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Branding Strategies

• The branding strategy for a firm reflects the number and nature of common or distinctive brand elements applied to the different products sold by the firm

– Which brand elements can be applied to which products and the nature of new and existing brand elements to be applied to new products

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Brand Hierarchy Levels

Corporate Brand

Family Brand

Individual Brand

Individual Item or Model (Modifier)

– A brand hierarchy can involve multiple levels:

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Brand Hierarchy Decisions• In creating the hierarchy, it is

important to decide:– The number of levels of the hierarchy to

use in general– How brand elements from different levels

of the hierarchy are combined, if at all, for any one particular product

– How any one brand element is linked, if at all, to multiple products

– Desired brand awareness and image at each level

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Designing the Brand Hierarchy

– Decide on the number of levels•Principle of simplicity: Employ as few levels

as possible•Principle of clarity: Logic and relationship of

all brand elements employed must be obvious and transparent.

– Decide on the levels of awareness and types of associations to be created at each level•Principle of relevance: Create global

associations that are relevant across as many individual items as possible

•Principle of differentiation: Differentiate individual items and brands

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Designing the Brand Hierarchy

– Decide on how to link brands from different levels for a product•Principle of prominence: The relative

prominence of brand elements affects perceptions of product distance and the type of image created for new products

– Decide on how to link a brand across products•Principle of commonality: The more

common elements shared by products, the stronger the linkages

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• 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

Managing Brand Portfolios

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Brand Consolidation & Focus

• Number of factors are driving this trend– Movement from transactions to

relationships with consumers– Value of strong “power” brands– Difficulty of brand management

• Cost• Need for efficiencies

– Importance of “top-down” brand management

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Brand Architecture Obj.

• Create effective powerful brands

• Allocate brand-building resources

• Create Synergy

• Achieve clarity of product offering

• Leverage brand equity

• Provide a platform for future growth

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Elements of Brand Architecture

Brand Portfolio

Portfolio Roles

Brand market context roles

Brand portfolio structure

Portfolio Graphics

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Brand Architecture

Brand Portfolio

Brand-Market Context Roles

•Endorser/Subbrands•Benefit brands•Co-brands•Driver roles

Portfolio Roles

•Strategic brands•Linchpin brands•Silver bullets•Cash cow brands

Brand Portfolio Structure•Brand Groupings•Brand hierarchy trees•Brand range

Portfolio Graphics•Logo•Visual presentation

Powerful brands

Optimal allocation of brand building

resources

Synergy in creating: visibility, efficiency

Clarity of offering

Leveraged brand assets

Platforms for future

growth options

Includes all the brands & subbrands attached to product-market offerings, including co-brands with other firms.

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The Boston Consulting Group’s Growth-Share Matrix

20%-20%-18%-18%-16%-16%-14%-14%-12%-12%-10%-10%- 8%-8%- 6%-6%- 4%-4%- 2%-2%- 00M

arke

t G

row

th R

ate

?Question marks

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Cash cow

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Dogs

10x 4x 2x 1.5x 1x 10x 4x 2x 1.5x 1x

Relative Market Share.5x .4x .3x .2x .1x .5x .4x .3x .2x .1x

Stars

(Strategic Brand) (Linchpin Brand)

(Silver Bullet)

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Product-Market Context Roles• Endorser & Subbrand Roles – A master brand is the primary

indicator of the offering, the point of reference- Nescafe sunrise and Wipro.

• Benefit Brands – The benefit brand is a branded feature.– Examples: Gillete Razor- sensor- shows time to replace the razor

Oral-B toothbrushes – PowerTip Bristles

• Co-Brands – Occurs when brands from different organizations combine to create an offering in which each plays a driver role.– Examples: Zeiss and Nokia/Sony

Driver Role- It represents the extent to which a brand drives the purchase decision and defines the use experience- Fair ever

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Brand Portfolio Structure • Brand Grouping: Grouping of brands that have a

meaningful characteristics in common – Segment: Men or women- Lee– Product: Health care and Feminine care– Design: classic or contemporary

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Brand Portfolio

Denims Formal wear Women’s wear

Wrangler

Lee

Newport

Ruf n Tuf

Flying Machine

Casual wear

Wrangler

Lee

Newport

Ruf n Tuf

Flying Machine

THF

THF

Arrow

Excaliber

Bay Island

Bay Island

Wrangler

Lee

Flying Machine

THF

ARVIND BRANDS LTD.

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Brand Portfolio Structure • Brand Hierarchy Trees: Brand family

Colgate Toothpaste

Colgate Mouth rinse

Colgate

Classic

DiamondHeads

The wild ones

Colgate Toothbrush

Colgate Dental Floss

Plus Precision

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Brand Portfolio Structure

• Brand Range:

Extent to which the brand has to be stretched across markets and products

Eg. Dettol- Hygiene and protection against germs

Denim

Horlicks

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Portfolio Graphics • Visual representations across brands and

contexts:– Logo – Packages – Symbols– Product design

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Horizontal Extension

FITADDEDVALUE

ENHANCEDBRANDEQUITY

•Customers must be comfortable with the brand in the new setting.

•Bases: product associates, ingredient, attribute, application, user imagery, expertise, designer image.

•The brand name alone should help customers articulate why the offering is superior to other brands.

•The brand equity should be enhanced by the brand’s presence the brand’s presence in another context -- not only from increased visibility but also from the associations generated.

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Vertical Extension

To participate in a large & growing value market

Product vitality & margins A vertical stretch is particularly tricky because perceived quality is involved and also because the use of sub brands & endorsed brands needs to be considered.

Risk to brand’s reputation & customer base

Cannibalization

Lack of credibility

Competitor price wars

ADVANTAGES DISADVANTAGES

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Five Dimensions

Dimension Action Item

Brand Portfolio Inventory existing brands and subbrands.

Portfolio RolesIdentify brands playing strategic roles (cash-cow, etc.)

Product-Market Context RolesLook at use of endorsers and subbrands, branded benefits, co-brands, and driver brands

Brand Portfolio Structure Create brand grouping or hierarchy tree.

Portfolio GraphicsLay out a sample of the way that the brands are presented visually.

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