Brand Name

Brand Name
- MS. CURIOSO
Learning Competency/Objective:
Design/develop a brand name that will fully

develop into a desirable product.
What is brand name?
 Brand names play a significant role in the positioning of the product.

 Brand refers to the name, design, color, symbol, quality, features, or a
combination of these elements that make the product separate and distinct
from similar products of the competitors.
 Branding is very critical in the promotion of a product among consumers. In
most instances, they associate the features, attributes, benefits, or value
of the product with the brand. Consumers sometimes become more familiar
with the brand name than with minds, product itself. They position the
brand and not the product, at the back of their minds. The tendency is that
consumers directly equate the product with the brand. The entrepreneur
must exercise extra care about this behavior of the consumers.
 Brand names influences the buying decision of the consumers. That is why
the entrepreneur must define a clear and effective branding strategy, so
that the product remains competitive in the market. The basic concept in
effective and competitive branding strategy is to “Build a strong brand.”
Branding Strategy
 Branding strategy starts with the formulation of a
brand name for the first single product that the
business intends to make. The situation becomes
more complicated when the business starts to offer
an additional product. Though most entrepreneurial
endeavors engaged in manufacturing start with a
single product, they eventually add a new product
line in response to new entrepreneurial opportunities.
When this happens, will all the products carry one
brand name or will each product carry a distinct and
separate brand name?
 Business existing in situations like this adopt two
Umbrella Brand Approach
 In the umbrella brand approach of branding names, all
products of the business carry the same brand name.
The various product lines are not differentiated from
each other from the perspective of the brand name.
 For example: Honda Motors produces motorcycles, cars,
agricultural machines, grass cutters, and lawn mowers.
Each product line has different types and models, For
motorcycles, there are the Honda TMX series, Honda
Wave series, Honda XR series and Honda Scooter. For
the cars, there are Honda Odyssey, Honda Accord,
Honda Civic, Honda CR-V, and Honda VTEC. All the
products are marked Honda Motors, the umbrella brand.
Umbrella Brand Approach
 The umbrella brand strategy helps the business
introduce new product lines more easily and receive a
similar favorable response from the consumers who
appreciated the company’s other products. However, in
case one of the products is rated poorly by the
consumers for any reason, the other products with the
same brand will likewise be affected. It may be difficult
to introduce a new product once the brand name has
been damaged already.
House Brand Approach
 In the house brand approach, every product of the
same business has a separate brand name that
distinguishes it from the rest of the company’s
products. For example, Procter & Gamble Philippines,
Inc. has applied the house brand approach in
providing brand names to its various product lines
such as Joy, Tide, Downy, Pampers, Pantene, Head
and Shoulders, Rejoice, Vicks, Max Factor, Safeguard,
Ariel, Whisper, and Oral B, among others.
House Brand Approach
 In the house brand approach, the problems and negative
perception about one product will not affect the other
products. The consumers may not even be aware that
the different products are produced by the same
business. Nevertheless, introducing each product to the
target consumers becomes more costly on the part of
the business. Imagine the cost involved in advertising
each product in various media with national coverage.
Branding Extension Strategy
 The level or degree of the consumers’ perceptions or reactions to
a brand is technically known as brand equity. When the level is
high or when the perception of the consumers is favorable to the
brand, the brand equity is considered positive. This indicates that
the product has a strong brand name in the market. The reverse
scenario happens when the brand equity is considered negative.
Entrepreneurial ventures with high positive brand equity are
capitalizing or leveraging on such concept. This branding strategy
is usually called branding extension strategy.
 Generally there are two approaches in branding extension
strategies, namely: line extension approach and product extension
approach.
Line Extension Approach
 In the line extension approach, the existing product has been
modified or altered resulting in a new product or more products
without eliminating the original product. The new additional
product must be within the same category.
 The change or modification may be in the front of flavor,
ingredients, mechanical parts, sweetened condensed filled milk,
sterilized milk, powdered milk, full cream evaporated milk,
pasteurized milk, and low-fat milk.
 The carbonated and noncarbonated drinks of Pepsi Cola include
the following brand names: Pepsi, Mirinda, 7 Up, Mountain Dew,
Mug Root Beer, Tropicana, Lipton, and Gatorade, among others.
 Since the different varieties of the product line are definitely
competing against each other in the market, the entrepreneur
must make sure that each product offers considerable benefits to
the target consumers.
Product Extension Approach
 In the product extension approach, a new product
carries the brand name in a new category. The new
or added product appears to be totally different
from the old and existing product line.
 For example: General Electric Company, popularly
known as GE, provides one brand name to all of its
products under the different categories, such as
refrigerators, freezers, ranges, ovens, dishwashers,
air conditioners, washers and dryers, housewares,
industrial products, and light power products. Each
category offers various models of the products.

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Brand Name

Design/develop a brand name that will fully

 Brand names play a significant role in the positioning of the product.

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