GROUP 10

AARIF | ARNAB | DIMPY | GAURI | MEGHA MOHNISH | PARAN

Designing and Implementing Branding

Strategies

Agenda

Brand Architecture

Brand Hierarchy

Designing a Branding Strategy

Using Cause Marketing to Build Brand Equity

Brand Architecture / Branding Strategy

A structure of brands within an organizational entity

A Branded House A House of Brands

Role of branding strategiesClarify Brand Awareness – Improve consumer understanding and communicate similarities and differences between the brands

Motivate Brand Image – Maximize transfer of equity to and from the brand to individual products to improve trial and repeat purchase

Brand Product Matrix

A graphical representation all the brands and products old by a company Product 1 Product 2 Product 3

Brand 1

Brand 2

Brand 3

Brand- Product relationships

• Represented by the rows of the matrix• Captures the brand extension strategy of the firm• Number and nature of products sold under different brand categories•

Brand Line

• Represented by one row of the matrix• Consists of all products (line+ category extensions) sold under a particular brand

Brand Product Matrix

Product-Brand relationships

• Represented by the Columns of the matrix• Captures the brand portfolio strategy of the firm• Number and nature of brands to be marketed in each category•

Brand Portfolio

• Represented by one column of the matrix• Consists of all brands and brand lines a particular firm offers for sale in a particular category

Brand Line Brand Portfolio

Brand Product MatrixProduct Line

• Group of products within a product category that are closely related to each other• Functionality, target segment, same retail outlets

• May include different brands, single family brand or an individual brand with line extended

Product Mix

• Set of all product lines and items that a seller makes available to buyers

Brand Mix

• Set of all brand lines that a particular seller makes available to the buyers

Breadth of a branding strategy – Product Mix

Number and nature of different products linked to the brands sold by a firm

BreadthDifferent product lines

1. Aggregate Market factors• Market size, Market

growth, Seasonality2. Category Factors

• Threat of new entrants, Bargaining Power of buyers and suppliers, Current category rivalry, Substitutes

3. Environmental Factors• Technological , Political ,

Economic, Regulatory, Social

1. Understanding of the market and cost interdependencies between products

2. Percentage of sales and profits contributed by each item

3. Ability to withstand Competition and address consumer needs

Depth Variants in each product line

Example HUL Product Mix

Food & beverages

Home Care Personal Care

Ice cream Soaps & Detergents

Hand Wash

Tea Cloth Conditioner

Shampoo

Ketchup Toilet Cleaner Conditioner

Soups Dish washer Soaps

Wheat Flour Deodorants

Crème

Depth of Branding Strategy- Brand Mix

Number and nature of different brands marketed in the product class sold by a firm Reasons – Increased Market Coverage

Pursue different price segments

Different channels of distribution

Different geographic boundaries

Increase shelf presence and retailer dependence

Increase internal competition within the firm

Yield Economies of scale in advertising, sales, merchandizing etc

• Maximize market coverage

• Do not ignore any potential Consumer

• Minimize brand overlap

• Minimize cannibalization

Depth of Branding Strategy- Brand Mix

Detergents

Different Roles of Brands

Flankers• Fighter Brands• Create stronger

points of parity with competitors' brands so that more important flagship brands can retain their desired positioning

Cash Cows• Brands which

manage to hold on to a sufficient number of customers and maintain profitability with virtually no marketing support

• More profitable to keep rather than to discontinue

Low end Entry or High End Prestige

• Low end- Attract customer to the brand franchise and then trade up to high priced product

• High end – Add prestige and credibility to the entire brand portfolio

Brand Hierarchy

Brand Hierarchy is a useful means of graphically portraying a firm’s branding strategy

Display’s the number and nature of common and distinctive brand elements across the firm’s products

Revealing the explicit ordering of brand elements

Ways to define brand elements and levels of hierarchy

• Corporate or Company Brand• Family Brand• Individual Brand• Modifier

Brand Hierarchy

General

Motors

Chevrolet

Trucks

ColoradoAvalancheSilveradoTahoe

Cars

AveoCobaltCorvetteSSR

Pontiac

G6TorrentSolsticeGrand Pix

Buick

LaCroseTerrezaRendezvousRainer

Cadillac

STSXLRSRXCTS

GMC

SierraCanyonEnvoyYukon

Saturn

IonL300VueRelay

Hummer

H1H2H3

Brand Hierarchy

Corporate or Company Brand• Highest level of the hierarchy• Name of subsidiary may appear• Combine corporate with family or individual brands (Conglomerates e.g. Siemens)• Company name is virtually invisible (e.g. DeWalt)

Family Brand

• Used for more than one product category

Individual Brand

• Brand restricted to essentially one product category

Modifier

• Designate a specific item or model type or a particular version or configuration of the product

Brand Hierarchy – Brand Equity

• Corporate image is of prime importance

• Strong statistical correlation between corporate reputation and consumers intentions

• To buy company’s product• Recommend to others• Buy a company’s stock

• Strong corporate image is an effective means to attract and motivate employees

• Corporate image factors

• Products and services the company provides• Role in society , actions towards environment• Communication to consumers

Corporate or Company Brand level

Brand Hierarchy – Brand Equity

• Corporate Brand Equity

• Differential response by consumers, customers, employees, other firms, or relevant constituency to the words, actions, communications, products, or services provided by an identified corporate brand entity.

• Corporate brand is distinct from a product brand as it can encompass a much wider range of associations

• Corporate image factors – Additional requirements

• High public profile• Willingness to subject to more scrutiny• Transparent values, activities and programs• High level of openness

Corporate or Company Brand level

Brand Hierarchy – Brand Equity

• Range brands or Umbrella brands• Specific set of associations across group of related products• Lower cost of introducing a related new product, higher level of acceptance• Failure of one product may have adverse effects on other products

Family Brand Level

• Customize the brand and supporting marketing activities to meet the needs of a specific customer group

• Focus on a certain target market• If brand fails, the risk to other brands and the company itself is minimal• Difficult, complex and expensive

Individual Brand Level

• Distinguish brands according to the different types of items or models• Quality levels • Attributes• Functions

• Modifiers make products more understandable and relevant to consumers

Modifier Level

Brand Hierarchy – Corporate Image

Product

Attributes, Benefits or Attitudes

•High-quality corporate image association•Products of the highest quality

•Quality is an important decision factor for consumers

•Innovative corporate image association•Product innovation and improvements; Unique marketing programs

•Competitive weapon; Trustworthy and likeable

People and Relationshi

ps

•Customer focused corporate image association•Responsive to and caring about it’s customers

•Reflects characteristics of employees

Values and Programs

•Socially responsible corporate image association

•Environmentally concerned corporate image association

Corporate

Credibility

•Corporate Expertise

•Corporate Trustworthiness

•Corporate Likability

Brand Strategy

Deviation in brand strategy

• Corporate objective• Consumer behavior• Target market• Competitive activity of the company

Challenges in branding strategy

• Design the proper brand hierarchy with the right number• Nature of brand element to use at each level• Optimal supporting marketing program to create brand awareness• Type of brand association at each level

Number of levels of brand hierarchy

Advantage of brand levels

• Communicates additional specific information about the product• Lower level hierarchy gives flexibility in communicating the uniqueness• Higher level provides economic means of sharing information and synergy across the company

Sub branding

• Means of modifying super ordinate brand• builds stronger connection to the family brand • Creates brand specific belief• Helps consumers to understand about product variability and suitability• Helps sales people and retailers to organize selling efforts

Principle of simplicity

• Provide right amount of information to consumers - no more or no less

Principle of clarity

• Transparent relationship of all brand elements at each level

Desired awareness at each hierarchy level

Decision on how much awareness at each level

What type of association at each level

Brand knowledge creation process

Principle of relevance• Based on advantage of efficiency and economy• Association should be relevant to as many level as possible• E.g. Nike’s slogan “Just Do It” relevant to virtually all its products• More abstract the association, more relevant across different product setings

Principle of differentiation• Based on disadvantages of redundancy• Appropriately distinguish brands at the same level• Brand extension and innovation to be introduced thoughtfully• Choosing the relative emphasis to place on different products making up brand hierarchy

Combining brand elements from different level

Principle of Prominence • Relative visibility among brand element• Primary brand element should covey main product positioning and point of difference• Secondary element convey more restricted set of association such as point of parity. PEPSIVitacola Or Vitacola BY

PEPSI Single entity

• Only one product line or set of services• Image of the company and product to be the same e.g Federal Express

Brand dominance

• Strategic decision not to relate brand and corporate names• E.g. Phillip Morris makes little connection to Marlboro and Meritt.

Equal dominance

• Separate image of product but also associate with the corporation• Neither the corporation nor the individual brand name dominates• E.g. General Motor with its different car division and individual brands as Electra, Riviera

Mixed dominance

• Sometimes individual product brand and sometime corporate name is dominant

Corporate dominance

• Corporate name is supreme and applied across range of product lines e.g Xerox

Developing brand strategy

Linking brand element to multiple products

• Horizontal aspect of brand hierarchy• Principle of commonality• More common brand element product share, the stronger the linkage between the products• e.g. HP LaserJet followed by DeskJet, PaintJet, ThinkJet, OfficeJet printers

Developing a brand architecture

• Clearly defined relevant customer segment• Brand positioning and equity in terms of point of parity and differences• A good brand mantra to offer rational and emotional benefit• Brand equity implication of transfer from parent brand to individual products• Carefully evaluate brand portfolio and hierarchy

Adjustment to the Marketing Program

Different brands require different marketing mix

Corporate image campaign

• Association to corporate brand as a whole• Tend to ignore individual products• Builds awareness of company and nature of buisness• Create favourable attitude and perception of company credibility• Associating belief to product specific marketing

Brand line campaign

• Focus on breadth of product associated with brand• Shows different benefits of range of products• Increase brand awareness

Building brand equity

Cause Marketing

• Offer from the firm to contribute a specified amount to a designated cause• Also customer engage in revenue providing exchange satisfying organizational and

individual needs• e.g. ITC contributes to rural education program in purchase of every classmate notebook

Advantages of cause marketing

• Building brand awareness• Enhancing brand image• Establishing brand credibility• Evoking brand feeling- social approval and self respect• Creating sense of brand community

Thank You