48990227 Strategic Brand Management Keller 11 Branding Startegies 0011

8/13/2019 48990227 Strategic Brand Management Keller 11 Branding Startegies 0011

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Designing and Implementing

Brand Strategies


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Designing and

Implementing Brand Strategies

defines brand boundaries and brand

complexity

defines the relationship between the brand

and the products

Two strategic tools help formulate branding

strategy that

1. Brand architecture / strategies(a) Brand-product matrix and

(b) Breadth of branding strategy

(c) Depth of branding strategy

2. Brand hierarchy


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Brand Architecture / Brand Strategy

Objective of Brand strategy is to understand

and organize Firms products in consumers

mind

Its role is to -

1. ClarifyBrand Awarenessimprove consumer

understanding and communicate similarities and

differences between individual products2. MotivateBrand Imageto improve trial and

repeat purchases by maximizing transfer of

brand equity to / from the brand to individual

products


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Brand Architecture / Brand Strategy

Frequently adopted brand strategies are

broadly 2

Branded house umbrella branding

(corporate /family branding)

House of brands collection of individual

brands


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Brand-Product Matrix

Must define the Brand-Product Relationships. . .

ROWSall Brands of the Firm,

Brand-product relationship (brand lines)

COLUMNSall Productsof the Firm

Productbrand relationship (prortfolio strategy)

1 2 3 4

A

B

C

Products

Brands


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Brand Strategies1. (a) Brand-product matrix

graphical

representation of all products sold by the firm

Brand l ineparticular brand name under whichproducts are sold Brand line is one row of the matrix (brand extensions)

Brand line may be composed of either a single brandor a family brand that has been line extendedNestle, Maggie

Brand m ix

all brand lines that a firm sells


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Brand Strategies2 strategic tools1. (a) Brand-product matrix graphical

representation of all products sold by the firm

Product l ines - group of products within acategory, that are closely related because theyfunction in a similar manner, are sold to thesame customer group, marketed through thesame type of outlets and fall within the same

price range Produc t mix all product lines and items that a firm

sells


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Designing and

Implementing Brand Strategies2 strategic tools - Brand-product matrix

Brand Port fo l io consist of all brands and

brand lines that the Firm offers for sale

(occupies the columns of matrix) Brand por t fo l io strategy is judged on

Its ability to collectively maximize BE, and

Not decrease the equity of other brands


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Designing and


2 strategic tools

(b) Branding strategyreflects the number and nature

of different products linked to the brand and sold by

the firm It is characterized by - product brand

relationships, and extension strategy

Breadth - product mix and

Depth - number of brands in a product category Strategic decisions about breadth and depth of

Product mix are - How many product lines should the company carry?

How many variants should be offered in each product line?


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Designing and


Brand ing Strategy

Breadthof product mix considersproduct attractiveness on the basis of - 3 factors that affect category attractiveness

1. Aggregate market factors attractiveness of market - large,fast growing, growth stage of its product lifecycle, non cyclical,non seasonal, yields high profit margins

2. Category factorsstructural factors affecting the categorylow threat of new entrants, bargaining power of suppliers, andtrade, current category rivalry, few product substitutes, market

operating at near capacity3. Environmental factorstechnological, economic, regulatory,

social factors that affect the category

Also consider Firms capabilities and abilities, strategic objectives and goals

Name chosen for these products - depends on branding

strategy


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Designing and


Brand ing Strategy

Depth of a Branding Strategy number andnature of different brands marketed in a

product class - Multiple brands strategy - in the same category are

used for

Market coveragetargeting multiple marketsegments (different price, distribution, geographicboundaries etc.) P&G


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Designing and


Depth of Branding strategy

Optimal brand portfoliois a trade off between

market coverage, costs and profitability

A brand should be clearly differentiated, and

appealing to a sizeable enough market segment

to justify its production and marketing costs

Distinct positioning and segmentation for each brand must

maximize market coverage (no customers are ignored) but

minimize brand overlap

Portfolio is too big if the profits can be increased by

dropping a brand


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Designing and

Implementing Brand StrategiesBrand ing Strategy

Determining Depth of product mix

Optimal product lineis based on Ability to address consumer needs by each item in the

product line Ability to withstand competition

Percentage of sales and profits contributed

If line is too long if profits can be added by droppingan item, or too short if it can be done by adding an

item Branding perspectivelonger product lines may

decrease consistency of brand image if thesame brand is used

Branding strategy must determine which brand

elements should be used for which products


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Designing and Implementing Brand

Strategies

Depth of Branding strategy

- Portfolio Roles - brands play as part in theportfolio

1. Flanker brands -protect a flagship brand2. Cash cow - milked for profits

3. Entry level product - attracts new customers to thebrand franchise

4. High end prestige product -adds prestige andcredibility for the entire portfolio


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Strategies

Portfolio RolesFlankers(fighter brand) discount brands

introduced to compete with store brands

It creates strong POPs so that more importantbrands can retain their desired positioning

Flanker brands should not be too attractive andtake away the sales of their higher priced brands

They should not be connected to the betterbrands as they will reflect poorly on these otherbrands


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Strategies

Portfolio Roles

Cash Cow some brands are retained (despite

dwindling sales) as they continue to generate

sales with virtually no marketing support

The existing brand equity is milkedGillette's

Trac II, Atra, Sensor


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Strategies

Portfolio Roles

Low end Entry Level brand and High end

Prest ige brands

End points of the line extensions play animportant role Relatively low-priced brandin the brand portfolio is to

attract customers to the brand franchise

Retailers use these as traffic builders with a view to

trade up customers Relatively high priced brand in the brand family is to

add prestige and credibility to the entire portfolio evenif it is not the most profitable


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Strategies

Other roles brands play -1. Attract a segment currently not covered

2. Attract customers seeking variety who may otherwise

have switched to another brand3. Increase shelf presence and retail dependence in the

store

4. Yield economies of scale in advtg., sales,merchandising, distribution

5. Increase internal competition within the firm


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Designing and


Depth of a Brand ing StrategySummary

Different roles that brands play in the brand portfolio are

based on considerations related to the consumer,

competition, and the company

Expand market coverage Provide protection

Extend an image

And fulfill other roles

Portfolio decisions basic criteria - Each brand name product

must have

1. A well defined Portfolio role for brands

2. A well defined Positioning as to what benefits it offers

customers encapsulated in the associations

- Maximize coverage, minimize overlap, optimize portfolio


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Strategies2. Brand hierarchy graphically displays the

branding strategy The number and nature of common and distinctive

brand elements across the firms products

It reveals the explicit ordering of brand elements Captures the relationship between the different products

Represents how different products are nested with otherproducts of different brand elements at lower levels

It graphically portrays the firms branding strategy (brand trees)

Typically there are more entries at each successive level of thehierarchy


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Brand Hierarchy Levels

The Jean Noel Kapferer Model A brand hierarchy can involve multiple levels:

Corporate Brand

Family Brand

Individual Brand

Individual Item or Model (Modifier)

(Range brand / umbrella brand)


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Strategies

There are 2 strategic tools

2. Brand hierarchy

Corporate or company brand -

For legal reasons present on label and packaging

Used differently for strategic reasons -

As the only brand - Sony

Combine the family brand name (individual brand) withthe corporate name (Sony Bravia)

It might be virtually invisible and receives no attention in

the marketing program


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Strategies


2. Brand hierarchy

Family brand used in more than one

product category (but not the name of the

company) Maggie

Most firms support only a few Family Brands

Corporate brand functions as a Family brandwhen it is used for a range of products.

The 2 levels collapse into 1 for those products


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Strategies


2. Brand hierarchy

Individual brand restricted to only one

category, although it may be used for

many product types within the category

(variants) - Park Avenue

Modifier- means of designating a specificitem or model type, or version - Ultra

Product descriptor explains what the

product is and does


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Brand Portfolio Structure cont.

Brand structure can be captured by hierarchy trees

Toyota

Corolla-VE

-CE

-LE

Camry-CE

-LE

-VE

Avalon-Platinum

-Edition

-XL

-XLS

Celica-Liftback

-Convertible

Camry Sedan-SE

-SLE V6

Lexus

-LS

-400

-GS

-300

-400

-ES

-300

-SC

-300

-400


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Building Equity for Hierarchy Levelsand Knowledge Structures


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Building Equity for Hierarchy Levels

and Knowledge Structures

Corporate / Company brand level

Corporate image dimensions

Important when it plays a prominent role in the

branding strategy Corporate image - depends on a number of factors

Products it makes

Actions it takes

Manner in which it communicates

Doing the right thing everyday

Firms role in society and its reputation (with respect to

employees, neighbor, stakeholders) builds credibility.


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and Knowledge StructuresCorporate brand level Brand Equity - is the

differential response by consumers, employees,

other firms, and others to the Firms activities

Corporate BE occurs - when relevant constituentshold relevant, strong, favorable associations about

the brand in memory They respond more favorably to a corporate ad campaign,

corporate branded products, and PR releases, than if the same

was attributed to another company

It is distinct from Product Brands as it encompasses a

much wider range of associations which impacts

individual products of the firm


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and Knowledge StructuresCorporate Image Dimensions

affect BE

Type of associations at the Company Brand levelaffect BE - Common product attributes, benefits, attitudes

Intangible attributes

High quality image association

Innovative image associations

People and Relationships Customer focused corporate image associations

Values and programs

Corporate credibility Corporate expertise

Corporate trustworthiness

Corporate likeability


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Common produc t att r ibutes, benef i ts ,

att i tudes performance associations,

judgment and feelings association,type ofuser, use occasions, etc.

Intangible attributes- abstract benefits or attitudes

are the strongest associations fun, high quality

standards, leader Product related corporate image- 2 dimensions

are important

1. High quality corporate image association

2. Innovative corporate image associations


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Common

product attributes, benefits, attitudes

2 specific product related dimensions are -1.

High quality corporate image association Create a perception that Products are of the highest

quality (one of the most important decision factors) Rated by various sources

2. Innovative corporate image associations

Modern, up-to-date, investing in R&D, advancedmanufacturing facility, introducing new productfeatures

Unique marketing programs with respect to productintroduction and improvements


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Peop le and

re lat ionships

Reflects characteristics of employees (a naturalpositioning strategy for services) as they directly or

indirectly impact the product / services offered Retail stores derive BE from employees -

Customer focused corporate image associations perception that company is responsive, and caring,listening to customers - King Fisher Airline

Reflected through out the marketing program andcommunicated through advertising


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and Knowledge StructuresCorporate Image DimensionsValues and

Programs

Reflected without directly relating to products

Corporate image campaigns about the philosophy,and actions of the company with respect to

organizational, social, political, and economic

issues

Socially conscious image and environment friendlyimage

Targeting consumers, employees, others


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Corpo rate credib i l i ty reputation acquired through designsand delivery of products and services

Consumers form abstract feelings and judgments

about the company Personality of the corporate brand Success and leadership

Credibility is dependent on 3 factors - Corporate expertiseextent to which it can competently

make and sell products or conduct its services

Corporate trustworthinessextent to which it is seen ashonest, dependable, and sensitive to consumer needs

Corporate likeabilityseen as likeable, attractive, prestigious,dynamic


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Corpo rate credib i l i ty advantages

Company will be treated favorably by govt, legal

bodies Can attract better quality employees

Helps existing employees become more

productive and loyal

Helps survive a brand crisis and avoid public

outrage (buffers corporate trouble)


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Corporate Brand building and managing it Firms must have a high public profile especially to shape

more abstract associations

MD, CEO must maintain a more public profile to help

communicate news and information and a be symbol of the

current marketing activity

Firm will also be up for more public scrutiny - has to be

transparent in terms of its values activities and programs

Strong Corporate Brands (if built and nurtured) offer a host of

potential marketing advantages


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and Knowledge StructuresSummary

Many types of associations become linked to thecorporate brand image that transcend physicalproduct characteristics

These intangible associations are valuablesources of BE and provide POPs and PODs

Companies have a number of means of creatingthese associations

In doing so the companies must talk the talk andwalk the talk with customerscommunicatingand backing up claims with concrete programsthat they can understand and experience

B ildi E i f Hi h L l


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Family brand level (Range or Umbrella Brands)

applied across a range of product categories

Company level associations are less salient

Family brands are used for several reasons - When products become dissimilar, it is difficult to use the

Company brand and still retain its meaningTitan and

Fast Track

Family brands evoke a specific set of associations across

groups of related products

These associations may relate to -

Common product attributes, benefits attitudes,

To a lesser extent to people, relationships, values, and

corporate credibility


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and Knowledge StructuresFamily brand level

(Range Brands or Umbrella Brands)

Family brands are an efficient means to link commonassociations to many but distinct products

Cost of introducing related new products is lower

Likelihood of acceptance is higher Products linked must be considered carefully so that

associations of the family brand do not become weakerand less favorable

Failure in one product has ramifications on otherproducts in the family because of common identification

These consideration determine whether aBranded Houseor a House of Brandsis a more appropriate strategy


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and Knowledge StructuresIndividual brand level

restricted to 1 product

category (there may be many product types)

Different models, package size, flavors, forms

Advantagebrand and supporting activities arecustomized to meet the needs of a specific customergroup and designed for them

The name, logo and other branding elements

Product design,

IMC programs,

pricing and distribution

If the brand fails, the risk to other brands / company is minimized

Disadvantageof creating individual brands - Difficulty, complexity and expensive to developing separate

marketing programs to build sufficient levels of BE


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and Knowledge StructuresModifier level

used with Corporate or Family or

Individual brand to further distinguish the type ofitems / models involved

Signifies refinements or differences in brand related

factorsquality, attributes, functions, Makes products more understandable, and relevant to

the customer / trade

Plays an important organizing role in communicating

That different products within a category may share the same brandname, but differ on one or more attribute / benefit

Plays an important role in market coverage within thecategory


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Product descriptor (is not a brand element)

used with branded product so that consumers

understand what the product is and does, and

helps define the relevant competition for theproduct

A basic product name - useful to facilitate

familiarity and understanding of how it is different

from other similar products when it is difficult todescribe a new product with unusual functions.


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Designing Branding Strategy


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Managing Brand Equity

Managing BE concerns those activities that takea broader and more diverse perspective of abrands equity

Understanding how branding strategies shouldreflect corporate concerns and be adjusted, if atall, over time or over geographical boundaries ormarket segments


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Branding Strategies

The branding strategy for a firm reflects thenumber and nature of common or distinctivebrand elements applied to the different

products sold by the firm

Which brand elements can be applied to whichproducts and the nature of new and existing brand

elements to be applied to new products


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Brand Hierarchy Decisions

In creating the hierarchy, it is important todecide:1. The number of levels of the hierarchy to use in

general

2. How brand elements from different levels of thehierarchy are combined, if at all, for any oneparticular product

3. How any one brand element is linked, if at all, tomultiple products

4. Desired brand awareness and image at eachlevel


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Designing the Brand Hierarchy

Decide on

1. Number of levels Principle of simplicity: as few levels as possible

Principle of clarity: Logic and relationship of all brandelements employed must be obvious and transparent.

2. Levels of awareness and types of associations tobe created at each level

Principle of relevance: Create associations that are

relevant across as many individual items as possible Principle of differentiation: Differentiate individual

items and brands


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3. Products to be introduced Principle of growth - depending on ROI invest in

market penetration / expansion vs. productdevelopment

Principle of survival -brand extensions mustachieve brand equity in the categories

Principle of synergy - brand extensions shouldenhance the equity of the parent brand


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4. How to link brands from different levels for aproduct

Principle of prominence: The relative prominence ofbrand elements affects perceptions of product distanceand the type of image created for new products

5. How to link a brand across products

Principle of commonality: The more commonelements shared by products, the stronger the linkages


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Adjustments to Marketing Strategy

Multiple levels of branding strategy

Different levels of awareness and image

Sub-brand strategy- marketing communications at the

corporate / family brand level to complement individualbrands

2 marketing communication strategies

1. Corporate image campaign (also works at Family level)

2.

Brand line campaigns


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1. Corporate image campaign to create

associations for the corporate brand to - Build awareness of company and nature of business

Create favorable attitude and perceptions about

company credibility

Link beliefs that can be leveraged about productspecificmarketing

Make favorable impression on the financial community

Motivate present employees and attract better recruits

Influence public opinion on issues


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1. Corporate image campaign

To build CBBE 3 objectives are critical1. Build awareness of company and nature of business

2. Build trust worthiness and credibility

3. Create corporate image associations (beliefs) that can be

leveraged by productspecific marketing


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Multiple levels of branding strategy2 marketing communication strategies

2. Brand l ine campaign to emphasize the breadth

of products associated with the brand

It refers to the range of products associated with abrand line

Brand line ads shows uses and benefits of various

products

To builds awareness Clarify meaning

Suggests additional use applications

Umbrella ads (that encompass also serve brands) used

in conjunction serve a purpose

Managing Brand Portfolios


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Managing Brand Portfolios

Multiple brands are often employed in a category

for market coverage Target different market segments

Basic principle of brand portfolios

Maximize coverage Minimize overlap

Basic economics guideline ... A portfolio is too big if profits can be increased by

dropping brands. A portfolio is not big enough if profits can be increased

by adding brands


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48990227 Strategic Brand Management Keller 11 Branding Startegies 0011

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Transcript of 48990227 Strategic Brand Management Keller 11 Branding Startegies 0011