Question

Family branding uses the same name to cover a group of products or product lines (for example, Nivea uses family branding).

Individual branding requires the company to provide each product or product line with a distinctive name (for example Procter and Gamble tends to do mostly Individual branding).

How should a company decide whether Individual or Family branding is best for a given product? What are some advantages/disadvantages of each type of branding strategy?

Answer 1

Answer

* How should a company decide whether Individual or Family branding is best for a given product?

✓ a company can decide to use family Branding, if the brand name is highly recognised and people trust it to a great extent. Having quality products in the line, with a guaranteed results, can help the firm use the same brand name, with lesser risk or negative impacts on other products.

When a firm offers variety of Products, and each product is unique, highly segmented, and people tend to chose as per their tastes or preferences, it is important to go for individual branding. As every product is unique, have different revenue generating ability and is judged by the customers based on its results, content packaging and its name, Instead of brand name.

* What are some advantages/disadvantages of each type of branding strategy?

✓ family Branding: firms can launch/introduce new products under the same brand name and can franchise it to grow the business with greater amount of profitability and success. People tend to stay loyal to the brand and purchase the products, without thinking of other brands, if those products are offering value and meeting it's purpose, it will retain the loyalty of the customers. But, if one product is found to be of low quality, and led to the dissatisfaction of customers, whole line will be effected by it, that may results into switching of customers to other brands and distrust.

✓ Individual branding: firms can use individual branding if they have wide range of product offerings, that are unique, and are recognised as individual products, that won't impact other items in the range. Every new offering has its own name, and offers value with a targeted purpose to satisfy the customers. But, this strategy becomes challenging, when the firm decides to introduce new offerings, as the name will be different, and customers won't easily trust new products.