What Are the Pros and Cons of the Sub-Brand Strategy?

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What Are the Pros and Cons of the Sub-Brand Strategy?

By | October 2010
Page 1 of 3
1.What are the pros and cons of the sub-brand strategy?
Pros
1. Sub brand can help to advertise mother brand
2. Help to establish brand loyalty
3. Monopolize the market
4. Contained a common ‘Nivea’ message of quality and care 5. Each sub-brand promoted specific product attributes and benefits that best satisfied the needs of its target market

Cons
1. Hard to administer all of the products
2. Cannot compete to the professional companies
3. Many products cannot make lot money for company, but company should pay lot money in the innovation 2. Should Nivea run a corporate brand or umbrella ad for all of their product? Definition of corporate branding

Corporate branding refers to a company applying its name to a product. The product and the company name become the brand name. The company can advertise several of its products under a single brand name in a practice referred to as family branding or umbrella branding. Explanation of umbrella advertising

The advertising of an organization or an association of companies rather than a single product When to use umbrella advertising
Umbrella brand is used when
-- Company level associations are less prominent-weak corp. brands -- Dissimilar products- harder for the corp. brand to retain any product meaning •The history of Nivea advertising
NIVEA advertising - Over 60 years
-Promoted the basic themes of skin care and protection
-Nivea Ads are always simple, plain and informative
-Early advertisements - image of the NIVEA women as clean, fresh and natural. -In Mid-1920’s - introduced the ‘bright and shining’ boys - three happy, healthy lads whose loveable looks captured the hearts of mothers -Extended the freshness and natural image to the entire family. •Nivea’s presence

-- 14 product categories and over 300 products
-Available in more than 150 countries
-Market leader in skin creams and lotions in 28 countries
-In facial cleansing-23 countries
-In facial skin care-18...

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