A dual brand strategy is the association of two or more already well recognized trademarks in a synergistic retail setting designed to benefit each, is one of the fastest growing areas in franchising. Numerous systems are learning that they’re significantly more effective in presenting their products and services to the public when they do so in association with another brand.
A company may use dual branding when they want to increase the market share, saturating the market by filling all price and quality gaps and catering to brand switchers users who like to experiment with different brands, a dual brand strategy also may be applied when two companies want to …show more content…
Thanks to the cultural differences, the Chinese had different answers to messages than in other countries. For the Chinese, having preferences for a brand didn’t mean that they would be loyal, they took prices as a priority rather than the brand name. Best Buy had to invest in in point of sales promotion and also in merchandising techniques because they the Chinese changed a lot their final buying decision.
4. Does a dual-brand strategy provide Best Buy with a core competitive advantage as it expands into new global markets?
Something very important that Best Buy has, is their previous experiences thru their years in the business and their big purchase made in Canada, which opens up their eyes to have a clearer vision of what rout they should take, but the most important thing to have into account is that not all the markets work the same way, because of many circumstances like culture, moral, politics or behaviors that may not allow them to have the same strategy all around the world.
In their way to expansion they should take care first on analyzing the behavior of its target market, what are the pros and cons, and most importantly is making the question: Is this market suitable for a dual-brand strategy?
But definitely having a dual-brand determines a competitive advantage, as it was explained latter not in all markets, but it certainly is a good decision, mostly because the other brand you are investing in