Brand startegies ppt

+

Lesson # 8

BRAND STRATEGIES

Subject:

BRAND BUILDING

Faculty Name:

Vishal Desai

Deviprasad Goenka Management College of Media Studies (dgmcms.org.in)

Batch

(BMM class of 2015)

Year (TY)

India’s premier M-school


+TYPES OF BRANDING

STRATEGY:Product Branding/Multi-Brand strategy:

In multi-branding strategy the brand is:

• Promoted exclusively so that it acquires its own identity and image

and stand on its own

• Allowed to acquire differentiation and exclusivity

• Targeted accurately to a distinct target market or customers because

its positioning can be precise and unambiguous


P&G

Ariel Tide VicksPanteneHead &

ShoulderCamay Whisper Old Spice

Detergent Detergent ShampooShampoo Soap Sanitary

Napkin

Balm After Shave

High-Tech

Detergent

Whiteness

no other

can deliver

Healthy&

shiny hair

Dandruff

shampoo

with micro

ZPTO

Cream

soap

Hygienic

protection

Clear

blocked

nose

Sign of

manliness

BR

AN

DM

AR

KE

TP

OS

ITIO

N


+ As is evident from the figure P&G has been follower of the multi-

brand strategy

A mega company like HUL also has been an adherent of multi

branding

For example:

• HUL’s Soap category

• In terms of positioning

• Lux – beauty soap of filmstars

• Lifebuoy – soap that fight against germ and promotes health

• Rexona – a gentle soap with natural oils to have a good effect on skin

• Liril – freshness soap

• Same applies to HUL’s detergent and shampoo categories


+

1)It creates multiple brand entities which is uniquely positioned and

directed at a particular segment

For example

• HUL’s detergent brand – Surf Excel, Rin and Wheel offer all

possible price points, benefits and utilities linked to different sub-

markets

2)A new product is not likely to send negative feedback and associate

the brand with the burden of failure

Benefits of Product branding:


+3)A company following multi-branding is better positioned to venture

into unrelated product categories

4)Obtaining, greater shelf-space and leaving little for competitor’s

products

5)Saturating a market by filling all price and quality gaps

6)Catering to brand switchers users who like to experiment with

different brands

7)Keeping the firm’s managers on their toes by generating internal

competition

8) Organization who use a multi-brand strategy acquire greater market

share than they could with fewer brands


+

1)Creating individual brands is a costly exercise

2)The new brands do not exploit strength of a company or its existing

brands

Drawbacks of Product branding:


+

Line in the context of product mix refers to various product lines that

a firm may have in its total portfolio

For example:

• Philips – line extension has T.V, video and audio, personal care,

communication and household appliances

The brand appeals to distinct market segments who appreciate and

like the brand

Now the customers do not tend to be contended with one product

which the brand offers

Line extension is generally followed for complimentary products.

Line Branding:


+ Consumers want complimentary products which go hand in hand with

the brand concept or application.

For example:

• L’Oreal user wants the brand to offer all contemporary products

which enhance beauty – body lotion, deep pore cleansing lotion,

lipstick, nail enamels, eye liner,etc

The products in the line draw their identity from the main brand

Marketing products as a line under a common brand improves the

brand’s marketing power rather than selling them as individual brands


L’ Oreal

L’ Oreal Group

LipstickNail

Enamel

Powder

CompactEyeliner Foundation

Products share common

concept, complement

each other


+

Line branding restricts the brand’s expansion into nearby territories of

complementary products, which complement or support the main

product’s usage

All the products share a common promise which stems from the

firm’s or range brand’s area of competence

The product are tied together by a single brand concept

For example:

• Nestle uses its Maggi brand for its range of fast food – Maggi

noodles, sauces, soups, pastas,etc

Range Branding / Mixed Branding:


Himalaya Drug Co.

Ayurvedic Concepts

Health Care Body Care Hair Care

Skin Care

Area of

Competence

Or expertise

Ayur Slim Capsules

Daily health Capsules

Digestive Capsules

Cough Syrup

Antiseptic Cream

Pain Balm

Muscle and Joint Rub

Cleanser

Anti- Dandruff

Cleanser

Hair Conditioner

Hair Vitaliser

Lotions, Face Wash,

Creams


+

1)It helps in the formation of brand equity

2)The brand can easily embrace other new products which are

consistent with the brand, reducing the cost of introducing new brand

in the market

Benefits of Range Brand Strategy / Mixed Branding:


+

1)The brand can become weak due to overstretching if the brand tends

to hang large number of products on it

Limitations of Range Brand Strategy / Mixed Branding:


+

Umbrella branding has been particularly favored by the companies of

the East

For example:

• Korean giant LG uses its name on the product like microwaves,

refrigerators, computers, television, air conditioners

• Philips, GE and Canon also follow umbrella branding

• Indian business houses – TATA and Bajaj

Umbrella Branding Strategy:


PHILIPS

Television

Lighting

Monitors

Shaver

Phones

Irons

Mixers

Hi-fi Music

system

Medical

equipment


+

1)Umbrella branding is an economical strategy as investing in a single

brand is less costly than trying to build a number of brands

2)Using an umbrella brand to enter into new markets allows

considerable saving

For example:

• TATA making a foray into the automobile car market

3)Umbrella branding may even make sense in the current marketing

environment characterized by information overload and brand

proliferation

Benefits of Umbrella Branding / Multi – Product

Branding Strategy:


+

1) It is not a consumer consistent strategy

2)With time, market fragments and gets divided into smaller sub-

segments

3) Each segment presents its own unique structure of needs and buyer

preferences

4) A specialist brand may be needed for precise targeting of a

particular segment

Drawbacks of Umbrella Branding / Multi – Product

Branding Strategy:


+3)A failure in one product category may influence other products/brands

because of shared identity

For example:

• If Samsung refrigerators are discovered to be faulty, the message

about its defect would travel to other quarters, impacting the

brand’s performances in categories like air conditioners, TV and

monitors.

4)Umbrella branding is difficult to stretch vertically

For example:

• Maruti Suzuki’s attempt to go to the upper segment with its

‘Baleno’ range did not yield good results


+

Source brand strategy combines the firm’s name with the product

brand name

It is hybrid of umbrella brand and product brand strategy

The product is given a brand name and it is combined with the name

of the firm

For example:

• Pulsar – name of the bike

Bajaj – the company name behind it

Both the name enjoys equal importance and are given equal

status in the brand’s communication

Source / Double branding:


Maruti Suzuki

Maruti

Alto

Maruti

Zen

Maruti

Wagon-R

Maruti

Celerio

Maruti

Ertiga

Maruti

Ritz

Maruti

Stingray


+

1)The firm’s name brings its equity to the product

For example:

• When Bajaj name is added to a new brand, immediately Bajaj’s

repertoire of associations are transferred onto the product

2)The second name provides an opportunity to add something unique to

the brands by customization or personalization

Benefits of Source Branding:


+

1)The company image becomes the limiting factor in this branding

approach

2) When the product categories are different, double branding may not

be the correct strategy

Drawbacks of Source Branding:


+

Endorsement brand strategy is modified version of double branding

It makes the product brand name more significant and the corporate

brand name is relegated to a lesser status

The umbrella brand is made to play an indirect role of passing on

certain common generic associations

It is only mentioned as an endorsement to the product brand

By a large, the brand seeks to stand on its own

Unlike the product brand, endorsement brand discloses the identity of

the maker, making it a small part of the brand

Endorsement Branding:


+ The brand gets the an endorsement that it belongs to specified

company

For example:

• Kit Kat gives a signal that it is a Nestlé’s product

• Cinthol’s communication stresses that it is a Godrej product

• Dairy Milk is Cadbury’s brand


Cadbury’s

Cadbury’s

Eclairs

Cadbury’s

Bournvita

Cadbury’s

Perk

Cadbury’s

Dairy

Cadbury’s

Five star

Cadbury’s

Shots

Cadbury’s

Crackle


+ Endorsement branding strategy allows the brand the freedom to take

an independent direction

Unlike the source brand strategy, in endorsement strategy the firm’s

name sits back as an assurance of quality

Thus, endorsement branding strikes a delicate balance between

umbrella and product branding

The marketers can subtly transfer the corporate brand’s equity and at

the same time enjoy the freedom to the venture beyond immediate

product boundaries

Therefore, while endorsing a product brand, care must be exercised in

finding consistency

Otherwise the endorsement may just be perceived as hollow


+ For example:

• Nestle burnt its fingers when it launched Mithai Magic

The product failed as it did not go down well with the Nestle

endorsement


+

Products marketed by retailers and other members of the distribution

chain

Private labels can be called store brands when they actually adopt the

name of the store itself in some way

For example:

• Stop brand of clothes by Shopper’s Stop

Private Labels / Store branding:


+ Private label brands typically cost less to make and sell than the

national or manufacturer brand with which they have to compete

Thus, the benefit to the consumers of buying private label and store

brands is often cost saving

Whereas, the benefit to retailers selling private label and store brands

is their gross margin which is relatively higher as compared to

national brands


+

Creating power brands

Strong logo design offering that synchronies with the consumer’s

logic and emotions, providing effective differentiation

Creating synergy

Well-developed brand architecture provides the synergy of logo

design, reinforcing associations, which in turn results in cost

efficiencies

For example:

• Gillette uses the common thread of providing “the best a a man

can get” in terms of quality and speed across all product

categories

Brand Architecture Objectives:


+ Providing clarity in product offering

This is necessary to ensure a clear-cut identity among consumers

Leveraging Brand Equity

Make the logo design work harder by increasing the impact

One way is through brand extension

A major function of brand architecture is to provide a strong

framework to deal with brand extension opportunities

Planning future growth

Brand architecture should plan for the brand’s future

It must be the foundation for making strategic advances in the

marketplace


+ The Monolithic Structure

This is employed when a firm uses its corporate brand name on all

products or services

For example:

• Tata, Philips, Samsung, Videocon, Toshiba

The Fixed Endorsed Structure

In this the corporate brand remains all powerful but the product is

also given a name

It is a slight extension of the monolithic structure


+By giving the product a sub-brand, some differentiation is achieved

For example:

• Fiat - Uno, Fiat - Siena, Fiat - Trend, Fiat - Palio

• Maruti Suzuki - Esteem, Maruti Suzuki - Zen, Maruti Suzuki -

Wagon R

The Flexible Endorsed Structure

In this format the corporate brand remains visible but it takes the back

seat

The product brand is given the front seat

The sub-brand is hero to the customers


+It achieves greater autonomy and identity

For example:

• Godrej endorses all its product brands which are most visible and

dominant – Cinthol, Ganga, Fair glow, No.1

• Hamdard – Rooh Afza, Pachnol, Sualin

The Discreet Approach

Here the product becomes a standalone brand

It is given its own due identity and status

The corporate name does not back it up

For example:

• P&G employs this strategy – Pampers, Whisper, Pantene

• ITC – Wills, Gold flake


+ BRAND ROLES IN THE BRAND

PORTFOLIO: In a brand portfolio, each brand should be unique and should result in

maximizing the equity of all the other brands in the portfolio and/or

should not harm the equity of the other brands

Each brand has to be unique and should cater to different segment in

the market

Therefore, while devising a brand portfolio, marketers need to be

careful and come out with brands that maximize the coverage of the

market and minimize the overlap between brands, so that threat of

cannibalization is minimized


+ An organization can launch new brands either to satisfy a particular

need of the target market or to offset competition

This result in brands playing a specific role in the portfolio of brands

of an organization

Brands can play the following roles:-

1) Flankers

2) Cash cows

3) Low-end entry

4) High-end prestige

5) Strategic Brands

6) Silver Bulltets

7) Linchpin Brand

8) Sub-brands


+

A flanker brand is a new brand introduced into the market by a

company that already has established brand in the same product

category

The new brand is designed to compete in the category without

damaging the existing item’s market share

This strategy is also called fighter branding or multi-branding Eg:-

Nirma v/s Wheel, Micromax v/s other mobile brands

Flankers:


+

It allows a company to attract new customers from various market

segments

The main brand of a company’s portfolio should target the market

segment containing the most customers

Another brand can then be positioned to convert users from other

market segments by using different set of benefits or product

characteristics

For example:

• P&G – Tide is an extremely successful laundry detergent

In order to appeal to consumers who desired a lower - cost

detergent , P&G introduced Cheer

Importance of flanker branding


+

Gain more shelf space for the company, which increases retailer

dependence on the company’s brands

Capture “brand switchers” by offering several brands

Protect the company- giving a product its own unique name means it

will not be readily associated with the existing brand. This reduces

risk of damage to the existing brand and/or company if the product

fails

Companies with a high-quality existing product can introduce lower-

quality brands without diluting their higher-quality brand names

Advantages:


+

Some brands may be kept around despite dwindling sale because they

still manage to hold on to a sufficient number of customers and

maintain their profitability with virtually no marketing support

For example:

• Colgate has come out with Colgate Gel, it still sells the Colgate

White toothpaste

Brands with significant customer bases that require less attention than

other brands

The role of cash cow brand is to generate resources that can be

invested in other brand for future growth

Cash Cows:


+

Many brands introduce brand variants in a certain category that vary

in price and quality

These brands leverage associations from other brands while

distinguishing themselves on the basis of their price and quality

The role of a relatively low-priced brand in the brand portfolio often

may be to attract more customers to the brand franchise

For example:

• Volkswagen introduced Polo with an idea of bringing new customers

into its brand franchise with the hope of later moving them up to

higher priced models of automobiles

Lower-end entry and high-end prestige brands:


Cash Cows:Flankers:

Low-end entry: High-End Prestige

For example:

Wheel & Rin (Unilever),

Colgate, Singer sewing

Machine and

Sunlight soap of Unilever

Lucera brand of jewelry from

Gitanjali Group, Wheel for

Unilever, Tata Nano

Nakshatra and D’Damas

jewelry from Gitanjali group,

Surf Excel from Unilever,

Cadbury’s Dairy Milk Silk

For example:

For example: For example:


+

Can be a ‘currently dominant brand also called megabrand, which can

maintain or grow its position, or a small brand that is projected to

become a major one

Thus, a strategic brand represents a meaningful level of profit and

sales in the future

Eg: Pepsi or Thumbs Up

Strategic brand:


+ Linchpin brand

• As the name suggest, is the top brand or the key player

• It provides a source of differentiation and indirectly influences

customer loyalty

For example:

• Dairy Milk is a linchpin brand for Cadbury


+

A silver bullet is a sub-brand or branded benefit that is employed as a

vehicle for changing, or supporting the brand image of a parent brand

Because a silver bullet has a role that extends beyond supporting its

own business, it deserves extra resources allocation in the form of

advertising / or product development

For example:

• Sony Walk-Man – supports innovative miniaturization identity

that is central to Sony

• Vodafone Tuesdays, Airtel Hello Tunes.Mc Donald’s Happy Meal

Silver Bullet:


+ Branded Benefit As Silver Bullet:

• A branded benefit can also play a silver bullet role by supporting the

image of the brand to which it is attached

• Thus it can do more than help communicate a functional benefit


+

Sub brands are brands that are connected to the parent brand and

supplement or modify the parent brand’s association

The parent brand provides the ‘primary frame of reference’ and the

sub-brand provides the attribute association

For example:

• Titan Raga, Tata Sonata,Titan Nebula,etc

Sub Brands:


+ Sub-brands are further graded into the following

Sub-brands as co-driver –

• Where the endorser brand and the sub-brand both play a major role

For example

• Nestle Kit Kat – both Nestle & Kit Kat have strong brand equity

Master brand as drive –

• Here, the parent or Masterbrand primarily drive the success of sub-

brand

For example:

• HP DeskJet printer – where primary driver for the sub-brand, is the

parent brand name HP


+ BRAND LICENSING:

Licensing involves contractual agreement whereby firms can use the

name, logo, character, and so forth of other brands to market their

own brands for some fixed fees

Essentially, a firm is “renting” another brand to contribute to the

brand equity of its own products

Entertainment licensing has been a big business in the recent years

Successful licensors include movie title, logo, comic strip character,

television and cartoon characters

For example:

RaOne, Krissh, Tom & Jerry, Chotta Bheem,

Angry Birds


+

Worldwide is estimated at $187billion but in India it is still at nascent

stage

The emergence of organized retail in India has set the pace for new

collaborations between Licensors and Indian business houses

Licensing of brands, designs, characters and celebrities is now

becoming popular in India – used as jewellery, apparel, lifestyle

accessories, toy, gifts, games etc

Merchandise Licensing industry


+

Allow entry into new categories and businesses in which the company

may not have core competency

Provides broader retail presence

Generates new, ongoing revenue streams at minimal increment cost

Protects the trademark through registrations and actual use

Benefits of Licensing For Brand Owners:


+

Ease of entry into new product categories or price range

Alternative to significant investments in brand building

Better bargaining power with retailers

Build competitive advantage

Benefits of Licensing For Brand Licensees:


+

One danger in licensing is that manufacturers can get caught up in

licensing a brand that might be popular at the moment but is really

only a fad and produces short lived sales

Disadvantage


+

One of the fastest growing segments of the licensing industry

Is the licensing of company name, logo, or brand for use on various,

often unrelated products

In licensing their corporate trademark, firm may have different

motivation, including generating extra revenue and exposure, or

enhancing their brand image

However, the risk is that the product will not live up to the reputation

established by the brand

Inappropriate licensing can potentially dilute brand meaning with

consumers and marketing focus within the organization

Eg: Maruti Suzuki,Hero Honda,Parker Pens by Luxor

Corporate trademark licensing:


+

CHOOSING A BRAND STRATEGY: The six strategies discussed above can be labeled as generic strategies

of branding

Each one is driven by its own internal structure and logic

The benefits and constrain flow accordingly

One cannot make a blanket judgment about any strategy being the

best

Each strategy comes with its own pros and cons

Therefore, the branding strategy decision cannot be automatic

It must be preceded by a systematic analysis of a brand’s strategic

challenges and a firm’s strengths and weaknesses


+ Firms can adopt multiple branding strategies depending upon their

requirements

For example:

• Nestle – adopts, by and large , an endorsement brand strategy for

all its products

• Within the endorsement framework, Maggi takes as an umbrella

brand role for its range of products

It is hard to generalize as to which brand strategy is appropriate

But the choice of the strategy needs to be used on a thorough

understanding of what each of the branding strategy stands for and

what are its intentions


+

1)Market Size

• When market size is smaller and is not growing, achieving critical

mass is difficult

• In such situations a branding strategy which takes assistance from an

established name may be more desirable

2)Competition

• Implies how fiercely the market is contested

• Brands need to shift from generality to specialty

• Specific customer benefits or personality focus needs to be achieved

Factors for Selecting Branding Strategy:


+• Accordingly, branding strategies which are tilted in favor of

individual brand’s identity creation may be more appropriate

3) Resources

• Product branding is definitely not an option for a resource starved

firm

• Product branding firms like P&G, HUL, etc have deep pockets

• They have resources to create and support product brands

• While the firms in Eastern side of the globe heavily banked upon

umbrella branding. These firms, instead created a common equity

pool to be used and exploited by products in their portfolio


+4) Product Newness:

• Today’s market environment is characterized by brand proliferation

• When a marketer wants to add a new product which is characterized

by its own uniqueness in terms of benefits or attributes, using

common brand name is not desirable

• The appropriate branding strategy under these circumstances is not to

follow umbrella branding, but to mow towards product branding

which concentrates on differentiations

• Brands can evoke a mid-route by combining company name with

product name to avoid confusion and establish clarity of image


+ 5) Technology / Innovations:

• Product innovation sometimes embody new technology

• Innovation brings uncertainty, both for the firm and the customers

• Firms marketing innovation have to attend to two tasks:

1)To insulate brand equity in case the innovation fails

2)To communicate its innovativeness

Eg: Kent RO Water Purifier.

Kent Ozone Veg & Fruit Purifier


+6)Nature of the product:

• A brand name could be based on functional or attribute of the brand

• The functional brands are rigidly defined by their functions /

attributes. Eg: Ezzee conditioner for woolen clothes

• This limits their ability to be globally extended to categories placed at

a distance from their core

• However, some brands allow greater scope for umbrella or source

branding Eg: Kingfisher and Godrej. v/s Unilever and P&G

• Product category also has to be considered for branding strategy Eg:

Tea cannot be given brand name like Wheel Tea or Cinthol Tea


+7)Customer Sophistication:

• In different geographic markets, customer sophistication with respect

to product class may vary

• Sophisticated customers who appreciate differences among the

product within a class are not be dealt with umbrella branding

• The differentiation must be accounted for by the branding strategy

• Greater customer sophistication makes umbrella branding an

inappropriate option

• The branding strategy must focus on category differentiation as it

exists in customer’s mind


+ BRAND HIERARCHY:

“A brand hierarchy is a means of summarizing the brand strategy

by displaying the number and nature of common distinctive brand

elements across the firm’s product’s, revealing the explicit ordering

of brand element”


Company brand

Family Brand

Individual Brand

Modifier

The corporate or the parent

brand of the organization

(General Motors)

A portfolio of products under

one brand, generally within one

product category ( Chevrolet)

A specific product in that line or

a sub-brand (Beat)

An individual and unique item

or a special class (GLX)

Different levels of the hierarchy of General Motors


+ Kapferer Branding system is developed by one of the Europe’s

leading branding expert Jean-Noel-Kapferer

This hierarchy involves moving from top level to the bottom level

introducing more brands at each succeeding level which may be

easily represented as follows:

1)Corporate (or company) brand (GM)

2)Family Brand (Chevrolet)

3)Individual Brand (Optra)

4)Modifier (GLX)

The highest level of hierarchy always involves one brand – the

corporate or company brand


+ Some brands highlight their parent company’s name in a subtle

manner.

For example:

• P&G owns Vicks, Whisper, Ariel etc – but does not uses its

corporate name in any of its line business

Some other firms combine their corporate brand name with family

brands or individual brands

For example:

• Reliance – Reliance Communications, Reliance Energy etc


+ Finally, in some other cases, the company’s name is virtually invisible

and, although technically part of the hierarchy, receives virtually no

attention in the marketing program

For example:

• Big Cinemas – a division of Reliance Media Works Ltd

At the next lower level, a family brand is defined as brand that is used

in more than one product category but it is not necessarily the name

of the company or the corporation itself

For example:

Kissan Jams, Sauces, Fruit Crushes, etc


+ An individual brand is defined as a brand that has been restricted to

essentially one product category, although, it may be used for several

different product types within the category

For example:

• Haldiram’s - Namkeen, Chips, Bhujia Sev, etc

A modifier is a means to designate a specific item or model type or

particular version or configuration of the product

For example:

• Lay’s – regular and baked chips

• Amul – ‘Pasteurized Unsalted’, ‘regular’, and ‘Lite’ versions of

butter

Different level of the hierarchy may receive different emphasis in

developing a branding strategy


+ BRAND PRODUCT MATRIX:

Product Mix

Brands 1 2 3 4

A

B

C

D

Brand Portfolio/Product Line

Brand Line

Product Assortment


+ Brand Line:

1 Row of the matrix (original + Extensions)

Brand Portfolio /Product Line

1 Column of the matrix ( set of all brands in a product category)

Product Assortment:

Entire Matrix


Product Mix

ShampooDetergent Soaps

Product Breadth/Width

(No. of product lines)

Product Line Length

No. of products in product line

Average Depth

= Total Variants/

Total Brands

Product Assortment

Brand-Product Matrix


Detergents Soaps Hair Care Food Beverage

es / Ice

Creams

Oral Care Skin

Care

Wheel Liril Clinic Plus Kissan Taj

Mahal

Tea

Close-up Ponds

Rin Breeze Sunsilk Knorr Taaza Pepsodent Fair &

Lovely

Surf Excel Rexona Dove Annapurna Lipton

Comfort Lux All Clear Bru

Vim Pears Tresemme Kwality

Walls

Cif Ponds

Sunlight Lifebuoy

Dove

Hamam

HUL


+ A brand-product matrix helps to highlight the range of products and

brands sold by a firm

To characterize the product and branding strategy of a firm one useful

tool is the brand –product matrix

A graphical representation of all the brands and products sold by the

firm

It helps identify Gap Areas which can be entered by launching new

brands/products.


+Corporate Branding

Aaker defines a corporate brand as a brand that represents an

organization and reflects its heritage, values, culture, people and

strategy.


+Difference between Corporate and Product Brand

Shift in focus from product branding to corporate branding

Organizational culture and health comes to fore

From customer focus to stakeholder focus

Branding responsibility shifts from brand management team to

corporate communications team

Product brands live in the present where as corporate brands live in

the past, present and future

Brand startegies ppt

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