GROUP 10
AARIF | ARNAB | DIMPY | GAURI | MEGHA MOHNISH | PARAN
Designing and Implementing Branding
Strategies
Agenda
Brand Architecture
Brand Hierarchy
Designing a Branding Strategy
Using Cause Marketing to Build Brand Equity
Brand Architecture / Branding Strategy
A structure of brands within an organizational entity
A Branded House A House of Brands
Role of branding strategiesClarify Brand Awareness – Improve consumer understanding and communicate similarities and differences between the brands
Motivate Brand Image – Maximize transfer of equity to and from the brand to individual products to improve trial and repeat purchase
Brand Product Matrix
A graphical representation all the brands and products old by a company Product 1 Product 2 Product 3
Brand 1
Brand 2
Brand 3
Brand- Product relationships
• Represented by the rows of the matrix• Captures the brand extension strategy of the firm• Number and nature of products sold under different brand categories•
Brand Line
• Represented by one row of the matrix• Consists of all products (line+ category extensions) sold under a particular brand
Brand Product Matrix
Product-Brand relationships
• Represented by the Columns of the matrix• Captures the brand portfolio strategy of the firm• Number and nature of brands to be marketed in each category•
Brand Portfolio
• Represented by one column of the matrix• Consists of all brands and brand lines a particular firm offers for sale in a particular category
Brand Line Brand Portfolio
Brand Product MatrixProduct Line
• Group of products within a product category that are closely related to each other• Functionality, target segment, same retail outlets
• May include different brands, single family brand or an individual brand with line extended
Product Mix
• Set of all product lines and items that a seller makes available to buyers
Brand Mix
• Set of all brand lines that a particular seller makes available to the buyers
Breadth of a branding strategy – Product Mix
Number and nature of different products linked to the brands sold by a firm
BreadthDifferent product lines
1. Aggregate Market factors• Market size, Market
growth, Seasonality2. Category Factors
• Threat of new entrants, Bargaining Power of buyers and suppliers, Current category rivalry, Substitutes
3. Environmental Factors• Technological , Political ,
Economic, Regulatory, Social
1. Understanding of the market and cost interdependencies between products
2. Percentage of sales and profits contributed by each item
3. Ability to withstand Competition and address consumer needs
Depth Variants in each product line
Example HUL Product Mix
Food & beverages
Home Care Personal Care
Ice cream Soaps & Detergents
Hand Wash
Tea Cloth Conditioner
Shampoo
Ketchup Toilet Cleaner Conditioner
Soups Dish washer Soaps
Wheat Flour Deodorants
Crème
Depth of Branding Strategy- Brand Mix
Number and nature of different brands marketed in the product class sold by a firm Reasons – Increased Market Coverage
Pursue different price segments
Different channels of distribution
Different geographic boundaries
Increase shelf presence and retailer dependence
Increase internal competition within the firm
Yield Economies of scale in advertising, sales, merchandizing etc
• Maximize market coverage
• Do not ignore any potential Consumer
• Minimize brand overlap
• Minimize cannibalization
Depth of Branding Strategy- Brand Mix
Detergents
Different Roles of Brands
Flankers• Fighter Brands• Create stronger
points of parity with competitors' brands so that more important flagship brands can retain their desired positioning
Cash Cows• Brands which
manage to hold on to a sufficient number of customers and maintain profitability with virtually no marketing support
• More profitable to keep rather than to discontinue
Low end Entry or High End Prestige
• Low end- Attract customer to the brand franchise and then trade up to high priced product
• High end – Add prestige and credibility to the entire brand portfolio
Brand Hierarchy
Brand Hierarchy is a useful means of graphically portraying a firm’s branding strategy
Display’s the number and nature of common and distinctive brand elements across the firm’s products
Revealing the explicit ordering of brand elements
Ways to define brand elements and levels of hierarchy
• Corporate or Company Brand• Family Brand• Individual Brand• Modifier
Brand Hierarchy
General
Motors
Chevrolet
Trucks
ColoradoAvalancheSilveradoTahoe
Cars
AveoCobaltCorvetteSSR
Pontiac
G6TorrentSolsticeGrand Pix
Buick
LaCroseTerrezaRendezvousRainer
Cadillac
STSXLRSRXCTS
GMC
SierraCanyonEnvoyYukon
Saturn
IonL300VueRelay
Hummer
H1H2H3
Brand Hierarchy
Corporate or Company Brand• Highest level of the hierarchy• Name of subsidiary may appear• Combine corporate with family or individual brands (Conglomerates e.g. Siemens)• Company name is virtually invisible (e.g. DeWalt)
Family Brand
• Used for more than one product category
Individual Brand
• Brand restricted to essentially one product category
Modifier
• Designate a specific item or model type or a particular version or configuration of the product
Brand Hierarchy – Brand Equity
• Corporate image is of prime importance
• Strong statistical correlation between corporate reputation and consumers intentions
• To buy company’s product• Recommend to others• Buy a company’s stock
• Strong corporate image is an effective means to attract and motivate employees
• Corporate image factors
• Products and services the company provides• Role in society , actions towards environment• Communication to consumers
Corporate or Company Brand level
Brand Hierarchy – Brand Equity
• Corporate Brand Equity
• Differential response by consumers, customers, employees, other firms, or relevant constituency to the words, actions, communications, products, or services provided by an identified corporate brand entity.
• Corporate brand is distinct from a product brand as it can encompass a much wider range of associations
• Corporate image factors – Additional requirements
• High public profile• Willingness to subject to more scrutiny• Transparent values, activities and programs• High level of openness
Corporate or Company Brand level
Brand Hierarchy – Brand Equity
• Range brands or Umbrella brands• Specific set of associations across group of related products• Lower cost of introducing a related new product, higher level of acceptance• Failure of one product may have adverse effects on other products
Family Brand Level
• Customize the brand and supporting marketing activities to meet the needs of a specific customer group
• Focus on a certain target market• If brand fails, the risk to other brands and the company itself is minimal• Difficult, complex and expensive
Individual Brand Level
• Distinguish brands according to the different types of items or models• Quality levels • Attributes• Functions
• Modifiers make products more understandable and relevant to consumers
Modifier Level
Brand Hierarchy – Corporate Image
Product
Attributes, Benefits or Attitudes
•High-quality corporate image association•Products of the highest quality
•Quality is an important decision factor for consumers
•Innovative corporate image association•Product innovation and improvements; Unique marketing programs
•Competitive weapon; Trustworthy and likeable
People and Relationshi
ps
•Customer focused corporate image association•Responsive to and caring about it’s customers
•Reflects characteristics of employees
Values and Programs
•Socially responsible corporate image association
•Environmentally concerned corporate image association
Corporate
Credibility
•Corporate Expertise
•Corporate Trustworthiness
•Corporate Likability
Brand Strategy
Deviation in brand strategy
• Corporate objective• Consumer behavior• Target market• Competitive activity of the company
Challenges in branding strategy
• Design the proper brand hierarchy with the right number• Nature of brand element to use at each level• Optimal supporting marketing program to create brand awareness• Type of brand association at each level
Number of levels of brand hierarchy
Advantage of brand levels
• Communicates additional specific information about the product• Lower level hierarchy gives flexibility in communicating the uniqueness• Higher level provides economic means of sharing information and synergy across the company
Sub branding
• Means of modifying super ordinate brand• builds stronger connection to the family brand • Creates brand specific belief• Helps consumers to understand about product variability and suitability• Helps sales people and retailers to organize selling efforts
Principle of simplicity
• Provide right amount of information to consumers - no more or no less
Principle of clarity
• Transparent relationship of all brand elements at each level
Desired awareness at each hierarchy level
Decision on how much awareness at each level
What type of association at each level
Brand knowledge creation process
Principle of relevance• Based on advantage of efficiency and economy• Association should be relevant to as many level as possible• E.g. Nike’s slogan “Just Do It” relevant to virtually all its products• More abstract the association, more relevant across different product setings
Principle of differentiation• Based on disadvantages of redundancy• Appropriately distinguish brands at the same level• Brand extension and innovation to be introduced thoughtfully• Choosing the relative emphasis to place on different products making up brand hierarchy
Combining brand elements from different level
Principle of Prominence • Relative visibility among brand element• Primary brand element should covey main product positioning and point of difference• Secondary element convey more restricted set of association such as point of parity. PEPSIVitacola Or Vitacola BY
PEPSI Single entity
• Only one product line or set of services• Image of the company and product to be the same e.g Federal Express
Brand dominance
• Strategic decision not to relate brand and corporate names• E.g. Phillip Morris makes little connection to Marlboro and Meritt.
Equal dominance
• Separate image of product but also associate with the corporation• Neither the corporation nor the individual brand name dominates• E.g. General Motor with its different car division and individual brands as Electra, Riviera
Mixed dominance
• Sometimes individual product brand and sometime corporate name is dominant
Corporate dominance
• Corporate name is supreme and applied across range of product lines e.g Xerox
Developing brand strategy
Linking brand element to multiple products
• Horizontal aspect of brand hierarchy• Principle of commonality• More common brand element product share, the stronger the linkage between the products• e.g. HP LaserJet followed by DeskJet, PaintJet, ThinkJet, OfficeJet printers
Developing a brand architecture
• Clearly defined relevant customer segment• Brand positioning and equity in terms of point of parity and differences• A good brand mantra to offer rational and emotional benefit• Brand equity implication of transfer from parent brand to individual products• Carefully evaluate brand portfolio and hierarchy
Adjustment to the Marketing Program
Different brands require different marketing mix
Corporate image campaign
• Association to corporate brand as a whole• Tend to ignore individual products• Builds awareness of company and nature of buisness• Create favourable attitude and perception of company credibility• Associating belief to product specific marketing
Brand line campaign
• Focus on breadth of product associated with brand• Shows different benefits of range of products• Increase brand awareness
Building brand equity
Cause Marketing
• Offer from the firm to contribute a specified amount to a designated cause• Also customer engage in revenue providing exchange satisfying organizational and
individual needs• e.g. ITC contributes to rural education program in purchase of every classmate notebook
Advantages of cause marketing
• Building brand awareness• Enhancing brand image• Establishing brand credibility• Evoking brand feeling- social approval and self respect• Creating sense of brand community
Thank You