Individual sub-brands can be targeted at different niches

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sumaiyakhatun26
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Joined: Sun Dec 22, 2024 8:29 am

Individual sub-brands can be targeted at different niches

Post by sumaiyakhatun26 »

This approach focuses on sub-brands operating as separate entities under the voice of the parent company. The brand house often acts as a holding company for the various portfolio brands, each with its own management autonomy. This strategy, due to its legal complexity, requires significant costs.

Advantages:

Niche targeting. or new categories, providing greater flexibility in laos rcs data market positioning.
Diversification of opportunities. This provides better diversification for business and investment as each brand can operate independently.
Merger and acquisition opportunities. A company can easily acquire new brands, sell existing ones, or merge with other companies, which opens up wide strategic opportunities.
Disadvantages:

High creation costs. Creating new sub-brands is an expensive process, as it requires separate legal, creative, and marketing costs for each one.
Time to invest in awareness. Developing awareness for new brands takes time and significant investment.
Yum! Brands, Inc. is an example of a House of Brands, operating its own sub-brands such as KFC, Pizza Hut, and Taco Bell. Another example is Unilever, which owns several brands in different niches such as Dove, Ben & Jerry's, and Lipton.
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