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The power of a strong corporate brand is even visible in company with multiple brands as demonstrated by CNET, which incorporates its well-known name into less popular sub brands under its network -- News.com, Search.com, Download.com, Shopper.com, CNET Radio -- to boost their credibility. You can instantly get
'feel' of CNET when logging on to any of these sites as they essentially share
same colors, layout, and navigation. News junkies are ensured of
credibility of content presented by News.com, which bears
CNET logo of trustworthy brand of network of technology-related sites.
Ironically,
strongest point of a company brand is also its weakest link. Relying on a single brand can do widespread damage across sub brands in catastrophic episodes, even when only one product involved. In
wake of Ford-Firestone tire debacle in 2000 for a while both companies were down in
toilet with eggs on their face, despite
exclusivity of
mishap - Firestone Wilderness AT tires on Ford Explorer.
On
other side of
spectrum, individual brands can stay virtually unscathed when their corporate parents stumble upon mishaps. The downward spiral that illustrates AOLTimeWarner's image since
completion of AOL-TimeWarner merger in early 2001 does little harm to its brands;
general public sees Fortune and Warner Music as separate entities with their own image and characters, without drawing any reference to
fact that AOLTimeWarner has become an example of a failed mega merger.
Association to established brand
It is more practical and easier to launch an individual brand when not operating under
shadow of corporate brand - particularly in
wake of a disastrous event that hurts
image of
company. The new brand can be safely introduced to and accepted by
market without
fear for consumers' associating it with
corporate brand under crisis.
This advantage has been enjoyed repeatedly by consumer-goods companies such as P&G and Unilever. P&G exploits
potential of emerging markets in South America and Southeast Asia by creating regional brands, without noticeable connection to
image of P&G and its other brands in
United States and other countries. Furthermore, except for those in business and economy sector, probably nobody has no idea what P&G is or what it does, or what company makes their laundry detergent.
Conforming to
unofficial but widely existent phenomenon that no school of thought can be valid at all times,
two branding strategies I am proposing here are subject to a set of constraints -- current condition of market, nature of business, and consumer, economy, and social environments. The persistent success of Sony in sustaining mind share as a household name in advanced and long-lasting electronics, may justify
option of going with company brand. Yet for more than fifty years Nestle and P&G, and now AOLTimeWarner, have proven that settling down in
background and instead diverting
spotlight to a set of well-managed individual brands, can be a lifesaver during times of crisis.

Johann is an Internet Marketing Consultant at Microsoft The Business Internet Competency Center in Jakarta, Indonesia. You can reach him via email at independent@excite.com or visit his company's website www.mbicc.com and his online branding e-zine www.pranala.com