Thursday, March 5, 2009

Cluster Branding

I am sick of the word “Economic Downturn” but I / we can’t abate myself/ our self with the effect of it either directly or indirectly. Branding is critical to both marketing and the company’s budget. To make your brand vocal and communicate the offering of your company one need to brand and re-brand. Succumb to situation companies are cutting down its cost of operations be it branding, this in return affecting the advertising and brand management companies. Advertising companies are finding it difficult maintain the CRM in the low cost strategy. Now how you reduce cost in the already reduced clientele.
What i would suggest and foresee is to open a new channel of brand management strategy. Whatever one may call , well i call it Cluster Branding and I will define it as a symbiotic branding strategy wherein the different companies from same fraternity come together to communicate their offerings. To make sense the ad agencies will offer platform to companies in same industry say IT/ MR/ Consultancy/ Auto etc,. and advertise their offerings.
In a B2B scenario when say, companies into Market Research and Consultancy can participate in the ad/ promotion/ also OOH advertising being in the same ad campaign.
Well this might sound impractical considering the fact these companies are competitors to each other. However, for an outdoor B2B platform where the cost is a factor and economies of scale is a sound good factor, ad agencies could woo them to get printed. Also the Nitti gritty can be argued and need to sort out...hence it’s a WIP plan as of now.
coming to the advantage of this would be definitely to do with cost cutting specially in times of crisis. I will explain by giving example …say a big MNC like HP who is into MR and business intelligence and needs to advertise frequently from the HR prospective and also to brand it best in this business, can find it hard to allocate big sum for advertisement. On the other side small company like Infiniti whose core business is MR/CI/BI finds it difficult to allocate budget to advertise itself which is also necessary to stay into the business. Now Cluster Branding would be the solution to it. How??
Bringing both the companies in the same print / outdoor ad platform where both will leverage in terms of cost and in terms of brand identity making their presence currently in the market. Small company will leverage its brand identity by getting associated with the big brand in the same business and big companies will reduce it cost of advertisement in the long run.