the business school the university of greenwich strategic brand management 2010 strategic brand...

the BUSINESS SCHOOLthe UNIVERSITY of GREENWICHStrategic Brand Management 2010

Strategic Brand Management

Designing and implementing branding strategies

Dr. Klairoong Phairor


Brand Architecture

Brand architecture is used to describe branding strategies.

It involves defining both brand boundaries and complexity.

Which products should share the same brand name? How many variations of that brand name should be

employed?


Brand Architecture

The role of defining brand strategies is two-fold:

Clarify brand awareness: improve customer understanding and communicate similarities and differences between products.

Motivate brand image: maximise transfer of equity from the brand to products to improve trial and repeat purchase.


Breadth of Branding Strategies

It concerns the number and nature of products linked to the brands sold by a company

Which products the firm should manufacture or sell?

How many product lines a company should carry?

How many variants should be offered in each product line?


Depth of Branding Strategy

It concerns the number and nature of brands marketed in product class sold.

Why might a firm have several brands int he same product category?

The primary reason relates to market coverage.

Although multiple branding was pioneered by General Motors, Procter & Gamble is widely recognised as popularising the practice.

Hair care: e.g. head & shoulders, Herbal Essences, Pantene Pro-V and Wella.


Brand Hierarchy

General Motors’ brand hierarchy in the USA


Building Equity at Different Hierarchy Levels

Corporate brand level: Colgate-Palmolive

Family brand: Colgate

Individual brand: Colgate Total

Determinants of corporate image

the BUSINESS SCHOOLthe UNIVERSITY of GREENWICHStrategic Brand Management 2009Determinants of corporate image

Determinants of Corporate Image

the BUSINESS SCHOOLthe UNIVERSITY of GREENWICHStrategic Brand Management 2009Determinants of corporate image

Designing a Branding Strategy

There is no agreement on the type of strategy that should be adopted by all firms for all products.

LaForet and Saunders analysed the strategies of 20 brands sold by each of 20 of the biggest suppliers of product to Tesco and Sainsbury


Designing a Branding Strategy

Branding Strategy Percentage of Occurrence

Corporate Dominant1. Corporate brands: corporate name or subsidiary name used 5

11

Mixed brands1. Dual brands: two or more names given equal prominence2. Endorsed brands: brand endorsed by corporate identity

38.513.5

Brand Dominant1. Mono brands: Single brand name used2. Furtive brands: Single brand name used and corporate

identity not disclosed

1913


Miller Beer

Even within one firm, different branding strategies may be adopted for different products.

Beer: Miller High Life, Miller Lite and Miller Genuine Draft

No-alcohol beer: Sharp’s

Iced Beer: Icehouse

Low-priced beer: Milwaukee’s Best


Guidelines for Brand Hierarchy Decision

• Decide on the number of level.• Simplicity• Clarity

• Decide on the levels of awareness and types of associations to be created at each level.• Relevance• Differentiation

• Decide on how and which products to be introduced.• Growth• Survival• Synergy


Guidelines for Brand Hierarchy Decision

• Decide on how to link brands from different levels for a products• Relative prominence of brand elements affects

perceptions of product distance and the type of image created by the new brand

• Decide on how to link a brand across products.• Commonality: The more common elements are

shared by products, the stronger the linkages.


Corporate Image Campaigns

Create associations with the corporate brand as a whole

Ignore or downplay products or sub-brands

Often criticised as an ego-stroking waste of time.


Objectives of Corporate Image Campaigns

Building awareness of the company and the nature of its business

Building company trustworthiness and credibility

Creating corporate image associations that can be leveraged by product-specific marketing ‘Let’s make things better’ ‘ Sense and Simplicity’


Using Cause Marketing to Build Brand Equity

In 1983, American Express launched a campaign to restore the Statue of Liberty.

Donating a small amount of money for every credit card transaction and each new card issued, Amex gave 1.6 million Euro to the restoration.

Transactions for Amex rose 30% and the issuance of new cards increased by 15%.

In the next 5 years, Amex supported more than 70 causes in 18 countries, ranging from preservation of the national bird of Norway to protection oft he Italian coastline.


Using Cause Marketing to Build Brand Equity

Amex initiated ‘Charge against Hunger’ in 1993.

Bono and his Aids organisation project Red = Amex Red card.

Visa created a transaction-based donation scheme to support the 1988 Olympics.

MasterCard tied the use of its credit card to donations to six charities with its ‘Make a difference’ campaign.


Green Marketing

Green marketing is a special case of cause marketing.

Concern for the environment is a trend that is reflected in the attitudes and behaviour of both consumers and companies.

From branding perspective, green marketing campaigns have not been entirely successful.

Despite reported public interest in environmental responsibility, many of these products and campaigns were unsuccessful.

What obstacles did the green marketing movement encounter?


Green Marketing

Overexposure and lack of credibility So many companies made environmental claims

that the public became sceptical. E.g. Degradability of bin bags This backlash = Gimmicks

Consumer behaviour Products need to achieve points of parity on

quality and price and credible environmental claims for green marketing to work.

Poor implementation Possible solutions


Green Marketing

Poor implementation Poor product design in terms of

environmental worthiness Overpriced products Inappropriately promoted products

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