Individual branding

Individual branding, also called individual product branding, flanker brands or multibranding, is "a branding strategy in which products are given brand names that are newly created and generally not connected to names of existing brands offered by the company." Each brand, even within a same company, has a unique name, identity and image, allowing the company to target different market segments, tailor pricing and marketing strategies, and separate the image and reputation of different products. Individual branding contrasts with umbrella branding and corporate branding, in which the firm markets all of its product together, using the same brand name and identity. Individual branding is the most effective when a company offers numerous unconnected commodities, which vary in quality and price and target different market segments. It is also useful when introducing a new, high-risk product to the market, in order to manage risks to existing brands if the new product should fail. However, the expected revenue from a new brand must justify the higher costs of marketing and advertising. Reduced corporate identity attached to a product allows brands to be positioned differently, so that product brand isn't connected with the company brand; Each brand can use different marketing strategies; Brand separation allows a wider variety of products of different quality to be offered: lower-quality products under their own brand will not weaken the image of higher-quality products; Each brand can serve consumers in a different way, i.e. brands can work on different markets or appeal to different consumers aims, wishes and so-called 'pains'; The company's global reputation is not tied to products: the failure of one product will not affect the company's global reputation. Instability within a company can occur because of competition between its brands; Multiple brands may divide the market and split efforts within one company; Risk of undesired market cannibalism; Brand creation incurs a high cost in marketing, advertising and sales promotion; Launching new products as their own brand is higher risk: new brands lack acknowledgement and customer loyalty and need to find recognition.