DESIGNING AND IMPLEMENTING

BRANDING STRATEGIES
 Branding strategy
Branding strategy is critical
because it is the means by which
the firm can help consumers
understand its products and
services and organize them in
their minds.

Two important strategic tools:

brand-product matrix
brand hierarchy

11.2
Branding Strategy or Brand
Architecture
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.

Central unifying idea which aligns

behaviors , actions , communications
.
11.3
 Brand-Product Matrix
Products
1 2 3 4
A
Brands B
C

Must define:
Brand-Product relationships (rows)
Line and category extensions
Product-Brand relationships (columns)
Brand portfolio

11.4
 Products
1 2 3 4
A
Brands B
C
Rows :- represent brand product relationship
.
No. & nature of products sold under the
firms brand .( brand extension strategy)
Ex:- Ponds of M/s Hindustan Lever Ltd - Mumbai
- Ponds cold cream
- Ponds Face wash
- Ponds Soap
- Ponds Talk
A Brand line :- one row of the matrix.
( original product + line & category
extensions )
11.5
Columns :- represent product brand relationship
No. & nature of brands to be marketed in each category
( brand portfolio strategy)
Ex:- Colgate of M/s Colgate-Palmolive (India) Ltd
-Colgate Total Products
-Colgate Gel 1 2 3 4
-Colgate Dental Cream
-Colgate Calciguard A

Brands B
A Product line :- is a group of products within a
C
product category that are closely related because they
function in a similar manner ,
are sold to the same customer groups ,

are marketed through the same type of outlets ,

fall within given price ranges

 Important Definitions
Product line
A group pf products within a product
category that are closely related
Product mix (product assortment)
The set of all product lines and
items that a particular seller makes
available to buyers
Brand mix (brand assortment)
The set of all brand lines that a
particular seller makes available to
buyers
 Brand Portfolio
Brand Portfolio:- is the set of all
brands & brand lines that a particular
firm offers for sale to buyers in a
particular category .

Optimal brand portfolio is one in

which each brand maximizes equity in
combination with all other brands in
the portfolio. different brands may
be designed & marketed to appeal to
different market segments.
Brand Portfolio examples

11.9
Branding Strategy
categorized by
BREADTH
+
DEPTH

11.10
 Breadth of a Branding
Strategy
terms of brand-product relationship & brand
Breadth of product
extension strategy mix
Aggregate market factors
Market size
Market growth
Stage in product life cycle
Sales cyclicity
Seasonality
Profits
Category factors
Threat of new entrants
Bargaining power of buyers
Bargaining power of suppliers
Current category rivalry
Pressures from substitutes
Category capacity
Environmental factors (PESTEL)
 Depth of a Branding
Strategy
terms of product-brand relationships & brand
portfolio or mix
Depth of product mix
Examining the percentage of sales and profits
contributed by each item in the product line
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
Reasons to adapt multiple brands
-Pursue multiple market segments
-Different price segments
-Different channels of distribution
-Different Geographic Boundaries
11.13
Product Line Depth Britannia Biscuits

11.14
 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

11.15
 Brand Roles in the
Portfolio
Flankers
Cash cows
Low-end entry-level
High-end prestige brands

11.16
 Flanker Brands
Flanker brand is an extension of an existing
brand in the same product category . Purpose of
having flanker brand to increase Market Share
without affecting the Market share of existing
brand . The new brand may be a different size ,
flavor or type but still falls within the same
category of products .

Related concept id FIGHTER BRAND created

specifically to combat a competitor that is
threatening to take market share away from a
companys main brand .

11.17
 Examples
Intel introduced Centrino ( low
cost )as flanker brand to protect
its Pentium processor

P&G introduced Tide (low cost)

as flanker brand to protect its
Ariel Brand .

11.18
 Cash Cow Brand
Such brands with high market
share in a low or no growth
industry . Such brands bring
profits to the company for many
years . Also involve low
marketing costs in establishing
brand image .

Example :- ipod
11.19
 Low-end Entry Level
or
High- end prestige brands
Many brands introduce line
extensions or brand variants in a
certain product category that vary in
price and quality .
Example :- Low-end entry level :- BMW
3 series in order to bring new
customers into its brand franchise .

Example :- High end Prestige brands

Titan Nebula
 Brand Hierarchy
Brand-product matrix helps to
highlight the range of products and
brands sold by the firm .
A means of summarizing the branding
strategy by displaying the number and
nature of common and distinctive brand
elements across the firms products,
revealing the explicit ordering of
brand elements
A useful means of graphically
portraying a firms branding strategy

11.21
 Brand Hierarchy Tree:
Toyota
Toyota
Corporation

Toyota Toyota Toyota Toyota Lexus

(Trucks) (SUV/vans) (Cars) Financial
Services

Corolla MR2
Camry Avalon Celica ECHO Matrix Prius
Spyder
Platinum
CE SE Edition
S LE XL SE
LE XLE XLS SLE

11.22
 Example of Brand
Iconic Luxury
Hierarchy
Lifesty Signatu Modern Extende Vacatio
Luxury le / re Essenti d stay n Clubs
collect als
ion
- J W Renaiss - - - -
Bvlgari Marriot ance Marriot Courtya Residen Marriot
-The t Hotels t rd ce Inn t
Riltz Hotels - - Vacatio
Carlton & Springh TownPla n Club
-The Resorts ill ce
Ritz- Suites suits
Carlton
Destina
tion
Club

11.23
11.24
Brand Hierarchy Levels

Corporate Brand

Family Brand

Individual Brand

Modifier: Item or Model

11.25
 Corporate Brand Equity
Occurs when relevant
constituents hold strong,
favorable, and unique
associations about the
corporate brand in memory
Encompasses a much wider range
of associations than a product
brand

11.27
 Family Brands
Brands applied across a range of
product categories
An efficient means to link common
associations to multiple but
distinct products
Family Brand :- brand used in more
than one product category but is
not necessarily the name of the
company or corporation itself
( ex: Ponds )
11.28
 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.
Individual brand :- brand that has
been restricted to one product
category ( ex: Kurkure of Pepesico
)
11.29
 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
Modifier ( designating item or
model ,version or configuration of
the product) ex:- Ultra
11.30
 CLASS ROOM EXERCISE
- Draw brand hierarchy of
1.Amul

2.Dabur

3.Nivea

4.HUL

5.APPLE

6.Samsung

11.31
 Corporate Image Dimensions
Corporate product attributes, benefits
or attitudes
Quality
Innovativeness
People and relationships
Customer orientation
Values and programs
Concern with the environment
Social responsibility
Corporate credibility
Expertise
Trustworthiness
Likability
 Brand Hierarchy Decisions
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
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
Principle of differentiation
Differentiate individual items and
brands
 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
The more common elements shared by
products , the stronger the
linkages . ex:- Hewlett-PAckward
using Jet suffix DeskJet ,
PaintJet , ThinkJet , LaserJet.,
McDonalds used it Mc
 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
 Corporate Brand
Campaign
Different objectives are possible:
Build awareness of the company and the
nature of its business
Create favorable attitudes and perceptions
of company credibility
Link beliefs that can be leveraged by
product-specific marketing
Make a favorable impression on the financial
community
Motivate present employees and attract
better recruits
Influence public opinion on issues
 Using Cause Marketing to
Build Brand Equity
The process offormulating and
implementing
marketingactivities 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
 Example
Example : American express initiated the
Charge Against Hunger campaign in 1993 .
they raised $5 million in first year . every
time the members used their American Express
cards during the month of November & December
3 cents was contributed on each usage .

In 2006 , the company partnered with bono-lead

singer of the band U2 & his AIDS organization
Project RED to introduce the American Express
RED card , through which American Express
contributes 1% of charges made with the card to
fight AIDS in Africa .
 Advantages of Cause
Marketing

Building brand awareness

Enhancing brand image

Establishing brand credibility

Evoking brand feelings

Creating a sense of brand

community
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
For example :- one survey found
that 83% of American consumers
now claim to make purchases based
on environmental considerations .
 Example
Example :- McDonalds has introduced
a number of well-publicized
environmental initiatives through
years , such as moving to unbleached
paper carry-out bags , replacing
polystyrene with paper wraps and
lightweight recyclable boxes . The
company received the EPA Waste Wise
Partner of the Year award for its
waste reduction efforts .