Sunday, April 26, 2009

Brand Proliferation – a Predicament or an Elucidation

Branding has and always will be a tough job for any marketer that eventually personifies a product or a service into an image that is either likeable or otherwise depending on the kind of branding strategies that brand managers undertake. To introduce one new product and build a brand out of it is itself a very daunting task and to have a plethora of brands being introduced can surely suffocate the marketers. This concept of launching and managing a plethora of brands by one company is considered as Brand Proliferation.

Now, proliferation of brands is often spurred by the rise in line and brand extension, which eventually leads to the recognition of a brand name with a variety of products. For any marketer, it is essential to keep in mind that they should opt for brand extension strategies only when they have an existing core brand which serves as a good base which can withstand future proliferations. Though there are successful entities that have pulled off effective brand extension, there are few who would say that it is not a safe option to proliferate. Ask Miller, the American Beer manufacturer, how they failed and their answer would simply be - wrongly devised brand extension strategy. Their success in the sales of their best brand ‘High Life’ (that captured the women and the upper-class market segments), Miller’s thought it would be appropriate to launch another brand called ‘Miller Lite’ which again targeted women and occasionally drinking men. This resulted in cannibalization with Lite eating away Life’s sales. However, ask Virgin about their success, and their reply would be colloquial brand extension strategies. Their impeccable brand proliferation tactics venturing into every possible business division would only suggest that their core brand is strong.

Brand Proliferation can definitely be a challenge which could result in favourable results for many companies if and when they construct the extension plan with a strong core brand in place.

2 comments:

Nandita Bayan said...

well said Kailash because even i guess brand proliferation now a days hv become a daunting task for marketers in order to hv competitive advantages and egde over the competitors when consumers are flooded wid so many products/goods which are more or less of the same kind wid little fabricated or ornamented attributes modification.

According to me HUL, i guess is one of the best example of companies being successful in brand proliferation, offering a wide range of choice for customer in every segment.

Marketing Essence said...

I am one to back you on HUL and their succesful brand proliferation that has seldom led them into failure.

Rightly quoted Nandita.

Cheers