A midsize growing company providing diverse services (two unrelated verticals) under one brand name, is it an advantage or disadvantage to the company? From the perspective of marketing and promotion, especially when one of the two verticals contributes around 75% of the overall revenue.
Please provide any citations if available.
According to me if the services are unrelated company have to use multi brand or umbrella brand but not the same brand. In India
examples of Umbrella branding but with differentiation
1. HDFC bank and HDFC ERGO
2. LIC and LIC Numura.
3. Canara Bank and canra bank HSBC
4. bajaj Finance and Bajaj Allianz
5. Kotak bank, Kotak securities, Kotak life insurance.
6. tata finance and tata AIG, .
Unrelated
1. IBM and Daksha
2. GE and Genpact.
3. Cipla and Alpic.
4. TCS and Vivanta, Ginger, taj
5. ITC infotech, ITC client logix
6. Infosys and Progeon.
7. Oracle and Iflex.
8. Mahindra logistics and tech Mahindra.
9. satyam and Sify.
10. Birla fianicials and BITS pilani
11. Idea cellular and Birla mutual fund.
12. bank of Baroda and india first.
Have you read a book by Philip Kotler and Waldemar Pfoertsch called B2B Brand Management?
The authors analyze many interesting cases illustrating the successful branding of B2B services.
I think the company is not able to exploit the potential existing in its two services as it is strengthening the brand name. The brand image is affected here because the customer has two services in his mind when he thinks of single brand. One brand must carry on product line else it creates a confusing image in the mind of consumer.
In my opinion, I feel it is disadvantage since it contributes 75% in one of the vertical services. So means the other one would be 25%. It might be better to cease the 25% revenue contribution. This is because the customers are more recognise the brand of 75% revenue service. In addition, the company is growing midsize company, might not widely recognised yet. Hence, it is better if it could focus on one core services until it is well established.
I hope it would help you, Kumar ^^
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