Branding and Naming Strategies

Chapters 11 & 12

Brand-Product Matrix:Relationships Diagramed

• Brand line - all products sold under a brand• Brand portfolio -set of all brands and brand

lines a company offers in a product category; used to maximize equity (BR, Gap, ON)

• Product line - products similar in price, TA, or distribution

• Product mix - all product lines• Brand mix - all brand lines

Breadth of Branding Strategy:Product Mix

• Aggregate market factors - size, growth, stage, profits

• Category factors - competition, bargaining power of buyers & suppliers

• Environmental factors - technological, economic, political, social

Depth of Branding Strategy

Multiple brands are used to pursue multiple market segments

Segment Ford brandLuxury (MB, Lexis) Jaguar, LRoverUp-market (BMW,Cad) Volvo, Lincoln,

Astin MartinMid-price (HTN, GM, Ford, Mercury,

Chrysler) Mazda

Depth Tactics

• Flankers - to create stronger POP with competition so flagship brand keeps desired position (Philip Morris’ use of discount Basic to protect Marlboro hi $)

• Cash cow - milked till dead (Trac II)• Low end entry or hi end prestige - sub

brands used to leverage on basis of price or quality (BMW Z3, 700 series)

Brand Hierarchy

• Corporate - GM

• Family - Buick

• Individual - Park Avenue

• Modifier (model) - Ultra

Branding System

• Product brand - individual positioning (P&Gs Ariel, Tide, Dash detergents)

• Line brand - cross branding (Renault)• Range brand - one name for a group (Green Giant

vegetables)• Umbrella brand - one brand for products in many

markets (Canon copiers, cameras, equipment)• Source brand - family with different names (Calvin

Kline perfume, clothing lines)• Endorsing brand - diverse products & brands

(General Motors cars)

Equity

Corporate level image determinants1. Common product attributes, benefits

(Quality, innovation)2. People and relationships (customer

orientation)3. Values and programs (social resp)4. Corporate credibility (expertise, trust,

likeability)

Designing branding strategy

Corporate dominantcorporate brands (Kellogg)house brands (Frosted Flakes

Mixed brandsduel brands (equal prominence)endorsed brands (Chevy Blazer)

Brand dominantmono brand (Absolute)furtive brand (identity secret; Turning Leaf)

Corporate/ProductRelationships

1. Single entity: Federal Express

2. Brand dominance: Marlboro (PM)

3. Equal dominance: Nissan Maxima

4. Mixed dominance: Bosch/ Blaupunikt

5. Corporate dominance: Xerox

Acura - from equal (Acura Legend) to corporate dominance (Acura 3.5RL)

Question

Characterize Mercedes’ Benz brand hierarchy. How would you improve the company’s branding strategy?

Characterize Nissan’ hierarchy. How does their strategy differ from that of MBZ?

Naming choice for new products

1. New brand name2. Apply existing brand name (TracIII)3. Combination of new with existing

brand name (brand extension)• line extension - new flavor, Absolute

citron• category extension - Swiss Army

luggage

Expanding meaning with brand extensions

brand product extension meaning

Crayola crayons paint, clay kid craft

Swiss Army knife luggage adventure

Mont Blanc pens watches luxury

Billabong surfboard snow & all sports

skate boards

Master brands

Owning an association in the consumer’s mind: Band-Aid, Alka-Seltzer, Jell-O, Crayola, Vaseline

Difficult to extend directly to other product categories. Directions for leveraging master brands are:1. Sub-branding to give new element (DuPont

Stainmaster carpet)2. Super-branding adds improved element

(Everready Energizer batteries)3. Brand bundling fortifies master w/co-branding4. Brand bridging to new category

You be the judge

Evaluate whether or not the following brand extensions work and why

Honda lawn mowers

Smuckers’ ketchup

Visa traveler’s checks

Cracker Jack cereal

Harley Davidson wine coolers