Branding Strategies Multiproduct Branding Strategy A company may use one name for all its product capitalizing on its brand equity and the favorable perception that the consumers have for it (i.e., the company’s trade name and brand name are the same, as it is for Sony, GE, and Microsoft). This strategy allows for product-line extensions, or the use of an existing brand name to enter new market segments in the same product class. Line extensions work best if they take business away from the competition (i.e., incremental business) and do not cannibalize the company’s existing sales. An important decision companies must make is under which brand a new offering will be marketed. For example, Black & Decker makes power tools for consumers under its Black & Decker brand, while tools for more serious do-it-yourselfers and professionals are under its DeWalt brand. If Black & Decker decided to add to its DeWalt line new products such as coolers, portable radios, CD players, and other accessories construction professionals might find useful at a job site, the company would be creating a brand extension, which involves using an existing brand name or brand mark for a new product category. Why would Black & Decker add these accessories to the DeWalt line? If the company did, it would be because DeWalt already has a good reputation for high-quality, long-lasting durability and performance among construction professionals. These same professionals would trust the DeWalt brand to deliver. When they're branding a new offering, firms have to consider the degree of cannibalization that can occur across products. Cannibalization occurs when a firm's new offering eats into the sales of one of its older offerings; ideally, when you sell a new product, you hope that all of its sales come from your competitors' buyers or buyers that are new to the market. A completely new offering will not result in cannibalization, whereas a line extension likely will. A brand extension will also result in some cannibalization if you sell similar products under another brand. For example, if Black & Decker already had an existing line of coolers, portable radios, and CD players when the DeWalt line was launched, the new DeWalt offerings might cannibalize some of the Black & Decker offerings. However, some marketers argue that cannibalization can be a good thing because it is a sign that a company is developing new and better offerings. These people believe that if you don't cannibalize your own line, then your competitors will. Other companies engage in sub-branding, or combining the corporate brand with another brand (e.g., Lamborghini Murcielago or Porsche Boxter). On the other hand, a brand extension capitalizes on a strong brand equity and involves the use of an existing brand name to enter a totally different product class (e.g., Suzuki motorcycles ext.

1. Branding Strategies
Multiproduct Branding Strategy
A company may use one name for all its product
capitalizing on its brand equity and the favorable perception
that the consumers have for it (i.e., the company’s trade name
and brand name are the same, as it is for Sony, GE, and
Microsoft). This strategy allows for
product-line extensions, or the use of an existing brand
name to enter new market segments in the same product class.
Line extensions work best if they take business away from the
competition (i.e.,
incremental business) and do not cannibalize the
company’s existing sales.
An important decision companies must make is under
which brand a new offering will be marketed. For example,
Black & Decker makes power tools for consumers under its
Black & Decker brand, while tools for more serious do-it-
yourselfers and professionals are under its DeWalt brand. If
Black & Decker decided to add to its DeWalt line new products
such as coolers, portable radios, CD players, and other
accessories construction professionals might find useful at a job
site, the company would be creating a
brand extension, which involves using an existing brand
name or brand mark for a new product category.
Why would Black & Decker add these accessories to the
DeWalt line? If the company did, it would be because DeWalt
already has a good reputation for high-quality, long-lasting
durability and performance among construction professionals.
These same professionals would trust the DeWalt brand to
deliver.
When they're branding a new offering, firms have to
consider the degree of
cannibalization that can occur across products.
Cannibalization occurs when a firm's new offering eats into the
sales of one of its older offerings; ideally, when you sell a new

2. product, you hope that all of its sales come from your
competitors' buyers or buyers that are new to the market. A
completely new offering will not result in cannibalization,
whereas a line extension likely will. A brand extension will also
result in some cannibalization if you sell similar products under
another brand. For example, if Black & Decker already had an
existing line of coolers, portable radios, and CD players when
the DeWalt line was launched, the new DeWalt offerings might
cannibalize some of the Black & Decker offerings.
However, some marketers argue that cannibalization can
be a good thing because it is a sign that a company is
developing new and better offerings. These people believe that
if you don't cannibalize your own line, then your competitors
will.
Other companies engage in
sub-branding, or combining the corporate brand with
another brand (e.g., Lamborghini Murcielago or Porsche
Boxter). On the other hand, a brand extension capitalizes on a
strong brand equity and involves the use of an existing brand
name to enter a totally different product class (e.g., Suzuki
motorcycles extending its name to cars and outboard motors).
However, too many uses of a brand name may dilute its meaning
to the consumers as has happened with Arm & Hammer’s brand
that has been used for toothpaste, detergent, cat litter, baking
soda, carpet deodorizer, deodorant, and air freshener (Kerin &
Hartley, 2017, p. 308).
Multibranding Strategy
With multibranding strategy, the company gives a distinct
name to each product. This is a useful strategy when each brand
is intended for a different market segment. For example, P&G
markets its flagship detergent under the Ariel brand, while Tide
is the low-tier brand. In the United States, Tide is the flagship
detergent. This strategy involves higher promotion and
advertising costs compared to the multiproduct branding
strategy; however, since each brand is unique to its market,
there is no risk that failure of one brand will impact the other

3. brands in the line (Kerin & Hartley, 2017).
Private Branding Strategy (Private Label)
With a private branding strategy, a company manufactures
products but sells them under the brand name of a retailer (e.g.,
Rayovac produces batteries for retailers such as Walmart and
Kroger). This is a highly profitable business for both sides, and
about 20 percent of all products sold in drugstores and
supermarkets bear a private label (Kerin & Hartley, 2017).
Mixed Branding Strategy
Using a mixed branding strategy, companies market
products under their own brand and under private labels and sell
in different market segments (Kerin & Hartley, 2017).
References
Kerin, R. & Hartley, S. (2017).
Marketing (13th ed.). New York, NY: McGraw Hill.
Meeting on importance of brand equity
Carlos Chance, the head of branding at Slate, Inc., soon hosts a
kick-off Zoom meeting asking for the case team’s insights into
the company’s logic on
brand equity.
Carlos noted that
"brand equity is basically the
added value that a brand gives to a product beyond
the functional benefits that it provides. Brand equity provides
competitive advantages; for example, Mercedes Benz
implies quality. A second advantage is that consumers are
willing to pay more for a product with a brand equity. Here,
brand equity is represented by the premium that a consumer is
willing to pay for a certain brand over another when both brands
provide similar functional benefits. Acura, Infinity, and Lexus
cars enjoy a price premium that arises from their brand equity”
(Kerin & Hartley, 2017).

4. Carlos also noted that
“Keller (1998) defined brand equity as the added value
of a brand that represents the part of a product created in
consumer minds as a result of previous investments in brand
marketing. In addition, Keller (1993) argued that brand equity is
assessed through a customer-based lens by examining how
consumers would react favorably to a brand versus a generic
version of the product.”
Carlos added that
“a company like P&G has 22 global brands bringing in
more than a billiondollars each in annual sales (Brownfield,
2020). P&G spends millions of dollars each year to defend its
brands; they are its most precious assets.”
Carlos said.
"I want you to research the role that brand equity
plays in our competitors’ branding strategies, and how we can
learn from them to enhance and defend our brand equity.”
Contribute your thoughts in the Slate, Inc.’s project team
discussion area, and discuss your ideas with your team
members.