Differentiate Between Individual Branding And Family Branding
Individual and family branding are the two essential branding methods to consider. Many reasons contribute to the significance of individual branding in business. Individual branding helps to sell a product by giving it a distinct name and identity. Furthermore, the corporate brand reputation will not be harmed if the product fails.
Family branding, on the contrary, is a marketing technique in which a corporation utilises the same name for all of its products. Some of the benefits of family branding include immediate awareness, cost-effectiveness (no need for research), and lower marketing expenditures. The basic idea underlying this strategy is to improve product competitiveness.
Let’s look at both these branding strategies to see how they differ.
Individual branding is a promotional approach of giving a product a particular identity and launching it under a separate brand name. As a solution, the company should debut the product as a separate entity in the marketplace. A company must build a distinct product presence in the market to market its latest items.
Individual branding becomes more important during times of crisis. This brand marketing plan was developed to assist a parent brand in addressing several issues. It was created to shield businesses from a crisis’s hazards. In recent years, “multibranding” and “flanker brands” have become prominent marketing terms. However, not all marketers know this branding strategy’s benefits and drawbacks.
- Every individual brand may appease a diverse group of customers effectively.
- The downfall of one brand does not affect the overall organisation since its reputation is not dependent on a single brand name.
- The possibility of achieving numerous levels of client loyalty is relatively high.
- Companies can reach out to and service their customers in various ways.
- It enables businesses to promote their products effectively, contributing to enhanced consumer interaction.
- It enables the company to offer a wide selection of services and products.
- Individual branding raises the likelihood of organisational instability.
- Developing a new brand name could undoubtedly be highly expensive.
- Managing multiple product offerings may make a company’s business riskier.
- There is a threat that the new product will eat into the market share of an established product.
The primary idea behind family or umbrella branding is to promote a complete product range or multiple items under a single-parent brand name. The goal of employing family branding is to leverage the parent brand name and produce a continuous line of products that contribute to the brand. This makes the overall brand and product easier to identify and increases marketability.
There are several advantages to establishing a family brand. When you develop a family of brands, you create a consistent identity and brand image for all of your services and products, eliminating the need to start a new campaign each time you introduce a new product. However, there are some drawbacks as well. When all of your goods share the same name, there’s a chance that one lousy product may derail your entire business strategy. Customers will naturally align their perceptions with your other products if they build bad connotations with one of your products.
- Positive brand equity influences all products and services associated with the umbrella brand.
- Individual products leverage the parent brand’s reputation and trust for effortless advertising.
- Family branding creates instant awareness, and the company does not have to educate clients from the ground up.
- When researching new product lines, there’s very little time required to build credibility.
- Umbrella branding cannot be implemented if the products lack fundamental marketing characteristics.
- The failure of one product influences the other products as well.
- Introducing a product unfamiliar to your brand family might confuse your customers and reduce loyalty.