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Key Points A second brand strategy is where a company with an existing brand (or brands) finds another segment of the market to address with a different brand proposition. At least, this should be what happens. In practice, it is often when an existing premium brand owner decides to discount its values into a second brand in order to penetrate a larger share of the market. However, the second brand need not be a discounted brand. Nestle launched its Gold Blend ? brand at a premium to its Nescafe ?brand. Johnny Walker Black Label is at a premium to Red Label. Concorde was at a premium to British Airways. Given that brand marketing companies tend to own many brands in the same sector, there is often a carefully segmented hierarchy of brands, from Ford Premier Brand Group (Jaguar, Aston Martin, Volvo etc.) to Ford Mondeo; from Six Continents?Garden Court to the Holiday Inn Express. Key dos : 1. Have a differentiated compelling brand proposition that you can uniquely deliver Address a market segment that is profitable 2. Use a different sales and marketing team as a guardian for the different brand proposition 3. If you are undercutting your existing premium brand(s), find the magic operational formula that will deliver the brand proposition more cheaply Key donts: 1. Simply discount your existing premium brand, as remium brand, but cheaper?/li> 2. Use the same sales and marketing team 3. Apply your exiting overhead costs to the new brand
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Multi-brand strategies
Many, if not most, brand owners run several brands in tandem. These can be: Different brands into different product categories ?e.g. chocolate bars and tooth paste A carefully defined hierarchy of brands ?see, for instance the hotel chains Six Continents and Accor. Car companies work the same way ?BMW 3 vs. 5 vs. 7 series; Ford Premier Brands Group vs. the main Ford brand; VW vs. Skoda A move upmarket ?Gold Blend vs. Nescafe; Johnny Walker Black Label vs. Red Label A move towards the mass market ?Hilton International vs. Hilton National; Sony vs. Aiwa; BA vs. Go and KLM vs. Buzz (before they were both sold); Mercedes E vs. A class A proliferation of brands ?each time you develop a new product technology, you create a new brand name. This is less a brand strategy than a brand pile-up