With the passage of time, successful companies grow and the number of products handled by most companies also grows. These companies face the question as to what kind of branding relationships these products will have. The branding strategies that companies adopt reflect this relationship. There is no best branding strategy and the choice is not easy. Different companies adopt different strategies, and since there is no best strategy for all types of products, a company may adopt different branding strategies across its product mix.
Companies differ in their approaches to branding. A casual look at Western World and Eastern World shows that companies of the Western World generally adopt product branding strategies (one product one brand or many products many brands). At the top of this approach are three giant and familiar companies, P&G, HLL, and Xerox. Eastern companies, such as those from South Korea and Japan adopt a mega branding approach. The company tagline covers all products “Chips to Ships.” Examples are Hyundai, Samsung, LG, Hitachi, Mitsubishi, Toyota, etc. These two general approaches reflect customer or market-oriented logic, or cost-oriented logic.
Companies enlarge their product mix by either stretching existing product lines or adding new product lines, or both. In these situations they either use existing brand names or use new brand names, or some combination of company name and product brand name. The six branding strategies discussed here can be termed as generic branding strategies, each having its own set of pros and cons.