Monolithic approaches can be an outcome of corporate egotism, or fueled by a desire to influence stock market investors. But monolithic branding can also be an effective technique to extend the reputation of one strong unit into similar markets – or into even quite different markets. The trust and reputation developed in one area was used to leverage entrance into another market area.
Moving down the condiment aisle in the grocery store, Heinz products stand out for their monolithic approach. Heinz Ketchup, Heinz Mustard, Heinz Dill Relish and so forth. The Heinz name is preeminent while the product itself is described in a generic manner. The logotype and position of the logo are all very consistent. Heinz moved from horseradish and Ketchup to Pickle, and then jumped to baby food.
- Faster brand building of new products
- Lower brand building costs
- Strong barrier for new entrant
- Greater profits involve
- Greater freedom in marketing strategies
- Disadvantage of monolithic branding are as:
- Bad experience or decline in popularity of one brand can affect the entire organization
- Greater risk involve