Individual branding

Individual branding is the most effective when a company offers numerous unconnected commodities, which vary in quality and price and target different market segments. It is also useful when introducing a new, high-risk product to the market, in order to manage risks to existing brands if the new product should fail.[3] However, the expected revenue from a new brand must justify the higher costs of marketing and advertising.

• Reduced corporate identity attached to a product allows brands to be positioned differently, so that product brand isn't connected with the company brand;
• Each brand can use different marketing strategies;
• Brand separation allows a wider variety of products of different quality to be offered: lower-quality products under their own brand will not weaken the image of higher-quality products;
• Each brand can serve consumers in a different way, i.e. brands can work on different markets or appeal to different consumers aims, wishes and so-called 'pains';[4]
• The company's global reputation is not tied to products: the failure of one product will not affect the company's global reputation.[5]

• Instability within a company can occur because of competition between its brands;
• Multiple brands may divide the market and split efforts within one company;[6]
• Risk of undesired market cannibalism;
• Brand creation incurs a high cost in marketing, advertising and sales promotion;[7]
• Launching new products as their own brand is higher risk: new brands lack acknowledgement and customer loyalty and need to find recognition.[8]

• Branding strategies
  • Corporate branding
  • Umbrella brand
• Brand architecture
• Brand management
• Marketing