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Evaluating the House of Brands Strategy Using Brand Equity and Intra-Firm Loyalty

By: Material type: TextTextPublication details: USA American Research Institute for Policy Development January 2023Description: 94-104ISSN:
  • 2333-6080
Subject(s): In: American Research Institute Journal of Marketing ManagementSummary: A common strategy of large firms is to own several brands in the same product category space (i.e., the „house of brands‟) to segment the market and leverage product capacity and distribution networks. However, a purely financial view of this strategy often overlooks whether these brands have truly segmented the market to find loyal consumer segments or the value of the brand relative to the competitive space. This research proposes evaluating the house of brands strategy through two measures: brand loyalty when competing against its sibling brands (intra-firm loyalty) and the brand‟s ability to generate value to consumers (brand equity). A framework using these two measures proposes four brand types (resonant, change of pace, niche, do-or-die). The framework is examined using large-scale household purchases of laundry detergent brands from two large firms. The results show that each firm has brands occupying varying positions in the framework, with a linkage between intra-firm loyalty and brand equity. Importantly, some brands are seemingly kept in the marketplace despite neither finding a loyal consumer segment nor generating brand equity. The research concludes with managerial implications in using the framework as a tool for evaluating the house of brands strategy.
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Holdings
Item type Current library Call number Vol info Status Notes Date due Barcode Item holds
Journals and Periodicals Journals and Periodicals Main Library MAGAZINE/MAR/Vol 11, No 1/55513557/JA8 (Browse shelf(Opens below)) MAGAZINE/MAR/Vol 11, No 1 Not for loan 55513557/JA8
Journals and Periodicals Journals and Periodicals Main Library ON SHELF MAGAZINE/MAR/Vol 11, No 1/55513557 (Browse shelf(Opens below)) Vol 11, No 1 (20/05/2030) Not for loan Journal of marketing management - January - June 2023 55513557
Total holds: 0

A common strategy of large firms is to own several brands in the same product category space (i.e., the „house of brands‟) to segment the market and leverage product capacity and distribution networks. However, a purely financial view of this strategy often overlooks whether these brands have truly segmented the market to find loyal consumer segments or the value of the brand relative to the competitive space. This research proposes evaluating the house of brands strategy through two measures: brand loyalty when competing against its sibling brands (intra-firm loyalty) and the brand‟s ability to generate value to consumers (brand equity). A framework using these two measures proposes four brand types (resonant, change of pace, niche, do-or-die). The framework is examined using large-scale household purchases of laundry detergent brands from two large firms. The results show that each firm has brands occupying varying positions in the framework, with a linkage between intra-firm loyalty and brand equity. Importantly, some brands are seemingly kept in the marketplace despite neither finding a loyal consumer segment nor generating brand equity. The research concludes with managerial implications in using the framework as a tool for evaluating the house of brands strategy.

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