Dual Brand : Dual Branding Strategy Essay

1080 Words Oct 21st, 2016 5 Pages
Dual branding strategy
Before going more in-depth regarding how Best Buy can launch a successful market entrance in China, it is important to fully understand the strategy that was used by the powerhouse company previously in Canada. As previously explained, Best Buy used a marketing strategy of what is called, dual brand. Dual brand is a marketing technique where firms produces different brands with unique brand offerings even though they are under the same one umbrella or parent company (Lam, Chan, Gapoco, Oh & So, 2013). The reason why this could be advantageous is because with dual branding strategy, the parent brand isn’t restricted into narrow based name definitions. This strategy eliminates future possibility of a brand hassle when they choose to introduce a new brand offering that is not suitable with the current brand’s suggestive name. For example, should Singapore Airline introduces a new taxi line, it is best if they choose another name, because having the word ‘Airline’ for a taxi line is very confusing.

Lastly, a successful parent brand could be used as a credibility claim when they launch a new sub-brand (Tauber, 1981). The same research shows that a successful parent brand inspires their consumers with trust, experience, and satisfaction that they have felt when they are using the product of the parent brand. With this, they have certain amount of expectation and assumption that the new product would at least be of the same level of quality. This is a…

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