The marketing investment and
personal resources focused on building a single brand.
It enables scale investment and child resource allocation.
The fact that one brand provided Exoft solution in this field built credibility,
and thus equity into one master brand.
Lastly, Dell was able to leverage the strength of the Dell original offering,
building customized PCs, into their service businesses.
On the disadvantages front, for Dell, there could had been negative synergies.
Like bad experiences with one business or offering could negatively affect
customer's perception of other business under the same master brand.
Also, something which doesn't apply to all brands, but targeting unique
customer segments can be challenging if a brand's extendibility is limited.
So how do you decide where to use a Branded House Model
when growing your offering?
You should at least think of the following.
Are the target customers of your product the same, or
similar enough, that you can target them with one encompassing brand?
For example, from a pricing perspective, are some of them cost oriented and
others willing to pay for a premium?
If this is the case, you might want to use a different brand architecture model.
Remember, in a Branded House, you should maintain a consistent brand meaning and
messaging across your categories.
Because at the end, all your brand-building efforts,
your focus on growing enhances the strength of that one master brand.
In our next lecture, we will discuss more in detail the House of Brands Model, and
when to use it.
See you there.
[MUSIC]
Luis Rodriguez BaptistaProfessor
