Question
This architecture puts all its marketing funds behind establishing an individual product as a brand , not the company. In fact, consumers may not even
This architecture puts all its marketing funds behind establishing an individual product as a brand, not the company. In fact, consumers may not even know the company behind the product. For example, did you know that Braun shavers and Giorgio fragrances are owned by Proctor & Gamble, who created the discipline of brand management?
You need big bucks to create product brands, but the results in FMCG (fast-moving consumer goods) markets can be worth it. P&G has over 14 brands that exceed $1 billion dollars in annual sales. However the investment required is beyond the reach of most hi-tech companies. P&G spends about 7% of sales on advertising alone and was the largest US advertiser in 2007, spending over $2.6 billion dollars, more than twice as much as the nearest competitor, which was General Motors. Unless you are a pure-play internet retailer that percentage is way beyond your reach.
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