DESIGNING AND IMPLEMENTING BRANDING STRATEGIES

-Prepared by: Mehta Daval Sangtani Priya

BRAND ARCHITECTURE

Brand names, logos, symbols to apply to which new or existing products.

Clarify Brand Awareness

Motivate brand Images

Branding Strategies

THE ROLE OF BRAND ARCHITECTURE

Clarify: brand awareness

Improve

consumer understanding and communicate similarity and differences between individual products
transfer of equity to/from the brand to individual products to improve trial and repeat purchase

Motivate: brand image

Maximize

THE BRAND- PRODUCT MATRIX

A graphical representation of all the brands and products sold. Products 1 2 3 A Brands B C

THE BRAND- PRODUCT MATRIX

Rows: Brand Extension Strategy (brand lineall products sold under one brand) Columns: Brand Portfolio Strategy (set of all brands , a firm sells)

KEY CONCEPTS
Brand - product relationship Brand line Product - brand relationship The brand portfolio Product line Product mix Brand mix

BRAND - PRODUCT RELATIONSHIP

Brand Extension Strategy is in terms of the number and nature of products sold under the firms different brands

BRAND LINE

Consists of all the products original as well as line and category extensions-sold under a particular brand

PRODUCT - BRAND RELATIONSHIP

Brand Portfolio Strategy set of all brands , brand lines that a firm sells

PRODUCT LINE
Group of products within a product category Closely related Function in similar manner Sold to same customer groups Marketed through same type of outlets Fall within given price range Includes different brands or a single family brand or individual brand

PRODUCT MIX
Another name: product assortment Set of all product lines and items that a particular seller makes available

BRAND MIX
Also known as brand assortment Set of all the brand lines that a seller makes available to buyers

CATEGORIZATION OF BRAND STRATEGIES

Breadth of branding strategy

Firms Branding Strategy

Depth of branding strategy

BREADTH OF BRANDING STRATEGY

Refers to the number and nature of different products linked to the brands sold by the firm.

Factors affecting product attractiveness are as follows:

BREADTH OF BRANDING STRATEGY

Aggregate market Factors
Category Factors Environmental Factors
Market size, Market growth Stages in PLC, Sales cyclicity, seasonality, Profits Threat of new entrant, Bargaining power of buyers and suppliers, Differentiation, Rivalry, substitutes and category capacity

Technological, political, economic, Regulatory and social

DEPTH OF PRODUCT MIX

Choose the optimal line product line strategy Product analysis requires:

Understanding the market Cost interdependencies between products

Examining the percentage of sales and profits contributed by each item in the product line Product line is too short: manager can increase long term profits by adding items Deciding to increase the length of the product line by adding new variants or items typically expands market coverage and therefore market share but also increases costs

DEPTH OF BRANDING STRATEGY

The number and nature of different brands marketed in the product class sold by a firm. Market coverage

E.g.: General Motors, Procter & Gamble

MAIN REASON FOR MULTI BRANDING

To pursue different price segments Different Channels of distribution Geographical boundaries No one brand is viewed equally favourable by different market segments Increase the shelf presence Attract consumers seeking variety Economies of scale in advertising, sales, merchandising and physical distribution Increase internal competition within a firm

FORD BRAND PORTFOLIO

DESIGNING A BRAND PORTFOLIO

Basic principles:
Maximize

market coverage so that no potential customers are being ignored Minimize brand overlap so that brands arent competing among themselves to gain the same customers approval

BRAND ROLES IN THE PORTFOLIO

Flankers/ Fighter brands Its purpose is to create stronger points of parity with competition Many companies are introducing flankers to compete with store brands Cash cows (e.g.- Gillette razors) Low-end entry level or high end prestige brands

BRAND HIERARCHY
Is a useful way of graphically portraying a firms branding strategy by displaying the number and nature of common and distinctive brand elements across the firms products. The simplest form of a brand hierarchy from top to bottom is: Corporate or family brand Family brand Individual brand Modifier

BRAND HIERARCHY TREE: TOYOTA

Toyota Corporation
Toyota (Trucks) Toyota (SUV/vans) Toyota (Cars) Toyota Financial Services Lexus

Corolla
CE S LE

Camry
SE LE XLE

Avalon
Platinum Edition XL XLS

Celica
SE SLE

ECHO

Matrix

MR2 Spyder

Prius

BRAND HIERARCHY LEVELS

Corporate Brand (General Motors)

Family Brand (Buick)

Individual Brand (Park Avenue)

Modifier: Item or Model (Ultra)

CORPORATE BRAND EQUITY

Encompasses a much wider range of associations than a product brand Is relevant when the corporate or company brand plays a prominent role in the branding

FAMILY BRANDS
Brands applied across a range of product categories An efficient means to link common associations to multiple but distinct products

INDIVIDUAL BRANDS
Restricted to essentially one product category There may be multiple product types offered on the basis of different models, package sizes, flavors, etc. If brand fails, risk to other brands in the company is minimal However, it is difficult to build individual marketing programmes for the different brands

MODIFIERS
Signals refinements or differences in the brand related to factors such as quality levels, attributes, functions, etc. Plays an important organizing role in communicating how different products within a category that share the same brand name are

CORPORATE IMAGE DIMENSIONS

Corporate product attributes, benefits or attitudes

Quality Innovativeness Customer orientation

People and relationships

Values and programs

Concern with the environment Social responsibility

Expertise Trustworthiness Likability

Corporate credibility

CORPORATE IMAGE DIMENSIONS

Common product attributes benefits or attitudes - Corporate brands can also evoke strong associations to a product attribute, type of user, usage situation or overall judgement. Two product related corporate image associations: High quality corporate image associations Innovative corporate image association

CORPORATE IMAGE ASSOCIATIONS CONT...

People and relationships Corporate image associations reflect characteristics of the employees of the company Values and programmes Reflect values and programmes of the company that do not directly relate to the product it sells. Two examples of these are: a socially responsible corporate image association and environmentally concerned corporate image association.

Corporate credibility Consumers may form abstract judgements about the company. E.g. perceptions of the personality of the corporate brand. Corporate credibility can be defined as measuring the extent to which consumers believe a firm can design and deliver products and services that satisfy customer needs and wants. It depends on three factors. These are: Corporate expertise Corporate likability Corporate trustworthiness

GUIDELINES FOR BRAND HIERARCHY DECISIONS

NUMBER OF HIERARCHY 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

LEVELS OF AWARENESS AND ASSOCIATIONS

Principle of relevance
Create

global associations that are relevant across as many individual items as possible individual items and brands

Principle of differentiation
Differentiate

LINKING BRANDS AT DIFFERENT LEVELS

Principle of prominence
The

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

LINKING BRANDS ACROSS PRODUCTS

Principle of commonality
The

more common elements shared by products, the stronger the linkages

BRAND ARCHITECTURE GUIDELINES

Adopt a strong customer focus Avoid over-branding Establish rules and conventions and be disciplined Create broad, robust brand platforms Selectively employ sub-brands as means of complementing and strengthening brands Selectively extend brands to establish new brand equity and enhance existing brand equity

ADJUSTMENT TO THE MARKETING PROGRAM

Corporate image campaigns These are designed to create associations to the corporate image as a whole and consequently ignore or down play individual products or sub brands in the process.

POSSIBLE OBJECTIVES IN A CORPORATE BRAND CAMPAIGN

Build awareness of the company and the nature of its business Create favourable attitudes and perceptions of company credibility Link beliefs that can be leveraged by product specific marketing Make a favourable impression on the financial community Motivate present employees and attract better recruits Influence public opinion and issues

BRAND LINE CAMPAIGNS

It emphasises the breadth of products associated with the brand Unlike a corporate image campaign that represents the brand in abstract terms, with few if any references to specific products, brand line campaigns refer to the range of products associated with a brand line

USING CAUSE MARKETING TO BUILD BRAND EQUITY

The process of formulating and implementing marketing activities that are characterized by an offer from the firm to contribute a specified amount to a designated cause when customers engage in revenue-providing exchanges that satisfy organizational and individual objectives

ADVANTAGES OF CAUSE MARKETING

Building brand awareness Enhancing brand image Establishing brand credibility Evoking brand feelings Creating a sense of brand community Eliciting brand engagement

GREEN MARKETING
A special case of cause marketing that is particularly concerned with the environment Explosion of environmentally friendly products and marketing programs

GREEN MARKETING
Obstacles: Over exposure and lack of credibility Consumer behaviour Poor implementation Possible solutions Green your products before you are forced to Communicate environmental aspects of products Deliver on performance and price Dramatise environmental benefits Stress direct tangible benefits Be consistent and thorough.