. So Videocon developed

Bazooka as a top-of-the-line product to spearhead a frontal assault. Toshiba too was introduced to reinforce this strategy to take on all comers. Private was introduced as a sub-brand and gave tremendous protection to the brand in all the size categories and especially from price-aggressive competitors. The coup de grace was to bring in Sansui to protect the flanks, completing the protection of the core brand, Videocon, from virtually all sides. But according to Newtons law, each and every force has an equal and opposite reaction. So while a new range of brands and sub-brands creates a revenue thrust and protects the core brand, the core brand tends to get compressed over a mediumto long-term period. Likewise, Videocon saw its market share fall to 19 per cent from 26 per cent. However, all the other brands that were a part of the overall multi branding campaign gained substantial market share. So while production capacities were shored up, brand shares got fragmented. This led to an overall consolidation of the core brand, Videocon, which itself grew by 40 per cent. Thus, a multi branding exercise, once initiated, can bring about a substantial consolidation of the core brand. Another application of multi branding is to move into product segmentation based purely on the socio-economic parametersomething which Raymond as a core brand specialized in. Park Avenue, the Raymond brand of readymade, was introduced to cater to the new breed of professionals that was a part of the liberalized era. For the youth who were more into casual wear, there was the Parx range of casuals across various product categories. After that, Manzoni, an absolutely top-of-the-line range of ties, suits and jackets was introduced. Manzoni has been a complete sellout in a period of six months whereas the other brands have flowered independently tooreinforcing the brand values of the core brand, Raymond, and consolidating the overall market share. Multi branding: The Big Boys Game There is no doubt that multi branding is a big bucks game which can only be played by the big players in earmarked business areas and business streams. Profitable enterprises with the necessary operational efficiencies are the only ones capable of supporting brand promotion and brand protection exercises. Besides, they are the only ones capable of allocating huge budgets, deploying huge resources and making tactical retreats or assuming aggressive postures whenever ticklish situations arise. Also, it must be said that over a period of time, as the stronger brand consolidates, they have the wherewithal to not only set up entry barriers but also take on aggressive competitors already present in their market space.

Future and Beyond Technology and the growth of the Internet as a businessenabler will play a dynamic role in extending the tremendous value of the multi branding concept. Blocks of corporate houses, which will capture their spaces and keep

consolidating, will emerge in the long run. There will be transgression of the main brands and sub-brands which, while achieving critical mass, will have their own independent status. Here, multi branding will be effected through a process of acquisitions, buyouts and mergers, alternately leading to the overall consolidation of the main brand. Information management will become very important and the derived competitive advantages will lend a new dimension to the multi-branding concept. In fact, this will ultimately lead to knowledge-based marketing.

Proctor and Gamble Corporate branding vs. multi-branding

Proctor and Gamble (P&G) is the American, fast-moving consumer Goods Company behind many brands you are likely to have lying around your house: Ariel, Bounty, Pringles and Gillette just to name a few. These brands are probably familiar to you. Hence, their strategy to date of promoting multiple brands to target different market segments has been highly effective. However, this has hitherto been at that expense of promoting their corporate brand. Thus, P&G have reviewed their promotional mix; now, the company plans to promote their corporations environmental credentials through T.V. advertising in the U.K. Their belief is that if consumers perceive P&G to be a green company, then they will actively seek out their brands. This coincides with the lauch of their new environmental sustainability vision. Simply, P&G are moving away from a multi-brand strategy to a corporate branding strategy. But surely there are advantages and drawbacks of each approach?

Firstly, what has made P&G so successful? As mentioned before, effective multibranding is the answer. This allows P&G to tailor different features that appeal to different consumers note in the picture above: they manufacture both Head & Shoulders and Pantene shampoo. As a result of this, the company can take a differentiated approach to marketing. Thus, long-term relationships are developed with customers by closely satisfying their wants and needs with products that have a competitive advantage over their competitors. Although P&G have overcome the most common drawback of using a multi-brand strategy that each brand may only obtain a small market share they do suffer from a lack of corporate publicity. Unlike P&G, Unilever and Reckitt Beckinser, their major competitors, have already started to promote their corporate brand as opposed to their products. Unilever distinctively display their logo on their advertisements; while Reckitt Beckinser has started to raise their corporate publicity among students to highlight the graduate job opportunities they offer. So already P&G are playing catch-up with their micro-environment. This means that above-the-line promotion is needed, in the form of advertisements, to quickly raise their corporate profile. This would account for the creative advertising, below, which has already been aired in the U.S. Take note of the ending: although they highlight the relevant product range to Mothers a key market segment the main emphasis is on the company, P&G. This is an indication of how they aim to undertake corporate branding in the U.K sponsorship of the 2012 Olympics that emphasizes their environmental sustainability and healthy living ethos. Thus, like how Mothers in the U.S. may

seek out products from various P&G product lines, health and environmental concerned consumers in the U.K. will theoretically look out for P&G products.

Moreover, I believe that this corporate branding strategy will provide even more long-term benefits for P&G ,that may not even be a part of their marketing objectives. Namely, as consumers trust and recognize P&G, the more willing they may become to try new brands they launch. For instance, Heinzs traditional labeling has become synonymous with high-quality food products. This develops deeper consumer relationships. If P&G can achieve a similar brand positioning in the minds of their consumers then product development becomes less risky and, therefore, innovation becomes more effective. However, in order for corporate branding to be a success, the company must have a good reputation a slightly obvious observation I know. But still, a poor reputation is a major weakness. As such, Kraft Foods unlike others mentioned so far are still emphasizing their product brands other their corporate identity following the consumer backlash over their unethical behaviour during the takeover of Cadbury Chocolate. Ultimately, I believe a corporate branding strategy will work for P&G albeit it being implemented a little late. However, I do not feel that it will be sufficient to promote their apparent environmental considerations; environmental impact varies so much on a product-to-product basis. Hence, each one of their products has different degrees of sustainability it is the brand of the product that will prevail over the brand of the company on ethical issues. But, more importantly, corporate branding is likely to be a huge success for the P&G in terms of making consumers more receptive to the high-quality innovation that the firm has yet to receive credit for.