Mixed branding is a strategic brand management approach that involves using multiple brands to reach different segments of the market. This can be done by creating different sub-brands, or by using different brands for different products in the same product line.
Mixed branding can be an effective way to reach a wider range of consumers, as it allows businesses to target specific groups with tailored messages. It can also create a more robust and differentiated product portfolio, which can give businesses a competitive edge.
There are some risks associated with mixed branding, however, such as confusion among consumers and dilution of the overall brand equity. Therefore, it is important for businesses to carefully consider whether mixed branding is right for them before implementing this strategy.
Coca-Cola, Apple, and Intel have all embraced a multiproduct branding strategy similar to that of carmakers Ford and Toyota. A company’s name is an umbrella brand for all of its goods in this case. Coca-Cola, Apple, and Intel have concentrated on brand development rather than individual products. To attract value-conscious consumers, grocery chains and big-box stores use private-label branding.
Brand names are often used to create associations in the target market’s mind between the company, its products and services, and certain desirable qualities or benefits. Branding may also refer to the process of creating such associations. Brand management is the application of marketing techniques to a specific product, product line, or brand. It seeks to increase the product’s perceived value to the customer and thereby increase brand equity. Brand management is a function of marketing that uses special techniques in order to increase the perceived value of a brand.
When it comes to mixed branding, companies have several different strategies they can follow. Some common examples include co-branding, endorsement branding, and private-label branding.
Co-branding is when two or more brands are used together to create a new product or service. This can be done in a number of ways, such as using one brand to produce a new product with another brand, using two brands to produce a new product together, or simply using two brands to endorse each other.
Endorsement branding is when a celebrity or other well-known individual endorses a product or service. This can be done through social media, traditional media, or even personal appearances.
Private-label branding is when a company produces products or services under its own brand name rather than under the brand name of another company. This can be done for a variety of reasons, such as to create more brand awareness or to offer products at a lower price.
Mixed branding can be a successful way to promote a brand. By using multiple strategies, companies can reach a wider audience and create more brand awareness. When done correctly, mixed branding can help to increase sales and profits.
Brands are used to distinguish one’s products on the basis of value, quality, and other characteristics. A good brand image has a halo effect that influences past goods and makes it simpler to market new ones. The “Intel Inside” campaign, for example, was created with the goal of branding all Intel microprocessors as high-performance and high-quality items. Because Apple relies on its corporate name and distinct product brands alone, it has taken a different approach.
Its mixed branding strategy is evident in its iPod and iPad product lines.
The mixed branding strategy has some advantages and disadvantages that companies should consider before using this approach.
Mixed Branding Defined
Mixed branding, also called co-branding or alliance branding, is a marketing strategy that involves partnering with another company to create a new brand name. The new brand name is a combination of the two company names. For example, Kia Motors and Hyundai Motor Company partnered to create the Hyundai Kia Automotive Group.
The motive behind mixed branding is to combine the strengths of both brands to create a new, stronger brand. The newly created brand can then be leveraged by both companies to enter new markets or reach new customer segments.
Mixed Branding Advantages
1. Increased Market Coverage:
Mixed branding can help companies increase their market coverage. For example, Kia and Hyundai were able to use the Hyundai Kia Automotive Group brand to enter the European market. The new brand helped the companies compete against established European brands such as Volkswagen and BMW.
2. Improved Brand Image:
Mixed branding can also help improve a company’s brand image. For example, Kia partnered with luxury automaker Bentley to create a limited-edition Kia sedan. The move helped Kia shed its budget image and appeal to wealthy customers.
3. Greater Brand Recognition:
Another advantage of mixed branding is that it can help increase brand recognition. For example, Kia’s partnership with Bentley helped the company become better known in international markets.
4. Increased Sales:
Mixed branding can also lead to increased sales. For example, Kia’s partnership with Bentley helped the company sell more vehicles in Europe.
5. Improved Brand Equity:
Mixed branding can also help improve a company’s brand equity. Brand equity is the portion of a company’s market value that is attributable to its brand name. For example, Kia’s partnership with Bentley helped the company improve its brand equity by making it associated with luxury and quality.
Mixed Branding Disadvantages
1. Reduced Brand Loyalty:
One of the disadvantages of mixed branding is that it can reduce brand loyalty. Brand loyalty is the tendency of customers to continue using a particular brand. For example, Kia’s partnership with Bentley may have reduced its brand loyalty among budget-conscious customers.
Another disadvantage of mixed branding is that it can create confusion among customers. For example, Kia’s partnership with Bentley may have caused some customers to believe that Kia is a luxury brand.
3. Brand dilution:
Mixed branding can also lead to brand dilution. Brand dilution occurs when a company’s brand name is associated with too many different products. For example, Kia’s partnership with Bentley may have diluted its brand by making it associated with both budget and luxury products.
4. Dependence on partner:
Mixed branding can also create dependence on a partner. For example, Kia may have become too reliant on Bentley to improve its brand image.
5. Loss of control:
Another disadvantage of mixed branding is that it can lead to a loss of control. A company that engages in mixed branding cedes some control over its brand to its partner. For example, Kia may have lost some control over its brand when it partnered with Bentley.
When to Use Mixed Branding
Mixed branding can be a effective marketing strategy but it is not without risks. Companies should carefully consider the advantages and disadvantages of mixed branding before using this approach.