Brand-Product Relationship

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Brand-Product Brand-Product RelationshipRelationship Introduction

• product brand

• line brand

• range brand

• umbrella brand

• source brand (or parent brand)

• endorsing brand

Six types of relationship between brand and product (or Six types of relationship between brand and product (or service)service)

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Brand-Product Brand-Product RelationshipRelationship Product-Brand Strategy

To assign an exclusive name to a product,

having its own individual positioning

Each new product receiving its own personal brand Each new product receiving its own personal brand namename

Brand A Brand B Brand N

Product A Product B Product N

Positioning A Positioning B Positioning N

Company X

Brand portfolio correspond to

product portfolio

▶ 언제 이 전략을 쓸까 ?□for firms focusing their attention on a particular market

-by occupying several segments having different types of expectations and needs-< maximizing its share of the market

□When segments are not too different

-Choosing one name per product helps the consumer see each other as being different

□for highly innovative firms who wish to preempt a positioning

-if the first brand in a new segment turns out to be satisfactory, it inherits the pioneer advantage; copy 가 일어남

▶ 좋은 점과 나쁜 점

□ 좋은 점 :

● 각자의 브랜드가 독립적이므로 ,

실패하더라도 다른 브랜드나 회사이름에

먹칠을 하지 않는다 .

● Shelf-space 의 영향을 받지 않는다 .

□ 나쁜 점

● 브랜드 런칭시 막대한 마케팅비용

▶ 적용한 사례에는 어떤 것이 있을까 ?□ P&G: detergents-Ariel, Tide, Dash□ Food sector: bring out new specialty product -> product-brand portfolio is extensive□ Mineral water: evian, perrier –strict indication of identity (Post-it)‘Branduct’ 현상을 빚을 수도 있음 (product 가 ->category 가 됨 )

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Brand-Product Brand-Product RelationshipRelationship Line-Brand Strategy

Line-Brand extends its specific concept across different products

Cross Branding; product with complementary Cross Branding; product with complementary featuresfeatures

▶ 적용한 사례에는 어떤 것이 있을까 ?□ Renault: 각 모델에 Baccara version; a line brand indicating leather seats, a luxurious interior, etc. □ beauty-care industry: a complete line of products go with for balding man □ L’Oreal’s Studio Line: offering youngsters a structuring gel, etc.

▶ 언제 이 전략을 쓸까 ?□established by building on the success of the original product with practical variations of a closely associated nature.

Eg) typical approach followed by perfumes

▶ 좋은 점과 나쁜 점

□ 좋은 점 :● It raises the selling power of the brand a

nd creates a strong image of consistency

● It leads to ease of line extension● It reduces launch costs □ 나쁜 점 :● It lies in the tendency to forget that a lin

e has limits● A powerful innovation could slow down it

s development Eg) Nestle-Bolino

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▶ 적용한 사례에는 어떤 것이 있을까 ?□

□ food sector (Green Giant, Dole), cosmetics, clothes (Benetton, Kookai, etc) kitchen equipment (Moulinex, Seb,.) accessories (Samsonite,.)

Brand-Product Brand-Product RelationshipRelationship Range-Brand Strategy

Brand

Brand Concept

A B C D N

Brands bring all their products together under one promise or positioning

Brands bestow a single name and a promise on a group of Brands bestow a single name and a promise on a group of products having the same level of abilityproducts having the same level of ability

▶ 언제 이 전략을 쓸까 ?□ Building up Brand awareness (which can be shared by products)

□ Refining brand concept

♣Approach: by concentrating on specific products, called vector product -> shared by the other products in the range not directly mentioned

▶ 좋은 점과 나쁜 점 □ 좋은 점 :

● It avoids the random spread of communication by concentrating on one single name

Clarins

Concept: the specialistIn beauty care

Cream SolutionsFluidsGels EtcSoothing line

Slimming and forming lineLine Y

○○

○ ○

○

○

○

To assist its consumers in

making sense of the scientific wording on products

□ 나쁜 점 :

● The Brand’s opacity as it expands

♣ 해결책 : 1. the brand needed to be nurtured in such a way as to express its individuality

2. The consumer has to be assisted in sifting through the mass of products -> converted to product lines

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Brand-Product Brand-Product RelationshipRelationship Umbrella-Brand Strategy

Brand

A B C N

Products orservices

A B C N

SpecificCommunications By productOr service

The same brand supports several products in different markets, each with its own communication and individual promise

Yet each product retains its generic Yet each product retains its generic namename

▶ 적용한 사례에는 어떤 것이 있을까 ?□ Canon: cameras, photocopiers, and office equipment under one name□ Yamaha: motorcycles, pianos, guitars□ Mitsubishi: banks, cars, domestic appliances

▶ 언제 이 전략을 쓸까 ?□ favored by multinational corporations marketing worldwide

-being already established, their name and reputation is a major asset in entering segments or areas which they had not previously penetrated.

-> awareness of the brand brings about immediate approval

▶ 좋은 점과 나쁜 점 □ 좋은 점 :

● Capitalization on one single name● Little marketing investment is required

□ 나쁜 점 :

● Each division within the organization handles its own communication(to get the best out of the particular market in which it operates)

● Awareness resulting from the umbrella effect is not sufficient

● An accident occurring with one product can affect the other products under the same umbrella

● The more a brand covers different categories, the more it stretches and weakens- greatest handicap is its vertical extension

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Brand-Product Brand-Product RelationshipRelationship Source-Brand (Parent) Strategy

Parent Brand

Personal brand

names

Brand A Brand B Brand C

Promise A Promise B Promise CSpecific

Communication

Product AOr Line A

Product BOr Line B

Product COr Line C

Products

Identical to umbrella-brand strategy,

Products are now directly namedProducts are now directly named

Apart from

▶ 적용한 사례에는 어떤 것이 있을까 ?□ Perfume: no longer come under a generic tag, such as eau de toilette or eau de parfum, but each has its own name, e.g., Jazz, Poison, Opium, Nina, etc -> two tier brand structure known as double-branding

▶ endorsing brand 와의 차이점□ source brand: the offspring may have their own Christian names, but are still tied to the family spirit which dominates

□ endorsing brand: products follow their singular paths under a simple common guarantee

♣ problem with many brands is that they have converted from source brands to endorsing brands.

▶ 좋은 점과 주의할 점

□ 좋은 점 :● ability to impose a sense of difference a

nd depthe.g. chanel: coco and no.5

□ 주의할 점 :● overstepping the limitation of the parent

brand’s core identity; keeping within strict boundaries where brand extension is concerned.

♣ 해결책 : if looking for greater freedom, endorsing-brand strategy is more suited.

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Brand-Product Brand-Product RelationshipRelationship Endorsing-Brand Strategy

Promise A Promise B Promise C Promise N

Product AOr Line A

Product BOr Line B

Product COr Line C

Product NOr Line N

Brand A Brand B Brand C Brand N

Endorsing BrandPlaced lower down in its basic reassuring role

It gives its approval to a wide diversity of products grouped under product brands, line brands or range brands

Each product is still free to show its Each product is still free to show its originality; originality; hence the wide variety of names and symbols

▶ 적용한 사례에는 어떤 것이 있을까 ?□ GM: Pontiac, Buick, Oldsmobile, Chevrolet, etc□ Kellogg: Country Store, Rice Krispies, Frosties, etc ( Kellogg normally tends towards product brands-Frosties, All Bran, Corn Flakes, etc refers to particular products)□ Nestle: Crunch, Golden Graham, Nescafe, etc

♣ 표시형식 : indicated either by an emblem next to the brand or as a simple name

▶ 좋은 점

□ 좋은 점 :● grater freedom of maneuverability which

it conferse.g. Nestle: baby food, children;s chocolat

e, coffee, soup market

● profits from the advantages offered by specifically named products.

● less costly ways of giving substance to a company name and allowing it to achive brand status.

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Brand-Product Brand-Product RelationshipRelationship Conclusion

In reality, firms adopt hybrid configurationshybrid configurations in the form of a range, umbrella, parent, or endorsing brand, according to the products.

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Brand-Product Brand-Product RelationshipRelationship A Case of Brand

Proliferation

W

3M3M

Schotch

Schotch Brite

(3M medical division)

Medical adhesives

Overhead projectors, cameras

“Racoon” (nick name)

Y ZPost-it

Video cassettes

Extra, Magic

Sometimes with the 3M endorsement, sometimes alone

Generic denomination

- 세계 29 대기업임과 동시에 6 만개이상의 제품을 판매 ,But 인지율은 매우 낮음 (65% 보조상기율 , 25% 친숙도 )

brand proliferation brand proliferation and dilution of identityand dilution of identity

It has 1,500 product brands, which are correspondingly specialized,

and each one receives too little financial support to be properly supported.

Furthermore, the effect is to create a screen, Hiding the corporation 3M.

brand proliferation brand proliferation PolicyPolicy

Use the name of one of its existing primary brands, Use the name of one of its existing primary brands, to capitalize on them to capitalize on them

and nourish them. nourish them.(3M) (3M)

▶▶New philosophy emphasizes 3M’s New philosophy emphasizes 3M’s role role as an endorsement brand. as an endorsement brand.

□ Corporate Branding Policy Committee 설립

● Establish corporate guidelines for brand use

● Review the brand’s world strategies

● Approve any new brand requests

□ New guidelines introduced

1. The trademark 3M should endorse all products (with one exception, a cosmetic line)

2. No products would carry more than two brands.

3. All brands will be global, which means no more creation of local brands.

□ 신브랜드 개발을 위한 전제조건 Will the product create a new primary

demand? (Post-it)

Sub brands -allowed only when the primary brand alone does not accomplish sufficient differentiation1989: 73 new brands created

1991: 4 createdbrand portfolio: 1500-> 700 개로 줄임 .

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Brand-Product Brand-Product RelationshipRelationship Selection Criteria

Choosing a brand policy is not a stylistic exercise, Choosing a brand policy is not a stylistic exercise, but a strategic decision to promote products but a strategic decision to promote products with a long-term brand capital aim.with a long-term brand capital aim.

France AbroadSpecific type of Bordeaux wine

Multiproduct name

Consumer is more accustomed to interpreting the various pointers

to specification on wine label:region, vintage, type of vine, year

Consumer may not fully appreciate the meaning

of ‘appellation’, vintages, and other details.

The Carvet brand has meaning

only when it can offer a plus

which other Bordeaux cannot

No appreciable

wine-producing Industry

Umbrella brandUmbrella brand covering many generic French regional wines

Product brandProduct brand

Club Med 는 . product brand 전략을 쓰는 대부분의 호텔 -Hilton, Sheraton, Meridien, Sofitel 등과는 달리 , range-brarange-brand policynd policy 를 적용한다

Economy hutted villages

Luxury golf hotels

… …… …. … ... … ..

Club MedClub Med

Unitary Brand name

&

Advertising Campaign

Despite their differences, all these products

share the same model and values. Their common features speak louder than

their differences.

1.1. The product or serviceThe product or service2.2. Consumer habitsConsumer habits3.3. The firm’s competitive The firm’s competitive positionposition

CarvetCarvet Club MedClub Med

Denominative policy results from a recognition of the Denominative policy results from a recognition of the brand’s duties as expected by the customerbrand’s duties as expected by the customer,,

When compared with the When compared with the function and meaning of other product-. range-, and line-brand namesfunction and meaning of other product-. range-, and line-brand names,,Including objective and subjective quality indicatorsIncluding objective and subjective quality indicators such as packaging, advertising such as packaging, advertising and and the retailer’s own prescription and advice. the retailer’s own prescription and advice.

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Brand-Product Brand-Product RelationshipRelationship Selection Criteria

All companies must define strict guidelines with which to face these naming and branding decisions. All companies must define strict guidelines with which to face these naming and branding decisions.

Guidelines bring rationality and coherence to decisionsGuidelines bring rationality and coherence to decisions so far made according to each manager’s so far made according to each manager’s Subjectivity. They become Subjectivity. They become a tool of consensus and delegationa tool of consensus and delegation. This is all the more necessary if the . This is all the more necessary if the Company is Company is international and sells innumerable products. international and sells innumerable products.

Trend now exists in favor of corporate branding Trend now exists in favor of corporate branding

Major corporations selling to both industrial and consumer Major corporations selling to both industrial and consumer markets markets must decide how much emphasis they will put on product must decide how much emphasis they will put on product brands and brands and how much visibility they will give to the corporate namehow much visibility they will give to the corporate name

For a long time, corporations remained hidden for security purposes: in the event of problems with one of brands,The corporation would not be hurt. Reciprocally, the brands would not suffer from corporate problems.

However, the advantages in the uncommon event of crisis are now outweighed by certain disadvantages. Ie) Unilever: is starting an endorsement policy in Europe and adds its corporate name in small type under its Persil

Akzo: remained largely unknown; gained a poor image in terms of its technology because of this lack of visibilityJohnson’s: all products are endorsed by Johnson’s, despite their being strong product brands in their own right.

● A Top-down policy (umbrella-brand policy)

-a range of technical products which remain unbranded (polyurethanes)

● A hand-in-hand policy (endorsement-brand policy)-adds its corporate reputation and reassurance on technology a

nd quality for the customers of famous mass-market brands (Dulux-paint)

● A product brand-only policy (makes no reference at all)

-Tactel(fiber-fashion industry) is far removed from the imagery of the chemical industry

● The monolithic one (GE as an umbrella brand)-GE signs the product or company as single-brand (GE Silicones, GE Aircraft Engines, GE Motors)● The endorsement type-GE signs adjacent to a specific product or company name (GE-X)● The holding type -GE is discretely mentioned in such term as (X, member of the GE group)

● The autonomous product or company-making no reference to GE

ICIICI GEGEBranding policy Branding policy

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Brand-Product Brand-Product RelationshipRelationship Product Names: What

Autonomy?

The choice between these policies depend greatly on The choice between these policies depend greatly on the strength of the brand and its willthe strength of the brand and its will, , the strength of its new productsthe strength of its new products, and the force of its , and the force of its commercial strategycommercial strategy..☞ Firms that have extensive growth policy in an effort to capture a larger share of the market -Range 로 제품 출시하기 보다 특정한 이름을 가지고 부각시키는 것이 좋다 . (P&G- 세제 ) ☞ Firms opt for an intensive policy by developing their sales to existing customers- range 로 제품을 출시하는 것이 좋다 . (ex-Apple; MacWrite, MacPaint, etc)

7 forms of strategy; Increasing degrees of autonomy7 forms of strategy; Increasing degrees of autonomy

The product do not have their own names-stamp of the powerful brand; Ie) Lacoste shirt, socks, sweaters…- 사치품에만 쓰여지는 것이 아니라 product status 를 올리기 위해 사용되기도 함 . ie) St. Michael, Sony 등-not suitable for weak brands, Since they are unable to inject a common quality or spirit into the products bearing their name

The brand dominatesThe product-emphasizes a brand whose image is reflected in every model.

-The customers will will discover

all the objective and subjective

attributes which go to make up

the brand identity.

ie) Mercedes: call its models the 190, 200, and so on.

In naming, it providesA forceful reminder of The source brand-Each product is simply a variation on the brand’s values deriving from a common core. ie)Diorssimo, Miss Dior… -strict association between brand and product allows the rising brand to express its identity and system of values by means of those little extra touches.-The principle should not be applied to too many products at one time. Ie) Nescafe, Nesquick, Nestea..

Wish to show an association between brand and products through suffix, -The brand takes them under Its exclusive wing, expressing their innovative qualities.

Ie) Lancome: Niosome, Noctosome…

Wish to show an association Between brand and products through term (ex:prefix) Ie) Clarins: ‘multi-tensing gel’, ‘multi-restoring fluide’ - 단순한 generic name 아님 . 1. Prefix 가 모든 제품에 나옴 . 2. Clarins chose to capitalize on term: ‘multi’ infers a complete course of treatment, corresponding to the Clarins identity and intent. ->product line rather than mono products

The relationship between product and brand is bottom-up -Nominal and semantic detachment allowsbrand to extend without destabilizing theheart of the brand. Ie) Dior’s Capture and Poison perfumes, Johnson’s Pledge -Exhausted or weak brands 에 좋음 . Ie)car industry; Renault 의 경우 R5, R9 에서 1990 년 ‘ own-name’ policy 로 바뀜 . Clio, Chamade 의 이름을 달고 나타남 .

Totally autonomous product brand, with no offshoots orAffiliations Ie) Signal, Crest, Persil, Jif, and Sun

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Brand-Product Brand-Product RelationshipRelationship Retailer Brand

Policies similar firms competing in the same areasimilar firms competing in the same area

[Retailer sector][Retailer sector]

Wide range of brand Wide range of brand policies policies

Carrefour (1976) – 1. a new type of retailer brand known as ‘banner’. => signifies an attacking strategy. Umbrella brand 로 많은 제품군을 cover 함 . 단일 색상 패키지로 retailer signature 없이 emblem 의 guarantee 만 있음 . 2. ‘banner’ 의 성공으로 인해 ‘ freedom’ 이라는 새로운 product line 을 출시함 . => stance: national brands 처럼 좋으면서 값싼3. 다른 Retailer 들에게 응급 상황을 가져다 줌 . 경쟁이 치열해지면서 대형 할인점에는 generic 과 unbranded 제품이 난무하기 시작함 . 이들은 National brand 보다 quality 가 떨어지며 값은 30~40% 가량 더 싸며 package 상 아무 장식도 없음 .4. 소비자 인식상 값싼 generic 제품과 banner brand 와 차이에 대한 혼돈이 빚어짐 . ☞ banner 브랜드는 retailer 의 이미지를 강화시키고 새로운 품질을 개선 시키는데에 목적이 있었으나 이러한 혼돈으로 말미암아 Banner brand 는 retailer 의 이미지를 오히려 악화시키기에 이르렀다 . 5. 결국 Carrefour 는 ‘ freedom’ line 을 접고 , 대신 corporate branding policy 를 출시함 .

‘Own brand’ or ‘Private label’-different name from that of the retailer, Ie) Marks & Spencer - St. Michael.-share one essential difference from their earlier counterparts-in many cases they are product or line brands, designed to capture customers from the market leader, hence the name ‘counter brands’. □ tactic: 1. Major brand 를 타겟으로 잡는다 2. 타겟과 가장 흡사하게 브랜드 네임과 패키지 , 외관 디자인 및 색상을 결정하여 차이점을 눈에 띄지 않게 한다 . ☞ 유사한 모방과 저렴한 가격으로 major brand 의 R&D 투자와 품질 , 마케팅의 이익을 누릴 수 있다 . ※ retailer 의 shelf 에 물건이 빠질 것을 두려워하여 불공정한 경쟁에 대한 법적인 조치를 취하는 것을 꺼린다 .

Umbrella Umbrella brandbrand

cosmeticsgroceries

Houseware

Retailer brands have typically been umbrella brands, exclusive to the retailer, each covering a number of products within a similar sphere Sainsbury: began as far back as 1869Co-op: officially register its brand in France in 1929 The retailers saw these products in an essentially defensive role, a reaction against reluctant manufactures who were not supplying them.

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Brand-Product Brand-Product RelationshipRelationship

Brand Owner

Manufacturer RetailerBrand’s Main Purpose

To capture clientele ofA targeted brand

To personalize the product

To incorporate the Product among others

To identify the product source

To indicate the manufacturer

Counterbrand

Own-label

Own-label

(Banner brand)

Retailer named brand

Product brand

Line brandRange brand

Umbrella brand

Source brand

Endorsing brand

Corporate branding

Retailer Brand Policies

16All brand architectures 는 initial goals 를 성취하도록 노력해야 한다 .

Brand-Product Brand-Product RelationshipRelationship

Breakdowns in the Brand-Product Relationship: A Few Classic Examples

• Descending flows; from the brand to the products

-whenever their sales could be increased by the application of a source-effect.

B

PnP1

Des

cend

ing

flow

s

Reg

ener

ate

bran

d

Horizontal flows between the products

• Regenerate brand

-thanks to a bottom-up image flow

• Horizontal flows between the products -themselves can be a source of added value and may lead the consumer to try more products.

Brand-product relationship organization aims at Brand-product relationship organization aims at

optimally managing the image flows.optimally managing the image flows.

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Brand-Product Brand-Product RelationshipRelationship

Breakdowns in the Brand-Product Relationship: A Few Classic Examples

Classic cases of failureClassic cases of failure

1. A brand disappearing behind one of its products-the most frequent case; Parent brand 가 서서히 실체를 잃음 . - 향후의 제품도 그 (힘을 잃은 ) parent brand 로 출시할 예정이었을 경우 문제는 더욱 심각해짐 .-brand range 의 한 제품이 뜻밖의 성공을 거두었을 때 잘 일어나는 현상Ie) Anais-Anais 의 성공은 Cacharel 의 identity 를 잃게함 Honeywell또한 컴퓨터 사업을 접었는데에도 불구하고 과거의 과대한 광고로 인해 소비자 머리 속에 컴퓨터 회사라는 인식이 자리잡음 .

2. Brand-product disconnection-When the company prefers to remain in the background, its image is not nurtured by its best-selling products and cannot act as an endorsement brand on other products. ie) Essilor: Varilux 의 endorse 역할을 못함 . Seiko, Nikon 등에 밀림 Corning - 소비자는 Pyrex 를 브랜드가아닌 ware 로 착각할뿐아니라 corning 과 연계하지도 못한다 .

3. Excessive use of product name- 제품마다 브랜드를 도입-명확한 identity구축과 구체적인 seg 에서의 판매를 강화할 수 있지만 브랜드와 소비자 사이의 스크린을 만드는 것과 같다 . -parent brand 나 source brand 를 사용할 경우 단순한 endorsing brand 로 value 나 core identity 가 약하므로 특정한 제품을 단독 브랜드화한다 . 하지만 brand core 는 지녀야하며 이것으로부터 멀어질 수록 특정 브랜드 name 이 필요함으로 double branding 이 적합하다 .ie) Kellogg’s: health and nature 을 brand core 로 가져가고 전제품을 Generic name 화 . (eg. Kellogg’s Corn Flakes 등 )예외 - Choco pops, Frosties 등과 같이 less health oriented, with more fun and gimmicks -> receive double branding - 모든 브랜드는 ‘ brand map’ 을 적용해야함 .

A ‘brand map’ visual layout of brand-product relationships, distances and structure

Brand core

● Core product

●Product

with no mention of brand

● Product with a specific name and a small mention only of the brand

4. Range disruption or breakage-in case of a range brand, the products of the range must work in synergy and complementarity to fulfill the brand mission, but it often happens that many products in a range have their separate lives, unexpected and even contradictory.Ie) Johnnie Walker- a classic case of vertical disruption of the brand. (a brand suffers when it signs both a basic, low-pricedproduct and a top-class, premium-priced product.) -Black label 은 johnnie walker 심볼을 배제한체 출시하였고 ,Red label 은 과다한 가격인하 정책과 리베이트로 인해 싸구려 위스키로 이미지 전락 . -> johonnie walker 의 자산 하락 -> brand reposition 을꾀하고자 range 를 선택함 . (johnnie walker 와 black label 의 평형을 찾아 병에 표시함 . Black label 위급인 Gold label 과 Premier 신제품으로 range 확대 . Johnnie walker symbol 의 연합 역할 .) 5. The insistence on certain accounting methods. - 특정한 몇몇개의 제품을 communication 하여 같은 line 에 있는 제품에 대해 동시에 효과를 보려고 하는 접근에서 오는 오류 . - 한 두개의 line 에 대한 재정 support 로 인해 특정 제품에만 몰두하면서도 모든 제품 range 에 benefit 을 가져올 것이라고 생각하지만 사실상 광고된 line 의 특징들이 다른 제품 line 에 그대로 적용되어 같은 이미지로 overshadow 된다 . ie) Playtex-Cross Your Heart, Super Look bras 등의 특정한 제품만 광고하다가 브랜드 캠페인으로 바꿈 .