27 March 2014
This is of the type one-brand one product. In terms of customer perception and information processing, the most effective way to designate a product is to give it an exclusive name, which would not be available to any other product. In the product branding strategy the brand is promoted exclusively so that it acquires its own identity and image. This way the brand is able to acquire a distinct position in the customer’s mind. The thrust is on making the brand acquire its ‘own’ set of associations and stand on its own. Product branding allows a brand achieve exclusivity and differentiation. It does not share other products and does not take on company associations. The company’s name takes a backseat and the product does not get benefits from the company name. The greatest advantage in this case is that a brand can be targeted accurately to a distinct target market or customers because its positioning can be precise unambiguous. Customers connect easily with product brands since what the brand represents tends to be clear.
P&G have been follower of the product branding strategy. P& G’ s into baby care, beauty care, feminine care, health care, fabric care, home care, food and beverages, etc. P&G has been an ardent follower of the product brand strategy. Its brands are stand alone; people don’t even know that they all share a common root in P&G. the company does not share a common identity. So the customers do not exclaim: Oh! How can a company like P&G makes Pringle Potato Chips, it is a detergent company. Thus, a company following product branding is better positioned to venture into unrelated areas of activity without being a subject of market scrutiny.
Another advantage is that with an identifiable brand uniquely positioned and directed at a segment, the firm is able to cover an entire market spectrum by making multiple brand entries.
The drawbacks of product brands are essentially cost based. Creating individual brand is costly exercise. Only the firms which have deep pockets and long staying power can adopt this strategy.