In the battle of the brands between national and private brands, retailers have many advantages.
retailers often price their store brands lower than comparable national brands.
store brands yield higher profit margins for the reseller.
store brands give resellers exclusive products that cannot be bought form competitors.
Licensing
Name and character licensing has grown rapidly in recent years. Annual retail sales of licensed products in the United States and Canada have grown from only $4 billion in 1977 to $55 billion in 1987 and more than $191 billion today.
Co-branding
Co-branding occurs when two established brand names of different companies are used on the same product.
Co-branding offers many advantages.
The combined brands create broader consumer appeal and greater brand equity.
Co-branding also allows a company to expand its existing brand into a category it might otherwise have difficulty entering alone.
Co-branding also has limitations.
Such relationships involve complex legal contracts and licenses.
Co-branding partners must carefully coordinate their advertising, sales promotion, and other marketing efforts.
Each partner must trust the other will take good care of its brand.
Brand Development
a company has four choices when it comes to developing brands.
Line Extensions occur when a company extends existing brand names to new forms,coloes,sizes,ingredients, or flavors of an exist product category.
Brand Extensions extend a current brand name to new or modified products in a new category
Multibrands introduce additional brands in the same category.
New brands
Megabrand strategy weeding out weaker brands and focusing their marketing dollars only on brands that can achieve the number one or number two market share positions in their