Should Premium Brands And Commodity Brands Mix?

Branding Strategy Insider helps marketing oriented leaders and professionals like you build strong brands. BSI readers know, we regularly answer questions from marketers everywhere. Today we hear from John, a VP of Marketing in New York City, New York writes…

“We have created a couple of brands each with a distinct and separate mission. Both brands will be moved online soon. We are testing the concept of selling online through Amazon.com One brand is a higher end, design led brand. The other brand is for more commodity type items. Both target inside the home.

Heres the scenario:

· We want to test the concept of selling online

· There is an internal group who wants to sell the commodity brand item under the design brand to gauge potential of the channel

o Reasoning is that the design brand is trademarked and we can go forward immediately

o Then, if successful, thought is we can migrate to the commodity brand and there is little risk to the design brand if “only a few” people see it

· I advised against this because I believe each brand should stand on its own at all times and there should not be any crossing of the two

 I am reaching out to get your expert point of view as well as those of BSI readers.”

Thanks for your question John. In general, I would advise against mixing brands, especially ones that are more upscale or unique with those that are more commodity-like. This can create marketplace confusion and dilute the perception of the more unique/upscale brand. If, for some reason this has to be done, I would limit the test as much as possible in time and scope so that as few people as possible are confused. I would also make sure that all vestiges of the mixed branding completely disappear after the test.

We are happy to help John. Have a question related to branding? Just Ask The Blake Project

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2 comments

  • Darren Coleman

    May 23, 2011 at 1:52 pm

    Hi John,

    Interesting scenario. I’m just wondering if the internal group are sales people as this suggestion seems very short term? Brands take a long time to build. They’re valuable strategic assets. I really would advise against mixing a commodity and premium brand. You’ll confuse both target markets and so undo any good work you’ve carried out to date. Hope this helps.

    Best, Darren

  • John

    May 25, 2011 at 1:11 pm

    Darren –

    Thanks for the feedback and I agree with your comments.

    Yes, there is sales momentum behind this. Over the last few days we have been able to negotiate and I believe mitigate this issue.

    The principles you mention are spot on and our dialogue continues to drive toward those principles. Nobody wants to do anything “wrong” they just want to move fast. I think we’ve found a way to do both.

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