Question

Topic: Branding

Brand Extension/dilution

Posted by Anonymous on 250 Points
I am looking for any research/data/articles demonstrating the reasons and need to offer multiple brands across multiple price points. (such as Intel Celeron vs. Intel Pentium). I hope to demonstrate to a channel partner the need to delineate a value brand from a premium brand.
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RESPONSES

  • Posted by Blaine Wilkerson on Accepted
    Like Jim addressed, it is very important to create this new branding scenario in a very delicate manner in order to maintain brand equity across the board.

    It is important to point out the differences between the 2 lines so as to create a perception of "different", not "cheap".

    You give a great example in your question: Pentium vs. Celeron. Most consumers don't know the difference, they don't know Intel makes both, and they don't really care. Only the computer savvy know the difference. I am running on a Celeron processor, I know the difference, and I still don't care. Of course I am merely one out of millions, but I hope you get my point.

    Embedded products make it even more "wishy-washy" as to who is going to notice. Is this component a major selling factor? Or is it a system component like a transformer?

    Going back to Jim's comments about value, it can backfire if heavily publicized. You don't see Intel blasting ads about the difference between Pentium and Celeron. Same goes for tobacco companies, food processors, FMCGs, etc with name brand vs. generics.

    Make sure the "value" line is well described to the end users. There is no reason why you cannot create a positive branding for the "value" line by utilizing and focusing on the positive attributes.

    I hope this helps! Good Luck!

    Here are some helpful links:

    www.brandchannel.com

    https://searchengineformarketers.com

    https://search.atomz.com/search/?sp-q=multiple+brands+&sp-a=sp1002af2d&sp-p...

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