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Branding a d g Strategy St ategy

Lecture # 10 M. Imran Akram

Important Definitions

Product Category

Group of Similar products that fulfill the same need

Product line

A group of products within a product category that are closely related;

Function in similar manner Are sold to the same customer groups Are marketed- same type of outlet or Fall with in given price range Different Brands / Single family brand / Individual brand

Product mix (product assortment)

.. is i th the set t of f all ll product d t li lines and d it items th that t a particular ti l seller makes available to buyers

Ambient Dairy

Chilled Diary

B kf t C Breakfast Cereals l

H i Care Hair C

Sh Shampoo Conditioner

Firm- objective-Growth
Ansoff s Growth Share Matrix

Current P d t Products Current Markets New M k t Markets

Market penetration strategy gy Market development strategy

New P d t Products
Product development strategy gy Diversification strategy

Brand Name Options with Respect to New Products

When a firm introduces new product, product it has 3 choices. It can;
1 D 1. Develop l a new b brand di individually di id ll chosen h f for the h new product 2 Apply (in some way) one of its existing brand 2. 3. Use a Combination of a new and an existing brand

Brand Extension occurs when a firm uses an established brand name to introduce a new product (2& 3 above)

Brand Strategy

Product Category
Existing New

Bra and Nam me


Line Extension Multibrands

Category Extension New Brands


Brand Extensions
Make / Give birth

Existing b d brand

New Brand

Parent Brand

Sub Brand

B Brand d Extensions E t i

Parent Brand

An existing brand that gives birth to a brand extension is the __________

Sub brand

When a new brand Wh b di is combined bi d with i h an existing i i b brand, d the h brand extension can also be ___

Family brand

If the parent brand is already associated with multiple products d t through th hb brand d extensions t i th then it may also l called ll d as ____ 11

Brand Extensions

. falls into 2 general categories; 1. Line extension Marketers.apply the parent brand to a new product that targets a new market segment within a product category the parent brand currently serves

Adds different flavors or ingredient variety, different form or size


Li Extension Line E t i



B Brand d Extensions E t i
1 1.

Category extension

Marketers Apply the parent brand enter a different product category from the one it currently serves.


Brand Strategies Used by Leading Consumer Product Companies for New Products
1. Line extensions: 89% ( (80% to 90) ) 2. Category g y extensions: 6% 3. New brands: 5%

Advantages of Brand Extensions

new product acceptance

Parent b d brand

New product (b d extension) (brand i )

feedback benefits


Advantages g of Brand Extensions

Facilitate New `Product Acceptance p

Provide Feedback Benefits to the Parent Brand and Company


Disadvantages of Extensions




Branding g Strategy gy

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.

for a firm tells marketer

which brand names, logos, symbols, etc to APPLY to which New and Existing products;


Branding g Strategy gy

..by which the firm can help consumers to

understand its products and services and organize them in their minds.

Distinguish g Branding g Strategies g by y whether a firm is or should employing;

Branded House

.. Family / umbrella or corporate brands .. Collection C ll ti of fi individual di id l b brands d all ll with ith diff different t names.

House of Brands

Branding Strategy

Breadth of a Branding Strategy

B Brand d Extension E t i Strategy St t

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

Firm has to make Strategic Decisions abo t about;

How many different product lines the company should carry?


Aggregate market factors Category factors Environmental factors


Breadth of a Branding Strategy


How many variants to offer in each product line ?

Examining the

Percentage of Sales & Profits contributed by each item in the product line Ability to withstand competition and address consumer needs

..Deciding to increase the length of the product line

by adding new variants or items can

Colgate Palmolive

Personal Care

Oral Care


2. Depth of a Branding g Strategy gy

Brand Portfolio

The number and nature of f different ff brands marketed -- sold by a firm

Multi brands in same product category

Multi brands- reasons

Different market segments (Market Coverage), Different price segments Different channels of distribution, or Different geographic boundaries


Food Products



Personal Care

Home Care


Colgate Palmolive

Fabric Care

Surface Care


Brand Roles in the Portfolio


Flankers Protective flanker or Fighter brands To create strong Point of parity with competitors brands so that more important (profitable)..

Flagship brand can retain their desired positioning iti i

b) )

Cash cows
Some brands kept alive Sufficient number of customer and maintain their profitability with virtually no market support.


Brand Roles in the Portfolio


Low-end entry-level
Introduce brands that vary in Price and Quality

Attracting customer to brand franchise


High-end prestige brands

Hi h P High Priced i dB Brands d

Prestige & credibility to the entire brand portfolio


Brand Hierarchy y

....a useful means of graphically portraying a firms branding strategy

revealing the explicit ordering of brand elements

Top p to bottom


Brand Hierarchy y Levels

Corporate or company Brand (Toyota Corporation)

Family Brand (Toyota)

Individual Brand (Corolla)

Modifier: Designated D i t d Item It or Model M d l (XLI)


Brand Hierarchy Tree: Toyota

Toyota Corporation
Toyota (Trucks) ( ) Toyota (SUV/vans) Toyota (Cars) Toyota Financial Services Lexus



Platinum Edition XL XLS




MR2 Spyder



Company / Corporate brand name Alone Al

Nike Adidas Gourmet PEL HP TCS IBM Mitchell's Haier Nirala


Corporate or Company y Brand

Company / Corporate brand name with Individual Brand Nestle Milkpack

Nestle Pure life Nestle Yogurt Haleeb Good day Haleeb Milk
Cadbury Dairy Milk Cadbury clairs

Corporate brand name with family brand MicrosoftMi ft Windows Wi d Telenor Talkshalk


Family y Brands

Brand Name is applied across a range of product categories (more than one product category) NOT necessarily the name of the company or corporation

Umbrella Brands / Range Brand

Life Buoy Soap Life Buoy Shampoo Guard Filters Guard Rice Sufi Soap Sufi Oil
An efficient means to link common associations to multiple but distinct products


Range Brands

Lipton Yellow Label Lipton p Green Tea

Peek Freans Sooper Peek Freans Rio Peek Freans Peanut Pick

Jazz Budget Jazz Ladies First Jazz Octane Jazz One


B Brand d Portfolio P tf li Structure St t

Brand Hierarchy y Tress: Brand family y


Colgate T th t Toothpaste

Colgate T thb h Toothbrush

Colgate D t l Floss Dental Fl

Colgate M th i Mouthrinse

Cl i Classic

Pl Plus

P ii Precision

Diamond Heads

The wild ones


Individual Brands

..Is a brand restricted to essentially one product category However multiple product types offer may differ on the basis of; different models models, package sizes, flavors, etc.

Lux Tide de Ariel Surf Excel Wheel Sunsilk



.. Is a means to designate a specific item or model type or particular version or configuration of the product

Different type of items Fla ors Flavors Models

Signals refinements or differences in the brand related to factors such as;

quality lit l levels, l attributes, functions, etc.