Product Branding: The Complete Guide (with Examples)

When you’re starting your entrepreneurial journey, it can be quite confusing to decide which branding strategy to utilize for your products or services. One of the most common and widely recognized strategies is product branding. So, what exactly is product branding?

A product branding strategy is a branding strategy that a company would use to brand an individual product or individual products with their own unique branding, brand strategy, promise, and positioning in the market. Each new product that the company produces would therefore become a separate brand.

Now let’s take a deep dive into what product branding is, the advantages, disadvantages, and cover some examples in detail. Ready? Let’s go.

What is a Product Branding Strategy?

Before we get into product branding, feel free to check out our post on the different types of brand strategies where we cover the basics of product branding, line branding, range branding, umbrella branding, and endorsed branding. Now let’s get back to product branding.

A product branding strategy is a branding strategy that a company would use to brand an individual product or individual products with their own unique branding, brand strategy, promise, and positioning in the market. Each new product that the company produces would therefore become a separate brand.

Product branding focuses on creating a unique identity for each product that stands out in the market. This involves developing a distinct name, logo, design, and overall image that differentiates the product from others. The goal is to establish a strong brand presence that resonates with the target audience, builds brand recognition, and fosters customer loyalty.

In a product branding strategy, the emphasis is on the specific benefits and attributes of the product rather than the overall corporate brand. This approach allows companies to tailor their marketing efforts to the unique selling points of each product, making it easier to address the needs and preferences of different market segments. For instance, a company might use different branding for its luxury line of products compared to its budget-friendly options, ensuring that each product appeals to its intended audience.

One of the key aspects of product branding is the creation of a brand promise that aligns with the product’s value proposition. This brand promise communicates what customers can expect from the product, whether it’s superior quality, innovative features, or exceptional customer service. By consistently delivering on this promise, companies can build trust and credibility with their customers, ultimately driving sales and market success.

Examples of a Product Branding Strategy

Here are a few examples of companies that utilize a product branding strategy successfully.

Procter & Gamble

Procter & Gamble is a parent company that uses product branding strategies for many of its brands. Here are a few highlights on how they use this strategy very effectively to market their brands:

Zest, Ariel & Tide

The brands stand alone with their own distinctive brand strategy, promise, and positioning in the market, completely divorced from the Procter & Gamble master brand.

Pantene, Herbal Essence, and Head & Shoulders

All of these shampoo brands fall under the Procter & Gamble master brand, but each with its own unique branding, brand strategy, promise, and positioning.

Nestle

Nestle also uses product branding strategies for its diverse range of products. Examples include KitKat, Nescafé, and Maggi, each with their distinct identity and market positioning, independent of the Nestle master brand.

Unilever

Unilever is another company that successfully employs product branding strategies for many of its products:

Dove, Axe & Lipton

These brands are marketed with their own unique identities and market positioning.

Advantages of a Product Branding Strategy

Let’s look at some of the advantages of a product branding strategy.

Separate From Master Brand

Completely divorced from the master brand, product brands have total freedom in their positioning and marketing. This means each product can create a distinct identity and market itself based on its unique value proposition without being tied to the parent company’s overall image.

For example, a luxury product can develop an exclusive, high-end image even if the parent company also offers budget-friendly options. This separation can help avoid brand dilution and ensure that the product can build its own loyal customer base without confusion.

Singular Focus

Usually, a single core element that can be focused on to target a very specific segment of the market. By concentrating all marketing efforts on one product, companies can tailor their branding and messaging to resonate deeply with a specific audience.

This focused approach allows for a clearer, more compelling value proposition that addresses the particular needs and desires of the target market. For instance, a skincare brand can concentrate on anti-aging properties, appealing directly to consumers looking for age-defying products.

Unaffected by Negativity From Master Brand

Individual brands are not affected by the potential negative brand image of the other brands within the company. This means that if the parent company or another product under the same umbrella faces any controversy or negative press, the individual product brand can remain insulated from this backlash.

For example, if a company known for its sugary snacks launches a health-focused product, the new brand can maintain its healthy image without being tarnished by the parent brand’s association with unhealthy food options.

Clear Market Positioning

Product branding allows for precise positioning of each product in the market, making it easier to target specific customer needs and preferences. This clarity in market positioning helps the product stand out among competitors by clearly communicating its unique benefits and value to the intended audience.

For example, a tech company might brand one product line as cutting-edge and innovative while another focuses on user-friendliness and affordability, each with a distinct market position that attracts different customer segments.

Flexibility in Innovation

Product branding provides the freedom to innovate and adapt the branding strategy to the specific needs of each product without being constrained by the master brand’s identity. This flexibility allows companies to experiment with new ideas, designs, and marketing approaches that might not align with the overarching corporate brand.

For example, a beverage company can introduce a new energy drink with bold, edgy branding that targets a younger demographic, even if its master brand is known for traditional, family-oriented products.

Disadvantages of a Product Branding Strategy

Let’s look at some of the disadvantages of a product branding strategy.

No Benefit From Master Brand’s Reputation

The individual brand does not benefit from the reputation of the master brand. This means that the new product must build its credibility and recognition from scratch, which can be challenging and time-consuming. Without the established trust and familiarity that comes with the master brand, gaining consumer confidence and market share can be more difficult.

For instance, a new entrant in a crowded market might struggle to compete against well-known brands without the backing of a recognized master brand.

High Marketing Cost

High cost of marketing to market each brand separately. Product branding requires significant investment in marketing and advertising to establish and promote each individual brand. These costs can quickly add up as companies need to create distinct campaigns, branding materials, and promotional strategies for each product.

Unlike a master brand strategy where marketing efforts can be streamlined and shared, product branding demands a dedicated budget for each product, making it a more expensive approach.

Hard to Diversify

Cannot diversify and introduce new complementary products into the market under the same product brand. This limitation means that once a brand is established for a specific product, expanding the brand to include new or complementary products can be challenging. Each new product would need to develop its own brand identity, which can fragment marketing efforts and reduce overall brand cohesion.

For example, a company with a successful brand for high-end watches might find it difficult to introduce a line of affordable accessories under the same brand without confusing consumers.

Resource Intensive

Requires significant resources to manage and maintain multiple distinct brands. Managing a portfolio of individual product brands demands considerable resources in terms of time, money, and personnel. Each brand needs continuous monitoring, strategic adjustments, and dedicated marketing efforts to ensure its success.

This can strain a company’s resources, especially for smaller businesses that might not have the capacity to handle multiple brands simultaneously. For instance, maintaining separate social media accounts, websites, and customer service channels for each brand can be overwhelming.

Complex Brand Management

Managing multiple product brands can be complex and requires a well-coordinated branding strategy. The complexity of overseeing various independent brands can lead to potential conflicts and inconsistencies in branding efforts. Ensuring that each brand aligns with its unique identity while also contributing to the company’s overall goals can be a challenging balancing act.

Effective brand management requires meticulous planning and coordination to prevent brand overlap or dilution. For example, a company with numerous product brands might struggle to keep each brand’s messaging and positioning distinct yet complementary.

Conclusion

Product branding allows individual products to shine with their own unique identity, strategy, and market positioning. This strategy can be highly effective for companies looking to target specific market segments and manage risks independently. However, it also comes with higher marketing costs and limited opportunities for leveraging existing brand equity.

Understanding the advantages and disadvantages of product branding can help you make an informed decision on whether this strategy is right for your business. By focusing on the unique needs and positioning of each product, you can create strong, memorable brands that resonate with your target audience.

Other posts in this series:

• Line Branding: The Complete Guide (with Examples)
• Range Branding: The Complete Guide (with Examples)
• Umbrella Branding: The Complete Guide (with Examples)
• Endorsed Branding: The Complete Guide (with Examples)