A BRANDED
HOUSE OR A HOUSE OF BRANDS…THAT IS THE QUESTION
Many CEOs and marketing managers struggle with the problem of whether to
apply a strategy based on a Branded House or a strategy based on a House of
Brands?
But is this question well addressed at all?
The most important issue here is not whether to apply
one strategy or the other, because both brand strategies could work very well
under the right circumstances, depending on your organization´s ability to cope
with the different possibilities/problems that are associated with the two
brand strategies.
In my opinion the decision to choose the one strategy
or the other should be based on core conditions within your business. The most
important conditions/metrics that you need to analyze are:
Which
one of the two strategies is best suited for the type of products/servicesthat
you market?
Which
one of the two strategies will make it possible for you to gain market share?
Which
one of the two strategies will generate most profits?
Which
one of the two strategies will be accepted most by your customers?
Which
one of the two strategies is best handled by your organization?
It is not easy to answer these questions, but possible and worth the efforts. Once you have done that, then there will be no doubt wich one of the two strategies that is best suited for your company.
