Is branding necessary for a firm in an oligopoly?

Branding is not always necessary in a market that is an
oligopoly.  However, branding can be essential in many
oligopolies.

A firm in an oligopoly can sell a
differentiated product or it can sell a homogeneous product.  In cases where the market
is selling a homogeneous product, branding will not be important.  For example, Saudi
Arabia will not go to any great lengths to try to "brand" their crude oil.  It would do
them no real good because crude oil is a relatively homogeneous
product.

In cases where the product is differentiated,
however, branding is very important.  For example, the market for automobiles is an
oligopoly.  In that market, it is very important for a firm to build its brand.  The
brand tends to develop a reputation and a relatively faithful customer
base.

So, branding is not necessary in all oligopolies
because some oligopolistic markets sell homogeneous products.  When the product sold is
differentiated, though, branding becomes vital.