Which,relations,among,Brand,an marketing Which relations among Brand and Corporate?
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Corporate and brand partially correspondThis is the case of Coca-cola. The Coca-cola Company corporate counts among its brandsnot just the Atlanta famous one, but many other drinks such as Fanta, Sprite,Minute Maid, Oasis COCA COLACOMPANY Coca ColaSpriteFantaOasisMinute MaidTheres then the chance for the corporate to be its own brand and corporateof many other brands.Corporate acts as source of brands identifiable underdifferent shapesIts a strategy similar tothe umbrella one, exceptthat products show the corporate name and not a generic one.What prevails between the two names is the source brand one: the product nameshows its uniqueness but the main brand stands out. A sample is given by sir Richard Bransons VirginGroup.VIRGIN GROUPVirgin RecordsVirgin Atlantic AirwaysVirgin PlayVirgin ColaVirgin Resort and Hotel This brand is a remarkable example of how a brand canbe widespread, from registration products, to flights up to wedding dressesalways keeping its benefits in every segment. Following such a policy,corporate is successful when it represents a life style shared by products putforward on the markets. The corporate that opts for this strategy must beable to manage both roles and, moreover, it should bring the consumer on twodifferent levels: the low-positioned brand in the hierarchy will enrich thecorporate meaning through its own one, already able to attract the segment towhich its addressed.One of the most criticalaspects is respecting the identity of the source corporate, that fixes thebrand limits: the productnames, for example, will belong to the source brand semantic area and they willinclude the brand peculiarities. It could trigger problems related to bid too much thebrand to the real world, with no chance to convey it in an imaginary one. Thename Virgin Atlantic Airways is for sure less intriguing than Volare one.In case you want your low-positioned brand releasedin the hierarchy, you should adopt an endorsingbrand strategy, linking the corporate name to the brand through a simpleby. Typical examples of this relation could be fashioncompany perfumes, (Eternity by Calvin Klein) or fashion company stylists suchas Guess by Marciano.Corporate and brand correspondIn this case one brandsupports several products on different markets and each item distinguishes itself from the others byits own communication and features.The Illy coffee is an example ofcorporate/brand/product, Yamaha is astrong and reliable brand in motorcycling as well as in musical instrumentsframe of reference; Philips markets its brand hi-fi, computers, consumerelectronics and electrical components.The slogan the company brand is the future becomesa value capital for consumers, just think to brands such as Harley Davidson,able to devise a relational world providing a social and ideological universe.Main advantages All products can appeal tothe same brand popularity andjoin international economies of scale. If entering new markets thebrand awareness high level could be extremely valuable to spread through distributors andconsumers with no effort to build it up. Brand celebrity can even beenough to become successful in small areas or where advertising and marketing efforts are notnecessary.Maindisadvantages Its difficult to releasethe consumer polarization innew market segments.Possible negative effects of a product failure in a specificmarket/area on its corporate.Corporate and brand dontcorrespondA typical case is given by Unilever: this company hasmade the one-brand/one-product policy its branding philosophy, because itappears with different brands in varying product classes, each one with aspecific and clear positioning without showing the corporate name. The companyis visible only in one market and its trying to be leader in its product classwithout binding its name to any market segment.The policybenefitsOne benefit is the chance tojoin new segments without necessary involving the corporate name.This will entail an almost absolute freedom to enternew markets, avoiding that possible failures undermine corporate and its brandsreliability. We can quote Procter & Gamble as well; at the endof 800 indeed it introduced on the market the Ivory soap, then it joined othersegments, keeping its different identities autonomous: from the soap powder(Dreft, Tide, Dash) to the toothpaste (Crest) up to the French fries(Pringles). PROCTER & GAMBLEDashPampersIvoryAcePringles Advantageous relations withdistributors.The space that distributors assign to each companydepends on the number of company strong brands; if a brand reaches a marketwith several products, the retailer will satisfy company demand dealing justwith some products; on the opposite, in the case of one brand for each product,the company will get more space in terms of portfolio.The main negativefeatures are above all economic.Each corporate during a newbrand/product start-up must necessarily cope with the high costs of advertising and promotion investments. Furthermore, ifthe separation between brands and products avoids the risks of secondarynegative associations, it also voids all potential benefits for brands thatcould reach the success thanks to one of them. If a brand becomessuccessful, the other ones wont be able to enjoy it because both show noreference to their common origin.The corporate must also dealwith the distributors thatwill make a stand because not so inclined to keep on their shelves brands stillnot accustomed by consumers.Distributors, being directlyinvolved in the process, well know the corporate hiding behind the marketedbrands that will besusceptible to the brand success or failure.The market saturation makesharder and harder the new brands launch.
Which,relations,among,Brand,an