Branding Decision and its crucial Role in Marketing

A branding is which add a dimension that differentiates from a product to product. Managing brand is the major task in marketing. Once the product is established in a market over a period of time a company sells the Brand, not product or service.


The American  Marketing Association defined a “brand as a name, term, size, symbol or design or a combination of them intended to identify the goods or service of one seller to other & to differentiate them from those of competitors”.

Role Of Brands

1. The brand creates unique identification in the mind of the consumer for a specific product or service.

  1. A  brand allows understanding a particular manufacturer or distributor for a specific product.

3. Consumer learns regarding brand through the past experience. Brand develops certain perception, attitude regarding quality, quantity, taste, variety etc.

4 The brand also helps in organization inventory at a factory, site, distribution level & at the factory outlet.

5 Over a period of time brand create brand loyalty, among the customer.

  1. Brand are valuable intangible assets, legal property of a company. A brand can be sold can be bought from others.

Branding Decision

Branding is a critical decision. Due to huge competition companies are creating a brand for each product.

Following are various brand strategies generally used by the firm.

1.Individual brand name

This policy is followed by many companies. Here each product of the company is given an independent brand name

For E.g, Hindustan Unilever  has established the brand for  each product like in bathing soap line offer  Lux, Dove, pears others in hair care, baby product

Individual brand name


  1. The major advantage of an individual name is that the company cant buy its reputation in a single product.
  2. If one product does not hamper others.

2 Umbrella/  Blanket Family brand

In this type of branding name of the company is used in a diverse product category.

For e.g Tata has followed umbrella branding for diversified product ranging from Tea, Coffee, Automobiles,  Steel etc.

Umbrella/  Blanket Family brand


  1. Development cost for the new product is less to create brand recognition.
  2. If the manufacturer brand is already established it is easy to sell the new product.

3. Separate family names for all products

When companies produce the diversified product they may go for a separate family name.

For eg Aditya Birla group followed this strategy they are as

Separate family names for all products

  1. Hindalco for an aluminum product.
  2. Ultratech for cement.
  3. Grasim for suiting.
  4. The idea for cellular service.
  5. Birla for educational institutes.


  1. Because of separate family names, unique brands are named for the specific products
  2. Failure of one brand may not harm others.

4. Company name combined with an individual product name

This is a sub-branding strategy where parent brand is used & to this product names are added.

For eg- SONY TV, SONY Camera, SONY mobiles, SONY DVD.


  •  A brand advantage is used for the next new product as already parent brand has introduced
  • Less expenditure to create a brand.




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