Group branding is another marketing concept whereby an organization aims at marketing several products or services or sub-brands under a single brand name or motif. This strategy is useful because it gives the specific goods the advantage of being affiliated with the parent brand in the Outreach process while advertising the specific product. It is especially valuable in industries where customer loyalty is critical because it consolidates marketing communication and increases brand image value. Group branding is discussed in this article as a concept, its importance, its approaches, problems, and real-life instances.
Group branding is the process of placing multiple products or services in one brand image. This approach creates a synchronized image that is easily identifiable with the average consumer and one that makes it easier for the consumer to make his/her decision. By linking the offerings to its parent brands, different forms of products can help organizations leverage established brand name recognition and advocacy to gain consumer trust.
To successfully implement a group branding strategy, companies should consider several key approaches:
Brand positioning is a critical part of group branding, and the type of structure that is created must be decisive. Business organizations should specify how the sub-brand is linked to the master brand and other sub-brands so that its organizational structure which is a kind of hierarchy makes total sense to the consumers.
Hence, all the members of the group need to have a common brand image. Organizations should maintain logos, colors, typeface, and design characteristics that unify the brand whilst making subcategories distinguishable from one another.
The communication that is done across the products and services should be consistent with that of the parent brand’s values and mission statement. Its sustainability assists in consolidating the major brand image and at the same time enables consumers to make proper appreciation of the value added by each item.
According to the present knowledge, it could be stated that cross-promotion techniques may benefit both the parent brand and any sub-brands. The advertisement strategies to be adopted by companies should relate a current product with another to influence the consumer to try out more products or services.
The interactivity of consumers is equally compulsory to understand and map in the case of group branding. Businesses should go out of their way to communicate and interact with their followers on social networks, during corporate events, and launch various customer satisfaction or feedback programs.
Evaluating the performance of the parent brand and the sub-brand constantly is very important to see where you are lacking. Key performance indicators for companies include customer satisfaction, brand recognition, and sales which can be used to make future decisions.
While group branding offers numerous advantages, it also presents challenges:
Several companies have successfully implemented group branding strategies:
P&G has long been famous for its diversified product range of gens’ everyday necessities, such as Tide, Gillette, Pampers, and Crest. Yet, all of them stay distinct, still having an opportunity to draw upon the consolidated image of P&G as a manufacturer of reliable goods.
Like P&G, it owns an array of sub-brands in the food and personal care and household products division and is as socially responsible as Ben & Jerry’s which is 100% associated with Unilever, yet it is a separate brand.
Nestlé offers many popular products within the food and drinks category, ranging from Nescafé and KitKat to Purina and all of them enjoy the advantage of a large company’s reputation on the market, as well as meet different customers’ needs in given categories.
Coca-Cola uses group branding very well by extending different kinds of beverage products under one brand name namely Coca-Cola Classic, Diet Coke, Sprite, etc. but the image everything focuses on the signifier of refreshment and fun.
Group branding can therefore be said to be a great strategy for any company that aims at establishing a consolidated image in a respective product or service market while at the same time trying to create awareness of its brands in the market amongst the consumer. By forming a coherent brand hierarchy, using similar communication languages, promoting similar corporate values, and implementing successful cross-promotion techniques, organizations can enhance brand-related affiliations with customers as well as improve performance in their diverse brands.