MM6016BRANDING AND MARKETING COMMUNICATION

Master of Business AdministrationSchool of Business and Management

Institut Teknologi Bandung

BRANDING STRATEGY

1

What is Strategy?

• Creation of unique and valuable position, involving different set of activities

• Requires trade offs in competing – choosing what to do and what not to do

• Involves creating fit with company’s activities

Michael E. Porter (2000), What is Strategy? Harvard Business Review

2

Branding Strategy

Deciding what a company should do and should not do in building the

equity of a brand so that it will fit the company’s branding objectives and

overall activities of the company

3

Competitors’ Extended Network

Branding Context

Branding Strategy from An Extended BVC Perspective

4

Branding Strategy & Investment

Brand Equity

Market

Brand Market Performance

Competition

The

Foca

l Co

mpa

ny’s

Exte

nded

Net

wor

k

Branding Strategy Steps

5http://saudiasahi.com/images/strategy-overview.jpg

Results of Situation Assessment• Brand awareness problems:

– Brand is not recognized– Brand is not Top of Mind

• Brand Association problems:– Weak association– Missing association– Unclear association– Too much association

• Perceived quality problems:– Bad quality– Inconsistent quality– Lower quality compared to competitors– Quality does not meet standard– Lack of important quality aspect

• Brand loyalty problems:– Attitudinal loyalty problem: e.g. Lack of net promoters– Behavioral loyalty problem: e.g. Few repeat buyers

6

Brand Awareness ProblemsTry yourself with the following brands:• Mega Net• Arke• Atari

Try to mention some brands under the following categories:- Energy drinks- Sneaker- Emergency light

7

Brand Association Problems

8

Sunsilk Co-Creation

Source: Anjani, A.H., 2011. ANALYSING INFLUENCE OF SUNSILK CO-CREATION TOWARD PERCEPTION OF SUNSILK IN BANDUNG, Undergraduate Final Project, School of Business and Management, Institute of Technology Bandung

Respondents’ PerceptionsNo Variable Mean Top Two Box

1 More Convinced that Sunsilk Gives Beautiful Hair All Day 2.67 65.83%

2 More Convinced that Sunsilk as a Brand that Solves Various Hair

Problem 2.75 66.84%

3 More Convinced that Sunsilk Gives Visible Result to its Users 2.68 63.59%

4 Establish Sunsilk Image as Trusted Brand 2.96 80.55%

5 More Convinced that Sunsilk is a Modern Brand 3.11 88.03%

6 Enhance image of Sunsilk as a Brand that Makes its Users Feel Confident 2.84 73.31%

No Variable Mean Top Two Box 1 Sunsilk Gives Beautiful Hair All Day 2.49 48.88%

2 Sunsilk as a Brand that Solves Various Hair Problem 2.4 44.14%

3 Sunsilk Gives Visible Result to its Users 2.36 38.91%

4 Sunsilk is a Trusted Brand 2.72 68.33% 5 Sunsilk is a Modern Brand 2.67 65.84%

6 Sunsilk Makes its Users Feel Confident 2.38 43.40%

Panther’s keyBrand associations

Toyota’s much wider keyBrand associations

10

Panther is strong in:DISTRIBUTION & SERVICE

While weak in:PRODUCT & PROMOTION

11

Perceived Quality Problems

Brand Loyalty

Problem

12

Brand loyalty is relatively lower than average

12

Branding Strategy Alternatives• Single brand strategy:

– Brand revitalization• Expanding brand awareness• Brand elements redesign• New and completely different usage of brand• Brand repositioning

– Brand reinforcement• Brand fortification• Brand leveraging

• Multiple brand strategy– Brand extension– New brand/brand portfolio strategy

13

When to Use Branding Strategy?

• Case 1: Kartu Halo• Case 2: Orchid Ecotel• Case 3: McDonald’s McCafe Initiative

14