False confirmation theory
Posted: Mon Jan 20, 2025 9:03 am
Confirmation bias is when we look for or interpret evidence so that it confirms our existing beliefs. If a consumer prefers one brand over another, any addition that may be common to all brands will likely only reinforce that preference. Therefore, a positive brand image may not be influential if the consumer already has a choice.
Umbrella Brand Success Theories
Theory of schema correspondence
According to it, past experience is tunisia mobile phone numbers database important for storing and retrieving new information from long-term memory. Schemes are individual cognitive images that determine perception, thinking, and behavior. Information is perceived and evaluated taking into account existing mental maps. New products are priced under the influence of the environment based on already formed cognitive schemes that were formed as a result of past experience.
Case: VT-metall
Find out how we reduced the cost of attracting an application by 13 times for a metalworking company in Moscow
Find out how
The order of organizing an umbrella brand
The need for an umbrella brand for a company should be considered in light of its objectives and market conditions. For example, in the juice and beer segments, single-brand, line-extension brands predominate. However, in the confectionery, frozen food, and dairy markets, umbrellas are more common. Similarly, in the meat industry, an umbrella brand is used, but it represents several brands belonging to a single producer.
Marketing experts believe that it is not worth expanding a brand into product categories if there are already strong competing established brands. This can lead to failure and high promotion costs. In such a case, it is better to create a new product that will be independent and focused on a specific market. If a company still decides to use an umbrella brand, a possible technology may look like this:
Matching visual elements
To turn a brand into an umbrella brand, its name and graphic design must correspond to it. For example, “33 Cows” cannot be extended to other products, as this name is associated only with dairy products.
Directions
It is recommended to register a trademark in different product categories to avoid situations where other companies can use a well-known brand to promote their products. For example, the Baltika beer company was forced to go to court against the Metatabak company, which wanted to release cigarettes under the name Baltika. It is now known that Baltika has registered its trademark in the Condoms category, and the British company Virgin has patented its brand in the Coffins group.
The right moment
The brand should be expanded when it has already achieved a strong position in the market. It is desirable that the brand recognition indicator among the target audience be at least 50%.
Umbrella Brand Success Theories
Theory of schema correspondence
According to it, past experience is tunisia mobile phone numbers database important for storing and retrieving new information from long-term memory. Schemes are individual cognitive images that determine perception, thinking, and behavior. Information is perceived and evaluated taking into account existing mental maps. New products are priced under the influence of the environment based on already formed cognitive schemes that were formed as a result of past experience.
Case: VT-metall
Find out how we reduced the cost of attracting an application by 13 times for a metalworking company in Moscow
Find out how
The order of organizing an umbrella brand
The need for an umbrella brand for a company should be considered in light of its objectives and market conditions. For example, in the juice and beer segments, single-brand, line-extension brands predominate. However, in the confectionery, frozen food, and dairy markets, umbrellas are more common. Similarly, in the meat industry, an umbrella brand is used, but it represents several brands belonging to a single producer.
Marketing experts believe that it is not worth expanding a brand into product categories if there are already strong competing established brands. This can lead to failure and high promotion costs. In such a case, it is better to create a new product that will be independent and focused on a specific market. If a company still decides to use an umbrella brand, a possible technology may look like this:
Matching visual elements
To turn a brand into an umbrella brand, its name and graphic design must correspond to it. For example, “33 Cows” cannot be extended to other products, as this name is associated only with dairy products.
Directions
It is recommended to register a trademark in different product categories to avoid situations where other companies can use a well-known brand to promote their products. For example, the Baltika beer company was forced to go to court against the Metatabak company, which wanted to release cigarettes under the name Baltika. It is now known that Baltika has registered its trademark in the Condoms category, and the British company Virgin has patented its brand in the Coffins group.
The right moment
The brand should be expanded when it has already achieved a strong position in the market. It is desirable that the brand recognition indicator among the target audience be at least 50%.