SBP 055: A "House Brand" versus a "House of Brands"

The Activator HQ Podcast (formerly The Smallstarter Business Podcast)

Can you hate a company and still give them your money?

It happens all the time.

Take Facebook for example.

Some people don’t use Facebook.

They prefer Instagram or WhatsApp instead.

But Facebook doesn’t care.

It owns both Instagram and WhatsApp and will still get your time and money.

Another example.

Some people don’t like Coke because of its high sugar content.

They would rather buy Eva bottled water or one of the Chivita fruit juices.

But guess what?

CocaCola doesn’t care.

That’s because CocaCola will still get your money because it owns both Eva and Chivita brands.

But there’s also another interesting trick.

Richard Branson has built “Virgin” into one of the most successful brands in the world.

As a result, he can launch a new and unknown product and quickly make a lot of money just by sticking the Virgin name on it.

He has done it successfully with an airline, a bank, gyms, book publishing, and travel companies.

Africa’s richest man -- Aliko Dangote -- also follows the same strategy.

Almost every product in his empire carries the “Dangote” name -- from cement, sugar, salt, and pasta, to the new refinery.

So, how come?

How come companies like Facebook and CocaCola use different names for their products?

And how come entrepreneurs like Branson and Dangote prefer to use the same name on all their products?

It’s not a coincidence.

It’s a deliberate strategy.

And you’re about to learn how this strategy works in today’s exciting episode.