Mixed branding Essay

Definition Mixed Branding is where a firm markets products under its give birth name and that of the reseller(s) because the segment attracted to the reseller is polar than its own market. Eg. The company sells its Elizabeth Arden bell ringer done department stores and a line of skincare products at Wal-Mart with the Skinsimple betray name. StratergiesWhen promoting a dishonor, companies sometimes choose to follow a multiproduct stigmatization strategy, similar to automakers pass over and Toyota. In this regard, a companys name is an umbrella cross for all its products. Coca-Cola, Apple and Intel have focused their energies on branding their bodily names and images rather than individual products. Grocery chains and big-box retailers use private-label branding to attract value-conscious customers.AdvantagesCompanies use branding to differentiate their products based on value, fibre and other attributes. A positive brand image creates a hoop effect that affects existing pr oducts and makes it easier to introduce immature products. The Intel Inside campaign, for example, was designed to brand all Intel microprocessors as high-performance and high- graphic symbol products. Apple has followed a somewhat different route because it relies on its corporate name and unique product brands.A mixed-branding strategy can leverage a companys disposition for innovation to carve out profitable market niches, such as Apples Mac computers for graphics-intensive operations, while developing entirely new markets, examples of which would be iPods and iPads. Kraft consumers know they are getting a quality food product, which makes it easier and more cost-effective for Kraft to introduce and gain consumer credenza for new products.DisadvantagesThe main disadvantage of branding is the high advertising and associate public relations costs. Establishing a local or international brand requires yearsof sustained advertising, high levels of quality and exceptional customer proceeds. A brand image and reputation cannot be established in a few weeks. Companies must continue their promotions even during economic downturns or when gross revenue stagnate, because if they do not, competitors might fill the void and be in a better position when the economy turns around.These expenditures can reduce margins, especially if sales volumes are being affected by price competition or changing customer preferences. Also, there is the risk that poor customer service by wholesalers or retailers in the distribution channel might conjecture poorly on the brand itself. Manufacturing issues that lead to product recalls, such as Toyotas well-publicized problems with brakes from 2009 to 2011, can also affect a brands image, which usually requires additional expenditures to repair.