From a viewpoint of branding strategy, a bundled brand name appears to be a valuable strategic tool because it takes advantages of family brand names and individual brand names. That is, with a well-known family brand name, it is easy to convince consumers and to reduce introducing expenses of a new brand name: on the other hand, it is possible to differentiate products and to penetrate into a target market with a individual brand name.
But, bundled brand names are not always successful because the upper brand image of a bundled brand name is diluted in case of disharmony of the upper brand image and new products' attributes.
After all, bundled brand names are mainly used in markets which are consistent with the established corporation's image and which have keen competition, namely, in markets with a strong competitive position and high market attractiveness. In addition, the outcome of a bundled brand name is found high in such a market. On the contrary, in markets which have a weak competitive posision and low market attractiveness, individual brand names seem to be a desirable branding strategy.
Consequently, for the purpose of using a bundled brand name effectively, there is a prerequisite, that is, understanding the competitive position and the market attractiveness through close analyses of the new product market.