Page 66 - PRODUCT

6.2 BRAND NAME DECISION
6.2 BRAND NAME DECISION

1. Individual Brand Names:

An individual brand name does not identify a brand with a particular

company.

A major advantage- company does not tie its reputation to the
product.

If the product fails or appears to have low quality, the company’s
name or image is not hurt.

Companies often use different brand names for different quality
lines within the same product class.

Example: Nestle set a brand name of MILO for their chocolate drink
product

2. BLANKET FAMILY NAMES

A family brand name is used for all products. By building customer

trust and loyalty to the family brand name, all products that use the
brand can benefit.

Advantage- development cost is less because there is no need for
“name” research or heavy advertising expenditure to create brand-

name recognition.
Sales of the new product are likely to be strong if the manufacturer’s

name is good.
Damage the reputation of a whole range of brands if one product fail

in the market
Example: Panasonic use the same brand name for all their items.