Question

Innovation and brand consultant, Anisha Motwani, believes that free trials or sampling as a strategy is mostly prevalent and successful in categories that have deep seated habits and have high frequency of consumption. Brand switching in this category require attitude and behavior changes and free sampling influences customers to try new brands and thus increasing the probability of purchase. Such categories could include newspapers, food products, etc. Free trials can also be found in case of expensive offerings where consumers prefer sampling before making a final commitment.... Success of Reliance Jio in the intensely competitive Indian telecom market brings forth the strength of trial marketing strategy, even in the service industry. Reliance Jio Infocomm Ltd offered free sampling of Jio's voice calling, text messaging, and data services, and acquired stupendous 100 million subscribers, of which it continued to retain 72 million even after the free trial period ended. Conventional wisdom suggests that brand that indulge in trials and discounts erode brand Value. Here’s the reality though. People value brands. But people also seek value for money....

With reference to the case study answer the following question:

With reference to the case study, explain the term Brand and its types.

Answer 1

A brand is a unique name, word, sign, symbol, design, or mix of these features used to identify and distinguish a seller's products or services from those of competitors. As demonstrated in the case study with examples such as Reliance Jio, a brand is more than a label; it represents value for money, quality, and an emotional connection that fosters trust and long-term customer retention.

Types of Brands:

1. Manufacturer’s Brand (National Brand): This type of brand is established, owned, and promoted directly by the manufacturer of the goods. The manufacturer has complete control over the quality, distribution, and marketing strategy (for example, Reliance Jio in the telecom sector or the corporate food brands cited in the case).
2. Private Brand (Dealer/Retailer Brand): This brand is owned and produced by a distributor, wholesaler, or retailer, not the manufacturer. Third-party producers typically manufacture the products, which are then marketed under the retailer’s exclusive store label.
3. Individual Brand: This is a method in which a corporation assigns a unique and different brand name to each of its various goods. This ensures that if one product variety fails in the market, it will not harm the reputation of the company’s other products.
4. Family Brand (Umbrella Brand): This is a method in which a single, established brand name is utilised to market a variety of distinct but related products. It takes advantage of the parent brand’s existing goodwill to quickly introduce additional products and save on total promotional costs.