Company name as brand name


In certain cases, the company name itself is used as brand name under which varied products are marketed.

Companies like Bajaj, Godrej, Philips, Cadbury’s, Johnson & Johnson, Videocon, BPL, HMT and Samsung use the company name as brand name for their products. The sheer power and sway of the company’s reputation is utilized in marketing the products.

Godrej, at a point of time, examined the feasibility of changing the brand name for a few of its products. But the company decided against it, as it found that over the years, the company name had come to serve as a quality assurance for the consumers, and that by introducing new names, the company may be loosing this identity and leverage.

Company name is used in branding only when the company is confident that lending its name to its products gives a better identity and image.

Middlemen’s Brand/Store Brand/Private Label

Sometimes, manufacturers leave their products for branding by the distributors/retail chains as per the latter’s choice. Such brands are called middleman’s brand; they are also known by as store brands/private labels. Small manufacturers, who do not possess the financial and management resources for building brands and doing marketing and promotion on their own, usually take to this route. There are many small-scale producers of products like bulbs, fans, soaps, detergents, food products, garments, etc., who leave their products for branding and marketing by distribution.

Spencer’s is a middleman’s brand (store brand). Many products ranging from bread and soda to consumer durables like storage water heaters are sold by the Spencer’s distribution chain under the brand name Spencer’s.

Stop is another store brand; it is the brand of the retail chain Shopper’s Stop.

Basic Blues is the store brand of Tata’s Westside retail chain.

Food world is a store brand owned by the Food world chain store.

The products that go under these brands are manufactured by other companies— big and small— whose identities do not go with the products. The distribution house/retail chain brands and sells the products.

Big business houses capable of undertaking all marketing functions do not normally allow middle’s branding for their products. They are prepared to bear the responsibility of owning and promoting the brand; naturally, they earn the business rewards that are inherent in them. But here too, there are no hard and fast rules. Many companies opt for a mix of strategies. For example, ITC, the leader in the Indian cigarettes industry, having dozens of cigarette brands, are now exporting cigarettes in bulk to foreign countries to be marketed under the brand names of other companies/distribution houses.

In fact, in the western markets today, high quality store brands have become very popular and they are competitors to national brands. . The former now account for 18% of supermarket sale volumes. In absolute terms, this works out to $25.5 billion. Obviously, the presence of a store brand, with a substantially lower price and acceptable quality, is becoming an irresistible proposition to the consumer. In India too, with the growth of big retail chains, store brands have started coming up, though the trend is yet to make substantial inroads.