What is the advantages of combination brand name?

Question

What is the advantages of combination brand name?

Answer 1

By combination, I'm thinking that you mean a 'parent company' logo sitting alongside a 'brand' logo.

The main advantage is:

The brand can receive 'instant' reputation and trust because it is related to the parent company. This is especially true in a cluttered marketing category.

The disadvantages are: That the brand can't really create a new position in the market, because people automatically associate it with the values and personality of the parent company. Combination brands are also difficult to style (because they constantly need more than one logo). The bad PR from one association can also quickly spill to the other company/brand.

Answer 2

Getting people who already trust one brand to open their eyes to the new brand because they are now combined. Sprint and Nextel Telephones tried to do that when they combined.