BRANDING STRATEGIES

MULTIPRODUCT BRANDING
It is also called blanket branding strateg or !a"il branding strateg In t#is strateg t#e !ir"
$ses one na"e !or all its %rod$cts& It is an atte"%t to le'erage cor%orate brand e($it in an
atte"%t to create %rod$ct brand recognition& Disne) !or e*a"%le) incl$des t#e +ord ,disne, in
t#e na"e o! "an o! it,s %rod$cts& So does IBM) Pe%si) and CocaCola& T#is can res$lt in
signi!icant econo"ies o! sco%e since one ad'ertising ca"%aign can be $sed !or se'eral %rod$cts&
It also !acilitates ne+ %rod$ct acce%tance beca$se %otential b$ers are alread !a"iliar +it# t#e
na"e& A cor%orate branding strateg s#o$ld onl be $sed i! t#e co"%an is alread +ell kno+n
b t#e target "arket and also #as a 'er %ositi'e i"age in t#eir "inds& I! cor%orate branding is
done +ell) t#e cor%orate na"e can beco"e snono"o$s +it# a %rod$ct categor -eg&. /lene*)
Ta"%a*0& E'en %$rc#asers o! C#ar"in +ill re!er to t#e %rod$ct as /lene*& T#e "ain
disad'antage +it# cor%orate branding is t#e %rod$cts are not treated as indi'id$als) #ence t#ere is
not ade($ate !oc$s on t#e %rod$cts, $ni($e c#aracteristics&
M$lti1%rod$ct
branding strateg
Godre2 "akes.
1 Godre2 na'tal
1 Godre2
Store+el
1 Godre2
ColdGold
Cadb$r "akes.
1 Cadb$r
Dair"ilk
1 Cadb$r 3 Star
1 Cadb$r Perk
1 Cadb$r
Bo$rn'ita
M$lti1branding
strateg
4ind$stan Le'er
"akes.
Pears
Do"e*
5air 6 Lo'el
7#eel
B$lsara "akes.
Odonil
Pro"ise
Sani 5res#
Co1 branding
strateg
ICICI1Big
Ba8ar
Ti"es1MT'
Intel14P
Licensing
strateg
Ni'ea
Lo$is
P#ili%%e
Le'is
Arro+
Branding Strategies
Licensing
strateg
Old S%ice
Lo$is P#ili%%e
Le'is
Arro+
Generic branding strateg
1 Green Peas
1 4a8aa"
1 Nor!lo*a8ine
Advantages
Can res$lt in signi!icant econo"ies o! sco%e since one ad'ertising ca"%aign can be $sed !or
se'eral %rod$cts
5acilitates ne+ %rod$ct acce%tance beca$se %otential b$ers are alread !a"iliar +it# t#e
na"e

Makes %ossible line e*tensions

S$b1branding co"bines a !a"il brand +it# a ne+ brand&
Allo+s !or brand e*tension9 e'en to enter a co"%letel di!!erent %rod$ct class&
Limitation
Too "an $ses !or one brand na"e can dil$te t#e "eaning&
T#e %rod$cts are not treated as indi'id$als) #ence t#ere is not ade($ate !oc$s on t#e %rod$cts,
$ni($e c#aracteristics

MULTI BRANDING
T#e de%t# o! a branding strateg concerns t#e n$"ber and nat$re o! di!!erent brands "arketed in
t#e %rod$ct class sold b a !ir"& 7# "ig#t a !ir" #a'e "$lti%le brands in t#e sa"e %rod$ct
categor: T#e %ri"ar reason relates to "arket co'erage& Alt#o$g#) "$lti%le branding +as
originall %ioneered b General Motors) Proctor) 6 Ga"ble is +idel recogni8ed as %o%$lari8ing
t#e %ractice&
&
T#e "ain reason to ado%t "$lti%le brands is to %$rs$e "$lti%le "arket seg"ents& T#ese di!!erent
"arket seg"ents "a be based on all t%es o! considerations;di!!erent %rice seg"ents) di!!erent
c#annels o! distrib$tion) di!!erent geogra%#ic bo$ndaries) and so !ort#& In "an cases) "$lti%le
brands #a'e to be introd$ced b a !ir" beca$se an one brand is not 'ie+ed e($all !a'orabl b
all t#e di!!erent "arket seg"ents t#at t#e !ir" +o$ld like to target& So"e ot#er reasons !or
introd$cing "$lti%le brands in a categor1incl$de t#e !ollo+ing
<&To increase s#el! %resence and retailer de%endence in t#e store
=&To attract cons$"ers seeking 'ariet +#o "a ot#er+ise s+itc# to anot#er brand
>&To increase internal co"%etition +it#in t#e !ir"
?&To ield econo"ies o! scale in ad'ertising) sales) "erc#andising) and %#sical distrib$tion
Ad'antages o! a M$lti1branding strateg
<&T#e !ir" can distance %rod$cts !ro" ot#er o!!erings it "arkets
=&T#e i"age o! one %rod$ct is not associated +it# ot#er %rod$cts t#e co"%an "arkets
>&T#e %rod$cts can be s%eci!icall targeted
?&I! t#e %rod$ct !ails) t#e e!!ect on ot#er %rod$cts is "ini"i8ed
GENERIC BRAND
A %rod$ct t#at is na"ed onl b its generic class -e&g&) dri%1grind co!!ee) barber s#o%0& Ot#er
%rod$cts #a'e bot# an indi'id$al brand and a generic classi!ication -Ma*+ell 4o$se dri%1grind
co!!ee) Ma$rice,s barber s#o%0& Generic brand %rod$cts are o!ten t#o$g#t to be $nbranded) b$t
t#eir %rod$cer or reseller na"e is $s$all associated +it# t#e %rod$ct) too& T#is a%%roac# is
$s$all associated +it# !ood and ot#er %ackaged goods) b$t "an ot#er cons$"er and ind$strial
%rod$cts and ser'ices are "arked as generics&
CO1BRANDING
As noted %re'io$sl) a ne+ %rod$ct can beco"e linked to an e*isting cor%orate or !a"il brand
t#at #as its o+n set o! associations t#ro$g# a brand e*tension strateg& An e*isting brand can also
le'erage associations b linking itsel! to ot#er e*isting brands !ro" t#e sa"e or di!!erent
co"%an& Co-brandingalso called brand b$ndling or brand alliances;occ$rs +#en t+o or
"ore e*isting brands are co"bined into a 2oint %rod$ct or are "arketed toget#er in so"e !as#ion
Co1branding #as been aro$nd !or ears9 !or e*a"%le) Bett Crocker %aired +it# S$nkist Gro+ers
in <@A< to s$ccess!$ll "arket a le"on c#i!!on cake "i*& Interest in co1branding as a "eans o!
b$ilding brand e($it #as increased in recent ears& 5or e*a"%le& Lea! S%ecialt,s 4eat# to!!ee
cand bar #as not onl been e*tended into se'eral ne+ %rod$cts;!or e*a"%le) 4eat# Sensations
-bite1si8ed candies0 and 4eat# Bits and Bits o! Brickie -c#ocolate1co'ered and %lain to!!ee
baking %rod$cts0;b$t also #as been licensed to a 'ariet o! 'endors) s$c# as Dair B$een -+it#
its Bli88ard drink0& Ben 6 Cerr,s -+it# t#eir ice crea" %rod$cts0) Nestle -+it# t#eir ice crea"
bar0) and Pillsb$r -+it# t#eir cake !rosting0& 5ig$re D1< dis%las so"e s$%er"arket e*a"%les o!
co1branding& In t#e credit card "arket) co1branding o!ten in'ol'es t#ree brands -e&g&& S#ell C#ase
Bank MasterCard0& 7it# airlines) brand alliances can in'ol'e a #ost o! brands) s$c# as United
Airlines) L$!t#ansa) SAS) and Singa%ore Airlines&
T#e "ain ad'antage o! co1branding is t#at a %rod$ct "a be $ni($el and con'incingl
%ositioned b 'irt$e o! t#e "$lti%le brands in'ol'ed& Co1branding can create "ore co"%elling
%oints o! di!!erence or %oints o! %arit) or bot#) !or t#e brand t#an "ig#t #a'e been ot#er+ise
!easible& As a res$lt) co1branding can generate greater sales !ro" t#e e*isting target "arket as
+ell as o%en additional o%%ort$nities +it# ne+ cons$"ers and c#annels& Co1branding can red$ce
t#e cost o! %rod$ct introd$ction beca$se t+o +ell1kno+n i"ages are co"bined) accelerating
%otential ado%tion& Co1branding also "a be a 'al$able "eans to learn abo$t cons$"ers and #o+
ot#er co"%anies a%%roac# t#e"& In %oorl di!!erentiated categories es%eciall) co1branding "a
be an i"%ortant "eans o! creating a distincti'e %rod$ct&
T#e %otential disad'antages o! co1branding are t#e risks and lack o! control t#at arise !ro"
beco"ing aligned +it# anot#er brand in t#e "inds o! cons$"ers& Cons$"er e*%ectations abo$t
t#e le'el o! in'ol'e"ent and co""it"ent +it# co1brands are likel to be #ig#& Unsatis!actor
%er!or"ance t#$s co$ld #a'e negati'e re%erc$ssions !or t#e brands in'ol'ed& I! t#e ot#er brand is
one t#at #as entered into a n$"ber o! co1branding arrange"ents) t#ere also "a be a risk o!
o'ere*%os$re t#at +o$ld dil$te t#e trans!er o! an association& It "a also res$lt in distraction
and a lack o! !oc$s on e*isting brands&
Advantages
Borro+ needed e*%ertise
Le'erage e($it o$ don,t #a'e
Red$ce cost o! %rod$ct introd$ction
E*%and brand "eaning into related categories
Broaden "eaning
Increase access %oints
So$rce o! additional re'en$e
Disadvantages
Loss o! control
Risk o! brand e($it dil$tion
Negati'e !eedback e!!ects
Lack o! brand !oc$s and clarit
Organi8ational distraction
BRAND LICENSING
Licensing is a contract$al agree"ent +#ereb a co"%an allo+s anot#er !ir" to $se its brand
na"e) %atent) trade secret) or ot#er %ro%ert !or a roalt or a !ee& Licensing also assists
co"%anies in entering global "arkets +it# "ini"al risk& Essentiall) a !ir" is ErentingE anot#er
brand to contrib$te to t#e brand e($it o! its o+n %rod$ct&
A strong brand o!ten #as associations t#at "a be desirable in ot#er %rod$ct categories& To
ca%itali8e on t#is 'al$e) a !ir" "a c#oose to license its na"e) logo) or ot#er trade"ark ite" to
anot#er co"%an !or $se on t#eir %rod$cts and "erc#andise Traditionall) licensing #as been
associated +it# c#aracters s$c# as Gar!ield t#e cat) Barne t#e dinosa$r) and Disne,s Micke
Mo$se) or celebrities and designers s$c# as Mart#a Ste+art) Ral%# La$ren) and To"" 4il!iger&
Recentl) "ore con'entional brands s$c# as Cater%illar 4arle Da'idson) Coca1Cola) and ot#er
#a'e licensed t#eir brands&
Licensing can be ($ite l$crati'e !or t#e licensor& Licensing #as long been an i"%ortant b$siness
strateg !or designer a%%arel and accessories& Designers s$c# as Donna /aran) Cal'in /lein)
Pierre Cardin) and ot#ers co""and large roalties !or t#e rig#ts to $se t#eir na"e on a 'ariet o!
"erc#andise s$c# as clot#ing) belts) ties) and l$ggage& O'er t#e co$rse o! t#ree decades) Ral%#
La$ren beca"e t#e +orld,s "ost s$ccess!$l designer) creating a F3 billion dollar b$siness
licensing #is Ral%# La$ren) Do$ble RL) and Polo brands to "an di!!erent kinds o! %rod$cts
E'erone see"s to get into t#e act +it# licensing& S%orts licensing o! clot#ing a%%arel and ot#er
%rod$cts #as gro+n considerabl to beco"e a "$lti1billion dollar b$siness& E'en t#e Rolling
Stones released a line o! GH licensed goods -incl$ding T1s#irts) ties) and a credit card0 t#at +ere
sold at concerts d$ring t#eir Ioodoo Lo$nge to$r) 'ia #o"e s#o%%ing s#o+s) on co"%$ter
net+orks) and t#ro$g# a <A1%age catalog&
T#e rationale !or t#e licensee -i&e&) co"%an obtaining t#e rig#ts to $se t#e, trade"ark0 is t#at
cons$"ers +ill %a "ore !or a %rod$ct beca$se o! t#e recognition and i"age lent b t#e
trade"ark& 5or e*a"%le one "arketing researc# st$d s#o+ed t#at cons$"ers +o$ld %a FAH !or
cool +are licensed $nder t#e C$lia C#ild na"e as o%%osed to onl F?H !or t#e identical cool +are
bearing t#e Sears na"e&
T#e rationale !or t#e licensor -i&e&) t#e co"%an be#ind t#e trade"ark0 relates to %ro!its)
%ro"otion) and legal %rotection& In ter"s o! %ro!its) a !ir" can e*%ect an a'erage roalt o! abo$t
3 %ercent o! t#e +#olesale %rice o! eac# %rod$ct) ranging !ro" = %ercent to <H %ercent de%ending
on t#e circ$"stance in'ol'ed& Beca$se t#ere are no "an$!act$ring or "arketing costs) t#ese
re'en$es translate directl to %ro!its& Licensing is also seen as a "eans to en#ance t#e a+areness
and i"age o! t#e brand& Linking t#e trade"ark to ot#er %rod$cts "a broaden its e*%os$re and
%otentiall increase t#e strengt#) !a'orabilit) and $ni($eness o! brand associations 5inall)
licensing "a %ro'ide legal %rotection !or trade"arks& Licensing t#e brand !or $se in certain
%rod$ct categories %re'ents ot#er !ir"s or %otential co"%etitors !ro" legall $sing t#e brand
na"e to enter t#ose categories& 5or e*a"%le) Coca1Cola entered licensing agree"ents in a
n$"ber o! %rod$ct areas) incl$ding radios) glass+are) to tr$cks and clot#es) in %art as legal
%rotection& As it t$rns o$t) t#eir licensing %rogra" #as been a s$ccess!$l t#e #a'e s$bse($entl
introd$ced a catalog sent directl to cons$"ers t#at o!!ers a "riad o! %rod$cts bearing t#e Coca
Cola na"e !or sale&
Des%ite t#e %otential bene!its !ro" licensing related to %ro!itabilit) i"age en#ance"ent) or legal
%rotection) t#ere are certainl risks too& A trade"ark can beco"e o'er1e*%osed i! "arketers ado%t
a sat$ration %olic& Cons$"ers do not necessaril kno+ t#e "oti'ation or "arketing
arrange"ents be#ind a %rod$ct and can beco"e con!$sed or e'en angr i! t#e brand is licensed
to a %rod$ct) t#at see"ingl bears no relation& Moreo'er) i! t#e %rod$ct !ails to li'e $% to
cons$"er e*%ectations) t#e brand na"e co$ld beco"e tarnis#ed& Anot#er danger in licensing is
t#at "an$!act$rers can get ca$g#t $% in licensing a brand t#at "ig#t be %o%$lar at t#e "o"ent
b$t is reall onl a !ad and %rod$ces s#ort1li'ed sales& Beca$se o! "$lti%le licensing
arrange"ents) licensed entities easil can beco"e o'er1e*%osed and +ear o$t ($ickl&
T4E BRAND1PRODUCT MATRIJ
To c#aracteri8e t#e %rod$ct and branding strateg o! a !ir") one $se!$l tool is t#e brand-product
matrix, a gra%#ical re%resentation o! all t#e brands and %rod$cts sold b t#e !ir"& T#e "atri* -or
grid0 #as t#e brands o! a !ir" as ro+s and t#e corres%onding %rod$cts as col$"ns -see 5ig$re0&
T#e ro+s o! t#e "atri* re%resent brand-product relationships and ca%t$re t#e brand e*tension
strateg o! t#e !ir" in ter"s o! t#e n$"ber and nat$re o! %rod$cts sold $nder t#e !ir",s brands& A
brand line consists o! all %rod$cts;original as +ell as line and categor e*tensions;sold $nder
a %artic$lar brand& T#$s) a brand line +o$ld be one ro+ o! t#e "atri*& A %otential ne+ %rod$ct
e*tension !or a brand "$st be 2$dged b #o+ e!!ecti'el it le'erages e*isting brand e($it !ro"
t#e %arent brand to t#e ne+ %rod$ct) as +ell as #o+ e!!ecti'el t#e e*tension) in t$rn) contrib$tes
to t#e e($it o! t#e %arent brand& In ot#er +ords) +#at is t#e le'el o! a+areness likel to be and
+#at are t#e e*%ected strengt#) !a'orabilit& and $ni($eness o! brand associations o! t#e
%artic$lar e*tension %rod$ct: At t#e sa"e ti"e) #o+ does t#e introd$ction o! t#e brand e*tension
a!!ect t#e %re'ailing le'els o! a+areness t#e strengt#) !a'orabilit) and $ni($eness o! brand
associations or o'erall res%onses -2$dg"ents and !eelings0 to+ard t#e %arent brand as a +#ole:
T#e col$"ns o! t#e "atri*) on t#e ot#er #and) re%resent product-brand relations#i%s and ca%t$re
t#e brand %ort!olio strateg in ter"s o! t#e n$"ber and nat$re o! brands to be "arketed in eac#
categor& T#e brand portfolio is t#e set o! all brands and brand lines t#at a %artic$lar !ir" o!!ers
!or sale to b$ers in a %artic$lar categor& T#$s) a brand %ort!olio +o$ld be one %artic$lar
col$"n o! t#e "atri*& Di!!erent brands "a be designed and "arketed to a%%eal to di!!erent
"arket seg"ents& A brand %ort!olio "$st be 2$dged on its abilit to collecti'el "a*i"i8e brand
e($it. An one brand in t#e %ort!olio s#o$ld not #ar" or decrease t#e e($it o! ot#er brands in
t#e %ort!olio& In ot#er +ords) t#e o%ti"al brand %ort!olio is one in +#ic# eac# brand "a*i"i8es
e($it in co"bination +it# all ot#er brands in t#e %ort!olio&
One !inal set o! de!initions is $se!$l& 1 A product line is a gro$% o! %rod$cts +it#in a %rod$ct
categor t#at are closel related beca$se t#e !$nction in a si"ilar "anner) are sold to t#e sa"e
c$sto"er gro$%s) are "arketed t#ro$g# t#e sa"e t%e o! o$tlets) or !all +it#in gi'en %rice ranges&
A %rod$ct line "a be co"%osed o! di!!erent brands or a single !a"il brand or indi'id$al brand
t#at #as been line e*tended& A product mix -or %rod$ct assort"ent0 is t#e set o! all %rod$ct lines
and ite"s t#at a %artic$lar seller "akes a'ailable to b$ers& T#$s) %rod$ct lines re%resent
di!!erent sets o! col$"ns in t#e brand1%rod$ct "atri* t#at) in total) "ake $% t#e %rod$ct "i*& A
brand mix -or brand assort"ent0 is t#e set o! all brand lines t#at a %artic$lar seller "akes
a'ailable to b$ers
&
T#e branding strategy !or a !ir" re!lects t#e n$"ber and nat$re o! co""on and distincti'e brand
ele"ents a%%lied to t#e di!!erent %rod$cts sold b t#e !ir"& In ot#er +ords) branding strateg
in'ol'es deciding +#ic# brand na"es) logos) s"bols) and so !ort# s#o$ld be a%%lied to +#ic#
%rod$cts and t#e nat$re o! ne+ and e*isting brand ele"ents to be a%%lied to ne+ %rod$cts& A
branding strateg !or a !ir" can be c#aracteri8ed according to its breadth -i&e&) in ter"s o! brand1
%rod$ct relations#i%s and brand e*tension strateg0 and its depth -i&e&) in ter"s o! %rod$ct1brand
relations#i%s and t#e brand %ort!olio or "i*0& 5or e*a"%le) a branding strateg can be seen as
bot# dee% and broad i! t#e !ir" #as a large n$"ber o! brands) "an o! +#ic# #a'e been e*tended
into 'ario$s %rod$ct categories&
BRAND 4IERARC4K
T#e brand1%rod$ct "atri* #el%s to #ig#lig#t t#e range o! %rod$cts and brands sold b a !ir"& As
described) it ass$"es eac# %rod$ct is gi'en one brand na"e& In "an cases) a !ir" "a +ant to
"ake connections across %rod$cts and brands to s#o+ cons$"ers #o+ t#ese %rod$cts and brands
"a be related& As a res$lt) brand na"es o! %rod$cts are t%icall not restricted to one na"e b$t
o!ten consist o! a co"bination o! "$lti%le brand na"e ele"ents& 5or e*a"%le) an IBM T#inkPad
A==M notebook %ersonal co"%$ter consists o! t#ree di!!erent brand na"e ele"ents) EIBM)E
ET#inkPad)E and EA==M&E So"e o! t#ese brand na"e ele"ents "a be s#ared b "an di!!erent
%rod$cts9 ot#er brand na"e ele"ents are li"ited to a "ore restricted range o! %rod$cts& 5or
e*a"%le) +#ereas IBM $ses its cor%orate na"e to brand "an o! its %rod$cts) T#inkPad
designates a certain t%e o! co"%$ter -i&e&) one t#at is %ortable as o%%osed to deskto%0) and A==M
identi!ies a %artic$lar "odel o! T#inkPad -i&e&) one +it# a < G48 Intel Penti$" III) <=G MB
SDRAM) >H GB EIDE #ard disk) etc&0&
A brand hierarchy is a "eans o! s$""ari8ing t#e branding strateg b dis%laing t#e n$"ber
and nat$re o! co""on and distincti'e brand ele"ents across t#e !ir",s %rod$cts) re'ealing t#e
e*%licit ordering o! brand ele"ents& B ca%t$ring t#e %otential branding relations#i%s a"ong t#e
di!!erent %rod$cts sold b t#e !ir") a brand #ierarc# is a $se!$l "eans o! gra%#icall %ortraing
a !ir",s branding strateg& S%eci!icall) a brand #ierarc# is based on t#e reali8ation t#at a
%rod$ct can be branded in di!!erent +as de%ending on #o+ "an ne+ and e*isting brand
ele"ents are $sed and #o+ t#e are co"bined !or an one %rod$ct& Beca$se certain brand
ele"ents are $sed to "ake "ore t#an one brand) a #ierarc# can be constr$cted to re%resent #o+
-i! at all0 %rod$cts are nested +it# ot#er %rod$cts beca$se o! t#eir co""on brand ele"ents& So"e
brand ele"ents "a be s#ared b "an %rod$cts -e&g&) 5ord09 ot#er brand ele"ents "a be
$ni($e to certain %rod$cts -e&g&) 51series tr$cks0&
As +it# an #ierarc#) "o'ing !ro" t#e to% le'el to t#e botto" le'el t%icall in'ol'es "ore
entries at eac# s$cceeding le'el;in t#is case) "ore brands& T#ere are di!!erent +as to de!ine
brand ele"ents and le'els o! t#e #ierarc#& Per#a%s t#e si"%lest re%resentation o! %ossible brand
ele"ents and t#$s %otential le'els o! a brand #ierarc#;!ro" to% to botto";"ig#t be as
!ollo+s.
<& Cor%orate -or co"%an0 brand -e&g&& General Motors)
=& Range brand -e&g&) Chevrolet)
>& Indi'id$al brand (eg !umina)
?& Modi!ier -designating ite" or "odel0 -e&g&) "ltra)
T#e #ig#est le'el o! t#e #ierarc# tec#nicall al+as in'ol'es one brand;t#e corporate or
company brand 5or legal reasons) t#e co"%an or cor%orate brand is al"ost al+as %resent
so"e+#ere on t#e %rod$ct or %ackage) alt#o$g# it "a be t#e case t#at t#e na"e o! a co"%an
s$bsidiar "a a%%ear instead o! t#e cor%orate na"e& 5or e*a"%le) 5ort$ne Brands o+ns "an
di!!erent co"%anies) s$c# as Titleist) 5oot2o) Ci" Bea") Master Lock) and Moen) b$t does not
$se its cor%orate na"e in an o! its lines o! b$siness& 5or so"e !ir"s) t#e cor%orate brand is
'irt$all t#e onl brand $sed -e&g&) as +it# General Electric and 4e+lett1Packard0& So"e ot#er
!ir"s co"bine t#eir cor%orate brand na"e +it# !a"il brands or indi'id$al brands -e&g&)
conglo"erate Sie"ens 'aried electrical engineering and electronics b$siness $nits are branded
+it# descri%ti'e "odi!iers) s$c# as Sie"ens Trans%ortation Sste"s0& 5inall) in so"e ot#er
cases) t#e co"%an na"e is 'irt$all in'isible and) alt#o$g# tec#nicall %art o! t#e #ierarc#)
recei'es 'irt$all no attention in t#e "arketing %rogra" -e&g&) Black 6 Decker does not $se its
na"e on its #ig#1end De7alt %ro!essional %o+er tools) and 4e+lett1Packard created a +#oll
o+ned s$bsidiar !or its lo+1%riced A%ollo ink12et %rinters0&
At t#e ne*t1lo+er le'el) a range # family brand is de!ined as a brand t#at is $sed in "ore t#an one
%rod$ct categor b$t is not necessaril t#e na"e o! t#e co"%an or cor%oration itsel!& 5or
e*a"%le) ConAgra,s 4ealt# C#oice !a"il brand is $sed to sell a +ide s%ectr$" o! !ood
%rod$cts) incl$ding !ro8en "icro+a'e entrees) %ackaged c#eeses) %ackaged "eats) sa$ces) and
ice crea"& Ot#er e*a"%les o! !a"il brands boasting o'er a billion dollars in ann$al sales
incl$de Seagra",s Tro%icana 2$ices) Pe%siCo,s Gatorade t#irst ($enc#er) and An#e$ser1B$sc#,s
B$d+eiser beer& Most !ir"s t%icall onl s$%%ort a #and!$l o! !a"il brands& I! t#e cor%orate
brand is a%%lied to a range o! %rod$cts) t#en it !$nctions as a !a"il brand too) and t#e t+o le'els
colla%se to one !or t#ose %rod$cts&
An individual# product line brand is de!ined as a brand t#at #as been restricted to essentiall one
%rod$ct categor) alt#o$g# it "a be $sed !or se'eral di!!erent %rod$ct t%es +it#in t#e categor&
5or e*a"%le) in t#e Esalt snackE %rod$ct class) 5rito1La o!!ers 5ritos corn c#i%s) Doritos
tortilla c#i%s) Las and R$!!les %otato c#i%s) and Rold Gold %ret8els& Eac# brand #as a do"inant
%osition in its res%ecti'e %rod$ct categor +it#in t#e broader salt snack %rod$ct class& Basic
%rod$ct brands can be re!ined t#ro$g# sub-branding
A modifier is a "eans to designate a s%eci!ic ite" or "odel t%e or a %artic$lar 'ersion or
con!ig$ration o! t#e %rod$ct& T#$s) "an o! 5rito1La,s snacks co"e in bot# !$ll1!la'or or lo+1
!at EBetter 5or Ko$E !or"s& Si"ilarl) Land O,Lakes o!!ers E+#i%%ed)E E$nsalted)E and Ereg$larE
'ersions o! its b$tter& Ko%lait og$rt co"es as Elig#t)E Ec$stard stle)E or EoriginalE !la'ors&
Di!!erent le'els o! t#e #ierarc# "a recei'e di!!erent e"%#asis in de'elo%ing a branding
strateg& 5or e*a"%le& General Motors traditionall c#ose to do+n%la its cor%orate na"e in
branding its cars) alt#o$g# t#e na"e recentl #as %laed a "ore i"%ortant role in its s$%%orting
"arketing acti'ities& S$c# s#i!ts in e"%#asis are an atte"%t b t#e !ir" to #arness t#e %ositi'e
associations and "itigate against t#e negati'e associations o! di!!erent brands in di!!erent
conte*ts) and t#ere are a n$"ber o! +as to %lace "ore or less e"%#asis on t#e di!!erent
ele"ents t#at co"bine to "ake $% t#e brand&
PRODUCT BRANDS IS& CORPORATE BRANDS
$roduct brands: A %rod$ct brand does not rel on its association +it# t#e organi8ation t#at o+ns
or "anages it) rat#er t#e %rod$ct brand #as a clear association +it# a %rod$ct categor& T#is
detac#"ent can %ro'e bene!icial +#en a %arent organi8ation s$!!ers a re%$tation crisis as #istor
#as %ro'en t#at %rod$ct brands are $s$all not a!!ected& E*a"%les. /leene*) Pa"%ers) Tide)
Mo$ntain De+) and Crest&
Corporate brands: A cor%orate brand relies on its association +it# t#e %arent organi8ation& T#is
allo+s t#e cor%orate brand to dra+ !ro" a +ider organi8ational conte*t and ric#er #istor to
create %ositi'e i"ager& Anot#er bene!it o! t#e cor%orate brand is its abilit to assist co"%anies
in relating to ke stake#olders& Cor%orate brands ser'e as an E$"brellaE and %ro'ides assistance
in trans!erring brand e($it to a range o! s$b1brands& E*a"%les. Microso!t) 4e+lett Packard)
IBM) and 5ord&
C4ARACTERISTICS O5 GREAT CORPORATE BRANDS
Obsessed +it# being t#e best. t#ese co"%anies co"%ete +it# t#e"sel'es&
G$ided b a core ideolog) not %ro!it alone&
Dri'e %rogress at t#e !ringes&
T#e are bra'e&
4ig#l sensiti'e to c$sto"er needs&
A STRONG CORPORATE BRAND CAN ACCOMPLIS4
4el% o$ co""and a %re"i$" %rice !or o$r %rod$cts9
Makes it easier to sell9
Makes it easier to recr$it and retain talent9
Makes introd$ction to t#e co"%an easier9
7it#stand t#e a crisis "ore readil9
Slo+ or sto% s#are erosion9 and
It is a%%ealing to !inancial and in'estor "arkets&
DISTRIBUTORLS OR PRIIATE BRANDS
Na"e is o+ned and controlled b a +#olesaler or retailer e&g& C#inta"aniLs) A%na Ba8ar)
Ba8ee&co"&
Ad'antages o! %ri'ate branding
T#e ad'antages and disad'antages 'ar de%ending to +#ic# "arket sector o$r talking to.
Advantages to the retailer
<& Red$ce %rod$cer do"ination in t#e "arket%lace
=& Create "ore de%endence on t#e retailer b t#e cons$"er
>& C$sto"er sales increase
?& An o%%ort$nit to di!!erentiate and %ro'ide 'ariet
3& C$sto"er loalt in a sit$ation +#ere o$ can a'oid co"%arisons
A& Positi'e i"age b$ilding
D& More !reedo" in o$r %ricing strateg
G& Positi'e control o'er stock kee%ing in'entor
@& Better bargaining %osition in a de%ressed econo"
<H& T#e %otential disad'antages !or t#e retailer co$ld be
<<& A negati'e backlas# on t#eir i"age
<=& Lack o! standardisation o! %ri'ate labels bet+een categories $%sets t#e c$sto"er
<>& 5inancial control concerns
<?& Lo+er t$rno'er) res$lting in lost total sales %er linear "etre
<3& E*cessi'e !oc$s on t#e %ri'ate label at t#e e*%ense o! ot#er %rod$cts
<A& T#e retailer co$ld be %ercei'ed as less %o+er!$l in t#e "arket%lace as t#e donLt %ro"ote
recognised brands
<D& Lo+ %rice e($ates to lo+ ($alit
<G& Lack o! !inancial s$%%ort !ro" s$%%liers
<@& I! t#e %rod$ct !ails) t#e cons$"er doesnLt !orgi'e o$
=H& T#e %rod$cer and s$%%lier also need to consider t#eir %ositioning& Man %rod$cers +ill be
%rod$cing a recognised brand leader and a %ri'ate label&
Advantages to the producer
<0 It kee%s o$t a co"%etitor !ro" $sing t#is o%%ort$nit
=0 T#e can get into t#e "arket%lace at a lo+er cost
>0 T#e #a'e a secondar %rod$ct t#at gi'es t#e co"%an a ne+ %ro!ile
?0 T#e can %rod$ce a co"%etitor %rod$ct to %osition against t#eir o+n "arket leader
30 It is an o%%ort$nit !or s"aller s$%%liers +#o donLt #a'e t#e %ro"otional ca%abilities to
enter a bigger "arket%lace
A0 T#e s$%%lier can get "ore s#el! s%ace in t#e store
D0 An o%%ort$nit to b$ild strategic %artners#i%s +it# selected retailers
G0 T#e disad'antages to t#e %rod$cer co$ld be
@0 T#e relations#i% +it# t#e retailer co$ld be t#reatened i! t#e %rod$ct doesnLt %er!or"
<H0 T#e #a'e created a co"%etitor to t#eir o+n brand
<<0 Ot#er s$%%liers "a introd$ce c#ea%er %ri'ate labels and dri'e "argins do+n+ards
<=0 4ig# in'entor costs and lo+ %ro!it "argins
B$t +#at abo$t t#e cons$"er) +#at co$ld t#e %ercei'e as t#e ad'antages and disad'antages&
C$sto"er) generall #esitate +#en a %ri'ate label enters t#e "arket%lace& T#e %re!er t#eir
!a'o$rite brand& T#eir "a2or s#i!t to %ri'ate labels occ$rs +#en t#e %ersonall !eel econo"ic
deterioration&
The main consumer advantages are
a0 A g$arantee o! t#e sa"e ($alit !or a serio$s %rice di!!erentiation
b0 More 'ariet +it#in t#e categor
c0 A tr$sted retail na"e e($als tr$st in t#e %rod$ct
d0 Prod$ct %ro'ides a need based on a +ant) +#ere %rod$cts +ere "issing +it#in t#e categor&
Eg et#nic !oods) diet !oods) s$gar !ree !oods and so on&
The disadvantage for a consumer could be
Lo+ ($alit %rod$ct 1 Cons$"ers "a #a'e a %re2$dice to lo+ %rice e($aling lo+ ($alit
Pre'io$s c$sto"er !ail$res co$ld e!!ect t#e +#ole %ri'ate label range in a store e&g& i! t#eir
cereals arenLt good) t#en t#eir 2a" +ill be t#e sa"e&