Brand-based business models

Question 1

What is a brand-based business model?

Answer 1

A business model where the brand has a central role in value-creation.

Question 2

Which are the 7 central brand-based business models?

Answer 2

• Product-line extension
• Franchising
• Brand extension
• Merchandising
• Co-branding
• Brand licensing
• Multi-branding

Question 3

What is the same and what is new in Product line extension, in terms of brand and product category?

Answer 3

Same brand, same product category.

Question 4

What is the same and what is new in franchising, in terms of brand and product category?

Answer 4

Same brand, same product category.

Question 5

What is the same and what is new in Brand extension, in terms of brand and product category?

Answer 5

Same brand, new product category.

Question 6

What is the same and what is new in Merchandising, in terms of brand and product category?

Answer 6

Same brand, new product category.

Question 7

What is the same and what is new in Co-branding, in terms of brand and product category?

Answer 7

Same brand, new or same product category

Question 8

What is the same and what is new in Brand licensing, in terms of brand and product category?

Answer 8

Same brand, new product category

Question 9

What is the same and what is new in Multi-branding, in terms of brand and product category?

Answer 9

New brand, same product category

Question 10

What are the 3 forms of franchising?

Answer 10

• Product/trade name franchising (i.e. store concept, car sales shop)
• Manufacturing franchising (coca-cola bottlers)
• Business format franchising (Subway, McDonald’s, ICA.)

Question 11

What are the pros of the models where you use the same brand in the same product category?

Answer 11

• Makes for an easier launch.
• You leverage the main brand.
• Utilise existing infrastructure.
• Develop the brand.
• Offer variety.
• Efficient promotion.
• Makes the brand more attractive.

Question 12

What are the cons of the models where you use the same brand in the same product category?

Answer 12

• Confusing.
• Big risk if failure occurs.
• Cannibilising the main brand.
• Diluting the brand identity.

Question 13

What are the pros of the models where you use a new brand in the same category? (multi-branding)

Answer 13

• Target differentiation.
• Clean start.
• Benefits of scale.
• Small confusion.
• Less risk for the original brand.

Question 14

What are the cons of the models where you use a new brand in the same category? (Multi-branding)

Answer 14

• Confusing to the informed.
• Losing the benefits of having a huge brand.
• No main-brand leveraging.