Essay by raven.oksasUniversity, Bachelor'sA, November 2007

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"A picture is worth…"The branding idea has been around for a little over a hundred years but has succeeded in associating business names with images of quality or inferiority within perceptions by the consumer. So with a successful family brand name it seems only beneficial to utilize that good name for sales in other areas, while ensuring not to damage the name in the process. We will discuss the advantages and disadvantages of using the family brand name versus single brand name, and view organizations that were successful and discuss why.

A good family brand name is what every company hopes to achieve, but there are costs incurred in the initial marketing of the name. The company must begin with name research as a great name is perfect start. A leading laundry detergent in Afghanistan would like not go over to well in any English speaking countries as the product name, Barf, brings thoughts of regurgitation; while in Dari the word Barf translates into snow.

The expansion cost is often less, as there is no need for name research, and heavy advertising expenses to get the brand name recognized. (The Branding Expert) People often embrace a family brand name regardless of the cost, for both interrelated and non-related products. If a new product is supported by heavy advertising, it is 70 percent more likely to be bought by consumers, while advertising for a new product introduced by a well-known brand name increases the effectiveness of the advertisement. (Kumar and Steenkamp, 2007)The new product could be interrelated as WD-40 accomplished with the Big Blast can designed for farm regions and in factories that use WD-40. Research had found that many customers, although loyal to the family name, wanted a product that applied WD-40 in a wider spray pattern faster. (Bounds, 2005)...