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 …show more content…
But, instead of doing the conventional action which is to convert every Future Shop’s store into a Best Buy, the CEO of Best Buy considers dual branding (Chandrasekhar & Dawar, 2016). The article noted that the Board of Best Buy was initially sceptic, and that they wanted to see more proof of the viability of the strategy before falling on board. There are several reasons why dual brand seems to be more advantageous over conventional take-over. The article mentions that Future Shop had such a tremendous brand recognition, should the name be replaced with Best Buy, they would have to re-invest in their new branding. Additionally, there is a market gap for a second major EC firm to run in Canada, and Best Buy previously set up foundations to enter the Canadian market. They see this chance to seize the Canadian market and lead the EC retailing market with both
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 …show more content…
But, instead of doing the conventional action which is to convert every Future Shop’s store into a Best Buy, the CEO of Best Buy considers dual branding (Chandrasekhar & Dawar, 2016). The article noted that the Board of Best Buy was initially sceptic, and that they wanted to see more proof of the viability of the strategy before falling on board. There are several reasons why dual brand seems to be more advantageous over conventional take-over. The article mentions that Future Shop had such a tremendous brand recognition, should the name be replaced with Best Buy, they would have to re-invest in their new branding. Additionally, there is a market gap for a second major EC firm to run in Canada, and Best Buy previously set up foundations to enter the Canadian market. They see this chance to seize the Canadian market and lead the EC retailing market with both