User:Idealajay

 Dual Branding  

Introduction

It is the combination of two different brands by the same firm with each contributing its own specific meaning to the brand architecture. It is an approach to expand the market share where one of the brands is well-known by the people.

ADVANTAGES:

1.It helps to increase the market share as well as profit because one of the brands already has the grip into the market and another trying to  capture the new segment.

2.Saturating the market by filling the price and quality gaps.

3.It helps to catering to brand switchers users who like to experiment with different brands because of the availability of the different price range with different quality of products.

4.Keeping the firm's managers on their toes by generating internal competition among them because here the competition is with your own brands.

DISADVANTAGES:

1.Brand Cannibalization is one of the most disadvantages of dual branding. There is a chance that a company introduces a brand that steals customers away from one of their other brands.

2.It’s very difficult to manage two different brands because you have to maintain the both brands and the Ad-spend are splitting due to that.

3.Possibility of blurring brand identity in the eyes of the consumer.

 Strategy for Dual Branding 

1.Brand Positioning: A Product Brand must be positioned so that the Differentiation is meaningful in the eyes of the Consumer. It can be done through the Price range, features, performance and quality etc.

2.Differentiate the services offered by the existing brand through the physical ambience, services staffs, mode of purchasing etc.

3.The target segment should be the different for both of brands otherwise the chance of the brand cannibalization will be higher.

4.Appeal to the buying motives should be different for each brands.

Examples:

Best Buy Inc. is the largest retailer of electronics goods in US. In Dec 2000, it decided to go beyond the Domestic market, the Company had found neighboring Canada to be a logical first step. The Canadian CE market was fragmented, with only one dominant player, Future Shop. In January 2002, Best Buy had acquired the Future Shop. When the time came to final integration, the management of Best Buy took a surprise decision; to retain the Future Shop brand and let it compete with Best Buy as an independent brand.

The dual-branding strategy worked in Canada and there was no evidence of Brand cannibalization. The strategy behind success was their Brand Positioning & different target segment. The table below shows the Brand Positioning of both brand and their operational strategy.