A type of branding strategy under the range brand strategy where the company, through a single brand name, offers a range of products with a similar value proposition.They help in increasing the market share by attracting customers seeking variety, who, otherwise, would have preferred another brand and in achieving economies of scale in advertising, sales and distribution.
Ex: For range brand strategy->Pulsar and Discover bikes of Bajaj Auto
A low-end entry level brand is one seeks to expand the customer franchise by offering a product for the first-time users at a lower cost.
Ex: Platina, CD Dawn and CD Deluxe bikes of Hero MotoCorp are targeted to attract the entry-level, lower income group.
The other types of brands in the range brand strategy are-
Flankers- To combat the brands of the competitors to help the flagship brands retain their desired positioning
Ex: Hero Passion/Glamour/Achiever to maintain the flagship brands Hunk/Karizma/Splendour
Cash Cows- Mature brands which give significant profits by their existing brand equity, with less marketing effort.
Ex: Bajaj Pulsar DTSi and Avenger
High-end prestige- Complement the brand portfolio by establishing credibility and value
Ex: Hero Kawasaki Ninja
This article has been researched & authored by the Business Concepts Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.
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