1. What are the conceptual underpinnings of a dual-brand strategy? A dual brand strategy is the association of two or more already well recognized trademarks in a synergistic retail setting designed to benefit each, is one of the fastest growing areas in franchising. Numerous systems are learning that they’re significantly more effective in presenting their products and services to the public when they do so in association with another brand. A company may use dual branding when they want to increase the market share, saturating the market by filling all price and quality gaps and catering to brand switchers users who like to experiment with different brands, a dual brand strategy also may be applied when two companies want to differentiate products or services from the existing ones, and when both of them want to create a different target segment for each brand. This strategy helps to create superior strategic positioning, increase revenues and reduce costs because shared costs can result in improved levels of return on investment, also in most of the cases dual branding enhanced recognition and reduced confusion of the costumers, and create opportunities to reach additional distribution points without the investment involved in independent operations, generating improved per unit volume. 2. What did Best Buy learn from its experience with dual-brand strategy in Canada?
The anti-global respond towards Best Buy by the Canadians, was one of the challenges Best Buy faced. Thanks that Future Shop, the biggest consumer electronics retailer in Canada, had been the destination for the Canadians for years, also attaching them emotionally and even with patriotic loyalty towards the brand. After operations started and Best Buy was at full speed, they realized that the Canadians were global agnostic consumers judging both Future Shop and Best Buy with the same criteria. Best Buy also...
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